INTRODUCTION TO THE CONTAINER SHIPPING INDUSTRY University of Wisconsin – Milwaukee Paper No. 11-1 National Center for Freight & Infrastructure Research & Education College of Engineering Department of Civil and Environmental Engineering University of Wisconsin, Madison Author: Matthew E. H. Petering Department of Industrial and Manufacturing Engineering University of Wisconsin – Milwaukee Principal Investigator: Alan J. Horowitz Professor, Civil Engineering and Mechanics Department, University of Wisconsin – Milwaukee January 6, 2011 Introduction to the Container Shipping Industry INTRODUCTION This document contains images of all slides in a course module about the container shipping industry and container port operations. Sources and additional content are found on the “note pages” of the original slide presentation. The full presentation contains videos. This presentation is available upon request to Alan Horowitz, horowitz@uwm.edu. Introduction to the Container Shipping Industry Matthew E. H. Petering Assistant Professor Department of Industrial and Manufacturing Engineering University of Wisconsin—Milwaukee mattpete@uwm.edu © 2010 Matthew E. H. Petering 1 Outline 1. 2. 3. 4. 5. 6. Introduction to maritime shipping Introduction to container shipping Container vessels and shipping lines Seaports Railway container transportation / facilities Conclusion 2 Outline 1. 2. 3. 4. 5. 6. Introduction to maritime shipping Introduction to container shipping Container vessels and shipping lines Seaports Railway container transportation / facilities Conclusion 3 Introduction to Maritime Shipping z Ships carry 99% of overseas trade in volume terms and 62% in value terms, the remainder being conveyed by air. z 90% of all international trade moves by sea z Globally, the ton-miles of freight moved by water are more than twice the total ton-miles moved by road, railway, and air put together. z Water transportation is less costly and more energy efficient than other modes of transport: 4 http://www.greatlakes-seaway.com/en/aboutus/competitiveness.html Maritime Shipping: Cargo Types Dry Bulk • (salt, grain, minerals, cement/gypsum, coal byproducts) Liquid Bulk • (crude oil, gasoline, chemicals, liquefied natural gas) Break Bulk • (steel, lumber, heavy machinery) • Automobile • Containerized (finished consumer goods) 5 Maritime Shipping: Major Players • Shippers (importers/exporters) • Shipping lines (ocean carriers, vessel operators) • Seaport terminal operators (Nike, Wal-Mart, ExxonMobil, Toyota) (Maersk Sealand, MSC, CMA CGM, Evergreen, Hapag Lloyd) Morton Salt (dry bulk) Shell Oil (liquid bulk) Toyota (automobile) Containerized cargo: PSA Corporation (Singapore) Hutchison Port Holdings (Hong Kong) Dubai Ports World (United Arab Emirates) APM Terminals (Netherlands, Denmark) • Railway operators • Trucking companies (motor vehicle carriers) (Union Pacific, BNSF, CSX, Norfolk Southern, CN, CP) 6 Outline 1. 2. 3. 4. 5. 6. Introduction to maritime shipping Introduction to container shipping Container vessels and shipping lines Seaports Railway container transportation / facilities Conclusion 7 Container Shipping World fleet, Feb 2004: 3167 vessels, capacity = 6.5 million 20-ft conts. (TEU) World fleet, Dec 2008: 4661 vessels, capacity = 12.1 million 20-ft conts. (TEU) Port of Long Beach 8 Port of Long Beach Container Shipping Port of Long Beach Frankfurt am Main East 9 Port of Singapore Vessels 10 Containers Contents furniture, toys, footware, clothing, auto parts, electronics, computers, bananas, pineapples, foodstuffs, meat, fish Sizes 20' x 8' x 8.5' high (TEU) 40' x 8' x 8.5' high (FEU) 45' x 8' x 8.5' high Capacity 30 tons Where are they manufactured? China Types standard dry, high cube (9.5' high) (90%) refrigerated ("reefer") (5%) other: ventilated, open top, adjustable height (5%) Quantity Global stock = 35 million (10 mill leased); 3.5 million produced in 2008 Cost New: $2000 - $20,000; lease rate $1 - $6 per day (5 year term) 11 Containers Hoisted, lowered, and secured at the corners 12 Containers Hoisted, lowered, and secured at the corners Secured aboard vessels, trains, truck chassies using (1) twist locks for securing adjacent containers in the same stack (2) lashing rods (vessels only) for securing containers in high tiers directly to the deck 13 Containers Hoisted, lowered, and secured at the corners Secured aboard vessels, trains, truck chassies using (1) twist locks for securing adjacent containers in the same stack (2) lashing rods (vessels only) for securing containers in high tiers directly to the deck 14 Containers Hoisted, lowered, and