The value of options for time charterparty extension: an artificial neural networks (ANN) approach

The most frequently associated options in the physical shipping market are options to extend the charter period on time charters and additional shipment options on contracts of affreightment. The value of freight options, in practice, is estimated mostly by referring to forward curves. An option on freight has different properties from its financial counterparts, and the straightforward adoption of theoretical models does not produce promising results. In this paper, extension options, which have the property of options on futures, were transformed into regular European options before the application of the Black-Scholes model (BSM). The efficient market hypothesis, which justifies the parity of the performance of a long-term charter to that of repetitive short-term charters, worked as the basis for the transformation. The option values determined by the BSM were compared with actual realized values. Additionally, the artificial neural networks (ANN) was employed to derive the option values. This study is meaningful as the first-time application of both the closed-form solution and the ANN to the valuation of physical freight options. The research results can contribute to the quality of chartering decisions. The results could also be used in quantifying credit risk, as extension options tend to be granted to charterers with more creditability.     

Effects of the ‘Belt and Road’ initiative on the wine import logistics of China

China’s Belt and Road (BR) initiative is expected to facilitate international trade between the countries involved. In this study, we review the special requirements of wine logistics and the market growth potential of wine consumption in China. A model minimizing generalized logistical costs is developed and applied to wine imports in China, so that the best candidate cities in which to locate transport gateways and distribution centers can be identified. Our analysis suggests that the most preferred gateways are Shanghai, Tianjin, Guangzhou, and Hong Kong, which all have similar delivery costs. In comparison, Beijing and Chongqing have much higher delivery costs, mainly because they do not have good access to marine transport and/or efficient domestic distribution networks. For long-distance intercontinental transport of large volumes of wine, marine shipping remains the only viable delivery mode. However, wine distribution within China extensively uses air, road, and water transport. Therefore, cities with excellent multi-modal transport services are better positioned to become wine logistics gateways. Our study also highlights the importance of value-added services and good government support, which are important factors that influence distribution costs and quality.     

Numerical Simulation of Advanced Geological Forecasting Based on Multi- Source Seismic Interferometry北大核心CSCD

For existing advanced geological forecasting, the forecast distance is short and the test frequency is high, increasing test and construction risks. Since various methods have different requirements for the test environ-ment, preparation work can be tedious and result in a long construction time thereby affecting normal construction.A new advanced geological forecast technique based on multi-source seismic interferometry for tunnels is proposed.This technique uses the blast at one end of tunnel as a centrum and receives the signal at the other end of the tun-nel, therefore allowing advanced geological forecasting of the unexcavated tunnel part by relative processing and im-aging. A numerical simulation of this kind of geological forecasting using the finite difference method to simulate two kinds of unfavorable geological bodies (karst and a fault) predicted them accurately and verified the effective-ness and accuracy of this geological forecasting method. © 2018, Editorial Office of "Modern Tunnelling Technology". All right reserved.     

Analysis of Ground Response and Structure Stress Induced by PBA Method北大核心CSCD

The application of prefabricated tunnel technology has been become a new research field both in China and abroad. Based on the running tunnel between Yufuhe station and Wangfuzhuang station of Jinan rail transit line R1, a new prefabricated tunnel construction technology, the PBA method is presented. This paper makes a detailed discussion on section form, supporting scheme and construction process of the PBA method. In this study, 3D a new 3D numerical model for PBA method is presented by finite difference numerical simulation software Flac and the construction processes are modeled. The rule of ground surface settlement, ground deformation and structural stress caused by PBA method is studied in detail. Results show that the structure of PBA method can effectively control the deformation magnitude and scope. Stress concentration appears at the prefabricated connection parts and the reinforcement needs to check. The total assembled structure forms the load-bearing system after the completion of the lateral wall. The built-in depth of the precast pile and pile bottom grouting quality should to be ensured to control the displacement of the precast piles. The results of this study will be a useful reference for similar projects in the future. © 2018, Editorial Office of "Modern Tunnelling Technology". All right reserved.     

