IDEAS home Printed from https://ideas.repec.org/a/spr/opmare/v16y2023i1d10.1007_s12063-022-00315-2.html
   My bibliography  Save this article

Research on strategic liner ship fleet planning with regard to hub-and-spoke network

Author

Listed:
  • Bingfeng Bai

    (Shanghai University)

  • Wei Fan

    (Dalian Maritime University)

Abstract

In order to obtain the biggest economic benefits, large shipping firms widely use hub-and-spoke network to operate ships. The reasonable shipping network not only decreases the cost of infrastructure construction to achieve scale economies, but also be efficient to allocate the existing resources of maritime business. Shipping firms usually are in pursuit of the large-scale container ship, leading some firms to blindly upgrade vessels and cause the loss of profit. Since the operating costs and transportation time is the major problem for shipping firms to get more profit, in this study, we research the relationship of route design, fleet planning and container freight to build the objective function in view of the minimization of time and cost. This study proposes the mixed integer linear programming model of hub-and-spoke network and liner ship fleet planning to choose the appropriate ship location and distribution, and applies Lagrange Heuristic Algorithm to solve the model. The simulation results verify the validity of this algorithm, showing that when firms invest the large ship, it usually gets lower freight rate, by contrast, small vessels have cost and scale advantages. But in order to cope with changes in market demand, for the operations of shipping firms, owning large vessels are still necessary. Our two-phase model considers problems comprehensively to complete the network design of liner ship fleet planning. Lagrange Heuristic Algorithm can get high quality solutions in a relatively short time, it provides reference significance for solving related problems in the future.

