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International Journal of Shipping and Transport Logistics
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International Journal of Shipping and Transport Logistics (43 papers in press)
Special Issue on: Y-RIB 2019/5th Belt and Road Initiative Conference 2020 Structural Changes in Global Transport and Logistics Since the Inception of the Belt and Road Initiative
Abstract: China's Belt and Road Initiative (BRI) has the merit of contributing to regional economic development in tandem with infrastructure investment along economic and transport corridors. However, the issue of its sustainability has been raised due to enormous capital requirements and low profitability. Moreover, the outbreak of the COVID-19 has caused incomparable economic damage and supply chain disruptions worldwide in the form of entry bans, quarantines, trade blockades, and global protectionism, which are barriers to international trade and work against the development of the global value chain (GVC). This paper aims to quantitatively estimate the impact of COVID-19 on GVC adjustment by region and industry and derives policy implications based on the decomposition of value added (VA) and vertical specialization (VS) trade. It is estimated that the GVC will shrink by 4.8% - 20.2% in terms of VS trade depending on various scenarios.
Keywords: COVID-19; Belt and Road Initiative (BRI); Global Value Chain (GVC); GVC adjustment; quarantine and blockade; resilience; vertical specialization trade.
Has the Belt and Road Initiative Promoted Railway Logistics Efficiency? An application of three-stage DEA
by Yaokun Zhang, Junyong Xiang
Abstract: The main goals of the Belt and Road Initiative (BRI) include policy coordination, connectivity of infrastructure, and unimpeded trade. Almost six years have passed since the BRI was implemented, and there is an urgent need to evaluate logistics efficiency of BRI countries and explore the changes. This study focused on 23 countries along the New AsiaEurope Continental Bridge (NAE) and the ChinaCentral AsiaWest Asia Economic Corridor (CCW). Using three-stage data envelopment analysis and stochastic frontier analysis methods, we evaluated each countrys railway logistics efficiencies, consisting of technical efficiency, pure technical efficiency, and scale efficiency, and then identified possible environmental factors. The results showed that BRI countries logistics efficiencies are uneven and could be affected by digitalisation level, economic openness, and industrial structure. NAE countries benefited more from BRI than CCW countries. Although some countries efficiencies remain less than satisfactory, BRI has effectively promoted logistics efficiency on the whole, especially through enlarging the scale efficiency of the railway logistics.
Keywords: Belt and Road Initiative; railway logistics industry; logistics efficiency; three-stage DEA; data envelopment analysis; stochastic frontier analysis; SFA.
Key Factors That Influence the Performance of China Railway Express Operations: Case Studies of 10 Lines in China
by Zhaolin Cheng, Laijun Zhao, Huiyong Li
Abstract: As more and more China Railway (CR) Express lines have opened under the govern-ments Belt and Road Initiative, the performance of CR Express operations has var-ied widely. Many CR Express lines face problems such as low demand, infrequent departures, and heavy reliance on local government subsidies. In this study, we ana-lyzed the key factors that influence the performance of CR Express operations through a case study of 10 typical CR Express lines. We found that local market de-mand, government incentives, central government policy, infrastructure at the CR Ex-press departure stations, and matching the geographical location to the operational mode are the key factors in successful CR Express operations. Central government policy can also stimulate local market demand and government incentives can promote infrastructure construction. The key factors that we identified interact, and can jointly increase the performance of CR Express.
Keywords: CR Express; Key Factor; Operations Performance; Case studies;Belt and Road.
Study on Evaluation of Transport Routes between China and Myanmar in the context of Belt and Road Initiative by Fuzzy AHP-TOPSIS
by Lixin Shen, Zin Chaw Su, Yang Xu, Cong Wang, Ke Jing
Abstract: Since the launch of the Belt and Road Initiative (BRI) in 2013, Myanmar has become a strategic location and important junction connecting the Indian Ocean with inland provinces in southwest China. However, due to the limited container port capacity and poor infrastructure, the country cannot establish efficient intermodal transportation routes between China and Myanmar. Accordingly, this paper attempts to optimize the selection of intermodal transport routes between Chongqing in China and Yangon in Myanmar by sea route and land route, applying fuzzy AHP and TOPSIS methods. The findings in this paper contribute to not only supporting Sino-Myanmar cross-border logistics enterprises to reduce transportation costs and enhancing collaboration between the two countries, but also helping policymakers, who play a key role in empowering and promoting the development of transport routes, proceed required improvements for the efficiency of intermodal transportation chains.
Keywords: Belt and Road Initiative (BRI); Myanmar; Intermodal Transportation; Sino-Myanmar Bilateral Trade; Fuzzy AHP; TOPSIS.
Negative Impact of Sino-US Trade Friction on Shipping Demand of the Pacific Route and its Mitigation by Interoperability with the Belt and Road Initiative
by Feng LIAN, Yuzhi Guo, Zhongzhen Yang
Abstract: To clarify the impacts of Sino-US trade friction on the shipping demand of the Pacific route as well as on Chinas export trade, the bilateral distances in four dimensions are integrated into a single trade distance between two nations. And then, a bilateral trade gravity model is built by taking GDP, trade distance, and logistics performance as independent variables. Chinas exports to the US as well as to the other partner countries are estimated in the cases with and without trade friction. The results show that trade friction will reduce Chinas export to the US by 3.05% and container traffic on the Pacific route will decline correspondingly, while Chinas export to the other 19 counties will increase by 2.4% on average. It can be said that the negative impact of trade friction on Chinas export to the US may be compensated by the export increase to other partner counties and China should strengthen it bilateral trade with the Belt and Road countries.
