Skip to main content
SpringerLink
Log in

Bi-criteria approach to containership slot allocation in liner shipping

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

Abstract

Containership capacity allocation is an important issue since liner companies must avoid unused space on a voyage to maximize their revenue. Therefore, in the face of uncertain cargo demand and fiercely competitive markets, liner carriers build revenue management systems to maximize voyage profits through careful consideration of slot allocation and pricing. A containership slot allocation model is proposed in this article to deal with two conflicting objectives: carrier’s freight contribution and agents’ degree of satisfaction, as well as fuzzy constraints, that is, uncertainties of cargo transportation demand and weight. This model is formulated using fuzzy multi-objective programming for deep-sea liner service containership slot allocation. Interactive fuzzy multi-objective linear programming with fuzzy parameters is applied to solve this problem. The proposed model is applied to an Asia-Europe service route of a liner company to test its efficacy. Results show the model’s applicability and excellent performance in practice.

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
Figure 3

Similar content being viewed by others

References

  • Belobaba, P.P. (1987) Airline yield management: An overview of seat inventory control. Transportation Science 21 (1): 63–73.

    Article  Google Scholar 

  • Belobaba, P.P. (1989) Application of a probabilistic decision model to airline seat inventory control. Operations Research 37 (2): 183–197.

    Article  Google Scholar 

  • Brumelle, S.L. and McGill, J.I. (1990) Allocation of airline seats between stochastically dependent demand. Transportation Science 24 (2): 183–192.

    Article  Google Scholar 

  • Cross, R.G. (1998) Trends in airline revenue management. In: G.F. Butler and M.R. Keller (eds.) Handbook of Airline Marketing. New York: McGraw-Hill.

    Google Scholar 

  • Curry, R. (1990) Optimal seat allocation with fare classes nested by origins and destinations. Transportation Science 24 (2): 193–204.

    Article  Google Scholar 

  • Donaghy, K., McMahon, U. and McDowell, D. (1995) Yield management: An overview. International Journal of Hospitality Management 14 (2): 139–150.

    Article  Google Scholar 

  • Kadar, M.H. and Proost, D.D. (1997a) Supply and demand in liner shipping. Containerisation International 30 (6): 61–65.

    Google Scholar 

  • Kadar, M.H. and Proost, D.D. (1997b) Back to the basics for marketing, pricing, and selling. Containerisation International 30 (7): 49–51.

    Google Scholar 

  • Kasilingam, R.G. (1996) Air cargo revenue management: Characteristics and complexities. European Journal of Operational Research 96 (1): 36–44.

    Article  Google Scholar 

  • Kimes, S.E. (1989) The basics of yield management. Cornell Hotel and Restaurant Administration Quarterly 30 (2): 14–19.

    Article  Google Scholar 

  • McGill, J.I. and Van Ryzin, G.J. (1999) Revenue management: Research overview and prospects. Transportation Science 33 (2): 233–256.

    Article  Google Scholar 

  • Robinson, L.W. (1995) Optimal and approximate control polices for airline booking with sequential fare classes. Operations Research 43 (3): 252–263.

    Article  Google Scholar 

  • Sakawa, M. (1983) Interactive computer programs for fuzzy linear programming with multiple objectives. International Journal of Man-Machine Studies 18 (4): 489–503.

    Article  Google Scholar 

  • Sakawa, M. (1984) Interactive fuzzy goal programming for multi-objective nonlinear problems and its application to water quality management. Control and Cybernetics 13 (2): 217–228.

    Google Scholar 

  • Sakawa, M. (1993) Fuzzy Sets and Interactive Multi-objective Optimization. New York: Plenum Press.

    Book  Google Scholar 

  • Teodorovic, D. (1998) Airline network seat inventory control: A fuzzy set theory approach. Transportation Planning and Technology 22 (1): 47–72.

    Article  Google Scholar 

  • Ting, S.C. and Tzeng, G.H. (2004) An optimal containership slot allocation for liner shipping revenue management. Maritime Policy and Management 31 (3): 199–211.

    Article  Google Scholar 

  • Weatherford, L.R. and Bodily, S.E. (1992) A taxonomy and research overview of perishable-asset revenue management: Yield management, overbooking, and pricing. Operations Research 40 (5): 831–844.

    Article  Google Scholar 

  • Wollmer, R.D. (1992) An airline seat management model for a single leg route when lower fare classes book first. Operations Research 40 (5): 26–37.

    Article  Google Scholar 

  • Wong, J.T., Koppelman, F.S. and Daskin, M.S. (1993) Flexible assignment approach to itinerary seat allocation. Transportation Research Part B 27 (1): 33–48.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Transportation Science, Faculty of Maritime Transport and Management, National Taiwan Ocean University, No. 2, Pei-Ning Road, Keelung, Taiwan

    Shih-Chan Ting

  2. Graduate Institute of Urban Planning, National Taipei University, 151, University Rd, San Shia District, New Taipei City, Taiwan

    Gwo-Hshiung Tzeng

Authors
  1. Shih-Chan Ting
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Gwo-Hshiung Tzeng
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Ting, SC., Tzeng, GH. Bi-criteria approach to containership slot allocation in liner shipping. Marit Econ Logist 18, 141–157 (2016). https://doi.org/10.1057/mel.2015.12

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/mel.2015.12

Keywords

Search

Navigation