Functions and actors of inland ports: European and North American dynamics

The emergence of inland ports took place in several regions around the world, notably where the growth of inland freight distribution required a massification of flows. Yet, there is no definitive consensus about how such inland facilities should be labeled, with terms such as dry ports being advocated. It is suggested in the paper that the term inland port is a more appropriate construct since it considers terminal activities as well as the crucial logistics activities taking place in co-location or in proximity of inland terminals. This perspective requires the investigation of how transport and supply chain functions and the various actors involved in their setting and operations are taking shape in inland ports. Case studies pertaining to European and North American inland ports are presented. Although inland ports are planned, set and operated by a wide variety of actors, ranging from public to private interests, transport and supply chain functions tend to label them as satellite terminals, load centers or transmodal centers.     

A supply chain-transport supernetwork equilibrium model with the behaviour of freight carriers

This paper presents a supernetwork equilibrium model integrating supply chain networks with a transport network, namely, a supply chain-transport supernetwork equilibrium model. The model takes into account the behaviour of freight carriers and transport network users to endogenously determine the transport costs generated in the supply chain networks. The interaction between transport network and supply chain networks can also be examined. Results of the numerical tests reveal that the improvement of transport network could enhance the efficiency of supply chain networks. The paper makes contributions to modelling of supply chain networks as well as to that of transport networks.     

The role of airport proximity on warehouse location and associated truck trips: Evidence from Toronto,Ontario

This paper examines the two-way relationship between land use and transportation from the perspective of warehouses in the Toronto Census Metropolitan Area. A location choice model is first developed to reproduce the decision process of firms selecting suitable locations to operate warehousing facilities. The results highlight that transportation plays a prominent role in the location of warehouses with proximity to airport, highway infrastructure, and rail to a lesser extent. However, the proportion of industrial land use provides the largest role in the model suggesting that available land and zoning is the most important factor. This paper also studies the impact of warehouse location on freight transportation trips. The resulting analysis highlights that GPS derived trips arising from warehouses near a major airport in Toronto tend to travel 1.8 times further than trips pertaining to other warehouses in the region. This suggests that trips related to the airport are more likely to be connected to a larger supply chain process.     

Factors influencing cargo airlines’ choice of airport: An international survey

This paper identifies and evaluates the myriad of factors that influence the choice of airport by freighter-operating airlines. The findings are presented from an international postal survey of airlines operating freighter aircraft on a scheduled non-integrated basis. A number of factors such as night curfews, freight forwarders and airport charges are found to be influential and these are examined against a number of dependent variables such as the airline's home region and operational patterns in order to identify key variations.     

Supply chain network competition in price and quality with multiple manufacturers and freight service providers

In this paper, we develop both static and dynamic supply chain network models with multiple manufacturers and freight service providers competing on price and quality. The manufacturers compete with one another in terms of price and quality of the product manufactured, whereas the freight service providers compete on price and quality of the transportation service they provide for multiple modes. Both manufacturers and freight service providers maximize their utilities (profits) while considering the consequences of the competitors’ prices and quality levels. Bounds on prices and quality levels are included that have relevant policy-related implications. The governing equilibrium conditions of the static model are formulated as a variational inequality problem. The underlying dynamics are then described, with the stationary point corresponding to the variational inequality solution. An algorithm which provides a discrete-time adjustment process and tracks the evolution of the quality levels and prices over time is proposed, and convergence results given. Numerical examples illustrate how such a supply chain network framework, which is relevant to products ranging from high value to low value ones, can be applied in practice.     

Warehouse location problems for air freight forwarders: a challenge created by the airport relocation

The move of Hong Kong International Airport from the city centre to a suburban area in July 1998 provided sufficient capacity to meet the increasing demand of passenger and air-cargo flows in Hong Kong in the foreseeable future. However, the move has adverse side effects such as causing the readjustment of many existing systems and creating many imminent strategic problems. One of such problems is the warehouse location of freight forwarders: they have to decide whether they should locate their warehouses in the new airport, in current locations, or in new locations somewhere in the city. This paper delineates the results of a survey conducted in the summer of 1997 before the airport was relocated. The survey asked what decisions the freight forwarders had made and how they evaluated some potential warehouse locations. The paper also considers two mathematical models, which explain and predict, respectively, the location pattern of freight forwarder warehouses before and after the relocation of the airport.     

Segmenting industrial competitive markets: An example from air freight

This paper applies a disaggregated approach to segment industrial markets under competitive structures taking the air-freight market for the high-technology product industry in Taiwan as a case study. Data from firms is used to examine the structure of the air freight industry and we find that carriers are clustered into two strategic groups, express and forwarder. Pricing is a leading strategy recognized by customers for forwarders, whereas service punctuality and freight security are the winning strategies for express. The high-tech freight market is classifiable by shipment destination and size.     

