We consider the Tramp Ship Routing and Scheduling Problem (TSRSP) in which we plan routes for a fleet of tramp shipping vessels operating on a combined contract and spot market. Earlier research has been fragmented due to variations in the side constraints studied. Hence we present the first unified model that can handle speed optimization, chartering costs, bunker planning, and hull cleaning. The model is solved by column generation, where the columns represent the possible routes of a vessel, while the master problem keeps track of the binding constraints. The pricing problem is solved efficiently using a time–space graph and several dominance rules. Real-life instances with up to 40 vessels, 35 geographic regions, and four months planning horizon can be solved to optimality in less than half an hour. The optimized routes increase earnings by 7% compared to historical schedules. Furthermore, policy-makers can use the model as a simulation of a rational agent behavior.
The rapid growth of e-commerce applications has promoted the establishment of shipping e-commerce channels by many liner companies in addition to their existing traditional Non-vessel operating common carrier (NVOCC) channel. Unlike NVOCC channels, shipping e-commerce channels guarantee shippers the availability of contracted container slots. However, some problems arise, including the competition with NVOCC channels, shipping slot sales’ risk, and the increasing liner companies’ costs. Therefore, this paper addresses optimal sales strategy selection in the liner transportation industry, including a single traditional NVOCC channel (TN) strategy, and a dual channel with both e-commerce and NVOCC channels (EN) strategy. Two contract scheme models are constructed considering the channel competition on canvassing ability, overselling behavior, demand fluctuation, and the limited liner vessel capacity. Findings show that the impact of overselling behavior on the profit under the EN and TN is not always negative, which is related to the shipping capacity and probability of the high canvassing ability. Comparative analyses reveal that the EN is dominant if the unit overselling compensation cost varies small. Meanwhile, the TN is profitable if the unit overselling compensation cost increases and the canvassing cost of e-commerce channel exceeds a certain value. Otherwise, the selection of sales strategy relies on the arrival rate, the canvassing cost of the e-commerce channel and shipping capacity. The results offer new insights to both theoretical research on container slot sales and the practical selection of sales strategy since shipping e-commerce has changed the slot selling mode in the container shipping industry, which could also enhance the competitiveness of liner companies in the container shipping industry.
The liner shipping industry is undergoing an extensive decarbonization process to reduce its 275 million tons of CO2 emissions as of 2018. In this process, the long-term solution is the introduction of new alternative maritime fuels. The introduction of alternative fuels presents a great set of unknowns. Among these are the strategic concerns regarding sourcing of alternative fuels and, operationally, how the new fuels might affect the network of shipping routes. We propose a problem formulation that integrates fuel supply/demand into the liner shipping network design problem. Here, we present a model to determine the production sites and distribution of new alternative fuels-we consider methanol and ammonia. For the network design problem, we apply an adaptive large neighborhood search combined with a delayed column generation process. In addition, we wish to test the effect of designing a robust network under uncertain demand conditions because of the problem's strategic nature and importance. Therefore, our proposed solution method will have a deterministic and stochastic setup when we apply it to the second-largest multihub instance, WorldSmall, known from LINER-LIB. In the deterministic setting, our proposed solution method finds a new best solution to three instances from LINER-LIB. For the main considered WorldSmall instance, we even noticed a new best solution in all our tested fuel settings. In addition, we note a profit drop of 7.2% between a bunker-powered and pure alternative fuel-powered network. The selected alternative fuel production sites favor a proximity to European ports and have a heavy reliance on wind turbines. The stochastic results clearly showed that the found networks were much more resilient to the demand changes. Neglecting the perspective of uncertain demand leads to highly fluctuating profits.
Manufacturing companies who ship goods globally often rely on external Logistics Service Providers (LSPs) to manage the containerization and transportation of their freight. Those LSPs are usually required to follow rules when deciding how to mix the goods in the containers, which complicates the planning task. In this paper, we study such a freight containerization problem with a specific type of cargo mixing requirements recurrently faced by an international LSP. We show that this problem can be formulated as a Multi-Class Constrained Variable Size Bin Packing Problem: given a set of items that all have a size and a fixed number of classes for which they can take certain values, the objective is to pack the items in a minimum-cost set of bins while ensuring that the size capacity and maximum number of distinct values per class are not exceeded in any of the bins. We propose two adapted and one novel greedy heuristics, as well as an Adaptive Large Neighborhood Search (ALNS) metaheuristic, to find feasible solutions to the problem. We also provide a pattern-based formulation that is used to obtain lower bounds using a Column Generation approach. Using three extensive datasets, including a novel one with up to 1000 items and 5 classes reflecting real industrial cases, we show that the novel greedy heuristic outperforms the adaptations of the existing ones and that our ALNS yields significantly better solutions than a commercial solver within a mandatory 5-minute time limit. Practical insights are given about the solutions for the industrial benchmark.
