Container Liner Research Articles

Vessel Scheduling and Bunker Management With Speed Deviations for Liner Shipping in the Presence of Collaborative Agreements

Vessels face uncertain factors during a voyage, such as bad weather and harsh sea conditions along a route in container liner shipping. As such, the real vessel speed during each leg of a voyage often deviates from the planned one, which may lead to fluctuations in vessel schedule and bunker consumption. This paper investigates the problem of vessel scheduling and bunker management with speed deviations (VSBMSD) for liner shipping in the presence of collaborative agreements. By establishing the worst-case scenario of the maximum bunker consumption function with vessel sailing speed as an independent variable, we develop a mixed-integer nonlinear programming model to minimize the total liner shipping route service cost. A piecewise linear secant approximation method is designed, and then a CPLEX solver is used to solve the problem. The results of the computational experiments conducted for the AEMX route indicate that VSBMSD in the presence of collaborative agreements can enable shipping companies to design vessel schedules reasonably and reduce the total cost of liner shipping route service by at least 2.95% compared to the results from similar studies.

Dynamic Pricing and Competition of Container Liner Shipping Services in a Duopoly Spot Market

Dynamic Pricing and Competition of Container Liner Shipping Services in a Duopoly Spot Market

Schedule reliability in liner shipping timetable design: A convex programming approach

Container liner shipping is the primary mode of moving manufactured products across continents. Partly due to inherent uncertainties at sea and ports, the liner shipping industry has long had a notorious reputation of schedule delays and unreliable on-time performance. This paper formulates a new approach to incorporate schedule reliability targets in liner shipping timetable design, to balance bunker consumption, time taken for the voyage, and schedule delays. We first model a surrogate problem using a copositive program through a moment decomposition approach and solve it as a convex semidefinite programming relaxation. We next incorporate schedule reliability targets implicitly by exploiting the optimality condition of this surrogate model.We use this approach to analyze the trade-offs between the bunker consumption and the schedule reliability targets for each port call. Furthermore, we derive the optimal speed of the vessel in each leg of the schedule to control for total bunker consumption. Surprisingly, the analytical analysis shows that, if a shipping line has the freedom to choose its preferred berthing times at all ports, it is optimal to set design sailing speeds equal at all legs to maximize schedule reliability.We validate our model using data from a Daily Maersk service, and demonstrate that our schedule can achieve an even higher schedule reliability than the innovative Daily Maersk service schedule, which attained more than 98% reliability in practice, with 11.4% lower bunker consumption. In comparison with a common schedule design heuristic, our model can design service schedules that improve the reliability performance by at least five percentage points, consuming the same amount of bunker. For the same reliability target (of 80%) in schedule design, our model can help reduce bunker consumption by about 11.6% for an 11-week schedule. The savings in bunker consumption can be much more substantial when an ocean carrier aims for higher schedule reliability.

Application of fuzzy Bayesian approach on bankruptcy causes for container liner industry

The crucial role of the container liner industry in international trade suggests that understanding why container liner firms go bankrupt is vital to the stability, sustainability, and health of container liner transportation. For prevention of the bankruptcies, it is important to reveal the leading causes. Taken the container liner industry into consideration, this paper constructs a novel model of the causal mechanism of bankruptcy from a holistic perspective. Probabilistic relationships between failure causes are revealed qualitatively and quantitatively utilizing a Fuzzy Bayesian Network approach. Following that scenario, sensitivity and validation analyses are carried out to increase the accuracy of findings. Results of the research indicate that when external and internal causes exist together then the probability of bankruptcy occurrence appears with the highest percentage. This supports the research body suggesting that an integrated approach is a more powerful approach in explaining the causes of the bankruptcy than internal or external causes do separately. It is also observed that compared to the external factors, internal causes are found to more contribute to a bankruptcy of a container liner firm. Policy makers and stakeholders in the container liner transportation can utilize the results of this paper in the prevention of firm bankruptcy.

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.

