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Estimation of the perceived value of transit time for containerized cargoes

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  • Wang, Shuaian
  • Qu, Xiaobo
  • Yang, Ying

Abstract

This paper proposes a novel method for estimating the perceived value of transit time of containers by shipping lines. The key idea is that a shipping line’s published schedule is the optimal decision that minimizes the sum of fuel cost and time-associated costs of the containers adopted by the shipping line. Using the proposed method, we find that the adopted values of transit time for nine trans-Pacific services operated by Orient Overseas Container Line and five trans-Pacific services operated by Maersk Line are between US$5/TEU/day and US$30/TEU/day. We further demonstrate how the adopted value can be used for designing the optimal transit times between ports, analyzing the viability of slow-steaming, checking whether ships should speed up to catch up to connecting ships on other services, and helping to predict the market share of less polluting fuels in view of rules on air emission.

Suggested Citation

  • Wang, Shuaian & Qu, Xiaobo & Yang, Ying, 2015. "Estimation of the perceived value of transit time for containerized cargoes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 298-308.
    • Handle: RePEc:eee:transa:v:78:y:2015:i:c:p:298-308
    DOI: 10.1016/j.tra.2015.04.014
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    Cited by:

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    2. Chun-Mei Chen & Hsian-Ming Liu, 2017. "Exploring the Impact of Airlines Service Quality on Customer Loyalty: Evidence from Taiwan," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(5), pages 1-36, April.
    3. Yang, Dong & Pan, Kai & Wang, Shuaian, 2018. "On service network improvement for shipping lines under the one belt one road initiative of China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 82-95.
    4. Dulebenets, Maxim A. & Ozguven, Eren Erman, 2017. "Vessel scheduling in liner shipping: Modeling transport of perishable assets," International Journal of Production Economics, Elsevier, vol. 184(C), pages 141-156.
    5. Olumide F. Abioye & Maxim A. Dulebenets & Junayed Pasha & Masoud Kavoosi, 2019. "A Vessel Schedule Recovery Problem at the Liner Shipping Route with Emission Control Areas," Energies, MDPI, vol. 12(12), pages 1-28, June.
    6. Dulebenets, Maxim A., 2018. "A comprehensive multi-objective optimization model for the vessel scheduling problem in liner shipping," International Journal of Production Economics, Elsevier, vol. 196(C), pages 293-318.

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