CHAPTER 4
The Impact of Demand on Container Dwell Time
The case studies and shipment-level analysis of dwell time presented in chapter 3 show that long dwell times (which account for a large share of containers in terminals) are one of the key issues that need to be addressed (probably across the continent) and are related mostly to factors under the control of shippers. This confirms one of the initial hypotheses of this work, which is that the behaviors and strategies of shippers have an impact on dwell time in ports. The demand by importers for port dwell time beyond the time required to complete port operations and transactions seems to be related mainly to inventory management and the “business model� used (including the extent of informal practices). Due to the fact that demand from importers seems to explain a large part of long-dwell cargo, in this chapter we present theoretical foundations explaining current demand in Sub-Saharan Africa and then present some statistical analysis, based mainly on firm surveys.1
Some Theoretical Considerations The model examines cost minimization strategies and profit maximization strategies. Coupled with various market structures, it seeks to explain why behaviors that are perceived as irrational, such as leaving cargo in the port, are the best option for an importer. 47