An epsilon-optimal algorithm considering greenhouse gas emissions for the management of a ship’s bunker fuel

This paper provides an algorithm to minimize the fixed ordering, purchase, and inventory-carrying costs associated with bunker fuel together with ship time costs; and environmental costs associated with greenhouse gas emissions. It determines the optimum ship speed, bunkering ports, and amounts of bunker fuel for a given ship’s route. To solve the problem, we use an epsilon-optimal algorithm by deriving a property. The algorithm is illustrated by applying it to typical sample data obtained and the effects of bunker prices, carbon taxes, and ship time costs on the ship speed are analyzed. The results indicate that the ship speed and CO₂ emissions are highly sensitive to the factors considered.     

Optimal planning of liquefied natural gas deliveries

We investigate the problem of designing an optimal annual delivery plan for Liquefied Natural Gas (LNG). This problem requires determining the long-term cargo delivery dates and the assignment of vessels to the cargoes while accommodating several constraints, including berth availability, liquefaction terminal inventory, planned maintenance, and bunkering requirements. We describe a novel mixed-integer programming formulation that captures important industry requirements and constraints with the objective of minimizing the vessel fleet size. A peculiar property of the proposed formulation is that it includes a polynomial number of variables and constraints and is, in our experience, computationally tractable for large problem instances using a commercial solver. Extensive computational runs demonstrate the efficacy of the proposed model for real instances provided by a major energy company that involve up to 118 cargoes and a 373-day planning horizon.     

Short-term planning of liquefied natural gas deliveries

The ability of a supplier of liquefied natural gas (LNG) to deliver cargoes at desired times, while effectively managing a fleet of cryogenic vessels can significantly impact its profits. We investigate in this paper an LNG short-term delivery planning problem by considering mandatory cargoes as well as optional cargoes to select, along with the scheduling of a heterogeneous vessel fleet with controllable cruising speeds. Several technical constraints are accommodated including time windows, berth availability, bunkering restrictions, inventory, liquefaction terminal storage capacity, maximum waiting time, and planned maintenance restrictions. The objective is to maximize the net profit.We propose a mixed-integer programming formulation that includes a polynomial number of variables and constraints and accommodates all of the problem features. Also, we describe an optimization-based variable neighborhood search procedure that embeds the proposed compact formulation. To assess the quality of the generated solutions, we propose a second valid formulation with an exponential number of decision variables and we solve its linear programming relaxation using column generation. We provide the results of extensive computational results that were carried out on a set of large-scale set of realistic instances, with up to 62 vessels and 160 cargoes, provided by a major LNG producer. These results provide evidence that the proposed improvement procedure yields high-quality solutions.     

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.     

Forecasting bunker prices; A nonstationary,multivariate methodology

This paper suggests a methodological approach for the forecasting of marine fuel prices. The prediction of the bunker prices is of outmost importance for operators, as bunker prices affect heavily the economic planning and financial viability of ventures and determine decisions related to compliance with regulations. A multivariate nonstationary stochastic model available in the literature is being retrieved, after appropriate adjustment and testing. The model belongs to the class of periodically correlated stochastic processes with annual periodic components. The time series are appropriately transformed to become Gaussian, and then are decomposed to deterministic seasonal characteristics (mean value and standard deviation) and a residual time series. The residual part is proved to be stationary and then is modeled as a Vector AutoRegressive Mooving Average (VARMA) process. Finally, using the methodology presented, forecasts of a tetra-variate and an octa-variate time series of bunker prices are produced and are in good agreement with actual values. The obtained results encourages further research and deeper investigation of the driving characters of the multivariate time series of bunker prices.     

Routing and scheduling of RoRo ships with stowage constraints

Roll-on/Roll-off ships are used for international transport of vehicles and other rolling equipment. We consider the problem where a ship sails between two geographical regions, picking up cargo in the first and making deliveries to the second. Several variations are considered with optional cargoes, flexible cargo quantities, and ship stability restrictions. Decisions must be made regarding the route and schedule of the ship as well as the stowage of cargo onboard. The problem is modeled as a mixed integer program, which has been solved using Xpress. In addition, a tailor made heuristic procedure is built using components from tabu search and squeaky wheel optimization. Extensive computational results are presented, showing that the heuristic is able to handle realistically sized problem instances.     

