Strategic maritime container transport design in oligopolistic markets

AbstractThis paper considers the maritime container assignment problem in a market setting with two competing firms. Given a series of known, exogenous demands for service between pairs of ports, each company is free to design a liner service network serving a subset of the ports and demand, subject to the size of their fleets and the potential for profit. The model is designed as a three-stage complete information game: in the first stage, the firms simultaneously invest in their fleet; in the second stage, they individually design their networks and solve the route assignment problem with respect to the transport demand they expect to serve, given the fleet determined in the first stage; in the final stage, the firms compete in terms of freight rates on each origin-destination movement. The game is solved by backward induction. Numerical solutions are provided to characterize the equilibria of the game

A multi-stage approach for empty container repositioning under coordination among linear carriers

This paper studies the empty container repositioning (ECR) problem considering the exchange of slots and empty containers among liner shipping companies. It is common for an individual shipping company to seek an optimal solution for ECR and cargo routing to maximize its own benefits. To achieve cooperation among shipping companies, a multi-stage solution strategy is proposed. With the inverse optimization technique, the guide leasing prices of slots and empty containers among shipping companies are derived considering the schedule of vessels and cargo routing. Based on the guide leasing price, a cooperative model is formulated to minimize the total cost, which includes the transportation cost for laden containers, the inventory holding cost, the container leasing cost, and the repositioning cost. All the involved shipping companies are expected to follow the best solution of ECR and cargo routing to achieve a cooperative and stable optimum. A real-world shipping network operated by three liner shipping companies is used as a case study with promising numerical results

Optimization in container liner shipping

We will give an overview of several decision problem encountered in liner shipping. We will cover problems on the strategic, tactical and operational planning levels as well as problems that can be considered at two planning levels simultaneously. Furthermore, we will shortly discuss some related problems in terminals, geographical bottlenecks for container ships and provide an overview of operations research methods used in liner shipping problems. Thereafter, the decision problems will be illustrated using a case study for six Indonesian ports

New Concept of Container Allocation at the National Level: Case Study of Export Industry in Thailand

This paper presents container allocation technique of which minimizing the total opportunity loss of an export industry in Thailand. This new allocation concept applies as a strategic management tools at the national level since it is consistent to the characteristics of the container supply chain management in Thailand. The first section of this paper presents the review of facts and problems of container supply chain management. It reveals that containerization system is significant to the international trade as it holds good characteristics of sea transportation. It can transport a lot of products while minimize the damage of goods. Supply chain management of the containerization system presents and shows that there are four main players in managing the container – principal, port, container depot, and customer. After an intensive review of containerization system’s problem, the most common problem that all parties have encountered is an imbalance between demand and supply of container. The well-known solution to the stated problem is relocation of containers between various places using optimization technique, which aims to minimize operation cost. Indeed, those solutions are unable solve the containerization system’s problem in Thailand: lacking their own fleets: having no bargaining power in relocating container between areas as needed. In the present, many of Thai exporters face with losses of sales or profit because they cannot find enough or proper containers to transport their goods to the customer. The authors, therefore, have seen that those problems need to be strategically solved by the government. The limited number of containers must be properly allocated to the exporter with regard to the minimum losses to the economics of the country. The main contributions of this paper are two folds. First, the opportunity losses of the various export industry are indicated when lack of containers, Second, the mathematical model has been formulated using linear programming technique with several constraints, such as, demand, supply, obsolete time, operating cost, lead time etc. The authors hope that the new concept presented in this paper will provide the great contribution for other countries, which face the same problem of Thailand. Keywords: Container Management, Opportunity Loss, Allocation Problem, Optimization, International Trad

Modelling the impact of liner shipping network perturbations on container cargo routing: Southeast Asia to Europe application

Understanding how container routing stands to be impacted by different scenarios of liner shipping network perturbations such as natural disasters or new major infrastructure developments is of key importance for decision-making in the liner shipping industry. The variety of actors and processes within modern supply chains and the complexity of their relationships have previously led to the development of simulation-based models, whose application has been largely compromised by their dependency on extensive and often confidential sets of data. This study proposes the application of optimisation techniques less dependent on complex data sets in order to develop a quantitative framework to assess the impacts of disruptive events on liner shipping networks. We provide a categorization of liner network perturbations, differentiating between systemic and external and formulate a container assignment model that minimises routing costs extending previous implementations to allow feasible solutions when routing capacity is reduced below transport demand. We develop a base case network for the Southeast Asia to Europe liner shipping trade and review of accidents related to port disruptions for two scenarios of seismic and political conflict hazards. Numerical results identify alternative routing paths and costs in the aftermath of port disruptions scenarios and suggest higher vulnerability of intra-regional connectivity