International Journal of Shipping and Transport Logistics (45 papers in press)
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 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.
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, Fuli Zhou
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.
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.
Resilient supply chain emergency management strategy of cruise ship supply based on node fails under disruptions
by Liling Huang, Yong Tan, Xu Guan
Abstract: Reliable supply chain network is crucial for sustainable cruise supply chains. To cope with increasing disruptions caused by human errors and natural disasters, or epidemiological risks, such as norovirus, storm, iceberg, and so on, resilient supply chain network should be considered as an integrated perspective into the cruise ship supply system planning process. This paper studies the emergency replacement strategy after the interruption of nodes from an elastic perspective. A mixed integer programming model of emergency scheduling strategy is established to meet the needs of cruise ships and maintain the normal operation of the cruise supply chain. Then, CPLEX software is used to solve the model with the lowest total cost under the elastic constraints. Finally, a numerical simulation is given to show the proposed method is effective and practical. Quantitative analysis can assist cruise managers in decision making regarding disrupt supply chain network and making a trade-off between desired resilience and constraints.
Keywords: cruise ship supply; resilient supply chain; emergency management; integer liner programming.
A novel algorithm for evaluating the configurations of Omni channel distribution network considering transparency and consensus formation
by Ardavan Babaei, Majid Khedmati, Mohammad Reza Akbari Jokar
Abstract: In this paper, an algorithm has been developed to evaluate the performance of Omni channel distribution network configurations based on data envelopment analysis (DEA) models and consensus formation. At first, bi-objective input- and output-oriented simultaneous DEA models are developed to evaluate the configurations with respect to two common criteria, i.e., the service and cost, and the transparency criterion which is defined based on the blockchain technology. Then, a consensus is formed on the evaluation results, based on a risk-based optimisation model. The proposed models are solved by fuzzy goal programming. In addition, the application of the proposed models is demonstrated through a case study in the context of the Indian retail industry. The computational results extracted from the optimisation models developed in our paper showed that the transparency criterion is very effective in the configurations evaluations and scores.
Keywords: omni-channel; consensus; performance evaluation; blockchain technology.
Optimizing Uncertain Bottleneck-Cost Integer Transportation Problems with Beta Distributed Shipping Times
by A. Akilbasha, G. Natarajan
Abstract: A novel method namely; the reductive most-least method is developed to optimise the bottleneck integer transportation problem which is different from the existing methods. It is a fairly simple approach method too. An uncertain BIT problem in which shipping times follow beta distribution is studied. The time for completion of the expected transportation for the uncertain BIT problem is determined, and statistical analysis on the transportation completion time of the considering problem is carried out. Further, an uncertain bottleneck-cost integer transportation problem with beta distributed shipping times is presented, and a new method namely, the cost-reductive most-least method is proposed to determine efficient solutions for the expected uncertain BCIT problem having beta distributed shipping times and the transportation completion time of the uncertain BCIT problem with statistical analysis.
Keywords: Bottleneck transportation problem; Reductive most least method; Minimum transportation completion time; Beta distributed shipping times; Cost-reductive most least method; Statistical analysis.
United Arab Emirates-Pakistan: the role of rail in green and economical intermodal and multimodal
by Rizwan Shoukat, Xiaoqiang Zhang, Ayesha Saeed
Abstract: Multimodal freight transport has several advantages over other modes of transport and contributes to cost savings and reduced negative environmental impacts. We examined the multi-objective distribution network problem for the multimodal (road, rail, and sea) and intermodal (road and sea) freight transport sector of Pakistan and the United Arab Emirates. The mixed-integer programming (MIP) model is used to formulate the problem of cost minimisation and CO2 emissions. Pakistan contributes significantly to regional air pollution as a result of its reliance on road transportation. We solved the MIP problem using the multi-objective bat algorithm (MOBA) and compared the MOBA with multi-objective particle swarm optimisation (MOPSO), and multi-objective non-dominated sorting genetic algorithm-II (MO-NSGA-II) to analyse the performance of each algorithm. Pareto fronts assist decision makers in balancing cost and CO2 emissions in our study. The results confirm that considerable differences exist in terms of cost (25%) and CO2 emissions (66%) reductions.
Keywords: multimodal freight transport; MMFT; CO2 emission; regional air pollution; Pareto fronts; road-rail-sea.
Switching Costs and Geographic Price Discrimination in the Ship Management Industry
by Antonis Michis
Abstract: The ship management industry operates on a global scale and is often associated with business practices such as repeated short-term contracts, long-term customer relationships, and international variation in pricing agreements. Using a unique dataset and a semi-parametric hedonic model specification, we investigated the determinants of ship management fees with particular emphasis on the identification of price mark-ups associated with switching costs. Our results suggest: 1) the existence of a
Keywords: switching costs; geographic price discrimination; ship management; fixed effects.