secured at the corners Secured aboard vessels, trains, truck chassies using (1) twist locks for securing adjacent containers in the same stack (2) lashing rods (vessels only) for securing containers in high tiers directly to the deck 15 Containers Hoisted, lowered, and secured at the corners Secured aboard vessels, trains, truck chassies using (1) twist locks for securing adjacent containers in the same stack (2) lashing rods (vessels only) for securing containers in high tiers directly to the deck 16 77- Unloading Unloading the the ship: ship: As As the the ship ship is is arriving, arriving, the the terminal terminal operator operator will will contact contact the the local local union union hall hall and and arrange arrange for for unionized unionized longshore longshore workers workers to to unload unload the the container container (using a giant, electric gantry crane) and place it onto a truck, a rail car or (using a giant, electric gantry crane) and place it onto a truck, a rail car or temporary temporary storage storage area area on on the the terminal terminal property. property. Unloading Unloading an an 8,000 8,000 TEU TEU ship ship takes takes about about three three days. days. •Import •Import cargo cargo generally generally starts starts at at an an overseas overseas manufacturer, supplier manufacturer, supplier or or consolidation consolidation facility. facility. •The US buyer may contact an industry •The US buyer may contact an industry professional professional known as as a a “Freight “Freight forwarder” forwarder” or or logistics logistics company. company. known 99- Radiation Radiation detection: detection: As As a a final final security security safeguard, safeguard, containers containers pass pass through through large large portals that portals that detect detect radiation. radiation. 1- Product Product Ordered: Ordered: A A typical typical import import transaction transaction starts starts 1when a a U.S. U.S. wholesaler, wholesaler, retailer retailer or or other other buyer buyer orders orders when products from from an an overseas overseas manufactures manufactures products 5- Coast Coast Guard Guard review: review: The The U.S. U.S. Coast Coast Guard Guard reviews reviews crew crew and and cargo cargo manifest manifest 5information, which which must must be be delivered delivered at at least least three three days days before before any any ship ship arrives arrives information, at U.S. shores. at U.S. shores. 88- Security Security Checks: Checks: U.S. U.S. Customs Customs officials officials conduct conduct further further analysis analysis and and determine determine which which containers containers warrant warrant further further inspection. inspection. 44- All All abroad: abroad: When When the the container container is is cleared cleared by by security security it it will will be be placed placed on on a a ship ship along along with with as as many many as as 8,000 8,000 TEU TEU (twenty-foot (twenty-foot equivalent) equivalent) containers. containers. 33- Security Security checks: checks: A A U.S. U.S. Customs Customs official official based based at at the the port port receives receives information information from from a a U.S.-based U.S.-based command command center center about about which which containers containers may may be be a a security security risk. risk. 22- To To port: port: Once Once the the product product has has been been ordered ordered and and packaged, packaged, the the buyer buyer or or freight forwarder freight forwarder will will arrange arrange for for a a local local trucking trucking company company to to move move the the container to seaport, and then for a ship to transport the container container to seaport, and then for a ship to transport the container oversea. oversea. 6- Vessel Vessel docked: docked: As As the the ship ship nears nears the the harbor harbor it it 6will be be boarded boarded by by a a port port pilot, pilot, maritime maritime specialists specialists will with expert expert knowledge knowledge of of the the harbor harbor waters. waters. with Port of Long Beach Website 17 •As •As with with imported imported goods, goods, exported exported cargo cargo may may require require several intermediate several intermediate stops stops between between the the producer producer or or manufacturer of the cargo and the Port. manufacturer of the cargo and the Port. 5- Near-dock 5Near-dock railyards: railyards: Export Export deliveries deliveries are are also also made made to to near-dock near-dock railyards, railyards, where the the cargo cargo is is picked picked up up by by truck truck for for a a short short trip trip to to the the marine marine terminal.. terminal.. where 11- Direct Direct Delivery: Delivery: In In the the most most straightforward straightforward route, route, a a single single container container from from a a local local exporting exporting company, company, produce grower or manufacturer would be delivered produce grower or manufacturer would be delivered by by truck truck directly directly to to the the marine marine terminal. terminal. 