Notice of RetractionForwarder´s Shipping Capacity Option Procurement Policies with Option Trading and Empty Equipment Repositioning

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

We suppose there are two ocean forwarders in the market and they have to make decisions on ordering shipping capacity between port A and B from shipping company before a season starts via options. At the beginning of the selling season, forwarders can trade options with one another according to market demands. But there usually exits empty equipment repositioning problem because of the imbalance demands between port A and B. We focus on finding out how the possibility of such option trading and empty equipment repostioning between two independent ports affect each shipping agency´s optimal order and optimal profit. At first, we don´t consider the option trading between the two forwarders and then we consider the option trading. We make some conclusions at last: there exits a Nash equilibrium, the forwarders´ optimal profit with option trading is higher than without option trading, forwarders´ optimal orders with option trading are all increasing in option´s trading price and decreasing in option´s buying price.