Optimal Shipping Decisions in an Airfreight Forwarding Network

This thesis explores three consolidation problems derived from the daily operations of major international airfreight forwarders. First, we study the freight forwarder's unsplittable shipment planning problem in an airfreight forwarding network where a set of cargo shipments have to be transported to given destinations. We provide mixed integer programming formulations that use piecewise-linear cargo rates and account for volume and weight constraints, flight departure/arrival times, as well as shipment-ready times. After exploring the solution of such models using CPLEX, we devise two solution methodologies to handle large problem sizes. The first is based on Lagrangian relaxation, where the problems decompose into a set of knapsack problems and a set of network flow problems. The second is a local branching heuristic that combines branching ideas and local search. The two approaches show promising results in providing good quality heuristic solutions within reasonable computational times, for difficult and large shipment consolidation problems. Second, we further explore the freight forwarder's shipment planning problem with a different type of discount structure - the system-wide discount. The forwarder's cost associated with one flight depends not only on the quantity of freight assigned to that flight, but also on the total freight assigned to other flights operated by the same carrier. We propose a multi-commodity flow formulation that takes shipment volume and over-declaration into account, and solve it through a Lagrangian relaxation approach. We also model the "double-discount" scheme that incorporates both the common flight-leg discount (the one used in the unsplittable shipment problem) and the system-wide discount offered by cargo airlines. Finally, we focus on palletized loading using unit loading devices (ULDs) with pivots, which is different from what we assumed in the previous two research problems. In the international air cargo business, shipments are usually consolidated into containers; those are the ULDs. A ULD is charged depending on whether the total weight exceeds a certain threshold, called the pivot weight. Shipments are charged the under-pivot rate up to the pivot weight. Additional weight is charged at the over-pivot rate. This scheme is adopted for safety reasons to avoid the ULD overloading. We propose three solution methodologies for the air-cargo consolidation problem under the pivot-weight (ACPW), namely: an exact solution approach based on branch-and-price, a best fit decreasing loading heuristic, and an extended local branching. We found superior computational performance with a combination of the multi-level variables and a relaxation-induced neighborhood search for local branching

Cargo/Logistics Airlift System Study (CLASS), Volume 1

Current and advanced air cargo systems are evaluated using industrial and consumer statistics. Market and commodity characteristics that influence the use of the air mode are discussed along with a comparison of air and surface mode on typical routes. Results of on-site surveys of cargo processing facilities at airports are presented, and institutional controls and influences on air cargo operations are considered

An analysis of the implementation of horizontal collaboration to enhance performance in the logistics industry

This thesis examines the extent to which horizontal collaboration is being undertaken in the logistics industry, the different ways horizontal collaboration is being implemented in the logistics industry and the performance enhancements that can be achieved by logistics companies through horizontal collaboration partnerships. Research into the subject of horizontal collaboration has only in the past 5 years gained enough momentum and support to become a topic in its own right, rather than a footnote to research on vertical collaboration. For this reason existing research on the topic has been confined to a small number of areas and very little literature exists on comparing the performance enhancements of different types of horizontal collaboration. This research involved a large-scale survey to investigate general patterns and perceptions of horizontal collaboration in the logistics industry and following that a number of case studies were undertaken to gain in-depth knowledge of how horizontal collaboration can be successfully undertaken. The results from these were then developed into a set of guidelines which can be used by logistics companies implementing horizontal collaboration by providing information on issues such as problems that can be addressed using horizontal collaboration, necessary partner requirements, necessary internal requirements, duration and formality of the collaboration, benefits, risks and obstacles for each of the four main types of horizontal collaboration being undertaken in the logistics industry. Horizontal collaboration was found to be a wide-spread practice in the UK Logistics industry across companies of all sizes and types. The most common form of horizontal collaboration is ‘shared services’, however, ‘joint ventures’ are perceived to be the most effective form of collaboration

CAPM-β of Carriers and Consolidators in Liner Shipping: Volume Contracts under the Rotterdam Rules in Perspective

