’. NARDO DE CASTILHO AND CARLOS F. DAGANZO ag schemes for temporary storage facilities (sheds) at ports~ amined in this paper. It is recognized that shippers respond cing changes by choofing storage times that maximize their:. Two types of strategies are considered. Nondiscriminatory. gies set the shed storage charges as a function of shipment we and time in storage alone (the same for all shippers); they~ t require much knowledge about the shippers" behavior and e found easily. Discriminatory strate~ es have the potential nprot’ed efficiency but require more information. In some aces, identified in thi:, report, nondiscriminatory strategies e just as efficient as their discriminatory counterparts. If the nd is steady and there is no alternative storage site, we find, hed price.~ should increase linearly with time, at a rate that~ reven~ overflows witlT. out causing undue hardship to users. demand is heavy., then the shed should be close to capacity of the time. There is no need for discrimination. Stochastic radons in demand conaplicate matters slightly because ehey make it worthwhile to increase shed prices at an increasing~’ith time and to dig. nSminate across shippers. If overflow¢ sent to a remotely located warehouse, there Ls more flex-; and the [) ricing strategies are almost as simple. Two probare examined in this paper: finding the optimal shed prices given warehouse price and finding both sets of prices jointly. rnputer spreadsheet can be used to find the best pricing aes.

~ peration of tempora~ storage facilities can be improved the adoption of rational pricing schemes. This introducsection examines current pricing practices for port sheds’ he body of the paper presents more refined policies that into account the user’s response to pricing changes. ansit sheds are buildings located within ports~ usually; side cargo berths--used for receiving, storing, and hartvarious types of in-transit cargo. They provide safe and enient storage while freight waits for such administrative alities as customs clearance and the processing of ship-&x-uments. Transit sheds also act as buffer zones beo n fast shiposhore flow and the slower shore-inland goods.~ ment. tthin the sheds, impo~: t cargo is broken down into small gnments for easy access when the overland shippers come idually to claim it. Conversely, export loads for a specific are consoI~ idated in the shed as they arrive, ensuring that can be retrieved in the order prescribed by the ship-~ ge plan. arehoases perform a somewhat different function. Rely located warehouses are subject to much less severe: it3’constraints than the sheds but require additional cargo ate of Transportation Studies, University of California. Berkeal/f. 94707. handling; this makes them attractive for longer term storage onlyo

Shed management directly affects overall port performance. When sheds are congested, they cannot perform their function as buffers for the flow of goods, and this hampers the efficient loading of vessels and increases their turnaround times. Shortages in storage space may also increase costs as a resutt of additional cargo handling, insurance premiums paid for deteriorated or damaged goods, and shippers’ failure to meet delivery dates. Finally, shed congestion may force shippets to use warehouses to store relatively fast-moving cargo, increasing traffic between port, warehouses, and land transportation terminals.