Container Liner Research Articles

Vulnerability analysis of global container shipping liner network based on main channel disruption

ABSTRACTThe Malacca Strait, the Suez Canal and the Panama Canal play an important role in the global container shipping. To study the impact of main channel interruption on the container shipping, we analysed statistical data on all routes operated by the top 100 global container liner companies and constructed a network model. We selected four topological metrics to measure the network’s connectivity and used the network weekly total shipping capacity and average shortest shipping time to measure the network’s transportation capacity and transportation time. The interruption of the main channel is simulated, and the changes in the metrics are analysed. The results indicated that the network’s vulnerability is sensitive to main channel interruption. If the Malacca Strait is interrupted, the network’s prosperity degree fall by almost half and the network’s transportation time increase by more than a quarter if the Suez Canal is interrupted. In addition, East Asian and European container liner shipping have more than 50% dependence on the Malacca Strait and the Suez Canal. Moreover, the container transport time between ports in East Asia, Europe, and North America and the rest of the world increases by an average of 4–9 days in the main channel interruption.

Research on the slot allocation of container liner under E-commerce environment

The optimization of slot allocation of container liner is directly related to the benefits of liner company. Generally, there are two kinds of customers in the liner company, contract customers and scattered customers. With the development of e-commerce, more and more scattered customers choose online booking, the predictability and stability of booking slot get improved. This paper describes expected marginal revenue and reserved slots of scattered customers under the e-commerce environment and traditional environment respectively at first. Then, builds a model to maximize the revenue of liner company in the voyage, considering the transportation of empty container and next takes a fixed route of a liner company as an example to testify the model. Finally, according to the result, it comes to the conclusion that the e-commerce has good predicting effect and the total revenue of liner company under the e-commerce environment is greater than under the traditional environment. With the further development of e-commerce, the scattered customer under the e-commerce will replace the contract customer gradually.

Overbooking and delivery-delay-allowed strategies for container slot allocation

Due to uncontrollable markets and unreliable factors in liner container shipping industry, the deviation between the actual and estimated shipment demand of containers always exists, resulting in a waste of shipping capacity or unfulfilled shipping requirements. To tackle such a slot allocation problem, this paper proposes overbooking (OB) and delivery-postponed (DP) strategies to maximize profits. Then, two corresponding multi-period models are developed and solution algorithms are presented. Finally, several numerical experiments are carried on to show the applicability of the proposed models and solution algorithms. The results indicate that the OB and DP strategies can promote the profit.

A method for estimating liner shipping time under uncertainty

With the rapid development of container transportation and the fierce competition among ports, container terminal operators pay more attention to meet the individual needs of customers. This study develops a system to estimate container liner shipping arrival time and the probability distribution for each time set by considering transit process and the periodicity of liner shipping. This system can give the most possible arrival time of cargoes to customers in advance, and then improve the level of port services. Also, a recursive algorithm based solution method and a parallel computing based solution method are proposed for solving the problem. Computational test is conducted on different scales and the results show the effectiveness of the proposed solution approach.

A method for estimating liner shipping time under uncertainty

With the rapid development of container transportation and the fierce competition among ports, container terminal operators pay more attention to meet the individual needs of customers. This study develops a system to estimate container liner shipping arrival time and the probability distribution for each time set by considering transit process and the periodicity of liner shipping. This system can give the most possible arrival time of cargoes to customers in advance, and then improve the level of port services. Also, a recursive algorithm based solution method and a parallel computing based solution method are proposed for solving the problem. Computational test is conducted on different scales and the results show the effectiveness of the proposed solution approach.

Study on the Impact of the Panama Canal Expansion on the Distribution of Container Liner Routes

The expansion of the Panama Canal will have a profound impact on the container shipping route network, port layout and ship structure, and promote the evolution of the global shipping pattern. However, most of the research on the expansion of the Panama Canal currently stays before its real expansion, and the quantitative analysis is less and the result is not accurate, because previous research used data that expanded before. Based on the actual data after the expansion of the Panama Canal, this paper uses the dual-target route distribution model to analyze the expansion of the Panama Canal. The changes in the liner shipping plan that have a greater impact on the shipping industry will provide the relevant theoretical basis for the relevant entities. The results show that after the expansion of the Panama Canal, the largest 15,000 TEU container ship is currently deployed on the route through the Panama Canal. 6500 TEU ship type is also deployed on the route through the Panama Canal. The 8500 TEU, 10,500 TEU, and 12,500 TEU ship types are mainly deployed through the Suez Canal. On the route, such a distribution plan can maximize the benefits for the shipping company.