Experimental Study on Mechanical Behaviors of Prefabricated Column-Base Joint with Grouted Sleeves Connecting Longitudinal Reinforcements in Tunnels北大核心CSCD

In recent years, large shield tunnels with internal double-decked lanes have been developing rapidly in the field of highway tunnels, and prefabricated elements are increasingly adopted in internal structure. Based on the columns-base joint in Zhuguanglu tunnel, which is under construction, 2 full-scale specimens are designed for the quasi-static test, one specimen is connected with grout sleeve splicing and the other is cast in place. The test results show that: the bearing capacity of specimen with grout sleeve splicing is equal to that of cast-in-situ specimen, but its ductility and energy dissipation capacity are worse than that of the cast-in-situ specimen. And for the specimen with grout sleeve splicing, there exists crack concentration on the area above the sleeve. The crack width is too larger in this area. © 2018, Editorial Office of "Modern Tunnelling Technology". All right reserved.     

Vulnerability analysis for large-scale and congested road networks with demand uncertainty

To assess the vulnerability of congested road networks, the commonly used full network scan approach is to evaluate all possible scenarios of link closure using a form of traffic assignment. This approach can be computationally burdensome and may not be viable for identifying the most critical links in large-scale networks. In this study, an “impact area” vulnerability analysis approach is proposed to evaluate the consequences of a link closure within its impact area instead of the whole network. The proposed approach can significantly reduce the search space for determining the most critical links in large-scale networks. In addition, a new vulnerability index is introduced to examine properly the consequences of a link closure. The effects of demand uncertainty and heterogeneous travellers’ risk-taking behaviour are explicitly considered. Numerical results for two different road networks show that in practice the proposed approach is more efficient than traditional full scan approach for identifying the same set of critical links. Numerical results also demonstrate that both stochastic demand and travellers’ risk-taking behaviour have significant impacts on network vulnerability analysis, especially under high network congestion and large demand variations. Ignoring their impacts can underestimate the consequences of link closures and misidentify the most critical links.     

Identifying optimal data aggregation interval sizes for link and corridor travel time estimation and forecasting

With the recent increase in the deployment of ITS technologies in urban areas throughout the world, traffic management centers have the ability to obtain and archive large amounts of data on the traffic system. These data can be used to estimate current conditions and predict future conditions on the roadway network. A general solution methodology for identifying the optimal aggregation interval sizes for four scenarios is proposed in this article: (1) link travel time estimation, (2) corridor/route travel time estimation, (3) link travel time forecasting, and (4) corridor/route travel time forecasting. The methodology explicitly considers traffic dynamics and frequency of observations. A formulation based on mean square error (MSE) is developed for each of the scenarios and interpreted from a traffic flow perspective. The methodology for estimating the optimal aggregation size is based on (1) the tradeoff between the estimated mean square error of prediction and the variance of the predictor, (2) the differences between estimation and forecasting, and (3) the direct consideration of the correlation between link travel time for corridor/route estimation and forecasting. The proposed methods are demonstrated using travel time data from Houston, Texas, that were collected as part of the automatic vehicle identification (AVI) system of the Houston Transtar system. It was found that the optimal aggregation size is a function of the application and traffic condition.

Multi‐objective highway alignment optimization using a genetic algorithm

The available highway alignment optimization algorithms use the total cost as the objective function. This is a single objective optimization process. In this process, travel‐time, vehicle operation accident earthwork land acquisition and pavement construction costs are the basic components of the total cost. This single objective highway alignment optimization process has limited capability in handling the cost components separately. Moreover, this process cannot yield a set of alternative solutions from a single run. This paper presents a multi‐objective approach to overcome these shortcomings. Some of the cost components of highway alignments are conflicting in nature. Minimizing some of them will yield a straighter alignment; whereas, minimizing others would make the alignment circuitous. Therefore, the goal of the multiobjective optimization approach is to handle the trade‐off amongst the highway alignment design objectives and present a set of near optimal solutions. The highway alignment objectives, i.e., cost functions, are not continuous in nature. Hence, a special genetic algorithm based multi‐objective optimization algorithm is suggested The proposed methodology is demonstrated via a case study at the end.     

Modelling and Analysis of Turning Motion of a Subsurface Mapping AUV with Split-Hull Design

There is much need for autonomous underwater vehicles (AUVs) for inspection and mapping purposes. Most conventional AUVs use torpedo-shaped single-rigid hull, b...