Liner shipping, which provides transportation by ships operating on a regular schedule between specified ports in accordance with publicly available timetables of sailing dates, is now a mature industry. The various players which are part of the liner shipping industry, namely, ocean carriers, port operators, freight forwarders or consolidators, customs, hinterland haulage carriers, inland navigation carriers, market regulators, etc., are increasingly interdependent on each other leading to inter-industry partnership. The recent global financial crisis has led to better vertical and horizontal cooperation among the ocean carriers and the nodal service providers in the liner shipping industry. However, some of the major liner carriers are yet to post profits as the freight rates were severely affected during the crisis. Amidst this evolving market environment, the liner shipping industry which used to be highly regulated through the conference system has witnessed the emergence of the contract paradigm of free bargaining norms where there is in place a service contract as promulgated under the Shipping Act of 1984 and the Ocean Shipping Reform Act of 1998 in the United States (US). The uniqueness of individual contracts between shippers and carriers has now been recognized in the US through these Acts for almost three decades. This uniqueness, it would appear, has influenced the development of the volume contract concept in the newly adopted convention called the Rotterdam Rules and has provided the impetus for introducing bargaining freedom in carriage of goods wholly or partly by sea. The thesis analyses the various economic and financial implications associated with the bargaining freedom under volume contracts through estimation and drawing the time-varying systematic risk, β in the liner shipping industry by using Kalman filters and relate the estimated path of β to market changes during 1980–2013, depending on availability of data. To interpret the market environment in the liner shipping industry, the focus is on two points. The first is that the introduction of policies for promoting competition increases β, and the second is that an increase in market power due to cooperation and concentration among firms reduces β. The result of the analysis is varied across jurisdictions showing a certain degree of dependence on the position of national or regional legislation in which the liner shipping company is operating. The thesis also attempts to view the volume contract concept from a particular vantage point, namely, the perspective of the shipper, who in the present world trade scenario is often a non-traditional entity such as a logistics service provider, freight forwarder or consolidator. Global players in the consolidation business like DHL and UPS along with a section of the liner shipping carriers, equipped with state of the art information technology, has opened up a new era of cooperation in the liner shipping business with capacity-based pricing, time-based pricing, and service-based pricing. It is submitted that the introduction of volume contracts will enable these consolidation companies to take advantage of the freedom of contract in expanding their business within the mature liner shipping industry thereby creating value for themselves as well as for small and medium shippers. It is notable in this context that consolidators licensed in the US were allowed service contract parity through the NVOCC Service Arrangements (NSA) rule in December 2004, when dealing with their shipper-customers. However, there were certain tariff publication requirements which did not allow consolidators to reap the full benefit of the NSA rule. In February 2010, the publication requirements were relaxed creating a new wave of opportunity for consolidators. The financial analysis therefore includes estimation and drawing the β in the consolidation business by using Kalman filters and relate the estimated path of β to market changes during the period 1988–2013, depending on availability of data, depicting the growing business opportunity for these nodal service providers who are an important part of the liner shipping industry. The commercial viability of volume contracts with regard to the liner shipping industry is presented in conclusion which also reflect the viewpoints of the authors

Cargo Logistics Airlift Systems Study (CLASS). Volume 1: Analysis of current air cargo system

The material presented in this volume is classified into the following sections; (1) analysis of current routes; (2) air eligibility criteria; (3) current direct support infrastructure; (4) comparative mode analysis; (5) political and economic factors; and (6) future potential market areas. An effort was made to keep the observations and findings relating to the current systems as objective as possible in order not to bias the analysis of future air cargo operations reported in Volume 3 of the CLASS final report

Английский язык : учебно-методический комплекс для студентов специальности 1-70 04 03 «Логистика»

Построен по модульно-блочному принципу. Включает разнообразные тексты и задания к ним, грамматические упражнения, словарь терминов. Может быть использован как во время самостоятельной подготовки студентов, так и во время аудиторных занятий. Предназначен для студентов специальности «Логистика»

Air cargo forecast at Logan, Boston, Massachusetts through the year 2000

Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 1980.MICROFICHE COPY AVAILABLE IN ARCHIVES AND ROTCH.Includes bibliographical references.by Alan Chat-Fun Eng.M.C.P