Container Liner Shipping Research Articles

Integrated Optimization of Port Rotation Direction and Fleet Deployment for Container Liner Shipping Routes

This paper provides an integrated planning methodology for the optimization of port rotation direction and fleet deployment for container liner shipping routes with consideration of demand uncertainty. We first consider a special case that demand is deterministic. A multicommodity flow network model is developed via minimizing the total network-wide cost. Its decisions are the selection of port rotation direction and fleet deployment and container routings in the shipping network. Afterward, we address the generic case that uncertain demand is considered, which is represented by potentially realizable demand scenarios. We develop a minimax regret model to procure the least maximum regret across all the demand scenarios. The proposed models are applied to an Asia-Europe-Oceania liner shipping network with 46 ports and 12 ship routes. Results could provide the liner company with a comprehensive decision tool to simultaneously determine port rotation direction and fleet deployment when tackling uncertain demand.

Bilateral slot exchange and co-allocation for liner alliance carriers of containerized maritime logistics

With the maritime logistics technology evolving toward standardization and modernization, container liner shipping has become the most valued mode of transportation in the shipping industry. Liner carriers share resources in the alliance-based mode to achieve synergy. Specifically, slot exchange is a key and effective alliance-based means to enhance competitiveness and operational effectiveness. To this end, this article looks at how to optimize slot capacity allocation within a container liner alliance under the slot exchange mode in the containerized maritime logistics industry. First, we explained the slot exchange concept and its impact on the shipping business. Second, we identified the key factors that may affect slot allocation decisions. Then we established an optimal multi-objective slot exchange allocation model for liner alliances and solved the problem with the NSGA-II algorithm. Finally, taking the cooperation of two carriers on two trans-Pacific routes as an example, we used the model to establish the optimal slot exchange strategy for each carrier on the shipping alliance's routes to verify the practical application value of this model. The results showed that the model proposed in this article can help develop an optimal slot allocation plan, providing a scientific and effective tool for container liner alliances to formulate slot exchange and allocation strategies.

Port competitiveness: Do container terminal operators and liner shipping companies see eye to eye?

Most of the literature on port choice has focused mostly on the views of carriers (and indirectly of cargo owners). We venture here to discover whether the choice criteria used by carriers are in line with what the ports themselves consider as important for their competitiveness. We undertake a 20-year-long literature search in peer-reviewed journals to identify the competitiveness criteria of both carriers and terminal operators. To that end, survey methods and (Fuzzy) Analytic Hierarchy Process (FAHP) are employed. Our findings establish that the factors port operators consider important for the competitiveness of their port are not necessarily of equal importance for shipping companies when selecting a port. This is our main contribution to the academic literature. For port operators, the most important criterion for competitiveness is port location, followed by service level, port tariffs, and port facilities. In contrast, the most important criterion for carriers is (port) operational efficiency. The least important criteria for both groups of actors are the institutional framework of the port and its ownership status, respectively. Opposite to earlier research, our innovation here is in confronting ports and carriers with each other’s priorities. In competitive markets, such knowledge ought to influence decisions and the added value of this research is in the benefits of a ‘better mutual understanding’: when demand (carriers) and supply (ports) understand each other better, the result is a more pareto-efficient economic system, not only for the two players but for the greater society by and large.

Container shipping line port choice patterns in East Asia the effects of port affiliation and spatial dependence

In the container shipping sector, many shipping lines are investing in ports and terminals. Although the literature generally agrees that shipping lines can benefit financially from such vertical investments, there are conflicting views on the impacts on different stakeholders, with limited empirical evidence nor solid data analysis. In addition to being an important managerial decision for shipping lines and their affiliated ports, this may become a policy issue because public infrastructure is expected to provide equal and fair access to all consumers. This study aims to enhance the understanding of the implications of shipping line-port integration by investigating its effects on the port call choices of shipping lines at the route level. Using data from East Asia, our correlation matrix of port-calls reveals significant spatial dependence in the port call patterns of shipping lines, and complex relationships between ports in a region, which can be substitutable, complementary or no significant relationship. Our spatial probit model estimation further suggests that carriers, whether based in East Asia or elsewhere, prefer to call at affiliated ports that they own either directly or indirectly via their alliance partners. Carriers tend to avoid calling at some ports with significantly overlapping roles on the same route but are likely to call at multiple ports that are less than 1200 km apart. Our findings also indicate that shipping lines prefer ports with adequate infrastructure and that the number of ports called on one route is constrained by the total transport time. We recommend that port authorities and local governments evaluate vertical integration on a case-by-case basis, because vertical integration could help secure some port throughput but nevertheless limit competition. Further studies on the shipping line-port integration’s impacts on port handling efficiency and service quality would help policy formation on vertical integration in the maritime sector.

