Pricing and quality setting strategy in maritime transportation: Considering empty repositioning and demand uncertainty

Imbalanced international trade and the limited number of containers in maritime transportation industry have resulted considerable costs decreased profits for shipping firms. To manage these issues, this study utilizes price management techniques to control empty container repositioning a system. In system, there is firm providing services between two ports both directions. Each direction has its own uncertain potential demand that can be affected by prices quality set firm. We develop mathematical formulation service order maximize firm's profit. Due uncertainty, we analyze different states realization discuss optimal policies each state. These are then analyzed robust pricing setting strategy under uncertainty. addition, easily implement developed strategy, propose an algorithm convert obtained results into practical procedure implemented Lastly, investigate impact several factors on profit demonstrate not only but also imposed regret depend internal external such as demands, sensitivity, loaded movement cost, uncertainty parameter.