Global Logistics System Research Articles

An information architecture to enable track-and-trace capability in Physical Internet ports

The Physical Internet (PI), a new vision for the future of the global freight transport and logistics system, describes a geographical hierarchy of interconnected networks of networks, from the urban, to the national, the continental, and the global level. Like today, in PI the maritime ports will fulfil roles as continental and global hubs. Differently than ports today, however, decisions to split and bundle cargo across ships and other modes will not be made solely on the basis of long-term agreements by ports, but rather ever more dynamically and in real-time, aiming to reconsolidate shipments within the port area. This implies a need to reconsider the currently used information systems (ISs), and to gain understanding of future requirements to satisfy their needs. We exploit a design science research (DSR) approach to shape these requirements. Among the many components of future ISs, we study ports’ track-and-trace (T&T) capability. The proposed information architecture (IA) enables to integrate T&T capability in PI ports by means of information carried on PI containers into the logistics chain via an open interface platform, which also supports interoperability among the various actors’ ISs. The design is based on the Reference Architecture Model for Industry 4.0 (RAMI 4.0). This model supports the analysis of PI ports in key dimensions along with hierarchical logistics entities, which could be used as a blueprint for IAs of PI ports, globally. We provide insights into the approach’s applicability by means of the illustrative case of Teesport, located in Northeast England (United Kingdom).

АНАЛИЗ ИЗМЕНЕНИЯ ОБЪЕМА РЫНКА ГРУЗОВЫХ ПЕРЕВОЗОК В РЕГИОНЕ С УЧЕТОМ ВЛИЯНИЯ ПАНДЕМИИ КОРОНОВИРУСА

The global transport and logistics system was one of the most affected areas as a result of the coronavirus pandemic. The negative effects are based on various factors, such as the closure of State borders, the introduction of restrictions on the movement of people and goods, the disruption of supply chains, and the decline in demand and purchasing power. The combination of these factors affected all types of transport – from the use of personal and public transport in cities to passenger and freight transport both within and between countries. The scale of negative consequences depends on the type of transport and the state's integration into the global transport and logistics system. However, transport as an industry should be more resilient to the consequences of any shocks, as it is one of the backbone sectors of the country's economy.The purpose of this article is to analyze the consequences of the crisis caused by the coronovirus pandemic for the rail freight transport market. The object of the study is the territorial center of branded transport services of the Southeastern railway. The subject of the study is analytical procedures and methods for processing data on the state and prospects of changes in the cargo market.

The Physical Internet in the Era of Digital Transformation: Perspectives and Open Issues

The Physical Internet (PI, or π) paradigm has been developed for a global logistics system that aims to move, handle, store, and transport logistics products in a sustainable and efficient way. To achieve this goal, the PI requires a higher level of interconnectivity and interoperability in terms of physical, informational, and operational aspects, which, by following the principle of the digital Internet (DI), is enabled by an interconnected network of intermodal hubs, collaborative protocols, and standardized, modular, and smart containers. Meanwhile, digital transformation (DT) has become mainstream in Industry 4.0 to innovate many industries, including logistics and supply chains, through the use of breakthrough digital technologies in the fields of information, communication, connectivity, analytics, and computing, such as the next generation of communication and networking (i.e., 5G), the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), big data analytics (BDA), and cloud computing (CC). In this context, the introduction of DT in the PI vision has many implications for the development and realization of an efficient and sustainable global logistics system. This study investigated the perspectives of PI under the impact of DT. The major challenges and associated open research regarding the adoption of DT in PI have been thoroughly investigated.

Simulation Project for Logistics of Brazilian Soybean Exportation

Decision-making in complex logistics systems involves high risks and associated impacts. A way to forecast the impacts of these decisions is through the use of systems simulation projects, where the systematic impacts of the parameters can be visualized. This study presents a project based on Discrete-Event Simulation (DES) that analyses Brazilian soybean export logistics from producing regions to main international customers. The strategic analysis of a global logistics system using DES is a particularity of this study. At the conception stage, the conceptual modelling was made using IDEF-SIM (Integrated Definition Methods – Simulation) method, which allowed a better abstraction of reality and more accurate model implementation. The experimental analysis took place through the construction of 39 scenarios with specific characteristics that verified system behaviours through proposed changes. The analyses and decisions are based on costs. The simulations indicated the necessity for: a) an integrated management between the systems agents; b) the development of internal transportation infrastructure, especially railways and waterways, to increase competitiveness of Brazilian soybeans in the international market.

