International Journal of Shipping and Transport Logistics (42 papers in press)
Dynamic Vehicle Routing Problem with Cooperative Strategy in Disaster Relief
by Seyed Mohammad Gholami-Zanjani, Ruholla Jafari-Marandi, Mir Saman Pishvaee, Walid Klibi
Abstract: Many studies have focused on static vehicle routing problems (VRP) in which all information is known in advance. However, in recent years, the growth of technology has brought about a new range of problems, referred to as dynamic vehicle routing problems. In these problems, a part of the orders are received in advance before departure of vehicles from depots, but some new orders will come in after the vehicles departure. In both situations utilizing multiple vehicles and cooperative strategy can decrease costs. Although cooperative strategy has not received considerable attention in the literature, it could be a possibility in practice which can help reduce costs. Multiple vehicles in this strategy are allowed to travel and they can transfer goods between one another (from the main vehicle) when they meet in demand points so as to better satisfy the late demands. The benefits of such optimizations, which consider dynamic orders, are evaluated in case of emergencies far from the expected zones and the distribution centers. A mixed integer nonlinear mathematical model is proposed for multi-vehicle routing problem considering product transshipment between vehicles in dynamic situations. The objective function is to minimize the total cost of transportation as well as the number of lost sales. A robust genetic algorithm is then developed to deal with the complexity of the problem. The experimental results show that cooperative strategy is an attractive possibility to reduce unsatisfied late received demands and costs.
Keywords: Cooperative Strategy; Dynamic Vehicle Routing Problem; Disaster Relief Management; Robust Genetic Algorithm.
Analysis of risk factors influencing the safety of maritime container supply chains
by Zaili Yang, Chengpeng Wan, Xinping Yan, Di Zhang
Abstract: This paper aims to identify the major risk factors influencing the safety and security of maritime container supply chains (MCSCs) to aid the effective management of the associated risks. By doing so, the definition and classification of supply chain risks in a general context are first reviewed to provide a reference for the understanding and analysis of risk factors in MCSCs. A novel risk classification framework, incorporating a Delphi survey and a risk matrix approach, is proposed to identify the major risk factors of significant safety concerns from five perspectives, including society, natural environment, management, infrastructure and technology, and operations. As a result, different types of risk factors in MCSCs are identified through a systematic review of previous studies. Then, a Delphi expert survey is undertaken to explore the emerging hazards that have not yet been raised/studied in the literature. The survey is carried out by interviewing different groups of maritime stakeholders, who own the world leading commercial container fleets and container ports. Relevant data for the assessment of all identified risk factors are collected through a large-scale questionnaire survey, and the identified risk factors are quantitatively evaluated regarding their occurrence likelihood and consequence severity. This paper extends the risk analysis from the segment level (e.g. nodes and links) to a supply chain level, and realises the hazard identification and risk evaluation of different MCSC segments on the same plate so that they can be better understood and managed from a systematic perspective. The research results will provide useful insights for risk control and accident prevention, which is beneficial to different types of stakeholders involved in the shipping industry.
Keywords: Maritime risk; container shipping; maritime transport; maritime safety; maritime security; Delphi; maritime transport.
Supply Chain Security Management: A Citation Network Analysis
by Xun Tong, Chris K.Y. Lo, Kee-hung Lai, T.C.E. Cheng
Abstract: Security management has become a topical issue in supply chain management (SCM) and operations and production management (OPM). Researchers are keen to address issues related to the prevention, mitigation, and recovery from security incidents and to the development of security management systems with cost efficiency consideration. This study presents a citation network analysis (CNA) of supply chain security (SCS) by analyzing 143 sample SCS articles. Specifically, we conduct a cluster analysis and a main path analysis to identify the research clusters in SCS literature and show knowledge transformation in SCS chronically. We identify four research clusters, which are (1) SCS Conceptualization and Application, (2) Security Management Systems, (3) Transportation Security, and (4) Terrorism, and the research gaps in each cluster are discussed in this review through an in-depth analysis of the articles in each cluster. This study helps scholars in SCM and OPM reveal the current trend in SCS management research and suggest potential research directions for future study in SCS.
Keywords: supply chain management; risk management; literature review; citation analysis; main path analysis.
A Tabu Search Approach to the Cargo Prioritization and Terminal Allocation Problem
by Jingjing Tong, Heather Nachtmann
Abstract: To mitigate inland waterway disruption impacts, we develop a tabu search (TS) approach to solve the cargo prioritization and terminal allocation problem (CPTAP) to minimize the total value loss of disrupted barge cargoes by offloading the cargoes to the land transportation modes. CPTAP is formulated as a nonlinear binary integer program, and problems of realistic size can be efficiently and effectively solved with an efficient heuristic approach. Given different neighborhood structures, multiple TS variants are attempted and compared. Solving CPTAP with our TS heuristic leads to the lowest cargo value loss and the shortest response time for the disrupted barges compared to a genetic algorithm approach and a na
Keywords: Metaheuristics; OR in maritime industry; Inland waterway transportation; Cargo prioritization.
