A cost-based maritime container assignment model

A recently proposed frequency-based maritime container assignment model (Bell et al., 2011) seeks an assignment of full and empty containers to paths that minimises expected container travel time, whereas containers are in practice more likely to be assigned to minimise expected cost. A cost-based container assignment model is proposed here. It is assumed that routes and service frequencies are given so ship operating costs are also fixed. The objective is to assign containers to routes to minimise container handling costs, container rental and inventory costs. The constraints in the model are extended to include route as well as port capacities. It is shown that the problem remains a linear program. A numerical example is presented to illustrate the properties of the model. The paper concludes by considering the many applications of the proposed maritime container assignment model.     

How do economies of density in container handling operations affect ships’ time and emissions in port? Evidence from Norwegian container terminals

Efficient port services are prerequisites for competitive and sustainable maritime transports. This paper makes advances in studying the determinants of the time that ships spend in port and the associated emissions to air. We estimate a production model for cargo handling based on a unique dataset containing each port of call at the largest container terminals in Norway in 2014. In turn, we use auxiliary engine emission factors to estimate particulate matter and nitrogen oxide emissions from ships at berth, to determine how the corresponding damage costs of air pollution vary with container throughput, location, and terminal investments. We find that Norwegian container terminals operate under increasing returns to density. Small ships that unload few containers are far from reaping economies of density, leading to high marginal time requirements for container handling and consequently high marginal external costs. From a Pigouvian taxation perspective, port charges should therefore be regressive in the number of containers handled. Moreover, we find that the external costs of maritime transports are severely understated when port operations are ignored. Our model allows determining the marginal productivities of port facilities. Thereby, it is instrumental in designing port charges that are diversified according to the quantity of containers handled and the service quality (i.e., the speed of handling operations). Regarding contextual factors, we find that establishing high-frequent liner services improves the ship working rate, while simultaneous calls at a terminal impede productivity. The type of container (loading/unloading; empty/laden) also appears to influence the duration of ship working.     

Container liner fleet deployment: A systematic overview

Container liner fleet deployment (CLFD) is the assignment of containerships to port rotations (ship routes) for efficient transport of containers. As liner shipping services have fixed schedules, the ship-related operating cost is determined at the CLFD stage. This paper provides a critical review of existing mathematical models developed for the CLFD problems. It first gives a systematic overview of the fundamental assumptions used by the existing CLFD models. The operating characteristics dealt with in existing studies are then examined, including container transshipment and routing, uncertain demand, empty container repositioning, ship sailing speed optimization and ship repositioning. Finally, this paper points out four important future research opportunities: fleet deployment considering ship surveys and inspections, service dependent demand, pollutant emissions, and CLFD for shipping alliances.     

Cluster analysis of the competitiveness of container ports in Brazil

The container cargo proportion of total maritime transport increased from 3% in 1980 to 16% in 2011. The largest Brazilian port, the port of Santos, is the 42nd largest container port in the world. However, Santos’ performance indicators are much lower than those of the world’s largest ports, so comparisons with them are difficult. This article focuses on the Brazilian container terminals that handled containers in 2009 and compares port competitiveness. This study classified seventeen Brazilian container terminals into three distinct groups based on the following competitiveness criteria: number of containers handled, berth length, number of berths, terminal tariffs (in US$), berth depth, rate of medium consignment (in containers/ship), medium board (containers/hour), average waiting time for mooring (in hours/ship), and average waiting time for load or unload cargo (in hours/ship). This classification used a hierarchical cluster analysis. The classification shows that the terminal of Tecon in the port of Santos has the best performance of all, while small terminals (<150,000 container units) are the worst performing terminals in Brazil.     

Essential elements in tactical planning models for container liner shipping

Tactical planning models for liner shipping problems such as network design and fleet deployment usually minimize the total cost or maximize the total profit subject to constraints including ship availability, service frequency, ship capacity, and transshipment. Most models in the literature do not consider slot-purchasing, multi-type containers, empty container repositioning, or ship repositioning, and they formulate the numbers of containers to transport as continuous variables. This paper develops a mixed-integer linear programming model that captures all these elements. It further examines from the theoretical point of view the additional computational burden introduced by incorporating these elements in the planning model. Extensive numerical experiments are conducted to evaluate the effects of the elements on tactical planning decisions. Results demonstrate that slot-purchasing and empty container repositioning have the largest impact on tactical planning decisions and relaxing the numbers of containers as continuous variables has little impact on the decisions.     

Reversing port rotation directions in a container liner shipping network

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.     

