Container shipping route design incorporating the costs of shipping, inland/feeder transport, inventory and CO2 emission

Tran, Nguyen Khoi; Haasis, Hans–Dietrich; Buer, Tobias

doi:10.1057/mel.2016.11

Cited by 45 publications

(26 citation statements)

References 67 publications

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“…If an HR with a high handling productivity is requested by the liner shipping company at a given port of call, more equipment will be required for container handling operations, which will increase the amount of emissions produced. The amount of emissions produced at port p of port rotation r ( EP PORT rp ;r∈R; p∈P rtons) can be determined based on the quantity of containers to be handled at the port, the emission factor at the port ( EF PORT rphv ; r∈R; p∈P r ; h∈H rpt ; v∈Vtons of emissions/TEU), and the selected HR using the following relationship (Tran et al, 2017;Dulebenets, 2018c):…”

Section: Modeling Emissionsmentioning

confidence: 99%

“…The emission factor in sea (EF SEA ) was assumed to be 3.082 tons of carbon dioxide per ton of fuel (Psaraftis and Kontovas, 2013;Kontovas, 2014). On the other hand, the emission factor at ports was set to 0.01729 tons of carbon dioxide per TEU for the baseline handling productivity of 180 TEUs/hour (Tran et al, 2017). For the handling productivities other than the baseline handling productivity, the emission factor at ports was estimated as follows: EF PORT rphv ¼ 0:01729…”

Section: Input Data Descriptionmentioning

confidence: 99%

“…The unit inventory cost was set to c inv = 0.25 USD/TEU/hour. The unit emission cost (c emis ) was set to 32 USD/ton (Tran et al, 2017). Furthermore, the unit freight rate was set to c rev rp ¼ U½1; 000; 2; 5 00∀r∈R; p∈P r (USD/TEU).…”

Section: Input Data Descriptionmentioning

confidence: 99%

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Holistic tactical-level planning in liner shipping: an exact optimization approach

et al. 2020

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Effective liner shipping is important for the global seaborne trade. The volume of cargoes transported by liner shipping has been increasing over the past decades. Liner shipping companies face three levels of decision problems, including strategic, tactical, and operational problems. The tactical-level decisions are commonly made every three to 6 months. These decisions include: (1) port service frequency determination; (2) fleet deployment; (3) sailing speed optimization; and (4) vessel schedule design. Most of the concurrent liner shipping studies have addressed the tactical-level decision problems separately. Even though a few studies have proposed joint planning models that capture multiple decision problems at the same time, none of the conducted studies has integrated all the four tactical-level decision problems. To address this gap in the state-of-the-art, this study presents a holistic optimization model that addresses all the tactical-level liner shipping decision problems, aiming to maximize the total profit obtained from liner shipping services. The key route service cost components, found in the liner shipping literature, are considered in this study, which include: (1) vessel operational cost; (2) vessel chartering cost; (3) port handling cost; (4) port late arrival cost; (5) fuel consumption cost; (6) container inventory costs in sea and at ports of call; and (7) emission costs in sea and at ports of call. An exact optimization approach is adopted for the developed mathematical model. The computational experiments, conducted for a set of Asia-North America liner shipping routes, showcase the efficiency of the proposed approach and offer some important managerial insights.

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Section: Modeling Emissionsmentioning

confidence: 99%

Section: Input Data Descriptionmentioning

confidence: 99%

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Holistic tactical-level planning in liner shipping: an exact optimization approach

et al. 2020

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“…For example, a high handling productivity will require more handling equipment, and the quantity of emissions produced at ports will be increased. The quantity of emissions produced at ports ( , ∈ , ∈ tons) can be calculated based on the number of containers handled at a port, the emission factor at ports of call ( ℎ , ∈ , ∈ , ℎ ∈ , ∈tons of emissions/TEU), and the chosen HR, as follows (Tran et al, 2017;Dulebenets, 2018d):…”

Section: Emissions From Liner Shippingmentioning

confidence: 99%

A Holistic Optimization Model for Integrated Tactical Level Planning in Liner Shipping

