Developing a Model of Container Management on a Liner Shipping Network with Inland Modal Split Consideration

Abstract

This paper focuses on the problem of container management on a liner shipping network with a short-term leasing consideration. The model involves decisions concerning an inland modal split of containers based on the global picture of container availability in the network; determining the time period and port in which the shortage of containers necessitates a higher utilization of truck mode in hinterland, and when and where the higher usage of a slower transport mode can be encouraged. The problem is formulated as an integer program that seeks to maximize total profit obtained from container management. A computational study verifies that consideration of the global picture of container availability while making decisions on inland modal split can result in a higher total profit for a liner shipping company. It also demonstrates how the short-term leasing option impacts the utilization of owned containers on the network.