The effect of foldable containers on the costs of container fleet management in liner shipping networks

Abstract

This article analyses the way in which foldable containers could potentially lower the costs of container fleet management in liner shipping networks. An integer programming model is used to obtain an optimal fleet mix of foldable and standard containers. It emerges that savings could be realised in the management costs of container fleets by applying a proper combination of the two. It also emerges that the economic viability of foldable containers depends on the level of trade imbalances and the exploitation costs of the containers.