Seaport competitiveness research: the past, present and future
by Ziaul Haque Munim, Naima Saeed
Abstract: This study presents a review of articles with a focus on seaport competitiveness from the maritime literature. We investigated how port competitiveness research has evolved during the last two decades using bibliometric citation analysis tools and techniques. Bibliography data, collected from the ISI Web of Science database, consisted of 267 research papers by 465 authors in 117 journals. Based on citation analysis, we identified the key universities, journals and articles and their impact on port competitiveness research. Also, seven key research streams with few sub-streams were revealed as a result of a mixed co-citation and in-depth content analysis of the most cited articles. A bibliometric co-citation mapping technique was used to show how the key articles are built on each other. Key research papers and their concepts, methods and findings are also discussed. Finally, we present some strategic research challenges and future research agendas.
Keywords: literature review; bibliometric analysis; co-citation analysis; port competitiveness; port management; port competition.
Evaluation of Key Success Factors of Port-City Waterfront Development
by Kamonchanok Suthiwartnarueput, Paul Tae-Woo Lee, Krisana Visamitanan, Zaili Yang, Adolf K.Y. Ng
Abstract: This paper further investigates the key successful factors in waterfront port development (WPD). Consistent Fuzzy Preference Relation(CFPR), with the combination of the Preference Ranking Organization METHods for Enrichment Evaluation (PROMETHEE), is applied to six ports, namely Busan, Incheon Inner Port, Bangkok, Kaohsiung, Montreal and Liverpool. The latter technique is to evaluate performance of the WPD among the studied cases, while the former to draw KSFs of the selected ports. To draw meaningful comparison with the test results from Lee et al. (2014; 2016), this paper takes the same evaluation hierarchy in the questionnaire form in the previous studies. With a further validity of the previous findings in WPD studies, this paper does not only provide insight on exploring the generalization of KSFs in WPD in a longitude manner, but also contributes to the literature of WPD and port-city interplays.
Keywords: Key successful factor; Waterfront port development; Consistent Fuzzy Preference Relation; Preference Ranking Organization METHods for Enrichment Evaluation (PROMETHEE).
Hedging Voyage Charter Rates on Illiquid Routes
by Andres G. Mirantes, Javier Poblacion, Gregorio Serna
Abstract: Freight prices are heterogeneous, and not all the routes have the same liquidity of spot or futures prices; therefore, sometimes there are problems related to one, or more, route hedges. In this paper, we develop a methodology to hedge the price risk of one route using other routes futures contracts. The main result of this paper is that we can hedge, with a great fit, the price risk of one route using other routes futures contracts. The hedging results obtained with our methodology outperform those obtained with standard simple regression procedures.
Keywords: Freight Rate; World Scale; Hedging Methodology; Kalman Filter.
Quantitative evaluation of dual operational-environmental port performance in the Pearl River Delta
by Yifei Zhao, Qinghua Zhu, Ying Kou, Y.H. Venus Lun
Abstract: This study quantitatively evaluates the dual operational-environmental performance of the ports in the Pearl River Delta (PRD) region in China. Factor analysis is first applied to identify the common factors for comprehensively ranking the level of dual operational-environmental performance of each port. Environmental treatment, port conditions and development potential are identified as the common factors. The Port of Shenzhen is found to have the best performance in environmental treatment and development potential, while the Port of Guangzhou has the best fundamental conditions. Cluster analysis is then applied to compare the clusters of ports in the PRD region with and without green elements. It is found that small and medium-sized ports need to respond the call of Chinese government on provincial-level unified port platform to realize dual operational-environmental performance.
Keywords: Dual operational-environmental performance; Quantitative evaluation; Cluster analysis; Factor analysis; PRD region ports.
A conceptual framework that monitors port facility access through integrated Port Community Systems and improves port & terminal security performance
by Ioannis Koliousis
Abstract: Ports and terminals are considered critical infrastructure with higher protection requirements for an effective and efficient operation. This research introduces a security enhancement architectural framework for the specific case of port and port terminal facilities passenger traffic, combining two different attributes, the cyber and the physical, and operationally integrating the proposed subsystem to the Port Community System. More precisely, this paper identifies, introduces and analyses a system that supports risk management by developing and validating a security framework which is based on monitoring access through Automated Border Control (ABC) structures aimed at ports and terminals. Additionally, the modular prototype developed, enhances the information sharing capabilities of the Port Community Systems in a way that improves collaboration for security related procedures, based on existing and easy to develop software capabilities. The architectural framework is validated by domain experts through semi-structured interview workshop improving the robustness of the top-down model for the design and the implementation of a risk management approach based on improved communication sharing and utilizing advanced equipment.
Keywords: Port Community Systems; security; risk assessment; risk management; automation; threat analysis; information sharing; access control.
Applying QFD to assess quality of short sea shipping: An Empirical Study on Cross-Strait high speed ferry service between Taiwan and Mainland China
by Sheng Teng Huang, Kuo Chung Shang, Chien Min Su, Ki Yin Chang, Yi Ting Tzeng
Abstract: The aim of this paper is to improve the quality of high speed ferry service between Mainland China and Taiwan. Since 2014, a shipping company in Taiwan has formally served the Taipei-Pingtan route connecting the Cross Strait passengers and cargo. Compared with air transportation, the high-speed vessel industry is particularly characterized by its relatively cheaper prices and convenience.
Tourist passengers are now the main users of high speed ferry service, and the number of business passengers still has the potential to grow. This research applies quality function deployment (QFD) to transform the voice of passengers to prioritize key technical measures for quality improvement. An empirical study is performed to evaluate the service quality of an anonymous entity in Taiwan. Through completing the house of quality (HoQ), important technical measures such as Professional crew and staff training in etiquette, No. of internal seminars and meetings for customer service, and ISO certificate and quality manual are the main findings to improve the high speed ferry service quality and its implications are revealed for practitioners, policy-makers and other stakeholders in relation to the high speed ferry industry
Keywords: high-speed ferry; quality function deployment; house of quality; service quality
Keywords: high-speed ferry; quality function deployment; house of quality; service quality.