Green vehicle technology to enhance the performance of a European port: A simulation model with a cost-benefit approach

In this paper, we study the impact of using a new intelligent vehicle technology on the performance and total cost of a European port, in comparison with existing vehicle systems like trucks. Intelligent autonomous vehicles (IAVs) are a new type of automated guided vehicles (AGVs) with better maneuverability and a special ability to pick up/drop off containers by themselves. To identify the most economical fleet size for each type of vehicle to satisfy the port’s performance target, and also to compare their impact on the performance/cost of container terminals, we developed a discrete-event simulation model to simulate all port activities in micro-level (low-level) details. We also developed a cost model to investigate the present values of using two types of vehicle, given the identified fleet size. Results of using the different types of vehicles are then compared based on the given performance measures such as the quay crane net moves per hour and average total discharging/loading time at berth. Besides successfully identifying the optimal fleet size for each type of vehicle, simulation results reveal two findings: first, even when not utilising their ability to pick up/drop off containers, the IAVs still have similar efficacy to regular trucks thanks to their better maneuverability. Second, enabling IAVs’ ability to pick up/drop off containers significantly improves the port performance. Given the best configuration and fleet size as identified by the simulation, we use the developed cost model to estimate the total cost needed for each type of vehicle to meet the performance target. Finally, we study the performance of the case study port with advanced real-time vehicle dispatching/scheduling and container placement strategies. This study reveals that the case study port can greatly benefit from upgrading its current vehicle dispatching/scheduling strategy to a more advanced one.     

Multi-period yard template planning in container terminals

This paper is about yard management in container ports. As a tactical level decision-making tool in a port, a yard template determines the assignment of spaces (subblocks) in a yard for arriving vessels, which visit the port periodically. The objective of yard template planning is to minimize the transportation cost of moving containers around the yard. To handle yard template planning, a mixed integer programming model is proposed that also takes into account traffic congestion in the yard. A further complication is that the cycle time of the vessels' periodicities is not uniform and varies among them, perhaps being one week, ten days, or two weeks, etc. However, this multiple cycle time of the periodicities of vessel arrival patterns, which complicates the yard template decision, is also considered in the model. Moreover, a local branching based solution method and a Particle Swarm Optimization based solution method are developed for solving the model. Numerical experiments are also conducted to validate the effectiveness of the proposed model, which can save around 24% of the transportation costs of yard trucks when compared with the commonly used First-Come-First-Served decision rule. Moreover, the proposed solution methods can not only solve the proposed model within a reasonable time, but also obtain near-optimal results with about 0.1–2% relative gap.     

Liner container seasonal shipping revenue management

This paper proposes a liner container seasonal shipping revenue management problem for a container shipping company. For a given weekly multi-type shipment demand pattern in a particular season, the proposed problem aims to maximize the total seasonal shipping profit by determining the number of multi-type containers to be transported and assigned on each container route, the number of containerships deployed on each ship route, and the sailing speed of containerships on each shipping leg subject to both the volume and capacity constraints of each containership. By adopting the realistic bunker consumption rate of a containership as a function of its sailing speed and payload (displacement), we develop a mixed-integer nonlinear programing with a nonconvex objective function for the proposed liner container seasonal shipping revenue management problem. A tailored branch and bound (B&B) method is designed to obtain the global ε-optimal solution of the model. Numerical experiments are finally conducted to assess the efficiency of the solution algorithm and to show the applicability of the developed model.     

Modeling of yard congestion and optimization of yard template in container ports

As a tactical-level plan, a yard template determines the assignment of spaces in a container port yard for arriving vessels. This paper investigates the concept of yard congestion quantitatively in the context of yard truck interruptions, and develops a combination of probabilistic and physics-based models for truck interruptions. The above work enables us to exactly evaluate the expected link travel time, which then acts as the basis for proposing a mixed-integer programming model that minimizes the total expected travel time of moving containers around the yard. A Squeaky Wheel Optimization based meta-heuristic is developed to solve the model. Experiments are also conducted to validate the effectiveness of the model and the solution method.     

Liner container assignment model with transit-time-sensitive container shipment demand and its applications

This paper proposes a practical tactical-level liner container assignment model for liner shipping companies, in which the container shipment demand is a non-increasing function of the transit time. Given the transit-time-sensitive demand, the model aims to determine which proportion of the demand to fulfill and how to transport these containers in a liner shipping network to maximize the total profit. Although the proposed model is similar to multi-commodity network-flow (MCNF) with side constraints, unlike the MCNF with time delay constraints or reliability constraints that is NP-hard, we show that the liner container assignment model is polynomially solvable due to its weekly schedule characteristics by developing two link-based linear programing formulations. A number of practical extensions and applications are analyzed and managerial insights are discussed. The polynomially solvable liner container assignment model is then applied to address several important decision problems proposed by a global liner shipping company.     

