Multi-criteria decision-making for complex bundling configurations in surface transportation of air freight

Airlines typically carry out freight transportation in a hub and spoke structure, where the movements between the outstations and the hub are served by trucks. To transport freight efficiently, air carriers must consider bundling options for shipments that are delivered at outstations and have to be moved to the hub. There are three options when it comes to bundling freight: on ‘through unit load devices’ (T-ULD) (all freight for the same flight at the hub), on ‘mixed unit load devices’ (M-ULD) (freight for different flights at the hub) and loose freight in trucks. The optimal freight bundling configuration for carriers, taking into account their main KPIs (key performance indicators), is unknown. This research formulates the problem as a multi-criteria decision-making (MCDM) problem, allowing carriers to decide which configuration is optimal for a given outstation. The selected KPIs (cost, (un)loading time, and quality) are formulated as mathematical functions. A new MCDM, called best worst method (BWM), is then used to identify the best configuration with respect to the three KPIs. The proposed methodology is applied to KLM Cargo to identify the best configuration for the selected outstations that supply freight to the KLM hub at Schiphol Airport. This case study shows that there are different optimal freight bundling configurations for different outstations and that trucking costs and freight handling tariffs are among the key factors in deciding which configuration is optimal.     

Towards the multimodal transport of people and freight: interconnective networks in the RheinRuhr Metropolis

RheinRuhr is an area where historic trade routes, national development corridors and European megacorridors all converge in a network of motorways. The settled area between Cologne, Duisburg and Dortmund is not itself a corridor, but a network of corridors. Transport bestows a unifying element in an area well known for nurturing local differences and distinctiveness. As a focal point of megacorridors, regional corridors and historic transit routes, can the RheinRuhr be a model for the region?     

Demand clustering in freight logistics networks

Demand clustering in freight logistics networks is an important strategic decision for carriers. It is used to incorporate new business to their networks, detecting potential economies, optimizing their operation, and developing revenue management strategies. A specific example of demand clustering is truckload combinatorial auctions where carriers bundle lanes of demand and price them taking advantage of economies of scope. This research presents a novel approach to cluster lanes of demand. Community detection is used to cluster the emergent network finding profitable collections of demand. Numerical results show the advantages of this method.     

Integration of the cost allocation in the optimization of collaborative bundling

A model is proposed that integrates a cost allocation method – the Shapley value – into the optimization of the synchronized consolidation of transportation orders. By balancing each partner’s delivery date changes (when synchronizing) against its allocated profit, it ensures that the operational plan is acceptable by all partners. In comparison to a model that first plans and then divides the costs, this model limits expensive delivery date changes and does not systematically favor a company with a slightly higher cost of change.     

The barge and rail freight market for export-bound grain movement from midwest to Mexican Gulf: an econometric analysis

An econometric model of the barge and rail freight market is developed so that factors which influence barge and rail rates for export-bound grain from Midwest to Mexican Gulf can be better understood. Three-stage least squares method is used to estimate the system of four equations that constitute the model. A number of identified factors turned out to be significant in determining grains rail and barge transportation rates. Given the interactive nature of supply and demand processes it is difficult to pinpoint a single most important factor. Yet it is clear that a substitute nature of the two transportation modes in addition to direct price-quantity relationship determine most of the transportation rates.     

Determining intra-urban spatial accessibility disparities in multimodal public transport networks

Urban rail systems have been added to public transport systems, thereby changing distribution disparities in urban spatial accessibility. These disparities reflect both the ability of the public transport system to meet the needs of residents and the locational pros and cons of public service facilities. In this paper, integrated accessibility metrics are used to assess the disparities in Nanjing, Jiangsu Province, China. This is achieved by dividing the urban space into a multilevel grid that can be easily combined with grid-based population data to facilitate accessibility modeling, calculation, and evaluation. Additionally, an acquisition method for more accurate travel time data in the multimodal public transportation network was developed on the basis of an Internet mapping service. This provides a realistic, multimodal, door-to-door modeling approach that avoids the requirement of building complex traffic networks through Geographic Information System (GIS) software and simplifies road network modeling efforts. The results show that this modeling method can be used to reflect the accessibility disparities in the Nanjing urban space objectively and accurately.     

Solutions to the request reassignment problem in collaborative carrier networks

The paper considers an arrangement for exchanging transportation requests to facilitate collaboration among independent carriers. The goal is to maximize the total profit without decreasing the individual profit of the carriers. Two solution approaches are developed for this problem involving decentralized control and auction based exchange mechanisms. The results are compared with those obtained without collaboration and by a centralized control. They indicate that horizontal collaboration pays off even in highly competitive environments.     

