Liner ship fleet deployment with container transshipment operations

This paper proposes a liner ship fleet deployment (LSFD) problem with container transshipment operations. The proposed problem is formulated as a mixed-integer linear programming model which allows container transshipment operations at any port, any number of times, without explicitly defining the container transshipment variables. Experiments on the Asia-Europe-Oceania shipping network of a global liner shipping company show that more than one third (17-22 ports) of the total of 46 ports have transshipment throughputs. Computational studies based on randomly generated large-scale shipping networks demonstrate that the proposed model can be solved efficiently by CPLEX.     

Minimizing fuel emissions by optimizing vessel schedules in liner shipping with uncertain port times

We consider the problem of designing an optimal vessel schedule in the liner shipping route to minimize the total expected fuel consumption (and emissions) considering uncertain port times and frequency requirements on the liner schedule. The general optimal scheduling problem is formulated and tackled by simulation-based stochastic approximation methods. For special cases subject to the constraint of 100% service level, we prove the convexity and continuous differentiability of the objective function. Structural properties of the optimal schedule under certain conditions are obtained with useful managerial insights regarding the impact of port uncertainties. Case studies are given to illustrate the results.     

A novel modeling approach for the fleet deployment problem within a short-term planning horizon

This paper is concerned with model development for a short-term fleet deployment problem of liner shipping operations. We first present a mixed integer nonlinear programming model in which the optimal vessel speeds for different vessel types on different routes are interpreted as their realistic optimal travel times. We then linearize the proposed nonlinear model and obtain a mixed integer linear programming (MILP) model that can be efficiently solved by a standard mixed integer programming solver such as CPLEX. The MILP model determines the optimal route service frequency pattern and take into account the time window constraints of shipping services. Finally, we report our numerical results and performance of CPLEX on randomly generated instances.     

The effect of high fuel costs on liner service configuration in container shipping

For shipping activities, not least container shipping, bunker fuel is a considerable expense. In the last 5 years, bunker prices have risen considerably. An increasing bunker price in container shipping, especially in the short term, is only partially compensated through surcharges and will therefore affect earnings negatively. This paper deals with the impact of increasing bunker costs on the design of liner services on the Europe–Far East trade. The paper assesses how shipping lines have adapted their liner service schedules (in terms of commercial speed, number of vessels deployed per loop, etc.) to deal with increased bunker costs. The paper also includes a cost model to simulate the impact of bunker cost changes on the operational costs of liner services. The cost model demonstrates for a typical North Europe–East Asia loop that the current bunker prices have a significant impact on the costs per TEU even when using large post-panamax vessels. The model also shows shipping lines are reacting quite late to higher bunker costs. The reasons that explain the late adaptation of liner services relate to inertia, transit time concerns, increasing costs associated with fixing schedule integrity problems and fleet management issues.     

Sailing speed optimization for container ships in a liner shipping network

This paper first calibrates the bunker consumption - sailing speed relation for container ships using historical operating data from a global liner shipping company. It proceeds to investigate the optimal sailing speed of container ships on each leg of each ship route in a liner shipping network while considering transshipment and container routing. This problem is formulated as a mixed-integer nonlinear programming model. In view of the convexity, non-negativity, and univariate properties of the bunker consumption function, an efficient outer-approximation method is proposed to obtain an ε-optimal solution with a predetermined optimality tolerance level ε. The proposed model and algorithm is applied to a real case study for a global liner shipping company.     

A novel hybrid-link-based container routing model

Container routing determines how to transport containers from their origins to their destinations in a liner shipping network. Container routing needs to be solved a number of times as a subproblem in tactical-level decision planning of liner shipping operations. Container routing is similar to the multi-commodity flow problem. This research proposes a novel hybrid-link-based model that nests the existing origin-link-based and destination-link-based models as special cases. Moreover, the hybrid-link-based model is at least as compact as the origin-to-destination-link-based, origin-link-based and destination-link-based models in the literature.     

Study on China-EU container shipping network in the context of Northern Sea Route

The emerging Northern Sea Route (NSR) represents change to the existing liner network for China-EU container shipping. It is necessary to re-examine the container network in this context and assist liner companies in decision-making. This paper assesses the potential of the NSR based on designing a multi-port multi-trip liner service by establishing a two-stage optimization model. Based on the estimated data of NSR shipping, ship routing schemes on both the NSR and conventional routes are proposed. It is determined that container service along the NSR is largely influenced by ice-breaking charge, seasonality, and cargo volume, which makes NSR more likely to act as a supplementary line of the liner network in the short or medium term. The results also indicate that use of NSR may drive the redeployment of shipping network and hub ports in the long term. This study's conclusions may prove useful for strategic planning by liner companies, port authorities, and governments to assess the operation of liner service via the NSR.     

