Improving empty container management using street-turn: A case study of the Colombian logistics network

Abstract

This case study addresses the problem of empty container repositioning (ECR) in the Colombian context at a regional scale. The research was motivated by the massive empty container congestion in 2022 in specific nodes of the logistics network. A Mixed methods approach is proposed in this research applying qualitative and quantitative methods that aim to clarify the causes of inefficiency in empty repositioning and to formulate improvement strategies. Street-turn has proven to be a strategy to increase the efficiency in the ECR system. A matching algorithm is developed to pair empty containers in inland destinations with export loads, to achieve a more efficient utilization of trucks in the network. Despite the significant container trade imbalance, the optimization model results confirm significant cost savings and reduction of empty trips of up to 50% for RFT between Colombia's two main ports and their principal hinterland regions. The research also identifies that the actors involved in the ECR system lack incentives to deepen their collaboration, which represents a significant barrier to the implementation of street-turn.