An optimal containership slot allocation for liner shipping revenue management

In the competitive liner shipping market, carriers may utilize revenue management systems to increase profits by using slot allocation and pricing. In this paper, related research on revenue management for transportation industries is reviewed. A conceptual model for liner shipping revenue management (LSRM) is proposed and a slot allocation model is formulated through mathematical programming to maximize freight contribution. We illustrate this slot allocation model with a case study of a Taiwan liner shipping company and the results show the applicability and better performances than the previous allocation used in practice.     

A reactive container rerouting model for container flow recovery in a hub-and-spoke liner shipping network

This paper focuses on the container rerouting due to a disruption, aims at making the optimal container flow recovery plan for the affected liner shipping company. First, we make the initial effort to bring up with a basic framework of disruption management for liner shipping. Second, we present a compact integer linear programming model for addressing the container rerouting problem under the proposed framework in a hub-and-spoke liner shipping network, based on a given recovery vessel schedule that determines to omit a port of call. Other shipping companies’ services and other modes (roadway, railway, and airline) as candidate alternative means to transport the miss-connected containers are also incorporated in the proposed model. The container flow recovery plan would select the optimal alternative paths for the miss-connected containers balancing the trade-off between container transport costs and delivery delay penalty costs. Finally, a case study from a global liner shipping company is investigated and the computational results indicate the model can be solved effectively and efficiently for the real-scale problem. Thus, the proposed approach in this paper can supply real-time decision support tool for the liner shipping operators on handling the process of container flow recovery.     

Empty container reposition planning for intra-Asia liner shipping

This paper addresses empty container reposition planning by plainly considering safety stock management and geographical regions. This plan could avoid drawback in practice which collects mass empty containers at a port then repositions most empty containers at a time. Empty containers occupy slots on vessel and the liner shipping company loses chance to yield freight revenue. The problem is drawn up as a two-stage problem. The upper problem is identified to estimate the empty container stock at each port and the lower problem models the empty container reposition planning with shipping service network as the Transportation Problem by Liner Problem. We looked at case studies of the Taiwan Liner Shipping Company to show the application of the proposed model. The results show the model provides optimization techniques to minimize cost of empty container reposition and to provide an evidence to adjust strategy of restructuring the shipping service network.     

集装箱船舶大型化对中国班轮运输的影响

通过竞争情报分析提供了各班轮公司未来船队结构和运力的变化趋势,由此观察到各班轮公司为了降低自身的营运成本,在最近几年大量订购超巴拿马型甚至更大型的集装箱船舶参与运输,但是却不能达到其预期的规模效应。原因就在于相当一部分成本随着船型的增大而线性增加,规模不经济。我们探讨了中国的班轮运输市场的几个重要特点:中外贸易的不平衡导致了货源的不平衡;未来贸易结构的调整会影响航线的布局和调派;贸易上的不稳定因素使班轮公司遇到外在的风险。这些特点会深远地影响集装箱船舶大型化的经济受益,相反的,集装箱船舶大型化的趋势也会加剧这些负面的影响,危及整个班轮运输市场。     

集装箱班轮公司成本管理分析

与不定期船运输相比,班轮运输经营需要大量的资本投入,如何控制成本一直是班轮公司的核心问题。本文首先对班轮运输成本构成进行了分析,然后对当前各班轮公司为降低成本所采取的主要措施进行了介绍与分析,期望能对班轮公司的成本管理有所借鉴。     

A citation network analysis of sustainability development in liner shipping management: a review of the literature and policy implications

ABSTRACT

Based on an analysis of 253 related papers drawn from the Web of Science database, this study examines holistic sustainability research in liner shipping management literature using a citation network analysis (CNA) approach followed by a qualitative analysis of findings. We identify four major research domains, namely shipping performance, port selection and management, shipping markets, and environment, as well as related sub-domains of shipping performance. We discuss the current research trends and focal issues in these domains with a focus on their implications for policy development. Our results indicate that while the sustainability discourse in the literature has developed and matured significantly over the last decade, generating valuable insights for practitioners and regulators alike, it still struggles with blurry terminology and a lack of holistic frameworks jointly addressing the different aspects of sustainability: Economic considerations of liner shipping are still the main concern, while environmental and social issues are less regarded in the academic discourse. Furthermore, we identify a dearth of studies rooted in managerial or economic theory. In this regard, our study provides insights on the scope of the holistic sustainability discourse in liner shipping management, its contributions to theory and practice, and its implications for the further development of policies addressing sustainability in liner shipping management. We advocate further construct development for sustainability in liner shipping, as well as empirical tests of the antecedents of sustainability practice adoption in the industry for future research.     

