IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v48y2014i2p281-312.html
   My bibliography  Save this article

A Base Integer Programming Model and Benchmark Suite for Liner-Shipping Network Design

Author

Listed:
  • Berit D. Brouer

    () (DTU Management Engineering, Technical University of Denmark, 2800 Kgs. Lyngby, Denmark)

  • J. Fernando Alvarez

    () (Business Optimization, Uptimize!, Gøteborggata 9, Oslo 0566, Norway)

  • Christian E. M. Plum

    () (DTU Management Engineering, Technical University of Denmark; and Maersk Line, Esplanaden 50, København K., Denmark)

  • David Pisinger

    () (DTU Management Engineering, Technical University of Denmark, 2800 Kgs. Lyngby, Denmark)

  • Mikkel M. Sigurd

    () (Maersk Line, Esplanaden 50, 1098 København K., Denmark)

Abstract

The liner-shipping network design problem is to create a set of nonsimple cyclic sailing routes for a designated fleet of container vessels that jointly transports multiple commodities. The objective is to maximize the revenue of cargo transport while minimizing the costs of operation. The potential for making cost-effective and energy-efficient liner-shipping networks using operations research (OR) is huge and neglected. The implementation of logistic planning tools based upon OR has enhanced performance of airlines, railways, and general transportation companies, but within the field of liner shipping, applications of OR are scarce. We believe that access to domain knowledge and data is a barrier for researchers to approach the important liner-shipping network design problem. The purpose of the benchmark suite and the paper at hand is to provide easy access to the domain and the data sources of liner shipping for OR researchers in general. We describe and analyze the liner-shipping domain applied to network design and present a rich integer programming model based on services that constitute the fixed schedule of a liner shipping company. We prove the liner-shipping network design problem to be strongly NP-hard. A benchmark suite of data instances to reflect the business structure of a global liner shipping network is presented. The design of the benchmark suite is discussed in relation to industry standards, business rules, and mathematical programming. The data are based on real-life data from the largest global liner-shipping company, Maersk Line, and supplemented by data from several industry and public stakeholders. Computational results yielding the first best known solutions for six of the seven benchmark instances is provided using a heuristic combining tabu search and heuristic column generation.

Suggested Citation

  • 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.
  • Handle: RePEc:inm:ortrsc:v:48:y:2014:i:2:p:281-312
    DOI: 10.1287/trsc.2013.0471
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.2013.0471
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Sambracos, E. & Paravantis, J. A. & Tarantilis, C. D. & Kiranoudis, C. T., 2004. "Dispatching of small containers via coastal freight liners: The case of the Aegean Sea," European Journal of Operational Research, Elsevier, vol. 152(2), pages 365-381, January.
    3. Krishan Rana & R. G. Vickson, 1991. "Routing Container Ships Using Lagrangean Relaxation and Decomposition," Transportation Science, INFORMS, vol. 25(3), pages 201-214, August.
    4. Kjetil Fagerholt & Trond A. V. Johnsen & Haakon Lindstad, 2009. "Fleet deployment in liner shipping: a case study," Maritime Policy & Management, Taylor & Francis Journals, vol. 36(5), pages 397-409, October.
    5. Kjetil Fagerholt *, 2004. "Designing optimal routes in a liner shipping problem," Maritime Policy & Management, Taylor & Francis Journals, vol. 31(4), pages 259-268, October.
    6. 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.
    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. Marius M. Solomon, 1987. "Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints," Operations Research, INFORMS, vol. 35(2), pages 254-265, April.
    9. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 19-39, March.
    10. Meng, Qiang & Wang, Shuaian, 2012. "Liner ship fleet deployment with week-dependent container shipment demand," European Journal of Operational Research, Elsevier, vol. 222(2), pages 241-252.
    11. Notteboom, Theo E. & Vernimmen, Bert, 2009. "The effect of high fuel costs on liner service configuration in container shipping," Journal of Transport Geography, Elsevier, vol. 17(5), pages 325-337.
    Full references (including those not matched with items on IDEAS)

    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:inm:ortrsc:v:48:y:2014:i:2:p:281-312. 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: (Matthew Walls). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    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.