Due to limited access to domain knowledge and domain-relevant benchmark data, the Container Stowage Planning Problem (CSPP) is notably under-researched. In particular, previous models of the CSPP have lacked two key aspects of the problem: lashing forces and paired block stowage. The former may reduce vessel capacity by up to 10%, and the latter is NP-hard. The Representative CSPP (RCSPP), which captures all critical aspects of the problem is formulated. The presented RCSPP incorporates overlooked constraints such as paired block stowage and lashing, along with an innovative method for estimating lashing forces, all while maintaining simplicity. A heuristic method, STOW, has been developed to identify solutions for the RCSPP using a specially designed benchmark suite based on real-world scenarios. STOW algorithm is an advanced search heuristic employing a diverse range of solution modification strategies, each tailored to address specific aspects of stowage optimization. Feasible solutions were successfully identified for all instances within the benchmark suite. Our initial findings emphasize the importance of accurately modeling lashing forces and employing paired block stowage. Results show that removing the lashing constraint can increase the number of containers stowed by over 7% on average, while disabling paired block stowage can result in nearly a 5% increase.
We consider the Tramp Ship Routing and Scheduling Problem (TSRSP) in which we plan routes for a fleet of tramp shipping vessels operating on a combined contract and spot market. Earlier research has been fragmented due to variations in the side constraints studied. Hence we present the first unified model that can handle speed optimization, chartering costs, bunker planning, and hull cleaning. The model is solved by column generation, where the columns represent the possible routes of a vessel, while the master problem keeps track of the binding constraints. The pricing problem is solved efficiently using a time–space graph and several dominance rules. Real-life instances with up to 40 vessels, 35 geographic regions, and four months planning horizon can be solved to optimality in less than half an hour. The optimized routes increase earnings by 7% compared to historical schedules. Furthermore, policy-makers can use the model as a simulation of a rational agent behavior.
In this article, we develop a deep neural network model to estimate the wave added resistance. The required data to train the model is generated using strip theory calculations over a wide range of hull geometries and operational conditions. The model is efficient as it only requires the ship’s main particulars: length, beam, draft, block coefficient, and slenderness ratio. In addition, we present an application of this model in a vessel performance framework. This will be used for predicting propulsion power and analyzing the degree of biofouling on ships from the company Ultrabulk2. The study shows that the developed deep neural network model produces reliable results in predicting the added wave resistance coefficient in comparison to strip theory calculations. Also, the developed ship propulsion and biofouling analysis display satisfactory output for monitoring hull performance under actual ship operational conditions.
The interest in sustainability in the maritime industry has been on the rise. Attention has shifted from how to develop and comply with environmental regulation and labour standards to a more integrated view on sustainable maritime transport that aims at incorporating sustainability in maritime firm strategies. The liner shipping industry, which has been at the forefront, plays a crucial role in global supply chains, with its commitment to sustainable maritime container transport gaining recognition. In particular, procurement relationships stand out as an area where sustainability can exert the most significant impact. Ocean transport is among the most widely outsourced services globally both by shippers and by freight forwarders. Unlike bulk transport, container ocean transport is always outsourced, as shippers do not use their own vessels. Yet, the selection criteria that logistics firms use regarding sustainability when choosing ocean transport service providers and the role of sustainability in value creation among shippers/freight forwarders and ocean transport providers have been scarcely explored.
This article delves into value creation via quality improvement and sustainability practices in ocean freight transport. Employing a case study of an ocean carrier, alongside interviews and survey data, it explores how liner shipping companies can leverage high-quality and sustainable operations to enhance service for their clients and create logistics value. A novel aspect of this study is the application of sustainable supplier management concepts to maritime logistics, highlighting how shippers’ sustainability requirements in sourcing ocean freight services shape procurement relationships and how shipping companies can employ sustainable procurement strategies for value creation.
This chapter argues that state-owned Chinese integrated maritime logistics enterprises are about to change the power balance vis-à-vis the hitherto dominant, privately owned enterprises based in Europe. This shift, which has been actively supported as part of China’s ambitious Belt and Road Initiative, will directly affect the European Union’s common transport and competition policy. Within the larger Belt and Road Initiative, the Maritime Silk Road project can be seen as the umbrella concept for the comprehensive management of the entire supply chain between China and Europe. We discuss possible policy implications for both China and the European Union when it comes to managing the subtle balance between geopolitical considerations and efficient operations of trade and transport controlled by a few dominant actors. As part of our theoretical framework, we use two extensions of the classical obsolescing bargaining model: the one-tier bargaining model and a bargaining model of reciprocation. By combining the two models, we aspire to explain the changing nature of bargaining relations between, on the one hand, the Chinese government and its state-owned enterprises and, on the other, the private-owned European companies as a function of the goals, resources and constraints of the involved parties.