Investment strategy for blockchain technology in a shipping supply chain

Abstract

In the post-COVID-19 pandemic era, how to promote blockchain technology to improve the efficiency of port customs clearance and logistics transparency has become a hot research question in the shipping industry. In this paper, we investigate the value of blockchain-based vertical cooperation led by a port or a shipping company in a one-to-two shipping service competition model. A status quo scenario and two different investment scenarios led by different stakeholders are constructed, and equilibrium solutions of the Stackelberg game in three scenarios are proposed. Meanwhile, consumer surplus and social welfare under different cooperation frameworks are discussed. We find that i) investment in blockchain technology can significantly increase the profits of shipping supply chain participants. ii) From the point of view of profit, when the investment efficiency of the port and the shipping company satisfies a certain relationship, there is a balanced strategy for both parties to invest in blockchain technology. iii) The more intense the competition for the services of shipping companies, the lower the level of blockchain technology to improve the logistics capabilities of the shipping supply chain participants. iv) The port's investment in blockchain technology brings more consumer surplus and social welfare. The abovementioned findings can provide managerial insights for ports and shipping companies and present decision support for the government to formulate blockchain technology promotion policies.