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The Robust Bulk Ship Routing Problem with Batched Cargo Selection

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  • Wu, Lingxiao
  • Wang, Shuaian
  • Laporte, Gilbert

Abstract

Maritime transportation forms the backbone of the world merchandise trade. In this paper, we consider a problem that combines three interconnected subproblems in tramp shipping: the fleet adjustment problem, the cargo selection problem, and the ship routing problem. For cargo selection, we consider the decision behaviors under the setting of Contract of Affreightment (COA), in which cargoes should be rejected or accepted as a batch. In view of the uncertainties observed in maritime transportation, we formulate the problem in a robust way so that the solutions can protect the profitability of shipping companies against variations in voyage costs. We first provide compact mixed integer linear programming formulations for the problem and then convert them into a strengthened set covering model. A tailored branch-and-price-and-cut algorithm is developed to solve the set covering model. The algorithm is enhanced by a multi-cut generation technique aimed at tightening the lower bounds and a primal heuristic aimed at finding high-quality upper bounds. Extensive computational results show that our algorithm yields optimal or near-optimal solutions to realistic instances within short computing times and that the enhancement techniques significantly improve the efficiency of the algorithm.

Suggested Citation

  • Wu, Lingxiao & Wang, Shuaian & Laporte, Gilbert, 2021. "The Robust Bulk Ship Routing Problem with Batched Cargo Selection," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 124-159.
  • Handle: RePEc:eee:transb:v:143:y:2021:i:c:p:124-159
    DOI: 10.1016/j.trb.2020.11.003
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    2. 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).
    3. Eghbal Akhlaghi, Vahid & Campbell, Ann Melissa, 2022. "The two-echelon island fuel distribution problem," European Journal of Operational Research, Elsevier, vol. 302(3), pages 999-1017.
    4. Duan, Gang & Aghalari, Amin & Chen, Li & Marufuzzaman, Mohammad & Ma, Junfeng, 2021. "Vessel routing optimization for floating macro-marine debris collection in the ocean considering dynamic velocity and direction," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    5. Santos, A.M.P. & Fagerholt, Kjetil & Laporte, Gilbert & Guedes Soares, C., 2022. "A stochastic optimization approach for the supply vessel planning problem under uncertain demand," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 209-228.

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