Structure, conduct and performance on the major liner shipping routes 1

Market concentration on the major container shipping routes has the potential to reduce contestability, impede effective competition and, as a consequence, inhibit the positive relationship between trade and economic growth. This development could also hamper the ability of economic regions to realize their respective competitive and comparative advantages. Within this context, the structure-conduct-performance (SCP) framework is used to analyse liner shipping dynamics in the transpacific, Europe-Far East and transatlantic trade routes. The analysis finds no conclusive evidence that either the increased concentration of slot capacity or the attempts by shipping lines to boost potential slot capacity (mainly through collaborative arrangements) lead to improved financial performance. The paper concludes that, despite high and increasing concentration among carriers on each of the trade routes analysed, these markets remain contestable.     

Structure,conduct and performance on the major liner shipping routes 1

Market concentration on the major container shipping routes has the potential to reduce contestability, impede effective competition and, as a consequence, inhibit the positive relationship between trade and economic growth. This development could also hamper the ability of economic regions to realize their respective competitive and comparative advantages. Within this context, the structure-conduct-performance (SCP) framework is used to analyse liner shipping dynamics in the transpacific, Europe–Far East and transatlantic trade routes. The analysis finds no conclusive evidence that either the increased concentration of slot capacity or the attempts by shipping lines to boost potential slot capacity (mainly through collaborative arrangements) lead to improved financial performance. The paper concludes that, despite high and increasing concentration among carriers on each of the trade routes analysed, these markets remain contestable.     

赢得客户满意──全球化环境下的班轮运输及其对策

总结了目前国际班轮运输企业在全球经济一体化条件下的发展趋势，针对中国国有运输企业的特点，指出了中国班轮运输行业中存在的一些固有问题，并提出了相应的应对办法.     

Evaluating economic and environmental value of liner vessel sharing along the maritime silk road

The Belt and Road initiative is a novel exploration of China towards strategic collaboration with Eurasia countries to an extent of a larger scale with higher and deeper level of cooperation. To meet the growing global demand of transportation, increasing numbers of liner shipping companies collaborate and form alliances to share vessel capacity and reduce capital costs. Effective liner shipping vessel sharing is essential for the Belt and Road initiative in terms of building efficient maritime transport networks. In promoting environmental development, shipping companies are required to attain higher environmental standards. However, limited literature relates vessel sharing to environmental performance. This paper studies the impacts of liner vessel sharing from the economic and environmental perspectives. Two container allocation models are developed for the two scenarios: with and without vessel sharing. The carbon emissions in transportation are calculated under both scenarios. Numerical studies are carried out using services along the China-Indochina Peninsula Economic (CIPE) Corridor. Liner shipping companies could benefit from vessel sharing in terms of significant profit improvement. Vessel sharing could also benefit the environment by reducing the CO₂ emissions dramatically.     

A conceptual application of cooperative game theory to liner shipping strategic alliances

Since its advent, the liner shipping industry has been characterized by fierce competition and cooperation amongst the member carriers. In recent years, almost all the liners have sought extensive cooperation with others, as reflected mainly by the formation of strategic shipping alliances. Despite this, there are still some liners who prefer the 'go-it-alone' policy and have achieved relative success. It seems that cooperation is not always necessary for a liner company's success. It follows that a study that aims to find the rationale behind liner cooperation (or non-cooperation) is of great significance. Over many years of development, game theory has proved to be a useful tool in the study of economics. It is analytically applicable in this market. With these arguments in mind, this paper aims to apply cooperative game theory to analyse co-operation among members of liner shipping strategic alliances. This will involve: (i) presenting a detailed and systematic analysis of liner shipping strategic alliances: (ii) a concise overview of the development of game theory with specific focus on cooperative game theory, and (iii) deducing a conceptual framework through the application of cooperative game theory to liner shipping strategic alliances. The accomplishment of the aforementioned objectives will enhance understanding of inter-organizational relationships and decision-making behaviour in the liner shipping sector.     