Crude oil prices, container freight rates and dry bulk freight rates: Are there short-term and long-term effects on seaborne exports from Taiwan
by Hsing-Chung Chu
Abstract: This paper used the GARCH model and the VAR model to examine the volatility effect and lagged effect of three explanatory variables (crude oil prices and two indicators of freight rates, namely, the China Containerised Freight Index and the Baltic Dry Index) on seaborne exports from Taiwan. Monthly time series data were collected from January 2007 to March 2021. The results indicated no long-term relationship between seaborne exports and the three variables or their volatility. However, in the short term, oil price volatility in the previous month had a negative effect on the current seaborne exports; nevertheless, oil prices for two consecutive periods 1 month ahead and 2 months ahead had a positive effect on seaborne exports. The evidence also indicated that seaborne exports showed a stronger causal effect on the CCFI than did the CCFI on exports. Another important finding was the positive effect of the BDI on seaborne exports being 1 month ahead of the CCFI.
Keywords: ocean freight; export; crude oil prices; freight rates; container; dry bulk; Taiwan.
Service quality, relationship quality, e-service quality, and customer loyalty in the container shipping service context: A moderated mediation model
by Chun-Hsiung Liao, Chin-Shan Lu, Ying-Hsin Yu
Abstract: This study examines the determinants of customer loyalty in container shipping from a freight forwarding companys perspective. We hypothesise that container carriers service quality, relationship quality, and e-services will have a positive influence on customer loyalty of international freight forwarders. Data are collected from 233 freight forwarding companies in Taiwan. We found that service quality, relationship quality and e-services positively affect customer loyalty, whereas relationship quality has a mediating effect on the relationship between service quality and customer loyalty. Specifically, a moderated mediation model is tested and indicates that the indirect effect of service quality on customer loyalty through relationship quality is significant and stronger when freight forwarders experienced high levels of e-services. Theoretical and managerial implications from the research findings are discussed along with limitations and future research.
Keywords: container shipping; service quality; relationship quality; customer loyalty; e-service; electronic service; freight forwarder.
Selection of safety measures in container ports
by Hani Alyami, Zaili Yang, Ramin Riahi, Stephen Bonsall, Jin Wang, Chengpeng Wan, Zhuohua Qu
Abstract: This paper aims to employ a fuzzy decision-making approach to evaluate risk control options and aid the selection of operational safety strategies in container terminals. The selection of appropriate safety strategies to optimize the Operational Safety Performance (OSP) in container terminals has been a key strategic consideration for many maritime stakeholders including terminal managers, ship-owners, surveyors and safety engineers. The nature of these decisions is complex Multiple Criteria Decision-Making (MCDM) under uncertainty, having ambiguous and incomplete data contained in different quantitative and qualitative forms. To deal with the uncertainty, a hybrid of MCDM models based on the fuzzy set theory is developed in this paper. Analytical Hierarchy Process (AHP) is first used to obtain the weights of all the criteria while the Fuzzy Techniques for Order Preference by Similarity to an Ideal Solution (FTOPSIS) is then introduced to assess the ratings of operational safety strategies to optimize OSP. Finally, a real case study is conducted to demonstrate the process of the applied method in practice. Consequently, it proves that the proposed model is capable of modelling the selection of rational OSP for container terminals through taking into account both safety and cost factors. Furthermore, from a practical insight perspective, the results from the real case analysis indicate that automation and operator training are among the most effective measures for improving container port safety.
Keywords: Port risk; maritime safety; operational safety performance; MCDM; TOPSIS.
Construction of Korean Shipping Industry Risk Sentiment Index Using News Articles
by Sunghwa Park, Hyunsok Kim, Janghan Kwon, Taeil Kim
Abstract: We develop the Shipping Industry Risk Sentiment Index (SRSI) to measure risk sentiment in Koreas shipping industry. The index is based on the frequency of news articles in Korean newspapers that contain terms related to the six Cs of credit suggested by Grammenos (2013). The dynamics of the index show that it spikes near tight periods of elevated risk sentiment including global financial crisis and the court receivership of Koreas major shipping companies. We investigate predictive power of the index by using an autoregressive distributed lag (ARDL) model and impulse response functions from local projections. Empirical evidence shows that SRSI reflects risk sentiment in shipping industry and contains useful information to understand market situations.
Keywords: SRSI; news big data analysis; shipping market sentiment; local projections; ARDL.
Optimization of berth and quay crane joint scheduling considering efficiency and energy consumption
by Dusu Wen, Xumao Li, Xiaoyun Ren, Mingjun Ji, Qiuxi Long
Abstract: In order to reduce the energy consumption of ships and quay crane in the port area, the joint scheduling problem of berth and quay crane is studied on the premise that ship arrival information and terminal status information are known. Considering the needs of the shipping company and the interests of the port owner, a multi-objective mixed integer programming model is established to maximise the operational efficiency of ships in the port and minimise the total cost of the terminal, and a local search strategy is designed to solve the quay crane scheduling problem between adjacent ships. At the same time, combining topological structure and iterative coefficient mechanism, an improved particle swarm optimisation algorithm is designed to solve the model, and the Pareto non-inferior solution set is obtained. Finally, the applicability and effectiveness of the proposed model and algorithm are verified by comparison of algorithms with different scales and analysis of multi-scenario results.
