An Estimation of the Average Waiting Cost of Vessels Calling Container Terminals in Northern Vietnam

Abstract

Several studies have been completed on the topic of container terminals in Northern Vietnam. Few of them, however, deal with competition in terms of costs related to vessel waiting time or cargo handling. This paper estimates the average waiting cost per TEU for all the container terminals in Northern Vietnam. After average waiting time was first estimated by applying queuing theory, uncertainty theory was applied to estimated vessel daily cost. A simulation was performed to create a series of data representing waiting cost per TEU in relation to the rate of volume handled/capacity of each terminal. Non-linear regression based on this series was used to present a function for the relationship between the average waiting cost of each terminal and the rate of volume handled /capacity.