The non-bulk market for rail freight in Great Britain

An increased role for rail freight is an objective of the British government. Limited growth potential exists in rail’s traditional bulk markets, so more non-bulk volume is needed. This paper focuses on non-bulk rail freight activity in Britain, through desk-based research and company interviews. It considers changes in both the intermodal and traditional less-than-trainload (LTL) markets over the last decade. Issues relating to the use of these two types of services are presented, covering the principal opportunities and major constraints. Growth potential for both intermodal and traditional LTL flows is identified, but success is dependent upon important pre-requisites being satisfied.     

A meta-model for passenger and freight transport in Europe

On the basis of the outcomes of five disaggregate national models for passenger transport, four national models for freight transport and two European transport models, a fast and approximate meta-model for passenger and freight transport in Europe has been developed. The meta-model for passenger transport includes a detailed segmentation of the population, which makes it possible to investigate the impact of policies on many different groups of the population. The meta-model for passenger and freight transport has been applied for a reference scenario for 2020 and to simulate many elements of the European Commission's Common Transport Policy. These policy measures were also assessed in terms of the consequences on the internal and external cost of transport.     

Interregional trade network analysis for road freight transport in Greece

This paper suggests a flexible decision support framework for the strategic planning of a freight transport hub network in Greece. The proposed methodology treats practical aspects related to the optimal number, location and geographical covering of hubs, through the network analysis of interregional trade, based on original survey data for road freight flows during 2004–2012. The results offer insights into the hierarchical structure of the network and related investment priorities, as the hub role of a prefecture is found to be strongly influenced by high population densities and manufacturing specialization, and its location along highway corridors.     

A multi-level spatial-temporal model for freight movement: The case of manufactured goods flows on the U.S. highway networks

The spatial production, attraction, and movement of manufactured goods are vital to the economy of a region and country. The U.S. department of transportation also mandates to incorporate continuing and efficient freight movement and infrastructure into statewide and local long range planning. Studies on supply, demand, and transport of manufactured goods by firm, industry, mode, or commodity are vast in the logistics and supply chain literature. However, relatively sparse research is available on aggregated movement or freight on national, state, or local transportation networks. Better understanding and modeling freight movement on highway networks to facilitate local transportation, land use, economic development, and comprehensive planning is at the heart of freight research. Therefore, the major endeavors and novel contributions of this research include a conceptual framework proposed for freight movement research, a multi-level spatial-temporal freight model based upon the social optimum assignment for optimal “from”, “to”, “within”, and “through” freight flows of manufactured goods on the U.S. highway networks, and a set of performance measures designed to reveal states in terms of their competitive advantages in production, attraction, self-sufficiency, or cross-road. The freight flows were first visualized and highlighted by state at the U.S. level, then by county at the state level for Oklahoma, and finally by traffic analysis zone for the Tulsa metropolitan area. The spatial split of freight flows was accomplished through using freight, network, and demographic-economic databases at state, county, and zone scales.     

Searching for policy priorities in the formulation of a freight transport strategy: a canonical correlation analysis of freight industry attitudes

An efficient and effective freight transport strategy can be aided by early professional contributions from key stakeholders. One broad group who have historically been given limited opportunity to influence the drafting of a freight strategy, are commercial road users and shippers who manufacture and distribute goods. Utilising a data set collected in Australia in 1996 from a sample of organisations involved directly and indirectly in road freight transportation, views were sought on road infrastructure changes, new road infrastructure, non-road infrastructure needs and transport policies. An optimal scaling approach using non-linear canonical correlation is implemented to search for structural relationships between the underlying policy and infrastructure dimensions and the various industry categories. This framework provides a powerful mechanism for identifying differences among stakeholders in terms of their support for or opposition to specific policies. Results reveal the considerable differences in attitudes associated with the component parts of the freight industry.     

Localisation of freight consolidation centres serving small road hauliers in a wider urban area: barriers for more efficient freight deliveries in Gothenburg

This paper discusses the negative impacts of freight transport growth, especially in and around urban areas. Over time, a growing number of road freight vehicles have delivered less freight over longer distances, while average load factors have been reduced. This development is unsatisfactory, as transport capacity that could have been used more efficiently is lost. To mitigate negative impact, it has been suggested that freight consolidation and better planned localisation of freight consolidation centres (FCCs) would improve city logistics. Based on primary data, this paper investigates the potential to establish urban FCCs intended for small road hauliers (SRHs) delivering goods to the retail sector in a wider geographical area, the Gothenburg region in Sweden. While the findings show that a large majority of SRHs could reach potential FCC locations in a short time, congestion affects deliveries and several factors, many of which were observed already in the 1970s, restrict FCC establishments. Under present conditions, there is little scope for SRHs to successfully deliver goods to retailers in the Gothenburg region from FCCs; therefore, a more efficient urban transport system from a business or societal perspective is unlikely. Policy makers need to take into consideration the different segments, requirements, and characteristics of different cities before venturing into costly FCC projects.     

