IDEAS home Printed from https://ideas.repec.org/a/kap/netspa/v14y2014i3p379-408.html
   My bibliography  Save this article

The Accumulation of Empty Containers in Urban Areas: Policy Implications from a Stochastic Formulation

Author

Listed:
  • Noel Pérez-Rodríguez
  • Jose Holguín-Veras

Abstract

The accumulation of empty cargo containers in urban areas is an important issue for communities and policy makers as these containers seem to restrict the use of valuable land and diminish the quality of life of communities close to ports and storage depots. Different reasons have been offered to explain this accumulation, with no definite answer. This paper examines the validity of the most frequently cited explanations using a stochastic formulation to model the accumulation process over a time-expanded network. To the authors’ knowledge, this represents the first paper dealing with empty containers as a concern for urban planning and policy making. This paper explores the impact that the planning horizon, variability, profit margins, acquisition costs and storage costs have on the accumulation of containers at areas with excess supply of empty units. The analyses suggest that: (1) trade imbalances create the conditions for the accumulation of empty containers, but cost considerations lead shipping companies to eventually store the surplus of empties at nearby urban areas; (2) the purchase price of new containers is not the factor that explains the accumulation of empty containers, though it may become important in the future if purchase prices drop below reposition costs; (3) although there is a need to store empty containers to protect against shortages, the observed accumulation of empty containers at supply areas far exceeds what seems justifiable by the operational needs; and (4) the accumulation of empty containers is thus primarily linked to the relationship between storage and reposition costs, as low storage costs seem to provide a significant financial incentive to accumulate empty containers. The paper argues that part of the problem is that the container industry is not taking into account the externalities they produce, and that this situation could be corrected by taxing empty container storage in an amount equal to the economic value of the externalities produced. Alternative courses of action include the use of land use zoning restrictions, and/or consensus based solutions that lead to voluntary reductions in the numbers of empty containers stored. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Noel Pérez-Rodríguez & Jose Holguín-Veras, 2014. "The Accumulation of Empty Containers in Urban Areas: Policy Implications from a Stochastic Formulation," Networks and Spatial Economics, Springer, vol. 14(3), pages 379-408, December.
    • Handle: RePEc:kap:netspa:v:14:y:2014:i:3:p:379-408
    DOI: 10.1007/s11067-014-9231-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11067-014-9231-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11067-014-9231-0?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. Raymond K. Cheung & Chuen-Yih Chen, 1998. "A Two-Stage Stochastic Network Model and Solution Methods for the Dynamic Empty Container Allocation Problem," Transportation Science, INFORMS, vol. 32(2), pages 142-162, May.
    2. Teodor Gabriel Crainic & Michel Gendreau & Pierre Dejax, 1993. "Dynamic and Stochastic Models for the Allocation of Empty Containers," Operations Research, INFORMS, vol. 41(1), pages 102-126, February.
    3. 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.
    4. Li, Jing-An & Leung, Stephen C.H. & Wu, Yue & Liu, Ke, 2007. "Allocation of empty containers between multi-ports," European Journal of Operational Research, Elsevier, vol. 182(1), pages 400-412, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kuzmicz, Katarzyna Anna & Pesch, Erwin, 2019. "Approaches to empty container repositioning problems in the context of Eurasian intermodal transportation," Omega, Elsevier, vol. 85(C), pages 194-213.

    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. 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.
    2. Zheng, Jianfeng & Sun, Zhuo & Gao, Ziyou, 2015. "Empty container exchange among liner carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 158-169.
    3. 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.
    4. Guericke, Stefan & Tierney, Kevin, 2015. "Liner shipping cargo allocation with service levels and speed optimization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 40-60.
    5. Alaa Abdelshafie & May Salah & Tomaž Kramberger & Dejan Dragan, 2022. "Repositioning and Optimal Re-Allocation of Empty Containers: A Review of Methods, Models, and Applications," Sustainability, MDPI, vol. 14(11), pages 1-23, May.
    6. Bell, Michael G.H. & Liu, Xin & Rioult, Jeremy & Angeloudis, Panagiotis, 2013. "A cost-based maritime container assignment model," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 58-70.
    7. Gharehgozli, A.H. & Roy, D. & de Koster, M.B.M., 2014. "Sea Container Terminals," ERIM Report Series Research in Management ERS-2014-009-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. 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.
    9. Yi Zhao & Qingwan Xue & Xi Zhang, 2018. "Stochastic Empty Container Repositioning Problem with CO 2 Emission Considerations for an Intermodal Transportation System," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    10. Mittal, Neha & Boile, Maria & Baveja, Alok & Theofanis, Sotiris, 2013. "Determining optimal inland-empty-container depot locations under stochastic demand," Research in Transportation Economics, Elsevier, vol. 42(1), pages 50-60.
    11. 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.
    12. 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.
    13. Ksciuk, Jana & Kuhlemann, Stefan & Tierney, Kevin & Koberstein, Achim, 2023. "Uncertainty in maritime ship routing and scheduling: A Literature review," European Journal of Operational Research, Elsevier, vol. 308(2), pages 499-524.
    14. Jingyao Song & Xin Tang & Chuanxu Wang & Changyan Xu & Junyi Wei, 2022. "Optimization of Multi-Port Empty Container Repositioning under Uncertain Environments," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    15. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    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. 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.
    18. 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.
    19. Kolar, Petr & Schramm, Hans-Joachim & Prockl, Günter, 2018. "Intermodal transport and repositioning of empty containers in Central and Eastern Europe hinterland," Journal of Transport Geography, Elsevier, vol. 69(C), pages 73-82.
    20. D-P Song, 2007. "Characterizing optimal empty container reposition policy in periodic-review shuttle service systems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 122-133, January.

    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:kap:netspa:v:14:y:2014:i:3:p:379-408. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.