On the Competition between the Ports of Shanghai and Busan for Internationally Transshipped Containers

摘要

Based on the assumption that container cargoes bound for Western Europe and North America from Chinese Northeastern seaports need transshipping at either Shanghai Port or Busan Port, this paper begins with presenting some differences in the voyage distances between Shanghai and Busan connecting the mainland origins and the oversea destinations, and analyzes the effects of the price changes in port service at Shanghai and Busan on the volume of container transshipment. With an application of a game model, some further effects on the ports' benefits concerned are estimated and the conclusion has been drawn that it is a dominant strategy for both Shanghai and Busan to keep the current port service price unchanged.