Title: Dynamic pricing research for container terminal handling charge in competitive game environment

Authors: Yi Ding; Jia Liu; Kaimin Chen; Youxuan Pan

Addresses: Institute of Logistics Science and Engineering, Shanghai Maritime University, Shanghai 201306, China ' Institute of Logistics Science and Engineering, Shanghai Maritime University, Shanghai 201306, China ' School of Business, Shantou University, Shantou 515800, China ' Institute of Logistics Science and Engineering, Shanghai Maritime University, Shanghai 201306, China

Abstract: The container terminal handling charge (THC) is a critical source of revenue for terminals. The recent downturn in the maritime market, coupled with escalating price wars among terminals, has heightened the urgency to establish an appropriate THC pricing strategy. This paper investigates the phenomenon of low-price competition in container handling services and proposes a demand information sharing scheme. We present a nonlinear game model to clarify the interactions between price, demand, cost, and competition. To address this model, we apply the Bayesian learning method to forecast future demand via the proposed scheme, while a heuristic algorithm identifies the Nash equilibrium. This study aims to introduce a novel THC pricing approach that mitigates vicious competition through a demand information sharing scheme, enabling dynamic THC pricing for increased profitability. Additionally, we compare the effect of demand information sharing scheme in duopolistic competition and multi-terminals competition, emphasising the importance of widespread cooperation.

Keywords: dynamic pricing; demand information sharing; terminal handling charge; THC; Bayesian learning; competitive game.

DOI: 10.1504/IJSTL.2025.148848

International Journal of Shipping and Transport Logistics, 2025 Vol.21 No.3, pp.407 - 434

Received: 16 Mar 2024
Accepted: 28 Mar 2025
Published online: 29 Sep 2025 *

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