Network-based Optimal Design for International Shipping System
Er-shi Qi1,Lian-yu Zhu 1,2, Meng-wei Yu2
1
Management and Economics Department, Tianjin University, Tianjin, China
2
CCCC International Shipping Corp., Tianjin, China
(yumengwei1988@163.com)
Abstract - Lean concept and lean thinking are means of
expressions for industrial engineering reflect in different
countries, enterprises and environment. Cost management in
international shipping system is an application of system
optimization used lean management theory and method.
After optimization, lean cost management can be realized.
Keywords
Shipping
- Cost, Lean, Network, Optimization,
I. INTRODUCTION
Based on analysis of plenty of literatures and summaries,
so far related research usually adopt one time, single
phased, static decision making using minimized vessel
amount and transportation cost, major in transporting a
certain kind of cargo, specific quantity, constant port of
call, fixed freight and a clearly transportation period.
There are rare strictly route integrated optimization model
for tramp transportation, same as balance in multi phased
transportation and scheduling suitable tonnage in existing
research. The inevitable trend of the future research is to
establish a series of decision supporting systems including
route optimization, marketing, ship management, safety
management, cost management, performance appraisal,
business pattern and fleet development[1] [2].
At present, China is continuously exploring in lean
management theory, related theory and method still
imperfect. Improve work efficiency, reduce management
cost and waste by introducing and exploring advanced
lean theory will dramatically affect survival and
development of the industry[3][4].
In international shipping system, it usually involves
complicated network system, and lean cost in
management of international shipping is the goal which
enterprise pursue. An optimal sailing route is the key in
shipping system. Optimal sailing route is usually defined
as, with respect to the navigation safety, the route which
has shortest transit time and best economic benefit.
Optimal sailing route infinitely close to the ideal
condition will bring higher economic benefit that has an
important practical significance especially for long
distance ocean transportation[5-7].
cost, for example ship's tonnage, stowage, port of call and
order, optimal shipping lane etc. Shipping lane is most
important one. There are many factors which affect the
shipping lane for instance meteorological condition, sea
condition, barrier, location, ship's condition and practice
course. Meteorological condition is relatively obvious
among the above including monsoon, depression, sea
mist, drift ice and iceberg. Sea condition such as ocean
circulation, swell. Ship's conditions comprise vessel age,
draft, speed, tonnage, stowage and ship's crew.
Voyage cost, usually refers to cost of unit time in
navigation（ Pa ） multiplied by the transit time（ Ta
） plus the sum of cost of unit time in port when
loading/discharging （
Tp
port（
）.
Computational formula:
P   ( Pa  Ta  Pp  Tp)
Marine cargo transportation is very important in
international shipping. The profit point lies in the lean
cost management. There are many factors which affect the
(1)
The semi-submersible vessel operated by Group K is a
typical representative of ocean transportation, this cross
ocean transportation we call it shipping lane. Far off
coast, sailing route is regularly long and easily affected by
meteorological condition is the outstanding features of
shipping lane. During transit, it is hard to avoid severe sea
condition. Especially during transit in unfamiliar regions,
ship’s crew can only rely on the bridge documentation. In
particular, region vessel needs to apply to sail with
convoy in order to avoid being exposed under the risk of
piracy attack and transit time and route will be restricted.
The following table lists four basic shipping lanes [8].
TABLE I
SHIPPING LANE-1[9]
Shipping lane
Philosophy of measurement
The rhumb line
When sailing in low latitudes, near north and
south or in short voyage, the rhumb line is
very close to the shortest route.
Great circle sailing line is an aggregation of
plenty of rhumb line.
Define as sailing follow a same latitude
circles, it is an exception of the rhumb line.
The shortest route under limited latitudes, it
is a combination of great circle sailing line
and parallel sailing line.
Great circle sailing line
Parallel sailing line
II. METHODOLOGY
Pp ） multiplied by the time in
Composite sailing line
Considering hydrological and meteorological conditions,
we can get four kinds of shipping lane.
