Price and Portcall Frequency Competition in Sea-and-Land transportation supply chain under Carbon Emission Reduction Target

Abstract

For carbon emission reduction by ports and shipping lines under sea-and-land transportation mode, to build a two-stage transportation supply chain model consisting of two competing ports and one shipping line The profit functions of ports and shipping lines were established to analyze the impact of parameters which are port emission reduction level, port unit emission reduction cost and the proportion of emission reduction cost shared by ports to shipping lines on port handling pricing, portcalls of shipping line and respective profits. The results show that the port emission reduction level and port unit emission reduction cost have a significant impact on decision variables and profits. Conversely, there is no significant impact on the proportion of emission reduction cost shared by ports to shipping lines. Within a certain range, port handling pricing increases as the port emission reduction level and port unit emission reduction cost increase. On the contrary, portcalls of shipping line decreases and individual profits decrease as parameters increase.