Exact and heuristic methods to solve the berth allocation problem in bulk ports

In this paper, we study the dynamic hybrid berth allocation problem in bulk ports with the objective to minimize the total service times of the vessels. We propose two exact methods based on mixed integer programming and generalized set partitioning, and a heuristic method based on squeaky wheel optimization, explicitly considering the cargo type on the vessel. The formulations are compared through extensive numerical experiments based on instances inspired from real bulk port data. The results indicate that the set partitioning method and the heuristic method can be used to obtain near-optimal solutions for even larger problem size.     

Multi-objective optimization for planning liner shipping service with uncertain port times

This paper considers a joint tactical planning problem for the number of ships, the planned maximum sailing speed, and the liner service schedule in order to simultaneously optimize the expected cost, the service reliability and the shipping emission in the presence of port time uncertainty. The problem is formulated into a stochastic multi-objective optimization problem at the operational level. The relationships between the objectives and the decision variables are established. A simulation-based non-dominated sorting genetic algorithm is then presented to solve this problem. A case study is provided to illustrate the results and the application of the model.     

Time efficiency assessment of ship movements in maritime ports: A case study of two ports based on AIS data

Operational efficiency of a maritime port is an important issue for shipping lines and port authorities. It is desirable to move ships in and out of a maritime port as efficiently as possible. Automatic identification system (AIS) data recording the trajectory of ship movements allow us to assess the operational efficiency as ships move in and out of a port. This study proposes a time efficiency assessment framework that evaluates the amount of time each ship spends in the different areas within a port (i.e., berth, anchorage, and fairway) based on the space-time trajectories of ship movements derived from AIS data. According to the statistical distributions of time spent by different types of ship in each port area, the proposed framework can compare time efficiency across different zones within a port and between different ports. This study uses AIS data of four types of ships (i.e., container, cargo, tanker, and passenger ships) at two selected ports in China, Shanghai Yangshan Port and Xiamen Port, to demonstrate how the proposed approach can effectively assess and compare time efficiency levels of ship movements between the times entering and leaving the vessel traffic service (VTS) lines of a port. This study demonstrates the value of deriving space-time trajectories from AIS data based on the concepts of time geography to assess time efficiency levels of maritime ports and monitor their performance over time, which offer useful information to both shipping lines and port authorities for operations such as efficient scheduling and logistic support.     

A strategic network choice model for global container flows: specification, estimation and application

Container flows have been booming for decades. Expectations for the 21st century are less certain due to changes in climate and energy policy, increasing congestion and increased mobility of production factors. This paper presents a strategic model for the movement of containers on a global scale in order to analyse possible shifts in future container transport demand and the impacts of transport policies thereon. The model predicts yearly container flows over the world’s shipping routes and passing through 437 container ports around the world, based on trade information to and from all countries, taking into account more than 800 maritime container liner services. The model includes import, export and transhipment flows of containers at ports, as well as hinterland flows. The model was calibrated against observed data and is able to reproduce port throughput statistics rather accurately. The paper also introduces a scenario analysis to understand the impact of future, uncertain developments in container flows on port throughput. The scenarios include the effects of slow steaming, an increase in land based shipping costs and an increased use of large scale infrastructures such as the Trans-Siberian rail line and the opening of Arctic shipping routes. These scenarios provide an indication of the uncertainty on the expected port throughputs, with a particular focus on the port of Rotterdam in the Netherlands.     

Berth allocation considering fuel consumption and vessel emissions

We propose a more elaborate model on berth allocation considering fuel consumption than before, and overcome the nonlinear complexity by casting it as a mixed integer second order cone programming model. Furthermore, we conduct the vessel emission (in sailing periods) calculation with the widely-used emission factors. Besides, vessel emissions in mooring periods are also analyzed through a post-optimization phase on waiting time. Experimental results demonstrate that the new berth allocation strategy, reflected by the proposed model, is competent to significantly reduce fuel consumption and vessel emissions, while simultaneously retaining the service level of the terminal.     

Levels of internationalization in the container shipping industry: an assessment of the port networks of the large container shipping companies

This paper examines the internationalization level of the world’s largest container shipping companies by examining their port networks. The results of our analysis show that only three of the nineteen companies could be considered as being truly ‘International’ and service the ‘lion’s share’ of the major and minor ports distributed across the globe. The port networks of the other companies in our survey, whilst having individualized features, shared common characteristics. Guided by the ‘Uppsala Model of Incremental Internationalization’ (Johanson and Vahlne, 1977), we were able to identify four internationalization levels of a container shipping company that are indicated by their port network.We argue that the port network plays an additional role as it contributes to the internationalization level of the container shipping companies. This is important because the internationalization level affects the container shipping company’s ability to expand its customer base both at a local and international level. Local customers would have access to a larger international destination network and international customers would be able access a larger local distribution network without transhipping between different companies.Amongst other issues, we were able to determine that, for the analyzed container shipping companies, ‘Internationalization’ of a port network means including or excluding ports in specific regions or sub-regions in their own network, and that a company’s home base or history plays a significant role in this development.     