Potential spatial effects of opening Arctic shipping routes on the shipping network of ports between China and Europe

More recently, the accelerated melting of sea ice and the trial operation of container liners in the Arctic have accelerated the opening of Arctic shipping routes(ASR), while providing a realistic possibility for the regular operation of an Arctic route. The normalised operation of the ASR will invariably have important effects on traditional transport routes, reshaping the global marine shipping geography and promoting the geopolitical and economic pattern evolution of the Northern Hemisphere countries based on shipping accessibility. Utilising the shipping data of China and Europe in the context of ‘One Belt, One Road’, this study establishes a shipping network with the normal operation of the ASR through a scenario simulation based on the theory of complex networks and explores the changes in the shipping connection pattern and network structure characteristics with traditional and Arctic shipping lanes. Further, it analyses the changes in the port nodes in terms of connection breadth and depth, as well as the resulting changes in network accessibility, and provides comparisons and analyses of the changes in network characteristics between scenarios to measure the shipping network vulnerability and degree of change. The results show that under the ASR, the trend of "big loose, small concentrated" maritime links is obvious and shows the typical "core-periphery" structure; the Suez Canal is gradually losing its core position in the network under the impact of the ASR, the accessibility of Chinese ports is changing more sharply than that of European ports, and the polarisation process of the Murmansk port is accelerating and the network is more stable and robust. The Suez Canal is losing its core position under the impact of the ASR, the accessibility of Chinese ports is changing more sharply than that of European ports, the polarisation of the Murmansk port is accelerating and the stability and robustness of the network is stronger.

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.

Economic valuation of a national shipping company using a contingent valuation method (CVM): The case of Korea

Due to the bankruptcy of Hanjin Shipping, which was the seventh-largest container liner, Korea’s liner shipping network had collapsed. When Hanjin Shipping entered legal management, shipping and port logisticians, mainly located in Busan in Korea, spoke consistently about the risk of its bankruptcy and damage. Their argument was that if Hanjin Shipping entered bankruptcy, consumer prices would move sharply higher due to domestic cargo being transported by foreign shipping companies. However, after the bankruptcy of Hanjin Shipping, there was no news that consumer prices in the Republic of Korea jumped. Regarding this point, most people not related to the shipping industry may think that the impact of the loss of Hanjin Shipping is not very different from the argument by shipping experts. Considering the above discussion, this paper raises the following questions. How much most people consider the shipping industry or shipping company to be important? To answer this research question, this paper estimates the economic value of a national shipping company by employing the contingent valuation method (CVM). As a result of the study, willingness to pay (WTP) for the national shipping liner’s bankruptcy was estimated to be 5007.99 Korean Won (KRW) (USD 4.34) per year, and the economic value of a national shipping company is KRW 104.623.66 million (USD 90.9 million) per year.

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.

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.

Vertical collusion in the shipping container transport chain over the deregulation tariff of port authority

ABSTRACT This article investigates the impact of cost difference on vertical collusion between a container port and a liner from the perspective of a shipping container transport chain, taking the deregulation tariff of port authority into consideration. It develops a two-stage game model and then performs simultaneous and sequential games. A finding in this article is that the higher the cost difference between the two shipping container transport chains, the greater the possibility of vertical collusion between the container port and liner. Furthermore, the article found that in the case of an infinite repeated game, the stability of vertical collusion is not only subject to the cost difference but also affected by the terminal handling charge (THC) and collusive choice of counterpart.

Study of concrete de-bonding assessment technique for containment liner plates in nuclear power plants using ultrasonic guided wave approach

In this work, the guided wave de-bonding area-detecting technique was studied for application to containment liner plates in nuclear power plant areas. To apply this technique, an appropriate Lamb wave mode, symmetric and longitudinal dominance, was verified by the frequency shifting technique. The S0 2.7 MHz mm Lamb wave mode was chosen to realize quantitative experimental results and their visualization. Results of the bulk wave, longitudinal wave mode, and comparison experiments indicate that the wave mode was able to distinguish between the de-bonded and bonded areas. Similar to the bulk wave cases, the bonded region could be distinguished from the de-bonded region using the Lamb wave approach. The Lamb wave technique results showed significant correlation to the de-bonding area. As the de-bonding area increased, the Lamb wave energy attenuation effect decreased, which was a prominent factor in the realization of quantitative tomographic visualization. The feasibility of tomographic visualization was studied via the application of Lamb waves. The reconstruction algorithm for the probabilistic inspection of damage (RAPID) technique was applied to the containment liner plate to verify and visualize the de-bonding condition. The results obtained using the tomography image indicated that the Lamb wave-based RAPID algorithm was capable of delineating debonding areas.