Evaluating recovery strategies for the disruptions in liner shipping networks: a resilience approach

PurposeSince the start of the current century, the world at large has experienced uncertainties as a result of climate change, terrorism threats and increasing economic upheaval. These uncertainties create non-classical risks for global seaborne container trade and liner shipping networks (LSNs). The purpose of this paper is to establish a novel risk-based resilience framework to measure the effectiveness of different recovery strategies for the disruptions in LSNs in a quantitative manner.Design/methodology/approachBased on a resilience loss triangle model, an indicator of resilience–cost ratio is designed to measure the performance of LSNs during recovery. Four recovery strategies are proposed to test the rationality and feasibility of the developed indicator in aiding decision-making of LSNs from a resilience perspective.FindingsThe analysis results reveal that the superiorities of different recovery strategies vary depending on both the structures of LSNs and the specific requirements during recovery. Moreover, optimizing the sequence of ports being recovered will improve the overall recovery efficiency of the investigated LSN.Research limitations/implicationsAs an exploratory research trying to enrich the risk-based resilience evaluation of LSNs from a complex network perspective, only two attributes (e.g. port scare and economy) are considered at the current stage when estimating the time needed to fully recover the whole LSN. In future research, more attributes from the industry may be identified and incorporated into the proposed model to further extend its ability and application scopes.Practical implicationsThe findings will help to improve managerial understandings of recovery strategies to build more resilient LSNs. The proposed model has the capability to be tailored to tackle different types of risks in addition to the storm disaster condition.Originality/valueThe risk-based resilience framework and the resilience–cost ratio indicator are newly developed in this research. They can consider LSNs' structural resilience and the total costs that a recovery strategy needs to restore the whole system simultaneously.

Identifying Important Ports in Container Liner Shipping Network:A Perspective from Spreading Dynamic Theory

Identifying Important Ports in Container Liner Shipping Network:A Perspective from Spreading Dynamic Theory

A Review of Environmentally Sustainable Container LinerShipping Management

A Review of Environmentally Sustainable Container LinerShipping Management

Comparing the minimal costs of Arctic container shipping between China and Europe: A network schemes perspective

To optimize the container liner shipping scheme between China and Europe as the possibility of Arctic shipping opens up, the operational behaviors of liner shipping companies are considered and potential shipping scheme are proposed. Fulfilling known port container OD flows, a model is built to optimize the liner shipping network corresponding to each proposed shipping scheme, where a single fleet or two fleets pass the Arctic or the Suez Canal. The profits of the liner company in the next 20 years under different schemes are compared. It is found that it is uneconomic to sail the Arctic for liner shipping between China and Europe and the Suez Canal Route is a better choice at present and far into the future.

A two-stage stochastic nonlinear integer-programming model for slot allocation of a liner container shipping service

In this study, we propose a container slot allocation problem for a liner shipping service. A liner containership provides a regular shipping service with a fixed itinerary and schedule. In practice, the liner containership may not be fully loaded, which results in a loss of revenue. We therefore segment shippers into two classes: contract shippers and spot shippers. A contract shipper has a contract with the shipping company and negotiates a fixed minimum quantity, so that the shipping company can secure a steady revenue. The remaining containership slots are open to spot shippers, allowing the shipping company to obtain ad hoc revenue. The container slot allocation problem is investigated in this study using a two-stage stochastic mixed-integer nonlinear programming model. We use the sample average approximation based on Lagrangian relaxation and dual decomposition techniques to effectively solve the model. Finally, we conduct a case study to evaluate the applicability and effectiveness of the proposed model and the solution algorithm.

Deploying, scheduling, and sequencing heterogeneous vessels in a liner container shipping route

Previous studies on liner container shipping operations usually assume identical container ships deployed in the same shipping route. However, in real operations, this assumption does not always hold considering the distinct capacities, ages, fuel efficiencies, cost structures, etc. of these ships. These distinctions significantly influence the number of containers transported, the bunker fuel consumption, and the operating cost of a shipping route. In this regard, this paper considers the joint ship deployment, sequencing, and scheduling problem for a fleet of heterogeneous vessels in a shipping route. A mixed integer programming model is developed to select the optimal ships from a set of candidate ships together with their sequences, schedules, and sailing speeds in the shipping route to minimize the total cost. A tailored solution algorithm is subsequently developed to calculate the global optimal solution. Numerical experiments demonstrate that this algorithm significantly outperforms the classical branch-and-cut algorithm in solving the model. In addition, by applying our model in a real-case shipping route, we find that the model is able to reduce the total cost by 5% compared with that considering homogeneous vessels. Finally, several managerial insights are obtained to guide the operations of a liner shipping route.

