Reversing port rotation directions in a container liner shipping network |
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| Institution: | 1. ESSEC Business School, Cergy-Pontoise, France;2. Mathematical Institute of the Serbian Academy of Sciences and Arts, Belgrade, Serbia;3. PSL, Université Paris-Dauphine, Paris, France;4. Faculty of Transport and Traffic Engineering, University of Belgrade, Belgrade, Serbia;5. LCOMS, Université de Lorraine, Metz, France;1. Department of Business Technology and Operations, Vrije Universiteit Brussel, Brussels, Belgium;1. Department of People and Technology, Roskilde University, Universitetsvej 1, Roskilde 4000, Denmark;2. DTU Management, Technical University of Denmark, Akademivej 358, 2800 Kongens Lyngby, Denmark;3. Maersk Line, Esplanaden 50, Copenhagen K. 1098, Denmark |
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| Abstract: | Reversing port rotation directions of ship routes is a practical alteration of container liner shipping networks. The port rotation directions of ship routes not only affect the transit time of containers, as has been recognized by the literature, but also the shipping capacity and transshipment cost. This paper aims to obtain the optimal port rotation directions that minimize the generalized network-wide cost including transshipment cost, slot-purchasing cost and inventory cost. A mixed-integer linear programming model is proposed for the optimal port rotation direction optimization problem and it nests a minimum cost multi-commodity network flow model. The proposed model is applied to a liner shipping network operated by a global liner shipping company. Results demonstrate that real-case instances could be efficiently solved and significant cost reductions are gained by optimization of port rotation directions. |
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