Keywords: Sino-US trade friction; trade distance; gravity model; pacific shipping route; freight demand; Belt and Road Initiative (BRI).
by Szu-Yu Kuo, Chin-Shan Lu
Abstract: This study empirically examines the determinants of the performance of outsourcing from a container terminal practitioners perspective. We attempted to examine the linkages between firms outsourcing management capabilities, outsourcing providers basic and specific capabilities, communication quality, partnership quality, and outsourcing performance. Data collection is from 145 practitioners in container terminal operators at Port of Kaohsiung in Taiwan. A moderated mediation model was developed for data analysis. The research findings showed that firms outsourcing management capability positively influenced outsourcing providers basic and specific outsourcing capability, and that outsourcing providers basic and specific outsourcing capability positively influenced outsourcing performance. Specifically, the results indicate that communication quality and partnership quality had moderating effects on the relationships between outsourcing providers basic and specific outsourcing capability, and outsourcing performance. Theoretical and managerial implications from the research findings on outsourcing management for container terminal operators are discussed.
Keywords: Container terminal; capability; communication quality; partnership quality; outsourcing performance.
Multi-product Distribution in Multi-supplier Combined and Capacitated Transport Networks
by Mojahid Saeed Osman
Abstract: The paper tackles the problem of capacitated transport vehicle routing for the combined distribution of multiple products for multiple suppliers. This real-life urban distribution-planning problem requires a solution that identifies a set of routes for carrying out the combined distribution in extensive multi-supplier distribution networks. The paper describes the development of a novel 0-1 model for modeling the routing problem to aid in the optimum routes for the combined distribution with the objective of minimizing the total distance traveled that significantly affects the transportation cost while satisfying demand and capacity constraints. For conducting a comparative analysis, the paper deploys a solution procedure that quickly leads to a good routing solution. The paper introduces a case study as an application scenario with three case-problems for illustrating the suitability and applicability of the proposed approach. The results are not surprising; the novel 0-1 model provides optimal solutions and outperforms the solution procedure.
Keywords: Routing; Multi-product; Multi-supplier; Combined Distribution; Transport Networks.
The Dynamics of Ports Hinterland Formation : A Probabilistic Cellular Automaton Approach
by Mabel Leva, Rodrigo Garrido, Alejandro Leon, Angel Ibeas
Abstract: This article presents a new methodology to determine the hinterland of a port as the aggregation of port choices made by interactive exporters. The main assumption is that exporters and ports interact in space and time between themselves, generating a complex system. Hinterland emerges as the aggregation of zones from which interacting agents send their shipments. This methodology builds upon the theory of cellular automata (CA), incorporating probabilistic components to allow for a rational representation of spatio-temporal exporters decisions. The CA\'s transition function includes neighbourhood interaction, network effects and ports attributes. The model\'s parameters are calibrated through a genetic algorithm. This methodology allows the estimation of ports demand capture as a time-dependent variable after a change in the ports level of service. This framework was applied to the automobile exports in Brazil, from 1997 to 2015, with a 73% of prediction success.
Keywords: Probabilistic Cellular Automaton; Port Choice Modelling; Hinterland; Freight Demand; Auto-mobile Exports.
A model with an efficient tabu search for the cash pickup and delivery problem
by Guoxun Xu, Yanfeng Li
Abstract: The cash transportation cost in the banking system, which is one of the most important components of the currency issuance cost, could be reduced by the optimization of the cash transportation process. In this study, we propose a cash pickup and delivery problem to deal with the distribution of new banknotes, the collection of used banknotes, and the disposal of damaged banknotes in the banking system. The proposed problem is formulated as a mixed-integer linear programming model to minimize the total transportation cost and the total penalty cost due to unmet target demand. An efficient tabu search heuristic is developed to solve the proposed problem. Numerical results illustrate the efficiency of the proposed solution method and demonstrate the effect of the risk threshold on the combination of cash denominations.
Keywords: cash transportation; pickup and delivery; mixed-integer linear programming; tabu search.
Attraction and subsidy analysis of the 21st-Century Maritime Silk Road: A hub line location approach
by Jianfeng Zheng, Lili Hou, Rui Mei
Abstract: As a sea route corridor, the 21st-Century Maritime Silk Road (TCMSR) has a potential impact on container routing between Asia and Europe. In this paper, all considered ports along this corridor are assumed to be hub ports, hence the TCMSR can be regarded as a hub line, similar to main line services in liner shipping. When transporting containers along the TCMSR, this paper considers the subsidy policy, represented by a subsidy factor. In order to explore the attraction and subsidy analysis of the TCMSR, a bilevel programming model is proposed. The upper level model aims to determine the optimal subsidy factor along the TCMSR, and the lower level model is formulated as a hub line location problem. By enumerating all different values of the subsidy factor, the bilevel programming model is reduced to the lower level model, which investigates the location of a new hub line and makes a comparison between the new hub line and the TCMSR. Computational experiments show that, the attraction of the TCMSR mainly depends on the subsidy policies to be implemented along the TCMSR. Moreover, the impact of different OD demand scenarios on hub arc utilization along the TCMSR is not significant.
Keywords: Liner shipping; Hub line location; TCMSR; Subsidy.
A novel risk assessment approach for strait/canal security evaluation along the 21st Century Maritime Silk Road
by Meizhi Jiang, Jing Lu
Abstract: The 21st Century Maritime Silk Road (MSR) designed by China is of great importance to maritime transportation, economic development, and environmental protection. However, the straits/canals along the MSR have been struggling with pirate attacks, terrorism, and accidents which pose challenges for the security of MSR. There is a strong need for further investigation in strait/canal security evaluation. However, the traditional risk modelling approach used in risk assessment indicates challenges due to its incapability of dealing with incomplete data, uncertainties, and subjective judgment. Thus, we propose a novel strait/canal security assessment framework to evaluate the security of the strait/canal along the MSR on the basis of a Fuzzy Evidential Reasoning approach. The subjective risk analysis information collection and processing process from multiple experts can be embedded in the framework in a systematic way to provide maritime stakeholders to evaluate maritime security along the MSR.
Keywords: maritime security; risk assessment; Maritime Silk Road (MSR); fuzzy evidential reasoning; quantitative analysis.
