Research Article


DOI :10.26650/JTL.2023.1168649   IUP :10.26650/JTL.2023.1168649    Full Text (PDF)

Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment

Ercan Kurtuluş

This study aimed to propose an optimization model for slot allocation and contractual pricing that considers spot and contractual shipments and empty container repositioning under a stochastic environment. In that respect, a two-stage stochastic non-linear programming modelwas proposed. The model considers contractual pricing that is overlooked by previous studies. Experimentation results revealed that decreasing market demand and spot market prices could cause serious profit loss while creating a high level of idle capacity.With the increasing market demand, capacity utilization reaches saturation at 90% requiring a capacity increase in the service. In the increasing market, slots allocated to empty containers get reduced while taking advantage of other options for empty container supply. Experimentation of symmetric uncertainty revealed that the range of uncertainty should be minimized since it creates a serious loss in profits and capacity utilization. Calculations also demonstrated that the applications of the stochastic modeling solutions would provide higher profit margins than the solutions of their deterministic equivalents. The model can easily be applied to the real-life situations of container liner services for managing and optimization of their service capacities as well as determining optimum contractual prices.


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APA

Kurtuluş, E. (2023). Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment. Journal of Transportation and Logistics, 8(1), 13-28. https://doi.org/10.26650/JTL.2023.1168649


AMA

Kurtuluş E. Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment. Journal of Transportation and Logistics. 2023;8(1):13-28. https://doi.org/10.26650/JTL.2023.1168649


ABNT

Kurtuluş, E. Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment. Journal of Transportation and Logistics, [Publisher Location], v. 8, n. 1, p. 13-28, 2023.


Chicago: Author-Date Style

Kurtuluş, Ercan,. 2023. “Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment.” Journal of Transportation and Logistics 8, no. 1: 13-28. https://doi.org/10.26650/JTL.2023.1168649


Chicago: Humanities Style

Kurtuluş, Ercan,. Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment.” Journal of Transportation and Logistics 8, no. 1 (Jul. 2024): 13-28. https://doi.org/10.26650/JTL.2023.1168649


Harvard: Australian Style

Kurtuluş, E 2023, 'Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment', Journal of Transportation and Logistics, vol. 8, no. 1, pp. 13-28, viewed 13 Jul. 2024, https://doi.org/10.26650/JTL.2023.1168649


Harvard: Author-Date Style

Kurtuluş, E. (2023) ‘Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment’, Journal of Transportation and Logistics, 8(1), pp. 13-28. https://doi.org/10.26650/JTL.2023.1168649 (13 Jul. 2024).


MLA

Kurtuluş, Ercan,. Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment.” Journal of Transportation and Logistics, vol. 8, no. 1, 2023, pp. 13-28. [Database Container], https://doi.org/10.26650/JTL.2023.1168649


Vancouver

Kurtuluş E. Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment. Journal of Transportation and Logistics [Internet]. 13 Jul. 2024 [cited 13 Jul. 2024];8(1):13-28. Available from: https://doi.org/10.26650/JTL.2023.1168649 doi: 10.26650/JTL.2023.1168649


ISNAD

Kurtuluş, Ercan. Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment”. Journal of Transportation and Logistics 8/1 (Jul. 2024): 13-28. https://doi.org/10.26650/JTL.2023.1168649



TIMELINE


Submitted30.08.2022
Accepted12.03.2023
Published Online10.08.2023

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