A Study on Analysis of Container Liner Service Routes Pattern Using Social Network Analysis : Focused on Busan Port

The port industry is an important national industry which significantly affects Korea’s imports and exports which are centered on economic structure. For instance, the Port of Busan, which handles 75% of domestic container freight volume, is expected to become increasingly critical for container liner routes. For this reason, there have been continued efforts to expand freight service to attract international freight volume. This study analyzes the structural characteristics of the port network connected to the Port of Busan by analyzing the pattern of the container liner route from 2012 to 2016 by using social network analysis. According to the Port of Busan’s liner route network, the port with the highest degree of centrality, closeness centrality, and betweenness centrality was found to be the Port of Singapore. The comparison of Busan’s annual container handling rank by countries and the port center network analysis of Port of Busan rank was found to be different. As a result, it was established that China's East Port, which occupies a high percentage of the volume of cargo handled by Port of Busan, is not a hub port of Busan when viewed on the Busan's container terminal liner network. In addition, even if the number of Port of Busan container liner service increases, it is estimated that the vessels to be added to the fleet will be limited to small to medium sized, or that Busan port has characteristic of a feeder port for the Port of Singapore, according to the network.

The Virtual Container Yard: A complimentary tool to optimize consolidation in shipping

Unlike in other ship types, the container ships cannot offer their services without containers and the shipping space become ineffective. Therefore, containers and slots are complimentary and indispensable service component in liner container shipping. The virtual container yard (VCY) is a modern concept and an effective CIM solution that underpins the collaboration between carriers. Carriers already have common platforms to interchange slots thus it is just one fine step away from implementing the similar strategy for containers. It is, through these findings, expected to change the carriers’ myopic view about the container interchange. The actual container statistics in Sri Lanka was extracted from the industry as the source of input for the study. The paper reveals that the VCY could reduce the inventory management cost by 19 percent. Carriers opted to interchange the container slots in cellular ships more than three decades ago. This paved the way for strong collaboration between carriers and provided many financial advantages. It helped in securing economic advantages through scale of economies in highly completive shipping industry. This paper provides empirical evidences of the financial savings of container interchange under different container sizes and types.

Analysis of topology and routing strategy of container shipping network on “Maritime Silk Road”

In this paper, 706 ports and 2306 container liner routes along the Maritime Silk Road from June to December in 2017 were selected as the sample data of the "Maritime Silk Road" container shipping network. By constructing the network feature set to determine the type of network, argue that the "Maritime Silk Road" shipping network belongs to the scale network and analyze its topological characteristics. By calculating the power law exponent of the network degree distribution, it is concluded that the network belongs to the Barabási-Albert (BA) network. Based on the theory of BA scale network performance improvement, the core parameters of the network are optimized by designing the simulation experiment under different scenarios, and the optimal strategy of improving the capacity of the network is explored. The experimental results show that the congestion of the Maritime Silk Road network is affected by the network node capacity and the network routing strategy. There are different optimal parameter configurations under different conditions. The research results are importance for the "Maritime Silk Road" shipping network’s development.

Subloop-based reversal of port rotation directions for container liner shipping network alteration

Container liner shipping network alteration is a practical manner of shipping network design, which aims to make minor modifications to ameliorate the existing network. In a generic liner shipping network with butterfly ports, each ship route is separated into a set of subloops on the basis of its structure and internal butterfly ports. Reversing the subloop directions has an impact on the network-wide cost including inventory cost, transshipment cost, and slot-purchasing cost. This paper proposes a new destination-based nonlinear model for the subloop-based reversal of port rotation directions with the objective of minimizing the overall network-wide cost. We prove that the addressed problem is NP-hard. Next, the model is transformed to an equivalent mixed-integer linear programming model. Based on the structure of the reformulated model, we develop a Benders decomposition (BD) algorithm and a metaheuristic method to solve practical-size instances. Three acceleration strategies are incorporated into the BD algorithm, which are adding Pareto-optimal cuts, updating big-M coefficients and generating combinatorial Benders cuts. Case studies based on three small examples and an Asia-Europe-Oceania liner shipping network with a total of 46 ports are conducted. Results show that the problem could be efficiently solved by the accelerated BD algorithm and the optimization of subloop directions is conducive to decreasing the network-wide cost especially the inventory cost.

