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Liner shipping cargo allocation with service levels and speed optimization

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  • Guericke, Stefan
  • Tierney, Kevin

Abstract

The cargo allocation problem is a key strategic problem that determines the profitability of a liner shipping network. We present a novel mixed-integer programming model for this problem that introduces service levels for transit time requirements and optimizes the vessel speed on each leg of a service. These extensions to the cargo allocation problem greatly increase its realism and value for carriers. We evaluate our model on realistic data from the LINER-LIB and perform a sensitivity analysis of transit times versus bunker costs. Furthermore, we show how carriers can use our model to make data driven decisions in their operations.

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  • Guericke, Stefan & Tierney, Kevin, 2015. "Liner shipping cargo allocation with service levels and speed optimization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 40-60.
    • Handle: RePEc:eee:transe:v:84:y:2015:i:c:p:40-60
    DOI: 10.1016/j.tre.2015.10.002
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    Cited by:

    1. Yadong Wang & Qiang Meng & Haibo Kuang, 2019. "Intercontinental Liner Shipping Service Design," Transportation Science, INFORMS, vol. 53(2), pages 344-364, March.
    2. Koza, David Franz, 2019. "Liner shipping service scheduling and cargo allocation," European Journal of Operational Research, Elsevier, vol. 275(3), pages 897-915.
    3. Wang, Yadong & Meng, Qiang, 2021. "Optimizing freight rate of spot market containers with uncertainties in shipping demand and available ship capacity," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 314-332.
    4. Wetzel, Daniel & Tierney, Kevin, 2024. "Rethinking cyclic structures in liner shipping networks," European Journal of Operational Research, Elsevier, vol. 316(2), pages 556-568.
    5. Christiansen, Marielle & Hellsten, Erik & Pisinger, David & Sacramento, David & Vilhelmsen, Charlotte, 2020. "Liner shipping network design," European Journal of Operational Research, Elsevier, vol. 286(1), pages 1-20.
    6. Kevin Tierney & Jan Fabian Ehmke & Ann Melissa Campbell & Daniel Müller, 2019. "Liner shipping single service design problem with arrival time service levels," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 620-652, September.
    7. Christian Va Karsten & Stefan Ropke & David Pisinger, 2018. "Simultaneous Optimization of Container Ship Sailing Speed and Container Routing with Transit Time Restrictions," Transportation Science, INFORMS, vol. 52(4), pages 769-787, August.
    8. Ksciuk, Jana & Kuhlemann, Stefan & Tierney, Kevin & Koberstein, Achim, 2023. "Uncertainty in maritime ship routing and scheduling: A Literature review," European Journal of Operational Research, Elsevier, vol. 308(2), pages 499-524.
    9. Giuliano, Genevieve & Showalter, Catherine & Yuan, Quan & Zhang, Rui, 2018. "Managing the Impacts of Freight in California," Institute of Transportation Studies, Working Paper Series qt6614p4js, Institute of Transportation Studies, UC Davis.
    10. Trivella, Alessio & Corman, Francesco & Koza, David F. & Pisinger, David, 2021. "The multi-commodity network flow problem with soft transit time constraints: Application to liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    11. David F. Koza & Guy Desaulniers & Stefan Ropke, 2020. "Integrated Liner Shipping Network Design and Scheduling," Transportation Science, INFORMS, vol. 54(2), pages 512-533, March.
    12. Xiangang Lan & Xiaode Zuo & Qin Tao, 2023. "Container Shipping Optimization under Different Carbon Emission Policies: A Case Study," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    13. Massimo Giovannini & Harilaos N. Psaraftis, 2019. "The profit maximizing liner shipping problem with flexible frequencies: logistical and environmental considerations," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 567-597, September.
    14. Wetzel, Daniel & Tierney, Kevin, 2020. "Integrating fleet deployment into liner shipping vessel repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    15. Yang, Ruina & Yu, Mingzhu & Lee, Chung-Yee & Du, Yuquan, 2021. "Contracting in ocean transportation with empty container repositioning under asymmetric information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    16. Wang, Yadong & Gu, Yuyun & Wang, Tingsong & Zhang, Jun, 2022. "A risk-averse approach for joint contract selection and slot allocation in liner container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    17. Mallidis, Ioannis & Iakovou, Eleftherios & Dekker, Rommert & Vlachos, Dimitrios, 2018. "The impact of slow steaming on the carriers’ and shippers’ costs: The case of a global logistics network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 18-39.
    18. Reinhardt, Line Blander & Pisinger, David & Sigurd, Mikkel M. & Ahmt, Jonas, 2020. "Speed optimizations for liner networks with business constraints," European Journal of Operational Research, Elsevier, vol. 285(3), pages 1127-1140.

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