4- On-dock 4On-dock railyards: railyards: Cargo Cargo bound for for export export can can be be bound delivered by by train train directly directly to to delivered on-dock railyards, railyards, where where it it on-dock is loaded loaded onto onto an an ocean ocean is vessel. On-dock On-dock delivery delivery vessel. requires no no local local truck truck trips. trips. requires 33- Off-dock Off-dock railyards: railyards: Some Some export export cargo cargo containers containers are are delivered delivered by by train train to to off-dock off-dock railyards, railyards, where where they they are are placed placed onto onto trucks trucks for for final final delivery delivery to to marine marine terminals. terminals. 6- Vessel Vessel loading: loading: Outbound Outbound cargo cargo is is loaded loaded onto onto 6an ocean ocean vessel vessel headed headed for for an an overseas overseas port. port. an 2- Warehouse/consolidator: Warehouse/consolidator: Cargo Cargo delivered delivered from from local local or or 2nonlocal destinations destinations may may be be stored stored temporarily temporarily at at a a nonlocal warehouse or consolidated with other cargo bound for warehouse or consolidated with other cargo bound for export. Cargo Cargo may may also also be be transferred transferred from from domestic domestic truck truck export. trailers to to marine marine shipping shipping containers containers at at this this facility. facility. trailers Port of Long Beach Website 18 •From •From the the port port “of “of Long Long Beach”, Beach”, containers containers are are either either transported transported by by train train or or by by truck truck to to their their final final destination, destination, or or to to one one of of several several intermediate intermediate destinations destinations such such as as a a railyard, railyard, warehouse, warehouse, distribution distribution center, center, or “transload” facility ( a sorting, routing and short-term storage building). A container’s or “transload” facility ( a sorting, routing and short-term storage building). A container’s final final destination destination determine exactly exactly what determine what path path it it will will take take once once it it leaves leaves the the dock. dock. 2- Freight Freight forwarder: forwarder: A A container’s container’s 2movements are are determined determined by by the the movements cargo’s owner, or an industry cargo’s owner, or an industry professional known known as as a a freight freight professional forwarder or or “logistics “logistics provider”. provider”. forwarder 5- Off-dock Off-dock railyards: railyards: Off-dock Off-dock railyards railyards are are used used to to coordinate coordinate rail rail deliveries deliveries to to 5non-local destinations. destinations. Containers Containers are are delivered delivered here here by by truck, truck, then then sorted sorted and and non-local grouped by by final final destination. destination. These These railyards railyards handle handle Port Port cargo cargo as as well well as as domestic domestic grouped cargo from from other other sources. sources. cargo 44- Near-dock Near-dock railyards: railyards: Cargo Cargo is is often often transported transported by truck by truck to to larger larger “near-dock” “near-dock” railyards railyards close close to to the Port. the Port. 3- On-dock On-dock railyard: railyard: Cargo Cargo can can be be placed placed directly directly onto onto trains trains at at the the marine marine terminals’ terminals’ “on-dock” “on-dock” railyards. railyards. 3- 1- Unloading Unloading the the ship: ship: When When a a ship ship 1arrives at at the the Port, Port, the the marine marine arrives terminal operator will arrange for terminal operator will arrange for unionized longshore longshore workers workers to to unionized unload the the vessel. vessel. The The terminal terminal unload operator directs directs the the longshore longshore operator workers to to place place the the cargo cargo workers containers where where they they belong: belong: containers on trains, trucks or on terminal on trains, trucks or on terminal property for for temporary temporary storage. storage. property 77- Direct Direct delivery: delivery: In In the the simplest simplest transportation transportation plan, plan, a a single single container container imported imported by by a a company company for for its its own own use use would would be be delivered by delivered by truck truck directly directly from from the the marine marine terminal terminal to to a a local local store store or or factory. factory. 