Apr 22, 2019 repositioning empty containers has afflicted the shipping industry for decades, resulting from a global economic trade imbalance. The repositioning of empty containers is a very expensive operation that does not generate profits. Maritime empty container repositioning with inventorybased control. The main cause of the need to reposition empty containers is due to a trade imbalance. This will reduce costs, increase container turnaround and lower unnecessary waste in global containerized shipping. A citation network analysis of sustainability development in liner shipping.
We looked at case studies of the taiwan liner shipping company to show the application of the proposed model. However, most carriers still handle them in the traditional way, without systematically leveraging the power of advanced analytics and artificial intelligence ai. Historical data show that empty containers account for about 20 percent of the total shipping volume, and this figure is still rising year by year. The growth in global trade and freight distribution has led to a demand for new containers.
May 20, 2014 these issues result in the fact that due to the repositioning on average 20% of the containers transported on sea and 40% transported on land is empty. Over the last years, empty container repositioning has become one of the most important problems in the shipping industry. And most of the shipping companies are still using the experience of scheduling rather than a systematic empty container repositioning. The efficient and effective management of empty containers is an important problem in the shipping industry.
Container repositioning management in liner shipping industry. This container repositioning digital twin will be able to apply big data analytics to solve the realworld inefficiencies in relocating empty shipping containers, to create cost savings for container operators and increase visibility across the supply chain. The problem of empty container repositioning, and how container shipping companies can. Empty container repositioning costs are multiple and include handling and transhipping at the terminal, empty warehousing while waiting to be repositioned, inland repositioning by rail or.
The streetturn option represents a major strategy for the profitability of shipping companies supplying containerbased transportation. Regional stakeholder solutions to empty container repositioning. Deploying ships and containers are considered simultaneously as a twostage problem. Global tracking systems are updated at every major waypoint in the transit. Technology startups are focusing on reducing the empty container problem. The objective is to reduce the disequilibrium of laden and empty containers. Liner shipping service network design with empty container repositioning. This option consists in the distribution of trucks delivering loaded containers to import customers, the subsequent allocation of empty containers to export customers and the final dispatch of loaded containers to departure ports.
Empty container repositioning for scottish shippers page 7 strategies for pooling empty containers could involve portcentric logistics strategies and information sharing between container owners or lessors mostly shipping lines. Operational model for empty container repositioning. This chapter explains the reasons it is important and that its impact is not limited to shipping lines only but affects the whole supply chain. At ultimate maritime logistics, we built our flexship solution from your perspective as a liner operator. In this work, the port calling sequence and empty container repositioning were examined simultaneously by designing the objective function with a penalty cost factor. Our freight brokers are experts in truckload, lessthantruckload,intermodal, refrigerated, and flatbed services. Liner services network design and fleet deployment with empty. The ultimate objective is to minimise the total relevant costs such as transportation. The schedule design and containerrouting problems were formulated by minimization of the sum of the total transshipment cost and penalty cost associated with longer transit time than the marketlevel transit time, minus the bonus for shorter transit time. Due to the special role of empty containers in the container transportation process, empty container repositioning is a focal point in the shipping industry. Empty containers repositioning in south african seaports. An inlanddepotsforemptycontainersmodel for the hinterland. Liner shipping revenue management with respositioning of.
Network optimization, emptycontainer repositioning, cargo routing, forecasting, and pricing are among the core processes that can be digitalized. Uber for empty containers could solve repositioning. The rst subproblem is the routing and scheduling problem, which is concerned with determining which. Empty pickup, laden return, loaded to ship, discharged from ship landed on quay laden pickup, empty return although most are reused so not r. How do shipping companies keep track of their containers. This finding also feeds back into the knowledge of empty flows in scotland, as the analysis reveals that. However, most carriers still handle them in the traditional way, without systematically leveraging the power of. Empty container repositioning ecr is one of the most important issues in the liner shipping industry. Intellect eship is international shipping software or international shipping system which comprises modules for international liner shipping carriers and. Repositioning empty containers has afflicted the shipping industry for decades, resulting from a global economic trade imbalance. Consequently, it is very important to provide an efficient empty container management. Liner services network design and fleet deployment with. In terms of empty container repositioning, the focal player is the shipping lines ocean carriers, who usually bear the costs of repositioning empty containers and are responsible to transport both laden and empty containers at sea porttoport service or even at inland as well doortodoor service. Dec 17, 20 intellect eship is international shipping software or international shipping system which comprises modules for international liner shipping carriers and international liner shipping agency system.