Blockchain Architectures for Physical Internet: A Vision, Features, Requirements, and Applications

Physical Internet (PI) is a global and interconnected logistics system that enables freight transportation and material handling akin to transfer of data packets in computer networks and digital Internet. Blockchain is an emerging and disruptive technology that has the potential to bring ground-breaking innovation and major improvements to PI based transportation and material handling systems. In this article, we describe the advantages of integrating blockchain technology with PI and present suitable architectures. We discuss the enabling concepts required to ensure the feasibility of blockchain based PI networks leading to efficiency and trust for the next generation logistic networks and material handling systems. Furthermore, we present two permissioned block-chain architectures using Hyperledger Fabric and Besu that provide decentralization, privacy, trust, immutability, and transparency in PI networks. Finally, we highlight several use case scenarios that demonstrate the practicality of the proposed blockchain architectures for the PI networks.

Asset tracking, condition visibility and sustainability using unmanned aerial systems in global logistics

The scale and scope of global logistics systems make real-time visibility of individual assets in global logistics systems difficult. Aggregating global logistics data to a manageable level where interruptions and disruptions can be anticipated or resolved is high on the wish list of global logistics managers and decision makers. Asset tracking and condition visibility in global supply chains is also difficult because few standards or metrics have been assessed in a supply chain, particularly when new technology is introduced, such as unmanned aerial systems in global supply chains. In this paper, we describe the integration of an unmanned aerial system in a global logistics system, and the metrics used to assess the integrated system. We highlight the importance of supply chain process, business impact, societal and environmental sustainability metrics, in addition to economic and supply chain performance metrics, in evaluating the integrated system.

Optimization of a physical internet based supply chain using reinforcement learning

Physical Internet based supply chains create open, global logistics systems that enable new types of collaboration among participants. The open system allows the logistical examination of vehicle technology innovations such as the platooning concept. This article explores the multiple platoon collaboration. For the reconfiguration of two platoons a heuristic and a reinforcement learning (RL) based models have been developed. To our knowledge, this work is the first attempt to apply an RL-based decision model to solve the problem of controlling platoon cooperation. Vehicle exchange between platoons is provided by a virtual hub. Depending on the various input parameters, the efficiency of the model was examined through numerical examples in terms of the target function based on the transportation cost. Models using platoon reconfiguration are also compared to the cases where no vehicle exchange is implemented. We have found that a reinforcement learning based model provides a more efficient solution for high incoming vehicle numbers and low dispatch interval, although for low vehicle numbers heuristics model performs better.

Optimization of hyperconnected mobile modular production toward environmental and economic sustainability.

Logistics sustainability is increasingly becoming a central focus of businesses, when most societies are aware of the influence of industry on both the environment and human health. To address the drawbacks of the way logistics systems have been designed, a new logistics system called Physical Internet has been proposed. This system relies on the creation of hyperconnected logistics systems. It aims to improve in an order of magnitude the way physical objects are transported, handled, stored, supplied, realized, and used to be more sustainable and efficient economically, environmentally, and socially. This paper focuses on the product realization using a hyperconnected mobile production mode in the context of Physical Internet, an open global logistics system. It addresses its dynamic deployment of production modules and resource allocation and sharing. It then proposes a make-to-order bi-objective optimization model which minimizes costs and greenhouse gases (GHGs) related to the product realization of a manufacturer to serve its customers given the availability of the open fabs. Experimental results are presented to identify the computational performance of the established model, as well as the economic and environmental benefits of using the facilities enabled by the PI. Finally, it concludes and provides directions for future research.

Warehousing Financing Behavior of Global Logistics System under the Situation of Financial Crisis

Warehousing Financing Behavior of Global Logistics System under the Situation of Financial Crisis

