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Implementing the street-turn strategy by an optimization model

Author

Listed:
  • Luca Deidda
  • Massimo Di Francesco
  • Alessandro Olivo
  • Paola Zuddas

Abstract

The street-turn option represents a major strategy for the profitability of shipping companies supplying container-based transportation. This option consists in the distribution of trucks delivering loaded containers to import customers, the subsequent allocation of empty containers to export customers and the final dispatch of loaded containers to departure ports. However, the determination of truck routes is a time-consuming activity for shipping companies, because available information can suddenly change while they are making their decisions. In this paper we aim to propose a decision support tool to quickly determine truck routes and implement the street-turn strategy. This tool is based on an optimization model determining the allocation of empty containers between customers and defining truck routes in a post-optimization phase. We compare routes resulting from the proposed model to the decisions of a real shipping company. Early results indicate that this approach represents a promising support for shipping companies in dealing with street-turns. It can significantly reduce distances travelled by trucks and times requested to determine routes.

Suggested Citation

  • Luca Deidda & Massimo Di Francesco & Alessandro Olivo & Paola Zuddas, 2008. "Implementing the street-turn strategy by an optimization model," Maritime Policy & Management, Taylor & Francis Journals, vol. 35(5), pages 503-516, October.
    • Handle: RePEc:taf:marpmg:v:35:y:2008:i:5:p:503-516
    DOI: 10.1080/03088830802352145
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    Cited by:

    1. Koichi Shintani & Rob Konings & Etsuko Nishimura & Akio Imai, 2020. "The impact of foldable containers on the cost of empty container relocation in the hinterland of seaports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 68-101, March.
    2. Sarmadi, Kamran & Amiri-Aref, Mehdi & Dong, Jing-Xin & Hicks, Christian, 2020. "Integrated strategic and operational planning of dry port container networks in a stochastic environment," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 132-164.
    3. Escudero-Santana, Alejandro & Muñuzuri, Jesús & Cortés, Pablo & Onieva, Luis, 2021. "The one container drayage problem with soft time windows," Research in Transportation Economics, Elsevier, vol. 90(C).
    4. Yang, Ruina & Yu, Mingzhu & Lee, Chung-Yee & Du, Yuquan, 2021. "Contracting in ocean transportation with empty container repositioning under asymmetric information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    5. Yu, Mingzhu & Fransoo, Jan C. & Lee, Chung-Yee, 2018. "Detention decisions for empty containers in the hinterland transportation system," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 188-208.

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