Container Repositioning Research Articles

Multiobjective Model of Empty Container Repositioning of Sea Carriage

An multiobjective model for empty container repositioning of sea carriage is established. The first objective is to minimize the cost of empty container repositioning including shipping, rening and. shortage cost. The second objective is to minimize the shortage number of empty containers. In the model, shipping cost is decided by the number of ship used for empty container repositioning. The constraints to the model include meeting the need of empty containers, limit to the ability of empty containers provided and the capacity of shipping. Lingo9.0 is used to solve the model and simulation is done under varied parameters to get a good shipping strategy. The results show that the model can provide an effective program of empty container repositioning for a shipping company and it is a good way to raise shipping efficiency.

Optimization in liner shipping

Seaborne trade is the lynchpin in almost every international supply chain, and about 90% of non-bulk cargo worldwide is transported by container. In this survey we give an overview of data-driven optimization problems in liner shipping. Research in liner shipping is motivated by a need for handling still more complex decision problems, based on big data sets and going across several organizational entities. Moreover, liner shipping optimization problems are pushing the limits of optimization methods, creating a new breeding ground for advanced modelling and solution methods. Starting from liner shipping network design, we consider the problem of container routing and speed optimization. Next, we consider empty container repositioning and stowage planning as well as disruption management. In addition, the problem of bunker purchasing is considered in depth. In each section we give a clear problem description, bring an overview of the existing literature, and go in depth with a specific model that somehow is essential for the problem. We conclude the survey by giving an introduction to the public benchmark instances LINER-LIB. Finally, we discuss future challenges and give directions for further research.

An optimization model for management of empty containers in distribution network of a logistics company under uncertainty

In transportation via containers, unbalanced movement of loaded containers forces shipping companies to reposition empty containers. This study addresses the problem of empty container repositioning (ECR) in the distribution network of a European logistics company, where some restrictions impose decision making in an uncertain environment. The problem involves dispatching empty containers of multiple types and various conditions (dirty and clean) to meet the on-time delivery requirements and repositioning the other containers to terminals, depots, and cleaning stations. A multi-period optimization model is developed to help make tactical decisions under uncertainty and data shortage for flow management of empty containers over a predetermined planning horizon. Employing the operational law of uncertainty programming, a new auxiliary chance-constrained programming is established for the ECR problem, and we prove the existence of an equivalence relation between the ECR plans in the uncertain network and those in an auxiliary deterministic network. Exploiting this new problem, we give the uncertainty distribution of the overall optimal ECR operational cost. The computational experiments show that the model generates good-quality repositioning plans and demonstrate that cost and modality improvement can be achieved in the network.

Business Analytics for Intermodal Capacity Management

Network operations often suffer from chronic asset imbalance over time and across locations. This paper addresses the issue in the intermodal industry. The problem is mainly driven by myopic policies, environmental uncertainty, and network interdependence. To address the problem, we develop a unified framework that integrates two core operations: container repositioning and load acceptance. The central piece is the scarcity pricing scheme, which internalizes the externalities each acceptance imposes over time and across locations. The scheme plays two crucial roles: To transmit dynamic scarcity information, and to incentivize container repositioning. It is most effective when network imbalance and supply risk are high. Exploiting random capacity and heterogenous leadtime, we further refine the load acceptance policy and propose efficient algorithms. We demonstrate that our approach can dynamically reduce network imbalance and improve efficiency. As such, our work provides analytical tools and insights on how to manage intermodal capacity when the information is dispersed and evolving over time.

Intermodal transport and repositioning of empty containers in Central and Eastern Europe hinterland

The objective of this article is to provide a review of literature dealing with empty container repositioning. This review is interlinked with a qualitative data analysis based on semi-structured interviews with representatives of ocean carriers, which are key actors determining empty container repositioning. Empirical evidence obtained from fieldwork in the Czech Republic, albeit limited, is used to illustrate empty repositioning management by ocean carriers in the Central and Eastern Europe (CEE) landlocked hinterlands, which have been neglected in research with a specific geographic scope. By addressing the research questions and conducting the analysis, the authors determine whether empty container repositioning is a problem only concerning equipment allocation by an ocean carrier or requires a collaborative resolution involving various parties engaged in container movements in landlocked hinterlands. This article confirms that most existing literature dealing with empty container repositioning ignores the actual dynamics of landlocked hinterlands as well as business practitioners' perspective. The authors' analysis of the empirical research complements and challenges the reviewed research studies. Based on the analysis, ocean carriers seem to be unwilling to revise their actual container management strategies focused on maritime repositioning, disregarding the potential and importance of intermodal repositioning approaches based on market collaboration. Regarding further research directions, the authors suggest the research replicability and its extension.

