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Cascading effects, network configurations and optimal transshipment volumes in liner shipping

Author

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  • Pierre Cariou

    (Information and Finance department, KEDGE Business School, Rue Antoine Bourdelle, Domaine de Luminy, BP 921, 13288 Marseille Cedex 9, France)

  • Ali Cheaitou

    (Industrial Engineering and Engineering Management Department, College of Engineering, University of Sharjah, Sharjah, 27272, United Arab Emirates)

Abstract

As a consequence of the delivery of large container ships and of the drop in demand since 2008, companies are struggling with low freight rates. In addition, newly delivered container ships have been deployed on the main east–west trades, whereas medium-sized vessels have been pushed to smaller sectors through a phenomenon known as the cascading effect. This article investigates how this effect might lead liner companies to modify their services, such as including additional stops at major hubs. This article proposes a model that factors in potential changes in network configuration from direct to indirect services, and then tests the model with an empirical study of northern Europe/South American services that adds in a call at Tangier or Algeciras to the schedule. The results show that the optimal network configuration depends on vessel sizes and the transshipment volumes to be collected at the hub.

Suggested Citation

  • Pierre Cariou & Ali Cheaitou, 2014. "Cascading effects, network configurations and optimal transshipment volumes in liner shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 16(3), pages 321-342, September.
    • Handle: RePEc:pal:marecl:v:16:y:2014:i:3:p:321-342
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    Citations

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    Cited by:

    1. Nguyen Khoi Tran & Hans-Dietrich Haasis & Tobias Buer, 2017. "Container shipping route design incorporating the costs of shipping, inland/feeder transport, inventory and CO2 emission," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(4), pages 667-694, December.
    2. 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.
    3. Ziaul Haque Munim & Hans-Joachim Schramm, 2017. "Forecasting container shipping freight rates for the Far East – Northern Europe trade lane," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(1), pages 106-125, March.
    4. Sdoukopoulos, Eleftherios & Boile, Maria, 2020. "Port-hinterland concept evolution: A critical review," Journal of Transport Geography, Elsevier, vol. 86(C).

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