OPTIMIZATION OF EMPTY CONTAINER MOVEMENTS FOR FREIGHT FORWARDERS

Management of the container movements is critically important for seamless integration of logistics and supply chain processes. Any disruption in transport, storage and movement of empty containers, namely, empty container... [ view full abstract ]

Management of the container movements is critically important for seamless integration of logistics and supply chain processes. Any disruption in transport, storage and movement of empty containers, namely, empty container management may pose problems for both liners, carriers, transport organizers or forwarders. In a highly competitive maritime industry, carriers carry the heaviest cost burden in case their shippers’ empty container demand is satisfied on time. In case of empty demand shortage, typically forwarders provide alternative carrier service which have available empty containers on site. Therefore, tracking and monitoring real-time demand and supply of empty containers for carriers become complex and critical issue for transport organizers, or forwarders. Therefore, in this study, we focus on the empty container management problem from the transport organizer’s or forwarder’s point of view. By examining the relevant container management process with all relevant factors and dynamics, we develop an optimization model which aims to minimize the the total cost of empty container movement. The results of the proposed model are demonstrated with numerical data from a real logistics company.