Liner Shipping Network Research Articles

Asia‒Europe liner shipping network design model considering Arctic route and black carbon tax

The recent improvement in navigational conditions along the Northern Sea Route (NSR) has attracted the attention of academia and industrial circles. For liner companies, the NSR offers a considerably shorter voyage distance than the Suez Canal Route does, making it a viable option to increase their profits. However, the overexploitation and utilization of the NSR may produce large amounts of black carbon, thus damaging the Arctic ecosystem. In light of the aforementioned background, we examine the challenges in designing liner shipping networks while considering the navigability and transit cost of the NSR and the environmental costs (i.e., black carbon pollution taxes) associated with black carbon. To this end, we establish a bi-level optimization model. Specifically, the upper-level model selects a network design scheme that maximizes the liner company's profit, whereas the lower-level model optimizes the slot allocation scheme to evaluate the derived network design scheme from the upper-level model. To solve this bi-level model, we develop a meta-heuristic algorithm embedded with a linear programming model and perform numerical experiments via a practical Asia‒Europe shipping route. Sensitivity analyses are conducted under various navigational conditions and black carbon taxes. The findings demonstrate that the proposed model and algorithm can effectively address the network design problem, offering practical managerial insights for the liner company's daily operations and the policy formulation of green sustainable transportation policies by governments of countries along the NSR. This paper provides a valuable contribution to advancing green shipping practices in the Arctic region.

Hub port location and routing for a single-hub feeder network: Effect of liner shipping network connectivity

For the design of feeder lines within a region, previous studies assume that the hub port is given in advance. It is necessary to investigate locating hub port together with designing feeder lines for a region. This paper proposes a hub port location and routing problem for a single-hub feeder network, which addresses feeder line design and hub port location. The proposed problem also considers liner shipping network connectivity (the connection between feeder lines and main lines via container transshipment at hub ports). It is described by a mixed integer linear program, which is solved by a genetic algorithm devised. Numerical experiments show that: i) the devised algorithm can efficiently solve our model; ii) due to considering liner shipping network connectivity, the optimal solution of hub port location and feeder line design becomes more rational, as compared with that without considering liner shipping network connectivity.

Evolution and stability of liner shipping networks in Northeast Asia from 2018 to 2022

Ports are severely challenged by the uncertainty of the transportation environment. To evaluate the stability of maritime transportation network in Northeast Asia under port disruption, a network stability analysis model based on node failure rate that considers static and structural, dynamic and functional is proposed in this paper. In this model, the stability of the maritime transportation network is redefined. Based on complex network theory, the statistical topological parameters and evolution of the network are quantitatively analyzed. The active response and passive adaptation process of the maritime transportation network to the failure rate of the port are analyzed. The evaluation results illustrate that the initial stability of the port is proportional to the non-redundant connections and independence of the port. Network location advantages profoundly affect the probability of port failures. The diffusion of port failures in maritime transportation is phased, and the network is adaptive to port disruptions and has high stability. These results contribute to better planning of maritime transportation routes and strategies for port calls by strategic planners of shipping companies.

Modeling the resilience of liner shipping network under cascading effects: Considering distance constraints and transportation time

The Liner Shipping Network (LSN) is a crucial component of the maritime supply chain (MSC) but remains susceptible to disruptions caused by natural disasters or emergencies, given its intricate structure and high level of interdependence. In this study, we present a novel cascading failure model that accounts for the heterogeneity of distances and transportation times between nodes, coupled with actual shipping lines. This comprehensive approach aims to thoroughly evaluate the resilience of the LSN. The study’s results reveal noteworthy variations in the cascading effects across diverse load distribution distances and transportation times. Furthermore, it delves into load distribution strategies to improve the resilience of the LSN and investigates the impact of capacity parameters on cascading effects. The results indicate that the distribution strategy proposed in this paper, integrating transportation time and redundancy levels, effectively suppresses the spread of cascading faults and improves network resilience. The outcomes of this research contribute to a deeper understanding of strategies for enhancing resilience and managing risks in shipping networks, providing valuable insights for management and decision-making in maritime operations.

