Choosing a port: An analysis of containerized imports into the US

Using a unique data set of individual shipments, port characteristics, and actual freight charges, we examined potential factors within management controls that affect the attractiveness of a port for containerized shipments. We hypothesized that the importance placed on each factor varies by the size of the shipper. We find support for our hypotheses that large shippers emphasize the factors affecting speed of delivery more than the freight charges compared to small shippers. These findings have managerial implications because investments in port development would pay off depending on the fit between the type of investment and the customers’ needs.

► We examined factors that affect the choice of a port for containerized shipments. ► We look at the moderating impact of the size of the shipper on choice characteristics. ► Devolution of ports generally positively affects the choice of a port. ► Large shippers put more weight on delivery speed factors vis-à-vis small shippers. ► Small shippers put more weight on freight charges they pay vis-à-vis large shippers.