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Port pricing : principles, structure and models

Meersman, Hilde; Strandenes, Siri Pettersen; Van de Voorde, Eddy
Working paper
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URI
http://hdl.handle.net/11250/194585
Date
2014-04
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  • Discussion papers (SAM) [586]
Abstract
Price level and price transparency are input to shippers’ choice of supply chain and

transport mode. In this paper, we analyse current port pricing structures in the light of

the pricing literature and consider opportunities for improvement. We present a

detailed overview of pricing criteria, who sets prices and who ultimately foots the bill

for port-of-call charges, cargo-handling fees and congestion charges. Current port

pricing practice is based on a rather linear structure and fails to incorporate modern

pricing tools such as price differentiation or revenue management. Consequently,

ports apply neither profit maximising pricing nor pricing designed to exploit available

capacity more efficiently.
Publisher
Norwegian School of Economics. Department of Economics
Series
Discussion paper;14/2014

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