IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v94y2016icp123-140.html
   My bibliography  Save this article

Measuring the perceived container leasing prices in liner shipping network design with empty container repositioning

Author

Listed:
  • Zheng, Jianfeng
  • Sun, Zhuo
  • Zhang, Fangjun

Abstract

This paper aims to measure the perceived container leasing prices at different ports by presenting a two-stage optimization method. In stage I, we propose a practical liner shipping network design problem with empty container repositioning. The proposed problem further considers the use of foldable containers and allows the mutual substitution between empty containers to decrease the number of empty containers to be repositioned. In stage II, the inverse optimization technique is used to determine the perceived container leasing prices at different ports, based on the solution obtained in stage I. Based on a set of candidate liner shipping service routes, a mixed-integer nonlinear programming model is built for the proposed problem in stage I. The nonlinear terms are linearized by introducing the auxiliary variables. Numerical experiments based on a realistic Asia-Europe-Oceania liner shipping network are carried out to account for the effectiveness of our two-stage optimization method.

Suggested Citation

  • Zheng, Jianfeng & Sun, Zhuo & Zhang, Fangjun, 2016. "Measuring the perceived container leasing prices in liner shipping network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 123-140.
    • Handle: RePEc:eee:transe:v:94:y:2016:i:c:p:123-140
    DOI: 10.1016/j.tre.2016.08.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554516302307
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2016.08.001?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. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship fleet deployment with container transshipment operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 470-484.
    2. Dong-ping Song & Jing-xin Dong, 2011. "Flow balancing-based empty container repositioning in typical shipping service routes," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 13(1), pages 61-77, March.
    3. Imai, Akio & Shintani, Koichi & Papadimitriou, Stratos, 2009. "Multi-port vs. Hub-and-Spoke port calls by containerships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 740-757, September.
    4. Sambracos, E. & Paravantis, J. A. & Tarantilis, C. D. & Kiranoudis, C. T., 2004. "Dispatching of small containers via coastal freight liners: The case of the Aegean Sea," European Journal of Operational Research, Elsevier, vol. 152(2), pages 365-381, January.
    5. Cheng-Min Feng & Chia-Hui Chang, 2008. "Empty container reposition planning for intra-Asia liner shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 35(5), pages 469-489, October.
    6. Chen, Rongying & Dong, Jing-Xin & Lee, Chung-Yee, 2016. "Pricing and competition in a shipping market with waste shipments and empty container repositioning," Transportation Research Part B: Methodological, Elsevier, vol. 85(C), pages 32-55.
    7. Richa Agarwal & Özlem Ergun, 2008. "Ship Scheduling and Network Design for Cargo Routing in Liner Shipping," Transportation Science, INFORMS, vol. 42(2), pages 175-196, May.
    8. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2014. "Impact analysis of maritime cabotage legislations on liner hub-and-spoke shipping network design," European Journal of Operational Research, Elsevier, vol. 234(3), pages 874-884.
    9. Shintani, Koichi & Imai, Akio & Nishimura, Etsuko & Papadimitriou, Stratos, 2007. "The container shipping network design problem with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(1), pages 39-59, January.
    10. Meng, Qiang & Wang, Shuaian, 2011. "Liner shipping service network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 695-708, September.
    11. 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.
    12. Di Francesco, Massimo & Crainic, Teodor Gabriel & Zuddas, Paola, 2009. "The effect of multi-scenario policies on empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 758-770, September.
    13. Liu, Cong & Jiang, Zhibin & Liu, Liming & Geng, Na, 2013. "Solutions for flexible container leasing contracts with options under capacity and order constraints," International Journal of Production Economics, Elsevier, vol. 141(1), pages 403-413.
    14. Chang, Hwan & Jula, Hossein & Chassiakos, Anastasios & Ioannou, Petros, 2008. "A heuristic solution for the empty container substitution problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(2), pages 203-216, March.
    15. Kjetil Fagerholt *, 2004. "Designing optimal routes in a liner shipping problem," Maritime Policy & Management, Taylor & Francis Journals, vol. 31(4), pages 259-268, October.
    16. Imai, Akio & Nishimura, Etsuko & Papadimitriou, Stratos & Liu, Miaojia, 2006. "The economic viability of container mega-ships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(1), pages 21-41, January.
    17. Wang, Shuaian & Liu, Zhiyuan & Meng, Qiang, 2015. "Segment-based alteration for container liner shipping network design," Transportation Research Part B: Methodological, Elsevier, vol. 72(C), pages 128-145.
    18. Dong, Jing-Xin & Song, Dong-Ping, 2009. "Container fleet sizing and empty repositioning in liner shipping systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(6), pages 860-877, November.
    19. Karlaftis, Matthew G. & Kepaptsoglou, Konstantinos & Sambracos, Evangelos, 2009. "Containership routing with time deadlines and simultaneous deliveries and pick-ups," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 210-221, January.
    20. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    21. Moon, Ilkyeong & Do Ngoc, Anh-Dung & Konings, Rob, 2013. "Foldable and standard containers in empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 107-124.
    22. Song, Dong-Ping & Dong, Jing-Xin, 2012. "Cargo routing and empty container repositioning in multiple shipping service routes," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1556-1575.
    23. Wang, Shuaian & Meng, Qiang, 2015. "Robust bunker management for liner shipping networks," European Journal of Operational Research, Elsevier, vol. 243(3), pages 789-797.
    24. Raymond K. Cheung & Chuen-Yih Chen, 1998. "A Two-Stage Stochastic Network Model and Solution Methods for the Dynamic Empty Container Allocation Problem," Transportation Science, INFORMS, vol. 32(2), pages 142-162, May.
