Conditions influencing the choice between direct shipment and transshipment in maritime shipping network

Abstract This study examines the conditions that influence the choice between direct shipment and transshipment, focusing on two factors: geographical distance and demand. We develop a two-stage model comprising shipping lines and shippers, and apply it to a virtual maritime network with one origin,...

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Main Authors: Hoshi Tagawa, Tomoya Kawasaki, Shinya Hanaoka
Format: Article
Language:English
Published: SpringerOpen 2021-05-01
Series:Journal of Shipping and Trade
Subjects:
Online Access:https://doi.org/10.1186/s41072-021-00085-3
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author Hoshi Tagawa
Tomoya Kawasaki
Shinya Hanaoka
author_facet Hoshi Tagawa
Tomoya Kawasaki
Shinya Hanaoka
author_sort Hoshi Tagawa
collection DOAJ
description Abstract This study examines the conditions that influence the choice between direct shipment and transshipment, focusing on two factors: geographical distance and demand. We develop a two-stage model comprising shipping lines and shippers, and apply it to a virtual maritime network with one origin, two destination ports, and one hub port. The generalized costs of shippers in the optimum direct shipment and in transshipment for the shipping lines model are compared to evaluate the choice between direct shipment and transshipment. We find that competitiveness of the port as a hub, indicating the cargo volume aggregated in transshipment, is essential for examining the cost-effectiveness of direct shipment and transshipment. The comparison between the cost-effectiveness of direct shipment and transshipment is based on the configuration of each network, especially in terms of frequency and the vessel size deployed. Direct shipment can be more cost-effective for short distances.
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spelling doaj.art-d8ee58265f4941bab668dfd9424d838f2022-12-21T19:47:25ZengSpringerOpenJournal of Shipping and Trade2364-45752021-05-016111510.1186/s41072-021-00085-3Conditions influencing the choice between direct shipment and transshipment in maritime shipping networkHoshi Tagawa0Tomoya Kawasaki1Shinya Hanaoka2Department of Transdisciplinary Science and Engineering, Tokyo Institute of TechnologyDepartment of Systems Innovation, School of Engineering, The University of TokyoDepartment of Transdisciplinary Science and Engineering, Tokyo Institute of TechnologyAbstract This study examines the conditions that influence the choice between direct shipment and transshipment, focusing on two factors: geographical distance and demand. We develop a two-stage model comprising shipping lines and shippers, and apply it to a virtual maritime network with one origin, two destination ports, and one hub port. The generalized costs of shippers in the optimum direct shipment and in transshipment for the shipping lines model are compared to evaluate the choice between direct shipment and transshipment. We find that competitiveness of the port as a hub, indicating the cargo volume aggregated in transshipment, is essential for examining the cost-effectiveness of direct shipment and transshipment. The comparison between the cost-effectiveness of direct shipment and transshipment is based on the configuration of each network, especially in terms of frequency and the vessel size deployed. Direct shipment can be more cost-effective for short distances.https://doi.org/10.1186/s41072-021-00085-3Shipping networkDirect shipmentTransshipmentTwo-stage model
spellingShingle Hoshi Tagawa
Tomoya Kawasaki
Shinya Hanaoka
Conditions influencing the choice between direct shipment and transshipment in maritime shipping network
Journal of Shipping and Trade
Shipping network
Direct shipment
Transshipment
Two-stage model
title Conditions influencing the choice between direct shipment and transshipment in maritime shipping network
title_full Conditions influencing the choice between direct shipment and transshipment in maritime shipping network
title_fullStr Conditions influencing the choice between direct shipment and transshipment in maritime shipping network
title_full_unstemmed Conditions influencing the choice between direct shipment and transshipment in maritime shipping network
title_short Conditions influencing the choice between direct shipment and transshipment in maritime shipping network
title_sort conditions influencing the choice between direct shipment and transshipment in maritime shipping network
topic Shipping network
Direct shipment
Transshipment
Two-stage model
url https://doi.org/10.1186/s41072-021-00085-3
work_keys_str_mv AT hoshitagawa conditionsinfluencingthechoicebetweendirectshipmentandtransshipmentinmaritimeshippingnetwork
AT tomoyakawasaki conditionsinfluencingthechoicebetweendirectshipmentandtransshipmentinmaritimeshippingnetwork
AT shinyahanaoka conditionsinfluencingthechoicebetweendirectshipmentandtransshipmentinmaritimeshippingnetwork