Competitive Advantage Improvement Strategy of Container Shipping Industry: Case of Indonesia
by Bijaksana Gena, Daryanto Arief, Kusumastanto Tridoyo, Zulbainarni Nimmi
Abstract: Several previous studies have discussed the strategy of increasing the competitive advantage of the container shipping industry in a country level. However, it tends to use fragmented strategy approach. This research proposes its novelty using the MBV paradigm and encourages the implementation of a more comprehensive strategy at the national level, industry and corporate level by making SSCM a mediating factor in enhancing the competitive advantage of the industry. This research collecting respond from 100 higher management level of business user and actors of Indonesia container shipping industry. This research applies mixed methodology that using structural equation model partial leased square SEM-PLS and qualitative approach through in-depth interview and FGD. This research concludes that, there is three focuses of strategy to develop competitive advantages of container shipping industry in Indonesia: ensuring demand sustainability, increase sustainable supply chain performance and government support through regulation.
Keywords: Competitive Advantage; Container Shipping; SEM-PLS; Sustainability; Indonesia.
The Effect of Mergers and Acquisitions Announcements on Shareholder Value of Chinese Logistics Companies
by Weihua Liu, Cheng Si
Abstract: This paper studies the effect of M&A announcements on shareholder value of listed companies from Chinese logistics industry. Using event study method, this research examines the market reaction to 181 initial announcements of successful M&As between 2000 and 2016. Some important findings are obtained. Firstly, we found a significantly positive mean market reaction (1.125%) to successful M&As for acquiring firms. Secondly, the market reaction was more positive for firms with a higher level of logistics service integration. The higher the logistics subsector concentration, the higher the abnormal returns. The market reaction to mergers involving the vertical integration of logistics service is more positive than those involving the horizontal integration of logistics service. Finally, the post hoc analysis find that the market reacts negatively to failed M&As (-1.53%).
Keywords: M&A announcement; Stock market reaction; China’s logistics industry; Post hoc analysis; Event study.
A Value Chain Analysis of a Seaport from the Perspective of Industry 4.0
by Sedat Baştuğ, Gamze Arabelen, Ceren Altuntas Vural, Durmus Ali Deveci
Abstract: The main aim of this study is to reveal the role and contribution of Industry 4.0 in the value chain of seaports. It first reviews the literature to identify value chain activities in the port industry. It then explores the Industry 4.0 applications utilized by ports through content analysis of the websites of ten (10) major innovative seaports. Seven main technological characteristics of Industry 4.0, namely digitalization, autonomization, transparency, mobility, modularization, network-collaboration and socializing, are used as the main research main categories. The findings show that ports engage with Industry 4.0 in four different modules namely port community systems, cyber-physical systems, internet of things and big data. These four modules enable ports to achieve cost leadership advantages in their quest for competitiveness. To achieve differentiation, on the other hand, they need to increase connectivity with customers and stakeholders through communication channels such as social media.
Keywords: Industry 4.0; Seaports; Value Chain; Competitive Advantage.
Integrated Simulation and Optimization of Scheduling Yard Crane and Yard Truck in Loading Operation
by Pengliang Cao, Guiyan Jiang, Senjia Huang, Lingqi Ma
Abstract: To further decrease turnaround time of container vessels, synchronous scheduling of yard crane (YC) and yard truck (YT) with the impact of quay crane (QC) is mainly considered. On this basis, the interference between YCs, YT pool strategy and other practical constraints, are also taken into consideration. Firstly, this problem formulated as a mixed integer programming model to minimize the makespan of loading operation. Due to the computational intractability, the multi-layers genetic algorithm is introduced to solve the problem with a simulation model, then an improved algorithm and an algorithm accelerating strategy are also designed to further improve the optimizing efficiency. Finally, 2 sets of experiments with over 300 tests are conducted by 8 elastic compute services on Alibaba Cloud to validate necessity of considering the impact of QC and the solution quality and effectiveness of the proposed methods.
Keywords: Integrated scheduling; Container terminal; Simulation optimization; Multi-layers genetic algorithm; Algorithm accelerating strategy.
Key antecedents to achieving flexibility in maritime logistics industry: empirical evidence from China
by Xiaohui Jia, Zhongzhen Yang
Abstract: The aim of this paper is to recognize key antecedents which are absolutely necessary to achieving flexibility in maritime logistics industry. Methodologically, personal interview and a three-round Delphi survey are used for data collection. We test the key antecedents and derive a ranking of the importance of these antecedents. These findings allowed us to build a model of key antecedents to flexibility in the industry. The Canonical Correlation analysis reveals that the interrelationships among sets of key antecedents are positive and strong. The results offer managerial insights for companies in the industry to improve their responsibility to uncertainty.
Keywords: antecedents; Canonical Correlation analysis; China; flexibility; maritime logistics; the Delphi technique; z-statistic.
