Integration of international and Cabotage Container Shipping in Brazil

Abstract

This chapter concerns the integration of liner container shipping and short sea service (cabotage) in Brazil. The methodology is based on a linear programming model, which maximizes the gross contribution margin and evaluates the consequences of mixing international and domestic loads. Firstly, the text presents an overview of Brazilian cabotage. Then the problem and the model are presented. The method is applied to a real case, where through sensitivity analysis, impacts on the performance of a liner company are measured. Thus, different scenarios are compared using a set of key performance indicators. The results show that this integration is quite attractive, and they also provide the shipping company with a solid background to support strategic and operational decisions.