6- Transload Transload or or storage storage yard: yard: Shipping Shipping containers containers are are often often 6moved initially initially to to a a “transload” “transload” facility facility where where workers workers unload unload the the moved cargo fromthe marine container, sort it and repackage it into cargo fromthe marine container, sort it and repackage it into larger-sized truck truck trailers. trailers. The The larger larger trailers trailers are are used used to to transport transport larger-sized the cargo cargo from from the the transload transload facility facility to to regional regional distribution distribution the centers, local local stores stores or or off-dock off-dock railyards. railyards. centers, Port of Long Beach Website 19 Outline 1. 2. 3. 4. 5. 6. Introduction to maritime shipping Introduction to container shipping Container vessels and shipping lines Seaports Railway container transportation / facilities Conclusion 20 Vessels Capacity from 100 to 14,000 TEU Divided into 45’ sections called bays ship length can be from 3 to 25 bays Newbuild cost $1 million per 100 TEU capacity Speed 20 - 25 knots Fuel Marine diesel oil; efficiency ~ 500 ton-miles/gal 20 crew members captain/master, 3 deck officers, chief engineer w/ 3 assistants, radio operator, cooks, qualified members of the engine department (QMEDs), etc. Fully cellular or geared Geared vessels can unload and load themselves Itineraries are cyclical Every 4 weeks: Naples-Genoa-Barcelona-New York-Norfolk-Charleston-Naples Where are they built? Korea: Hyundai, Samsung, Daewoo, Hanjin China: Jiangsu, Shanghai, Xiamen, Dalian 21 The Shipping Line Business Ocean Carrier Country TEU deployed in 2006 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Denmark Switzerland France Taiwan Germany China China South Korea Singapore Japan Japan China (HK) Chile Japan Taiwan 1,600,012 937,145 597,677 539,801 448,840 385,368 339,545 328,327 323,319 313,049 284,848 268,502 249,885 241,772 223,192 A.P. Moller-Maersk Mediterranean Shipping Co CMA CGM Evergreen Hapag-Lloyd Cosco China Shipping Cont. Lines Hanjin American President Lines NYK Mitsui OSK Lines OOCL CSAV K Line Yang Ming 2007 Revenue (billion $) 11.8 8.8 6.5 5.3 7.4 8.2 25.8 19.4 5.2 4.1 13.3 4.1 22 The Shipping Line Business Number of Vessels Operated Mediterranean Shipping Co. Website 23 The Shipping Line Business Port to Port Freight Rates ($ per TEU, Sept 2008): Asia Æ N. America $1800 Asia Å N. America $1000 N. America N. America Æ Å Europe Æ Asia $1100 Europe Å Asia $1900 Europe $1300 Europe $1700 Mediterranean Shipping Co. Website 24 The Shipping Line Business: Planning Decisions Decision . 1. When to purchase/charter additional vessels? 2. What kind of vessels to purchase/charter? 3. When to sell/scrap old vessels? 4. Which vessels to sell/scrap? 5. Which ports should be served? 6. Which routes should be served? 7. Which vessels should be assigned to which routes? (“fleet deployment”) 8. Scheduling the vessels assigned to each route. At what times will they arrive/depart from each port in the route sequence? 9. Determine performance requirements for each vessel at each port. How fast must each vessel be served at each port it visits? 10. Negotiating vessel service agreements with seaport facilities (container terminals). 11. Hiring crew members 25 The Shipping Line Business: Operational Decisions Decision 1. What should the freight rates be? 2. When to cancel a vessel call at a port? 3. Which containers should be loaded onto which vessel? . (applies to large shipping lines or lines belonging to an alliance) 4. 5. 6. How many empty containers should be loaded onto each vessel at each port? (“empty container repositioning”) Where should individual containers be placed on the vessel? (“vessel stowage”) Assigning crew members to vessels. 