Pasha¹

2020

Preprint

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Supply chain management plays an important role in ensuring an efficient merchandise trade. Freight transportation is an integral part of supply chain management. A significant part of freight transportation is covered by maritime transportation, as the largest portion of the global merchandise trade, in terms of volume, is carried out by maritime transportation. Liner shipping, which runs on fixed routes and schedules, plays a colossal role for the global seaborne trade. Liner shipping companies deal with three decision levels, namely strategic level, tactical level, and operational level. The strategic-level decisions are taken for more than six months to several years. The tactical-level decisions are effective for three months to six months. Moreover, the operational level decisions are taken for a couple of weeks to less than three months.This dissertation involves the tactical-level decisions in liner shipping, which include: (1) service frequency determination; (2) fleet deployment; (3) sailing speed optimization; and (4) vessel scheduling. The service frequency determination problem deals with determining the time headway between consecutive vessels along a liner shipping route. The fleet deployment problem assigns vessels from the liner shipping company’s fleet (and sometimes, from other liner shipping companies’ fleets) to liner shipping routes. The sailing speed optimization problem deals with selecting sailing speeds along different voyage legs of a given port rotation. The vessel scheduling problem lists the schedules (e.g., arrival time, handling time, departure time) at different ports.A comprehensive review of the liner shipping literature revealed that the existing literature on the tactical-level decisions focused on these problems individually. Solutions from different solution methodologies for the separate problems may have compatibility problems. Moreover, they are not attractive to the liner shipping companies, who look for integrated solutions. Hence, this research aimed to develop a combined mathematical model that comprises the four tactical-level decisions in liner shipping (i.e., service frequency determination, fleet deployment, sailing speed optimization, and vessel scheduling). This mathematical model is named the Holistic Optimization Model for Tactical-Level Planning in Liner Shipping (HOMTLP).The objective of the HOMTLP mathematical model is to maximize of the total profit from transport of cargo. The major route service cost components, found from the literature, are covered by the model, which include: (I) total late arrival cost; (II) total port handling cost; (III) total fuel consumption cost; (IV) total vessel operational cost; (V) total vessel chartering cost; (VI) total container inventory cost in sea; (VII) total container inventory cost at ports of call; (VIII) total emission cost in sea; and (IX) total emission cost at ports of call. Along with the integration of all four tactical-level decisions, the mathematical model has a number of key advantages. First, the model provides flexibility to both the liner shipping company and the marine container terminal operators, as it offers multiple time windows and handling rates at each port of call. Second, the payload carried by the vessels is considered while estimating fuel consumption. Third, the preference of customers is reflected by modification of the container demand at different sailing speeds. Fourth, container inventory is accounted for at ports of call and in sea. Fifth, emissions of different harmful substances are captured in order to preserve the environment.This dissertation carried out a set of numerical experiments to test the performance of the HOMTLP model, where BARON was used as the solution approach. It was revealed that when there was an increase in the unit fuel cost, the unit emission cost, vessel availability, the unit late arrival cost, and the unit freight rate, the sailing speed was reduced. On the other hand, when there was an increase in the unit inventory cost, the unit operational cost, as well as the unit chartering cost, the sailing speed was increased. Moreover, the total required number of vessels was increased, when there as an increase in the unit fuel cost, the unit emission cost, vessel availability, the unit late arrival cost, and the unit freight rate. On the contrary, the total required number of vessels was decreased, when there was an increase in the unit inventory cost, the unit operational cost as well as the unit chartering cost. It was also revealed that the total profit was increased, when more choices were available for time windows and/or container handling rates. The numerical experiments highlighted several other findings. Most importantly, it was found that the HOMTLP model can provide effective tactical-level decisions. Hence, the mathematical model can assist liner shipping companies to take tactical-level decisions, which are effective and profitable.

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“…Its operation greatly depends on the design of shipping networks, formed by various routes. There are many network issues, which have attracted much attention from the research community, for instance: network optimisation (Tran et al 2017;Chen, Zeng 2010); ship deployment (Lim 1994;Cullinane, Khanna 2000); network analysis (Ducruet 2013;Tran, Haasis 2014); regional shipping network (Fremont 2007;Robinson 1998). This article concentrates on operational patterns, an issue with little consideration in the market.…”

Section: Introductionmentioning

confidence: 99%

A Research on Operational Patterns in Container Liner Shipping

Tran

Haasis

2018

Transport

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This article studies operational patterns in container liner shipping with the emphasis on End-To-End (ETE), Round-The-World (RTW), and pendulum patterns. The first research issue deals with their deployment on designing shipping routes on the East-West corridor. The second issue compares their operational characteristics to realize their strength and weakness. The empirical work is carried out using 2074 route records of the top 20 shipping lines from 1995 to 2011. During the period, ETE was the dominant pattern. From 81 to 93% of the surveyed routes operated under this pattern. Pendulum was in favour in the early 2000s, but its use later declined. Round the world had been expected as an innovation in the industry but it was employed limitedly. An important feature of RTW and pendulum patterns is to include multiple trades on a single route, which can bring about the advantages of traffic bundling and less fleet requirement. On the other hand, multiple trades result in more complexity of these patterns, displayed through long voyage distance and time, a greater number of visited regions and more ports of call. Additionally, the deployment of mega vessels is also restricted due to traffic discrepancy between trade lanes.

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Container shipping route design incorporating the costs of shipping, inland/feeder transport, inventory and CO2 emission

Cited by 45 publications

References 67 publications

Holistic tactical-level planning in liner shipping: an exact optimization approach

Holistic tactical-level planning in liner shipping: an exact optimization approach

A Holistic Optimization Model for Integrated Tactical Level Planning in Liner Shipping

A Research on Operational Patterns in Container Liner Shipping

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