Improving Container Imbalances – Den Hartog

The amount of containers imported into an area is rarely equal to those exported, resulting in surpluses or shortages of containers. Both situations are undesirable, with downtime of containers leading to depreciation and depot costs and shortages to lost revenue. Using the concept of law of demand, indicating that the quantity demanded of a commodity is inversely related to its price, Den Hartogh uses pricing to steer tank containers throughout the world. Lower prices are assumed to boost the volumes transported, and higher prices should make it less appealing and thus result in lower volumes. However, much uncertainty is involved in applying price adjustments, as one deals with human decision-makers and prices valid for longer time periods. To maximise their total profitability, Den Hartogh would like to know if and how to use the concept of price elasticity of demand within their pricing strategy. 

Contact Information

Auke Holle – a.holle@student.tue.nl

Zümbül Atan – z.atan@tue.nl

Sjoerd Groot – Den Hartogh