Container inventory management: introducing the 3F model

Container inventory imbalances (CII) can primarily be attributed to global trade imbalances that cause a substantial indirect cost in shipping. Therefore, it is imperative that carriers adopt highly efficient and effective container inventory management (CIM) systems to overcome the CII issues. This research intends to develop realistic guidelines for CIM that minimise CII costs. The components of the 3F model are chosen based on the rating scores given by the experts for 22 common CIM strategies followed by a standard filtration process. It ultimately comprises six strategies, namely: reduce import freight; reduce export freight; service agreements; synchronised budget; agile inventory; and export priority. These variables are rooted in three dimensions namely: freight, forecasting and flexibility. To identify the relative contribution by each component, this paper proposes a double weight allocation procedure for each strategy. The 3F model helps managers to think beyond traditional container reposition and increased profits.

Container inventory management: introducing the 3F model

Container inventory imbalances (CII) can primarily be attributed to global trade imbalances that cause a substantial indirect cost in shipping. Therefore, it is imperative that carriers adopt highly efficient and effective container inventory management (CIM) systems to overcome the CII issues. This research intends to develop realistic guidelines for CIM that minimise CII costs. The components of the 3F model are chosen based on the rating scores given by the experts for 22 common CIM strategies followed by a standard filtration process. It ultimately comprises six strategies, namely: reduce import freight; reduce export freight; service agreements; synchronised budget; agile inventory; and export priority. These variables are rooted in three dimensions namely: freight, forecasting and flexibility. To identify the relative contribution by each component, this paper proposes a double weight allocation procedure for each strategy. The 3F model helps managers to think beyond traditional container reposition and increased profits.

An optimization model for container inventory management

This paper formulates the empty container repositioning (ECR) problem, which is one of the most important issues in the container shipping industry, by running a model to generate the service route of feeder shipping in a dynamic environment. The objective is to reduce the disequilibrium of laden and empty containers. This paper first provides a literature review with the emphasis on the shipping scheduling and modelling of ECR. Second, a network model has been designed to find the optimum size of ship servicing a particular region. A simply ECR policy is tested to demonstrate an essential impact on the profit of a container transport system. With the aid of this heuristic shipping model, ECR is integrated with the tramp ship routing problem under dynamic condition.

Foldable container in empty container repositioning in intermodal transportation network of Belt and Road Initiative: strengths and limitations

ABSTRACTIn 2013, the concept of the ‘Silk Road Economic Belt and the 21st-Century Maritime Silk Road (Belt and Road)’ was initiated by the Chinese government, which involves Asian, European and African continents and their adjacent seas. Logistics plays a core role in such a large framework of economy and trade. In recent years, China, European Union, and Southeast Asia pay much attention to the design and development of the intermodal transportation network towards both economic and environmental efficiency. In this paper, we propose an empty container repositioning model in the intermodal transportation network of Belt and Road (B&R) Initiative by considering both standard and foldable containers. In this model, empty containers are repositioned from the inland of the original area, such as China, to other areas of B&R Initiative related countries and regions, such as European Union and Southeast Asia. We develop a mixed integer linear programming model to determine the optimal repositioning of empty containers via the intermodal transportation network. An Artificial Bee Colony algorithm is developed to solve large size problems in practice and numerical experiments are conducted to show the efficiency of our proposed algorithm. We provide managerial insights regarding the impact on the network performance of foldable containers transportation.

Prerequisites for the modelling of empty container supply chains

Abstract Containerisation of freight transport significantly facilitates the flow of traded goods between remote destinations. The most important container transport routes link Asia with North America and Europe. The seasonality and imbalance of trade are the main factors giving rise to problems related to empty container repositioning. The aim of this paper is to develop a concept of empty container supply chains and formulate prerequisites for its modelling in the search for the optimal solution with the help of linear programming and mixed integer programming methods. This paper indicates causes of the empty container relocation problem based on the literature analysis with a special focus on the Eurasian transportation route. Also, it provides a concept of empty container supply chain, prerequisites for its modelling and examples of container supply chains modelling presented in the literature. The main results of the paper include conceptualisation of an empty container supply chain and suggested modelling prerequisites. The paper contributes to research in the field of supply chain management and optimisation of transportation.