컨테이너선사의 리스크관리에 관한 연구

컨테이너선사의 리스크관리에 관한 연구

Hydro-mechanical behavior of a lateritic fiber-soil composite as a waste containment liner

In waste disposal landfill projects, the hydraulic conductivity of the barriers is a major consideration. The use of fibers mixed with backfill may improve the overall performance of the barriers. Fiber-soil composites show a more resistant and ductile behavior than the soil alone. The presence of fibers may reduce cracking problems related to shrinkage or traction in liners or covers. In this study, laboratory tests were performed to evaluate the use of fiber-soil composites as a containing barrier. Hydraulic conductivity and diametral-compression tests were carried out on PET fiber reinforced and unreinforced compacted soil specimens. The tests were conducted under confinement conditions similar to those found in the field. Diametral-compression tests were used to induce cracks in the specimens. Hydraulic conductivity was measured at different stages during the diametral loading. In the tests performed under low confinement pressure (10 kPa), the crack openings led to a significant increase in hydraulic conductivity. The results showed that the addition of fibers increases the tensile strength of the soil-fiber mass and delays the opening of cracks. Moreover, in the tests under high confinement pressure (100 kPa), a decrease in hydraulic conductivity occurred at all stages of the diametral load application.

Operational and geographical dynamics of ports in the topology of cruise networks: The case of Mediterranean

Geography is an integral part of the cruise industry since cruises are conducted in the geographical space and thus are submitted to spatial and geomorphological constraints. However, the cruise-literature lacks of research focusing on the geographical aspect of the interactions existing between ports and cruise companies. This paper attempts to fill this gap by examining the spatial networks of two contemporary cruise companies operating in the Mediterranean, using complex network analysis that has been extensively applied to other shipping sectors, such as to the container liner shipping, but not, in a comprehensive context, in the cruise industry. The complex network analysis applied in this paper provides insights about the operational and geographical dynamics of the ports participating in the Mediterranean cruise network, which can help the cruise companies and the port authorities to comprehend and to measure their competitive position in the network. The overall approach develops a novel classification of ports according to their integration in the cruise network, an optimized modularity segmentation of the Mediterranean market by considering both operational and geographical aspects of this network, and an in-depth efficiency comparison between the spatial networks of the cruise companies.

A RESEARCH ON OPERATIONAL PATTERNS IN CONTAINER LINER SHIPPING

This article studies operational patterns in container liner shipping with the emphasis on End-To-End (ETE), Round-The-World (RTW), and pendulum patterns. The first research issue deals with their deployment on designing shipping routes on the East–West corridor. The second issue compares their operational characteristics to realize their strength and weakness. The empirical work is carried out using 2074 route records of the top 20 shipping lines from 1995 to 2011. During the period, ETE was the dominant pattern. From 81 to 93% of the surveyed routes operated under this pattern. Pendulum was in favour in the early 2000s, but its use later declined. Round the world had been expected as an innovation in the industry but it was employed limitedly. An important feature of RTW and pendulum patterns is to include multiple trades on a single route, which can bring about the advantages of traffic bundling and less fleet requirement. On the other hand, multiple trades result in more complexity of these patterns, displayed through long voyage distance and time, a greater number of visited regions and more ports of call. Additionally, the deployment of mega vessels is also restricted due to traffic discrepancy between trade lanes.

Swedish shippers\u2019 strategies for coping with slow-steaming in deep sea container shipping

When container shipping lines experience over-capacity and high fuel costs, they typically respond by decreasing sailing speeds and, consequently, increasing transport time. Most of the literature on this phenomenon, often referred to as slow-steaming, takes the perspective of the shipping lines addressing technical, operational and financial effects, or a society perspective focusing on lower emissions and energy use. Few studies investigate the effects on the demand side of the market for container liner shipping. Hence, the aim of this study is to elaborate on the logistics consequences of slow-steaming, particularly the strategies that Swedish shippers purchasing deep sea container transport services employ to mitigate the effects of slow-steaming. Workshops and semi-structured interviews revealed that shippers felt they had little or no impact on sailing schedules and were more or less subject to container shipping lines’ decisions. The effects of slow-steaming were obviously most severe for firms with complex supply chains, where intermediate products are sent back and forth between production stages on different continents. The shippers developed a set of strategies to cope with the low punctuality of containerised shipping, and these were categorised in the domains of transfer-the-problem, transport, sourcing and distribution, logistics and manufacturing, and product design. All firms applied changes in the transport domain, although the lack of service segmentation limited the effects of the strategy. Most measures were applied by two firms, whereas only one firm changed the product design.