Suggested Citation

  • Bingfeng Bai & Wei Fan, 2023. "Research on strategic liner ship fleet planning with regard to hub-and-spoke network," Operations Management Research, Springer, vol. 16(1), pages 363-376, March.
    • Handle: RePEc:spr:opmare:v:16:y:2023:i:1:d:10.1007_s12063-022-00315-2
    DOI: 10.1007/s12063-022-00315-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12063-022-00315-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12063-022-00315-2?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. Aykin, Turgut, 1994. "Lagrangian relaxation based approaches to capacitated hub-and-spoke network design problem," European Journal of Operational Research, Elsevier, vol. 79(3), pages 501-523, December.
    2. Zhao, Hui & Hu, Hao & Lin, Yisong, 2016. "Study on China-EU container shipping network in the context of Northern Sea Route," Journal of Transport Geography, Elsevier, vol. 53(C), pages 50-60.
    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. Richa Agarwal & Özlem Ergun, 2008. "Ship Scheduling and Network Design for Cargo Routing in Liner Shipping," Transportation Science, INFORMS, vol. 42(2), pages 175-196, May.
    5. Minda Ma & Ran Yan & Weiguang Cai, 2017. "An extended STIRPAT model-based methodology for evaluating the driving forces affecting carbon emissions in existing public building sector: evidence from China in 2000–2015," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 89(2), pages 741-756, November.
    6. 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.
    7. Gerald G. Brown & Glenn W. Graves & David Ronen, 1987. "Scheduling Ocean Transportation of Crude Oil," Management Science, INFORMS, vol. 33(3), pages 335-346, March.
    8. 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.
    9. Zhalechian, M. & Torabi, S. Ali & Mohammadi, M., 2018. "Hub-and-spoke network design under operational and disruption risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 20-43.
    10. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    11. Wang, Chengjin & Wang, Jiaoe, 2011. "Spatial pattern of the global shipping network and its hub-and-spoke system," Research in Transportation Economics, Elsevier, vol. 32(1), pages 54-63.
    12. Yang, Dong & Pan, Kai & Wang, Shuaian, 2018. "On service network improvement for shipping lines under the one belt one road initiative of China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 82-95.
    13. Mulder, Judith & Dekker, Rommert, 2014. "Methods for strategic liner shipping network design," European Journal of Operational Research, Elsevier, vol. 235(2), pages 367-377.
    14. Hairui Wei & Zhaohan Sheng & Paul Tae-Woo Lee, 2018. "The role of dry port in hub-and-spoke network under Belt and Road Initiative," Maritime Policy & Management, Taylor & Francis Journals, vol. 45(3), pages 370-387, April.
    15. Imai, Akio & Nishimura, Etsuko & Papadimitriou, Stratos, 2013. "Marine container terminal configurations for efficient handling of mega-containerships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 141-158.
    16. 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.
    17. 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.
    18. Christine S.M. Currie & John W. Fowler & Kathy Kotiadis & Thomas Monks & Bhakti Stephan Onggo & Duncan A. Robertson & Antuela A. Tako, 2020. "How simulation modelling can help reduce the impact of COVID-19," Journal of Simulation, Taylor & Francis Journals, vol. 14(2), pages 83-97, April.
    19. Meng, Qiang & Wang, Xinchang, 2011. "Intermodal hub-and-spoke network design: Incorporating multiple stakeholders and multi-type containers," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 724-742, May.
    20. Plum, Christian E.M. & Pisinger, David & Sigurd, Mikkel M., 2014. "A service flow model for the liner shipping network design problem," European Journal of Operational Research, Elsevier, vol. 235(2), pages 378-386.
    21. John Gunnar Carlsson & Fan Jia, 2013. "Euclidean Hub-and-Spoke Networks," Operations Research, INFORMS, vol. 61(6), pages 1360-1382, December.
    22. 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.
    23. Franceschetti, Anna & Honhon, Dorothée & Laporte, Gilbert & Woensel, Tom Van & Fransoo, Jan C., 2017. "Strategic fleet planning for city logistics," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 19-40.
    24. I. Necoara & J. A. K. Suykens, 2009. "Interior-Point Lagrangian Decomposition Method for Separable Convex Optimization," Journal of Optimization Theory and Applications, Springer, vol. 143(3), pages 567-588, December.
    25. 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.
    26. Asgari, Nasrin & Farahani, Reza Zanjirani & Goh, Mark, 2013. "Network design approach for hub ports-shipping companies competition and cooperation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 48(C), pages 1-18.
    27. Prem Chhetri & Mathews Nkhoma & Konrad Peszynski & Anjali Chhetri & Paul Tae-Woo Lee, 2018. "Global logistics city concept: a cluster-led strategy under the belt and road initiative," Maritime Policy & Management, Taylor & Francis Journals, vol. 45(3), pages 319-335, April.
    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. 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.
    2. 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.
    3. 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.
    4. Gang Du & Chuanwang Sun & Jinxian Weng, 2016. "Liner Shipping Fleet Deployment with Sustainable Collaborative Transportation," Sustainability, MDPI, vol. 8(2), pages 1-15, February.
    5. 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.
    6. Yang, Dong & Pan, Kai & Wang, Shuaian, 2018. "On service network improvement for shipping lines under the one belt one road initiative of China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 82-95.
    7. Chen, Kang & Chen, Dongxu & Sun, Xueshan & Yang, Zhongzhen, 2016. "Container Ocean-transportation System Design with the factors of demand fluctuation and choice inertia of shippers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 267-281.
    8. 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.
    9. 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.
    10. Milan Janić, 2018. "Multidimensional examination of the performances of a liner shipping network: trunk line/route operated by conventional (Panamax Max) and mega (ULC - ultra large container) ships," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-35, December.
    11. Chen, Jingxu & Jia, Shuai & Wang, Shuaian & Liu, Zhiyuan, 2018. "Subloop-based reversal of port rotation directions for container liner shipping network alteration," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 336-361.
    12. Akyüz, M. Hakan & Lee, Chung-Yee, 2016. "Service type assignment and container routing with transit time constraints and empty container repositioning for liner shipping service networks," Transportation Research Part B: Methodological, Elsevier, vol. 88(C), pages 46-71.
    13. 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.
    14. 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.
    15. 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.
    16. Karsten, Christian Vad & Pisinger, David & Ropke, Stefan & Brouer, Berit Dangaard, 2015. "The time constrained multi-commodity network flow problem and its application to liner shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 122-138.
    17. Brouer, Berit Dangaard & Desaulniers, Guy & Pisinger, David, 2014. "A matheuristic for the liner shipping network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 42-59.
    18. Karsten, Christian Vad & Brouer, Berit Dangaard & Desaulniers, Guy & Pisinger, David, 2017. "Time constrained liner shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 152-162.
    19. Zheng, Jianfeng & Zhang, Wenlong & Qi, Jingwen & Wang, Shuaian, 2019. "Canal effects on a liner hub location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 230-247.
    20. 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.

    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:spr:opmare:v:16:y:2023:i:1:d:10.1007_s12063-022-00315-2. 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.