Pricing Strategy of Maritime Transportation Cost Based on Revenue Management and Empty Container Theory

Abstract

Xiao, F. and Liu, X., 2019. Pricing strategy of maritime transportation cost based on revenue management and empty container theory. In: Li, L.; Wan, X., and Huang, X. (eds.), Recent Developments in Practices and Research on Coastal Regions: Transportation, Environment and Economy. Journal of Coastal Research, Special Issue No. 98, pp. 121–124. Coconut Creek (Florida), ISSN 0749-0208.Maritime transport has become one of the most important modes transportation for foreign trade, but the unreasonable freight rate has led to the vicious competition among maritime transport companies. This paper aims to help the maritime transport company maximize profits. For this, revenue management and empty container theory were applied to explore the cost pricing strategy of maritime transport process, and a transportation pricing model considering empty container theory was established using MATLAB. The research results show that the main purpose of maritime transport companies is to maximize benefits and satisfaction of owners. The pricing of transportation costs for maritime transport companies involves the formation and supervision of pricing strategies. Transportation costs, subjective value of owners, arrival rate of owners, and changes of the initial container slot allocation all will affect the optimal pricing of maritime transport cost. The research findings provide a theoretical basis for studying the pricing of marine transportation costs.