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On cost-efficiency of the global container shipping network

Author

Listed:
  • Dongping Song *
  • Jie Zhang
  • Jonathan Carter
  • Tony Field
  • James Marshall
  • John Polak
  • Kimberly Schumacher
  • Proshun Sinha-Ray
  • John Woods

Abstract

This paper presents a simple formulation in the form of a pipe network for modelling the global container-shipping network. The cost-efficiency and movement-patterns of the current container-shipping network have been investigated using heuristic methods. The model is able to reproduce the overall incomes, costs, and container movement patterns for the industry as well as for the individual shipping lines and ports. It was found that the cost of repositioning empties is 27% of the total world fleet running cost and that overcapacity continues to be a problem. The model is computationally efficient. Implemented in the Java language, it takes one minute to run a full-scale network on a Pentium IV computer.

Suggested Citation

  • Dongping Song * & Jie Zhang & Jonathan Carter & Tony Field & James Marshall & John Polak & Kimberly Schumacher & Proshun Sinha-Ray & John Woods, 2005. "On cost-efficiency of the global container shipping network," Maritime Policy & Management, Taylor & Francis Journals, vol. 32(1), pages 15-30, January.
    • Handle: RePEc:taf:marpmg:v:32:y:2005:i:1:p:15-30
    DOI: 10.1080/0308883042000176640
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    References listed on IDEAS

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    1. Ross Robinson, 2002. "Ports as elements in value-driven chain systems: the new paradigm," Maritime Policy & Management, Taylor & Francis Journals, vol. 29(3), pages 241-255.
    2. 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.
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    Cited by:

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    2. 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.
    3. 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.
    4. Laure Rousset & César Ducruet, 2020. "Disruptions in Spatial Networks: a Comparative Study of Major Shocks Affecting Ports and Shipping Patterns," Post-Print halshs-02588551, HAL.
    5. Efrah Wozir Abdulahi & Luo Fan, 2021. "Exploring and Validating Container Operational Risk Scale in Container Shipping: The Case of Ethiopian Shipping and Logistics Service Enterprise," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    6. Hongchu Yu & Zhixiang Fang & Guojun Peng & Mingxiang Feng, 2017. "Revealing the Linkage Network Dynamic Structures of Chinese Maritime Ports through Automatic Information System Data," Sustainability, MDPI, vol. 9(10), pages 1-17, October.
    7. Laure Rousset & César Ducruet, 2020. "Disruptions in Spatial Networks: a Comparative Study of Major Shocks Affecting Ports and Shipping Patterns," Networks and Spatial Economics, Springer, vol. 20(2), pages 423-447, June.
    8. 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.
    9. Dong-Ping Song & Qing Zhang, 2011. "Optimal Inventory Control for Empty Containers in a Port with Random Demands and Repositioning Delays," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 14, Edward Elgar Publishing.
    10. Ducruet, César & Rozenblat, Céline & Zaidi, Faraz, 2010. "Ports in multi-level maritime networks: evidence from the Atlantic (1996–2006)," Journal of Transport Geography, Elsevier, vol. 18(4), pages 508-518.
    11. Tran, Nguyen Khoi, 2011. "Studying port selection on liner routes: An approach from logistics perspective," Research in Transportation Economics, Elsevier, vol. 32(1), pages 39-53.
    12. 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.
    13. Hamed Hasheminia & Changmin Jiang, 2017. "Strategic trade-off between vessel delay and schedule recovery: an empirical analysis of container liner shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(4), pages 458-473, May.
    14. 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.
    15. Jones, Dean A. & Farkas, Julie L. & Bernstein, Orr & Davis, Chad E. & Turk, Adam & Turnquist, Mark A. & Nozick, Linda K. & Levine, Brian & Rawls, Carmen G. & Ostrowski, Scott D. & Sawaya, William, 2011. "U.S. import/export container flow modeling and disruption analysis," Research in Transportation Economics, Elsevier, vol. 32(1), pages 3-14.
    16. 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.
    17. Yu, Hongchu & Fang, Zhixiang & Lu, Feng & Murray, Alan T. & Zhang, Hengcai & Peng, Peng & Mei, Qiang & Chen, Jinhai, 2019. "Impact of oil price fluctuations on tanker maritime network structure and traffic flow changes," Applied Energy, Elsevier, vol. 237(C), pages 390-403.
    18. 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.
    19. Song, Dong-Ping & Dong, Jing-Xin, 2011. "Effectiveness of an empty container repositioning policy with flexible destination ports," Transport Policy, Elsevier, vol. 18(1), pages 92-101, January.
    20. Sun, Qinghe & Meng, Qiang & Chou, Mabel C., 2021. "Optimizing voyage charterparty (VCP) arrangement: Laytime negotiation and operations coordination," European Journal of Operational Research, Elsevier, vol. 291(1), pages 263-270.
    21. Qi, Xiangtong & Song, Dong-Ping, 2012. "Minimizing fuel emissions by optimizing vessel schedules in liner shipping with uncertain port times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 863-880.
    22. Qiang Meng & Tingsong Wang & Shuaian Wang, 2015. "Multi-period liner ship fleet planning with dependent uncertain container shipment demand," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(1), pages 43-67, January.
    23. Li, Xinyan & Xie, Chi & Bao, Zhaoyao, 2022. "A multimodal multicommodity network equilibrium model with service capacity and bottleneck congestion for China-Europe containerized freight flows," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    24. Y. H. Venus Lun & Kee‐Hung Lai & T. C. Edwin Cheng, 2008. "A Descriptive Framework for the Development and Operation of Liner Shipping Networks," Transport Reviews, Taylor & Francis Journals, vol. 29(4), pages 439-457, August.

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