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This thesis investigates the reasons why nowadays empty container repositioning represents a crucial issue for the shipping industry. Moreover, taking into account information collected through surveys and meetings with industrial experts, we provide a broad overview of current logistic practices for the management of empty containers in the contex...
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Citations
... On the contrary, long-and short-term leases aim to invest their equipment, without any management services provided to the lessee. However, the opportunity for shipping lines to save costs by leasing containers remains linked to the terms and conditions of leasing contracts [12]. ...
... On the contrary, long-and short-term leases aim to invest their equipment, without any management services provided to the lessee. However, the opportunity for shipping lines to save costs by leasing containers remains linked to the terms and conditions of leasing contracts [12]. • Container substitution is the second internal approach to deal with container fleet imbalance [13]. ...
... In stage one, the authors focused on the empty container allocation problem by introducing a centralised optimization solution for all related liner carriers. Moreover, they determined the weekly number of empty containers delivered from the surplus port i of the liner carrier k ∈ L to the deficit port j of the liner carrier m ∈ L. The mathematical programming model denoted by P can be summarised as follows: (12) Subject to: ...
Managing empty-container movements is one of the most challenging logistics problems in the shipping field. With the growth of global trade imbalance, the repositioning process has become necessary, immediately after emptying a container. The main contribution of this research paper is to enrich the most frequently used methods, models, and applications in the literature, for relaxing the empty-container-repositioning problem. The article presents practices that vary between organizational policies, technical solutions, and modelling applications. A review of optimization models has been used for comparisons, based on specified criteria, such as the time frame, inputs, outputs, scale of the project, and value. Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) was applied through the online database Web of Science (WOS). It gives a comprehensive description of all the relevant published documents. On the basis of conducting a brief systematic review, future research opportunities have been determined, considering the emerging phenomena in container transport chains.
... Furthermore, some geographic regions such as America and Northern Europe are generally covered by importing countries whereas some others such as Far East countries are exporting much more goods than their total imported volume. Therefore, the port efficiency of the former countries is negatively affected by the accumulation of the empty containers [2,4,8,12,27,29,31,32,33]. The authorities estimate that these types of ports are not likely to continue their service after introducing a fully equipped and well founded new container ports to the industry because, speed and efficiency are the major two factors that are sought by the customers of the container ports. ...
In this study, the empty container problem is evaluated by quantification of factors related to empty
container accumulation as well as alternative ways that can be followed for solutions. The study is
mainly constructed as two parts; the first part is on identifying involving factors by using DEMATEL
and the second part deals with alternative solutions by applying TOPSIS method. The main causes
affecting empty containers were found as trading imbalance, irregular distribution, delivery time,
unbalanced freight charges and inadequate port management. Finally, based on applied Multi Criteria
Decision Making approach, this study suggests that empty container problem can be solved by sharing
infrastructures and equipment among logistic companies, allocating storage areas for empty containers
outside the ports and following robust fast custom regulations.
... H Jula, Chassiakos, and Ioannou [12] studied both dynamic and static approach and developed for both, deterministic models. Di Francescoa, Mancaa, Olivoa, and Zuddasa [13] developed a dynamic deterministic model at a regional level investigating the use or not of container substitution and later Di Francesco [14] continued this work by introducing the short term leasing containers. A dynamic deterministic single-commodity mode was developed by B. Wang and Wang [15], who used integer programming in order to minimize the cost of empty containers distribution. ...
The central objective of this paper is to review the status of dynamic systems and dynamic models utilized in OCI operations research. Moreover, we complement the status analysis with our view on the prospects of dynamical systems in the OCI. The literature review unveiled a few, yet significant, publications with the majority being port-related. The perspectives of dynamical systems appear relatively rosy and, hopefully, this paper will stimulate further research in this area.
... Due to global trade imbalance, shipping companies tend to accumulate empty containers in import-dominant regions where they are not needed, whereas export-dominants face a shortage of this equipment. (Di Francesco, 2007). ...
... Due to global trade imbalance, shipping companies tend to accumulate empty containers in import-dominant regions where they are not needed, whereas export-dominants face a shortage of this equipment. (Di Francesco, 2007). ...