A hybrid evaluation approach using fuzzy TOPSIS and MSGP for catering food reverse logistics provider selection in airline industry
by Yan-Kai Fu, Chin-Nung Liao
Abstract: Reverse logistics provider selection is an important issue in catering food for airline industry. In previous research, the catering food industry generally lacked a formal reference method for reverse logistics providers selection in catering products. The objective of this paper is to develop an integrated approach, combining technique for order preference by similarity to ideal solution (TOPSIS) and multi-segment goal programming (MSGP) model to select reverse logistics provider. In addition, this method will guide decision makers (DMs) to evaluate reverse logistics provider by taking into account the tangible and intangible resource under catering company logistics strategic. The advantage of this approach is its consideration of both qualitative and quantitative criteria which allows DMs to set multiple segment aspiration levels for reverse logistics provider selection. A case study of application is also presented by using a catering food manufacturer.
Keywords: Techniques for order preference by similarity to ideal solution (TOPSIS); Multi-segment goal programming (MSGP); Multi-criteria decision making (MCDM); Fuzzy set theory; Triangular fuzzy number; Reverse logistics provider; Catering food.
Combined Monte Carlo Simulation and Memetic algorithm for a stochastic Multi-trip inventory routing problem.
by Saâdia KHOUKHI, Othmane EL YAAKOUBI, Chakib Bojji, Yahya Bensouda
Abstract: The present paper introduced, modeled, and solved a real-life logistics problem arising in the hospital complex of Rabat (Morocco). To manage efficiently the distribution process, hospital managers propose to adopt a vendor managed inventory system that involves the establishment of a central pharmacy, which will control the inventories of hospitals. The central pharmacy will also be responsible for delivering full roll containers of medicines to hospitals and the collection of empty ones for reuse in the next period. All deliveries and returns are performed simultaneously by a homogeneous fleet of vehicles that may perform several trips per period. Each hospital defines a time window wherein the service can begin. This problem is known in the literature as the multi-trip inventory routing problem with time windows and simultaneous pickup and delivery. Given the complexity of the problem, we propose a combined simulation-heuristic problem, which combines Monte Carlo simulation and Memetic algorithm. The performance and effectiveness of the proposed approach are clarified by computational experiments.
Keywords: Inventory routing problem; stochastic demand; Multi-trip; Simultaneous pick-up and delivery.
Time-Dependent Location-Routing Problem for Hazmat Transportation with Stop en Route: A Case Study for Fossil Fuels Distribution
by Mohammad Javad Jafari, Saduollah Ebrahimnejad, Misagh Rahbari, Arash Mohamadi
Abstract: Increased Hazmat transportation and its undesirable effects have caused that governments and researchers have a special focus on this problem. Therefore, various aspects of this field have been studied, that most of them have tried to reduce the total risk, travel time and costs. In this study, we assume stops in the intermediate nodes are allowed because stops en route as a short break may reduce the risk of the trip and deduct the probability of an accident. The proposed model mainly selects the best facility to assign to customer, finds the optimal route to serve the customers, and determines schedule for arrival time and departure time from nodes. Given that the proposed model is NP-hard, a NSGA II is used to solve it. In order to evaluate the efficiency of the proposed algorithm, a real case of fossil fuels distribution in IRAN is implemented. The computational results show that the proposed algorithm is an efficient algorithm to achieve near-optimal solutions for the medium and large-scale problems. Finally, it is concluded that the value of risk is less, when considering risk objective function in proposed model, than the condition in which risk as the objective function is not considered in model.
Keywords: Location Problem; Vehicle Routing Problem; Hazmat Transportation; Risk Assessment; Time-Dependent; NSGA II.
An Approximate Dynamic Programming Algorithm for Multi-period Maritime Fleet Renewal Problem under Uncertain Market
by Tingsong Wang, Xuecheng Tian, Xu Guan
Abstract: This paper studies the maritime fleet renewal problem under an uncertain market, including various uncertain factors such as ship prices, shipping demand, and freight rates. A dynamic programming model for this problem is proposed. However, the traditional methods to solve the dynamic programming model may encounter the challenge of curses of dimensionality due to their backward iterations used in these methods, which makes them cumbersome to be applied in practice. Therefore, an approximate dynamic programming (ADP) algorithm is employed to solve the proposed model in this paper. Finally, a case study is implemented to evaluate the applicability and performance of the ADP algorithm and analyse the impact of the uncertain market on fleet renewal. The fleet renewal plan obtained from our proposed methodology is more robust and adaptable to the uncertain market than that obtained from the deterministic model in which the various uncertain parameters are replaced by their predicted values.
Keywords: maritime fleet renewal; dynamic programming; approximate dynamic programming algorithm; uncertainty.
Corporate social responsibility as sustainability management: International shipping firms and financial performance
by Ann Shawing Yang, Suphathus Mekrangsiman
Abstract: Sustainability shipping management is analyzed via the relationship between corporate social responsibility (CSR) activities and financial performance. Panel data analysis with mixed-effect models is applied for the study period from 2008 to 2016. Container shipping shows significant positive influences of environmental and social activities on asset utilization efficiency and improvements of current financial performance compared with only environmental activities. Moreover, dry bulk and tanker firms show significant positive influences from social activities on improving the expected financial performance. East Asia-Pacific shipping firms show significant influence from environmental activities on improving financial performance, while their counterparts derive from environment and social activities to improve asset utilization efficiency and current financial performance. Despite the insignificant influence from CSR activities on expected financial performance, social activities exert significant negative influence on American, European, and South African shipping firms. Investors evaluate asset utilization efficiency and current financial values via returns on assets and returns on equity in CSR engagement for shipping firms.
Keywords: Corporate social responsibility; CSR; sustainability management; environmental performance; social performance; financial performance; return on equity; Tobin’s Q; shipping firms; container shipping; dry bulk shipping; tanker shipping; panel data regression; fixed-effect model; random-effect model.
