Abstract
This article formulates the mathematical model of the liner shipping company cycle cost and attempts to optimize the operational profile of company assets in regards to specific network of routes of cargo flows and vessels portfolio. In other words it attempts to give a practical solution to the modern shipping company fleet deployment problem. This is achieved by developing a generic cost model methodology that aims to minimize total operating costs by using Genetic Algorithms in optimizing various predefined attributes such as operational speed. The finalized model could be applicable to liner shipping companies for optimization purposes of liner networks, as well as for simulation and examination of possible scenarios and what-if analysis. In the era of recession, a demand shock is examined and, interesting results are produced. In further research, this model can estimate the impact of environmental legislation intensification. In the what-if analysis, the model can depict how an initial design of a liner system can be optimized by modifying system attributes to dynamically meet new requirements.
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Acknowledgements
Work on this article was carried out in the context of research project ‘Analysis of Optimal Containership Size and Its Impact on Liner Shipping Operations’ and was supported in part via a NOL Fellowship Program grant to the National University of Singapore (NUS) and the National Technical University of Athens (2008–2010). The authors would like to thank Professors T.F. Fwa and Meng Qiang of NUS for their collaboration in this project and Mr Cedric Foo and Capt. Alam Khorshed of NOL/APL for their assistance. We would further like to thank the Editor and the anonymous referees for their comments on previous versions of the manuscript.
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Zacharioudakis, P., Iordanis, S., Lyridis, D. et al. Liner shipping cycle cost modelling, fleet deployment optimization and what-if analysis. Marit Econ Logist 13, 278–297 (2011). https://doi.org/10.1057/mel.2011.11
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DOI: https://doi.org/10.1057/mel.2011.11