Container shipping celebrates its 60th anniversary in 2016, as an innovation that had a tremendous impact on the global supply chain. This paper focuses on the impact of container inventory imbalance that mounts a substantial pressure on global supply chains. The primary objective of this paper is to explore best market practices and ascertain as to what factors influence these strategies. It also evaluates the impact of container inventory imbalance to the global supply chain. The study refers to interviews with industry experts and questionnaire responses from shipping lines operated in Sri Lanka in addition to the desk research to explain the impact of the container inventory problem in the global scale. If carriers provide the right quantity of containers demanded by exporters at the right location at the right time, the optimum supply chain performance could be guaranteed. The consequences of container fleet imbalances are ultimately borne by exporters, importers, consumers, traders and even— inadvertently—other players in the cargo supply chain of international trade. Therefore, carriers need an effective solution to the global container inventory imbalance problem.
... Due to global trade imbalance, shipping companies tend to accumulate empty containers in import-dominant regions where they are not needed, whereas export-dominants face a shortage of this equipment. (Di Francesco, 2007). ...
Container shipping celebrates its 60th anniversary in 2016, as an innovation that had a tremendous impact on the global supply chain. This paper focuses on the impact of container inventory imbalance that mounts a substantial pressure on global supply chains. The primary objective of this paper is to explore best market practices and ascertain as to what factors influence these strategies. It also evaluates the impact of container inventory imbalance to the global supply chain. The study refers to interviews with industry experts and questionnaire responses from shipping lines operated in Sri Lanka in addition to the desk research to explain the impact of the container inventory problem in the global scale. If carriers provide the right quantity of containers demanded by exporters at the right location at the right time, the optimum supply chain performance could be guaranteed. The consequences of container fleet imbalances are ultimately borne by exporters, importers, consumers, traders and even—inadvertently—other players in the cargo supply chain of international trade. Therefore, carriers need an effective solution to the global container inventory imbalance problem.
Keywords: Container Inventory Imbalance, Freight, Forecasting, Flexibility, Strategy
... New methods for optimization have rarely been reported. New optimization models for empty container management [3], and a procedure developed to determine the optimum reaction rate constants in generalized Arrhenius form [4] were reported. Consequently, there is not a general way for optimization. ...
Optimization based on appropriate parameters can be applied to improve a process. Mazut degradation as a critical issue in environment requires optimization to be efficiently done. To provide biodegradation conditions, experiments were designed on the least interactions among levels of parameters consisting of pH, Tween 80, glucose, phosphorous source, nitrogen source, and time. Kinetic constants and biomass were calculated based on 16 assays, designed using Taguchi method, which constructed various mazut biodegradation conditions. Kinetics of mazut degradation by newly isolated bacteria Enterobacter cloacae closely followed second order kinetic model. Results of the 16 experiments showed that biomass was in the range of 0.019 OD600 to 2.75 OD600, and biokinetic constant was in the range of 0.2 × 10(-5) L/ (mg day) to 10(-4) L/ (mg day). Optimal level for each parameter was obtained through data analysis. For optimal biomass equal to 2.75 OD600, optimal pH, Tween80, glucose, phosphorous source, and time were 8.3, 4 g/L, 4 g/L, 9 g/L, and 10 days, respectively. For biokinetic constant equal to 1.2 × 10(-4) L/ (mg day), optimal pH, Tween80, glucose, phosphorous source, and nitrogen source were 8.3, 1 g/L, 4 g/L, 1 g/L, and 9 g/L, respectively. The optimum levels for biomass and biokinetic constant were the same except the levels of the Tween 80, and phosphorous source. Consequently, mazut may be more degraded with adjusting the conditions on the optimum condition.
... Similar limitations are observed for the deterministic dynamic model for the maritime reposition of empty containers proposed by Jiele (1999) who used linear programming technique. Another model proposed by Francesco(2007) using Integer Programming technique considers the number flow of empty containers of each type moved from the j-th node at time t to reach the k-th node at time-period t+τ whereτis the transit time between j-th and k-th nodes along with related unitary cost. Available storage space in the time interval t and t+1 was expressed in terms of container numbers of the largest type and used a suitably defined substitution factors. ...
... Francesco (2007), the objective function to be minimized can be written asZ= ∑ ∑ ∑ ∑ ∑ (1.1) ...
