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The economic effects of center-to-center directs on hub-and-spoke networks for air express common carriers

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  • Lin, Cheng-Chang
  • Lin, Yu-Jen
  • Lin, Dung-Ying

Abstract

Integrated Global air express common carriers offer time-guaranteed freight delivery for international shippers. The hub-and-spoke network and its variations consolidate partial loads creating an efficient network structure that is widely used. We compare the economic effects of hub-and-spoke networks with center-to-center directs on the carrier's operations. Carriers were allowed to simultaneously load and off-load freight at each intermediate center. This permits multiple usage of aircraft carrying capacity. The model of hub-and-spoke networks is formulated as an integer program with center directs in the paths, evaluating the results against the Federal Express AsiaOne express network. Using the same aircraft configurations that FedEx uses, our solutions required a smaller fleet than hub-and-spoke with stopovers.

Suggested Citation

  • Lin, Cheng-Chang & Lin, Yu-Jen & Lin, Dung-Ying, 2003. "The economic effects of center-to-center directs on hub-and-spoke networks for air express common carriers," Journal of Air Transport Management, Elsevier, vol. 9(4), pages 255-265.
    • Handle: RePEc:eee:jaitra:v:9:y:2003:i:4:p:255-265
    DOI: 10.1016/S0969-6997(03)00019-X
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    References listed on IDEAS

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    1. O'Kelly, M. E. & Bryan, D. L., 1998. "Hub location with flow economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 32(8), pages 605-616, November.
    2. Kuby, Michael J. & Gray, Robert Gordon, 1993. "The hub network design problem with stopovers and feeders: The case of Federal Express," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(1), pages 1-12, January.
    3. Lin, Cheng-Chang, 2001. "The freight routing problem of time-definite freight delivery common carriers," Transportation Research Part B: Methodological, Elsevier, vol. 35(6), pages 525-547, July.
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    Citations

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    Cited by:

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    3. G. Guastaroba & M. G. Speranza & D. Vigo, 2016. "Intermediate Facilities in Freight Transportation Planning: A Survey," Transportation Science, INFORMS, vol. 50(3), pages 763-789, August.
    4. Yu, Shunan & Yang, Zhongzhen & Yu, Bin, 2017. "Air express network design based on express path choices – Chinese case study," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 73-80.
    5. Bowen, John T., 2012. "A spatial analysis of FedEx and UPS: hubs, spokes, and network structure," Journal of Transport Geography, Elsevier, vol. 24(C), pages 419-431.
    6. Hsu, Chaug-Ing & Chen, Yu-Hua & Chen, Wei-Ting, 2013. "A study on airlines' differentiated cargo service strategies," Transport Policy, Elsevier, vol. 25(C), pages 101-110.
    7. Oktal, Hakan & Ozger, Asuman, 2013. "Hub location in air cargo transportation: A case study," Journal of Air Transport Management, Elsevier, vol. 27(C), pages 1-4.
    8. Carman K.M. Lee & Shuzhu Zhang & Kam K.H. Ng, 2019. "Design of An Integration Model for Air Cargo Transportation Network Design and Flight Route Selection," Sustainability, MDPI, vol. 11(19), pages 1-12, September.

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