Dynamic resilience analysis of the liner shipping network: From structure to cooperative mechanism

Liner shipping networks play a vital role in global and regional trade. However, they are susceptible to damage from unexpected interruptions, which can trigger dynamic cascading failures and undermine the system’s resilience. To address this challenge, we propose a novel cascading failure model for liner shipping networks that considers the characteristics of the network structure and port functions. First, we design two load redistribution methods that rely on network topology and employ a cooperative mechanism for coordination. This cooperative mechanism aims to balance the benefits for carriers and shippers by effectively controlling losses. Subsequently, we develop three metrics—network congestion rate, failure rate, and shipper loss—to assess the resilience of the network during cascading failures. To verify the impact of the cooperative mechanism, we apply the proposed methods to the China-Europe liner shipping network. Through simulations involving various port failures and resistance levels, we analyze the effectiveness of the cooperative mechanism. The results demonstrate that redistributing the load to downstream ports within the network effectively mitigates deep cascading failures. Additionally, the implementation of a port cooperative mechanism enhances resilience in the face of uncertainties by safeguarding crucial ports within the network and significantly reducing shipper losses. When port resistance is low, the cooperative mechanism reduces shipper losses by nearly half and lowers the average congestion rate. Although port reserve capacity can resist cascading failures, it falls short in the face of severe disruptions. In such cases, the cooperative mechanism compensates for capacity shortages, enhancing port resilience at a low cost. This study contributes to combating and minimizing cascading congestion in liner shipping networks, offering valuable insights for risk prevention and management strategies for ports and shipping companies. It also has implications for yield management and policy decisions from a network perspective.

Analysis of the Liner Shipping Network Structure of the Asia–Europe Main Trunk Route Using Social Network Analysis

Due to COVID-19, the shipping market has faced uncertainty, and the possibility of changes in port routes has increased. The purpose of this study was to analyze the network of container liner shipping routes between Asia and Europe. In particular, this research focused on a global risky situation—the COVID-19 pandemic. The data examined encompassed Asia–Europe route schedules from January 2018 to October 2021, which exhibited significant fluctuations due to the COVID-19 pandemic originating in 2019. To access this problem, utilizing concepts of centrality from social network analysis (SNA), namely degree centrality and betweenness centrality, this analysis incorporated route capacity as a weighted factor. The findings revealed that the port of Rotterdam held the highest degree of centrality in 2018, 2019, and 2021, while Shanghai claimed the highest degree of centrality in 2020. Singapore exhibited the highest betweenness centrality. Asian ports wielded greater influence during the COVID-19 pandemic compared to European ports. Furthermore, Singapore emerged as a pivotal mediator in the Asia–Europe routes, playing a significant role within the global supply chain. Results showed that the port could be put into an unstable situation. Therefore, the managers of port and shipping companies should be ready to minimize risk. From an academic perspective, it is difficult to integrate and analyze container liner schedules as they are monthly updated. This study therefore analyzed continuous schedules to examine dynamic changes in schedules. By adopting SNA, we presented changes in connectivity over multiple periods. This study addressed questions stakeholders may have had about route changes during the global crisis, contributing to sustainable container transportation. This study provides a general understanding of Asia–Europe container scheduling for decision makers. Using market schedules, this research analyzed the connections, and evaluated and compared each port.

Joint planning for fuel switching ships in a liner shipping network with transit time

Joint planning for fuel switching ships in a liner shipping network with transit time

A Unique Perspective on Vulnerability and Route Dynamics in the Global Liner Shipping Network

A Unique Perspective on Vulnerability and Route Dynamics in the Global Liner Shipping Network

Multi-Scale Higher-Order Dependencies (MSHOD): Higher-Order Interactions Mining and Key Nodes Identification for Global Liner Shipping Network

