IDEAS home Printed from https://ideas.repec.org/a/spr/flsman/v28y2016i4d10.1007_s10696-016-9245-7.html
   My bibliography  Save this article

Pricing storage of outbound containers in container terminals

Author

Listed:
  • Youn Ju Woo

    (Pusan National University)

  • Jang-Ho Song

    (Pusan Newport Co.)

  • Kap Hwan Kim

    (Pusan National University)

Abstract

In container yard of container terminals, a storage charge is imposed to encourage customers to limit the space required for their containers. This study addresses the storage price scheduling problem for the storage of outbound containers. The price schedule consists of the free-time limit, which is the maximum duration for a container to stay in the yard without any charge, and storage charge per day for storing a container past the free-time-limit. Empirical data suggests that the efficiency of loading operations significantly depends on the space utilized by a vessel’s outbound containers. Mathematical models are developed to determine the optimal storage price schedule in such a manner that the terminal’s total profit is maximized or the total system’s cost is minimized. Both single and multi-vessel cases are considered. Properties of the optimal solution are derived from the mathematical models and numerical experiments are conducted to validate solutions.

Suggested Citation

  • Youn Ju Woo & Jang-Ho Song & Kap Hwan Kim, 2016. "Pricing storage of outbound containers in container terminals," Flexible Services and Manufacturing Journal, Springer, vol. 28(4), pages 644-668, December.
    • Handle: RePEc:spr:flsman:v:28:y:2016:i:4:d:10.1007_s10696-016-9245-7
    DOI: 10.1007/s10696-016-9245-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10696-016-9245-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10696-016-9245-7?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. Carlo, Héctor J. & Vis, Iris F.A. & Roodbergen, Kees Jan, 2014. "Storage yard operations in container terminals: Literature overview, trends, and research directions," European Journal of Operational Research, Elsevier, vol. 235(2), pages 412-430.
    2. De Castilho, Bernardo & Daganzo, Carlos F., 1991. "Optimal Pricing Policies for Temporary Storage at Ports," University of California Transportation Center, Working Papers qt1m52h34w, University of California Transportation Center.
    3. Chen, Lu & Lu, Zhiqiang, 2012. "The storage location assignment problem for outbound containers in a maritime terminal," International Journal of Production Economics, Elsevier, vol. 135(1), pages 73-80.
    4. José Holguín-Veras & Sergio Jara-Díaz, 2010. "Optimal Two-Part Pricing and Capacity Allocation with Multiple User Classes and Elastic Arrivals at Constrained Transportation Facilities," Networks and Spatial Economics, Springer, vol. 10(4), pages 427-454, December.
    5. Martin Alcalde, Enrique & Kim, Kap Hwan & Marchán, Sergi Saurí, 2015. "Optimal space for storage yard considering yard inventory forecasts and terminal performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 101-128.
    6. Carlo, Héctor J. & Vis, Iris F.A. & Roodbergen, Kees Jan, 2014. "Transport operations in container terminals: Literature overview, trends, research directions and classification scheme," European Journal of Operational Research, Elsevier, vol. 236(1), pages 1-13.
    7. Kim, Kap Hwan & Kim, Hong Bae, 2002. "The optimal sizing of the storage space and handling facilities for import containers," Transportation Research Part B: Methodological, Elsevier, vol. 36(9), pages 821-835, November.
    8. José Holguín-Veras & Sergio Jara-Díaz, 2006. "Preliminary Insights into Optimal Pricing and Space Allocation at Intermodal Terminals with Elastic Arrivals and Capacity Constraint," Networks and Spatial Economics, Springer, vol. 6(1), pages 25-38, March.
    9. Lim, Andrew & Xu, Zhou, 2006. "A critical-shaking neighborhood search for the yard allocation problem," European Journal of Operational Research, Elsevier, vol. 174(2), pages 1247-1259, October.
    10. Woo, Youn Ju & Kim, Kap Hwan, 2011. "Estimating the space requirement for outbound container inventories in port container terminals," International Journal of Production Economics, Elsevier, vol. 133(1), pages 293-301, September.
    11. Cordeau, Jean-Francois & Gaudioso, Manlio & Laporte, Gilbert & Moccia, Luigi, 2007. "The service allocation problem at the Gioia Tauro Maritime Terminal," European Journal of Operational Research, Elsevier, vol. 176(2), pages 1167-1184, January.
    12. Kim, Kap Hwan & Park, Kang Tae, 2003. "A note on a dynamic space-allocation method for outbound containers," European Journal of Operational Research, Elsevier, vol. 148(1), pages 92-101, July.
    13. Taleb-Ibrahimi, Mounira & de Castilho, Bernardo & Daganzo, Carlos F., 1993. "Storage space vs handling work in container terminals," Transportation Research Part B: Methodological, Elsevier, vol. 27(1), pages 13-32, February.
    14. Kim, Kap Hwan & Kim, Ki Young, 2007. "Optimal price schedules for storage of inbound containers," Transportation Research Part B: Methodological, Elsevier, vol. 41(8), pages 892-905, October.
    15. Zhang, Chuqian & Liu, Jiyin & Wan, Yat-wah & Murty, Katta G. & Linn, Richard J., 2003. "Storage space allocation in container terminals," Transportation Research Part B: Methodological, Elsevier, vol. 37(10), pages 883-903, December.
    16. Zhen, Lu, 2014. "Container yard template planning under uncertain maritime market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 199-217.
    17. Mingzhu Yu & Kap Hwan Kim & Chung-Yee Lee, 2015. "Inbound container storage pricing schemes," IISE Transactions, Taylor & Francis Journals, vol. 47(8), pages 800-818, August.
    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. Xiao, Tingting & Ha, Albert Y., 2018. "Optimal unloading and storage pricing for inbound containers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 210-228.
    2. Kap Hwan Kim & Youn Ju Woo & Jae Gwan Kim, 0. "Space reservation and remarshalling operations for outbound containers in marine terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-25.
    3. Kap Hwan Kim & Youn Ju Woo & Jae Gwan Kim, 2021. "Space reservation and remarshalling operations for outbound containers in marine terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(1), pages 154-178, March.
    4. 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.
    5. Yadong Wang & Qiang Meng, 2019. "Integrated method for forecasting container slot booking in intercontinental liner shipping service," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 653-674, September.

