Improving the resilience of maritime supply chains: The integration of ports and inland transporters in duopoly markets

Abstract

The adverse impact of the outbreak of COVID-19 has reduced ports’ operational efficiency. In addition, ports and inland logistics providers are generally independent of each other and difficult to work together, which leads to time loss. Thus, as the core player, ports can integrate with inland logistics providers to improve the efficiency and resilience of maritime supply chains. This study examines the strategic options of two competing maritime supply chains consisting of ports and inland logistics providers. We investigate the impact of cooperation between ports and inland logistics providers and government regulation on the maritime supply chain by comparing members’ optimal pricing and overall social welfare under centralized, decentralized, and hybrid scenarios. Results indicate that the hybrid scenario is an equilibrium strategy for maritime supply chain, although this strategy is not optimal for governments seeking to improve supply chain resilience and maximize social welfare. Furthermore, observations show that through government economic intervention, both seaborne supplies can be incentivized to adopt an integrated strategy, and business and society can achieve a win–win situation.

Graphical abstract

Keywords

resilience / Hotelling model / social welfare / maritime supply chain / game theory

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