Liner hub-and-spoke shipping network design

This paper proposes a liner hub-and-spoke shipping network design problem by introducing the concept of a main port, as well as some container shipping constraints such as multi-type container shipment and transit time constraints, which are seldom considered in the previous studies. It develops a mixed-integer programming model with nonconvex multi-linear terms for the proposed problem. An efficient genetic algorithm embedded with a multi-stage decomposition approach is developed to solve the model. Numerical experiments are carried out to assess the effectiveness of the proposed model and the efficiency of the proposed algorithm.     

Combined fleet deployment and inventory management in roll-on/roll-off shipping

In maritime transportation of automobiles, roll-on/roll-off (ro–ro) shipping companies operate liner shipping services across major trade routes. Large ro–ro shipping companies are well placed to offer end-to-end integrated logistics services to auto manufacturers engaged in international trade of vehicles. Therefore, we present a new mixed integer programming model for fleet deployment including inventory management at the ports along each trade route. Due to the complexity of the problem, a rolling horizon heuristic (RHH) is proposed. The RHH solves the problem by iteratively solving sub-problems with shorter planning horizon. Computational results based on real instances are presented.     

East Coast vs. West Coast: The impact of the Panama Canal’s expansion on the routing of Asian imports into the United States

Asian firms shipping to inland US points choose between West and East Coast ports. West Coast shipments often have lower transit times but higher freight charges. To investigate factors affecting this routing decision, a coast choice model is estimated. Results are then used to project shifts in demand with the coming completion of the Panama Canal expansion. Our simulations show that if the Panama Canal expansion generates significant transit time savings on shipments from Asia, as projected, that there will be major shifts in traffic from West to East Coast ports, raising important policy implications for port operators on both coasts.     

Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on East Asia

The study of ports in supply chain systems is an emerging area of importance which has drawn more attention from researchers in recent years. This paper presents a new perspective in this research area by examining the calling patterns of container shipping services in order to understand the dynamics of port connectivity and inter-port relationships in the supply chains. Empirical evidence is drawn from four major ports in East Asia, namely Shanghai, Busan, Kaohsiung and Ningbo. The study identifies the shipping capacity, trade routes and geographical regions connected to the ports, shipping lines involved, and the extensity and intensity of inter-port relationships among the four container ports from liner shipping network’s perspective. The findings show that most of the shipping capacity employed on the major east–west trade routes became non-exclusive and involved calls at two or more of the four ports. Port planners, terminal operators and carriers could capitalise on opportunities through exploitation of complementary relationships that exist among the selected ports, such as offering a package for shipping lines to call at a portfolio of terminals owned by the same terminal operator. Policy and research implications as well as recommendations are discussed for various stakeholders concerned with port planning and regional development.     

Eco-driving by replicating best driving practices

Some transit companies have reduced up to 25% of their fuel consumption by training their drivers on eco-driving. We propose to further reduce fuel consumption by using best driving practices, which consist of guiding drivers on the recommended ranges of vehicle speed and engine RPM that lead to minimum fuel consumptions. These recommendations are obtained by monitoring the engine operational parameters used by drivers who have shown the lowest fuel consumption while driving vehicles of similar technology and running on the same section of the road. To demonstrate the applicability of this alternative, we monitored a fleet of 15 transit buses of recent technology serving a ～72-km long route of general characteristics during eight months of normal operation. For each kilometer, trips with the lowest fuel consumption were selected, and their interquartile ranges of RPM and speed were obtained. Then, a well-trained driver in eco-driving traveled over the same road with same type of buses, using these recommended ranges. Using his eco-driving training, he obtained a 0.5% reduction in fuel consumption with respect to the average of the population, and by using the best driving practices, his savings increased up to 10.1%. These savings were linked to an increase in the average energy efficiency of the engine from 27.6% to 28.9%, which demonstrates that when drivers use these best driving practices, they tend to operate the engine under conditions closer to the load—RPM engine area of engine highest efficiency.     

Understanding hinterland service integration by shipping lines and terminal operators: a theoretical and empirical analysis

In the present competitive environment of ports, the key determinant in port competition is the ability of a port to be integrated into the local maritime and hinterland transportation chain. Creating effective integrated hinterland chains requires the coordination of several actors both in port and the hinterland. By making use of insights from Transaction Cost Economics and Resource-based View, the paper helps to understand why and how shipping lines and terminal operating companies enlarge their scope in intermodal transport and in inland terminals. The paper discusses a number of cases from the Hamburg–Le Havre range, where shipping lines and terminal operating companies have changed their scope of activities in ports and hinterland networks. After the theoretical and empirical analysis the papers draws conclusions on the explanatory power of the theories in understanding hinterland service integration by shipping lines and terminal operators.     

Port connectivity in a logistic network: The case of Bohai Bay,China

While traditional port literature uses origin and destination pairs in global shipping networks, recent developments of dry ports in the hinterland, feeder service networks, and heavy foreign trade traffic make the ports in Bohai Bay a unique case in the analysis of inter-port connectivity and competitiveness. Using an integrated port connectivity index to define the above features, the advantages and challenges of individual ports can be assessed in a dynamic interconnected environment. The model can provide unbiased port development strategies for each port to ensure long-term sustainability.