Liner shipping accounts for over 80% of the global transportation volume, making substantial contributions to world trade and economic development. To advance global economic integration further, it is essential to link the flows of global liner shipping routes with the complex system of international trade, thereby supporting liner shipping as an effective framework for analyzing international trade and geopolitical trends. Traditional methods based on first-order global liner shipping networks, operating at a single scale, lack sufficient descriptive power for multi-variable sequential interactions and data representation accuracy among nodes. This paper proposes an effective methodology termed “Multi-Scale Higher-Order Dependencies (MSHOD)” that adeptly reveals the complexity of higher-order interactions among multi-scale nodes within the global liner shipping network. The key step of this method is to construct high-order dependency networks through multi-scale attributes. Based on the critical role of high-order interactions, a method for key node identification has been proposed. Experiments demonstrate that, compared to other methods, MSHOD can more effectively identify multi-scale nodes with regional dependencies. These nodes and their generated higher-order interactions could have transformative impacts on the network’s flow and stability. Therefore, by integrating multi-scale analysis methods to mine high-order interactions and identify key nodes with regional dependencies, this approach provides robust insights for assessing policy implementation effects, preventing unforeseen incidents, and revealing regional dual-circulation economic models, thereby contributing to strategies for global, stable development.

Approximate dynamic programming for liner shipping network design

AbstractThe global containerised trade heavily relies on liner shipping services, facilitating the worldwide movement of large cargo volumes along fixed routes and schedules. The profitability of shipping companies hinges on how efficiently they design their shipping network; a complex optimization problem known as the liner shipping network design problem (LSNDP). In recent years, approximate dynamic programming (ADP), also known as reinforcement learning, has emerged as a promising approach for large-scale optimisation. This paper introduces a novel Markov decision process for the LSNDP and investigates the potential of ADP. We show that ADP methods based on value iteration produce optimal solutions to small instances, but their scalability is hindered by high memory demands. An ADP method based on a deep neural network requires less memory and successfully obtains feasible solutions. The quality of solutions, however, declines for larger instances, possibly due to the discrete nature of high-dimensional state and action spaces.

Liner shipping network vulnerability to component disruptions: A China-Europe container flow analysis

This study conducts a vulnerability analysis of the China-Europe liner shipping network, including all relevant liner shipping services and China Railway Express services. The standard multicommodity network flow model is extended to assess network vulnerability and the relative importance of ports and services by simulating container flow redistribution in various disruption scenarios. The results show the network is highly resilient to both individual port disruptions and individual service disruptions. Additionally, the distinct shipping network structures of the three shipping alliances result in varying degrees of vulnerability, highlighting the significance of diversified market suppliers in enhancing the overall network resilience. Specifically, the Ocean Alliance is vital in facilitating China-Europe trade, especially along the Mediterranean route, and is more resilient to individual port disruptions.

Liner shipping network design problem in modern transportation system of Russia

The liner shipping network design problem is considered in the paper. This problem is particularly relevant in the current global political and economic conditions, where finding optimal solutions for business becomes crucial for survival. State-of-the-art formulations and methods for solving the problem in domestic and international scientific papers are discussed. Four types of liner services such as simple service, “butterfly”, “pendulum” and complex service are described. A simple service that can be reduced to the traveling salesman problem is primarily focused on. Our own formulation of the problem is proposed and an example of liner shipping network description, based on the proposed formulation, is provided. In the example, presented in the paper, a container line, based on a single domestic seaport (Vladivostok) and four seaports in China, is demonstrated. It should be noticed, that the problem includes several optimization sub-problems (such as multi-commodity flow problem), solving which is important for finding best solutions for the designed shipping line, but is outside the bounds of this research. The liner services as a sequence of vessel calls to ports are described; and some results of the foregoing generation process are discussed. The optimal solution is selected from the set of generated solutions. It represents a particular case that simultaneously has the lowest costs for implementing the container line and the highest number of serviced container flows. It is noted that this solution is optimal only within the generated solution space and may not be optimal for the considered example of the problem.

