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Cost allocation in a container shipping alliance considering economies of scale: a CKYH alliance case study

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This paper proposes and investigates three schemes for cost allocation in a container shipping alliance considering the economies of scale. In order to deal with the complicated interactions between carriers… Click to show full abstract

This paper proposes and investigates three schemes for cost allocation in a container shipping alliance considering the economies of scale. In order to deal with the complicated interactions between carriers and the impact of the economies of scale on shipping cost, a duality-based, an inverse optimisation-based and a Shapley value-based scheme are discussed and compared to the conventional demand-based and turnover-based schemes. The theoretical models are applied in a case study involving the Asia-Europe container shipping lines of the CKYH alliance. The application results and the sensitivity analysis illustrate the practicability of our schemes.

Keywords: cost allocation; economies scale; alliance; allocation container; container shipping

Journal Title: International Journal of Shipping and Transport Logistics
Year Published: 2017

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