A conceptual application of cooperative game theory to liner shipping strategic alliances

Since its advent, the liner shipping industry has been characterized by fierce competition and cooperation amongst the member carriers. In recent years, almost all the liners have sought extensive cooperation with others, as reflected mainly by the formation of strategic shipping alliances. Despite this, there are still some liners who prefer the ‘go-it-alone’ policy and have achieved relative success. It seems that cooperation is not always necessary for a liner company's success. It follows that a study that aims to find the rationale behind liner cooperation (or non-cooperation) is of great significance. Over many years of development, game theory has proved to be a useful tool in the study of economics. It is analytically applicable in this market. With these arguments in mind, this paper aims to apply cooperative game theory to analyse co-operation among members of liner shipping strategic alliances. This will involve: (i) presenting a detailed and systematic analysis of liner shipping strategic alliances: (ii) a concise overview of the development of game theory with specific focus on cooperative game theory, and (iii) deducing a conceptual framework through the application of cooperative game theory to liner shipping strategic alliances. The accomplishment of the aforementioned objectives will enhance understanding of inter-organizational relationships and decision-making behaviour in the liner shipping sector.     

Equality of bargaining power in contracts for international liner shipping

Mandatory rules exist in contracts for international liner shipping primarily because of imbalances and non-equity in the allocation of contract responsibilities. The superior bargaining position owned by the carriers depends largely upon liner market monopoly levels, the supply and demand balance between the shipper and carrier, and the cargo volume size of the shippers. With the development of shipping technologies, mode of transport, and shipping competition policy, the unequal comparison of bargaining forces between shippers and carriers changes. When the existing mandatory rule was deemed no longer necessary due to changing circumstances, legislation requirements to restore freedom to contract became apparent. When both sides have equal bargaining power, adoption of the principle of freedom of contract for their business relationships is suitable. The Rotterdam Rules concerning freedom of volume contract construction is based on equal bargaining powers between both sides and responds to the evolving situation of the industry. The Rules represent the development trend of today’s theory of contracts for international liner shipping and the demand for legal and institutional changes.     

我国集装箱班轮运输市场垄断程度研究

从市场集中度指数、市场力量和垄断行为3个方面考察我国国际集装箱班轮运输市场的垄断程度，显然高于将全球作为“一个”市场的程度。从市场集中度指数可以认为我国班轮运输市场已经达到中型寡头垄断程度。我国远洋班轮航线的勒纳指数高于0．6，甚至接近于1，说明班轮公司市场力量之强大。而我国现行的法律法规中没有为班轮运输市场的买方预设运价谈判和利益诉求机制，则使运输需求快速增长的中国外贸企业明显处于弱势地位。     

Short-term liner shipping bunker procurement with swap contracts

The bunker price fluctuations in recent years have severely threatened the stability of liner shipping companies’ operations. As an efficient countermeasure, the swap contract is widely adopted throughout the liner shipping industry to hedge the procurement risk resulting from the bunker price fluctuation. This paper looks at the short-term liner shipping bunker procurement problem with swap contracts (BPPSC), aiming to optimally plan the amount of bunker purchased from the spot market and the amount hedged by the swap contract for several months ahead. This BPPSC is first formulated as a bunker procurement cost mean-variance minimization (MVM) model, and is subsequently solved using a tangible two-step approach developed in this study. In the first step, the movements of the swap contract price and the spot market price of the bunker are described using a calibrated multivariate generalized autoregressive conditional heteroskedasticity (mGARCH) time series model. In the second step, the MVM model is approximated and solved by a price scenario tree constructed from the mGARCH time series model. A numerical example shows that the risk hedging strategy obtained can simultaneously control the bunker procurement cost as well as the procurement risk from price fluctuations. This article is a revised and expanded version of the abridged eight-page paper entitled ‘Optimal hedging for liner bunker procurement’ presented at ‘2015 International Conference on Logistics and Maritime Systems (LOGMS 2015)’, Hong Kong, 27–29 August 2015.     

