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Supply chain cost minimization by collaboration between liner shipping companies and port operators


Liu, Z and Wang, S and Du, Y and Wang, H, Supply chain cost minimization by collaboration between liner shipping companies and port operators, Transportation Journal, 55, (3) pp. 296-314. ISSN 0041-1612 (2016) [Refereed Article]

Copyright Statement

Copyright 2016 The Pennsylvania State University

DOI: doi:10.5325/transportationj.55.3.0296


The container handling rates at ports are input for container shipping operations planning by shipping lines. The handling rates are unilaterally determined by port operators. This article points out that it may be possible for port operators to provide higher handling rates at some additional costs. The higher handling rates will enable ships to have more time sailing at sea, leading to less fuel consumption. The reduction in fuel costs for shipping lines may be more significant than the additional costs incurred by port operators. We therefore propose a practical and easy-to-implement collaborative mechanism between shipping lines and port operators, where the shipping lines compensate the port operators for their additional costs. As a result, the overall efficiency of container transportation is improved.

Item Details

Item Type:Refereed Article
Keywords:maritime transportation, container liner shipping, shipping lines, port operators
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation, logistics and supply chains
Research Field:Maritime transportation and freight services
Objective Division:Transport
Objective Group:Water transport
Objective Field:International sea freight transport (excl. live animals, food products and liquefied gas)
UTAS Author:Du, Y (Dr Bill Du)
ID Code:113312
Year Published:2016
Web of Science® Times Cited:11
Deposited By:Maritime and Logistics Management
Deposited On:2016-12-20
Last Modified:2017-10-20

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