An inland-depots-for-empty-containers-model for the hinterland

Purpose The purpose of this paper is to figure out in which way a hinterland-based inland depot model can help a shipping company in solving the empty container problem at a regional level. The repositioning of empty containers is a very expensive operation that does not generate profits. Consequently, it is very important to provide an efficient empty container management. Design/methodology/approach In this paper, the empty container problem is discussed at a regional repositioning level. For solving this problem, a mixed-integer linear optimization model is developed and validated by using the German hinterland as a case. Findings The findings show that the hinterland-based solution is able to reduce the total system costs by 40 per cent. In addition, total of truck kilometres could be reduced by more than 30 per cent too. Research limitations/implications This research is based on German data only. Originality/value This paper closes the gap in empty container repositioning research by looking at the hinterland dimension from a single shipping company point of view.

Virtual Container Pool: Solution to Container Inventory Imbalance

Shipping Container Imbalance causes a substantial additional cost to carriers. However there is no commonly accepted standard system in the industry to minimize the idle time of empty containers at storage resulting substantial cost and breakdown of container supply chain. Container imbalance represents a substantial cost amounting to twenty two percent in the overall cost structure of containers. The only mechanism that carriers practice is the repositioning of empty container from the idle location to other locations where they are in demand in most effective and efficient method. Therefore, majority of literature pertaining to container management relate to empty container re-positioning. The maximum ‘utilisation’ can be achieved if containers are on consistent move with freighted cargo. However, containers remain for about half the time of their lifetime being idle as they are either being maintained, repaired or in storage. Therefore, core issue prevails in the industry is to find the best method to optimize the utilization of containers. This paper introduces a novel concept namely, Virtual Container Pool (VCP) that propose carriers to exchange containers between carriers. It is expected that it would be one of the key contributors to the container utilization maximization strategies.

Optimization in liner shipping

Seaborne trade is the lynchpin in almost every international supply chain, and about 90% of non-bulk cargo worldwide is transported by container. In this survey we give an overview of data-driven optimization problems in liner shipping. Research in liner shipping is motivated by a need for handling still more complex decision problems, based on big data sets and going across several organizational entities. Moreover, liner shipping optimization problems are pushing the limits of optimization methods, creating a new breeding ground for advanced modelling and solution methods. Starting from liner shipping network design, we consider the problem of container routing and speed optimization. Next, we consider empty container repositioning and stowage planning as well as disruption management. In addition, the problem of bunker purchasing is considered in depth. In each section we give a clear problem description, bring an overview of the existing literature, and go in depth with a specific model that somehow is essential for the problem. We conclude the survey by giving an introduction to the public benchmark instances LINER-LIB. Finally, we discuss future challenges and give directions for further research.

Minimizing cost of empty container repositioning in port hinterlands, while taking repair operations into account

Shipping companies are striving to optimize their empty container repositioning strategies which also contribute to reduced congestion and environmental improvements. In this paper we propose a multi-commodity model that makes an explicit distinction between flows of non-damaged containers, on the one hand, and flows of damaged containers, on the other. The model is tailored for the repositioning of these containers in the representative setting of a network of off-dock empty depots, ocean terminals, and inland terminals. In our case study, cost savings of up to 17% are found, depending on the composition of the network, container type, and particular evacuation and repositioning strategy. In particular, directly transporting containers from inland terminals to other inland terminals (direct repositioning) results in cost savings of up to 15% for dry containers and up to 17% for reefer containers. Furthermore, the total costs might be optimized by actually preventing the container failure from occurring possibly leading to considerable additional cost reductions. Finally, exporting damaged containers might seem to be the optimal solution from a regional cost perspective, but, this does not necessarily lead to total cost optimization from the global perspective.

Measuring the perceived container leasing prices in liner shipping network design with empty container repositioning

This paper aims to measure the perceived container leasing prices at different ports by presenting a two-stage optimization method. In stage I, we propose a practical liner shipping network design problem with empty container repositioning. The proposed problem further considers the use of foldable containers and allows the mutual substitution between empty containers to decrease the number of empty containers to be repositioned. In stage II, the inverse optimization technique is used to determine the perceived container leasing prices at different ports, based on the solution obtained in stage I. Based on a set of candidate liner shipping service routes, a mixed-integer nonlinear programming model is built for the proposed problem in stage I. The nonlinear terms are linearized by introducing the auxiliary variables. Numerical experiments based on a realistic Asia-Europe-Oceania liner shipping network are carried out to account for the effectiveness of our two-stage optimization method.

