Abstract

This study attempts to compare the port logistics cost of MCC cargo between Kaohsiung and Hong Kong. A total cost analysis model, which includes static analysis and dynamic analysis, was utilized in this research for port choice decision. The trade-off possibilities between terminal handling charge (THC), documentation fee, handling fee, storage fee, and consolidation costs in port were analyzed. In general, the total port logistics cost in Kaohsiung was cheaper than in Hong Kong based on the results of this research. However, the related inventory cost factors such as characteristics, value and number of cargo were needed to consider in their decisions of port choice. This study provides a general framework for the identification of port logistics cost from a shipper's perspective. The application of this framework can be a useful approach for port operators to evaluate their competitive positions and their relative strengths and weaknesses in the MCC cargo market.

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