Liner shipping hub network design in a competitive environment

Competitiveness in a Multipolar Port System: Striving for Regional Gateway Status in Northeast Asia

“…As a consequence of deployment of mega container ships, regional gateway port status comprises a significant component of the local economy and economic cooperation with its surrounding areas (Imai et al, 2013;Gelareh et al, 2010;Low et al, 2009), which integrates the overall production and distribution systems (Yeo et al, 2011;Hall, 2007). The major ports in NEA, therefore, aspire to achieve regional gateway status, to broaden their sphere of influence from that of a sea-shore interface to a comprehensive port which boosts global or major regional trade and the local economy (Wang and Cheng, 2010;Low et al, 2009).…”

The time constrained multi-commodity network flow problem and its application to liner shipping network design

“…Hence it is important to meet these constraints when constructing and evaluating liner shipping networks. The cost and transit time are often identified as the most important factors, Brouer et al, 2014;Gelareh et al, 2010;Notteboom and Vernimmen, 2009;Notteboom, 2006), however, most previous work within LSND neglects transit time and mainly considers cost. Designing networks with focus only on cost has the apparently attractive benefit that reducing cost goes hand in hand with reducing CO 2 emissions as fuel is the largest cost component.…”

“…Agarwal and Ergun (2008) present a time-space graph to introduce a rough schedule of weekdays in the network design process, but they do not introduce travel time restrictions and do not account for the cost of transshipping goods. Gelareh et al (2010) study a hub-and-spoke network design problem for two liner shipping companies in a competitive environment. The market share is determined by transit time and transportation cost.…”

Hub Location Problems

“…The proportion of flow that is captured on a particular path is modeled with a gravity-like attraction function that does not only depend on the flow cost but also on the travel time. Gelareh et al (2010) present a competitive model arising in liner shipping networks, where a new liner service provider wants to design a hub network to maximize its market share, using an stepwise attraction function which depends on the service time and flow cost. This model allows O/D paths to contain more than one hub arc or to have direct connections between origins and destinations.…”