Keywords: container terminal; joint scheduling; multi-objective optimisation; particle swarm algorithm; PSO; energy consumption.
Shipping to a landlocked country: maritime port choice decision from a consignees perspective
by Andrew Thomas Mlepo, Jianfeng Zheng
Abstract: For consignees in resource-constrained landlocked countries, selecting the ideal gateway port for their shipments is an important decision in getting their goods delivered efficiently. Using an example of Malawi, the gateway port selection decision-making process is studied in this paper. Five decision-making criteria are identified and analysed using the analytical hierarchy process (AHP). Besides the initial criteria, other factors supporting the consignees preference for Dare salaam port are also identified. This study can contribute to stakeholders decision-making in improving port efficiency, infrastructure development planning, streamlining policies, and service delivery, among others to effectively improve the attractiveness of their ports against existing competition.
Keywords: port selection; analytical hierarchy process; AHP; transportation challenges; group decision-making; landlocked transportation.
Social Welfare Optimization in a Hotelling Model with Two Double-sided Queues
by Ying Shi, Zhaotong Lian, Xin Li, Long Qingqi
Abstract: We study the problem of the optimal number of taxis in a Hotelling queue model, with two taxi stations: one at each end of a linear market. Each station is modelled as a double-sided queue and an equilibrium location divides taxi drivers into two parts to join either station. We find that customer utility increases with the number of customers, but decreases with the buffers of stations, the unit transportation cost and unit waiting cost of taxi drivers. The profit of each taxi driver increases with the number of customers but decreases with the unit transportation cost. Interestingly, the profit of each taxi driver increases and then decreases with the unit waiting cost and the buffers of the stations.
Keywords: taxi; passenger; double-sided queue; welfare-maximisation; Hotelling queue model.
Critical success factors of strategic alliance in the shipping industry
by Hui Ting Lu, Kum Fai Yuen, Kim Hock Tan, Guanqiu Qi
Abstract: Attributing to multiple environmental, organisational and cultural factors, shipping alliances (SAs) are complex and challenging to manage. This study aims to identify and categorise the critical success factors (CSFs) in SAs using a theory-driven approach. Moreover, it looks to examine their effects on two vital outcomes in SAs, including opportunistic behaviour (OB) and constructive coordination (CC). The CSFs were categorised into phases: 1) alliance rationale and conditions; 2) partner search and selection; 3) partnership design; 4) partnership implementation; 5) partnership outcome evaluation. A survey questionnaire was then drafted and administered to 180 executives from all shipping lines involved in major SAs (i.e., 2M, Ocean Alliance and The Alliance). Thereafter, the data were analysed using exploratory factor analysis and structural equation modelling. The findings validated the categorisation of the 20 CSFs. Furthermore, it was found that the CSFs have direct and indirect effects on CC via OB.
Keywords: shipping alliances; success factors; theoretical perspectives; structural equation model.
Fuzzy Goal Programming Approach for Solving Stochastic Transportation Problem with Additional Budgetary Constraints
by Akilbasha A, Hamiden Abd El- Wahed Khalifa, Juman Zeinul Abdeen, Ibrahim Mekawy
Abstract: This paper attempts to study a transportation problem with costs represented by octagonal fuzzy numbers (Oct-FN) and demands randomly distributed. Here, we use the normal distribution. A fuzzy goal programming (FGP) approach is applied for obtaining the optimal compromise solution. The advantage of FGP for the decision maker is easy to explain and implement in real-life transportation. The stability set of the first kind corresponding to the optimal solution is determined. A numerical example is given to highlight the solution approach. Furthermore, the proposed method is extended to fuzzy transportation problems (FTP). This will help the forthcoming researchers to enlarge this problem into the other problems with parameters like fuzzy interval integers, rough interval integers, and so on.
Keywords: stochastic transportation problem; octagonal fuzzy numbers; Oct-FN; normal distribution; ranking method; fuzzy goal programming; FGP.
An efficient heuristic algorithm for solving a multi-vessel quay crane scheduling problem in container terminals
by Yi Ding, Xiazhong Chen, Kaimin Chen
Abstract: As an important node of a multimodal container transport hub, the container terminal occupies a critical position in the whole process of container transportation and the global supply chain network. With the increasing size of container vessels, improving the handling efficiency of multiple vessels at berth in a given port becomes a complex problem to be solved. We formulate a mixed-integer linear programming model to minimise the vessel services time, the total completion and travel times of quay cranes (QCs) among multiple vessels. To solve the proposed model, we develop a particle swarm optimisation (PSO) algorithm incorporated with a tailored initial-solution generation algorithm. Furthermore, a couple of acceleration strategies are designed to improve the solution quality and shorten computation time. The results of numerical experiments on real-life instances validate the proposed model and the efficiency of the proposed algorithm.
Keywords: container terminal; quay crane scheduling; mixed integer linear programming; particle swarm optimisation; PSO.