Service type assignment and container routing with transit time constraints and empty container repositioning for liner shipping service networks

A decision tool is developed for a liner shipping company to deploy its fleet considering vessel speeds and to find routes for cargos with repositioning of empty containers and transit time constraints. This problem is referred as the simultaneous Service type Assignment and container Routing Problem (SARP) in the sequel. A path-flow based mixed-integer linear programming formulation is suggested for the SARP. A Branch and Bound (BB) algorithm is used to solve the SARP exactly. A Column Generation (CG) procedure, embedded within the BB framework, is devised to solve the linear programming relaxation of the SARP. The CG subproblems arises as Shortest Path Problems (SPP). Yet incorporating transit time requirements yields constrained SPP which is NP-hard and solved by a label correcting algorithm. Computational experiments are performed on randomly generated test instances mimicking real life. The BB algorithm yields promising solutions for the SARP. The SARP with and without transit time constraints is compared with each other. Our results suggest a potential to increase profit margins of liner shipping companies by considering transit time requirements of cargos.

Sample average approximation under non-i.i.d. sampling for stochastic empty container repositioning problem

The stochastic empty container repositioning (ECR) problem can be solved by the sample average approximation (SAA) method, in which a sample of random scenarios are generated and then deterministic optimization techniques can be applied to solve the problem based on this sample. Considering the scale of SAA problem with multiple scenarios and the large number of random parameters in the ECR problem, we propose a design which combines Latin hypercube design and supersaturated design, which is able to get a satisfying approximation by using only a few scenarios. The impact of several non-independent and identical distribution (i.i.d). sampling methods for the stochastic ECR problem has been computationally examined. It is shown that all these non-i.i.d. sampling methods in consideration could help to enhance the performance of the SAA method for the stochastic ECR problem. Moreover, by using the proposed sampling method, it is less probable to provide bad solutions and the bias of the expected objective value of the sampled problem could also be reduced.

Container repositioning and agricultural commodities: Shipping soybeans by container from US hinterland to overseas markets

Export by container offers advantages for moving agribusiness products due to the availability of empty import containers that can be repositioned, making accessible inland “dry ports” more important in supply chains. This paper assesses the impact and challenges of increasing containerized movements of agricultural commodities from hinterland points to overseas markets, regarding both operations and governance. Products like soybeans have complex supply chains affected by weather, seasonality, price, equipment availability, congestion, modal delay, cargo ownership, and sustainability or product quality requirements. About 5–7% of the total US soybean export crop moves in ocean containers today; with business and governmental support, 12–15% could be attained, benefitting soybean producers, ports, ocean carriers, and shippers. Our case study of soybeans exported from the US state of Illinois examines a number of major operational issues, actions, rules and policies affecting this containerized flow and its total landed cost. One factor, delays in barge links, is studied with a commodity flow model combining product movement with container repositioning. A study of this case can shape operations practice and decisions for governance of intermodal agricultural product export movements.

An integrated container management model for optimizing slot allocation plan and empty container repositioning

This article proposes an integrated container management model to jointly optimize slot allocation plan for loaded containers and reposition for empty containers in a shipping network. The proposed model employs linear programming to formulate loaded and empty container shipping problems in a bi-level structure. In upper level the loaded container slot allocation plan aims to maximize operational profits for each service route; whereas in lower level the reposition of empty containers aims to minimize transportation costs for the entire shipping network. The surplus or deficient empty containers resulted from the upper problem are fed into the lower problem. To demonstrate the applicability of the proposed model, a real case of an intra-Asian short-sea container carrier is presented. The results show that the proposed model can serve as a decision support tool to facilitate the liner to ship the loaded and empty containers in a coordinative way.

The Impact of Container Type Diversification on Regional British Port Development Strategies

Despite a concentration of container traffic in the southeast of the UK over the last few decades, regional ports are attempting new development strategies to capture or retain specific traffic segments. These include intra-European short-sea traffic and a potentially increasing feeder market. These trends are reflected in the movement of different container types, which result in a number of planning challenges related to changing infrastructural and operational requirements. This paper uses highly disaggregated data on container type movements to address three issues that can inform these planning challenges. First, the imbalance of trade resulting in empty container repositioning; second, the requirement for gauge-cleared rail routes to cater for the increasing proportion of high-cube containers; and third, the specialisation of European short-sea traffic at secondary UK ports. The results reveal the disproportionate repositioning of empty containers at Scottish ports and the importance of 45 ft, high-cube and pallet-wide containers at regional ports, highlighting their focus on intra-European short-sea traffic and raising difficulties relating to their lower quality of landside infrastructure (particularly rail) in comparison to the large south-eastern ports. The potential repercussions on hinterland infrastructure development raise questions about both public and private sector responses to regional port development.