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Network Design and Capacity Exchange for Liner Alliances with Fixed and Variable Container Demands

Author

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  • Jianfeng Zheng

    () (Transportation Management College, Dalian Maritime University, Dalian 116026, China)

  • Ziyou Gao

    () (Institute of System Science, School of Traffic and Transportation, Beijing Jiaotong University, Beijing 100044, China)

  • Dong Yang

    () (China Waterborne Transport Research Institute, Beijing 100088, China)

  • Zhuo Sun

    () (Transportation Management College, Dalian Maritime University, Dalian 116026, China)

Abstract

In liner shipping, liner carriers operate and cooperate as an alliance by sharing (or exchanging) ship capacities in order to compete with other liner carriers. Because of the long-term or short-term shipment contracts signed by shippers, the container demands transported by liner carriers can be classified as fixed demands or variable demands, respectively. We present an integrated mixed-integer linear programming model to solve the relevant problems on liner alliances including shipping network design with ship fleet deployment, allocation of the variable demands, capacities exchanged among liner carriers, and container routing. In our model, liner carriers are guided to pursue an optimal collaborative solution. As an added incentive, the capacity exchange costs are paid to liner carriers for sharing capacities and following the optimal collaborative solution. The computation of capacity exchange costs is obtained by using the inverse optimization technique. Finally, the numerical experiments for Asia-Europe-Oceania shipping services are discussed.

Suggested Citation

  • Jianfeng Zheng & Ziyou Gao & Dong Yang & Zhuo Sun, 2015. "Network Design and Capacity Exchange for Liner Alliances with Fixed and Variable Container Demands," Transportation Science, INFORMS, vol. 49(4), pages 886-899, November.
  • Handle: RePEc:inm:ortrsc:v:49:y:2015:i:4:p:886-899
    DOI: 10.1287/trsc.2014.0572
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    References listed on IDEAS

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    Cited by:

    1. Minghui Lai & Weili Xue & Qian Hu, 2019. "An Ascending Auction for Freight Forwarder Collaboration in Capacity Sharing," Transportation Science, INFORMS, vol. 53(4), pages 1175-1195, July.
    2. Hongchu Yu & Zhixiang Fang & Guojun Peng & Mingxiang Feng, 2017. "Revealing the Linkage Network Dynamic Structures of Chinese Maritime Ports through Automatic Information System Data," Sustainability, MDPI, Open Access Journal, vol. 9(10), pages 1-1, October.
    3. González Laxe, Fernando, 2018. "El transporte marítimo y los desarrollos portuarios. El nuevo rol de las alianzas marítimas en el tablero internacional/The Maritime Transport and the Port Development. The New Role of the Maritime Al," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 647-668, Septiembr.
    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. 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. Lai, Minghui & Cai, Xiaoqiang & Hu, Qian, 2017. "An iterative auction for carrier collaboration in truckload pickup and delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 60-80.
    7. Liu, Jiaguo & Wang, Junjin, 2019. "Carrier alliance incentive analysis and coordination in a maritime transport chain based on service competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 333-355.
    8. Tan, Zhijia & Meng, Qiang & Wang, Fan & Kuang, Hai-bo, 2018. "Strategic integration of the inland port and shipping service for the ocean carrier," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 90-109.
    9. Zhijia Tan & Yadong Wang & Qiang Meng & Zhixue Liu, 2018. "Joint Ship Schedule Design and Sailing Speed Optimization for a Single Inland Shipping Service with Uncertain Dam Transit Time," Service Science, INFORMS, vol. 52(6), pages 1570-1588, December.
    10. 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.
    11. Zhen, Lu & Hu, Yi & Wang, Shuaian & Laporte, Gilbert & Wu, Yiwei, 2019. "Fleet deployment and demand fulfillment for container shipping liners," Transportation Research Part B: Methodological, Elsevier, vol. 120(C), pages 15-32.
    12. Lai, Minghui & Cai, Xiaoqiang & Li, Xiang, 2017. "Mechanism design for collaborative production-distribution planning with shipment consolidation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 137-159.
    13. 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.

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