Spatial heterogeneity among different-sized port communities in directed-weighted global liner shipping network

Global liner shipping network (GLSN) serves as the backbone of international commerce. In the context of the COVID-19 pandemic and regional integration, regionalization has become one of the dominant trends of the GLSN's structure. This study detected 27 practical relevant port communities within the directed-weighted GLSN using the Infomap algorithm. Based on the community structure of the GLSN, we identified the provincial, gateway, and connector hubs, considering the balance and intensity of the inbound and outbound shipping routes. To highlight the smaller communities obtained in this study, those practical relevant port communities are further differentiated into 7 large and 20 small port communities. The spatial heterogeneity among different-sized port communities is investigated regarding geographical distribution, topological properties, functional characteristics, etc. The large port community is typically formed in major trading regions with well-developed hub-and-spoke networks. They are the principal market in which most liner operators participate in it. Some small port communities lying along the main lane of seaborne container trades also play pivotal roles in the GLSN with many liner companies involved. While other small port communities located peripherally only connect to a few surrounding port communities. The spatial heterogeneity among different-sized port communities is mainly caused by the unbalanced distribution of seaborne container trades. These findings offer new insights into the community structure and its spatial heterogeneity within the GLSN, which can provide stakeholders with practical implications.

Ship schedule recovery with voluntary speed reduction zones and emission control areas

Liner shipping networks often experience disruptions, and shipping lines must implement certain recovery measures. However, environmental concerns have to be considered as well. The implementation of vessel speed reduction incentive programs (VSRIPs) provides monetary incentives to shipping lines for sailing speed compliance in the vicinity of certain ports but, in the meantime, increases delays, since the speed-up option could not be used to the same extent. There is a scarcity of research that focuses on effectively addressing the competing objectives that arise during ship schedule recovery and incorporates emission reduction policies at ports. This study introduces a new multi-objective approach for ship schedule recovery, considering the presence of VSRIPs, emission control regulations, and a variety of recovery options. A customized algorithm inspired by the principles of dynamic secant approximation and the ε-constraint algorithm is developed and validated through extensive computational experiments. Detailed sensitivity analyses provide thorough managerial insights as well.

External Cost-Benefit of Emission Control Routes between Korea and China Liner Shipping Networks

Purpose - International Maritime Organization (IMO) regulations on air pollution for the shipping industry have been strict, and various related policies and projects are being implemented internationally to demonstrate eco-shipping. This study aims to design a new scheme for eco-shipping, namely Emission Control Routes (ECR) regarding ship operations, and to estimate social, environmental, and economic benefits through its implementation.
 Design/Methodology/Approach - This study employed Kernel Density Estimation (KDE) analysis based on voyage segments to design the ECR domain. In addition, this analysis was conducted using data from the Automatic Identification System (AIS) for 1,728 port calls in liner shipping between Korea and China. Finally, the amount of external cost was estimated by scenario analysis, which set the speed limit within ECR waters at 10, 11, and 12 knots.
 Findings - The results found that if the ECR system is implemented in the liner service between Korea and China, social and environmental costs can be reduced by 26.17% - 40.61%, and ship operators can achieve cost savings of 45.07% - 66.99% in fuel costs.
 Research Implications - This study is crucial as it explores a new direction of air environment policy for the shipping industry, and analyzes the cost-effectiveness following the scenario condition for implementing the ECR strategy. In addition, political performance can be created synergistically when existing environmental policies have the potential for collaboration with the Emission Trading System (ETS).

Liner shipping network design model with carbon tax, seasonal freight rate fluctuations and empty container relocation

In response to the challenges posed by the shipping carbon tax resulting from the low-carbon environmental policy, the seasonal fluctuation of freight rates in the container liner shipping market, and the reduced flexibility in fleet adjustment, we develop a bi-level programming model to maximize the average revenue per container ship and the total revenue of the fleet.The upper-level model selects the optimal shipping networks for both the off-season and peak season, while also designing the liner fleet for these two networks. The lower-level model optimizes the slot allocation scheme and the empty container storage and transportation scheme to evaluate the revenue of the network calculated by the upper-level model. Three meta-heuristic algorithms are proposed. We take the China-West Europe liner shipping route as the research object, and conduct numerical experiments on different optimization objectives and liner types. Results demonstrate that maximizing the average revenue per container ship involves reducing the carbon tax cost, simplifying the trunk route structure, and increasing the number of feeder routes. These changes lead to reduced satisfaction rates for transportation demands in both China and Europe. If the company seeks to maximize total revenue, they may achieve the opposite result. Therefore, liner companies should reasonably set optimization goals, adjust the network structure and liner operation status in a timely manner, and scientifically allocate container ship and empty containers to achieve the operational goals of reducing carbon emissions and maximizing revenue to cope with the volatile market and the low-carbon regulations.