A logistical perspective on the potential for modal shift of freight from road to rail in Great Britain

Freight modal shift from road to rail is a potential means by which the negative environmental and social impacts of transport can be reduced. This paper explores recent supply chain changes and assesses their impacts on the mode choice decision-making process, specifically addressing the implications for the use of rail. Despite many of the identified changes effectively making the use of rail more difficult, considerable evidence has been found of the potential for rail to attract new traffic. Much of the identified potential is unlikely to materialise, however, without improvements in rail network capability and capacity and a greater customer focus from rail freight operators.     

Bunkering competition and competitiveness at the ports of the Gibraltar Strait

This article provides an exploratory analysis from the perspective of the port operators of the factors that determine the competitiveness of fuel supply at the ports of the Gibraltar Strait (Bay of Algeciras, Gibraltar and Ceuta). The methodology is based on interviews and questionnaires focused on public and private institutions involved in the port services. The results reveal that fuel prices and geographical advantage are the two main factors seen by Gibraltar Strait port operators as influencing shipping company choice of bunkering port. In order of importance, other identified factors related to the cost and quality of services, including port tariffs, supply waiting time, service rates, simplicity of crew changing, presence of restrictive environmental regulations and customs strictness.     

The origin–destination airport choice for all-cargo aircraft operations in Europe

In this paper, we analyze the origin–destination airport choice for freighter operations of combination and all-cargo carriers in Europe. First, we discuss the choice process of airlines qualitatively. Next, using a stated choice experiment, we show that the presence of forwarders at an airport is the primary factor in explaining airlines’ choices, especially for airlines serving main airports. For airlines primarily serving regional airports, the possibility for night-time flights is most important. Finally, the presence of passenger operations at an airport is not a significant factor and the level of origin–destination demand is of limited importance.     

The impacts on freight train operational performance of new rail infrastructure to segregate passenger and freight traffic

Rail freight has an important role to play in improving the resource efficiency and sustainability of freight transport within the supply chain. The British rail network has seen considerable growth of both freight and passenger activity in the last 20 years, leading to concerns about its capacity to absorb continued growth. A number of infrastructure initiatives focused on increasing capacity and reducing conflicts have been implemented. This includes the North Doncaster Chord, opened in June 2014 primarily to provide a more direct route from the port of Immingham to the major Aire Valley power stations (i.e. Drax, Eggborough and Ferrybridge).The paper analyses the freight impacts of the new chord, focusing on three key operational measures (i.e. train routing, scheduled journey times and train punctuality) during 10-week survey periods before and after the opening of the chord. The analysis is based on real-time data relating to coal and biomass trains operating between Immingham and the three power stations. This is a novel approach as the data have been made publicly available only recently, allowing a detailed investigation of the flows on this corridor at a highly disaggregated level. The use of this empirical method to assess the detailed rail freight operational impacts is an important element in the process of evaluating the effects of network enhancement. The results demonstrate improvements in each of the three operational measures, but also reveal a situation considerably more complex than that suggested by the published material relating to the justification for this new infrastructure.     

Supply chain micro-communities in urban areas

An increase in urban freight transport is inevitable as growing urban populations require more goods, more conveniently. A deeper understanding of the geography and trends of urban freight transport must recognise that it is the aggregate result of a complex web of supply chain interactions. To understand the trends, the behaviour of the underlying supply chains must be understood. Using Global Positioning System (GPS) traces of commercial vehicles and network theory concepts, this paper examines the characteristics of supply chain micro-communities in three urban areas in South Africa. The similarity in the structure of these micro-communities across the three, very diverse, areas suggests that the dynamics that drive supply chain interaction are not dependent on local geography. Four prominent archetypes were identified that account for more than half of the micro-communities in each area. Directionality, geographic dispersion and the balance of importance in the micro-communities are studied in the context of these archetypes. This paper presents a first puzzle piece in deducing urban freight transport patterns from supply chain interaction. Furthermore the results are an empirical benchmark that can validate theoretic models of urban supply chain interaction.     

Valuation effects of mergers and acquisitions in freight transportation

This study investigates valuation effects of mergers and acquisitions in the freight transportation industry. It is found that mergers and acquisitions create synergistic gains, especially tender offers, consistent with the view that freight transportation mergers and acquisitions occur for synergistic reasons rather than management’s desire for empire building or perk consumption. Both target’s and bidder’s shareholders are better-off, but most of the synergistic gains accrue to the target’s shareholders. Targets’ valuation effects are greater for vertical rather than horizontal mergers, indicating a positive valuation for firms that control and manage a more extensive supply chain. The bidders’ wealth effects are greater for friendly mergers. Overall, the findings have important implications for professional practice and the development of the theoretical literature.     

