We propose an option contract model for the leasing of containers. In an option contract, the shipping company commits to order a quantity of containers from the leasing company and has the right to modify its order at a later stage, according to its actual requirement. Under this scheme, the...

Purpose: This paper explores the effect of port's service time, particularly the mean and variability, on shippers' total landed costs to determine the competitive position of the port and derive recommendations for the strategic design of port services. Design/methodology/approach: The...