Integrated dedicated berth allocation and specialized handling equipment assignment in bulk ports
by Dolores Perez, Jian Gang Jin
Abstract: This paper addresses the berth allocation problem in bulk ports to enhance the operation efficiency of a bulk cargo terminal by integrating the berth allocation and handling equipment assignment decisions. Apart from deciding where to berth a bulk carrier, ports must allocate specialized equipment based on the type of cargo the vessel carries. The proposed mathematical optimization model considers a discrete berth layout and specific transfer rates of handling equipment such as conveyor, pipelines, grab cranes and cement facilities, with the objective of minimizing the overall port stay time. The developed optimization model was tested with data retrieved from real-world bulk ports and it can be efficiently solved by the commercial solver CPLEX. Results show that it successfully assigns vessels to dedicated berths evading congestion. Furthermore, the model properly allocates berth positions and specialized handling equipment reducing the overall turnaround time, thus improving customer service.
Keywords: bulk port; berth allocation; handling equipment assignment; shipping logistics.
Shipbuilder country and second-hand price
by Floriano Pires Jr, Ricardo Fiasca, Luiz Assis
Abstract: The hypothesis that a shipbuilders country influences the second-hand price of ships is tacitly accepted by most market analysts and practitioners. This article presents an econometric analysis to test this hypothesis. The analysis is based on econometric modelling of second-hand ship prices. The regressors include ship deadweight, ship age, indexes of earnings and newbuilding prices, LIBOR, and dummy variables that represent the build country or region. Models specific for tankers, bulk carriers and containerships were estimated. The analysis has generally shown that the effect of a ships build country on the second-hand price may be statistically significant. Additionally, an assessment of the time evolution of this effect has been performed on bulk carriers built in Japan that were sold from 2003 to 2017. The results indicated some negative correlation between the market state and the price differentials associated with the build country.
Keywords: second hand ship price; shipbuilding country and ship value; shipping econometrics; shipping markets; ship price modelling; bulk carriers second hand value; tankers second hand value; containerships second hand value; econometric modelling; second hand ship price influencers.
An evaluation of alliance motives, shipping alliances, and alliance performance in Taiwan
by Chung-Shan Yang
Abstract: We introduce the transaction cost and market entry views as two critical motivations for shipping alliances and argue that shipping alliances increase alliance performance (i.e., improve oversupply, financial distress, and excessive competition). This study empirically evaluated the effects of transaction cost, market entry, and shipping alliances on alliance performance in a maritime shipping context. Data were collected from a survey of the Directory of the National Association of Shipping Agencies and Companies. A factor analysis was employed to identify the key dimensions, and a subsequent analysis was conducted using a structural equation model to test the research hypotheses. The findings show that shipping alliances act as a mediator variable between transaction cost, market entry, and alliance performance. The theoretical contributions and managerial implications are proposed to serve as a basis for a wider discussion of shipping alliances.
Keywords: Shipping alliances; transaction cost; market entry; alliance performance.
Modeling and quantifying the effects of trade facilitation on trade and international transport costs using the Logistics Performance Index
by Riadh Harizi
Abstract: In order to investigate and analyze the factors behind the promotion of international trade, we propose the Logistics Performance Index (LPI) as a way to measure the facilitation of international trade. We suggest modeling transportation costs and their impact on trade according to a gravity approach. The impact of the LPI appears to be robust to the preferred specification (basic or with fixed effects) and to the different implemented econometric techniques (OLS, Tobit, PMLT), to the extent that we always obtain a significantly positive impact of the LPI for both the importing and exporting countries. Our results reveal two major mechanisms: (i) an improvement of the logistics performance index leads first to a reduction in transportation costs, and (ii) it further results in the expansion of trade. Econometric tests also show that a 10% increase in the index positively affects the probability of trade occurring, with it increasing by 30% in the importing country and by 40% in the exporting one.
Keywords: Gravity modeling; Heckman techniques in two steps; International trade; Logistics Performance Index; Transportation costs.
Modelling Inland Terminal Locations Based on Transport Cost Optimization
by Tomislav Rožić, Kristijan Rogić, Božidar Ivanković
Abstract: The position of inland terminal in transportation network depends on several elements. Selection of these elements has significant influence on its final location. This paper presents the quantitative method to define the optimal location of inland terminal in a node of railway network, primarily based on transportation cost savings. The key condition of the model is that all containers that are currently transported by road are to be transported primarily by rail from the seaport to the proposed location of the inland terminal. Onward transport to the destination can occur by road, rail or inland waterway where possible.
The model was validated on a real network, where the first point of entry is the Port of Rijeka (seaport) in Croatia, and the possible location of inland terminal is in the Port of Rijeka hinterland (inside the Croatian borders). The application of the model on a real network has proven its usefulness, especially in the case when there is need for additional criteria in the decision process of determining the inland terminal location.
Keywords: inland terminal; inland terminal location; transport cost optimization; modelling in logistics.
Economic Impacts and Significance of the Cruise Ports in the United States
by Grace Wang, Wen-Huei Chang, Yue Cui
Abstract: There are more than 50 federally authorized ports in the U.S. with presence of cruise ships, where the US Army Corps of Engineers (USACE) is responsible for construction, operations, and maintenance. However, federal budgetary funds are allocated mostly based on tonnages and commodities shipped rather than the number of passengers served. We aim to establish the economic impact platform to capture the complexity and the uniqueness of a cruise port in the value-added chain. From what comprises a cruise maritime cluster and to what extent core cruise business are integrated, the economic impact of a cruise port is much different from the existing literature considering only passenger consumption. A comprehensive model with port, cruise line operation, and the role of related business in the supporting industries is proposed. Through the simulation platform proposed, economic impacts on one the busiest cruise ports in the United States, Canaveral Harbor Florida, is calculated.