Empty container repositioning costs shipping industry up to. This paper formulates the empty container repositioning ecr problem, which is one of the most important issues in the container shipping industry, by running a model to generate the service route of feeder shipping in a dynamic environment. Figure 7container flow and repositioning 16 figure 8. Empty container repositioning costs shipping industry up. The container repositioning problem addressed in this study corresponds to. Dispatchers are ready to answer your questions and give you a free quote on services, always at affordable rates. Nov 15, 2017 this paper formulates the empty container repositioning ecr problem, which is one of the most important issues in the container shipping industry, by running a model to generate the service route of feeder shipping in a dynamic environment. In the area of empty container repositioning, shintani, imai, nishimura, and papadimitriou 2007 design container liner shipping service networks with empty container repositioning. The repositioning of empty containers is mainly the outcome of imbalances in trade flows. Uber for empty containers could solve repositioning challenges. The shipping company will reuse empty containers to meet other demands or will store them at a container yard for future requirements. Then, the imported, stored and returned empty containers will be available on demand. This paper proposes a liner shipping service network design problem with combined hubandspoke and multiportcalling operations and empty container repositioning. Not only does it have an economic effect, but it also has an environmental and sustainability impact, since the reduction of empty container movements will reduce fuel consumption and reduce congestion and emissions.
For instance, if a carrier sends loaded containers to hamburg, the triangulation service identifies a need for empty containers in wolfsburg rather than them repositioning the container to hamburg. A model was developed for network design of a shipping service for largescale intermodal liners that captured essential practical issues, including consistency with current services, slot purchasing, inland and maritime transportation, multipletype. Ecr are mainly treated as logistics activities in liner shipping and carried. The empty container repositioning issue as another important practical constraint has received little attention in designing a liner shipping service network. Jul 27, 2010 the streetturn option represents a major strategy for the profitability of shipping companies supplying container based transportation. Network optimization, empty container repositioning, cargo routing, forecasting, and pricing are among the core processes that can be digitalized. Empty container reposition planning for intraasia liner. The software consists of three main modules data cleansing and. Oct 30, 2018 for instance, if a carrier sends loaded containers to hamburg, the triangulation service identifies a need for empty containers in wolfsburg rather than them repositioning the container to hamburg. In an international setting, you get bookings for transport from a to b for a specific cargo. Optimization of empty container repositioning in liner shipping. With one single point of contact, you can move just about any kind of freight anywhere in north america.
Pdf empty container repositioning in liner shipping. Schedule design and container routing in liner shipping. The purpose of this paper is to figure out in which way a hinterlandbased inland depot model can help a shipping company in solving the empty container problem at a regional level. An optimization model for container inventory management. A shipping line is a company that operates the ships that actually carry the containers owned or leased and cargo from load port to discharge port example. Empty container repositioning is an important issue but has not been deemed as such in the literature. All about shipping, ocean freight blog, rcl agencies. As a liner operator, you come across all kind of processes. This study addresses the problem of empty container repositioning ecr in.
The formulation is nonlinear, noncontinuous, and nonconvex. Repositioning containers may seem like a waste of money since it can cost a shipping line almost as much to move empties but it is extremely necessary to keep the same level of service that their customers expect. With avantida, logistics companies can request the liner shipping company to. Pdf empty container repositioning in liner shipping researchgate. The repositioning of empty containers the geography of. Operational decisions are affected by tactical ones. Difference between container owner and shipping line. Not only does it have an economic effect on the stakeholders in the container transport chain, but it also has an environmental and sustainability impact on the society since the reduction of empty container movements will reduce fuel consumption, and reduce congestion and emissions. Sep 18, 2017 a shipping line is a company that operates the ships that actually carry the containers owned or leased and cargo from load port to discharge port example. Optimizing liner shipping network considering empty.
