Skip to main content
SpringerLink
Log in

Cascading effects, network configurations and optimal transshipment volumes in liner shipping

  • Original Article
  • Published:
Maritime Economics & Logistics Aims and scope

Abstract

As a consequence of the delivery of large container ships and of the drop in demand since 2008, companies are struggling with low freight rates. In addition, newly delivered container ships have been deployed on the main east–west trades, whereas medium-sized vessels have been pushed to smaller sectors through a phenomenon known as the cascading effect. This article investigates how this effect might lead liner companies to modify their services, such as including additional stops at major hubs. This article proposes a model that factors in potential changes in network configuration from direct to indirect services, and then tests the model with an empirical study of northern Europe/South American services that adds in a call at Tangier or Algeciras to the schedule. The results show that the optimal network configuration depends on vessel sizes and the transshipment volumes to be collected at the hub.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1
Figure 2

Similar content being viewed by others

References

  • Agarwal, R. and Ergun, Ö. (2008) Ship scheduling and network design for cargo routing in liner shipping. Transportation Science 42 (2): 175–196.

    Article  Google Scholar 

  • Alphaliner. (2011) Evolution of time charter rate, http://www.alphaliner.com/liner2/research_files/liner_studies/nograph/CharterRates.pdf, accessed 20 October 2012.

  • Bandeira, D.L., Becker, J.L. and Borenstein, D. (2009) A DSS for integrated distribution of empty and full containers. Decision Support Systems 47 (4): 383–397.

    Article  Google Scholar 

  • Buhaug, O. et al (2009) Second IMO Greenhouse Gas Study. London: International Maritime Organization.

    Google Scholar 

  • Cariou, P. (2011) Is slow steaming a sustainable means of reducing CO2 emissions from container shipping? Transportation Research Part D 16 (3): 260–264.

    Article  Google Scholar 

  • Chang, Y.-T., Lee, S.-Y. and Tongzon, J.L. (2008) Port selection factors by shipping lines: Different perspectives between trunk liners and feeder service providers. Marine Policy 32 (6): 877–885.

    Article  Google Scholar 

  • Christiansen, M., Fagerholt, K. and Ronen, D. (2004) Ship routing and scheduling: Status and perspectives. Transportation Science 38 (1): 1–18.

    Article  Google Scholar 

  • Clarkson Research Database. (2013) http://www.crsl.com, accessed 20 December 2013.

  • CMA CGM. (2011) http://www.cma-cgm.com/static/eCommerce/Attachments/GuideConservation.pdf, accessed 20 October 2012.

  • CMA CGM rates. (2011) http://www.cma-cgm.com/, accessed 20 October 2012.

  • Corbett, J.J., Wang, H. and Winebrake, J.J. (2009) The effectiveness and costs of speed reductions on emissions from international shipping. Transportation Research Part D 14 (8): 593–598.

    Article  Google Scholar 

  • CS Shipping Containers (CSSC). (2011) http://www.csshippingcontainers.co.uk/, accessed 20 October 2012.

  • Drewry Maritime Research. (2011) Container Forecaster 3Q11. London: Drewry Maritime Research.

  • Fagerholt, K. (2004) Designing optimal routes in a liner shipping problem. Maritime Policy & Management 31 (4): 259–268.

    Article  Google Scholar 

  • Fitzgerald, W.B., Howitt, O.J.A., Smith, I.J. and Hume, A. (2011) Energy use of integral refrigerated containers in maritime transportation. Energy Policy 39 (4): 1885–1896.

    Article  Google Scholar 

  • Foxcroft, A. (2010) Market Analysis: Container Leasing Market. London: Informal Communications.

    Google Scholar 

  • Fremont, A. (2007) Global maritime networks: The case of Maersk. Journal of Transport Geography 15 (6): 431–442.

    Article  Google Scholar 

  • Gelareh, S., Nickel, S. and Pisinger, D. (2010) Liner shipping hub network design in a competitive environment. Transportation Research Part E 46 (6): 991–1004.

    Article  Google Scholar 

  • Gelareh, S. and Pisinger, D. (2011) Fleet deployment, network design and hub location of liner shipping companies. Transportation Research Part E 47 (6): 947–964.

