Estimation of the perceived value of transit time for containerized cargoes

Shuaian Wang, Xiaobo Qu, Ying Yang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

21 Citations (Scopus)

Abstract

This paper proposes a novel method for estimating the perceived value of transit time of containers by shipping lines. The key idea is that a shipping line's published schedule is the optimal decision that minimizes the sum of fuel cost and time-associated costs of the containers adopted by the shipping line. Using the proposed method, we find that the adopted values of transit time for nine trans-Pacific services operated by Orient Overseas Container Line and five trans-Pacific services operated by Maersk Line are between US$5/TEU/day and US$30/TEU/day. We further demonstrate how the adopted value can be used for designing the optimal transit times between ports, analyzing the viability of slow-steaming, checking whether ships should speed up to catch up to connecting ships on other services, and helping to predict the market share of less polluting fuels in view of rules on air emission.
Original languageEnglish
Pages (from-to)298-308
Number of pages11
JournalTransportation Research Part A: Policy and Practice
Volume78
DOIs
Publication statusPublished - 1 Aug 2015
Externally publishedYes

Keywords

  • Bunker fuel
  • Liner shipping companies
  • Maritime container transportation
  • Value of transit time

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Transportation
  • Management Science and Operations Research

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