Liner ship fleet deployment models and the cost of time: the case of the China - USA maritime routes

Abstract

A liner ship fleet deployment (LSFD) model is applied to a set of transoceanic routes connecting China with the East and West coasts of North America. The USA West Coast ports act as transshipment hubs either in an intermodal approach for the railway network linking them to the East Coast, or for the maritime routes connecting both sides of the United States via the Panama Canal. Several shipping lines operate both the Trans-Pacific and Trans-Canal routes with different types of ships (one ship type per route). The operating costs of the lines is minimized using a MIP model, determining the optimal number and type of ships in each line. In a second step, the transit time (including sailing and port operations time) is included. Using an estimation of the opportunity cost of time from other studies, we minimize the total cost, including both, operational and time costs. Delays are simulated both in the US West Coast ports and in the Panama Canal, analyzing the resulting economic and operational impacts. An optimal decision is reached as a tradeoff between operational and time costs, considering the associated effects of delays in the maritime and railway networks. Overall, our formulation allows the assessment of disruptive situations like port strikes, operational problems in the Panama Canal and others to the total shipment volume from a supply chain perspective.