    Article  Google Scholar 

  • Hsu, C.I. and Hsieh, Y.P. (2007) Routing, ship size, and sailing frequency decision-making for a maritime hub-and-spoke container network. Mathematical and Computer Modelling 45 (7–8): 899–916.

    Article  Google Scholar 

  • Jetlund, A.S. and Karimi, I.A. (2004) Improving the logistics of multi-compartment chemical tankers. Computers and Chemical Engineering 28 (8): 1267–1283.

    Article  Google Scholar 

  • Lirn, T.C., Thanopoulou, H.A., Beynon, M.J. and Beresford, A.K.C. (2004) An application of AHP on transhipment port selection: A global perspective. Maritime Economics & Logistics 6 (1): 70–91.

    Article  Google Scholar 

  • Lloyd’s Register Fairplay. (2010) World shipping encyclopedia, http://www.ihs.com/products/maritime-information/index.aspx?pu=1/&rd=ihsfairplay_com/#, accessed 20 October 2012.

  • McCalla, R.J. (2008) Container transshipment at Kingston, Jamaica. Journal of Transport Geography 16 (3): 182–190.

    Article  Google Scholar 

  • Notteboom, T.E. (2012) Container shipping. In: W. Talley (ed.) The Blackwell Companion to Maritime Economics. Oxford: Wiley-Blackwell.

    Google Scholar 

  • Notteboom, T.E. and Vernimmen, B. (eds.) (2008) The impact of fuel costs on liner service design in container shipping. Proceedings of the Conference of the International Association of Maritime Economists; 2–4 April 2008, Dalian, China.

  • Notteboom, T.E. and Vernimmen, B. (2009) The effect of high fuel costs on liner service configuration in container shipping. Journal of Transport Geography 17 (5): 325–337.

    Article  Google Scholar 

  • Ramos, D. (2010) Linking efficient reefer logistics with higher environmental demands. Paper presented at the Eurofruit Congress Southern Hemisphere; 1–3 December, Punta del Este, Uruguay.

  • Ronen, D. (2011) The effect of oil price on containership speed and fleet size. Journal of the Operational Research Society 62 (1): 211–216.

    Article  Google Scholar 

  • Sea Distance (Voyage Calculator). (2011) http://sea-distances.com/, accessed 20 October 2012.

  • Shintani, K., Imai, A., Nishimura, E. and Papadimitriou, S. (2007) The container shipping network design problem with empty container repositioning. Transportation Research Part E 43 (1): 39–59.

    Article  Google Scholar 

  • Tang, S.L. and Yan, H. (2010) Pre-distribution versus post-distribution for cross-docking with transshipments. Omega 38 (3–4): 192–202.

    Article  Google Scholar 

  • Vis, I. and de Koster, R. (2003) Transshipment of containers at a container terminal: An overview. European Journal of Operational Research 147 (1): 1–16.

    Article  Google Scholar 

  • Wang, S. and Meng, Q. (2012) Liner ship fleet deployment with container transshipment operations. Transportation Research Part E 48 (2): 470–484.

    Article  Google Scholar 

Download references

Acknowledgements

The authors wish to acknowledge the anonymous referees and the Editor-in-Chief for their valuable comments.

Author information

Authors and Affiliations

  1. Information and Finance department, KEDGE Business School, Rue Antoine Bourdelle, Domaine de Luminy, BP 921, 13288 Marseille Cedex 9, France

    Pierre Cariou

  2. Industrial Engineering and Engineering Management Department, College of Engineering, University of Sharjah, Sharjah, 27272, United Arab Emirates

    Ali Cheaitou

Authors
  1. Pierre Cariou
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ali Cheaitou
    View author publications

    You can also search for this author in PubMed Google Scholar

Appendix

Appendix

Table A1

Table A1 Engine power (kwh) as a function of age (years), design speed (kt) and size (TEU). Values in logarithm
Full size table

Rights and permissions

Reprints and permissions

About this article

Cite this article

Cariou, P., Cheaitou, A. Cascading effects, network configurations and optimal transshipment volumes in liner shipping. Marit Econ Logist 16, 321–342 (2014). https://doi.org/10.1057/mel.2014.4

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/mel.2014.4

Keywords

Search

Navigation