Intelligent Container Repositioning with Depot Pricing Policies

Abstract

Empty container management has always been a crucial issue in the logistics sector. Specifically the repositioning of empty containers plays an important role in the industry of maritime shipping. Not only has an economic impact on the stakeholders affiliated with the container logistics chains but also has an effect on the society in terms of environment and sustainability as the reduction in the movement of empty containers will also reduce fuel consumption. The main objective of this paper is to minimize the total cost. This total cost includes the cost required for transportation of the empty containers to their depots and the storage cost of these containers in the assigned depots. The types of costs involved in empty container repositioning are defined via the review of the related literature and industrial practices. In this study a mixed-integer linear programming model is developed that minimizes the total cost require in the repositioning of empty containers. The proposed model determines the storage depot of each empty container considering the depot pricing policies and distances between the port terminals and container depots. Computational results indicate that the proposed model can identify the best alternatives for empty container storage with minimum total cost.