The Impact of Global Protectionism on Port Logistics Demand

Various risks and uncertainties are strengthening the downside of the global economy. This paper aims to estimate the impact of the US–China conflict and the World Trade Organization (WTO) Appellate Body’s shutdown on global logistics demand and to show the seriousness of the situation. Existing literature studies on protectionism or the US–China trade conflict were considered, with a focus on the effects of specific issues or impact on bilateral relations. No research has quantitatively considered the adverse effects of the Appellate Body’s shutdown. In this situation, questions can be raised whether the current global shipping logistics system can be sustainable or not. This paper attempts to estimate the shrinking demand for shipping logistics due to global protectionism. Using a dynamic general equilibrium model and trade-cargo-container conversion methodology, which differentiates this paper from previous studies, the paper suggests that the combination of tariffs and NTBs can severely reduce international trade and the demand for maritime logistics services. Depending on the scenario, port cargo is expected to decrease by 3.95 to 6.9 trillion tons, which can be half of the global cargo. Based on these estimates, this paper suggests that a catastrophe could occur in global trade order as well as global maritime logistics. Finally, underlining that the international trade order should not be severely damaged, this paper proposes that countries around the world should seriously discuss this issue at the 12th WTO Trade Ministers’ Meeting in Kazakhstan in June 2020.

Toward the Internet of Things for Physical Internet: Perspectives and Challenges

The Physical Internet (PI, or $\pi $ ) paradigm has been developed to be a global logistics system that aims to move, handle, store, and transport logistics products in a sustainable and efficient way. To achieve the goal, the PI requires a high-level interconnectivity in the physical, informational, and operational aspects enabled by an interconnected network of intermodal hubs, collaborative protocols, and standardized, modular, and smart containers. In this context, PI is a key player poised to benefit from the Internet-of-Things (IoT) revolution since it potentially provides an end-to-end visibility of the PI objects, operations, and systems through ubiquitous information exchange. This article is to investigate opportunities of application of the IoT technology in the PI vision. In addition, an IoT ecosystem ( $\pi $ -IoT) encompassing key enabling IoT technologies, building blocks, and a service-oriented architecture (SoA) is proposed as a potential component for accelerating the implementation of PI. The major challenges regarding the deployment of IoT into the emerging logistics concept are also discussed intensively for further research.

Impact of the COVID-19 pandemic on the global and Russian logistics system

Impact of the COVID-19 pandemic on the global and Russian logistics system

Single-value neutrosophic cosine measure for evaluation of port logistics competitiveness

Port as an irreplaceable important node in the process of logistics is a special form of the integrated logistics system, which completes the basic logistics service and value-added services in the global supply chain logistics system. At present, the port logistics service has become an important breakthrough in the competition of ports, the improvement of port logistics competitiveness has great influence on the development of port and port city and even the area economic development. Analyzing from the port logistics competitiveness, this paper establishes a comprehensive evaluation index system and proposes a single-value neutrosophic cosine measure method to evaluate the port logistics competitiveness of five sample ports, and gets the score sorting of the logistics competitiveness of these five ports. This method as a helpful tool is clear and easy for port logistics competitiveness evaluation during actual application.

Application of Big Data in a Multicategory Product-Service System for Global Logistics Support

This article conducts a case study with a global logistics service value-added (GLSV) system using big data analytics (BDA), which is implemented in a machinery equipment manufacturing company to provide a multicategory product-service system (PSS) intended to enhance firm performance. Drawing on the product-service system (PSS) concept, application of big data analytics, and strategic information systems planning (SISP), the plan do check action (PDCA) concept is used to develop a research framework in order to achieve the target company's objectives through the use of a global logistics system. The current article considers a machinery and equipment company located in a developing country as the case study. Through the case study, it is ascertained how the case company develops a GLSV system with BDA applications that leads to achieving multicategory PSS applications. The results indicate that a successful multicategory PSS should consider customer demands in the system framework and construct innovative assisting functions to support customer requirements. The proposed model not only demonstrates that a firm's business models should apply big data to align product providers with multicategory product-and-service providers for the PSS in global supply chains but also proves that this approach will enhance competitive advantage.