Challenges in Managing Empty Container Movements at Multiple Planning Levels

Empty container management deals with repositioning empty containers at minimum costs while fulfilling empty container demands. Due to imbalances in trade, some areas have a surplus of empty containers, while others have a shortage. Therefore, empty containers need to be repositioned globally to make sure that sufficient empty containers are available everywhere. Besides, empty containers need to be repositioned regionally between shippers, consignees, inland depots, terminals and ports in order to fulfil demand. In this paper, the focus is on the empty container management problem at a regional level. The problem is described in detail and opportunities for reducing empty container movements are discussed. Decisions to be taken at each planning level (strategic, tactical and operational) are described, and for each planning level, a detailed overview of planning models proposed in the literature is presented. Planning models considering decisions at several planning levels are discussed as well. Finally, interesting opportunities for future research are identified.     

The Impact of Container Type Diversification on Regional British Port Development Strategies

Abstract

Despite a concentration of container traffic in the southeast of the UK over the last few decades, regional ports are attempting new development strategies to capture or retain specific traffic segments. These include intra-European short-sea traffic and a potentially increasing feeder market. These trends are reflected in the movement of different container types, which result in a number of planning challenges related to changing infrastructural and operational requirements. This paper uses highly disaggregated data on container type movements to address three issues that can inform these planning challenges. First, the imbalance of trade resulting in empty container repositioning; second, the requirement for gauge-cleared rail routes to cater for the increasing proportion of high-cube containers; and third, the specialisation of European short-sea traffic at secondary UK ports. The results reveal the disproportionate repositioning of empty containers at Scottish ports and the importance of 45?ft, high-cube and pallet-wide containers at regional ports, highlighting their focus on intra-European short-sea traffic and raising difficulties relating to their lower quality of landside infrastructure (particularly rail) in comparison to the large south-eastern ports. The potential repercussions on hinterland infrastructure development raise questions about both public and private sector responses to regional port development.     

Effects of demurrage and detention regimes on dry-port-based inland container transport

Increase of congestion at container deep seaports and shortage of capacity has led inland transport systems worldwide to rely more and more on inland terminals, and on the use of high capacity modes of transport to generate economies of scale and reduce negative effects of trucking. In this setting, planning the transport of maritime containers between a deep seaport and a final inland destination must also consider due dates and soft time windows, the latter known as Demurrage and Detention (D&D). In this paper, we formalize the concept of D&D, model the multimodal planning problem, and assess the impact of different D&D regimes on the emerging inland transport systems. By means of an experimental framework, we compare different D&D policies and provide managerial insights. The experiments highlight the effects of existing D&D regimes on transport efficiency and provide guidelines for their choice in practice. D&D are shown to have a twofold effect: first to limit consolidation opportunities and force the use of trucks as buffer, and second to push containers to dwell unnecessarily at the seaports.     

Charting a New Paradigm of Container Hub Port Development Policy: The Asian Doctrine

This paper proposes the conceptual model of the Asian (Port) Doctrine to explain the successful development of top ranking container ports in Asia during the past four decades. This paper draws a new paradigm for the role of government as a third governance approach in addition to Anglo-Saxon and European doctrines by describing how Asian countries have developed container hub ports by investing in infrastructure as social overhead capital to support export-led growth. We survey characteristics and outcomes in major Asian container port developments and one European port in terms of a port development policy. The findings are presented in a comparative overview of government investment in functional elements of port, maritime infrastructure and landside connections to container ports. This paper confirms that the existing two doctrines—Anglo-Saxon and European doctrines—are not sufficient to explain the Asian success in major container port developments. The proposed framework contends that a newly proposed Asian Doctrine can accomplish this with the help of cross-subsidization, strategic and administered port pricing mechanism.     

Profit-based maritime container assignment models for liner shipping networks

We propose the problem of profit-based container assignment (P-CA), in which the container shipment demand is dependent on the freight rate, similar to the “elastic demand” in the literature on urban transportation networks. The problem involves determining the optimal freight rates, the number of containers to transport and how to transport the containers in a liner shipping network to maximize the total profit. We first consider a tactical-level P-CA with known demand functions that are estimated based on historical data and formulate it as a nonlinear optimization model. The tactical-level P-CA can be used for evaluating and improving the container liner shipping network. We then address the operational-level P-CA with unknown demand functions, which aims to design a mechanism that adjusts the freight rates to maximize the profit. A theoretically convergent trial-and-error approach, and a practical trial-and-error approach, are developed. A numerical example is reported to illustrate the application of the models and approaches.     

