Hub-and-spoke network design for container shipping along the Yangtze River |
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| Affiliation: | 1. Transportation Management College, Dalian Maritime University, Dalian 116026, China;2. Department of Logistics & Maritime Studies, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong;1. Canada Excellence Research Chair in Data Science for Real-Time Decision-Making, Polytechnique Montreal, GERAD and CIRRELT, Canada;2. Institute of Transport Logistics, TU Dortmund University, Germany;3. Fakultät für Mathematik, TU Dortmund University, Germany |
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| Abstract: | Increasingly large, high-tonnage containerships are becoming a common sight on the Yangtze River, and the shipping network is being transformed accordingly. This paper reports the design of a hub-and-spoke network for a shipping company that is consistent with the characteristics of the Yangtze River. We first explore the economies of scale for container shipping by applying empirical data. Next, we propose a mixed-integer linear programming model, factoring in ship-operating and container-handling costs. We then conduct a numerical experiment and test the effectiveness of the model, and finally discuss the implications of hub-and-spoke shipping network design. The findings reported herein support the trends toward cargo concentration and port regionalization along the Yangtze River. |
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