Competitive Liner Shipping Network Design

Christian Vad Karsten, Berit Dangaard Brouer, David Pisinger

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    We present a solution method for the liner shipping network design problem which is a core strategic planning problem faced by container carriers. We propose the first practical algorithm which explicitly handles transshipment time limits for all demands. Individual sailing speeds at each service leg are used to balance sailing speed against operational costs, hence ensuring that the found network is competitive on both transit time and cost. We present a matheuristic for the problem where a MIP is used to select which ports should be inserted or removed on a route. Computational results are presented showing very promising results for realistic global liner shipping networks. Due to a number of algorithmic enhancements, the obtained solutions can be found within the same time frame as used by previous algorithms not handling time constraints. Furthermore, we present a sensitivity analysis on fluctuations in bunker price which confirms the applicability of the algorithm.
    Original languageEnglish
    JournalComputers & Operations Research
    Volume87
    Pages (from-to)125-136
    ISSN0305-0548
    DOIs
    Publication statusPublished - 2017

    Keywords

    • Container shipping
    • Network design
    • Level of service

    Cite this

    Karsten, Christian Vad ; Brouer, Berit Dangaard ; Pisinger, David. / Competitive Liner Shipping Network Design. In: Computers & Operations Research. 2017 ; Vol. 87. pp. 125-136.
    @article{1f068516c56f4f5c8f519b41e525c252,
    title = "Competitive Liner Shipping Network Design",
    abstract = "We present a solution method for the liner shipping network design problem which is a core strategic planning problem faced by container carriers. We propose the first practical algorithm which explicitly handles transshipment time limits for all demands. Individual sailing speeds at each service leg are used to balance sailing speed against operational costs, hence ensuring that the found network is competitive on both transit time and cost. We present a matheuristic for the problem where a MIP is used to select which ports should be inserted or removed on a route. Computational results are presented showing very promising results for realistic global liner shipping networks. Due to a number of algorithmic enhancements, the obtained solutions can be found within the same time frame as used by previous algorithms not handling time constraints. Furthermore, we present a sensitivity analysis on fluctuations in bunker price which confirms the applicability of the algorithm.",
    keywords = "Container shipping, Network design, Level of service",
    author = "Karsten, {Christian Vad} and Brouer, {Berit Dangaard} and David Pisinger",
    year = "2017",
    doi = "10.1016/j.cor.2017.05.018",
    language = "English",
    volume = "87",
    pages = "125--136",
    journal = "Computers & Operations Research",
    issn = "0305-0548",
    publisher = "Pergamon Press",

    }

    Competitive Liner Shipping Network Design. / Karsten, Christian Vad; Brouer, Berit Dangaard; Pisinger, David.

    In: Computers & Operations Research, Vol. 87, 2017, p. 125-136.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Competitive Liner Shipping Network Design

    AU - Karsten, Christian Vad

    AU - Brouer, Berit Dangaard

    AU - Pisinger, David

    PY - 2017

    Y1 - 2017

    N2 - We present a solution method for the liner shipping network design problem which is a core strategic planning problem faced by container carriers. We propose the first practical algorithm which explicitly handles transshipment time limits for all demands. Individual sailing speeds at each service leg are used to balance sailing speed against operational costs, hence ensuring that the found network is competitive on both transit time and cost. We present a matheuristic for the problem where a MIP is used to select which ports should be inserted or removed on a route. Computational results are presented showing very promising results for realistic global liner shipping networks. Due to a number of algorithmic enhancements, the obtained solutions can be found within the same time frame as used by previous algorithms not handling time constraints. Furthermore, we present a sensitivity analysis on fluctuations in bunker price which confirms the applicability of the algorithm.

    AB - We present a solution method for the liner shipping network design problem which is a core strategic planning problem faced by container carriers. We propose the first practical algorithm which explicitly handles transshipment time limits for all demands. Individual sailing speeds at each service leg are used to balance sailing speed against operational costs, hence ensuring that the found network is competitive on both transit time and cost. We present a matheuristic for the problem where a MIP is used to select which ports should be inserted or removed on a route. Computational results are presented showing very promising results for realistic global liner shipping networks. Due to a number of algorithmic enhancements, the obtained solutions can be found within the same time frame as used by previous algorithms not handling time constraints. Furthermore, we present a sensitivity analysis on fluctuations in bunker price which confirms the applicability of the algorithm.

    KW - Container shipping

    KW - Network design

    KW - Level of service

    U2 - 10.1016/j.cor.2017.05.018

    DO - 10.1016/j.cor.2017.05.018

    M3 - Journal article

    VL - 87

    SP - 125

    EP - 136

    JO - Computers & Operations Research

    JF - Computers & Operations Research

    SN - 0305-0548

    ER -