Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment

Ercan Kurtuluş

Makale detayları

Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment

Yazarlar:

Ercan Kurtuluş

Yayıncı:

Istanbul University

Ana Başlıklar:

Yöneylem

Dergi:

Journal of Transportation and Logistics Vol.8 Issue 1, pp.13-28

Belge Tipi:

Makale

Yayın Tarihi:

10/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001298121

pISSN:

2459-1718

Anahtar kelimeler:

Özet:

 This study aimed to propose an optimization model for slot allocation and contractual pricing that considers spot and contractual shipments and empty container repositioning under a stochastic environment. In that respect, a two-stage stochastic non-linear programming modelwas proposed. The model considers contractual pricing that is overlooked by previous studies. Experimentation results revealed that decreasing market demand and spot market prices could cause serious profit loss while creating a high level of idle capacity.With the increasing market demand, capacity utilization reaches saturation at 90 requiring a capacity increase in the service. In the increasing market, slots allocated to empty containers get reduced while taking advantage of other options for empty container supply. Experimentation of symmetric uncertainty revealed that the range of uncertainty should be minimized since it creates a serious loss in profits and capacity utilization. Calculations also demonstrated that the applications of the stochastic modeling solutions would provide higher profit margins than the solutions of their deterministic equivalents. The model can easily be applied to the real-life situations of container liner services for managing and optimization of their service capacities as well as determining optimum contractual prices.

 This study aimed to propose an optimization model for slot allocation and contractual pricing that considers spot and contractual shipments and empty container repositioning under a stochastic environment. In that respect, a two-stage stochastic non-linear programming modelwas proposed. The model considers contractual pricing that is overlooked by previous studies. Experimentation results revealed that decreasing market demand and spot market prices could cause serious profit loss while creating a high level of idle capacity.With the increasing market demand, capacity utilization reaches saturation at 90 requiring a capacity increase in the service. In the increasing market, slots allocated to empty containers get reduced while taking advantage of other options for empty container supply. Experimentation of symmetric uncertainty revealed that the range of uncertainty should be minimized since it creates a serious loss in profits and capacity utilization. Calculations also demonstrated that the applications of the stochastic modeling solutions would provide higher profit margins than the solutions of their deterministic equivalents. The model can easily be applied to the real-life situations of container liner services for managing and optimization of their service capacities as well as determining optimum contractual prices.

 This study aimed to propose an optimization model for slot allocation and contractual pricing that considers spot and contractual shipments and empty container repositioning under a stochastic environment. In that respect, a two-stage stochastic non-linear programming modelwas proposed. The model considers contractual pricing that is overlooked by previous studies. Experimentation results revealed that decreasing market demand and spot market prices could cause serious profit loss while creating a high level of idle capacity.With the increasing market demand, capacity utilization reaches saturation at 90 requiring a capacity increase in the service. In the increasing market, slots allocated to empty containers get reduced while taking advantage of other options for empty container supply. Experimentation of symmetric uncertainty revealed that the range of uncertainty should be minimized since it creates a serious loss in profits and capacity utilization. Calculations also demonstrated that the applications of the stochastic modeling solutions would provide higher profit margins than the solutions of their deterministic equivalents. The model can easily be applied to the real-life situations of container liner services for managing and optimization of their service capacities as well as determining optimum contractual prices.

 This study aimed to propose an optimization model for slot allocation and contractual pricing that considers spot and contractual shipments and empty container repositioning under a stochastic environment. In that respect, a two-stage stochastic non-linear programming modelwas proposed. The model considers contractual pricing that is overlooked by previous studies. Experimentation results revealed that decreasing market demand and spot market prices could cause serious profit loss while creating a high level of idle capacity.With the increasing market demand, capacity utilization reaches saturation at 90 requiring a capacity increase in the service. In the increasing market, slots allocated to empty containers get reduced while taking advantage of other options for empty container supply. Experimentation of symmetric uncertainty revealed that the range of uncertainty should be minimized since it creates a serious loss in profits and capacity utilization. Calculations also demonstrated that the applications of the stochastic modeling solutions would provide higher profit margins than the solutions of their deterministic equivalents. The model can easily be applied to the real-life situations of container liner services for managing and optimization of their service capacities as well as determining optimum contractual prices.

Makale detayları

Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment

Yazarlar:

Ercan Kurtuluş

Yayıncı:

Istanbul University

Ana Başlıklar:

Yöneylem

Dergi:

Journal of Transportation and Logistics Vol.8 Issue 1, pp.13-28

Belge Tipi:

Makale

Yayın Tarihi:

10/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001298121

pISSN:

2459-1718

Container shipping

contractual pricing

slot allocation

revenue management

capacity management

Sayı

Makale detayları

Pricing of Contractual Shipments and Slot Allocation in Container Liner Shipping under Stochastic Environment

Yazarlar: Ercan Kurtuluş

Yayıncı: Istanbul University

Ana Başlıklar: Yöneylem

Dergi: Journal of Transportation and Logistics Vol.8 Issue 1, pp.13-28

Belge Tipi: Makale

Yayın Tarihi: 10/2023

Belge Dili: İngilizce

Document ID (Org No.): 2001298121

pISSN: 2459-1718

Container shipping

contractual pricing

slot allocation

revenue management

capacity management

Sayı

Yazarlar:

Ercan Kurtuluş

Yayıncı:

Istanbul University

Ana Başlıklar:

Yöneylem

Dergi:

Journal of Transportation and Logistics Vol.8 Issue 1, pp.13-28

Belge Tipi:

Makale

Yayın Tarihi:

10/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001298121

pISSN:

2459-1718