26 Because Because the the United United States States imports imports more more goods goods than than it it exports, exports, many many empty empty containers containers are are sent sent overseas overseas to to be be refilled refilled with with goods. goods. Typically, Typically, about a about a third third of of the the containers containers loaded loaded onto onto a a ship ship at at the the Port Port of of Long Long Beach Beach will will be be filled filled with with cargo, cargo, while while about about two-thirds two-thirds will will be be empty. empty. 11- Delivery Delivery to to local local exporter exporter :: A A local local exporter exporter who who needs needs to to fill fill empty empty containers containers may may arrange arrange to to receive receive them them by by truck truck directly directly from from a a marine marine terminal, terminal, from from an an empty empty container container storage yard or from a local storage yard or from a local importer. importer. Direct Direct delivery delivery between between importers importers and and exporters exporters is is encouraged encouraged because because it it eliminates eliminates an an additional additional truck truck trip trip to to a a storage storage yard yard or or marine marine terminal. terminal. 4- Ocean Ocean Vessel: Vessel: Empty Empty containers containers are are 4loaded onto onto an an ocean ocean vessel, vessel, along along loaded with containers containers filled filled with with export export with goods, bound bound for for an an overseas overseas port. port. goods, 22- Empty Empty container container storage storage yard: yard: Empty Empty containers containers are are often often transported transported by by truck truck from from a a transload transload facility facility or or local local importer importer to to an an empty empty container container storage storage yard. yard. From From the the storage storage yard, yard, the the empty empty containers containers can can be be transported transported to to a a marine marine terminal terminal for for export, export, or or to to a a local local exporter exporter to to be be filled filled with with cargo. cargo. Empty containers are also Empty containers are also transported transported from from marine marine terminals terminals to to storage storage yards, yards, usually usually when when the the terminal terminal needs needs more more space space for for full, full, incoming containers. incoming containers. 3- Direct Direct Delivery: Delivery: 3The simplest simplest route route for for an an empty empty The cargo container container would would be be a a return return cargo trip to the Port from a transload trip to the Port from a transload facility or or local local importer importer after after its its facility imported goods goods had had been been imported unloaded. unloaded. Port of Long Beach Website 27 The Shipping Line Business 28 Outline 1. 2. 3. 4. 5. 6. Introduction to maritime shipping Introduction to container shipping Container vessels and shipping lines Seaports Railway container transportation / facilities Conclusion 29 Introduction to Container Terminals Aerial view of Northport's Port of Hong Kong container terminal • Unloading and loading of containerships • Temporary storage of containers Port of Singapore 30 The Container Port Business World’s Busiest Container Ports Country 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Singapore China China (HK) China South Korea Netherlands UAE Taiwan Germany China China China USA Belgium USA Singapore Shanghai Hong Kong Shenzhen Busan Rotterdam Dubai Kaohsiung Hamburg Qingdao Ningbo-Zhoushan Guangzhou Los Angeles Antwerp Long Beach Million TEU handled in 2007 27.9 26.2 24.0 21.1 13.3 10.8 10.7 10.3 9.9 9.5 9.4 9.3 8.4 8.2 7.3 Globally, 474 million TEU worth of (empty and loaded) containers were transferred between ships and shore in 2007. 31 The Container Port Business Million TEU handled in 2007 Terminal Operator Country 1. 2. 3. 4. 5. 6. China (Hong Kong) Singapore UAE China Netherlands Germany Hutchison Port Holdings PSA Corp. DP World Cosco Pacific APM Terminals HHLA 66.3 58.9 43.3 39.8 31.4 7.2 2007 Revenue (billion $) 4.9 3.0 2.7 0.1 2.5 1.9 Globally, 474 million TEU worth of (empty and loaded) containers were transferred between ships and shore in 2007. The DP World controversy began in February 2006 and rose to prominence as a national security debate in the United States. At issue was the sale of port management businesses in six major U.S. seaports to DP World, and whether such a sale would compromise 32 port security. Container Terminals import export Typically a 24-hour operation transshipment Terminal-owned equipment performs 3 kinds of tasks: 1. Unloading and loading of vessels 2. Horizontal transport of cargo 3. Container lifting & stacking Trains quay to yard Trains Vessels yard to