Implementing the street-turn strategy by an optimization model

Abstract

The street-turn option represents a major strategy for the profitability of shipping companies supplying container-based transportation. This option consists in the distribution of trucks delivering loaded containers to import customers, the subsequent allocation of empty containers to export customers and the final dispatch of loaded containers to departure ports. However, the determination of truck routes is a time-consuming activity for shipping companies, because available information can suddenly change while they are making their decisions. In this paper we aim to propose a decision support tool to quickly determine truck routes and implement the street-turn strategy. This tool is based on an optimization model determining the allocation of empty containers between customers and defining truck routes in a post-optimization phase. We compare routes resulting from the proposed model to the decisions of a real shipping company. Early results indicate that this approach represents a promising support for shipping companies in dealing with street-turns. It can significantly reduce distances travelled by trucks and times requested to determine routes.

An adaptive guidance meta-heuristic for the vehicle routing problem with splits and clustered backhauls

“…This requirement results in a simplification for the carrier on how to plan street turns, that is, the use of containers emptied at importers to collect cargoes from the exporters (Jula et al, 2006;Deidda et al, 2008).…”

Optimization of empty container movements in intermodal transport

“…A set partitioning formulation is used and an exact solution method is proposed. Deidda et al (2008) propose a static, deterministic optimization model for implementing the street turn approach discussed in Section 2.2.2. They simultaneously address the allocation of empty containers between shippers, consignees and a port and the design of vehicle routes for transporting empty containers.…”

“…Whereas for the import and subsequent export (situation a), two empty movements to and from terminals at ports are needed, for the street turn approach (situation b) only a single off-port empty movement is required. Street turns thus enable transportation companies to maximize their profits generated by trucking transportation requests (Deidda et al, 2008).…”

Integrated planning of loaded and empty container movements

“…A set partitioning formulation is used and an exact solution method is proposed. Deidda et al (2008) propose a static, deterministic optimization model simultaneously addressing the allocation of empty containers between shippers, consignees and a port and the design of vehicle routes for empty containers. Loaded container transports are not considered.…”