Analysis model of supply, demand and price of container shipping market

The shipping velocity and cell capicity are two key factors for container shipping. A production function for container shipping was presented. In the function, the fuel per slot and per day and slots number were chosen as variables. According to this production function, the unit total cost and marginal cost of supplier can be calculated, so the supplier can adjust the supply according to the change of market. The results show that at a wide range, marginal cost is relatively insensitive to demand, the transport price is relatively stable, but when the fleet is fully utilized, the marginal cost and transport price will increase quickly.