IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v47y2011i6p947-964.html
   My bibliography  Save this article

Fleet deployment, network design and hub location of liner shipping companies

Author

Listed:
  • Gelareh, Shahin
  • Pisinger, David

Abstract

A mixed integer linear programming formulation is proposed for the simultaneous design of network and fleet deployment of a deep-sea liner service provider. The underlying network design problem is based on a 4-index (5-index by considering capacity type) formulation of the hub location problem which are known for their tightness. The demand is elastic in the sense that the service provider can accept any fraction of the origin–destination demand. We then propose a primal decomposition method to solve instances of the problem to optimality. Numerical results confirm superiority of our approach in comparison with a general-purpose mixed integer programming solver.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:transe:v:47:y:2011:i:6:p:947-964
    DOI: 10.1016/j.tre.2011.03.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554511000391
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2011.03.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. R Aversa & R C Botter & H E Haralambides & H T Y Yoshizaki, 2005. "A Mixed Integer Programming Model on the Location of a Hub Port in the East Coast of South America," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 7(1), pages 1-18, March.
    2. Imai, Akio & Shintani, Koichi & Papadimitriou, Stratos, 2009. "Multi-port vs. Hub-and-Spoke port calls by containerships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 740-757, September.
    3. Shintani, Koichi & Imai, Akio & Nishimura, Etsuko & Papadimitriou, Stratos, 2007. "The container shipping network design problem with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(1), pages 39-59, January.
    4. J E Korsvik & K Fagerholt & G Laporte, 2010. "A tabu search heuristic for ship routing and scheduling," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 594-603, April.
    5. Gelareh, Shahin & Meng, Qiang, 2010. "A novel modeling approach for the fleet deployment problem within a short-term planning horizon," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(1), pages 76-89, January.
    6. Poojari, C.A. & Beasley, J.E., 2009. "Improving benders decomposition using a genetic algorithm," European Journal of Operational Research, Elsevier, vol. 199(1), pages 89-97, November.
    7. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    8. Alizadeh, Amir H. & Nomikos, Nikos K., 2007. "Investment timing and trading strategies in the sale and purchase market for ships," Transportation Research Part B: Methodological, Elsevier, vol. 41(1), pages 126-143, January.
    9. T. L. Magnanti & R. T. Wong, 1981. "Accelerating Benders Decomposition: Algorithmic Enhancement and Model Selection Criteria," Operations Research, INFORMS, vol. 29(3), pages 464-484, June.
    10. 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.
    11. Ronen, David, 1983. "Cargo ships routing and scheduling: Survey of models and problems," European Journal of Operational Research, Elsevier, vol. 12(2), pages 119-126, February.
    12. Nikiforos A. Papadakis & Anastassios N. Perakis, 1989. "A nonlinear approach to the multiorigin, multidestination fleet deployment problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 36(4), pages 515-528, August.
    13. B. J. Powell & A .N. Perkins, 1997. "Fleet deployment optimization for liner shipping: an integer programming model," Maritime Policy & Management, Taylor & Francis Journals, vol. 24(2), pages 183-192, January.
    14. Seong-Cheol Cho & A. N. Perakis, 2001. "An improved formulation for bulk cargo ship scheduling with a single loading port," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(4), pages 339-345, October.
    15. Imai, Akio & Nishimura, Etsuko & Papadimitriou, Stratos & Liu, Miaojia, 2006. "The economic viability of container mega-ships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(1), pages 21-41, January.
    16. J. Benders, 2005. "Partitioning procedures for solving mixed-variables programming problems," Computational Management Science, Springer, vol. 2(1), pages 3-19, January.
    17. 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.
    18. Arnt-Gunnar Lium & Teodor Gabriel Crainic & Stein W. Wallace, 2009. "A Study of Demand Stochasticity in Service Network Design," Transportation Science, INFORMS, vol. 43(2), pages 144-157, May.
    19. Lihui Bai & Paul A. Rubin, 2009. "Combinatorial Benders Cuts for the Minimum Tollbooth Problem," Operations Research, INFORMS, vol. 57(6), pages 1510-1522, December.
    20. Ronen, David, 1993. "Ship scheduling: The last decade," European Journal of Operational Research, Elsevier, vol. 71(3), pages 325-333, December.
    21. Choong, Sook Tying & Cole, Michael H. & Kutanoglu, Erhan, 2002. "Empty container management for intermodal transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(6), pages 423-438, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christiansen, Marielle & Fagerholt, Kjetil & Nygreen, Bjørn & Ronen, David, 2013. "Ship routing and scheduling in the new millennium," European Journal of Operational Research, Elsevier, vol. 228(3), pages 467-483.
    2. Qiang Meng & Shuaian Wang & Henrik Andersson & Kristian Thun, 2014. "Containership Routing and Scheduling in Liner Shipping: Overview and Future Research Directions," Transportation Science, INFORMS, vol. 48(2), pages 265-280, May.
    3. 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.
    4. Gelareh, Shahin & Nickel, Stefan, 2011. "Hub location problems in transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1092-1111.
    5. 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.
    6. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship fleet deployment with container transshipment operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 470-484.
    7. Zheng, Jianfeng & Sun, Zhuo & Zhang, Fangjun, 2016. "Measuring the perceived container leasing prices in liner shipping network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 123-140.
    8. Sun, Zhuo & Zheng, Jianfeng, 2016. "Finding potential hub locations for liner shipping," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 750-761.
    9. Meng, Qiang & Wang, Tingsong & Wang, Shuaian, 2012. "Short-term liner ship fleet planning with container transshipment and uncertain container shipment demand," European Journal of Operational Research, Elsevier, vol. 223(1), pages 96-105.
    10. Wang, Shuaian & Meng, Qiang & Sun, Zhuo, 2013. "Container routing in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 1-7.
    11. Xiang, Xi & Xu, Xiaowei & Liu, Changchun & Jia, Shuai, 2024. "Liner fleet deployment and empty container repositioning under demand uncertainty: A robust optimization approach," Transportation Research Part B: Methodological, Elsevier, vol. 190(C).
    12. Wang, Tingsong & Meng, Qiang & Wang, Shuaian & Tan, Zhijia, 2013. "Risk management in liner ship fleet deployment: A joint chance constrained programming model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 1-12.
    13. Nguyen Khoi Tran & Hans-Dietrich Haasis & Tobias Buer, 2017. "Container shipping route design incorporating the costs of shipping, inland/feeder transport, inventory and CO2 emission," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(4), pages 667-694, December.
    14. Manuel Herrera & Per J. Agrell & Casiano Manrique-de-Lara-Peñate & Lourdes Trujillo, 2017. "Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal," Annals of Operations Research, Springer, vol. 253(2), pages 845-869, June.
    15. Qiang Meng & Tingsong Wang, 2010. "A chance constrained programming model for short-term liner ship fleet planning problems," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(4), pages 329-346, July.
    16. 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.
    17. 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.
    18. Wang, Hua & Wang, Shuaian & Meng, Qiang, 2014. "Simultaneous optimization of schedule coordination and cargo allocation for liner container shipping networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 261-273.
    19. Qiang Meng & Tingsong Wang & Shuaian Wang, 2015. "Multi-period liner ship fleet planning with dependent uncertain container shipment demand," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(1), pages 43-67, January.
    20. 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.

    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:47:y:2011:i:6:p:947-964. See general information about how to correct material in RePEc.

    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 bibliographic 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.

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

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.