Container liner shipping network design with shipper’s dual preference

Abstract

This paper addresses the container liner shipping network design by explicitly taking into account shipper's inertia preference and non-inertial preference. Firstly, using the double-constrained gravity model and Newton calibration method to predict the future OD demand matrix which is considered as the input of the model, and then the liner shipping company profit maximization is taken as the objective function to optimize the ship shipping routes, ship type and ship speed. A hybrid genetic algorithm is designed to solve CLSNDP (Container Liner Shipping Network Design Problem). We validate the proposed model by employing a real liner shipping network on the trade shipping route between Asia and West Europe. Through sensitivity analysis, it is found that the service level and market share of container liner shipping company can be improved by considering the dual preference of shippers. In the non-inertia preference of shippers, when cost preference of shippers is greater than time preference, using large ships (over 7000TEU) can achieve greater profits and realize the scale economies of lager ships.