IDEAS home Printed from https://ideas.repec.org/a/spr/operea/v24y2024i3d10.1007_s12351-024-00858-1.html
   My bibliography  Save this article

Joint planning for fuel switching ships in a liner shipping network with transit time

Author

Listed:
  • Yuzhe Zhao

    (Dalian Maritime University)

  • Jingmiao Zhou

    (Dalian University of Foreign Languages)

  • Zhongxiu Peng

    (Dalian Maritime University)

  • Peng Jia

    (Dalian Maritime University)

Abstract

Fuel switching is the most mature, reliable, and economical technology for ship operators to comply with regulations of sulfur emission control area (SECA), and will remain so for the next few years. Under SECA regulations, this paper tries to optimize liner shipping operation by integrating ship deployment, schedule design, and speed optimization while considering transit time. Specifically, a mixed integer nonlinear programming model was built to minimize operating costs, and fully guarantee the logic and superiority of the existing liner shipping network. A two-stage algorithm based on ɛ outer approximation estimation and enumeration was designed, and a backtracking algorithm was provided for determining initial port combinations in large-scale instances. After that, a case study on the Orient Overseas Container Line was carried out to verify the operability and flexibility of our method. The optimized strategy refines the existing network by adjusting initial port combinations, enhancing speed, and expanding new ship deployments. To mitigate the impact of rising port demurrage fees, liner companies are reducing transshipment penalty costs. While easing connecting time window (CTW) restrictions offers limited benefits, optimizing speed and loosening CTW can reduce operational costs by approximately 2–5%, helping liner companies navigate the fluctuating fuel market post-Covid.

Suggested Citation

  • Yuzhe Zhao & Jingmiao Zhou & Zhongxiu Peng & Peng Jia, 2024. "Joint planning for fuel switching ships in a liner shipping network with transit time," Operational Research, Springer, vol. 24(3), pages 1-36, September.
    • Handle: RePEc:spr:operea:v:24:y:2024:i:3:d:10.1007_s12351-024-00858-1
    DOI: 10.1007/s12351-024-00858-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12351-024-00858-1
    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/s12351-024-00858-1?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. 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.
    2. 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.
    3. 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.
    4. Jun Xia & Kevin X. Li & Hong Ma & Zhou Xu, 2015. "Joint Planning of Fleet Deployment, Speed Optimization, and Cargo Allocation for Liner Shipping," Transportation Science, INFORMS, vol. 49(4), pages 922-938, November.
    5. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    6. 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.
    7. Nadjib Brahimi & Ali Cheaitou & Pierre Cariou & Dominique Feillet, 2021. "An exact algorithm for the single liner service design problem with speed optimisation," International Journal of Production Research, Taylor & Francis Journals, vol. 59(22), pages 6809-6832, November.
    8. Wang, Shuaian & Wang, Xinchang, 2016. "A polynomial-time algorithm for sailing speed optimization with containership resource sharing," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 394-405.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. Bingfeng Bai & Wei Fan, 2023. "Research on strategic liner ship fleet planning with regard to hub-and-spoke network," Operations Management Research, Springer, vol. 16(1), pages 363-376, March.
    15. 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.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. 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.
    3. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    4. Xi Jiang & Haijun Mao & Yadong Wang & Hao Zhang, 2020. "Liner Shipping Schedule Design for Near-Sea Routes Considering Big Customers’ Preferences on Ship Arrival Time," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    5. Sun, Qinghe & Li, Wei & Meng, Qiang, 2024. "Single-leg shipping revenue management for expedited services with ambiguous elasticity in transit-time-sensitive demand," Transportation Research Part B: Methodological, Elsevier, vol. 180(C).
    6. 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.
    7. 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.
    8. Yan, Ran & Wang, Shuaian & Du, Yuquan, 2020. "Development of a two-stage ship fuel consumption prediction and reduction model for a dry bulk ship," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    9. De, Arijit & Choudhary, Alok & Turkay, Metin & Tiwari, Manoj K., 2021. "Bunkering policies for a fuel bunker management problem for liner shipping networks," European Journal of Operational Research, Elsevier, vol. 289(3), pages 927-939.
    10. Chen Li & Xiangtong Qi & Chung-Yee Lee, 2015. "Disruption Recovery for a Vessel in Liner Shipping," Transportation Science, INFORMS, vol. 49(4), pages 900-921, November.
    11. Lee, Chung-Yee & Lee, Hau L. & Zhang, Jiheng, 2015. "The impact of slow ocean steaming on delivery reliability and fuel consumption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 176-190.
    12. 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.
    13. Lin, Dung-Ying & Chang, Yu-Ting, 2018. "Ship routing and freight assignment problem for liner shipping: Application to the Northern Sea Route planning problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 47-70.
    14. Wetzel, Daniel & Tierney, Kevin, 2024. "Rethinking cyclic structures in liner shipping networks," European Journal of Operational Research, Elsevier, vol. 316(2), pages 556-568.
    15. 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.
    16. Zhen, Lu & Hu, Yi & Wang, Shuaian & Laporte, Gilbert & Wu, Yiwei, 2019. "Fleet deployment and demand fulfillment for container shipping liners," Transportation Research Part B: Methodological, Elsevier, vol. 120(C), pages 15-32.
    17. Beullens, Patrick & Ge, Fangsheng & Hudson, Dominic, 2023. "The economic ship speed under time charter contract—A cash flow approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    18. Hellsten, Erik Orm & Sacramento, David & Pisinger, David, 2022. "A branch-and-price algorithm for solving the single-hub feeder network design problem," European Journal of Operational Research, Elsevier, vol. 300(3), pages 902-916.
    19. Lai, Xiaofan & Wu, Lingxiao & Wang, Kai & Wang, Fan, 2022. "Robust ship fleet deployment with shipping revenue management," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 169-196.
    20. 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.

    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:operea:v:24:y:2024:i:3:d:10.1007_s12351-024-00858-1. 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.