Keywords: cruise; economic impacts; cruise operation.
Risk in Port Logistics: Risk Classification and Mitigation Frameworks
by Kee-hung Lai, Markus Vejvar, Venus Y. H. Lun
Abstract: Ports are important nodes in maritime transportation networks. However, port managers face different types of risks in port operations which may disrupt cargo flows in the logistics chain. These risk factors are expected to increase in view of such global issues as climate change and geopolitical changes. An overview of risk classifications and mitigation strategies in port logistics can help academics and practitioners prepare for managing port logistics risks. This paper identifies and classifies risk in port logistics and proposes frameworks for managing risk and formulating mitigation strategies based on the two examples of the Ports of Rotterdam and Hong Kong. Our findings advance knowledge on the different risk factors with a practical step-by-step approach for addressing the risk in port logistics.
Keywords: port operations; risk classification; risk management; maritime logistics; continuous improvement.
Finding the Optimal Order of Priority for Dry Port Construction: Case Study in the North of Vietnam
by Viet Linh Dang, Gi-Tae Yeo
Abstract: The development of the Vietnam dry port system is facing many difficulties, especially in matters of calling for investment as well as synchronization in developing transport infrastructure, such as between rail systems and dry port networks. The purpose of this study is to apply multiple-criteria decision analysis (MCDA) to investigate the determinants in prior implementations of dry port construction, as well as find the order of priority for dry port construction in Northern Vietnam. The results indicate that the possibility of transportation cost reduction is the most important factor, followed by the accessibility to highway road infrastructure and to seaports. Phu Dong dry port is indicated as the first port that should be invested in, thanks to its superiority in terms of geography, its ability to connect with the means of transportation as well as other factors, followed by the dry ports of Huong Canh, Lang Son, and Cao Bang.
Keywords: Dry port; MCDA; Fuzzy Topsis; Fuzzy Delphi; Optimal Order; Vietnam.
The most common type of disruption in the supply chain - evaluation based on the method using Artificial Neural Networks
by Augustyn Lorenc, Malgorzata Kuznar
Abstract: The article focuses on intermodal transport. Developed method was used in article to estimate the most common type of disruptions in supply chain, which turned out to be a cargo theft during road transport, and hence the probability of theft risk appearance, but presented in the article method can be useful to estimate the probability of appearance other types of disruptions in the supply chain. The article presents an outline of a complex method uses ANN for identifying and forecasting disruptions in the supply chain. This method is based on the latest data of disruptions in the supply chain, which allow for appropriate response to supply chain disruptions in order to minimize losses and costs associated with losses The developed model can be used to support decisions about additional cargo insurance for high risk of theft transport cases or the usage of monitoring systems for the location or parameters of the cargo.
Keywords: intermodal transport; supply chain disruption; supply chain resilience; cargo parameters monitoring; risk appearance in transport chain; intermodal transport risk.
Coordination mechanism framework for container dwelling time reduction
by Femi Yulianti, Senator Nur Bahagia, Andi Cakravastia, Rajesri Govindaraju
Abstract: Dwelling time contributed 36.3% to the total time of land transportation in 2017 and is one of the commercial instruments to attract cargo and generate revenue. The government of Indonesia has attempted to reduce dwelling time by improving infrastructure and reforming bureaucracy but so far has paid little attention to straightening out coordination mechanisms between actors. Few studies have been conducted on port management integrated planning and control of all seaport areas and on coordination mechanisms related to dwelling time. This paper seeks to fill this gap with the question: How can coordination mechanisms between actors be conducted to reduce dwelling time? For answering this question, a coordination framework was built as the basis for the development of three coordination mechanism models.
Keywords: container; coordination; dwelling time; port.
The volatility transmission between crude oil market and tanker freight market
by Lei DAI, Hao HU, Yu TAO, Seungwon LEE
Abstract: International crude oil and tanker shipping markets interrelate closely not only because tanker is the main mode of transportation for transporting crude oil but also the major cost of shipping
Keywords: Crude oil price; Tanker freight; Volatility; BEKK-GARCH model.
Evolution and Container Traffic Prediction of Yangtze River Delta Multi-Port System (2001-2017)
by Hongxiang Feng, Manel Grifoll, Pengjun Zheng
Abstract: Yangtze River Delta (YRD) region is a port agglomeration with the densest port distribution and highest throughput in China. Since 2003, three mega provincial port groups: Shanghai International Port (Group) CO., LTD. (SIPG), Zhejiang Province Seaport Investment & Operation Group Co. (ZPSIOG) and Jiangsu Port Group Co., Ltd. (JPG) formed in YRD multi-port system. Firstly, this contribution investigates the latest concentration tendency of YRD multi-port system with Concentration-Ratio, Herfindahl-Hirschman-Index and Shift-Share-Analysis. Results show that ZPSIOG is the major winner; SIPG is losing its oligopoly since 2012; SIPG, ZPSIOG and JPG are reaching a tripartite equilibrium in market share. Secondly, the contribution uses ARIMA model, linear regression model and GM (1, 1) model to forecast container throughput of SIPG, ZPSIOG, JPG and YRD. By mean absolute percent error (MAPE) criteria, all models have good or reasonable performance, ARIMA model obtains the best performance with MAPE of 2.37%, 2.41% and 6.54% when time series seem linear, however does not have excellent performance (MAPE is 14.26%) when time series is non-linear. Finally, we compare the indirect and direct method to forecast the YRD container throughput. In this case, the MAPE decreases from 6.54% to 3.85% respectively using the ARIMA model, which supports the out-performance of indirect forecast method. The combination of the analysis of the concentration index and forecasting methods has allowed to gain insight in the evolution and prospects of YRD container multi-port system.