quay Storage yard XTs Gate External trucks (XTs) On-dock rail yard 33 Land-Scarce Container Terminals 1. Rubber-tired gantry 3. Rail-mounted gantry cranes (RTGCs) cranes (RMGCs) Quay cranes (QCs) Yard trucks (YTs) 2. Gate Port of Singapore External trucks (XTs) 34 Land-Scarce Container Terminals Cargo stacked up to 7 tiers high in large “blocks” Quay cranes (QCs) 0-3 truck traffic lanes between blocks Storage density: 1000-1200 TEU per hectare Manually operated trucks and cranes No on-dock rail yard Cargo throughput: 2000-2500 TEU per meter of wharf line per year Rubber-tired gantry cranes (RTGCs) Port of Singapore 35 Land-Scarce Container Terminals 36 Port of Hong Kong Straddle Carrier-Based Container Terminals • • • • • • • Common on U.S. East Coast and in Europe Cargo stacked 3 tiers high in “lanes” that are 1 container wide Spaces between lanes very narrow Storage density: 750 TEU per hectare Manually operated straddle carriers perform operations 2 and 3 On-dock rail yard a possibility: RMGCs may be needed Cargo throughput: 1500 TEU per meter of wharf line per year 1. Quay cranes (QC) 2. 3. Straddle carriers (SCs) Port of Hamburg 37 Straddle Carrier-Based Container Terminals • • • • • • • Common on the U.S. East Coast and in Europe Cargo stacked 3 tiers high in “lanes” that are 1 container wide Spaces between lanes very narrow Storage density: 750 TEU per hectare Manual/automated straddle carriers perform operations 2 and 3 On-dock rail yard a possibility: RMGCs may be needed Cargo throughput: 1500 TEU per meter of wharf line per year 1. Quay cranes (QC) 2. 3. Straddle carriers (SCs) Port of Hamburg 38 Straddle Carrier-Based Container Terminals Port of Bremerhaven (Germany) Aerial view of Northport's container terminal 39 Straddle Carrier-Based Container Terminals Simulation of a terminal in which • SCs used in quay and storage yard areas • RMGCs used at on-dock rail yard to load trains 40 Source: HHLA website (http://hhla.de) YC/SC-Free, Ground-Based Terminals • • • • • • • 1. Common on U.S. West Coast Large forklifts called “top-handlers” and “reach-stackers” stack containers up to 4 tiers high in “blocks” Large spaces needed between blocks Storage density: 500 TEU per hectare Manually operated reach-stackers, top-handlers, side-picks, and tractor-trailers On-dock rail yard a possibility Cargo throughput: 1000 TEU per meter of wharf line per year Quay cranes (QCs) 3. Reach-stackers Top- handlers 2. Yard trucks 41 TTI/Hanjin Terminal (Seattle) Wheel-Based Container Terminals • Common on U.S. West Coast • Loaded containers sitting on trailers (chassies) parked in storage yard (stacking height = 1 tier) • Empty containers stacked up to 4 tiers high by “side-picks” • Storage density: 250 TEU per hectare • Manually operated equipment • On-dock rail yard a possibility • Cargo throughput: 500 TEU per meter of wharf line per year 1. Quay cranes (QCs) Top-handlers 3. 2. Yard trucks Side-picks On-dock rail yard Reach-stackers Global Gateway North Terminal (Seattle) 42 Automated Container Terminals I • • • • • • Ports of Rotterdam and Hamburg Cargo stacked up to 5 tiers high in large “blocks” Spaces between blocks very narrow Automated guided vehicles (AGVs) perform operation 2 Automated stacking cranes (ASCs) perform operation 3 in yard On-dock rail yard a possibility: RMGCs may be needed RMGCs 3. ASCs www.hhla.de www.hhla.de 1. QCs 2. AGVs Container Terminal Altenwerder (Hamburg) 43 Automated Container Terminals II • • • • 1. Patrick Terminal at Port of Brisbane Only automated SC-based terminal in the world Cargo stacked 2 tiers high in “lanes” Automated straddle carriers perform operations 2 and 3 Quay cranes (QC) 2. 3. Automated straddle carriers Patrick Terminal (Brisbane, Australia) 44 Other Possibilities • Straddle carriers and ASCs used in storage yard • RMGCs used in on-dock rail yard Source: HHLA website (http://hhla.de) 45 Container Terminal Characteristics Most terminals never close z z workload processed continuously: 24 hours per day, 365 days per year uneven distribution of workload over time (late vessel arrivals, cust. requests) Highly uncertain equipment processing times z z truck travel times affected by road traffic conditions inside terminal crane handling times are variable 10,000+ decisions made per day z z z z equipment dispatching, container storage location assignment, etc. decision opportunities come with no prior warning decisions made immediately, usually one at a time inter-decision time highly stochastic, avg. as low as 1 sec. Quay, yard, and gate operations highly interconnected z z bottlenecks in yard Æ late