An empirical analysis of structural breaks in world dry bulk shipping market
by Lei DAI, Danyue Jing, Hao Hu, Yifan Shi, Seungwon Lee
Abstract: Dry bulk shipping is an important element of international trade. However, as dry bulk shipping market is always influenced by unanticipated economic, financial or political events, structural breaks exist in vessel price volatility, while the price volatility characteristics under structural breaks have not been well identified. This paper aims to investigate the vessel price volatility under structural breaks caused by external events. The modified ICSS algorithm is applied to detect the structural break points and GARCH model incorporating structural breaks is used to examine the volatility of newbuilding and secondhand vessel prices of four dry bulk vessel types using monthly data from January, 2002 to November, 2012. Results show that the price volatility persistence effect and clustering effect decrease when structural breaks in variance are accounted. The findings may contribute to the literature in vessel price volatility modeling under structural breaks and may be helpful for practitioners.
Keywords: Dry bulk; Shipping; Volatility; Structural breaks; GARCH.
Unit Load Device Reassignment Following Temporary Airport Closures
by Chun-Ying Chen, Paul Schonfeld
Abstract: In this study, a reassignment model is developed for helping airline planners in reassigning unit load devices (ULDs), which include containers and pallets, to flights after temporary airport closures. The objective of the model is to minimize the system cost, which includes total delay time and the total penalty for leftover ULDs. To test the models efficiency and applicability, several problem instances of different scales are randomly generated based upon data from an airline in Taiwan. The sensitivity of results is analyzed. The results show that as weight capacity increases, more ULDs can be assigned, and average ULD delays increase. The approved ULDs quantity per flight increases, while the number of un-assigned ULD and average ULD delay time may decrease. Also, as the ULD weight increases, fewer ULDs can be assigned, and average ULD delay time may increase. The results show the usefulness of the proposed model for actual operations.
Keywords: Containers; Air cargo; Air freight reassignment; Service recovery; ULD reassignment; Airport closure; Mathematical programming.
Simulation and optimization for intermodal freight transport system with seaport and railway terminals
by Bing Li, Changyu Hu, Hua Xuan
Abstract: With the growth of economic globalization, intermodal transportation mode has received considerable attentions in recent years. For global trade, intermodal transportation can provide a more flexible service, as well as more reliable, profitable and sustainable transport instead of single-modal long-haul transportation. The study described in this paper attempts to develop a simulation platform for evaluating and optimizing the sea-railway intermodal freight transport system (SRIFTS) on the basis of economic considerations. Rail-sea combination is more attractive due to strictly schedule-based operation, low carbon emission, undertaking bulk commodity and main-line transport task. The operation process of SRIFTS is thoroughly analyzed from three aspects of wagon receiving-departure subsystem, vessel-to-wagon loading subsystem and wagon-to-vessel loading subsystem. And then the total operation costs of SRIFTS and utilization ratio of shunting locomotive as the optimization objective are proposed. To achieve this objective, the simulation platforms encompassing the two typically layout modes of SRIFTS are developed by Arena software and the hierarchical structure of this simulation module is respectively outlined in the simulation platform. The simulation-based optimization framework is built with the influence factors as the input parameters, input factors, output factors, and statistical measures. Finally, the simulation platform is carried out by concrete examples, which proves the rationality of the methodology in applying the output from the simulation program results to assessing the impacts produced by the adoption of different policies and enhancing the performances of the SRIFTS.
Keywords: intermodal transport; railway terminal; seaport terminal; placing-in wagon; taking-out wagons; simulation platform; shunting optimization.
Two Levels Model for Optimal Freight Transport Integration between Intra and Inter Islands in Indonesia as an Archipelago Country
by Kuncoro Harto Widodo, Yandra Rahadian Perdana, Joewono Soemardjito, Hendra Edi Gunawan, Iwan Puja Riyadi, Dwi Ardhianta Kurniawan
Abstract: Indonesia, as an archipelago country, needs to ensure the optimal flow of commodities or goods and the containers intra-islands and inter-islands as well, since each island usually has different potential commodities. For this we propose two levels model of freight transport. The first level is a commodity growth model which is used to describe intra-island flow of commodities based on its forecasting, and the second level is a generation-attraction of port-to-port model which is implemented to show the inter-islands flow of commodities. In order to illustrate the interaction of the models we selected Port of Tanjung Perak as one of the main ports in Indonesia. The result of the research showed the increasing trend of the next ten years estimation of the volume of selected commodities, the number of containers loaded and unloaded at the Port of Tanjung Perak, and the movement pattern of the commodities from port to port.
Keywords: Archipelago; freight transport; Port of Tanjung Perak; intra-island; inter-island.
Complex Network Evolution of the Key Coastal Ports in China Under the Belt and Road Initiative
by Xu Xu, Yanbin Yang, Yi Liu
Abstract: In order to promote the construction of The Belt and Road Initiative, we construct the complex network evolution model based on the complex network theory and node attractiveness. We select the relevant 2017 data of 18 coastal ports mentioned in the Belt and Road Initiative, and verify the validity of the model by comparing the network eigenvalues between evolving network and real network. The results show that the average distances between ports are short, clustering coefficient and dependence of hub ports are high, its topological structure has scale-free network characteristics and fits the power law distribution. Meanwhile, we study the change of network characteristics of the evolutionary network and real network under deliberate attack and random attack. The statistics show that the robustness is weak under deliberate attack but strong under random attack. These are great reference to the construction and development of Chinas Belt and Road Initiative.
Keywords: Complex network; Node attractiveness; Network evolution; Robustness; The Belt and Road Initiative.
