ECONOMIC BENEFITS OF DEPLOYING FOLDABLE CONTAINERS: REDUCING BUNKER AND CONTAINER MANAGEMENT COSTS IN A MULTI-PORT SHIPPING NETWORK

Abstract

This study seeks to explore the effectiveness of employing foldable containers (FLDs) in liner shipping to reduce relocation and the empty containers and bunker costs (BCs) associated with ship operations. This resolves a minimum-cost multi-commodity network flow problem by optimizing container fleet size and empty container relocation in a multi-port shipping service network. Port handling time and sailing speed provided by obtained optimal solutions enable the determination of ship BCs as a secondary step. The numerical experiments demonstrate the comparative effect of FLDs against standard ones on the reduction of the costs of empty containers and containership bunker oil.