Incorporating the cost of time to a liner ship fleet deployment model : an application to the Far East - USA/Europe trade flows

Agrell, Per Joakim;Herrera Rodriguez, Manuel;Manrique, Casiano;Trujillo, Lourdes
(2016) 28th NOFOMA Conference (Nofoma 2016). Annual Nordic logistics research network conference — Location: Turku, Finland (8.June.2016)

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  • Agrell, Per Joakimorcid-logoUCLouvain
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  • Herrera Rodriguez, ManuelUCLouvain
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  • Manrique, CasianoUniversidad de Las Palmas de Gran Canaria
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  • Trujillo, LourdesUniversidad de Las Palmas de Gran Canaria
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Abstract
(en) In this paper the operational costs of a set of maritime and railway routes are studied. We apply a liner ship fleet deployment (LSFD) model in order to assign container liner shipping fleets to a network of routes connecting the Far East with the East and West coasts of North/South America and Europe. Consequently, some of these routes will cross the Panama Canal. A different mix of scenarios is considered: before and after the Panama Canal expansion and/or delays due to operational conflicts. Multimodality is included through a set of railway routes connecting the West and East coasts of the United States. The model minimizes an objective function comprising operational and time costs. The value of time is introduced in order to generate a more realistic result. Using existing estimates of time costs for the US foreign trade, delays are simulated in two specific sections of the network (ports in the US West Coast, and the Panama Canal), allowing the analysis of the resulting economic and operational impacts. The model leads to an optimal decision as a tradeoff between operational costs and the cost of time considering the associated effects of delays in US West Coast ports and/or the Panama Canal both before and after the Canal expansion. This formulation would allow us to simulate the impact of circumstances like port strikes, operational problems in the Panama Canal and other disruptive situations. The study may be used as an input to multiple regulatory decision methods based on the same benchmarking results.
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Agrell, P. J., Herrera Rodriguez, M., Manrique, C., & Trujillo, L. (2016). Incorporating the cost of time to a liner ship fleet deployment model : an application to the Far East - USA/Europe trade flows. In Lauri Ojala, Juuso Töyli, Tomi Solakivi, Harri Lorentz, Sini Laari and Ninni Lehtinen (eds) (ed.), Proceedings of the 28th Annual Nordic logistics research network conference (p. p. 671-673). https://hdl.handle.net/2078.5/171406