A FEASIBILITY MODEL FOR DETERMINING THE NUMBER OF INSERTED ADDITIONAL FREIGHT TRAIN IN EXISTING SINGLE-TRACK TRAIN SCHEDULE
by Ahmad Rusdiansyah, Arrifah Ratna Sari, Kurnia Iswardani
Abstract: Delivery of goods by rail ways mode more frequently in the nightshift. While demand for goods delivery service are increase and the capacity in afternoon shift is more available. This research will conduct a heuristic technique using mathematical model Mixed Integer Linear Programming (MILP). The objective is to maximize the number of freight train that can be added in single-track train schedule with overtaking strategy. Overtaking strategy is a strategy that requiring a slow train to stop at a nearby station while waiting for a high-speed train to pass through. But, the model is not allowed to break the minimum safety distance between two consecutive trains, called minimum headway. The concept of train adding use the concept of train slot that insert a freight trains between fixed passenger train. The results showed that the minimum headway affect on the number of additional freight trains. The optimum minimum headway is 6 minutes, this value is appropriate with the minimum headway that has been determined by the transportation ministry. With this minimum headway, the freight train that can be added was 20 trains with details of 15 trains arriving at the destination station on time and the other 5 trains will occur delay which not exceeding 3 hours. The increasing in the carrying capacity is 1200 TEUs / day. When compared with the initial capacity, it means the addition of transport capacity can be reach up to 28.57%.
Keywords: train-slot; space-time graph; minimum headway; overtaking strategy.
A bi-objective approach to minimise cost and CO2 emissions in intermodal freight transport for biomass energy
by Rizwan Shoukat
Abstract: The purpose of this study is to investigate the bi-objective problem of minimising cost and CO2 emissions in the supply of biofuels for producing cheaper biomass energy in Pakistan. Our research studied the problem by taking Wheat Straw (WS) & Brassica Campestris (BC) as biofuels for a biomass plant. The bi-objective problem has been formulated with a mixed-integer linear programming (MILP) model. The data is obtained from one of the largest paper & board (P&B) industries in Pakistan. We solved our problem by applying a genetic algorithm (GA). Our results show a 50.4% saving by switching from road to road-rail transport to meet the demand of 1000 tons of biofuels per day, as well as a 66.35% reduction in CO2 emissions. Pareto optimal solutions generated by the genetic algorithm facilitate decision-makers by trading off cost & CO2 emissions. Moreover, this study can be extended by investigating the effects of biomass energy on the price of the product and markets.
Keywords: biofuels; biomass plant; genetic algorithm; cost; intermodal; CO2 emissions; paper & board.
Analysing Exhaust Emission of Oil Tanker Vessels Using Big Data in the Port of Singapore
by Zengqi Xiao, Jasmine Siu Lee Lam
Abstract: Exhaust emissions from ships negatively affect air quality, climate and human health. Emissions from tankers are often neglected while no existing study focuses on emissions from bunkering vessels within a port limit. This paper firstly utilises Automatic Identification System (AIS) data and establishes an emission accounting model to estimate the amount of exhaust emissions from oil tankers in the Port of Singapore, and secondly focuses on emissions from bunkering vessels as a major ship emission segment to draw policy implications and recommendations for maritime and port cities. Big data analytics and the bottom-up method are used to develop the model. To have a comprehensive study, all major types of pollutants and greenhouse gases are analysed, which include carbon monoxide, carbon dioxide, sulphur dioxide, nitrogen oxides, nitrous oxide, methane, non-methane volatile organic compounds, and particulate matters. Findings show that boilers and tankers at berth generate the most emission. In terms of vessel type, despite being the smallest in fleet size, bunkering tankers generate the most emission. Policies to motivate the adoption of cleaner fuels by bunkering vessels are recommended.
Keywords: Exhaust emission; Ship emission; Greenhouse gases; Big data; Automatic Identification System; Port; Oil tanker; Bunkering tanker.
The Covid-19 impacts on air transport - a case study of Hong Kong
by W.M. To, Peter K.C. Lee
Abstract: The Covid-19 pandemic has hit the transport industry across the world since February 2020. Using data from the Hong Kong International Airport, we obtained seasonal autoregressive integrated moving average models for passenger movements and air cargo for the period 2005-2019. The Covid-19 impacts on passenger movements and air cargo were estimated based on differences between the predicted and actual monthly values in 2020. We found that the total number of passenger movements dropped by 86.2% while the total volume of air cargo dropped by 6% in 2020. Additionally, the GHG emission due to the use of aviation kerosene was 10.5 Mt of CO2-eq in 2020; down from 20.8 Mt of CO2-eq in 2019 (i.e. a drop of 49.5%). We also found the significant improvement of visibility at the airport - a rare upside of the Covid-19 pandemic. The Covid-19 pandemic has led to high unemployment rate in the transport and tourism-related sectors and has a negative economic impact on the aviation sector.
Keywords: Covid-19; air transport; passenger movements; air cargo; Hong Kong.
How to manage the debt of shipping companies? A European Analysis.
by Francesco Fasano, Maurizio La Rocca, Neha Neha
Abstract: The present paper intends to empirically investigate for the first time the role of debt, a traditional and controversial topic in corporate finance, on firms performance in the maritime industry. The aim is to discover whether the costs of debt, in terms of risk of distress and default, and agency problems, overcome the relative benefits (tax deductibility, managerial discipline and lower asymmetric information) or vice versa. The results interestingly show a negative effect of debt on corporate performance, evidencing that for maritime firms the costs of debt are higher than the potential benefits. Consequently, maritime firms should carefully consider their debt choices to keep financial flexibility, avoiding the risk of financial distress or even more bankruptcy.
Keywords: capital structure; corporate performance; firm value; maritime industry; maritime firms; shipping companies; debt; financial flexibility; managerial decisions.
A bi-level programming problem for transporting hazardous materials with a bi-modal transportation network
by Abdolsalam Ghaderi, Akbar Ketabi, Anwar Mahmoodi
Abstract: This paper investigates a hazardous materials network design problem through a bi-modal transportation network consisting of road and rail. Due to the different concerns of the government and carriers in transportation of these materials, we propose a bi-level formulation for the considered problem. The government in the upper level seeks to a fair distribution of risk by minimizing the maximum network risk. On the other hand, the carrier in the lower level aims to minimize the transportation cost. The bi-level problem is transformed into a single-level mixed-integer programming problem by replacing the lower-level by Karush-Kuhn-Tucker (KKT) conditions. We also propose a heuristic algorithm, which can find appropriate solutions to the realistic size problem with acceptable computation time. Our analysis of solving two case studies including Iranian multimodal network indicates that the algorithm finds acceptable solutions with reasonable computation time.
