Congestion, port expansion and spatial competition for US container imports

The purpose of this paper is to analyze spatial competition, congestion and flows of container imports into the United States. An intermodal network flow model is developed and used to analyze congestion in the logistics system for container imports. The results indicate that congestion exists at most ports and its consequences are to raise costs at these nodes, and in some cases to divert traffic to other routes. Finally, if each of the ports expanded, the value of marginal capacity would converge to nil, and expansion would reduce congestion costs and waiting times.

► Network model of containers was used to analyze spatial competition and congestion. ► Congestion exists at most ports, increases costs and can divert flows. ► Dual values for port capacity were highest for ports of Los Angeles/Long Beach. ► Higher dual values also include ports of Savannah, Norfolk, and Seattle/Tacoma. ► Simultaneous expansion of ports reduced congestion costs and waiting time.