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Analysis of three container routing strategies

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  • Zhen, Lu
  • Wang, Shuaian
  • Zhuge, Dan

Abstract

As containers need several weeks to be delivered to their destinations and the future container shipment demand is uncertain, a myopic strategy for container routing that maximizes the immediate profit may lead to insufficient remaining capacity for transporting more profitable containers in the future. This study conducts a theoretical analysis to compare three container routing strategies, i.e., (i) a widely used myopic strategy, (ii) a non-myopic heuristic routing strategy that incorporates information about the future demand distribution, and (iii) a strategy that assumes future demand is known. Then a practical non-myopic heuristic container routing strategy is developed for practical purposes to increase the profit of liner shipping companies. Extensive numerical experiments show that the proposed non-myopic heuristic container routing strategy brings in an extra of 2%–3% profit over the myopic strategy.

Suggested Citation

  • Zhen, Lu & Wang, Shuaian & Zhuge, Dan, 2017. "Analysis of three container routing strategies," International Journal of Production Economics, Elsevier, vol. 193(C), pages 259-271.
    • Handle: RePEc:eee:proeco:v:193:y:2017:i:c:p:259-271
    DOI: 10.1016/j.ijpe.2017.07.011
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    References listed on IDEAS

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