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Liner shipping service optimisation with reefer containers capacity: an application to northern Europe--South America trade

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  • Ali Cheaitou
  • Pierre Cariou

Abstract

Increasing the number of vessels in a container liner service while reducing speeds, known as slow steaming strategy, has been a short-term response since 2008 to the challenges of over-capacity and the rise in bunker prices faced by shipping lines. This strategy, which reduces the fuel cost per voyage but increases the operating costs as more vessels are added to the service, is difficult to sustain when the transit time significantly affects the transportation demand. This article proposes a model applied to this situation, referred to as a case of optimal speed under semi-elastic demand, for which containerised perishable product transport is sensitive to time, while frozen and dry products are not. It investigates if slow steaming is still optimal when working to maximise the total profit on the cycle. In order to demonstrate the proposed model, a numerical application is carried out for a direct Northern Europe to East Coast of South America container service, a route selected due to the high volume of fresh products. For this application, the speed that maximises the total profit with inelastic and semi-elastic demand is then estimated for several bunker fuel prices.

Suggested Citation

  • Ali Cheaitou & Pierre Cariou, 2012. "Liner shipping service optimisation with reefer containers capacity: an application to northern Europe--South America trade," Maritime Policy & Management, Taylor & Francis Journals, vol. 39(6), pages 589-602, November.
    • Handle: RePEc:taf:marpmg:v:39:y:2012:i:6:p:589-602
    DOI: 10.1080/03088839.2012.728726
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    Cited by:

    1. Harilaos N. Psaraftis, 2019. "Speed Optimization vs Speed Reduction: the Choice between Speed Limits and a Bunker Levy," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    2. Gordon Wilmsmeier & Kevin P.B. Cullinane & Theo Notteboom & Ricardo J. Sánchez, 2012. "IAME 2011 -- contemporary studies on maritime transport in Latin America," Maritime Policy & Management, Taylor & Francis Journals, vol. 39(6), pages 549-554, November.
    3. Yan, Ran & Wang, Shuaian & Psaraftis, Harilaos N., 2021. "Data analytics for fuel consumption management in maritime transportation: Status and perspectives," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    4. Lavissière, Alexandre & Sohier, Romain & Lavissière, Mary C., 2020. "Transportation systems in the Arctic: A systematic literature review using textometry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 130-146.
    5. Thalis P. V. Zis & Harilaos N. Psaraftis, 2022. "Impacts of short-term measures to decarbonize maritime transport on perishable cargoes," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(3), pages 602-629, September.
    6. 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.
    7. 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.
    8. Achilleas Tsantis & John Mangan & Agustina Calatayud & Roberto Palacin, 2023. "Container shipping: a systematic literature review of themes and factors that influence the establishment of direct connections between countries," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(4), pages 667-697, December.
    9. 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.
    10. Harilaos N. Psaraftis, 2019. "Speed optimization versus speed reduction: Are speed limits better than a bunker levy?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(4), pages 524-542, December.
    11. 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.
    12. Guerrero, David & Thill, Jean-Claude, 2021. "Challenging the shipper's location problem in port studies: An analysis of French AOC wine shipments to the US," Journal of Transport Geography, Elsevier, vol. 91(C).
    13. Ali Cheaitou & Pierre Cariou, 2019. "Greening of maritime transportation: a multi-objective optimization approach," Annals of Operations Research, Springer, vol. 273(1), pages 501-525, February.
    14. Faury, Olivier & Cheaitou, Ali & Givry, Philippe, 2020. "Best maritime transportation option for the Arctic crude oil: A profit decision model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    15. Junayed Pasha & Maxim A. Dulebenets & Masoud Kavoosi & Olumide F. Abioye & Oluwatosin Theophilus & Hui Wang & Raphael Kampmann & Weihong Guo, 2020. "Holistic tactical-level planning in liner shipping: an exact optimization approach," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-35, December.
    16. 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.
    17. 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).
    18. 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).
    19. Fan, Yun & Behdani, Behzad & Bloemhof-Ruwaard, Jacqueline & Zuidwijk, Rob, 2019. "Flow consolidation in hinterland container transport: An analysis for perishable and dry cargo," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 128-160.
    20. Zhang, Xiunian & Lam, Jasmine Siu Lee, 2018. "Shipping mode choice in cold chain from a value-based management perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 147-167.

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