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246. Fleet deployment and slot exchange in liner shipping alliance with carbon emission trading system

Invited abstract in session TB-62: Energy Management in Ports and Shipping I, stream OR in Port Operations.

Tuesday, 10:30-12:00
Room: S12 (building: 101)

Authors (first author is the speaker)

1. Yadong Wang
School of Economics and Management, Nanjing University of Science and Technology
2. Shenghui Zhu
School of Economics & Management, Nanjing University of Science & Technology
3. Cagatay Iris
Management School, University of Liverpool

Abstract

Shipping alliance has become a prevalent cooperation form among major container shipping companies in recent decades. By forming an alliance, shipping companies can better satisfy the shipping demand and improve capacity utilization and profitability. At the same time, the shipping industry has become an important source of global greenhouse gas emissions. Faced with the emerging worldwide maritime carbon emission trading system, the shipping alliance needs to redesign its fleet to control carbon emissions and reduce its negative effects on the profit of the alliance members. This paper considers the fleet deployment and slot exchange problem in shipping alliance with the consideration of carbon emission trading system. A mixed integer nonlinear programming model is first proposed to simultaneously optimize the fleet deployment, the ship sailing speed and schedule for each shipping service, the slot allocation and exchange for each alliance member, and the container routing, with the objective of maximizing the alliance total profit (freight revenue minus the ship operating cost and emission trading cost) and minimize the variation of the profit rate among alliance members. A tailored spatial branch-and-bound algorithm is proposed subsequently considering the structure of the problem to obtain the global optimal solution. Numerical experiments also demonstrate the effectiveness of the model in emission reduction and profit improvement for a shipping alliance.

Keywords

Status: accepted


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