Keywords: Hazardous material; Bi-level optimization; bi-modal network design; Heuristic algorithm; risk equilibration;.
Operational efficiency of major cargo seaports in some developing regions: Results from a bootstrap DEA
by Arbia Hlali, Jose Humberto Ablanedo-Rosas, Alex J. Ruiz-Torres
Abstract: This papers aim is to investigate the efficiency of main ports located in five different developing regions. The consideration of multiple developing regions constitutes a unique geographic setting that has been neglected in the research literature. A sample of 40 ports were studied and the ports bias corrected efficiency scores were estimated by means of a bootstrap DEA approach. The study is based on data covering the period 2013-2018. The results showed that most of the ports were not operating at their optimal scale and reported an increasing and decreasing trend in their CRS and VRS efficiency scores respectively. Most of the ports have experienced an increase in their operations without attaining the corresponding increase in their technical capabilities. The ports exhibited a dynamic behavior, which was due to their operational dynamism rather than their infrastructure dynamism. The overall and regional top port performers were identified for benchmarking purposes.
Keywords: data envelopment analysis; bootstrap data envelopment analysis; ports in developing countries; port efficiency in developing countries; developing regions.
Global and Local Supply Chain Sourcing Design: Cost and Delivery Reliability Comparison in Unimodal and Intermodal Transportation
by Rizwan Shoukat, Zhang Xiaoqiang
Abstract: Abstract: The design of the sourcing strategy is key to gain a competitive advantage. In recent times, supplier failure is one of the most crucial risks of supply chains. The purpose of this study is to investigate the cost of local and global sources of the supply chain (SC) with the comparison of delivery reliability. The approach of this study applied data from one of the largest paper & board industries in Asia. We used a bi-objective mixed-integer linear programming model (BOMILP) for the formulation of the problem. Pareto optimal solutions are generated by implementing the multiobjective genetic algorithm (MOGA) to facilitate decision-makers to trade-off between cost and delivery reliability. The results reveal significant savings of 138.51 million-Pkr per year by contracting with local suppliers (Pakistan) as compared to global suppliers from Turkey, China, and Vietnam. However, the delivery reliability of global suppliers is higher than local suppliers. Further, this study can be developed by investigating the performance, wastage, and quality of the supplies provided by local and global suppliers.
Keywords: supply chain; genetic algorithm; mixed-integer linear programming; Pareto solutions; local and global sources.
Talent management functions: a qualitative research on container shipping industry
by Ramazan Ozkan YILDIZ, Sedat BASTUG, Soner ESMER
Abstract: The extremely competitive and goal-driven structure of container shipping has led firms to acknowledge the need for qualified and competent employees to accomplish business objectives. Accordingly, talent management (TM) is a critical factor to achieve these objectives and effectively execute corporate strategy. Therefore, this study primarily aims to contribute to the development of the TM field by examining TM-oriented subjects concerning the primary actors of Turkeys container shipping industry (container shipping lines and ocean freight forwarders). First, a systematic literature review was conducted to identify existing TM practices and obtain data for the identification and conceptualization of talent management functions. Second, a combined method of in-depth interviews and qualitative content analysis was used to investigate the most common talent management practices under TM functions in Turkeys container shipping industry and highlight the differences with the current literature.
Keywords: talent management; resource-based view; systematic literature review; content analysis; container shipping.
Logistics performance index estimating with artificial intelligence
by Bilal Babayigit, Feyza Gürbüz, Berrin Denizhan
Abstract: Global trade integration and international trade of countries are related to the quality and efficiency of their logistic performance. The World Bank has presented the Logistics Performance Index (LPI) to measure and rank countries' international logistics performance. Currently, the LPI is based on six different components, and our concern of the LPI score is that which part is more critical for the logistics performance than the other is unknown. This is apparent as all six components have equal weight and influence when computing the LPI. Accordingly, this paper presents Multi-Gene Genetic Programming (MGGP) technique to establish a predictive modeling equation for the LPI. Each parameter in the current LPI is equally weighed. However, the impact of each LPI component should be further investigated. In this paper, performance criteria are ranked according to their importance with the model, which is developed using MGGP. This ranking approach is the first kind of study that enables countries to prioritize and adjust measures to evaluate their logistics performance better. MGGP is a recent promising approach among machine learning techniques, and it is capable of creating linear or nonlinear prediction models. World Bank datasets consisting of 790 records collected between 20102018 are used to train and test the proposed MGGP approach. Using the model constructed with MGGP help address the logistics performance based on the relative importance of factors are. The simulation results show the superiority of the MGGP approach predicting the LPI score. The prediction equation generated by MGGP can be helpful, especially for policymakers and researchers in logistics, in establishing logistics plans.
Keywords: Logistics; Logistics performance index; Multi-gene genetic programming; Artificial intelligence.
A Principal-agent Model for Hazmat Transportation in China with Risk Perception and Regulatory Policy
by Yuanyuan Li, Yile Ba, C.T. Daniel Ng, Jun Wu, Wenyan Yuan, Jian Li
Abstract: This paper develops one basic and two improved principal-agent models to analyse the hazmat transportation (HT) under a regulatory policy in China. Compared to the basic principal-agent model, the improved models focus on two important elements of HT: harmful risk and government regulatory policy. Under the contract, the principal is the shipper and the agent is the carrier. First, we study the implications of harmful properties of hazmat transported by the agent on the principals contract. Second, we consider the regulatory policy with penalty from the government, which can drive the agent to meet the entry threshold of qualifications. Finally, an optimal contract is presented to promote the safety of HT. A good regulatory policy will reach a win-win solution both for the enterprises and the government. We conduct 12 numerical experiments for parameter analysis. The methodology and results provide a quantitative approach with significant insights for decision makers.
