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Purchasing Transportation Services from Ocean Carriers

In: Handbook of Ocean Container Transport Logistics

Author

Listed:
  • Zhou Xu

    (The Hong Kong Polytechnic University)

  • Xiaofan Lai

    (The Hong Kong Polytechnic University)

Abstract

Reducing transportation costs is priority number one for global shippers who need to move their cargo containers all over the world. To achieve such cost reduction, a shipper can use what is called a reverse auction mechanism to purchase transportation services, by inviting carriers, i.e. liner shipping companies, to bid competitively to sell their services. As part of the process, carriers often seek commitments from the shipper, and internal business units of the shipper often express their own preferences when it comes choosing the carriers, which naturally complicates the shipper’s decisions. In this chapter, we first review existing studies on the transportation service procurement problem. Based on a new general optimization model, we then discuss extensions to the existing known results, as well as present several results new to the literature.

Suggested Citation

  • Zhou Xu & Xiaofan Lai, 2015. "Purchasing Transportation Services from Ocean Carriers," International Series in Operations Research & Management Science, in: Chung-Yee Lee & Qiang Meng (ed.), Handbook of Ocean Container Transport Logistics, edition 127, chapter 13, pages 399-427, Springer.
    • Handle: RePEc:spr:isochp:978-3-319-11891-8_13
    DOI: 10.1007/978-3-319-11891-8_13
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    Citations

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    Cited by:

    1. Chung‐Yee Lee & Shengnan Shu & Zhou Xu, 2021. "Optimal Global Liner Service Procurement by Utilizing Liner Service Schedules," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 703-714, March.
    2. Wang, Junjin & Liu, Jiaguo & Zhang, Xin, 2020. "Service purchasing and market-entry problems in a shipping supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    3. 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.

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