Understanding Port Choice Behavior—A Network Perspective

Gulf Coast Port Selection Using Multiple-Objective Decision Analysis, 2019

In today's competitive global markets, ports play a vital role in global supply chain operations. A port selection model was developed to demonstrate the potential to aid shipping line companies with decisions to select the best ports in the U.S. Gulf Coast. Because port selection is complex, is dynamic, and includes multiple objectives, a multipleobjective decision analysis quantified the value of the various ports using industry data and an industry expert's knowledge. In addition, a corresponding cost model was developed using available cost data for each port. Monte Carlo simulation analyzed the uncertainties in the value and cost models. For the demonstration model scenario assumptions, the results show that the Houston port would be the best alternative for shipping lines in the Gulf Coast. The value model also identified opportunities for improvement for each port compared with the best West Coast port. The demonstration models show that port data exist to support the development of a multiple-objective decision analysis model and a cost model that can provide useful insights to port selection decision makers. Furthermore, these models can be easily tailored to support port selection in other regions by tailoring the objectives and measures to the decision-maker objectives.

2006

1 U n i v e r s i t é d u Q u é b e c à R i m o u s k i , Q u é b e c , C a n a d a . E -m a i l : e m m a n u e l . g u y @ u q a r. q c . c a ; b r u n o _ u r l i @ u q a r. q c . c a In this paper, our goal is to assess whether the accepted rationale of port selection by shipping lines -based on the combined importance of quality of infrastructures, cost, service and geographical location -is useful to account for the selection behaviour observed in the Northeast of North America, particularly the recent arrival of new global carriers in Montreal. We use a multicriteria approach in combination with scenarios where the relative importance given to selection criteria and the performance of ports are both varied across a wide range. This allows us to assess how port preference is affected by changes in criteria weight (expressing selection rationale) and by changes in evaluation (expressing relative port performance). With criteria weights set to reflect the common selection rationale, our findings suggests that shipping lines should call at New York and bypass Montreal. For Montreal to become the preferred choice, extensive hinterland coverage must be the top criterion for carriers and simultaneously the port must perform better in terms of cost and/or service. We conclude by discussing the implications for the hub-andspoke paradigm of network evolution.

International Journal of Shipping and Transport Logistics

The aim of this study is to analyse how the degree of use of port facilities influences the port choice process. In order to achieve that goal, a multinomial logit model was firstly proposed and then applied to a case study. In this particular case, the relationship between the container traffic and the availability of cranes was considered for the main Spanish peninsular container ports. From the obtained results, it can be concluded that the port throughput contributes positively to attract traffic because of the economies of agglomeration and the scale and network effects achieved; however, there is a threshold of traffic beyond which the attractiveness of ports decreases. The proposed methodological approach also allows to obtain the functional form of the analysed relationship without establishing it a priori.

Abstract Seaports are considered as gateways to international trade by all maritime nations. The modern and equipped seaports in this era are craving to attract more ships and benefit from greater throughput. Even in developing maritime countries, to maximise the seaport’s revenue and at the same time making the port more appealing to both shipowners and shippers, these countries are obliged to develop their seaports and improve the quality of their services. This, in turn, will enhance the efficiency and productivity of the port through serving the country’s and neighbouring landlocked nations’ (if any) shipping demands. This also has given rise to a reasonable and sometimes cruel competition among ports. The creation of competitive environment among seaports (particularly, among homogenous port providing similar services) has made the phenomenon of ‘port selection’ a complicated decision-making task. Port selection decision is a process that requires consideration of many importan...

Management Decision, 2018

Purpose Port performance and port choice have been treated as separate streams of research. This hampers the efforts of ports to anticipate on and respond to possible future changes in port choice by shippers, freight forwarders and carriers. The purpose of this paper is to develop and demonstrate a port performance measurement methodology, extended from the perspective of port choice, which includes hinterland performance and a weighting of attributes from a port choice perspective. Design/methodology/approach A review of literature is used to extend the scope of port performance indicators. Multi-criteria decision analysis is used to operationalize the context of port choice, presenting a weighted approach using the Best-Worst Method (BWM). An empirical model is built based on an extensive port stakeholder survey. Findings Transport costs and times along the transport chain are the dominant factors for port competitiveness. Satisfaction, reputation and flexibility criteria are the...

