Ocean Carrier´s Free-Time Pricing Scheme for Inbound Container Storage

In the system of ocean transportation, there may exist an operational relationship without a contractual relationship between two parties, such as the relationship between the customer and the container terminal operator concerning inbound container storage. Customers store inbound containers in the container terminal and will pay the storage fee to the ocean carrier, without any contractual relationship with the terminal. After collecting the storage fee, the ocean carrier will then pay the inbound container storage fee to the container terminal operator. We study the ocean carrier´s pricing scheme for inbound container storage. We analyze how an ocean carrier should set an inbound container storage price to the customers, when facing the contract given by the container terminal operator. We propose an inbound container storage price model for the ocean carrier, and provide an optimal solution approach. Numerical studies are conducted to investigate the effect of the container terminal operator´s decision on the system outcome and sensitivity analysis is also provided.