Container storage tariff policy analysis using combining game theory and system dynamics approach

Abstract

This paper examines the storage tariff setting policy. The main purpose of this paper is to give consideration to optimal tariffs based on alternative strategies that reduce dwelling time. The main problem is the basic tariff for container storage in Container Yard is too cheap. This low-cost tariff of the storage container is used by customers so that containers are piled too long in Container Yard and cause dwelling time to be high. This has an impact on the congestion effect and the decline in utilities in the container terminal. This problem has complexity and suitability with System Dynamics. The linkage system between one cause and another cause will be modelled with System Dynamics so that the estimated output of container flows can be obtained. Furthermore, with the Non-Cooperative Game approach, a payoff matrix table will be obtained which contains the total profit obtained by the container terminal management and the total cost incurred by the customer. The main factors considered in the payoff matrix are the estimated container flows, the container storage tariff and the length of time accumulated in Container Yard. Finally, the optimal tariff from both sides was found (Nash Equilibrium), from the point of view of terminal container management and customer. This will help terminal management to make the right decision.