2003

r s i t y o f Ts u k u b a , Ts u k u b a , J a p a n. E-m a i l : p i y u s h t i w a r i @ h o t m a i l. c o m Transportation decisions of shippers are crucial for policy formulation in ports and shipping lines. Shippers' port selection, for export or import cargo, depends on the location of the shipper; preferences for shipping line services; and facilities offered by ports. In this paper, we model the port choice behaviour of shippers, in China, using a shipper level database obtained from a survey of shippers of containerised cargo in China in 1998. We use a discrete choice model where each shipper faces a choice of 14 alternatives, based on shipping line and port combinations, and makes his decision on the basis of various shipper and port characteristics. The results indicate that the distance of the shipper from port, distance to destination (in case of exports), distance from origin (in case of imports), port congestion, and shipping line's fleet size play an important role. We estimate elasticities of changes in these variables and their impact on the market share of shipping line-port combinations.

2014

Container ports and terminals became essential comp onents of the modern economy. Containerization play s an indispensable role in reducing transport cost of in ternational trade. Hence, shipyards have started to produce new designs, which are technically better adapted to the new mar ket conditions, more economical and above all extre mely competitive compared to the existing ships. On the other hand, ports play important role in accommodating new desi gned ships with larger volumes of cargo. Ports competition takes di fferent forms, including service quality and port e lasticity. Quality of facilities can achieve faster ship turn-around time , less unit cost, and provide added value activitie s. This helps in enhancing port competitiveness. Ports have traditio nally evaluated their performance by comparing thei r actual and optimum throughputs (measured in tonnage or number of containers handled). If a port’s actual throughp ut approaches (departs from) its optimum throughput over...

International Journal of Shipping and Transport Logistics, 2013

Port selection is of relevance to shippers in achieving transport cost savings and efficiency in their operation. On the other hand, providers of port infrastructure and services are interested in finding out critical port choice factors as rational basis for formulating sustainable port reform policy. This study investigates empirically port choice criteria of Nigerian shippers who engage liner services available at the nation's coastal ports. Questionnaires were distributed to collect data on observed port choice (revealed preference data) made by shippers under study. A discrete choice model was applied to estimate the shippers' port utility function. Results show that crane efficiency, i.e., cargo handling speed at the port, the level and functionality of port facilities, shipment size, ship-calls' frequency and shipper warehouse distance from port are the most important factors which shippers of non-oil sea-freight consider when they choose ports for making shipments. Policy implications of the estimated utility function are discussed.

2006

b o m a @ y a h o o. c o m ; 2 D e p a r t m e n t o f Tr a n s p o r t M a n a g e m e n t Te c h n o l o g y, Fe d e r a l U n i v e r s i t y o f Te c h n o l o g y, P. M. B. 1 5 2 6 , O w e r r i , I m o S t a t e , N i g e r i a , We s t A f r i c a. E-m a i l : o g o u g b o m a 2 3 @ y a h o o. c o m a n d E-m a i l : i c o g w u d e @ y a h o o. c o m This study presents the findings of a survey to determine the service characteristics that shippers consider important when selecting a port and the way these characteristics are prioritised according to their importance. Seven criteria for the port selection decision and four ports were identified, and the decision problem was structured into a three-level hierarchy using the Analytic Hierarchy Process. The findings suggest that shippers place high emphasis on efficiency, frequency of ship visits and adequate infrastructure, while quick response to port users' needs was insignificant to them. Results from the study are of interest to Port managers because they provide essential information on the key factors that come into the decision process of port users, thus, identifying the strengths and weaknesses of the ports.

Journal of Transportation Management, 2011

The accelerated globalization of logistics activities over the last several decades has spurred a rapid expansion of port facilities all cross the world. However, the recent slowdown of international trade, coupled with a global financial crisis, has created an on-going glut of international port facilities throughout the world. Although the abundance of port facilities provides more transshipment options for carriers and shippers, it makes the port selection decision more complex and difficult. To cope with this new set of challenges, this paper proposes a hybrid data envelopment analysis (DEA)/ analytic hierarchy process (AHP) model that is designed to identify factors specifically influencing transshipment port selection, evaluates the extent of influence of those factors on a transshipment port selection decision, and then determines the most critical ones among various factors. To illustrate the usefulness of the proposed hybrid DEA/AHP model, major container hub ports in Far-E...