GLOBAL CONTAINER SHIPPING OPERATORS’ STRATEGIES AND THEIR IMPACT ON LOGISTICS SUPPLY CHAINS

The world economic and financial crisis that seriously hit the global economy and especially its trade and transport sectors in the years 2008-2009 also affected with significant force the global maritime container transport. This strategic maritime transport subsector is regarded as a driving force of smooth development of the global logistics supply chains and the backbone accelerating globalization processes. However, since 2010 effective demand and potential supply on the global container freight market are in constant state of disequilibrium, caused to a large extend by wrong tonnage investment strategies of container operators. Lack of ability to adapt the supply side to changes occurring on the demand side of the container market has brought numerous serious financial and economic consequences which not only affected the global container shipping operators but also hit other parties involved in the logistics supply chains spread within the global logistics space created in the contemporary global economy. Purpose: The main objective of this paper is to evaluate the dynamics of global maritime container market, especially its demand side which fluctuates vigorously, and assess the short and medium term strategies applied by the powerful shipping operators in terms of their multi-channel impact on the other parties of the global intermodal supply chain and the global logistics system as a whole. Methodology: The traditional method of maritime freight analysis was applied based on container freight and charter indices, such as SCFI or HFI. They reflect the amplitude of freight rate per TEU fluctuations in a certain period of time (e.g. quarter, week, etc.) which is congruent with the effective demand changes confronted with the existing potential supply. Growth of tonnage capacity, determined by the global container shipping operators’ strategies aimed for further development and better utilization of the existing transport potential of container fleet acting on the very competitive global freight market, has been assessed in terms of logistics efficiency and its effects have been estimated within the global value chain. Findings: The obtained results indicate that: 1/ global maritime container transport market is still significantly unbalanced and subject to high dynamics of demand fluctuations, and consequently freight rates , 2/ applied strategies of maritime global container operators in the operational and investment area fail to bring intended results, leading to strong capital horizontal integration in the sector of maritime container transport and vertical integration within the global logistic supply chains, 3/ the situation destabilizes the operations of global supply chains and consequently the global TSL sector, preventing forwarders and shippers from taking rational decisions on a medium and short term basis, 4/ this relatively long-standing situation (from 2010) shakes the foundations of transport and logistics order worldwide, 5/ the beneficiary of this situation on the market of maritime container transport and strategic decisions of global container operators is global economy as well as consumers of goods imported by sea in containers. Originality/value: The approach proposed by the author regarding the analysis of the effectiveness of freight market operations in the context of developed and implemented operational and investment strategies of maritime container operators with an attempt to assess the effects of such decisions within global logistic supply chains has not been the subject of research until now. The obtained initial results which require further detailed analysis, provide significant values, both theoretical (enrich the market theory) and practical (as regards taking rational decisions and effective management of global supply chain).

Optimal Pricing Decisions of Competing Air-Cargo-Carrier Systems—Impacts of Risk Aversion, Demand, and Cost Uncertainties

Air-cargo transportation has become increasingly important for global logistics systems nowadays. However, due to the intensive market competition and diverse uncertainties arising from demand and operating costs, the pricing decisions for air-cargo carriers are extremely challenging but underexplored. Besides, many airlines are holding risk-averse attitudes in decision making in order to survive in the highly volatile and competitive market. Therefore, in this paper, we apply the mean-variance theory to characterize the risk-averse behaviors of decision makers, and analytically derive the equilibrium prices for two competing risk-averse air-cargo carriers under demand and cost uncertainties. Then, we uncover how the crucial factors, like risk sensitivity coefficients, market competition, market share, demand uncertainty, and cost uncertainty, affect the carriers’ optimal prices. In addition, important cost thresholds and relative risk-averse attitude thresholds are identified. Our analytical results demonstrate the symmetry in the optimal prices and critical thresholds for the two carriers. Besides, we reveal the importance to consider both carrier’s own and the competitor’s risk attitudes and operating characteristics in decision making when market competition exists. Moreover, we reveal the direct and indirect impacts of risk attitudes on the optimal prices, thus highlighting the importance to integrate risk considerations into the optimal pricing decision framework. Finally, we show that market situations play a critical role in characterizing the effects of diverse parameters on the equilibrium prices, which should be carefully evaluated by decision makers in air-cargo carriers.

Multi-Objective Sustainable Truck Scheduling in a Rail–Road Physical Internet Cross-Docking Hub Considering Energy Consumption