Integrated Planning of Feeder Route Selection, Schedule Design, and Fleet Allocation with Multimodal Transport Path Selection Considered

In the shipping network optimization, the feeder liner companies not only need to decrease the operation cost by comprehensively optimizing the route, schedule, and fleet but also try to increase the operation income by attracting more shippers, with multimodal transport-path selection considered. Therefore, this paper proposes the integrated planning of feeder route selection, schedule design, and fleet allocation with shippers’ transport-path selection considered. We utilize the nested Logit model to analyze the shipper selection behavior for the multimodal transport path and then formulate a mixed-integer nonlinear programming model of integrated optimization for route, schedule, and fleet. To solve our nonlinear model, we propose a particle swarm optimization (PSO) framework embedded with CPLEX solver by combining the constraint relaxations and the linearization techniques with the heuristic rules. Based on the multimodal transport system in Northern China, computational experiments were conducted to verify the effectiveness of our model and algorithm. The sensitivity analyses of model parameters show that with the increase in ship rent, feeder liner companies should reduce the ship capacity or try to increase the number of port call. With the increase in fuel price, feeder liner companies should reduce the ship speed under the constraints of the arrival-time window and schedule interval. If shippers’ time utility coefficient is high, feeder liner companies should shorten the sailing time of ships by decreasing the number of port calls or shorten the at-port time of ships by increasing the service frequency. If the multimodal transport paths are cost-advantaged or if the waterway transport time has a small impact on multimodal transport time, feeder liner companies should weigh the increase in income and cost when using the measures of time saving. These management insights provide decision support for the operation practice of liner shipping network optimization.

Alliance and network in maritime shipping industry

ABSTRACT This paper presents adiscussion of ways of designing atransport network by allied carriers for maritime shipping, specifically examining performance differences between hub–spoke (HS) and multiple-port-call (MPC) models. We explain, theoretically, the mechanisms of changing the liner shipping network configuration and the carrier alliances. The salient results indicate the following: (i) HS is more profitable for allied carriers than MPC is; (ii) allied carriers under HS, even if they deploy smaller ships, can have some margin to gain greater profits than under MPC. These findings imply that switching to HS from MPC can be accomplished not only by deploying mega-ships but also through business combinations such as alliances or mergers and acquisitions.

An adaptive heuristic for Feeder Network Design with optional transshipment

This paper studies the Feeder Network Design Problem (FNDP), which considers the design of a minimum cost liner shipping network for the transportation of cargo (containers) between a given hub port and a set of feeder ports. In addition to determining the services to operate (i.e., the routes), the FNDP deals with deciding the fleet of vessels to deploy on these services. In contrast to most FNDPs previously studied in the literature, the feeder network can, if found beneficial, be a hub-and-spoke system where cargo can be transshipped at any feeder ports. Thus, we denote our problem as the Feeder Network Design with Optional Transshipment (FND-OT). To solve the FND-OT, we propose a novel adaptive Heuristic with a special data structure for solution representation, which gives significant speed-ups. Furthermore, a new escape algorithm is used to escape from local optima. We show that the adaptive heuristic outperforms an existing solution algorithm in the literature on a set of realistic test instances. We also present results for a new set of instances adapted from a previously published benchmark suite (LINER-LIB) and show that including the possibility of having cargo transshipment in the FNDP can give significant benefits and reduced costs.

Two-Hop Biconnected Components in the Global Liner Shipping Network Reveal International Trade Statuses

Two-Hop Biconnected Components in the Global Liner Shipping Network Reveal International Trade Statuses