Integrated Optimization of Port Rotation Direction and Fleet Deployment for Container Liner Shipping Routes

Abstract

This paper provides an integrated planning methodology for the optimization of port rotation direction and fleet deployment for container liner shipping routes with consideration of demand uncertainty. We first consider a special case that demand is deterministic. A multicommodity flow network model is developed via minimizing the total network-wide cost. Its decisions are the selection of port rotation direction and fleet deployment and container routings in the shipping network. Afterward, we address the generic case that uncertain demand is considered, which is represented by potentially realizable demand scenarios. We develop a minimax regret model to procure the least maximum regret across all the demand scenarios. The proposed models are applied to an Asia-Europe-Oceania liner shipping network with 46 ports and 12 ship routes. Results could provide the liner company with a comprehensive decision tool to simultaneously determine port rotation direction and fleet deployment when tackling uncertain demand.