Flagging out in road freight transport: a strategy to reduce corporate costs in a competitive environment: Results from a longitudinal study in Austria

Following the example of maritime transport, the relocation of fleets abroad – referred to as flagging out – has become an important cost reduction strategy for road freight transport companies. Particularly after the EU Eastern Enlargement in 2004, many Austrian road freight transport companies took advantage of both the freedom of services and the lower costs in New Member States. This paper shows the results of four waves of surveys of Austrian road hauliers, describing developments, attitudes, motives and impacts of the phenomenon. There is also a discussion about the significance of the problem, which was seldom referred to in the scientific literature.     

Towards collaborative, intermodal hub networks: A case study in the fast moving consumer goods market

Collaborative hub networks can provide an answer to the need to decrease logistics cost and maintain logistics service levels by shifting consolidated flows to modes that are better suited for handling large volumes (rail, barge, coastal shipping), so economies of scale can be obtained. This necessity has been increased by the tendency of globalization of industries, smaller shipments sizes, high frequencies, and the fragmentation of flows. Through collaboration the necessary synchronization between expensive but fast and flexible means of transport and inexpensive, but slow and inflexible means can be combined in an intermodal hub network. This paper shows the rationale behind these collaborative hub networks, based on the literature on the design of many-to-many hub networks. The resulting methodology is explained through presenting the results of the design and implementation of collaborative hub network for the distribution of fast moving consumer goods using a combination of trucking and inland barges. This concept, first proposed by Vermunt [Vermunt, A.J.M., 1999. Multilognet, the intelligent multimodal logistics network, an important node in the worldwide logistics net, Vermunt Logistiek Advies v.o.f., working paper (in Dutch)], won the European Intermodal Award of the European Intermodal Association in 2003, and after extensive research was launched in The Netherlands as a commercial pilot by logistics service provider Vos Logistics and barge operator Riverhopper in January 2004.     

New SP-values of time and reliability for freight transport in the Netherlands

This paper discusses the methods used in a study on the values of time and reliability in freight transport in the Netherlands. SP surveys were carried out among more than 800 shippers and carriers. A novel feature is that both for the value of time and reliability two additive components are distinguished: a transport cost and a cargo component. Specific instructions were given to make sure that the carriers provide the former and shippers that contract out the latter component. The resulting values that will be used in CBA in The Netherlands are presented and compared against the international literature.     

An agent based model concept for assessing modal share in inter-regional freight transport markets

This paper introduces an Agent based modelling approach to model inter-urban freight transport between two or more trading regions. The use of the model is to ascertain the modal share of competing transport modes (road and intermodal) while taking complex transport service supply–demand dynamics into account. It is structured by modules describing company generation, supplier choice, modal competition and International road freight transport market dynamics. The behaviour of individual actors is simulated using normative agent behaviour and market knowledge. Using the micro-simulation approach, shippers and carriers (primarily road hauliers and a maritime based intermodal operator) interact through simulated contracts resulting in the generation of tours. The service performance of the tours is fed back into the model for decision making during contract deliberations. Preliminary application of model to Mediterranean case study show that market share gains of around 25–30% are obtained with policy interventions of financial subsidies to intermodal services and more frequent shipping services in the intermodal transport respectively.     

A time-period choice model for road freight transport in Flanders based on stated preference data

This paper presents one of the first models explaining the choice of time-period in road freight transport. Policies that would shift some fraction of the trucks from peak to earlier and later periods will contribute to the reduction of congestion. Therefore there is an increasing interest in modelling the time-period sensitivity of road freight transport to changes in travel time and cost by period. The model developed here is based on a stated preference survey amongst receivers of goods in Flanders and was implemented in the strategic freight transport model of the Flemish authorities.     

Demand for cargo airships: An analysis of mode choice decision making in the freight transport industry

Despite their potential, cargo airships currently remain a theoretical concept. This research aims to examine the factors determining the demand for their services from the perspective of transport logistics professionals. An online freight mode choice experiment is conducted, supplemented with follow-up semi-structured interviews. Across freight types the sensitivity of the modes (road, rail, sea and airship) to the attributes (price, time, reliability and frequency) varied substantially. Willingness to pay for the cargo airship mode for travel time saved is estimated to be $23/tonne/hour. It is conservatively estimated that the potential market share of cargo airships in the Australian domestic freight market varies across airship models with LMH-1 having the lowest market share of 8% while ARH50 has the largest potential market share at 25%.