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Global intermodal tank container management for the chemical industry

Author

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  • Erera, Alan L.
  • Morales, Juan C.
  • Savelsbergh, Martin

Abstract

The scale of the global chemical industry is enormous: in 2003, the total value of global production exceeded US$1.7 trillion. International logistics is especially crucial to the high-value chemicals industry, since raw materials sources, production facilities, and consumer markets are distributed globally. Fluctuating demand, imbalanced trade flows, and expensive transportation equipment necessitate dynamic asset management. This paper focuses on asset management problems faced by tank container operators, and formulates an operational tank container management problem as a large-scale multi-commodity flow problem on a time-discretized network. By integrating container routing and repositioning decisions in a single model, total operating costs and fleet sizes can be reduced. A computational study verifies this hypothesis.

Suggested Citation

  • Erera, Alan L. & Morales, Juan C. & Savelsbergh, Martin, 2005. "Global intermodal tank container management for the chemical industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 551-566, November.
    • Handle: RePEc:eee:transe:v:41:y:2005:i:6:p:551-566
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    Citations

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    Cited by:

    1. Goh, Shao Hung & Chan, Yuxian, 2016. "Operational shadow pricing in back haul container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 92(C), pages 3-15.
    2. Shan, Wenxuan & Peng, Zixuan & Liu, Jiaming & Yao, Baozhen & Yu, Bin, 2020. "An exact algorithm for inland container transportation network design," Transportation Research Part B: Methodological, Elsevier, vol. 135(C), pages 41-82.
    3. Lam, Jasmine Siu Lee & Gu, Yimiao, 2016. "A market-oriented approach for intermodal network optimisation meeting cost, time and environmental requirements," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 266-274.
    4. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    5. Dong-Ping Song & Qing Zhang, 2011. "Optimal Inventory Control for Empty Containers in a Port with Random Demands and Repositioning Delays," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 14, Edward Elgar Publishing.
    6. Wang, Shuaian & Liu, Zhiyuan & Bell, Michael G.H., 2015. "Profit-based maritime container assignment models for liner shipping networks," Transportation Research Part B: Methodological, Elsevier, vol. 72(C), pages 59-76.
    7. Alan L. Erera & Juan C. Morales & Martin Savelsbergh, 2009. "Robust Optimization for Empty Repositioning Problems," Operations Research, INFORMS, vol. 57(2), pages 468-483, April.
    8. Song, Dong-Ping & Dong, Jing-Xin, 2012. "Cargo routing and empty container repositioning in multiple shipping service routes," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1556-1575.
    9. Xing, Xinjie & Song, Dongping & Qiu, Chengfeng & Drake, Paul R. & Zhan, Yuanzhu, 2023. "Joint tank container demurrage policy and flow optimisation using a progressive hedging algorithm with expanded time-space network," European Journal of Operational Research, Elsevier, vol. 307(2), pages 663-679.
    10. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T., 2017. "A metaheuristic for the multimodal network flow problem with product quality preservation and empty repositioning," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 321-344.
    11. Rafael Epstein & Andres Neely & Andres Weintraub & Fernando Valenzuela & Sergio Hurtado & Guillermo Gonzalez & Alex Beiza & Mauricio Naveas & Florencio Infante & Fernando Alarcon & Gustavo Angulo & Cr, 2012. "A Strategic Empty Container Logistics Optimization in a Major Shipping Company," Interfaces, INFORMS, vol. 42(1), pages 5-16, February.
    12. Long, Yin & Lee, Loo Hay & Chew, Ek Peng, 2012. "The sample average approximation method for empty container repositioning with uncertainties," European Journal of Operational Research, Elsevier, vol. 222(1), pages 65-75.
    13. Jia Shu & Miao Song, 2014. "Dynamic Container Deployment: Two-Stage Robust Model, Complexity, and Computational Results," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 135-149, February.
    14. Khodakaram Salimifard & Sara Bigharaz, 2022. "The multicommodity network flow problem: state of the art classification, applications, and solution methods," Operational Research, Springer, vol. 22(1), pages 1-47, March.
    15. Hrabec, Dušan & Hvattum, Lars Magnus & Hoff, Arild, 2022. "The value of integrated planning for production, inventory, and routing decisions: A systematic review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 248(C).
    16. Li, Ling & Wang, Bin & Cook, David P., 2015. "Reprint of “Enhancing green supply chain initiatives via empty container reuse”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 109-123.
    17. Xing, Xinjie & Drake, Paul R. & Song, Dongping & Zhou, Yang, 2019. "Tank Container Operators’ profit maximization through dynamic operations planning integrated with the quotation-booking process under multiple uncertainties," European Journal of Operational Research, Elsevier, vol. 274(3), pages 924-946.
    18. Meisel, Frank & Kirschstein, Thomas & Bierwirth, Christian, 2013. "Integrated production and intermodal transportation planning in large scale production–distribution-networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 62-78.
    19. Hilde Heggen & Yves Molenbruch & An Caris & Kris Braekers, 2019. "Intermodal Container Routing: Integrating Long-Haul Routing and Local Drayage Decisions," Sustainability, MDPI, vol. 11(6), pages 1-36, March.
    20. Song, Dong-Ping & Dong, Jing-Xin, 2011. "Effectiveness of an empty container repositioning policy with flexible destination ports," Transport Policy, Elsevier, vol. 18(1), pages 92-101, January.
    21. Budhi S. Wibowo & Jan C. Fransoo, 2023. "Performance analysis of a drop-swap terminal to mitigate truck congestion at chemical sites," Flexible Services and Manufacturing Journal, Springer, vol. 35(2), pages 416-454, June.
    22. Berit Dangaard Brouer & Christian Vad Karsten & David Pisinger, 2017. "Optimization in liner shipping," 4OR, Springer, vol. 15(1), pages 1-35, March.
    23. Berit Dangaard Brouer & Christian Vad Karsten & David Pisinger, 2018. "Optimization in liner shipping," Annals of Operations Research, Springer, vol. 271(1), pages 205-236, December.
    24. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T. & Raoufi, R., 2014. "Multimodal freight transportation planning: A literature review," European Journal of Operational Research, Elsevier, vol. 233(1), pages 1-15.
    25. Li, Ling & Wang, Bin & Cook, David P., 2014. "Enhancing green supply chain initiatives via empty container reuse," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 190-204.

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