Keywords: concentration; ARIMA; grey system; linear regression; indirect forecast.
International intermodal container shipping network in South Asia: Modelling and policy simulations
by Ryuichi Shibasaki, Tomoya Kawasaki
Abstract: This paper focuses on the international intermodal container cargo shipping network in South Asia. A two-layered network assignment model of international container cargo is applied to this region, for simulating the impact of policies designed to increase the level of international logistics infrastructure. The first simulation, which focuses on the improvements of the road and rail networks around the largest port in this region (Jawaharlal Nehru Port Trust, or JNPT), reveals that Indian west coast ports are very competitive in acquiring cargo both originating from and destined to Delhi. More importantly, these west coast ports face critical capacity constraints for hinterland shipping around JNPT. The second simulation estimates the effect of the recommencement of the international ferry connecting South India and Sri Lanka and suggests that the reduction of cross-border barriers and improving connected rail services are essential for promoting the international ferry service.
Keywords: intermodal transport; global maritime container shipping; network assignment; South Asia; logistics policy simulation.
Solving the Empty Container Problem using Double-Container Trucks to Reduce Vehicle Miles
by Maged Dessouky
Abstract: This paper proposes a mathematical model for the empty container reuse problem using double-container trucks. The model discretizes time and makes sure demand is met. Several model properties are presented, along with two heuristics that allow the model to be solved. By solving the empty container reuse problem, truck miles can be reduced since less truck trips are needed to satisfy the demand. Furthermore, since double-container trucks can deliver two containers per truck trip, the amount of trucks needed to satisfy the demand is decreased even more, further reducing truck miles. This will in turn make the system more environmental friendly. The model is then tested using the data from the Ports of Los Angeles and Long Beach, and on randomized data sets.
Keywords: container management; empty container problem; integer programming; double-container trucks.
Green Port Performance evaluation under uncertainty: A multiple attribute group decision analysis
by Dan Zhao, Tiantian Bao, Kevin Cullinane, Yuhong Wang
Abstract: This paper aims to assess the performance of a port within the context of its supply chain on the basis of integrating a five-dimensional balanced scorecard with green performance criteria. A multiple attribute group decision making (MAGDM) approach is proposed which encompasses both intuitionistic fuzzy set theory and evidence theory in order to properly represent and aggregate the uncertain information which prevails within any process of such an evaluation. With an empirical application, the evaluation results provide effectively not only the ranking order of all alternative port enterprises, but also the strengths and weaknesses of each one, at the detailed level of individual performance attributes.
Keywords: MAGDM; Green port; Supply chain management; Performance evaluation; Intuitionistic fuzzy set; Evidence theory.
Special Issue on: Waterborne Transport Information and Safety
Remote Interactive Platform for Matching Design of Ship Screw Propeller and Diesel Engine Based on Internet Plus
by Kun Yang, Biao Hu
Abstract: In order to meet the requirements of the remote ship propeller matching design, and can feed the measurement data to the offshore calculation model to guide the design of the ship propulsion system, this paper designed a screw propeller matching computing platform based on the Internet. The platform was built on the B/S architecture, combined with MATLAB and C# for mixed programming, and used Easyui plug-in set to design user interface. The open water characteristics of the ship were selected as the fundamental data of the whole process of matching calculation. The platform was tested by three parts: the preliminary matching, ultimate matching and cavitation checking. By comparison, the difference between calculated value and actual value is very small, which can meet the accuracy requirements. This platform can provide an engineering basis for the online working condition monitoring of the ship power system and the dynamic matching of the ship propeller in the "Internet plus" environment in future.
Keywords: Ship Screw Propeller; Diesel Engine; NET; MATLAB; B/S.
Density-weighted ant colony algorithm for ship trajectory reconstruction
by Xianzhe Zhang, Yanming Chen, Manchun Li
Abstract: With the development of the international ocean shipping and the increase in the automatic identification systemreceiving equipment, the availability of ship trajectory data has shown explosive growth. To reduce the uncertainty in the application of sparse ship trajectory data in the open sea, this paper proposes the use of an ant colony algorithm based on node weights and edge weights for ship trajectory reconstruction. First, the extracted ship stop areas are used as the starting and ending marks of the ship's voyage, and the ship's trajectory is cut to form a plurality of consecutive voyages and stored in the prior knowledge base. Second, the navigational habits of the voyagers is attributed to the data mining problem based on the ship's trajectory point directed neighbourhood density map, and the density-weighted ant colony algorithm is used to extract the trajectory density centerline of each route. Finally, the matching degree is used to associate the single-voyage trajectory points with the corresponding centerline, and the trajectory reconstruction of the single-voyage segment is realized by the spatial transformation of the geometry of the centerline. In addition, in order to further experiment the proposed method for the reconstruction of trajectory in the large scale, this paper also uses the reconstructed trajectory to extract the distribution of ship traffic flow in the study area. The experimental results show that compared with the piecewise cubic spline interpolation method, the variance, standard deviation and mean of the proposed trajectory reconstruction method are improved by 96.18%, 80.47% and 85.10%, respectively. In summary, the proposed trajectory reconstruction method can reconstruct ship trajectories in open seas more accurately.