    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. Kap Hwan Kim & Youn Ju Woo & Jae Gwan Kim, 0. "Space reservation and remarshalling operations for outbound containers in marine terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-25.
    2. Kap Hwan Kim & Youn Ju Woo & Jae Gwan Kim, 2021. "Space reservation and remarshalling operations for outbound containers in marine terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(1), pages 154-178, March.
    3. Jin, Xuefeng & Park, Kang Tae & Kim, Kap Hwan, 2019. "Storage space sharing among container handling companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 111-131.
    4. Chen, Xiaojing & Li, Feng & Jia, Bin & Wu, Jianjun & Gao, Ziyou & Liu, Ronghui, 2021. "Optimizing storage location assignment in an automotive Ro-Ro terminal," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 249-281.
    5. Martin Alcalde, Enrique & Kim, Kap Hwan & Marchán, Sergi Saurí, 2015. "Optimal space for storage yard considering yard inventory forecasts and terminal performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 101-128.
    6. 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.
    7. Lu Zhen & Ek Peng Chew & Loo Hay Lee, 2011. "An Integrated Model for Berth Template and Yard Template Planning in Transshipment Hubs," Transportation Science, INFORMS, vol. 45(4), pages 483-504, November.
    8. Woo, Youn Ju & Kim, Kap Hwan, 2011. "Estimating the space requirement for outbound container inventories in port container terminals," International Journal of Production Economics, Elsevier, vol. 133(1), pages 293-301, September.
    9. Hyun Ji Park & Sung Won Cho & Abhilasha Nanda & Jin Hyoung Park, 2023. "Data-driven dynamic stacking strategy for export containers in container terminals," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 170-195, March.
    10. Lehnfeld, Jana & Knust, Sigrid, 2014. "Loading, unloading and premarshalling of stacks in storage areas: Survey and classification," European Journal of Operational Research, Elsevier, vol. 239(2), pages 297-312.
    11. Chen, Lu & Lu, Zhiqiang, 2012. "The storage location assignment problem for outbound containers in a maritime terminal," International Journal of Production Economics, Elsevier, vol. 135(1), pages 73-80.
    12. Zhen, Lu, 2016. "Modeling of yard congestion and optimization of yard template in container ports," Transportation Research Part B: Methodological, Elsevier, vol. 90(C), pages 83-104.
    13. Voß, Andre & Guckenbiehl, Gabriel & Schütt, Holger & Buer, Tobias, 2016. "A storage strategy with dynamic bay reservations for container terminals," Bremen Computational Logistics Group Working Papers 4, University of Bremen, Computational Logistics Junior Research Group.
    14. Carlo, Héctor J. & Vis, Iris F.A. & Roodbergen, Kees Jan, 2014. "Storage yard operations in container terminals: Literature overview, trends, and research directions," European Journal of Operational Research, Elsevier, vol. 235(2), pages 412-430.
    15. Roberto Guerra-Olivares & Neale R. Smith & Rosa G. González-Ramírez & Leopoldo Eduardo Cárdenas-Barrón, 2018. "A study of the sensitivity of sequence stacking strategies for the storage location assignment problem for out-bound containers in a maritime terminal," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 9(5), pages 1057-1062, October.
    16. Jiang, Xin Jia & Jin, Jian Gang, 2017. "A branch-and-price method for integrated yard crane deployment and container allocation in transshipment yards," Transportation Research Part B: Methodological, Elsevier, vol. 98(C), pages 62-75.
    17. Feng, Yuanjun & Song, Dong-Ping & Li, Dong, 2022. "Smart stacking for import containers using customer information at automated container terminals," European Journal of Operational Research, Elsevier, vol. 301(2), pages 502-522.
    18. Kim, Kap Hwan & Kim, Ki Young, 2007. "Optimal price schedules for storage of inbound containers," Transportation Research Part B: Methodological, Elsevier, vol. 41(8), pages 892-905, October.
    19. Zhou, Chenhao & Wang, Wencheng & Li, Haobin, 2020. "Container reshuffling considered space allocation problem in container terminals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    20. Liu, Changchun, 2020. "Iterative heuristic for simultaneous allocations of berths, quay cranes, and yards under practical situations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).

    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:spr:flsman:v:28:y:2016:i:4:d:10.1007_s10696-016-9245-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.