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Optimal Bilateral Cooperative Slot Allocation for Two Liner Carriers under a Co-Chartering Agreement

Published online by Cambridge University Press:  17 April 2017

Jihong Chen ,
Xiang Liu ,
Xiaohua Zhang ,
Junliang He  and
Lihua Luo
Jihong Chen
Affiliation:
(College of Transport and Communications, Shanghai Maritime University, China)
Xiang Liu*
Affiliation:
(Department of Civil and Environmental Engineering, Rutgers, The State University of New Jersey, USA)
Xiaohua Zhang
Affiliation:
(Logistics Engineering College, Shanghai Maritime University, China)
Junliang He
Affiliation:
(Engineering Research Center of Container Supply Chain Technology, Ministry of Education, Shanghai Maritime University, China)
Lihua Luo
Affiliation:
(College of Transport and Communications, Shanghai Maritime University, China)
*
(E-mail: [email protected])
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Abstract

The container liner shipping industry has stepped into an era of international strategic alliances. Important to these liner alliances is the sharing and allocation of container slots between its member carriers. This paper optimises planning of container ship capacity sharing and co-allocation under a co-charting agreement. First, we explain the concept of this business agreement and its implications on maritime operations. Then, we identify key influencing factors that may affect the decisions of cooperative slot co-allocation. The slot co-allocation problem is modelled as an Integer Programming problem and solved using data from two routes between the United States and Asia. The model determines the optimal slot co-allocation strategies between shipping alliance carriers along allied shipping routes. Computational results indicate that the proposed method is effective in obtaining optimal, cooperative slot sharing strategies that can maximise the total system revenue.

Keywords

ContainerSlot co-allocationLiner shippingCo-chartering
Type
Research Article
Information
The Journal of Navigation , Volume 70 , Issue 5 , September 2017 , pp. 1170 - 1182
Copyright
Copyright © The Royal Institute of Navigation 2017 

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