Highlights We study a contracting problem between an ocean carrier and two freight forwarders. Asymmetric information and empty container repositioning are considered. We develop a two-stage game model to capture the ocean transportation between two ports. Forwarders’ optimal strategies and the carrier’s optimal contracts are derived.

    Abstract In the paper, we examine a contracting problem under asymmetric information in a two-port system involving two freight forwarders and one carrier providing ocean container transportation services between the two ports. We develop a two-stage game model to capture the unique characteristics of the ocean freight transportation with empty container repositioning. We first analyze the forwarders’ optimal strategies, and then characterize the optimal contract for the carrier under symmetric and asymmetric information. Through computational studies, we investigate the impacts of empty container repositioning cost and information asymmetry on the system performances. The numerical experiments reveal that (1) if the market demand is likely to be high, the ocean carrier is more eager to procure private information so as to prevent profit loss from information asymmetry; (2) the degree of information asymmetry has different impacts on the empty container repositioning cost in different transportation directions.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Contracting in ocean transportation with empty container repositioning under asymmetric information


    Contributors:
    Yang, Ruina (author) / Yu, Mingzhu (author) / Lee, Chung-Yee (author) / Du, Yuquan (author)


    Publication date :

    2020-11-15




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




    Empty container repositioning in liner shipping

    Song, Dong-Ping | Online Contents | 2009


    Empty container repositioning in liner shipping1

    Song, Dong-Ping / Carter, Jonathan | Taylor & Francis Verlag | 2009


    Routing feeder container ships with empty container repositioning

    Maras, V. / Konings, R. / Radmilovic, Z. et al. | TIBKAT | 2012


    The container shipping network design problem with empty container repositioning

    Shintani, Koichi / Imai, Akio / Nishimura, Etsuko et al. | Elsevier | 2005