Liner shipping hub network design in a competitive environment

Shahin Gelareh, Stefan Nickel, David Pisinger

    Research output: Contribution to journalJournal articleResearchpeer-review


    A mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses the competition between a newcomer liner service provider and an existing dominating operator, both operating on hub-and-spoke networks. The newcomer company maximizes its market share—which depends on the service time and transportation cost—by locating a predefined number of hubs at candidate ports and designing its network. While general-purpose solvers do not solve instances of even small size, an accelerated Lagrangian method combined with a primal heuristic obtains promising bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.
    Original languageEnglish
    JournalTransportation Research Part E: Logistics and Transportation Review
    Issue number6
    Pages (from-to)991-1004
    Publication statusE-pub ahead of print - 2010


    • Mixed integer programming
    • Liner shipping
    • Hub-and-spoke network design
    • Enumeration
    • Lagrangian relaxation
    • Competition


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