Supply chain cost minimization by collaboration between liner shipping companies and port operators

Zhiyuan Liu, Shuaian Wang, Yuquan Du, Hua Wang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

7 Citations (Scopus)

Abstract

The container handling rates at ports are input for container shipping operations planning by shipping lines. The handling rates are unilaterally determined by port operators. This article points out that it may be possible for port operators to provide higher handling rates at some additional costs. The higher handling rates will enable ships to have more time sailing at sea, leading to less fuel consumption. The reduction in fuel costs for shipping lines may be more significant than the additional costs incurred by port operators. We therefore propose a practical and easy-to-implement collaborative mechanism between shipping lines and port operators, where the shipping lines compensate the port operators for their additional costs. As a result, the overall efficiency of container transportation is improved.
Original languageEnglish
Pages (from-to)296-314
Number of pages19
JournalTransportation Journal
Volume55
Issue number3
DOIs
Publication statusPublished - 1 Jan 2016

Keywords

  • Container liner shipping
  • Maritime transportation
  • Port operators
  • Shipping lines

ASJC Scopus subject areas

  • Transportation

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