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Effects of demurrage and detention regimes on dry-port-based inland container transport
Institution:1. Aalto University School of Business, Department of Information and Service Economy, P.O. Box 21220, FI-00076 AALTO, Helsinki, Finland;2. Chalmers University of Technology, Logistics and Transportation, 41296 Gothenburg, Sweden;1. Department of Civil and Environmental Engineering, National University of Singapore, Singapore 117576, Singapore;2. Transportation Management College, Dalian Maritime University, Dalian 116026, China;1. Centre for Maritime Studies, National University of Singapore, Singapore 118411, Singapore;2. Strome College of Business, Old Dominion University, Norfolk, Virginia 23529, USA;3. Department of Civil and Environmental Engineering, National University of Singapore, Singapore 117576, Singapore;4. School of Economics and Management, Tongji University, Shanghai 200096, China
Abstract: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.
Keywords:Containers  Demurrage and detention  Inland transport  Dwell times  Consolidation
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