Revenue Management Models for the Sea Cargo Industry

Professor Anton Klewegt

School of Industrial and Systems Engineering

Georgia Institute of Technology

The Ocean Shipping Reform Act came into effect on May 1, 1999. The Act allows ocean carriers to enter into confidential contracts with shippers, charging prices that depend not only on the route and commodity, but also on the shipper and the time of year. Some pricing models that carriers can use during the planning phase preceding annual contract negotiations will be discussed. Models for operational decision making are also presented.