Optimizing freight rate of spot market containers with uncertainties in shipping demand and available ship capacity

Liner container shipping company satisfies container shipping demand from both long-term contracts and spot market. Different from the shipping demand from long-term contracts whose freight rate is usually negotiated between the shipping company and the customer, the freight rate of the spot demand is usually determined by the shipping company itself. This paper thus focuses on how to determine the optimal freight rate of spot containers for each origin and destination (OD) pairs of a shipping network to maximize the total profit. To further reflect industry practice, two types of uncertainties are considered, i.e., the uncertain spot demand volume due to stochastic slot booking arrivals and cancelations, and the uncertain remaining ship capacity for the spot demand after satisfying other demand types with higher priority (e.g. delayed containers). This problem is first formulated as a two-stage stochastic nonlinear and nonconvex programming model. A tailored spatial branch-and-bound-and-Benders algorithm is then developed to obtain the global optimal solution of the model. Numerical experiments also demonstrate the efficiency of the solution algorithm and the applicability of the proposed model in improving the profit from the spot shipping demand.

Optimal Global Liner Service Procurement by Utilizing Liner Service Schedules

For global shippers (i.e., multinational manufacturers or retailers), strategic sourcing of container liner shipping services from ocean carriers is an important element of successful global supply chain management. We study how to utilize information about different ocean carriers’ liner service schedules so that shippers can optimize their sourcing decisions over the selection of carriers to transport container cargoes around the world through multiple shipping lanes. We first introduce a deterministic optimization problem, where cargo demands are given in advance and in which inventory holding costs are included to capture the impacts of liner service schedules on the total operating cost. We formulate the deterministic optimization problem as a mixed integer linear program, which can be simplified by exploiting a totally unimodular property, and can thus be solved directly by a general optimization solver. To further capture the impact of liner service schedules on shippers’ resilience to the uncertainties in cargo demands, we then introduce a two‐stage robust optimization counterpart of the deterministic problem based on a probability‐free demand uncertainty set. As the two‐stage robust optimization problem is challenging to solve, we derive some novel reformulations that can enable us to develop an effective solution method. By exploiting the information about liner service schedules, we show how our proposed models and solution method can help shippers to optimize their liner service procurement decisions.

Vertical integration and capacity investment in a two-port system

We model the vertical investment of a container shipping line in the port capacity in a two-port system. Our analytical and numerical analyss suggests that the relative scale of the capacity investment depend on the initial port capacity and the relationship between the ports. When a port has a sufficiently large initial capacity and the ports do not have highly complementary operations, a vertical investment leads to higher investments. Moreover, the investment of a shipping line in a port always increases its own profit and reduces the competitor’s profit. However, when compared with port self-investment, vertical investment always reduces the local social welfare.

Support of the speed decision in liner operation by evaluating the trade-off between bunker fuel consumption and reliability

In liner container shipping, the optimization of bunker fuel costs and reliability can theoretically be achieved by steaming the distance in the available time at average, constant speed. However, in reality bunker fuel costs and reliability are mutually contradictory objectives. Due to incidents (e.g. technical problems on board of vessels, bad weather conditions, piracy) speed ups are necessary to arrive on schedule or at least to mitigate the delay. In this paper, a new approach to liner speed management is proposed. In order to manage the trade-off between bunker fuel consumption and reliability of services, a preventive buffer structure is built up to secure the schedule against delays. However, any analytical calculation of the structure and its effects can only be achieved with disproportionate effort. Therefore, a “discrete event simulation” is applied. Although a heuristic attempt does not provide the exact solution, reasonable and wide-ranged solutions are offered. Different decision alternatives are outlined, structured and tested to find appropriate speed profiles. For the evaluation of speed profiles three measures of reliability and deviation (α-reliability: ratio of punctual vessels [in%], β-deviation: average positive deviation from the schedule [in hours], γ-deviation: average negative deviation [in hours]) and costs are illuminated.

Container liner shipping network design with shipper’s dual preference

This paper addresses the container liner shipping network design by explicitly taking into account shipper's inertia preference and non-inertial preference. Firstly, using the double-constrained gravity model and Newton calibration method to predict the future OD demand matrix which is considered as the input of the model, and then the liner shipping company profit maximization is taken as the objective function to optimize the ship shipping routes, ship type and ship speed. A hybrid genetic algorithm is designed to solve CLSNDP (Container Liner Shipping Network Design Problem). We validate the proposed model by employing a real liner shipping network on the trade shipping route between Asia and West Europe. Through sensitivity analysis, it is found that the service level and market share of container liner shipping company can be improved by considering the dual preference of shippers. In the non-inertia preference of shippers, when cost preference of shippers is greater than time preference, using large ships (over 7000TEU) can achieve greater profits and realize the scale economies of lager ships.