Traffic consolidation in East Asian container ports: A network flow analysis

The proliferation of hub-and-spoke operations in maritime container transportation has resulted in the widespread consolidation of traffic flows. Utilising liner shipping network configurations, this paper assesses the impact of freight traffic consolidation in the container port industry by exploring the spatial pattern of traffic flow movements and identifying the variety of roles that container ports play within this context. On the basis of the network concept, the spatial inequality of freight traffic consolidation is determined by the density and direction of all meaningful connections (i.e. significant flows) identified by applying Multiple Linkage Analysis (MLA) to an initial traffic flow matrix.The effectiveness of the chosen methodology is tested empirically using a sample comprising the 18 major container ports in East Asia, together with another 21 important container ports located on the East–West trading route. Based on this sample network, the spatial structure of traffic flow consolidation reveals the nature and structure of hub-and-spoke operations within a port system, the relative hub-dependence of ports, the variety of roles which individual ports play within the overall structure of inter-port interactions and the hierarchical configuration of the port industry structure. The paper concludes that MLA offers new insights into the distributional inequality of traffic flows, the spatial and economic interactions between ports and the extent to which hinterlands overlap. Furthermore, the analysis clearly shows that inter-port relationships can no longer be evaluated as isolated phenomena; any change in a specific port’s competitiveness will directly impact upon the structure of the whole maritime transportation system. Port authorities and terminal operators will need, therefore, to carefully analyse and disentangle specific inter-port relationships in order to provide the most appropriate basis for their decision making.     

The multi-port berth allocation problem with speed optimization and emission considerations

The container shipping industry faces many interrelated challenges and opportunities, as its role in the global trading system has become increasingly important over the last decades. On the one side, collaboration between port terminals and shipping liners can lead to costs savings and help achieve a sustainable supply chain, and on the other side, the optimization of operations and sailing times leads to reductions in bunker consumption and, thus, to fuel cost and air emissions reductions. To that effect, there is an increasing need to address the integration opportunities and environmental issues related to container shipping through optimization. This paper focuses on the well known Berth Allocation Problem (BAP), an optimization problem assigning berthing times and positions to vessels in container terminals. We introduce a novel mathematical formulation that extends the classical BAP to cover multiple ports in a shipping network under the assumption of strong cooperation between shipping lines and terminals. Speed is optimized on all sailing legs between ports, demonstrating the effect of speed optimization in reducing the total time of the operation, as well as total fuel consumption and emissions. Furthermore, the model implementation shows that an accurate speed discretization can result in far better economic and environmental results.     

The container retrieval problem with respect to relocation

The demand for container terminal yards is growing significantly faster than the supply of available land; therefore, containers are typically stacked high to better utilize the land space in container yards. However, in the process of container retrieval, non-productive reshuffling may be required to relocate the containers that are stacked on top of the target container. Container retrieval is directly related to the operational efficiency of terminals. Because the industry has become increasingly competitive, it has become critical to introduce a systematic approach to retrieving containers. In this study, we develop a heuristic that can generate feasible working plans for rail-mounted gantry cranes (RMGC) in container yards to minimize the number of container movements while taking the RMGC working time into consideration. The methodology takes into consideration the case that containers are grouped in terms of their retrieval order. Multi-lift RMGC models also are studied. Comprehensive numerical experiments reveal that the method runs faster than other methods published in the literature by several orders of magnitude; additionally, our method is able to solve instances larger than practical use. The number of movements approaches a theoretical lower bound, and the numerical results clearly demonstrate the tradeoff between the number of movements and the working time, and provide useful insights for yard planning.     

The impact of job assignment rules for straddle carriers on the throughput of container terminals

Straddle carriers represent a critical resource in the handling of containers within a container terminal. It is essential that they are deployed in an as efficient manner as possible. The research presented in this paper is motivated by the need to critically evaluate job assignment rules for straddle carriers that operate in a multiple straddle environment. This is achieved by developing a discrete event simulation model using industrial simulation software to model a container terminal located in Melbourne, Australia. The model accounts for variables such as the number of straddle carriers needed, the speed of straddle carriers, the arrival rate of trucks, and the job assignment rule. A principal finding of the study is that increasing the number of straddles in the present set‐up from 6 to 7 has a negligible effect on daily throughput. However, an increase in the number of straddles to 7 is expected to have a profound effect on reducing the average waiting time of trucks within the terminal from over 16 minutes to under 9 minutes, a decrease of 46.5%. However, a further increase in the number of straddles results in no further increase in daily throughput. It was observed that the throughput of the terminal is very sensitive to the speeds at which straddles travel. The management of the terminal has proposed a new heuristic job assignment rule for straddles, because the present rule does not assign the jobs to straddles closest to the truck requesting to load or unload a container. As a result a new heuristic job assignment rule was tested. The simulation results revealed that both the old and new rules performed equally well using performance indicators such as average container flow time, daily throughput, average waiting time of jobs, number of jobs in the queue, and straddle utilisation. Therefore, the new rule will not improve these performance measures if implemented