Multimodal freight transportation with ship chartering
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Multimodal freight transportation with ship chartering Ö z g ü r Ö z p e y n i r c i a, K o r a y Ü ç e r b a n d T u n c a T a b a k l a r c a
Department of Logistics Management, Faculty of Economics and Administrative Sciences, İzmir University of Economics, İzmir 35330, Turkey. E-mail: [email protected] b İnönü Mahallesi, 2013 Sk. No:3, Çeşme, İzmir, Turkey. E-mail: [email protected] c Humanitarian Logistics and Supply Chain Research Institute (HUMLOG Institute), Supply Chain Management and Corporate Geography, Hanken School of Economics, Helsinki, Finland. E-mail: tunca.tabaklar@hanken.fi
A b s t r a c t In this article, we present a mathematical model that finds the optimal multimodal freight transportation plan for manufacturing companies during a planning horizon. The model considers road and sea transportation options. The sea transportation requires chartering at least one ship among candidate ships. The chartered ships operate on several predefined routes during the planning horizon. We apply the mathematical model to a company, which currently delivers finished goods to customers via road and is considering the option of using multimodal transportation. The company plans to charter ships on an annual basis and operate them among domestic ports. We use real data regarding the ships (capacity, speed, stowage, costs), ports (capacities, loading/ unloading rates, handling costs) and trucks (costs). We perform a sensitivity analysis based on several cases, and observe that the proposed plan does not change up to moderate levels of changes in the data. Maritime Economics & Logistics (2014) 16, 188–206. doi:10.1057/mel.2013.24; published online 28 November 2013
Keywords: multimodal transportation; sea and road transportation; ship chartering; mathematical modeling; mode selection; sensitivity analysis
© 2014 Macmillan Publishers Ltd. 1479-2931 Maritime Economics & Logistics www.palgrave-journals.com/mel/
Vol. 16, 2, 188–206
Multimodal freight transportation with ship chartering
Introduction The highly globalized world creates difficulties but also opportunities for the survival of firms. The companies always face market pressure to be more efficient and effective, and try to reduce costs as much as possible in order to survive. Freight transportation costs may be responsible for up to two-thirds of the total logistics cost of a company and therefore have a significant effect on customer service level (Ghiani et al, 2004). Turkey has a growing transportation network. According to Turkish Statistical Institute (TUIK) report (2012), road transportation is the dominant mode for both passenger and freight transportation. Table 1 shows the modal split for freight and passenger transportation between 2004 and 2010 in Turkey. In 1993, the European Conference of Ministers of Transport defined multimodal transportation as ‘the carriage of goods by at least two different modes of transport’. A special case of multimodal transportation is intermodal transportation. In this, there is no actual handling of goods i
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