Optimizing empty container logistics based on a collaborative network approach

Abstract

Current global production patterns have led to the emergence of systemic, chronic and structural trade imbalances between major trading regions. Increasing transportation led to a growth in the amount of full containers and subsequently to preceding and ensuing empty container movements. Empty container management is substantial to overcome the complex problem of empty container repositioning, storage and ownership conditions. Because of growing cost pressures and the continuous search for efficiency improvements, collaborative design approaches in the empty container management are becoming increasingly important. One approach is the joint use of containers by several container carriers and container leasing companies. Therefore, the aim of this article is to introduce a mathematical optimization approach, which optimizes container logistics networks and quantifies potential savings considering the establishment and operation of container pooling. It will be shown that positive economic effects can be generated by the implementation of container pooling, compared with non-cooperative behavior of container owners and leasing companies. In addition, port operators will be able to handle rising container volumes without major capacity adjustments. Further studies need to focus on practical implications of container pooling models and empirical evidence of the mathematical approach.