Assetmetrics also calculates the most optimal storage, repositioning, and maintenance strategy for empty containers. Oct 07, 2019 this container repositioning digital twin will be able to apply big data analytics to solve the realworld inefficiencies in relocating empty shipping containers, to create cost savings for container operators and increase visibility across the supply chain. Softships container repositioning tool will seek to simulate and solve the realworld inef. Not only does it have an economic effect on the stakeholders in the container transport chain, but it also has an environmental and sustainability impact on the society since the reduction of empty container movements will reduce fuel consumption, and reduce congestion and. Pdf empty container repositioning ecr is one of the most important issues in. Hapag lloyd, maersk, china shipping some of the shipping lines have container services covering most ports of the world, and it is common that they might run into a situation where by. With the program, container users can request the liner shipping. For example solutions where the logistics carriers are assured of cargo. In this paper, the empty container problem is discussed at a regional repositioning level.
Assetmetrics is an automated predictive planning tool specifically customized for container shipping lines. Ai predictive optimization for container shipping lines. The upper problem is identified to estimate the empty container stock at each port and the lower problem models the empty container reposition planning with shipping service network as the transportation problem by liner problem. Optimization of empty container repositioning in liner. The movement of empty containers is an unavoidable problem due to the imbalance of supply and demand across the country. In this paper, the empty container repositioning problem in south africa seaports is studied. For this problem, highly efficient and feasible optimization models are critical in improving the benefit for shipping companies and increasing their market competitiveness. In transportation via containers, unbalanced movement of loaded containers. Thirdly, we discuss the solutions to the ecr problems from the logistics channel. Management of empty containers in liner shipping maritime. The schedule design and container routing problems were formulated by minimization of the sum of the total transshipment cost and penalty cost associated with longer transit time than the marketlevel transit time, minus the bonus for shorter transit time. It first introduces a novel concept segment defined as a pair of ordered ports served by one shipping line and subsequently develops a mixedinteger linear programming. Empty container reposition planning for intraasia liner shipping. Implementing the streetturn strategy by an optimization.
Tactical and operational cooperative empty container. Optimizing liner shipping network considering empty container. An optimization model for management of empty containers in. How to solve empty container repositioning problem with. Thus, the problem was integrated and formulated as a twostage problem. Liner shipping service network design with empty container. Global container management software intermodal management. Container shipping has experienced a rapid development in the last few. These lopsided trade lanes can cause deficits which could create major delays in shipping. Niledutch implements transmetrics predictive optimisation software 26 jan 2018 in order to streamline our empty container flows and increase efficiency, niledutch has started working with transmetrics of bulgaria, a tech startup that provides predictive logistics solutions. Nov 22, 2009 over the last years, empty container repositioning has become one of the most important problems in the shipping industry.
On the other hand, requests for empty containers are made by shippers who need to export goods. You need to arrange specific types of containers and the right documentation. This paper presents a revenue management model for a liner shipping company where the repositioning of empty containers is taken into account. With the program, container users can request the liner shipping company directly move an unloaded import container for another load. Empty container repositioning in liner shipping the efficient and effective management of empty containers is an important problem in the shipping industry. Repositioning of empty containers, and the significant associated costs, is an issue that has plagued the shipping industry for decades and is the result of an inherent geographical trade imbalance which the shipping industry. Let us put our 70 years of experience to work for you. Av logistics, llc,evans network of companies,itg transportation services, inc. These issues result in the fact that due to the repositioning on average 20% of the containers transported on sea and 40% transported on land is empty. The issue of empty container transport has also attracted the attention of many scholars and has carried out corresponding research, but systematic and rigorous quantitative analysis has yet to be published. For solving this problem, a mixedinteger linear optimization model is developed and validated by using the german hinterland as a case. The aidriven software forecasts customer demand per container type and location, 8 to 12 weeks in advance. Not only does it have an economic effect, but it also has an environmental and sustainability impact, since the reduction of empty container movements will reduce fuel consumption and. Nevertheless, the transportation of highcost empty containers has posed a serious challenge for liner shipping companies.
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