Liner Shipping Hub Network Design in a Competitive Environment

Shahin Gelareh, Stefan Nickel, David Pisinger

    Research output: Book/ReportReport

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    A new mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses competition between a newcomer liner service provider and an alliance, both operating on hub-and-spoke networks. The newcomer company maximizes its market share — proportional to 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 coupled with a primal heuristic obtains very good bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.
    Original languageEnglish
    Place of PublicationKgs. Lyngby
    PublisherDTU Management
    Number of pages16
    ISBN (Print)87-90-85573-6
    Publication statusPublished - 2010
    SeriesDTU Management 2010


    • liner shipping
    • lagrangian decomposition
    • enumeration
    • mixed integer programming
    • hub-and-spoke network design
    • competition


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