Definitional Issues
Supply chain management as a discipline has always existed since the birth of human civilization but the
spurt of competition across domains over last few decades made it perhaps the strongest contender
clamoring maximum attention from all stakeholders in business. Since our conference addresses two keys
issues of business viz. innovations and supply chain strategies in business, I found it quite interesting to
review few literatures to understand the subject better. Supply chain management has been defined as
“the systematic, strategic coordination of the traditional business functions and the tactics across these
business functions within a particular company and across businesses within the supply chain, for the
purposes of improving the long-term performance of the individual companies and the supply chain as a
whole (Mentzer et al., 2001)” Alternatively, another customer oriented definition says “Supply chain
strategies require a total systems view of the linkages in the chain that work together efficiently to create
customer satisfaction at the end point of delivery to the consumer. As a consequence costs must be
lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value.
Throughput efficiency must be increased, bottlenecks removed and performance measurement must focus
on total systems efficiency and equitable reward distribution to those in the supply chain adding value.
The supply chain system must be responsive to customer requirements.” Going by these two definitions,
it is quite evident that ample scope lies between each function of supply chain where innovations could
be done resulting into a sleek and refined agile supply chain.
Few Innovations
While going through one article I found that supply chain management credits Mr. Frederick Taylor, the
father of scientific management as one of the innovators in supply chain management for his contribution
of scientific approach to manufacturing in the late 1800s. Henry Ford’s approach to develop an assembly
line to production of its classic Model – T version in 1913 was another great innovation in the history of
supply chain. That was the time of industrial revolution and entire gamut of business community was
reeling under the impression of growth by manufacturing. It took almost another century to identify
another function of supply chain as potential innovation in the discipline when Roy Mayeske of 3M came
up with the idea of centralized transportation planning resulting in network synergy in the year 1982.
There was a path breaking innovation during 1970s when George Laurer invented Universal Product
Code (UPC), a standard for identifying SKUs using bar code system in the year 1974.
However, two important innovations worth mentioning here as presently significant volume of
discussion in corporate and academic fraternity refer to them as Economic Order Quantity (EOQ) and
Toyota Production System (TPS).
Supply chain strategies as we understand runs as an artery to an organization. Transportation poses a
big challenge before organization as it is one of the grey areas where organization could cut its additional
cost flab. Freight containerization, vehicle allocation and shipment tracking and effective load calculation
are some of the challenges faced by transporters today. Now, we have a wonderful technology provided
by SAP called Trader & Schedulers Workbench (TSW) where as soon as an order is booked even the last
mile activities are planned like expected delivery date to container assignment to vessel assignment
(Nayak & Srivastava, 2010).
The Opportunity
In the spectrum of supply chain performance organizations have always struggled to find a sustainable
solution between efficiency and responsiveness while cost being the most important determinant. A study
conducted in Europe during 2010-11 surveyed six hundred professionals connected to supply chain practices revealed that supply chain practices have evolved in terms of maturity, mindset and actions.
Representative organizations have shown remarkable improvement using green supply chain strategies
(BearingPoint, 2011). While world economy revolves around fuel, and impact of fuel combustion on the
environment is almost inevitable. As industries grow along comes the challenge to reduce carbon foot
print for a sustainable future. There is a growing trend among organizations to produce with low
environmental impact. What earlier was seen as a bottleneck is now seen as an opportunity.
As a result of numerous favorable effects of containerization, there has been considerable increase in the tendency of using containers in international movements of both finished as well as semi-finished goods. Such an intensive use of containers has eventually resulted in the intensive exits of all containers from the major export countries. There have been various difficulties, however, encountered in succeeding the smooth return of the empty containers back to the country of origin. Therefore, an efficient empty container management and repositioning problem has become an important issue in the liner shipping industry. The problems caused by empty containers are not limited to certain economic effects on shipping companies. The import and export volume is not equal with each other in the foreign trade of the world countries, so empty container repositioning problem is caused by trade imbalanced exactly. There is an empty container supplying problem in exporter countries and there is an aggregation problem of empty containers in importer countries. The purpose of this study is to analyze the problems resulted from empty container repositioning. To manage this, the relevant literature published in the last twenty years will be thoroughly reviewed and the methods used by such studies will be evaluated.
Maritime shipping containers are important to a number of different industries as they facilitate the reduction of transportation costs. To address the needs of shippers, empty containers need to be repositioned globally between seaports. Since the cost of empty container repositioning (ECR) constitutes a significant element of the total cost of running a global container fleet operation, the problem has been receiving increasing attention from scholars. The diversity of this literature necessitates the development an appropriate classification scheme to identify trends, gaps, and directions for future research. This paper reviews publications on maritime ECR over the last two decades and examines such trends and potential research directions.
