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The Vessel Schedule Recovery Problem (VSRP) – A MIP model for handling disruptions in liner shipping

Listed author(s):
  • Brouer, Berit D.
  • Dirksen, Jakob
  • Pisinger, David
  • Plum, Christian E.M.
  • Vaaben, Bo
Registered author(s):

    Containerized transport by liner shipping companies is a multi billion dollar industry carrying a major part of the world trade between suppliers and customers. The liner shipping industry has come under stress in the last few years due to the economic crisis, increasing fuel costs, and capacity outgrowing demand. The push to reduce CO2 emissions and costs have increasingly committed liner shipping to slow-steaming policies. This increased focus on fuel consumption, has illuminated the huge impacts of operational disruptions in liner shipping on both costs and delayed cargo. Disruptions can occur due to adverse weather conditions, port contingencies, and many other issues. A common scenario for recovering a schedule is to either increase the speed at the cost of a significant increase in the fuel consumption or delaying cargo. Advanced recovery options might exist by swapping two port calls or even omitting one. We present the Vessel Schedule Recovery Problem (VSRP) to evaluate a given disruption scenario and to select a recovery action balancing the trade off between increased bunker consumption and the impact on cargo in the remaining network and the customer service level. It is proven that the VSRP is NP-hard. The model is applied to four real life cases from Maersk Line and results are achieved in less than 5seconds with solutions comparable or superior to those chosen by operations managers in real life. Cost savings of up to 58% may be achieved by the suggested solutions compared to realized recoveries of the real life cases.

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    Article provided by Elsevier in its journal European Journal of Operational Research.

    Volume (Year): 224 (2013)
    Issue (Month): 2 ()
    Pages: 362-374

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    Handle: RePEc:eee:ejores:v:224:y:2013:i:2:p:362-374
    DOI: 10.1016/j.ejor.2012.08.016
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    1. Ahmad I. Z. Jarrah & Gang Yu & Nirup Krishnamurthy & Ananda Rakshit, 1993. "A Decision Support Framework for Airline Flight Cancellations and Delays," Transportation Science, INFORMS, vol. 27(3), pages 266-280, August.
    2. Benjamin G. Thengvall & Jonathan F. Bard & Gang Yu, 2003. "A Bundle Algorithm Approach for the Aircraft Schedule Recovery Problem During Hub Closures," Transportation Science, INFORMS, vol. 37(4), pages 392-407, November.
    3. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 19-39, March.
    4. Gang Yu & Michael Argüello & Gao Song & Sandra M. McCowan & Anna White, 2003. "A New Era for Crew Recovery at Continental Airlines," Interfaces, INFORMS, vol. 33(1), pages 5-22, February.
    5. Thengvall, Benjamin G. & Yu, Gang & Bard, Jonathan F., 2001. "Multiple fleet aircraft schedule recovery following hub closures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(4), pages 289-308, May.
    6. Du, Yuquan & Chen, Qiushuang & Quan, Xiongwen & Long, Lei & Fung, Richard Y.K., 2011. "Berth allocation considering fuel consumption and vessel emissions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1021-1037.
    7. Kohl, Niklas & Larsen, Allan & Larsen, Jesper & Ross, Alex & Tiourine, Sergey, 2007. "Airline disruption management—Perspectives, experiences and outlook," Journal of Air Transport Management, Elsevier, vol. 13(3), pages 149-162.
    8. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    9. Ananda Rakshit & Nirup Krishnamurthy & Gang Yu, 1996. "System Operations Advisor: A Real-Time Decision Support System for Managing Airline Operations at United Airlines," Interfaces, INFORMS, vol. 26(2), pages 50-58, April.
    10. Yan, Shangyao & Yang, Dah-Hwei, 1996. "A decision support framework for handling schedule perturbation," Transportation Research Part B: Methodological, Elsevier, vol. 30(6), pages 405-419, December.
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