Korean liner shipping in the era of global alliances

In the course of the last two decades Korean shipping has emerged as a major player in the liner market. In 1970 there was not a single container ship in the Korean fleet; yet, within the next two decades, shipping companies from Korea have become included among the top 10 liner operators in the world, in the context of a spectacular ascent of Asian companies in international container shipping. During the same period the organization of liner shipping itself underwent major changes. In the 1970s and 1980s, pools and powerful consortia prevailed, maximizing frequency and optimizing fleet deployment under pressure from the high investment entailed by containerization. The era of consortia, however, came to a close in the early 1990s; intermodalism and the expansion of the major liner companies into forward and backward segments of the transport chain rendered them inflexible for pursuing individual strategies of product diversification with a view to larger market shares. Global alliances were finally born as a result of a major reshuffling of co-operation agreements and of the globalization of the production process on the demand side. The aim of this paper is to follow and assess the options available to an aggressive low-cost national fleet in its journey to competitive maturity through a period of changing organization of liner shipping, focusing on the course of the leading Korean container company, and one of the largest in the world today, Hanjin. It highlights at the same time both the deep structural changes which liner shipping has undergone in the last two decades and the effects of current changes, such as the recent wave of mergers in this sector.     

Slow steaming of liner trade: its economic and environmental impacts

From 2000s, there have been three forces provoking slow steaming practice in the liner industry: (1) oversupply of shipping capacity, (2) increase of bunker price and (3) environmental pressure. This paper analyses the background and the recent application of slow steaming in liner shipping. The research looks into the questions of how slow steaming can save bunker consumption and bring benefits to the environment. On the other hand, solutions are also examined to the adverse side of slow steaming practice, i.e., how it affects the container transit time. For which, a cost model is developed to demonstrate the impact of slow steaming on the revenue change, with application to the North Europe—Far East Trade as a case study. The final result shows that the optimal speed for the shipowner is correlated with the designed speed, bunker price and the price of CO₂. With the increase of the bunker price and the price of CO_2, the optimal speed will also increase, which means that slow steaming practice has a positive impact on the environmental protection.     

A slot reallocation model for containership schedule adjustment

Ship slot capacity is the main sale resource of container shipping lines. However, shipping lines often encounter situations, such as serious ship delays, that require adjustments of shipping schedules, causing the original delivery plans of some consignments to be altered. This study proposes an integer programming model for slot reallocation planning, based on a given adjusted schedule. Decisions regarding empty container repositioning are also examined. This model aims to maximise a company’s benefits from deliveries of consignments and movements of empty containers. Available slots are subject to port rotation changes, allowable port handlings and ship capacity. A case study of a deep ocean loop demonstrates optimal slot reallocation, and empty container repositioning is used for illustrative purposes. The reallocation characteristics due to benefit items and the model’s applicability to large-scale examples are discussed.     

Tactical planning models for managing container flow and ship deployment

This paper addresses two practical problems from a liner shipping company, i.e. the container flow management problem and the ship deployment problem, at the tactical planning level. A sequential model and a joint optimisation model are formulated to solve the problems. Our results show that the company should implement the joint optimisation model at the tactical planning level to improve the shipping capacity utilisation rather than the sequential model used in the current practice. Repositioning empty containers also need to be considered jointly with the nonempty container flow at the tactical planning level. Some important managerial insights into the operational and business processes are gained.     

Optimal management of human resources in transhipment container ports

Human resources allocation plays a key role in transhipment maritime container terminals to achieve high levels of productivity and provide high quality services to shipping companies. The deep interest of container terminals in this issue can be supported by optimization methods. In this work, an optimization model is proposed to determine the optimal daily allocation of crane operators and trailer drivers. Different requirements are taken into account for permanent staff, external workers and personnel shortfall. Since workforce undermanning is a crucial factor for both shipping companies and container terminals, we aim to show that personnel shortfalls and operation delays can be significantly reduced if the model encompasses a longer-than-1-day planning horizon in a rolling horizon fashion.