Do Foldable Containers Enhance Efficient Empty Container Repositioning under Demand Fluctuation?—Case of the Pacific Region

Abstract

This study considers the empty container repositioning problem of shipping companies that use standard and 3-in-1 foldable containers with more advanced designs. A mathematical model is developed to compare the total management costs of container repositioning of various patterns in different cargo shipping demand scenarios. Numerous scenario analyses and simulations of empty container repositioning were conducted, focusing on a liner shipping service in the Pacific Islands where empty containers are likely to be present because of the imbalance between inbound and outbound flows of containers, including static analysis and consecutive analysis with demand fluctuation in different approaches. Results show that with the introduction of foldable containers, depending on the growth rate of container cargo shipping demand, the total management costs of empty container repositioning can be reduced. However, introducing a large number of foldable containers may increase the total management costs of container repositioning. Moreover, the cost reduction effect of adding another containership increases in cases where future cargo shipping demand increases substantially. Furthermore, the introduction of foldable containers not only effectively reduces the management costs of empty containers, but also makes costs more stable and predictable.