Keywords: hazmat transportation; principal-agent model; risk; government policy; China.
Two-Echelon Joint Delivery Capacitated Vehicle Routing Problem Considering Carbon Emissions of Online Shopping
by Jianhui Du, Xu Wang, Biao Ma
Abstract: Under the environment of a sharing economy and the demand for a low-carbon economy, parcel express companies are compelled to take a fresh view of joint delivery (JD) to enhance horizontal cooperation in the express industry. The purpose of this study is to design an energy-efficient collaborative joint delivery network for different express companies to fulfil the express delivery task. This paper proposes a two-echelon joint delivery capacitated vehicle routing problem (2E-JDCVRP) considering carbon emissions and two distinct fleets of vehicles to optimise the express delivery network in metropolitan areas, while explicitly considering resource sharing between different enterprises. In the 2E-JDCVRP model, the first echelon network requires vehicles at the depots of different express companies to transport the customer demands to satellites that are limited shared. The second echelon network concerns the routing of vehicles shared by the satellites to serve all the customers. The objective is to minimise the total cost of the joint distribution of a number of enterprises. A hybrid heuristic algorithm is designed to compute a novel 2E-JDCVRP model that shares idle resources. Computational experiments were conducted to test and verify the efficiency and effectiveness of the proposed 2E-JDCVRP model.
Keywords: Joint Delivery; Two-echelon Vehicle Routing Problem; Green Logistics; Low-carbon Economy; Urban Logistics Management.
The kinetic energy transformation, influence effect and sustainable development path of logistics industry development: Study in China provincial samples
by CHEN HENG, L.I.U. KE, L.I. DAN, ZHANG YAN, M.A. RONG
Abstract: The article uses Chinese provinces as research sample and selects the LMDI model and panel threshold model to analyse the kinetic energy transformation process of Chinas logistics industry development, which has identified the sustainable development direction of Chinas logistics industry. The study found that there is an obvious process of kinetic energy transformation in the development of Chinas regional logistics industry, a mutual conversion between labour input and capital investment. The specific characteristics express the dual attribute contradiction of the coexistence of intensive and extensive development methods. Although the inhibitory effect of such feature on the development is shrinking, it is still long-term. Therefore, optimising the
Keywords: logistics industry; kinetic energy conversion; capital factor input; labour factor input; sustainable development.
Dry Port Integrated Port Development with Microsimulation Method for Solving Port-City Conflict: A Case of Alsancak Port
by Mehmet Sinan Y?ld?r?m, ümit Gökku?
Abstract: In this research, we have developed a dry port integrated development scenario for a city port with a port-city conflict problem and evaluated the economic benefits of the integration compared with the 'port-only development. Discrete event simulation was used for developing intermodal port simulation models with (IPSM-2) and without dry port (IPSM-1). A port development cost model was developed for economic comparison of the scenarios considering the port storage area requirement and traffic predictions in 20-foot equivalent units (TEU). The model results indicated that for the year of 2019, IPSM-2 decreased the port storage area up to 87% and IPSM-2 ($101/TEU) was 47% more economical compared to the IPSM-1 ($191/TEU) considering the handling rate. The study concludes that dry port integration can yield sustainable and more economic port development and can be used for solving port-city conflict for land usage.
Keywords: intermodal; dry port; port; simulation; city port.
CONTAINER TRANSACTION TYPE PREDICTION: A SEAPORT CASE IN TURKEY
by Elifcan Dursun, Sule Gungor
Abstract: Container reshuffle is one of the main problems that container terminals face for several reasons. One reason for container reshuffle is uncertain transaction type. Yard planner needs the information for the transaction type to allocate inbound containers without causing a reshuffle. The vessel agent submits the transaction type information on the discharge list. However, before the vessels arrival, circumstances
Keywords: container reshuffle; container transaction type; CRISP-DM; multiple logistics regression; seaport; terminal operating system.
Evaluating the Guanxi and Supply Chain Collaborative Transportation Management in Manufacturing Industries
by Po-Lin Lai, Jui-Chung Kao, Ching-Chiao Yang, Xiaonan Zhu
Abstract: Manufacturing firms can facilitate their shipping and logistics operations via cooperation by adopting collaborative supply chain transportation. Moreover, in Chinese culture, guanxi is considered crucial for fostering close partnerships. This study empirically examines the relationships between supply chain information integration (SCII), collaborative transportation management (CTM) through interaction and collaboration between trading partners and carriers (supply chain CTM), logistics performance, and guanxi in manufacturing industries. Totally, 152 usable responses from the manufacturing industry were collected using a questionnaire. A structural equation model (SEM) was used to evaluate the hypotheses. The results indicate that SCII is significantly positively related to supply chain CTM and logistics performance. While supply chain CTM is significantly positively related to logistics performance for manufacturing firms, guanxi has a significant moderating effect between SCII and supply chain CTM. The moderating effect of guanxi on manufacturing firms supply chain CTM and logistics performance was not found in this study.
Keywords: supply chain information integration; SCII; collaborative transportation management; CTM; guanxi; moderating effect; structural equation modelling; SEM.
The Role of Sea Ports in the Energy Supplies Markets: The Case of Wind Energy in Texas
by Amir Gharehgozli, Cassia Galvao, Joan Mileski, Ryan Swaney
Abstract: The seaport and the energy industry historically have shared strategic assets. Today, the use of renewable sources such as wind, solar, and hydropower is increasing significantly. The U.S. recognizes that energy sustainability requires the development of renewable sources. Texas ranks as the #1 State in the U.S. for wind energy generation. Ports are indispensable in the transportation of the wind energy generation components, as they are large and imported from outside the U.S. Due to the logistics specialization required to move these components, developing port terminals that can streamline and increase the throughput of wind energy paraphernalia are critical to the growth of wind energy. Thus, this research examines the logistic challenges involved in global transportation wind energy material/equipment as the trade for this equipment increases from abroad to the U.S. Furthermore, we develop a comprehensive cost optimization model which includes the cost of production and transportation of wind energy components through ports from suppliers to installation sites. We evaluate the model through a case study considering the energy production and generation matrix using the data from ports in Texas. Further, Texas is the only state in the country operating with an independent electrical grid.