In the context of supply chain sustainability, Physical Internet (PI or π ) was presented as an innovative concept to create a global sustainable logistics system. One of the main components of the Physical Internet paradigm consists in encapsulating products in modular and standardized PI-containers able to move via PI-nodes (such as PI-hubs) using collaborative routing protocols. This study focuses on optimizing operations occurring in a Rail–Road PI-Hub cross-docking terminal. The problem consists of scheduling outbound trucks at the docks and the routing of PI-containers in the PI-sorter zone of the Rail–Road PI-Hub cross-docking terminal. The first objective is to minimize the energy consumption of the PI-conveyors used to transfer PI-containers from the train to the outbound trucks. The second objective is to minimize the cost of using outbound trucks for different destinations. The problem is formulated as a Multi-Objective Mixed-Integer Programming model (MO-MIP) and solved with CPLEX solver using Lexicographic Goal Programming. Then, two multi-objective hybrid meta-heuristics are proposed to enhance the computational time as CPLEX was time consuming, especially for large size instances: Multi-Objective Variable Neighborhood Search hybridized with Simulated Annealing (MO-VNSSA) and with a Tabu Search (MO-VNSTS). The two meta-heuristics are tested on 32 instances (27 small instances and 5 large instances). CPLEX found the optimal solutions for only 23 instances. Results show that the proposed MO-VNSSA and MO-VNSTS are able to find optimal and near optimal solutions within a reasonable computational time. The two meta-heuristics found optimal solutions for the first objective in all the instances. For the second objective, MO-VNSSA and MO-VNSTS found optimal solutions for 7 instances. In order to evaluate the results for the second objective, a one way analysis of variance ANOVA was performed.

Novel Approach for Comprehensive Centrality Assessment of Ports along the Maritime Silk Road

The Belt and Road (B&R) initiative provides a great opportunity for facilitating the development of the maritime industry. Ports, as the main components of the global maritime logistics system, have attracted attention from both industry and academia in relation to the evaluation of their role in maritime shipping networks. To assess the importance of ports along the Maritime Silk Road (MSR), this paper constructs a container shipping network based on the service information of 16 world-leading container liners and analyzes the disparity of ports based on the topological features of the network. A novel multi-centrality-based indicator is proposed to analyze the centrality of ports along the MSR from a more comprehensive perspective, and the obtained results are further verified by using vulnerability analysis. The results indicate that the Port of Hong Kong, Port of Singapore, Port of Shenzhen, and Port Klang are at the center of the MSR container shipping network. The vulnerable ports identified by different methods are largely consistent. This study provides a reference for the management of ports along the MSR and a theoretical basis for future optimization of container shipping networks in other areas of the world.

Post-project assessment of transport and environmental risks of the "Western Europe – Western China" international corridor

Despite the rapid process of Kazakhstan’s integration into the global logistics system, stages of post-project assessment and mechanisms for optimization of transport and environmental risks of international corridors are still not developed taking into account their impact on the development of the regions involved in the transit. Stages are proposed for post-project assessment and monitoring of international transport corridors, their impact on the environment, what is needed to confirm, assessment of the impact of construction on the environment and effective preventive, and if necessary, corrective measures, aimed at coordination between construction and the environment. The post-project evaluation program being developed takes into account not only the results of road construction – engineering analysis of road construction, but also assesses the long-term environmental impact on the socio-economic development of the areas involved in the corridor system. Post-project evaluation includes analysis of transport corridors, especially relevant for arid regions, as the most vulnerable in the increasing climate change.

Sizing an Energy System for Hybrid Li-Ion Battery-Supercapacitor RTG Cranes Based on State Machine Energy Controller

Ports and container terminals play an important role in the global logistics system. Handling containers inside container terminals and rail terminals are mostly carried out by rubber tire gantry (RTG) cranes. These cranes have quite different power profile compared to hybrid vehicles. They have a broad power demand, varying from 10kW to 350kW, 170kW regenerating power, and a maximum of 30kW auxiliary power. The high peak demand due to the acceleration of hoist drivetrain determines the prime mover (diesel generator) capacity. This capacity is highly over-rated when comparing with crane's average power demand. Such power profiles having high peak power to average power ratio can be supplied through hybrid systems which can downsize the diesel generator, improve fuel efficiency, reduce CO 2 emissions, and reduce maintenance cost. In this study, a hybrid energy source is presented for an RTG crane. The hybrid energy source comprises a Lithium-ion battery bank, supercapacitor (SC) bank connected to the DC-link through bi-directional DC/DC converters, and a downsized variable speed diesel generator (VSDG) connected to the DC-link through an active rectifier. The narrowband operation of the battery bank helps to increase the healthy life of the battery system reducing risk due to unhealthy conditions during faults and abnormal situations. In this paper, the sizing of a hybrid energy system controlled by a state machine controller is presented. Unlike traditional optimization-based sizing techniques, unique features of demand profile, operating environment, system redundancy, backup operation, readily available components, and specific features of state machine controller were highly considered which differentiate the method of sizing from others.