IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v130y2019icp230-247.html
   My bibliography  Save this article

Canal effects on a liner hub location problem

Author

Listed:
  • Zheng, Jianfeng
  • Zhang, Wenlong
  • Qi, Jingwen
  • Wang, Shuaian

Abstract

The Panama Canal and the Suez Canal are two key canals around the world, both of which have a great number of connections with other ports because of various liner shipping service routes. Liner carriers can facilitate container transshipment operations by opening hub ports around the canal. This paper aims to investigate canal effects on hub location in liner shipping. Different from the conventional hub location problem with fixed costs, our hub location problem with fixed costs can be reduced to a p-median problem, while addressing the research issue considered in the conventional hub location problem with fixed costs. In order to describe canal effects, besides its geographic location, this paper mainly considers three aspects: canal toll, canal congestion, and ship capacity limitation when passing through a canal. Several binary linear programming models are mainly developed for our hub location problem considering canal effects. Moreover, a theoretical analysis is also developed for simplified hub location around a canal. Numerical results show that ship capacity limitation has a bigger impact on hub location around a canal, as compared with canal toll and canal congestion. Such phenomenon can be partly supported by the theoretical analysis. This insight to some extent justifies the recent canal expansion projects to widen or add a new lane waterway for the Panama Canal and the Suez Canal, respectively.

Suggested Citation

  • Zheng, Jianfeng & Zhang, Wenlong & Qi, Jingwen & Wang, Shuaian, 2019. "Canal effects on a liner hub location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 230-247.
  • Handle: RePEc:eee:transe:v:130:y:2019:i:c:p:230-247
    DOI: 10.1016/j.tre.2019.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554519303515
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alumur, Sibel & Kara, Bahar Y., 2008. "Network hub location problems: The state of the art," European Journal of Operational Research, Elsevier, vol. 190(1), pages 1-21, October.
    2. A. J. Goldman, 1969. "Optimal Locations for Centers in a Network," Transportation Science, INFORMS, vol. 3(4), pages 352-360, November.
    3. Zheng, Jianfeng & Qi, Jingwen & Sun, Zhuo & Li, Feng, 2018. "Community structure based global hub location problem in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 1-19.
    4. Fagerholt, Kjetil, 2001. "Ship scheduling with soft time windows: An optimisation based approach," European Journal of Operational Research, Elsevier, vol. 131(3), pages 559-571, June.
    5. 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.
    6. Richa Agarwal & Özlem Ergun, 2008. "Ship Scheduling and Network Design for Cargo Routing in Liner Shipping," Transportation Science, INFORMS, vol. 42(2), pages 175-196, May.
    7. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2014. "Impact analysis of maritime cabotage legislations on liner hub-and-spoke shipping network design," European Journal of Operational Research, Elsevier, vol. 234(3), pages 874-884.
    8. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2015. "Liner hub-and-spoke shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 32-48.
    9. Campbell, James F., 1994. "Integer programming formulations of discrete hub location problems," European Journal of Operational Research, Elsevier, vol. 72(2), pages 387-405, January.
    10. Wang, Shuaian & Meng, Qiang & Liu, Zhiyuan, 2013. "Containership scheduling with transit-time-sensitive container shipment demand," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 68-83.
    11. Gelareh, Shahin & Pisinger, David, 2011. "Fleet deployment, network design and hub location of liner shipping companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 947-964.
    12. Meng, Qiang & Wang, Shuaian, 2011. "Liner shipping service network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 695-708, September.
    13. Dulebenets, Maxim A., 2018. "A comprehensive multi-objective optimization model for the vessel scheduling problem in liner shipping," International Journal of Production Economics, Elsevier, vol. 196(C), pages 293-318.
    14. Wang, Shuaian & Meng, Qiang, 2012. "Robust schedule design for liner shipping services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1093-1106.
    15. Kara, Bahar Y. & Tansel, Barbaros C., 2000. "On the single-assignment p-hub center problem," European Journal of Operational Research, Elsevier, vol. 125(3), pages 648-655, September.
    16. Chen, Jingxu & Jia, Shuai & Wang, Shuaian & Liu, Zhiyuan, 2018. "Subloop-based reversal of port rotation directions for container liner shipping network alteration," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 336-361.
    17. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    18. Martinez, Camil & Steven, Adams B. & Dresner, Martin, 2016. "East Coast vs. West Coast: The impact of the Panama Canal’s expansion on the routing of Asian imports into the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 274-289.
    19. Dulebenets, Maxim A. & Ozguven, Eren Erman, 2017. "Vessel scheduling in liner shipping: Modeling transport of perishable assets," International Journal of Production Economics, Elsevier, vol. 184(C), pages 141-156.
    20. Gelareh, Shahin & Nickel, Stefan & Pisinger, David, 2010. "Liner shipping hub network design in a competitive environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 991-1004, November.
    21. B Y Kara & B C Tansel, 2003. "The single-assignment hub covering problem: Models and linearizations," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(1), pages 59-64, January.
    22. Zheng, Jianfeng & Yang, Dong, 2016. "Hub-and-spoke network design for container shipping along the Yangtze River," Journal of Transport Geography, Elsevier, vol. 55(C), pages 51-57.
    23. Berit D. Brouer & J. Fernando Alvarez & Christian E. M. Plum & David Pisinger & Mikkel M. Sigurd, 2014. "A Base Integer Programming Model and Benchmark Suite for Liner-Shipping Network Design," Transportation Science, INFORMS, vol. 48(2), pages 281-312, May.
    24. Qi, Xiangtong & Song, Dong-Ping, 2012. "Minimizing fuel emissions by optimizing vessel schedules in liner shipping with uncertain port times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 863-880.
    25. Karlaftis, Matthew G. & Kepaptsoglou, Konstantinos & Sambracos, Evangelos, 2009. "Containership routing with time deadlines and simultaneous deliveries and pick-ups," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 210-221, January.
    26. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    27. Wang, Hua & Zhang, Yiru & Meng, Qiang, 2018. "How will the opening of the Northern Sea Route influence the Suez Canal Route? An empirical analysis with discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 75-89.
    28. Sun, Zhuo & Zheng, Jianfeng, 2016. "Finding potential hub locations for liner shipping," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 750-761.
    29. Wang, Shuaian & Meng, Qiang, 2012. "Sailing speed optimization for container ships in a liner shipping network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 701-714.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Hub location; Liner shipping; Canal effects;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:130:y:2019:i:c:p:230-247. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.