Slot Sharing in Ocean Liner Shipping Cooperation with Overbooking and Loyal Customers

Teng, L.; Zhang, Z. and Zhang, B., 2019. Slot sharing in ocean liner shipping cooperation with overbooking and loyal customers. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 411–415. Coconut Creek (Florida), ISSN 0749-0208.Ocean liner shipping companies operating the same shipping route to compete for market shares through price competition. Shipping company with higher price may have residual freight slots while lower price company has sold out all the slots. Different shipping lines tend to implement slot sharing agreement to balance the excessive slot with extra demand. Freight slot overbooking and brand loyalty factors are taken into consideration. Model without freight slot sharing is set as benchmark case, then capacity sharing with different transfer price strategies are modeled and analyzed. Revenue earned by freight slot sharing under two different strategies with different rage of various influence factors, concluding whether to implement capacity sharing and how to decide transfer price strategy in concrete conditions.