    25. Wu, Wei-Ming & Lin, Tsan-Hwan, 2015. "Selection behavior of the global container shipping industry for carrier-owned and leased containers," Transport Policy, Elsevier, vol. 37(C), pages 11-19.
    26. Christiansen, Marielle & Fagerholt, Kjetil & Nygreen, Bjørn & Ronen, David, 2013. "Ship routing and scheduling in the new millennium," European Journal of Operational Research, Elsevier, vol. 228(3), pages 467-483.
    27. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2015. "Liner hub-and-spoke shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 32-48.
    28. Ilkyeong Moon & Hwajin Hong, 2016. "Repositioning of empty containers using both standard and foldable containers," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(1), pages 61-77, March.
    29. Gelareh, Shahin & Pisinger, David, 2011. "Fleet deployment, network design and hub location of liner shipping companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 947-964.
    30. Brouer, Berit Dangaard & Desaulniers, Guy & Pisinger, David, 2014. "A matheuristic for the liner shipping network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 42-59.
    31. Wang, Shuaian & Meng, Qiang, 2013. "Reversing port rotation directions in a container liner shipping network," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 61-73.
    32. Gelareh, Shahin & Nickel, Stefan & Pisinger, David, 2010. "Liner shipping hub network design in a competitive environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 991-1004, November.
    33. Jianfeng Zheng & Ziyou Gao & Dong Yang & Zhuo Sun, 2015. "Network Design and Capacity Exchange for Liner Alliances with Fixed and Variable Container Demands," Transportation Science, INFORMS, vol. 49(4), pages 886-899, November.
    34. Shintani, Koichi & Konings, Rob & Imai, Akio, 2010. "The impact of foldable containers on container fleet management costs in hinterland transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 750-763, September.
    35. Jiao, Wen & Yan, Hong & Pang, King-Wah, 2016. "Nonlinear pricing for stochastic container leasing system," Transportation Research Part B: Methodological, Elsevier, vol. 89(C), pages 1-18.
    36. Richa Agarwal & Özlem Ergun, 2010. "Network Design and Allocation Mechanisms for Carrier Alliances in Liner Shipping," Operations Research, INFORMS, vol. 58(6), pages 1726-1742, December.
    37. Berit D. Brouer & J. Fernando Alvarez & Christian E. M. Plum & David Pisinger & Mikkel M. Sigurd, 2014. "A Base Integer Programming Model and Benchmark Suite for Liner-Shipping Network Design," Transportation Science, INFORMS, vol. 48(2), pages 281-312, May.
    38. Ronen, David, 1993. "Ship scheduling: The last decade," European Journal of Operational Research, Elsevier, vol. 71(3), pages 325-333, December.
    39. Akio Imai & Fausto Rivera, 2001. "Strategic fleet size planning for maritime refrigerated containers," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(4), pages 361-374, October.
    40. Ronen, David, 1983. "Cargo ships routing and scheduling: Survey of models and problems," European Journal of Operational Research, Elsevier, vol. 12(2), pages 119-126, February.
    41. Li, Jing-An & Leung, Stephen C.H. & Wu, Yue & Liu, Ke, 2007. "Allocation of empty containers between multi-ports," European Journal of Operational Research, Elsevier, vol. 182(1), pages 400-412, October.
    42. Meng, Qiang & Wang, Shuaian, 2012. "Liner ship fleet deployment with week-dependent container shipment demand," European Journal of Operational Research, Elsevier, vol. 222(2), pages 241-252.
    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. Kuzmicz, Katarzyna Anna & Pesch, Erwin, 2019. "Approaches to empty container repositioning problems in the context of Eurasian intermodal transportation," Omega, Elsevier, vol. 85(C), pages 194-213.
    2. Jeong, Yoonjea & Saha, Subrata & Moon, Ilkyeong, 2020. "Optimal devanning time and detention charges for container supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    3. Zheng, Jianfeng & Qi, Jingwen & Sun, Zhuo & Li, Feng, 2018. "Community structure based global hub location problem in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 1-19.
    4. Zhao, Yiran & Yang, Zhongzhen & Haralambides, Hercules, 2019. "Optimizing the transport of export containers along China's coronary artery: The Yangtze River," Journal of Transport Geography, Elsevier, vol. 77(C), pages 11-25.
    5. Xufeng Yang & Juliang Zhang & Wen Jiao & Hong Yan, 2023. "Optimal Capacity Rationing Policy for a Container Leasing System with Multiple Kinds of Customers and Substitutable Containers," Management Science, INFORMS, vol. 69(3), pages 1468-1485, March.
    6. Alaa Abdelshafie & May Salah & Tomaž Kramberger & Dejan Dragan, 2022. "Repositioning and Optimal Re-Allocation of Empty Containers: A Review of Methods, Models, and Applications," Sustainability, MDPI, vol. 14(11), pages 1-23, May.
    7. Xing, Xinjie & Song, Dongping & Qiu, Chengfeng & Drake, Paul R. & Zhan, Yuanzhu, 2023. "Joint tank container demurrage policy and flow optimisation using a progressive hedging algorithm with expanded time-space network," European Journal of Operational Research, Elsevier, vol. 307(2), pages 663-679.
    8. Amir Gharehgozli & Nima Zaerpour & Rene Koster, 2020. "Container terminal layout design: transition and future," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 610-639, December.
    9. Alejandra Gómez-Padilla & Rosa G. González-Ramírez & Fernando Alarcón & Stefan Voß, 2021. "An option contract model for leasing containers in the shipping industry," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(2), pages 328-347, June.
    10. Jeong, Yoonjea & Saha, Subrata & Chatterjee, Debajyoti & Moon, Ilkyeong, 2018. "Direct shipping service routes with an empty container management strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 123-142.
    11. Zhang, Ruiyou & Huang, Chao & Feng, Xuehao, 2020. "Empty container repositioning with foldable containers in a river transport network considering the limitations of bridge heights," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 197-213.
    12. Xing, Xinjie & Drake, Paul R. & Song, Dongping & Zhou, Yang, 2019. "Tank Container Operators’ profit maximization through dynamic operations planning integrated with the quotation-booking process under multiple uncertainties," European Journal of Operational Research, Elsevier, vol. 274(3), pages 924-946.