AP1000 Passive Containment Cooling System study under LBLOCA conditions using the GOTHIC code

AP1000® Generation III+ reactor bases its safety concept on passive systems, differently from the previous Generation II reactors. This fact has led the approximations and methodologies previously used for modeling active safety systems to be reviewed and adapted to simulate the physics of passive systems. Diverse studies about the AP1000 containment have demonstrated the difficulty to correctly model the occurring phenomenology.In this paper, an integral AP1000 3D containment GOTHIC model is presented, including the Passive Containment Cooling System (PCCS). The model includes the compartments inside and outside the metallic containment liner that influence the thermal–hydraulic behavior. The model is tested against a Large Break Loss of Coolant Accident (LBLOCA) to assess its thermal–hydraulic performance, assuming a PCS tank malfunction, what is a conservative hypothesis. The pressure and temperature evolution predicted by the 3D containment model is analyzed and compared with a single node Lumped Parameters model, allowing to evaluate some preliminary benefits of 3D modeling for containment safety analysis.The 3D containment model allows to predict the thermal evolution in each containment compartment capturing the heterogeneity of this phenomenon, with higher resolution than the lumped parameters models traditionally used in this kind of analyses. It allows to observe the thermohydraulic conditions locally at any time during the transient.

The Use of Fuzzy-Bayes Approach on the Causal Factors of Empty Container Repositioning

Abstract Empty container repositioning (ECR) is one of the major bottlenecks of maritime container transportation that should be minimized. To achieve this, it is crucial to reveal the leading causal factors. From a container liner firm perspective, this paper constructs a novel model of the causal mechanism of ECR with its reflections and prevention measures holistically. For this aim, this study examines the probabilistic relationships among the ECR causal factors, which are revealed qualitatively and quantitatively utilizing a fuzzy Bayes network method. Sensitivity and validation analyses subsequently are carried out to enhance the accuracy of findings. Outcomes of the research point out that the industry-specific and operational causal factors have the largest effect equally to explain the occurrence of ECR. Among the root factors, structural trade imbalance has the largest effect on the occurrence of ECR, and it is followed by seasonal demand. It is also observed that factors leading to equipment inefficiency have the least effect on ECR occurrence. Furthermore, the gray box pooling solution appears as the most effective solution to mitigate the negative impacts of ECR on both firm costs and the environment. What follows the gray box pooling are foldable containers and information technology solutions/intermediaries in order. This paper provides insight into ECR as a way to enhance effectiveness in container operations, and container liner firms can utilize the outcomes of this paper to mitigate the accumulation of empty containers.

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

Alliances of maritime liner container carriers: the essence of this phenomenon and its practical significance

Alliances are a key element of modern liner shipping. This article introduces alliances as a new form of consolidation of container lines and offers general information about their activity. The authors examined numerous reliable sources to evaluate different factors which influence the results of shipping lines' participation in global alliances. The authors offer their appraisal of alliances based on research as well as their own experience in shipping. They consider the liner market as an oligopoly of a few companies, which are closely intertwined with the world’s largest corporations and where international law has been substituted with a control by regulators from some of the most powerful countries in the liner trade. This system allows the business of some customers to be protected, while applying limitations on others. Undoubtedly, the alliances have an influence on Russian foreign trade. In summary, the authors believe that the Russian authorities should carefully investigate and control the service of global carriers and alliances. The chief aim of effective control is the free participation of Russian companies in foreign trade, which is not possible without due support of maritime transport. The alliances are truly global entities. They combine both traditional and new methods, including cutting-edge capabilities of information and digital technologies. To prevent a negative influence of the oligopoly, a new international initiative to regulate the alliances as was done with shipping conferences is highly welcomed by the authors.

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.

Study on the rise of container liner transportation industry against the trend under the epidemic situation: Research on liner monopoly mechanisaper

In the context of COVID-19, this paper will focus on the rebound of the container market in the context of the epidemic, explore its reasons and experience, and provide theoretical foundations and suggestions for other industries that have been hit hard by the epidemic.

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.

Numerical assestments of maximum depressurisation rate for polymer materials under high-pressure hydrogen

Hydrogen containers type IV should stand for severe operational conditions, such as temperature variations from −40 °C to 85 °C, and depressurisation from high-pressure above 95 MPa to near atmospheric pressure. There are experimental studies showing that container's liner, usually a thermoplastic material, can suffer blistering and buckling during depressurisation process. It has also been proved that elastomers under high-pressure conditions, which are submitted to a rapid depressurisation, can suffer the formation of cavities because of the dissolved gas. The formation of microscopic defects in thermoplastic materials because of rapid depressurisation is less common in scientific literature.In this paper, we evaluate by numerical means the maximum depressurisation rate a polymer sample can stand before cavitation occurs. By studying the influence of geometrical and pressure conditions, so as material's properties, we obtain algebraic equations that define maximal depressurisation rate. Results of present work serve to estimate performance of liner materials, with the scope of safe and fast container discharge.