On Probability Distributions of the Time Deviation Law of Container Liner Ships Under Interference Uncertainty

AbstractContainer liner shipping is a kind of transportation mode that is operated according to a schedule. Although the goal is to operate container liner ships on time, the actual arrival time and handling time often deviate from the schedule due to uncertain factors. The identification of a proper probability distribution to describe time deviation law will have a significant impact on accurately recognizing the uncertainty of the operation of container liner ships. In view of this problem, this paper discusses the basic characteristics of container liner ships’ operation time, analyses the properties of relevant probability distributions, and selects representative container ports around the world to collect data on the container liner ships’ operation time for statistical verification. The results show that under schedule constraints and interference uncertainty, the time deviation presents a specific state between a fixed length and random distribution that conforms to the properties of an Erlang distribution. Given that container liner shipping follows the same operation rules worldwide, it is reasonable to deduce that the time deviation law could be generalized to other container ports. Finally, the practical value of this study is demonstrated through quantitative evaluation of port congestion degree under various probabilistic models.

Joint Optimization of Ship Sailing Speed and Container Handling Rate for a Near-sea Liner Service Route

This paper jointly designs the optimal ship sailing speeds on shipping legs and the optimal handling rates at ports of a near-sea liner service route operated by a container liner shipping company. A mixed integer linear programming model is developed, which can be solved directly by the commercial solvers to give a global optimal solution. The model is further applied to a real-life case. Results demonstrate that both bunker price and unit inventory cost affect the optimal ship sailing speed and the optimal container handling rate.

Containerships Sailing Speed and Fleet Deployment Optimization under a Time-Based Differentiated Freight Rate Strategy

This paper investigates the problem of containership sailing speed and fleet deployment optimization in an intercontinental liner shipping network. Under the consideration of the time value of container cargo, three kinds of impact of sailing speed changes on long legs of each liner route are analysed, and a time-based freight rate strategy is proposed. Then, the optimization problem is formulated as a mixed-integer nonlinear programming. Its goal is to maximize the total profits of a container liner shipping. To find the optimal solution to the model and improve the efficiency of model solution, a discretization algorithm is proposed. Numerical results verify the applicability of the proposed model and the efficiency of the algorithm. In addition, the time-based freight rate strategy is able to achieve more profit compared to a fixed freight rate strategy.

Analysis on the Cost Control of Container Liner Shipping Companies under the Global Sulphur Limit Directive

With the increasing attention of the international community to the ecological environment, shipping companies should take environmental protection into account while pursuing economic interests. The introduction of “Global Sulphur Limit Directive” shows that the shipping industry attaches great importance to environmental protection. However this directive also brings many challenges to shipping companies. This paper is about the cost control of container liner shipping companies under the “Global Sulphur Limit Directive”. It analyzes the inevitability of sulphur emission control in container liner shipping companies under the “Global sulphur limit Directive”, lists the existing approaches of sulphur emission control of container liner shipping companies and analyzes the impact of this directive on container liner shipping companies. Finally, based on the main challenge—the rise of operating cost, some suggestions are given in this paper.

Sailing Speed and Fleet Deployment Optimization for Intercontinental Container Liner Shipping Considering Cargo Time Value

Abstract This article collectively addresses the issues of optimizing the sailing speed of containerships and fleet deployment in intercontinental container liner shipping, taking cargo time values into consideration. A mixed-integer nonlinear programming model is developed to maximize the gross profits of a container shipping line. The sailing speed is divided into 0.1 knot intervals and a reciprocal-discretization method is proposed to transform the model into an integer-based linear programming model, which can be solved using optimization solvers such as CPLEX. A case study is conducted based on the Far East-West America liner route of a global container shipping line to assess the effectiveness of the proposed model and the reciprocal-discretization method. The results show that when the cargo time value is taken into consideration, the increased sailing speed of containerships on long legs and the decreased number of deployed containerships will generate greater operating profits for the container shipping line. The rise in bunker price will lead to a stepwise decline in sailing speed of containerships and a stepwise growth in the number of deployed containerships. Moreover, the downward trend of sailing speed due to the increase of bunker price will be somewhat delayed as the unit container cargo value increases. Several useful insights are drawn from analysis of the results.