ABSTRACT
This chapter is concerned with the demand by shippers for services provided by the ports and with the supply of those services. It is the second part of an ongoing study intended to develop a full supply-and-demand model. Two major tasks are developed and discussed in this chapter. First, the chapter presents a theory and evidence as to the extent to which shippers perceive the services provided by different liner companies as good substitutes. Second, the chapter deals with the problem of estimating the value that shippers place on transit time. The route from Taiwan to the U.S. Wiest Coast is used as an empirical example. The supply-side model, which may result from these two tasks, is discussed and outlined, although not fully developed.
