Factors Affecting the Cancellation of Container Slot Booking a Shipping Line

Abstract

The study intends to examine the factors influencing booking cancellations. The analysis applies Binary Logistic Regression technique on the booking data of the case company experienced in 2019 over the route Thailand to China and USA. The analysis results reveal that the factors significantly influence booking cancellation include: 1) Bookings made during the first 1-10 days have lower cancellation rate due to special offers the freight forwarder giving up to their clients who place a booking in this period  2) Booking with China ports as Port of discharge have more likelihood to be canceled because they involve shorter time travel rendering them easier to cancel the delivery plan, 3) Bookings with 40ft reefer containers have lower cancellation rate because they are usually in short supply, 4) Bookings that made far in advance of the actual sailing date are more likely to be canceled, and 5) Shipments subject to higher freight rates are more likely to be canceled because clients tend to look cheaper alternatives.