Developing bi-level equilibrium models for the global container transportation network from the perspectives of multiple stakeholders

Abstract

Given the importance of containerisation to creating successful global supply chain operations, this paper proposes an equilibrium model that can not only minimise the total container transportation cost for a shipper, but also maximise the total profit accrued from container transportation services offered by a carrier. The proposed model combines game theory with a Genetic Algorithm (GA) to promote a compromise between the conflicting interests of the carrier and the shipper, while optimally balancing the shipper's desire to contain cost against the carrier's desire to increase profit. To verify the usefulness of the proposed model, we applied it to the container transportation network design problem from the perspectives of multiple stakeholders including Chinese container port authorities.