IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v78y2015icp298-308.html
   My bibliography  Save this article

Estimation of the perceived value of transit time for containerized cargoes

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856415001007
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2015.04.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bell, Michael G.H. & Liu, Xin & Rioult, Jeremy & Angeloudis, Panagiotis, 2013. "A cost-based maritime container assignment model," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 58-70.
    2. Talley, Wayne K. & Ng, ManWo & Marsillac, Erika, 2014. "Port service chains and port performance evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 236-247.
    3. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 19-39, March.
    4. CGIAR Research Program on Water, Land and Ecosystems (WLE)., 2014. "Ecosystem services and resilience framework," IWMI Books, Reports H046683, International Water Management Institute.
    5. K Fagerholt & G Laporte & I Norstad, 2010. "Reducing fuel emissions by optimizing speed on shipping routes," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(3), pages 523-529, March.
    6. Qu, Xiaobo & Wang, Shuaian & Zhang, Jin, 2015. "On the fundamental diagram for freeway traffic: A novel calibration approach for single-regime models," Transportation Research Part B: Methodological, Elsevier, vol. 73(C), pages 91-102.
    7. Wang, Shuaian & Meng, Qiang & Liu, Zhiyuan, 2013. "Containership scheduling with transit-time-sensitive container shipment demand," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 68-83.
    8. D Ronen, 2011. "The effect of oil price on containership speed and fleet size," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(1), pages 211-216, January.
    9. Lee, Tsung-Chen & Chang, Young-Tae & Lee, Paul T.W., 2013. "Economy-wide impact analysis of a carbon tax on international container shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 87-102.
    10. Qiang Meng & Shuaian Wang & Henrik Andersson & Kristian Thun, 2014. "Containership Routing and Scheduling in Liner Shipping: Overview and Future Research Directions," Transportation Science, INFORMS, vol. 48(2), pages 265-280, May.
    11. Meng, Qiang & Wang, Shuaian & Lee, Chung-Yee, 2015. "A tailored branch-and-price approach for a joint tramp ship routing and bunkering problem," Transportation Research Part B: Methodological, Elsevier, vol. 72(C), pages 1-19.
    12. Du, Yuquan & Chen, Qiushuang & Quan, Xiongwen & Long, Lei & Fung, Richard Y.K., 2011. "Berth allocation considering fuel consumption and vessel emissions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1021-1037.
    13. Bell, Michael G.H. & Liu, Xin & Angeloudis, Panagiotis & Fonzone, Achille & Hosseinloo, Solmaz Haji, 2011. "A frequency-based maritime container assignment model," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1152-1161, September.
    14. Nitin Bakshi & Noah Gans, 2010. "Securing the Containerized Supply Chain: Analysis of Government Incentives for Private Investment," Management Science, INFORMS, vol. 56(2), pages 219-233, February.
    15. Asgari, Nasrin & Farahani, Reza Zanjirani & Goh, Mark, 2013. "Network design approach for hub ports-shipping companies competition and cooperation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 48(C), pages 1-18.
    16. Wang, Shuaian & Meng, Qiang & Liu, Zhiyuan, 2013. "Bunker consumption optimization methods in shipping: A critical review and extensions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 49-62.
    17. Notteboom, Theo E. & Vernimmen, Bert, 2009. "The effect of high fuel costs on liner service configuration in container shipping," Journal of Transport Geography, Elsevier, vol. 17(5), pages 325-337.
    18. Wang, Shuaian & Meng, Qiang, 2012. "Sailing speed optimization for container ships in a liner shipping network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 701-714.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thalis P. V. Zis & Harilaos N. Psaraftis, 2022. "Impacts of short-term measures to decarbonize maritime transport on perishable cargoes," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(3), pages 602-629, September.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Shuaian & Meng, Qiang, 2015. "Robust bunker management for liner shipping networks," European Journal of Operational Research, Elsevier, vol. 243(3), pages 789-797.
    2. Meng, Qiang & Du, Yuquan & Wang, Yadong, 2016. "Shipping log data based container ship fuel efficiency modeling," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 207-229.
    3. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    4. Asghari, Mohammad & Jaber, Mohamad Y. & Mirzapour Al-e-hashem, S.M.J., 2023. "Coordinating vessel recovery actions: Analysis of disruption management in a liner shipping service," European Journal of Operational Research, Elsevier, vol. 307(2), pages 627-644.
    5. Zhang, Abraham & Zheng, Zhichao & Teo, Chung-Piaw, 2022. "Schedule reliability in liner shipping timetable design: A convex programming approach," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 499-525.
    6. He, Qie & Zhang, Xiaochen & Nip, Kameng, 2017. "Speed optimization over a path with heterogeneous arc costs," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 198-214.
    7. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    8. Wang, Shuaian & Meng, Qiang & Liu, Zhiyuan, 2013. "Bunker consumption optimization methods in shipping: A critical review and extensions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 49-62.
    9. Wang, Shuaian, 2016. "Fundamental properties and pseudo-polynomial-time algorithm for network containership sailing speed optimization," European Journal of Operational Research, Elsevier, vol. 250(1), pages 46-55.
    10. Maxim A. Dulebenets & Junayed Pasha & Olumide F. Abioye & Masoud Kavoosi, 2021. "Vessel scheduling in liner shipping: a critical literature review and future research needs," Flexible Services and Manufacturing Journal, Springer, vol. 33(1), pages 43-106, March.
    11. Wu, Wei-Ming, 2020. "The optimal speed in container shipping: Theory and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    12. Wang, Shuaian & Meng, Qiang & Liu, Zhiyuan, 2013. "Containership scheduling with transit-time-sensitive container shipment demand," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 68-83.
    13. Song, Dong-Ping & Li, Dong & Drake, Paul, 2015. "Multi-objective optimization for planning liner shipping service with uncertain port times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 1-22.
    14. Fukasawa, Ricardo & He, Qie & Song, Yongjia, 2016. "A disjunctive convex programming approach to the pollution-routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 61-79.
    15. Du, Yuquan & Meng, Qiang & Wang, Shuaian & Kuang, Haibo, 2019. "Two-phase optimal solutions for ship speed and trim optimization over a voyage using voyage report data," Transportation Research Part B: Methodological, Elsevier, vol. 122(C), pages 88-114.
    16. Berit Dangaard Brouer & Christian Vad Karsten & David Pisinger, 2017. "Optimization in liner shipping," 4OR, Springer, vol. 15(1), pages 1-35, March.
    17. Berit Dangaard Brouer & Christian Vad Karsten & David Pisinger, 2018. "Optimization in liner shipping," Annals of Operations Research, Springer, vol. 271(1), pages 205-236, December.
    18. Li, Chen & Qi, Xiangtong & Song, Dongping, 2016. "Real-time schedule recovery in liner shipping service with regular uncertainties and disruption events," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 762-788.
    19. Meng, Qiang & Lee, Chung-Yee, 2016. "Liner container assignment model with transit-time-sensitive container shipment demand and its applicationsAuthor-Name: Wang, Shuaian," Transportation Research Part B: Methodological, Elsevier, vol. 90(C), pages 135-155.
    20. Shuaian Wang & Dan Zhuge & Lu Zhen & Chung-Yee Lee, 2021. "Liner Shipping Service Planning Under Sulfur Emission Regulations," Transportation Science, INFORMS, vol. 55(2), pages 491-509, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:78:y:2015:i:c:p:298-308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.