Keywords: AIS; ship trajectory reconstruction; ant colony algorithm; ship trajectory density centerline; rubber sheet method.
Risk Analysis of Petroleum Transportation using Fuzzy Rule-Based Bayesian Reasoning
by Ayman Alghanmi, Zaili Yang, Eddie Blanco-Davis
Abstract: Petroleum Transportation Systems (PTSs) play a critical role in the movement of crude oil from its production sites to end users. Such systems are complex because they often operate in a dynamic environment. Safe operations of the key components in PTSs such as port and shipping are vital for the success of the systems. Risk assessment is a powerful tool to ensure the safe transportation of crude oil. This paper applies a mathematical model to identify and evaluate the operational hazards associated with PTSs, by incorporating a Fuzzy Rule-Based (FRB) method with Bayesian Networks (BNs). Its novelty lies in the realisation of risk analysis and prioritisation of the hazards in PTSs when historical failure data is not available. This hybrid model is capable of assisting decision-makers in measuring and improving the PTSs safety, and dealing with the inherent uncertainties in risk data.
Keywords: Bayesian belief network; fuzzy set theory; maritime risk; maritime transport; petroleum transportation.
Solving inland container ship stowage planning problem on full route through a two-phase approach
by Jun Li, Yu Zhang, Lanbo Zheng
Abstract: Inland container ship emphasizes capacity utilization due to its limited capacity. Its stability is very sensitive to the stowage plan. The shipping line planners are under pressure to make efficient stowage plan on full route. This paper proposes adopts a two-phase approach to separate the problem into two planning levels: Multi-Port Master Bay Plan Problem (MP-MBPP) on full route and Slot Plan Problem (SPP) for each bay at each port. The mathematical models are proposed respectively for both sub-problems based on mixed integer programming. For each sub-problem, the Greedy Randomized Adaptive Search Procedure (GRASP) and the Heuristic Evolutionary Strategy Algorithm (HES) algorithm are proposed respectively. The Grey Entropy Parallel Analysis Method (GEPA) method is presented to guide HES in multi-objective optimization. Experimental results based on real-world scenarios are presented to show the efficacy of proposed algorithms and method.
Keywords: Inland container ship; stowage planning; two-phase approach; greedy randomized adaptive search procedure; heuristic evolutionary strategy algorithm; grey entropy parallel analysis method.
Analysis of performance influence factors on shipboard drills to improve ship emergency preparedness at sea.
by Burcu Ozturk Tac, Emre Akyuz, Metin Celik
Abstract: Emergency preparedness is a critical aspect of ship management. It is required to establish strict procedures including drill and exercise programs to response emergency situations at any time. This study develops an approach to identify and quantify the influence factors to ship emergency preparedness demonstrated in drills on-board. A fuzzy DEMATEL (Decision Making Trial and Evaluation Laboratory) method is considered as a suitable method for the problem. As the DEMATEL method enables to identify and analyse the potential critical factors with respect to causal-effect relation, fuzzy sets tackle the uncertainty in decision-making. As a case study, the affecting factors to predefined steps (i.e. time of sounding the fire alarm) of an operational firefighting drill organization is analysed. The study is expected to contribute to the forthcoming studies on prediction of ship emergency preparedness level on-board ships.
Keywords: ship emergency preparedness; firefighting drill; ship operation management.
The Impact of Information Sharing on Installation Processes of Offshore Wind Farms Process Modelling and Simulation Based Analysis
by Thies Beinke, Moritz Quandt, Abderrahim Ait-Alla, Michael Freitag
Abstract: The installation of offshore wind energy turbines is accompanied by great challenges arising from the dynamic environment, which influences logistics processes. Communication plays a major role for cost-efficient installation processes, due to the coordination needed between different partners involved in the offshore wind energy supply chain. A detailed process analysis revealed the importance of shared information about weather conditions, storage capacities and vessel availabilities. By applying a simulation study, which evaluates eight Information Sharing scenarios, the influence of the following execution time-related performance measures is investigated: average time in manufacturer storage, average time in port, total installation time and average vessel usage time. As a result, the simulation study verifies that sharing information between supply chain partners can contribute to more efficient logistics processes. However, the achievable prediction accuracy and the interdependencies between the information items have a major influence on the quality of results.
Keywords: process analysis; information sharing; simulation study; offshore wind energy; installation process of offshore wind farms.
Special Issue on: Port Sustainability and Resilience
A Holistic Sustainability Framework for Oil Terminals: The Case of China
by Xuemuge Wang, Shaofeng Liu, Jingjing Xu, Michael Roe
Abstract: This research provides a sustainability framework for the Chinese oil terminal sustainability performance evaluation in oil terminals operational and managerial conditions. Due to the lack of holistic oil terminal sustainability research in the existing literature and the increasing demand for sustainability pursuits, the developed sustainability framework is expected to be able to act as holistic guidance for port managers to systematically improve oil terminal sustainability performance by showing which indicators and groups should be considered. In the beginning, a rich amount of comprehensive existing Sustainability Performance Indicators from the literature are identified. Then, by the conduction of semi-structured interviews with 34 experts within the field, omitted practical or included unpractical indicators are added to / eliminated from the framework to finalise a holistic and practical Chinese oil terminal sustainability framework. After the thematic analysis of interview results, 14 categories and 65 indicators are identified for the practical holistic sustainability framework. Convincingly, this research emphases combining theories into practices via the validation and replenishment of the existing Sustainability Performance Indicators by experts to enhance the reliability and feasibility of the forwarded sustainability framework. As a result, this research contributes to the existing literature a holistic oil terminal sustainability framework, and for the first time assimilates the overproduction issue into terminal sustainability management.
