Ship-berth link and demurrage costs: Evaluating different allocation policies and queue priorities via simulation

Abstract

The ship-berth link is one of the most critical aspects to be managed at port operations. Until now, simulation models have considered the impact of queue priorities, such as size and type of ships, on waiting times. This research differentiates from previous studies not only by considering another variable - the demurrage cost for each type of ship -, but also by considering the possibility of different berth allocation policies. It reports on a simulation study on small Brazilian private container terminal, where different berth allocation policies and queue priorities have been tested. Results and further analyses conducted via MANOVA indicate that the demurrage cost ratio between large and small ships and the critical waiting time in queue, after which demurrage costs are charged, impact on the choice of most adequate combination of policies and priorities. The analysis presented in this paper may help port authorities in determining a more precise figure for total demurrage costs. © 2011 Brazilian Operations Research Society.