It is required to consider pricing and non-pricing factors and external economy in order to achieve the objects of physical distribution system in a port. Recently, among the three factors, much attention has been paid to non-pricing factor in the system. Although physical distribution service in a port(PDSP)has been frequently mentioned in documents and literature related to port and shipping studies, few study on it has not been systematically and scientifically made due to the following problems; $\circ$ there are not proper criteria to evaluate level and quality of PDSP and as a result it is difficult to set up a unified standard for doing so. $\circ$ algorithms to evaluate problems with complex and ambiguous attributes and multiple levels in PDSP are not available. This thesis aims to establish a paradigm to evaluate PDSP and to abvance existing decision making methods to deal with complex and ambiguous problems in PDSP. To tackle the first purpose, extensive and thorough literature survey was carried out on general physical distribution service, which is a corner stone to handle PDSp. In addition, through interviews and questionnaire to the expert, it have extracted 82 factors of physical distribution service in a port. They have been classified into 6 groups by KJ method and each group defined by the expert's advice as follows; a. Potentiality b. Exactness c. safety d. Speediness e. Convenience f. Linkage Prior to the service evaluation, many kinds of its attributes must be identified on the basis of rational decision owing to complexity and ambiguity inherent in PDSP. An analytical hierarchy process (AHP) is a method to evaluate them but it is not applicable to PDSP that have property of non-additivity and overlapped attributes. Therefore, probablility measure can not be used to evaluate PDSP but fuzzy measure is required. Hierarchical fuzzy integral method, which is merged AHP with fuzzy measure, is also not effective method to evaluate attributes because it has vary complicated way to calculate fuzzy measure identification coefficient of attributes. A new evaluation algorithm has been introduced to solve problems with multi-attribute and multi-level hierarchy, which is called hierarchy fuzzy process(HFP).Analysis on ambiguous aspects of PDSP under study which is not easy to be defined is prerequisite to evaluate it. HFP is different from algorithm existed in that it clarified the relationship between fuzzy measure and probability measure adopted in AHP and that it directly calculates the family of fuzzy measure from overlapping coefficient and probability measure to treat and evaluate ambiguous and complex aspects of PDSP. A new evaluation algorithm HFP was applied to evaluate level of physical distribution service in the biggest twenty container port in the world. The ranks of the ports are as follows; 1. Rotterdam Port, 2. Hamburg Port, 3. Singapore Port, 4. Seattle Port, 5. Yokohama Port, 6. Long beach Port, 7. Oakland Port, 8. Tokyo Port, 9. Hongkong Port, 10. Kobe Port, 11. Los Angeles Port, 12. New york Port, 13. Antwerp Port, 14. Felixstowe Port, 15. Bremerhaven Port, 16. Le'Havre Port, 17. Kaoshung Port, 18. Killung Port, 19. Bangkok Port, 20. Pusan Port