Ocean carrier canvassing strategies with uncertain demand and limited capacity

Zhuzhu Song, Wansheng Tang and Ruiqing Zhao

Transportation Research Part E: Logistics and Transportation Review, 2017, vol. 104, issue C, 189-210

Abstract: To study ocean carriers’ canvassing strategies, we consider a sea cargo service chain where liner companies canvass using two strategies involving freight forwarders and non-vessel-operating common carriers (NVOCCs). This paper uses a principal-agent model to describe the relationships among these partners. We show that high capacity can encourage the freight forwarder to exert effort, whereas low capacity can prevent the liner company from identifying the NVOCC’s private information. Using numerical examples, we investigate the effects of several parameters on strategy selection. Finally, liner companies have different strategy preferences for long-term development.

Keywords: Ocean carriage; Canvassing; Freight forwarder; Non-vessel-operating common carrier; Contract design (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tre.2017.06.008

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