Competition Model of Container Road Transportation Market

Considering two major factors of truck transportation service and freight forwarding quote to the sensitive shipper, this study proposes a market competition model of container road transportation. The model involves more competitive truck operators and one freight forwarder and solves the game equilibrium through backward induction. The results indicate that with application of value-added service, truck operators receive lower profit due to burden cost of the upgrading service. However, the demand satisfaction of truck transportation market significantly increased, and the overall profit of truck operators and freight forwarder witnessed an increasing trend. Therefore, to motivate value-added service of truck operator, the reasonable benefit distribution mechanism needs to be established between truck operators and freight forwarder, which provides benefits for the healthy development of truck operator and container transportation chain.