Design and development of a hybrid ant colony-variable neighbourhood search algorithm for a multi-depot green vehicle routing problem

The traditional distribution planning problem in a supply chain has often been studied mainly with a focus on economic benefits. The growing concern about the effects of anthropogenic pollutions has forced researchers and supply chain practitioners to address the socio-environmental concerns. This research study focuses on incorporating the environmental impact on route design problem. In this work, the aim is to integrate both the objectives, namely economic cost and emission cost reduction for a capacitated multi-depot green vehicle routing problem. The proposed models are a significant contribution to the field of research in green vehicle routing problem at the operational level. The formulated integer linear programming model is solved for a set of small scale instances using LINGO solver. A computationally efficient Ant Colony Optimization (ACO) based meta-heuristic is developed for solving both small scale and large scale problem instances in reasonable amount of time. For solving large scale instances, the performance of the proposed ACO based meta-heuristic is improved by integrating it with a variable neighbourhood search.     

The economic speed of an oceangoing vessel in a dynamic setting

The optimal (economic) speed of oceangoing vessels has become of increased importance due to the combined effect of low freight rates and volatile bunker prices. We examine the problem for vessels operating in the spot market in a tramp mode. In the case of known freight rates between origin destination combinations, a dynamic programming formulation can be applied to determine both the optimal speed and the optimal voyage sequence. Analogous results are derived for random freight rates of known distributions. In the case of independent rates the economic speed depends on fuel price and the expected freight rate, but is independent of the revenue of the particular voyage. For freight rates that depend on a state of the market Markovian random variable, economic speed depends on the market state as well, with increased speed corresponding to good states of the market. The dynamic programming equations in our models differ from those of Markovian decision processes so we develop modifications of standard solution methods, and apply them to small examples.     

Liner ship route schedule design with port time windows

This paper examines a practical tactical liner ship route schedule design problem, which is the determination of the arrival and departure time at each port of call on the ship route. When designing the schedule, the availability of each port in a week, i.e., port time window, is incorporated. As a result, the designed schedule can be applied in practice without or with only minimum revisions. This problem is formulated as a mixed-integer nonlinear nonconvex optimization model. In view of the problem structure, an efficient holistic solution approach is proposed to obtain global optimal solution. The proposed solution method is applied to a trans-Atlantic ship route. The results demonstrate that the port time windows, port handling efficiency, bunker price and unit inventory cost all affect the total cost of a ship route, the optimal number of ships to deploy, and the optimal schedule.     

Integrated operations planning and revenue management for rail freight transportation

In the rail industry, profit maximization relies heavily on the integration of logistics activities with an improved management of revenues. The operational policies chosen by the carrier have an important impact on the network yield and thus on global profitability. This paper bridges the gap between railroad operations planning and revenue management. We propose a new bilevel mathematical formulation which encompasses pricing decisions and network planning policies such as car blocking and routing as well as train make-up and scheduling. An exact solution approach based on a mixed integer formulation adapted to the problem structure is presented, and computational results are reported on randomly generated instances.     

A hybrid optimization-simulation approach for robust weekly aircraft routing and retiming

We address the robust weekly aircraft routing and retiming problem, which requires determining weekly schedules for a heterogeneous fleet that maximizes the aircraft on-time performance, minimizes the total delay, and minimizes the number of delayed passengers. The fleet is required to serve a set of flights having known departure time windows while satisfying maintenance constraints. All flights are subject to random delays that may propagate through the network. We propose to solve this problem using a hybrid optimization-simulation approach based on a novel mixed-integer nonlinear programming model for the robust weekly aircraft maintenance routing problem. For this model, we provide an equivalent mixed-integer linear programming formulation that can be solved using a commercial solver. Furthermore, we describe a Monte-Carlo-based procedure for sequentially adjusting the flight departure times. We perform an extensive computational study using instances obtained from a major international airline, having up to 3387 flights and 164 aircraft, which demonstrates the efficacy of the proposed approach. Using the simulation software SimAir to assess the robustness of the solutions produced by our approach in comparison with that for the original solutions implemented by the airline, we found that on-time performance was improved by 9.8–16.0%, cumulative delay was reduced by 25.4–33.1%, and the number of delayed passengers was reduced by 8.2–51.6%.     

