Abstract
Motorways of the sea operated as RoPax services are natural competitors with only-road freight haulage transportation. Cost, time and quality perceived are the determinants that make transporters and shippers use one route or another.This research considers the role that a shipping company and its ship deployment and pricing strategy has in the equation, in a quasi-monopolistic state. It is checked whereas to what extent the pricing policy helps in the maximization of the modal shift or it is detrimental for it.A model of the ships and transporter costs is developed considering different business models for the transporter (accompanied versus unaccompanied cargo) followed with a discrete choice model that, once calibrated, allows testing the influence that variables like ship size, fuel price or commercial speed might play into the competitiveness of a shipping line. As a result, different pricing strategies for the shipping line are developed and the characteristics of the optimal shipping line for each of them is found, that maximizes profit of the shipping company. The paper concludes assessing a subsiding policy based in bonus per unit transported and its effectiveness in promoting modal shift and the likely effect it would have in the profitability of the shipping line.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