vessel departures few or no inter-equipment buffers 46 Measures of Terminal Performance Gross crane rate (GCR) z z Also known as the quay crane work rate Avg. # QC lifts made per QC hour beside a vessel that is being worked Average vessel turnaround time z z Avg. time it takes to fully process a vessel From time of berthing to time of un-berthing Average external truck (XT) turnaround time z z z Avg. time it takes for external truck to be serviced at the terminal Drop-off or pick-up From time of gate entry to time of gate departure Ability to keep vessels and trains on schedule z z Consistency in performance more important than maximizing avg. performance Another goal: keep operations on-time at minimum cost Cost per TEU moved between ship and shore z USD $150 at U.S. ports 47 Container Terminal Planning and Design Decision 1. Where should the terminal be located? 2. What kind of cargo will be handled (import, export, transshipment)? 3. What is the planned throughput capacity? 4. How much cargo storage capacity is needed in the yard? 5. Will there be an on-dock rail yard? A large empty container yard? 6. How much land area will the terminal occupy? What is its shape? 7. What type of container handling equipment will be used? Specs? 8. How many work shifts will there be per day? 9. Should the yard layout be parallel or perpendicular? 10. How many storage blocks should there be? What are their dimensions? 11. How many vehicle lanes should there be between the blocks? 12. How much equipment should be deployed on an average day? Yard Trucks (YTs) Quay Cranes (QCs) Yard Cranes (YCs) unloading Vessels loading Yard 48 . Design Issue #7: Equipment Selection and Specification 2. Yard Equipment Type 1. 2. Tractor-trailers (YTs) Automated guided vehicles (AGVs) 3. 4. 5. 6. 7. 8. 9. Rubber-tired gantry cranes (RTGCs) Rail-mounted gantry cranes (RMGCs) Automated stacking cranes (ASCs) Bridge cranes Top-handlers Reach-stackers Side-picks 10. Straddle carriers (SCs) 11. Shuttle carriers 12. Automated lifting vehicles (ALVs) 3. Horizontal Transport 3. Lifting Stacking X X X X X X X X X X X X X X X X X X X X X X X 49 Specification issues for Quay Cranes container-terminal of Bremerhaven Port of Long Beach Single trolley quay crane handles one cont. at a time 50 QC Issue A: The Double Trolley Quay Crane 51 The Double Trolley Quay Crane www.hhla.de Double Trolley QCs and Straddle Carriers at Port of Hamburg 52 QC Issue B: Twin-lift (two 20’ conts) and tandem (two 40’ conts) spreaders 53 Design Issue #10.1: Block Width What is the optimal width for the storage blocks? (storage capacity is unchanged) 54 Block Width: Tradeoffs 3 rows per block (10 zones) 5 rows per block (6 zones) ? 6 rows per block (5 zones) 10 rows per block (3 zones) 55 From: M.E.H. Petering, “Effect of block width and storage yard layout on marine container terminal performance,” Transportation Research E, doi: 10.1016/j.tre.2008.11.004, accepted Nov 2008. Block Width: Results Most Oblong Gross crane rate (QC lifts/hr) 33 28 Less equip More equip 23 18 Group 5: scenario 11 38 Gross crane rate (QC lifts/hr) Group 2: scenarios 3-4 38 13 33 28 Less equip More equip 23 18 13 1 3 5 7 9 11 13 15 1 3 Rows per block (block width) 5 Group 3: scenarios 5-7 11 13 15 38 33 28 Less equip More equip 23 18 Gross crane rate (QC lifts/hr) Gross crane rate (QC lifts/hr) 9 Group 6: scenario 12 38 13 33 28 Less equip More equip 23 18 13 1 3 5 7 9 11 13 15 1 3 Rows per block (block width) 5 7 9 11 13 15 Rows per block (block width) Group 4: scenarios 8-10 Most Square Group 7: scenarios 13-14 38 33 28 Less equip More equip 23 18 13 Gross crane rate (QC lifts/hr) 38 Gross crane rate (QC lifts/hr) 7 Rows per block (block width) 33 28 Less equip More equip 23 18 13 1 3 5 7 9 11 Rows per block (block width) 13 15 1 3 5 7 9 11 Rows per block (block width) 13 15 56 Design Issue #10.2: Block Length What is the optimal length for the storage blocks? (storage capacity is unchanged) 57 Block Length: Tradeoffs Longer blocks Fewer vertical traffic lanes Less land area More congestion Shorter blocks More vertical traffic lanes More land area Less congestion 58 Design Issue #11: Vehicle Lanes 59 Container Terminal Operations Management Decision 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Frequency (decs/day) Allocation of berths to arriving vessels 000010 Allocation of QCs to docked vessels 000010 QC scheduling and job sequencing 10 (off-line) or 10,000 (real-time) Container storage location assignment 010,000 Container retrieval location assignment 010,000 YC job assignment 010,000 Inter-zone YC deployment 010,000 YT