Liner shipping single service design problem with arrival time service levels

Kevin Tierney (), Jan Fabian Ehmke, Ann Melissa Campbell and Daniel Müller
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Jan Fabian Ehmke: Otto von Guericke University Magdeburg
Ann Melissa Campbell: University of Iowa
Daniel Müller: University of Paderborn

Flexible Services and Manufacturing Journal, 2019, vol. 31, issue 3, No 4, 620-652

Abstract: Abstract We introduce three mathematical models of increasing complexity for designing liner shipping services that guarantee the punctual arrival of vessels at a specified service level. On-time reliability is an important performance indicator for many liner carriers, but current approaches for creating new routes in liner shipping networks do not consider data-driven uncertainty. We perform an empirical analysis of vessel travel times in a real liner shipping network to develop probability distributions that we use within novel, chance-constrained mathematical models for liner shipping service design. Our models are also the first to support variable vessel speeds for service design. In our experiments, we use real-world data from 22 liner shipping routes and evaluate the designed services using a simulation procedure that demonstrates the effectiveness of our approach for reducing lateness. We show that our models can be effectively used for decision support at a tactical level not only for designing services, but also potentially for negotiating maximum demand transit times and prices with customers.

Keywords: Maritime transportation; Liner shipping optimization; Service design; On-time guarantee (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s10696-018-9325-y

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