Approach to an Equivalent Freight-Based Sustainable Joint-Quotation Strategy for Shipping Blockchain Alliance

Abstract

To improve the sustainability of the shipping industry, a practice of establishing a new type of shipping alliance based on blockchain has been implemented. In this practice, the following question emerges: How will shipping lines achieve sustainable profit improvement? This paper focuses on the freight decision-making problem by constructing a multi-round joint-quotation strategy. This paper also demonstrates the potential impact of a joint quotation strategy on the blockchain-based open freight market from a theoretical perspective. The numerical experiment results show that, compared with the initial state, the joint quotation strategy can help to stabilize shipping demands and reduce the fluctuation in overall demands. In this strategy, the freight level needs to be high to maximize profits. However, part of the demands will be sacrificed as a result. Moreover, the optimal equilibrium solution under the joint quotation strategy is relatively vulnerable to changes in the competitive relationship among the members of an alliance. In addition, the joint quotation may also be resolutely resisted by the shipper due to monopoly risk, resulting in a major risk of a sharp reduction in demand. The findings in this paper offer a decision-making reference for the sustainable development of the shipping industry.