Keywords: Ports; wind energy; renewable energies; global logistics; cost optimization.
A ship performance and genetic algorithm based decision support system for vessel speed optimization of ocean route
by Yanfei Zhang, Jipan Qiao
Abstract: The speed optimization of operating ships contributes to reducing fuel costs and the emission of Green House Gas (GHG). Therefore, it is a managerial problem to determine an optimal speed that helps minimize fuel consumption while considering various navigation restrictions that conform to navigation habits. Though most literary works study empirical formulas or historical navigation data to estimate fuel consumption under different weather conditions, these methods are subject to various limitations due to the unique performance of different vessels. Based on the still water model test data, this paper proposes a performance-based decision support system (DSS) for speed optimization, which considers the impact of weather conditions and the specific fuel oil consumption (SFOC) rate value of the main engine on fuel consumption. The speed optimization DSS applies a genetic algorithm (GA) to minimize fuel consumption and satisfy practical purposes. The ship-shore data exchange-based DSS can promptly provide an operating vessel with speed optimization suggestions. The effectiveness of the speed optimization DSS is validated through the implications on the operational ship, and its accuracy is tested by comparing the collected data on two target voyages.
Keywords: Speed optimization; Genetic algorithm; Sustainable maritime logistics; Ship performance; Shipping management.
A STOCHASTIC FACILITY LOCATION MODEL FOR INTERMODAL FREIGHT HUBS
by Karina Lang, Victor Cantillo, Héctor A. López-Ospina, Iván Serrano
Abstract: This article proposes a stochastic model for assessing the location of facilities for logistics terminals, modelled as freight transfer hubs to optimise the physical distribution of foreign trade products from the production centres to seaports and vice versa. The objective function minimises social costs, including private logistics costs (fares, travel times, transhipment) and external costs. In addition, the proposed approach uses a multinomial logit model as a demand function to incorporate consumer stochastic behaviour when choosing a route and location. The model was applied to the multimodal Colombian freight network. Results show that the social costs of logistics networks are reduced by including terminals that encourage intermodality. Network structure and economies of scale affect terminals selection.
Keywords: facility location; logistics terminals; intermodality; intermodal hub location problem.
Dynamic location of modular mobile facilities in a hybrid network of hyperconnected and dedicated localizations: Application in the chemical industry
by Charifa FERGANI, El Bouzekri Adiba, Suzanne Marcotte, Hajjaji Abdelowahed
Abstract: In this paper, we propose the use of a hybrid network of facilities. This hybrid network is composed of dedicated production sites belonging to the company, and of shared and openly exploited sites enabled by the Physical Internet. These enable companies to dynamically increase their capacity and improve supply chain flexibility. This work presents a general mixed integer linear programming formulation for tactical planning of the optimal use of the hybrid network of production locations over a multi-period horizon. The established model also formalises three specific problems: dynamic facility location problem, dynamic modular mobile facility location problem, and dynamic hyperconnected facility location problem. An application in the chemical industry leads our computer study to identify the economic value of the proposed hybrid network comparing to the other predefined problems. The results show the gain of using the proposed system. Computer experiments also show the increased complexity of solving the established model, especially for large-scale problems.
Keywords: facility location; hyperconnected production; hybrid network; open fab.
Asymmetric Price Adjustments in the Shanghai Containerized Freight Index (SCFI): Evidence from a Non-Linear Autoregressive Distributed Lag (NARDL) Model
by Byungchul Yu, Sung-Ho Shin, Young-Jin Ro
Abstract: In this study, we empirically investigate price adjustments in the Shanghai Containerized Freight Index (SCFI) using the nonlinear autoregressive distributed lag (NARDL) model. Using monthly data from January 2014 to February 2020, this study constructed a price equation for the SCFI with bunker price and container fleet as a supply shock and container volume as a demand shock and estimated the model by applying the NARDL model. Our empirical results can be summarised as follows: first, there is strong evidence of long-run asymmetry of the freight rate to supply and demand shocks. Second, the SCFI responds more sensitively to a positive supply shock of bunker price and a negative shock of container fleet than to other cases. Lastly, supply shock of container fleet is the most crucial factor in determining the freight price in the long run. Our results suggest that the asymmetric adjustment of maritime freight should be considered when analysing the container shipping market.
Keywords: Shanghai Containerized Freight Index; SCFI; nonlinear autoregressive distributed lag model; NARDL; container shipping; bunker price; container throughput; container fleet.
Empirical research on performance effects of supply chain resilience: Systematic literature review, citation network analysis and future research directions
by Chunsheng Li, Christina W.Y. Wong, Chee Yew Wong, Sakun Boon-itt, Xin Miao
Abstract: Although firms are aware of the importance of implementing various strategies of supply chain resilience (SCRES) to mitigate and manage supply chain risks and disruptions, there are limited insights into the interrelationships among the strategies in affecting business performance. This study objectively reviews 135 articles related to the performance effects of SCRES through conducting a systematic literature review (SLR) and citation network analysis (CNA). Based on the results of the CNA, we identify citation network clusters of the articles with three main strategies of SCRES, namely, supply chain (SC) agility, SC risk management, and SC reengineering. A structured framework is developed to map the performance impact of SCRES strategies and the interrelationships between the two. Observing the common grounds and mutual citations among clusters, we propose research directions of the performance impact of SCRES based on the complex adaptive system (CAS) theory for advancing research on SCRES.
Keywords: supply chain resilience; SCRES; firm performance; systematic literature review; SLR; citation network analysis; CNA; resilient supply chain; complex adaptive system; CAS.