CHART I
SHIPPING LANE-2[10]
Shipping Lane
Shortest route
Climatological route
III. RESULTS
Based on lean theory, assume workflow and continuity of
the workflow as object, research on how to ensure the
continuity of the workflow, reduce waste in workflow in
uncertain period condition synthetically applied Cycle
Operation Network (CYCLONE), Genetic Algorithm
(GA), 4D-CAD, Line of balance (LOB), Theory of
Constraints (TOC), Extensible Markup Language (XML),
and established workflow integrated management method,
and realize project workflow lean management. Workflow
integrated management consists of following three
modules: simulation module, optimization module, visual
module.
There are plenty of optimization models in shipping
system based on different view points. For example
queuing system targeting in maximizing the benefit of the
vessel or make it most economical in certain index
requirement. In general condition, improving service level
both in quantity and quality will reduce the wait expenses
of shipper and increase the cost of service supplier, hence
the optimal condition is to minimize the total amount of
two expenses, take both shipper's and ship owner's
interest into consideration, optimize fleet size, and
minimize costs and expenses. In steady state circumstance,
all kinds of cost and expenses are calculated on time basis,
Z represents the sum costs in unit time, which is the
optimization of the accumulated cost.
Shortest route is a sticking point when choosing sailing
route. Moore-Dijkstra algorithm is widely used in shortest
route design and optimization. It is a kind of tagging
method, the basic ideas starts from origin, explores path
of shortest length and marked every vertex in the process,
gets the fixed tag from the previous vertex or the
temporary tag from the origin[11][12][13][14][15].
First make L（P1）=0，L（P）=+∞（P ≠P1），
T1= P1, S0=｛Pn｝，
(1)
L（Pj）=min｛L（Pj）, S(Pn)+Knj｝
(2)
Make L（Pjn）= min｛L（Pj）｝ (Pj∈ Sn)
Optimal route
Meteorological route
(3)
When j=0, L（P2）=r1 minimum
When j=1, L（P3）=r2 minimum
When j=2, L（P5）= r1+r10 minimum
When j=3, L（P6）= r2+r8 minimum
When j=4, L（P4）=r3 minimum
When j=5, L（P7）=min｛(r3+ r6), (r2+ r7)｝minimum
When j=6, L（P8）=min｛(r2+ r8+ r15), (r1+ r10+ r14)｝
minimum
CHART II
Optimization of shipping lane
P2
r1
P5
r14
r9
r4
r2
P1
r10
r11
P3
r5
r8
P6
P4
P8
r12
r7
r3
r15
P7
r13
r6
V. CONCLUSION
Refer to the different quality, quantities, forms, value,
units of measurement of various goods, the demands for
transportation presents the hierarchical characteristics,
different in freight, time, safety level and frequency. In
the meantime, with the rapid development of social
economy and constantly improved of regional
comprehensive
transport
network,
multimodal
transportation has become the direction and goal of
modern transportation and logistics development. In this
context, it is with great significance in considering
complex cargo, choosing the optimal dispatch, type of
transportation and route, highlighting the effect of
characteristic to optimize comprehensive transportation
system.
International marine logistic network is defined as an
aggregation of connected organization and facilities in
goods flow between different countries and regions. It
serves to prompt international trade, transnational
operation and accordance of marine system in difference
countries. Regional marine logistic network is defined as
an aggregation of connected organization and facilities in
special cargo flow within different regions. It has realized
the optimal allocation of resources and prompted logistic
system accordance in different regions, countries and
ports.
Various shipping companies, ship owners and charterers
are very concerned about a shorter, economic and safety
route, it is also a significant issue in shipping
development. So far there isn't a complete, comprehensive
and practical route optimization theory in worldwide, and
existing methods are combination and iteration based on
various kinds of algorithm that meet the different needs of
user.
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