Measuring the contribution of logistics service delivery performance outcomes and deep-sea container liner connectivity on port efficiency

One objective for countries in the European common market is to optimize the performance of their multimodal logistics chains. The attainment of this goal requires the continuous development of container ports' performance, better customer satisfaction and - at the same time - to deter the occurrence of waste and bottleneck. Many regions in Europe are shifting from a single-port to a multi-port gateway situation; their ports frequently have overlapping hinterlands and are therefore increasingly facing competition and rivalry between each other. This paper examines container ports located in six countries: Denmark, Finland, Iceland, Norway, Sweden and the UK. It focuses on sensitivities to the inclusion of country-specific measurements on logistics service delivery performance outcomes on port efficiency. Port efficiency is measured with Data Envelopment Analysis (DEA). The results suggest that: (1) efficiency measurements for Danish, Finnish, Swedish and British ports are heavily influenced by whether logistics service delivery outcomes are included or not; (2) Icelandic and Norwegian ports appear to be not sensitive to whether logistics service delivery outcomes are included or not; (3) on average, the container ports located in countries that are directly called by deep-sea transcontinental container liners are over-performers and under-performers with regard to technical efficiency and scale efficiency, respectively. We further apply a second-stage regression analysis to explain the impact of country-specific contextual factors on DEA-based efficiency scores.

Container liner freight index based on data from e-booking platforms

ABSTRACTThis article proposes a framework for a daily container freight index (DCFI) and investigates a number of principles in the design of this type of indices. Based on a comparative analysis with the existing container freight indices, we explore a method of integrating the framework with the use of data from e-booking platforms and illustrate why the new index can provide more insightful information for shippers. We also apply the framework to have a daily Shanghai container freight index by combining data sources from the platforms linked to the Shanghai port. By implementing the index to a risk analysis problem, we use numerical results to show the DCFI’s potential position in real hedging problems for container liner markets.

An empirical model for estimating berth and sailing times of mega container ships

ABSTRACTWe provide two empirical models for calculating the sailing time and berth time of maritime container liner networks to effectively model the ambiguity associated with sea and port contingency for ex-ante decisions of fleet deployment and route planning. The models are based on recorded AIS data of 110 mega vessels including all the operating container mega vessels with a capacity of 16,000 TEU or more during the summer of 2015. The models are able to estimate the sailing time (with R2 of 0.974) and the berth time (with R2 of 0.895) without knowledge of any operational-level explanatory variables. The models are validated against the published East Asia–North Europe services. Moreover, the study reveals that vessel operators adopt different berthing and sailing strategies even under the same conditions.

Jointly optimizing ship sailing speed and bunker purchase in liner shipping with distribution-free stochastic bunker prices

This paper jointly designs the optimal ship sailing speeds on shipping voyages and the optimal amount of bunker fuel to purchase at each port of a shipping network operated by a container liner shipping company. Bunker prices at these ports are assumed to be correlated random variables. Considering the difficulties in calibrating these prices into specific joint probability distribution in practice, this study merely requires some fundamental descriptive statistics information of these bunker prices, including lower and upper bounds, means and covariances, which can be tangibly estimated from historical data. To solve this problem, a mixed integer programming model is first formulated for deterministic bunker prices to minimize the sum of ship operating cost and bunker consumption cost. This model is subsequently extended to incorporate stochastic bunker prices by developing a series of approximation techniques using the bunker price descriptive statistics information. A numerical example based on real-case price data of a liner shipping network from an international shipping company shows that the proposed model is able to simultaneously control the average bunker purchase cost as well as the risk resulting from the extremely high bunker prices.

A non-structural approach to assess competitive conditions in container liner shipping market: 2009-2014

This paper aims to assess the demand elasticities and competitive conditions in container liner shipping (henceforth: CLS) market. Using a dynamic model, the regression results reveal that the degr...