Liner shipping cargo allocation with service levels and speed optimization

Stefan Guericke and Kevin Tierney ()

Transportation Research Part E: Logistics and Transportation Review, 2015, vol. 84, issue C, 40-60

Abstract: The cargo allocation problem is a key strategic problem that determines the profitability of a liner shipping network. We present a novel mixed-integer programming model for this problem that introduces service levels for transit time requirements and optimizes the vessel speed on each leg of a service. These extensions to the cargo allocation problem greatly increase its realism and value for carriers. We evaluate our model on realistic data from the LINER-LIB and perform a sensitivity analysis of transit times versus bunker costs. Furthermore, we show how carriers can use our model to make data driven decisions in their operations.

Keywords: OR in maritime industry; Liner shipping; Cargo allocation; Service levels; Speed optimization (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (18)

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DOI: 10.1016/j.tre.2015.10.002

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