Keywords: Sustainability Framework; Sustainable Indicators; Oil Terminal; Port Overproduction.
Service recovery and customer satisfaction in container liner shipping industry An ordered LOGIT approach
by Enna Hirata
Abstract: This paper assesses the responsiveness of service recovery process to customer satisfaction in container liner shipping (CLS) industry. The research deals with real-world business events, conducted using a survey method, in which customers evaluate service recovery scenario and complete a questionnaire with respect to CLS carriers they had recently patronised. Estimated by ordered logit regression method, the results show that timeliness of communication is the most significant service recovery attribute. It also finds that customers in different segments prefer receiving recovery resources in different ways; effective service recovery could help improve customer satisfaction and service recovery paradox exists in the industry. The findings contribute to the understanding of theoretical explanation of service recovery attributes and provide managers with useful guidelines for establishing effective recovery process. Unlike other research, this paper draws on data from actual customers in CLS industry and therefore benefits from increased external validity.
Keywords: container liner shipping; CLS; service recovery; customer satisfaction; BCO; beneficial cargo owners; FFW; freight forwarders; service recovery paradox; ordered logit model; survey; recovery attributes; external validity.
Special Issue on: Shipping and Port Economics and Policy In Memory of Richard Goss
Goss and ensuing research in shipping and port
by Young-Tae Chang, Paul Tae-Woo Lee
Abstract: The late Professor Richard Goss published 25 journal papers and edited two books and three monographs during his academic life of three decades. This paper revisits his work and examines whether ensuing research in shipping and port areas have been aligned with his academic thought and ideology. To this end, we first review his work to identify key concepts, theories and methodologies underlying his academic reasoning. Moreover, we utilise Chang et al.'s (2018) research outcomes to examine whether his theoretical propositions are still valid today in terms of both theory and empirical findings. We discuss whether there is a foregone conclusion on Goss' major themes and propositions or requires further empirical testing, and whether there exists the possibility to develop new theories and hypotheses. Based on our findings, we suggest future research directions in the shipping and port sectors.
Keywords: Richard Goss; maritime economics; port and shipping; shipping policy; port efficiency.
Port policy: are the Goss principles still relevant today?
by Mary R. Brooks, Sheila Farrell
Abstract: In 1990, Richard O. Goss wrote four seminal articles about the economic principles underlying port policies, which were published in Maritime Policy and Management under the title Economic Policies and Seaports. These explored the economic functions of seaports, the diversity of port institutions, the need for port authorities, and the strategies that ports might adopt to promote port efficiencies. Economic principles included the existence of seaports for the benefit of traders, the use of competition to maximise public welfare, the customisation of port institutions to meet local circumstances, and the need to involve all levels of government in seaport governance. This paper looks at the relevance of these principles today, and asks what further research is needed to fully understand that relevance.
Keywords: seaports; port policies; port reform; governance; institutions; port competition; regulation.
Principles in practice: an examination of cascading
by Trevor D. Heaver
Abstract: This article examines the concept of cascading of container ships and the relationship of cascading to fleet management. It is written to apply two of the legacies that Richard Goss left to the maritime community: discussion of maritime topics through conferences and journals; and the application of basic economic principles to shipping. Richard had a special interest in the many aspects of the economics of ship size. The increases in the size of container vessels on the East Asia to Northwest Europe route since 2000 gives rise to the type of concept that Richard might have examined; the cascading of ships. The concept of cascading is examined in the light of basic aspects of the economics of ships size. It is shown that cascading does not take place simply because of the displacement of large vessels from certain routes but is dependent on the presence of various dynamic forces affecting the fleet deployment decisions of lines. Cascading is shown to be a process guided by management decisions affected by financial as well as economic considerations. It is not as simple as water running downhill.
Keywords: ship cascading; container vessel deployment; optimal ship size.
International port investment of Chinese port-related companies
by Weiwei Huo, Peggy Shu-Ling Chen, Wei Zhang, Kevin X. Li
Abstract: The devolution of Chinese port governance since the 1990s has resulted in not only private sectors' involvement in Chinese port investment and development but also allowing local port groups and terminal operators to implement international strategies to expand their business. This paper overviews the current implementation on international port investment of these two types of Chinese port-related companies. By analysing 39 international port investment cases, this paper finds the belt and road initiative (BRI) may promote China's investment in foreign ports. In addition, four main investment modalities are adopted, i.e., acquisition, joint venture, concession and build-operate-transfer (BOT). The companies mainly form a partnership for investment, and some of the investment projects involve an integration of the development of ports, industrial parks and cities. Of notice is that some investment projects are through a public-private partnership (PPP) model, i.e., Chinese companies as private entities and public sectors in the host countries.
Keywords: port; China; public-private partnership; PPP; port investment; investment modalities; international shipping.