Robust weekly aircraft maintenance routing problem and the extension to the tail assignment problem

In this paper, we study two closely related airline planning problems: the robust weekly aircraft maintenance routing problem (RWAMRP) and the tail assignment problem (TAP). In real life operations, the RWAMRP solution is used in tactical planning whereas the TAP solution is implemented in operational planning. The main objective of these two problems is to minimize the total expected propagated delay (EPD) of the aircraft routes. To formulate the RWAMRP, we propose a novel weekly line-of-flights (LOF) network model that can handle complex and nonlinear cost functions of EPD. Because the number of LOFs grows exponentially with the number of flights to be scheduled, we propose a two-stage column generation approach to efficiently solve large-scale real-life RWAMRPs. Because the EPD of an LOF is highly nonlinear and can be very time-consuming to accurately compute, we propose three lower bounds on the EPD to solve the pricing subproblem of the column generation. Our approach is tested on eight real-life test instances. The computational results show that the proposed approach provides very tight LP relaxation (within 0.6% of optimal solutions) and solves the test case with more than 6000 flights per week in less than three hours. We also investigate the solutions obtained by our approach over 500 simulated realizations. The simulation results demonstrate that, in all eight test instances, our solutions result in less EPDs than those obtained from traditional methods. We then extend our model and solution approach to solve realistically simulated TAP instances.     

Excess Commuting: A Critical Review

Abstract

The stringent ship emission regulations under IMO's (International Maritime Organization) MARPOL Annex VI are a main driver to consider liquefied natural gas (LNG) as a ship fuel. Research into LNG as a marine fuel saw a strong growth in recent years, but no study has analyzed in a systematic way the level of convergence among the findings presented in the wide range of studies. In order to fill this gap, this paper seeks to perform a systematic review to synthesize the findings of 33 published studies on the use of LNG as a ship fuel. The aim is not only to obtain a much broader understanding of the current perspectives and challenges for applying LNG as a bunker for ship propulsion, but also to identify the gaps and weak points in the literature which could suggest future research. Moreover, given the output of the synthesis, the paper presents an extensive decision-making framework for shipowners when deciding on a fuel switch for their fleet from conventional oils to LNG in order to achieve a level of conceptual development beyond that attained in individual studies. In addition, the study also identifies the important role of ports in facilitating and encouraging the large-scale adoption of LNG in the maritime industry.     

Low carbon maritime transport: How speed,size and slenderness amounts to substantial capital energy substitution

Three responses that reduce energy consumption and CO₂ emissions in maritime transport are slower speeds, larger vessels and slender hull designs. We use crude oil carriers as our illustrative example; these represent nearly a quarter of international sea cargo movements. We estimate the potential and costs in these which can all be described as capital substituting for energy and emissions. At different degrees of flexibility and time scales: speed reductions are feasible immediately when there are vessels available, though more capital will be tied up in cargo. Deployment of larger and more slender vessels to a greater extent requires fleet renovation, and also investments in ports and infrastructure. A novel finding in our analysis is that if bunker costs rise as a result of emission costs (fees, quotas), then this may depress speeds and emissions more than if they result from higher oil prices. The reason is that for higher oil prices, more capital tied up in cargo may give cargo owners an interest in speeding up, partly counteracting the impulse from fuel costs that tends to slow vessels down. Emission costs, in contrast, do not raise cargo values.     

Determinants of vessel-accident bunker spills

The study investigates determinants of vessel-accident bunker fuel spillage. A vessel-accident bunker spillage equation is estimated using Tobit regression and data of individual non-oil-cargo vessel accidents that were investigated by the US Coast Guard during 2001–2008. The results indicate that the bunker spillage of a freight ship and an offshore supply vessel accident will be greater than that of a passenger ship accident. Also, the bunker spillage of a non-oil-cargo vessel accident will be greater if the vessel accident is an abandonment and occurs at night, but less if the accident involves a vessel that has diesel propulsion and even less if the vessel has both diesel propulsion and a steel hull.     