    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. Zheng, Jianfeng & Qi, Jingwen & Sun, Zhuo & Li, Feng, 2018. "Community structure based global hub location problem in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 1-19.
    2. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2015. "Liner hub-and-spoke shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 32-48.
    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. Chen, Jingxu & Jia, Shuai & Wang, Shuaian & Liu, Zhiyuan, 2018. "Subloop-based reversal of port rotation directions for container liner shipping network alteration," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 336-361.
    5. Zheng, Jianfeng & Sun, Zhuo & Gao, Ziyou, 2015. "Empty container exchange among liner carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 158-169.
    6. Chen, Kang & Chen, Dongxu & Sun, Xueshan & Yang, Zhongzhen, 2016. "Container Ocean-transportation System Design with the factors of demand fluctuation and choice inertia of shippers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 267-281.
    7. Wang, Hua & Wang, Shuaian & Meng, Qiang, 2014. "Simultaneous optimization of schedule coordination and cargo allocation for liner container shipping networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 261-273.
    8. 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.
    9. Gang Du & Chuanwang Sun & Jinxian Weng, 2016. "Liner Shipping Fleet Deployment with Sustainable Collaborative Transportation," Sustainability, MDPI, vol. 8(2), pages 1-15, February.
    10. Manuel Herrera & Per J. Agrell & Casiano Manrique-de-Lara-Peñate & Lourdes Trujillo, 2017. "Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal," Annals of Operations Research, Springer, vol. 253(2), pages 845-869, June.
    11. Christiansen, Marielle & Fagerholt, Kjetil & Nygreen, Bjørn & Ronen, David, 2013. "Ship routing and scheduling in the new millennium," European Journal of Operational Research, Elsevier, vol. 228(3), pages 467-483.
    12. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship fleet deployment with container transshipment operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 470-484.
    13. Wang, Shuaian, 2014. "A novel hybrid-link-based container routing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 165-175.
    14. Wang, Shuaian & Meng, Qiang & Sun, Zhuo, 2013. "Container routing in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 1-7.
    15. Wang, Shuaian & Liu, Zhiyuan & Bell, Michael G.H., 2015. "Profit-based maritime container assignment models for liner shipping networks," Transportation Research Part B: Methodological, Elsevier, vol. 72(C), pages 59-76.
    16. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    17. Alaa Abdelshafie & May Salah & Tomaž Kramberger & Dejan Dragan, 2022. "Repositioning and Optimal Re-Allocation of Empty Containers: A Review of Methods, Models, and Applications," Sustainability, MDPI, vol. 14(11), pages 1-23, May.
    18. Sun, Zhuo & Zheng, Jianfeng, 2016. "Finding potential hub locations for liner shipping," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 750-761.
    19. Shintani, Koichi & Konings, Rob & Imai, Akio, 2019. "Combinable containers: A container innovation to save container fleet and empty container repositioning costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 248-272.
    20. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2014. "Impact analysis of maritime cabotage legislations on liner hub-and-spoke shipping network design," European Journal of Operational Research, Elsevier, vol. 234(3), pages 874-884.

    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:transe:v:94:y:2016:i:c:p:123-140. 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/600244/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.