A bilevel storage pricing model for outbound containers in a dry port system

Serving as a potential solution for seaport congestion and capacity limitation, dry port development is increasingly popular in the freight transport industry. This paper pioneers the research on dry port operations by modelling the storage pricing problem for outbound containers. The interaction between a dry port and multiple shippers is modelled as a bilevel program. The optimal properties of the proposed model under certain conditions are derived analytically, from which a closed-form solution is obtained. Contrary to intuition, the increase of container delivery frequency from shippers may lead to the reduction of dry port’s profit according to model outcomes.     

The effects of deregulation, changed customer requirements and new technology on the organisation and spatial patterns of the air freight sector in Europe

Customer requirements, new technologies and the deregulation and liberalisation measures of the last 15 years have had a significant influence on market structures in air freight transport in Europe. The study examines the sector using the concept of global production networks. It describes the reorganisation in various dimensions. Firstly, there is the development from single air freight forwarders to global networks of firms. Secondly, we find a reorganisation of inter-company relations. Thirdly, airlines around the world organise their air traffic as a hub system. This lends added importance to the selected hub airport, and puts pressure on them to enlarge. As spatial consequences there is greater competition among international airports.     

Industrial space demand and freight transportation activity: exploring the connection

There has been continuing interest among transportation planners, economic development specialists, and private industry about the relationship between the demand for industrial space and the level of freight transportation activity. With the growing importance of logistics and supply chain economics for many industrial and business activities, firms organizing their industrial activities and locating their warehousing and operational centers increasingly must consider the availability, quality, and cost of a range of transportation services, particularly in connection with essential intermodal activities. Accordingly, development of major logistics parks in conjunction with major intermodal hubs has become an important element in the overall industrial economy, predicated on the notion that robust freight activity is a good indicator of demand for industrial space. In this study, using regression techniques, we examine the relationship between freight transportation activity and industrial space demand at the metropolitan area level. The results confirm this relationship, reflecting significant statistical association between higher levels of freight traffic and higher levels of industrial space demand. This relationship is more pronounced in inland versus port markets. In addition, the data reveal that there was a shock to industrial space demand in 2001, thereby altering the structural relationship between demand and the drivers of demand.     

The potential of horizontal collaboration in airport ground freight services

Since the global economic crisis of 2007–2011, the increasingly dynamic and challenging air cargo market in Europe has forced freight forwarders to improve their performance. In addition to improving their internal transport efficiency, they have also started to look at previously unexplored opportunities for horizontal collaboration in landside airport transport. The aim of this study is to reveal the potential of air cargo transport collaboration on a horizontal level, i.e. between multiple freight forwarders within a single airport. Reviewing existing literature on horizontal collaboration, with a focus on the air cargo industry, we propose a conceptual framework for transport collaboration in the air cargo industry. Based on a comprehensive study on air cargo transport movements within Schiphol, using a simulation model based on company data of 10,747 shipments (6977 tons of cargo) for a period of 30 days, we find several interesting results. Our main finding is that horizontal collaboration can improve the transport performance, by maintaining a high frequency of transport movements and maintaining an acceptable throughput time for air cargo shipments, and at the same time reduce transport costs by up to 40%. For smaller freight forwarders, the frequency of transport deliveries can even increase, while still allowing them to improve the average load factor of transport movements.     

Choosing a port: An analysis of containerized imports into the US

Using a unique data set of individual shipments, port characteristics, and actual freight charges, we examined potential factors within management controls that affect the attractiveness of a port for containerized shipments. We hypothesized that the importance placed on each factor varies by the size of the shipper. We find support for our hypotheses that large shippers emphasize the factors affecting speed of delivery more than the freight charges compared to small shippers. These findings have managerial implications because investments in port development would pay off depending on the fit between the type of investment and the customers’ needs.     

Freight transport network design using particle swarm optimisation in supply chain–transport supernetwork equilibrium

This paper presents a discrete network design problem for optimally designing freight transport network in terms of the efficiency of supply chain. Modelling is undertaken within the framework of mathematical programmes with equilibrium constraints, which first incorporates both supply chain and transport networks explicitly. The upper level determines the best set of actions for transport network improvement, while the lower-level decision is based on a supply chain–multimodal transport supernetwork equilibrium. New variants of particle swarm optimisation are developed to approximately solve the upper level. Numerical tests reveal their superior performance and the effective freight transport-related actions.     

In-transit perishable product inspection

We determine the value of monitoring perishable freight in-transit for a single vehicle traveling from an origin to a destination. We develop a computationally practical approach for determining the optimal expected cost function and an optimal policy, based on an infinite horizon partially observed Markov decision process model. Structural properties of the optimal expected cost function and optimal policy are determined. These results can lend insight when deciding whether to acquire the capacity to monitor freight status in transit and what actions to take, based on the data from the in-transit monitoring, that optimally increase expected supply chain productivity.