The split-demand one-commodity pickup-and-delivery travelling salesman problem

This paper introduces a new vehicle routing problem transferring one commodity between customers with a capacitated vehicle that can visit a customer more than once, although a maximum number of visits must be respected. It generalizes the capacitated vehicle routing problem with split demands and some other variants recently addressed in the literature. We model the problem with a single commodity flow formulation and design a branch-and-cut approach to solve it. We make use of Benders Decomposition to project out the flow variables from the formulation. Inequalities to strengthen the linear programming relaxation are also presented and separated within the approach. Extensive computational results illustrate the performance of the approach on benchmark instances from the literature.     

Solving the bicriterion routing and scheduling problem for hazardous materials distribution

Hazardous materials routing and scheduling decisions involve the determination of the minimum cost and/or risk routes for servicing the demand of a given set of customers. This paper addresses the bicriterion routing and scheduling problem arising in hazardous materials distribution planning. Under the assumption that the cost and risk attributes of each arc of the underlying transportation network are time-dependent, the proposed routing and scheduling problem pertains to the determination of the non-dominated time-dependent paths for servicing a given and fixed sequence of customers (intermediate stops) within specified time windows. Due to the heavy computational burden for solving this bicriterion problem, an alternative algorithm is proposed that determines the k-shortest time-dependent paths. Moreover an algorithm is provided for solving the bicriterion problem. The proximity of the solutions of the k-shortest time-dependent path problem with the non-dominated solutions is assessed on a set of problems developed by the authors.     

Scheduling of Intelligent and Autonomous Vehicles under pairing/unpairing collaboration strategy in container terminals

A new class of Intelligent and Autonomous Vehicles (IAVs) has been designed in the framework of Intelligent Transportation for Dynamic Environment (InTraDE) project funded by European Union. This type of vehicles is technologically superior to the existing Automated Guided Vehicles (AGVs), in many respects. They offer more flexibility and intelligence in maneuvering within confined spaces where the logistic operations take place. This includes the ability of pairing/unpairing enabling a pair of 1-TEU (20-foot Equivalent Unit) IAVs dynamically to join, transport containers of any size between 1-TEU and 1-FFE (40-foot Equivalent) and disjoin again. Deploying IAVs helps port operators to remain efficient in coping with the ever increasing volume of container traffic at ports and eliminate the need for deploying more 40-ft transporters in the very confined area of ports. In order to accommodate this new feature of IAVs, we review and extend one of the existing mixed integer programming models of AGV scheduling in order to minimize the makespan of operations for transporting a set of containers of different sizes between quay cranes and yard cranes. In particular, we study the case of Dublin Ferryport Terminal. In order to deal with the complexity of the scheduling model, we develop a Lagrangian relaxation-based decomposition approach equipped with a variable fixing procedure and a primal heuristics to obtain high-quality solution of instances of the problem.     

A conflict-based path-generation heuristic for evacuation planning

Evacuation planning and scheduling is a critical aspect of disaster management and national security applications. This paper proposes a conflict-based path-generation approach for evacuation planning. Its key idea is to decompose the evacuation planning problem into a master and a subproblem. The subproblem generates new evacuation paths for each evacuated area, while the master problem optimizes the flow of evacuees and produce an evacuation plan. Each new path is generated to remedy conflicts in the evacuation flows and adds new columns and a new row in the master problem. The algorithm is applied to a set of large-scale evacuation scenarios ranging from the Hawkesbury-Nepean flood plain (West Sydney, Australia) which require evacuating in the order of 70,000 persons, to the New Orleans metropolitan area and its 1,000,000 residents. Experiments illustrate the scalability of the approach which is able to produce evacuation for scenarios with more than 1200 nodes, while a direct Mixed Integer Programming formulation becomes intractable for instances with more than 5 nodes. With this approach, realistic evacuations scenarios can be solved near-optimally in reasonable time, supporting both evacuation planning in strategic, tactical, and operational environments.