job assignment 010,000 YT routing 100,000 Selecting appointment times for external trucks 010,000 Quay Cranes (QCs) Yard Trucks (YTs) Land-scarce terminal: Yard Cranes (YCs) unloading Vessels loading Yard 60 Terminal Manager’s Goal: Find solutions for operations management (OM) issues that (1) are viable in a real-time setting (2) maximize performance (e.g. gross crane rate) GCR = total # QC lifts made total hours of QC time beside a busy berth 61 Terminal Operating System (TOS) storage YC YC YT locations disp deploy disp TOS deciding next activity for a particular QC/YC/YT/container To be viable, a TOS must: Use less than 1 second of CPU time per decision on 100% of occasions Avoid deadlocks on 100% of occasions TOS receiving input: - QC/YC/YT task completed - Vessel arrives (new jobs added to system) TOS is idle - XT arrives (new job added to system) TOS manipulating data internally 62 OM Issues #1 and #2: Terminal, Berth, and Quay Crane Allocation to Arriving Vessels Where should an arriving vessel be berthed? (Which terminal, which berth?) Which quay cranes should work on the vessel? 63 Terminal, Berth, and Quay Crane Allocation: A Multi-objective Problem Objectives: (1) Minimize vessel turnaround times (2) Maximize berth utilization and terminal throughput (3) Maximize satisfaction of customer shipping lines (4) Minimize cost (labor and equipment used) when processing vessels (5) Maximize efficiency of vessel-to-vessel transshipment operations Constraints: • Water depth • Berth and vessel lengths • Quay crane availability and specs • Vessel schedules • Transshipment requests 64 OM Issue #3: QC Scheduling and Job Sequencing Once a vessel is secured alongside the terminal, (A) Which containers are moved by which QC? (B) What is the sequence of moves for each QC? Objectives: • Minimize vessel turnaround time • Unload “hot” containers quickly • Minimize cost of unloading and loading vessel 65 OM Issue #3: QC Scheduling and Job Sequencing Constraints: 1. Ship balance must be maintained 2. Stress on vessel may not exceed certain limits 3. Precedence constraints due to container stacks 4. QCs must remain a minimum distance apart to avoid collisions 5. Visibility: crane operators must be able to easily see containers 6. Stability of above-deck stacks: no “chimneys” (stacks jutting out vertically by more than 2 tiers) 66 OM Issue #3: QC Scheduling and Job Sequencing Further complexity: 1. Some cargo booked for a vessel arrives after loading has begun 2. Cranes may work at different speeds 3. Not all container moves are loads or unloads—there are also repositioning moves! 67 QC Scheduling: Current Practice Perform a Crane Split: (a set partitioning problem) • Vessel bays are partitioned into contiguous areas • Each area is served by one crane • Partitioning done so that the time when last QC finishes is minimized • Each QC works the bays in its area from L to R 68 QC Scheduling: The Crane Split (Equal Crane Speeds) 69 QC Scheduling: The Crane Split (Unequal Crane Speeds) Containers to be moved Time required (min) Bay # Unloading Loading Total QC1 QC2 QC3 QC4 2 15 19 34 82 102 102 136 3 9 8 17 41 51 51 68 4 66 52 118 283 354 354 472 7 35 35 70 168 210 210 280 10 26 24 50 120 150 150 200 11 40 43 83 199 249 249 332 14 72 76 148 355 444 444 592 18 55 45 100 240 300 300 400 Total 318 302 620 70 QC Scheduling: The Crane Split (Unequal Crane Speeds) Optimal solution: 574 minutes is the minimum vessel turnaround time Containers to be moved Bay # Unloading Loading 2 15 3 9 4 Time required (min) Total QC1 QC2 QC3 QC4 19 34 82 102 102 136 8 17 41 51 51 68 66 52 118 283 354 354 472 7 35 35 70 168 210 210 280 10 26 24 50 120 150 150 200 11 40 43 83 199 249 249 332 14 72 76 148 355 444 444 592 18 55 45 100 240 300 300 400 Total 318 302 620 574 399 444 400 71 Yard Control Issues ? ? Quay crane: 1 2 ? ? 3 4 ? 5 6 7 8 9 Vessel 2 Vessel 3 Vessel 1 ? ? ? Bk 2 1 Zone 1 3 10 9 11 Bk 8 13 15 17 16 Bk 11 20 21 ? 22 ? 12 Bk 9 14 Bk 10 6 Bk 6 8 Bk 7 Zone 3 Zone 4 5 4 Bk 5 7 ? Bk 3 2 Bk 4 Zone 2 ? ? ? ? ? Block 1 18 19 Bk 12 23 24 ? ? ? ? ? cross-gantry Yard Crane Yard Truck linear gantry 72 ? OM Issue #4: Selection of Cargo Storage Locations Where should containers be placed in the yard upon their arrival? (e.g. after being unloaded from a vessel) 73 Container Storage Strategies I. Re-marshalling strategy • II. Containers have multiple places of rest “Sort and store” strategy • • Containers have a single place of rest Containers stored based on attributes (e.g. length, height, weight class, loading vessel, destination port) • • Containers with similar attributes stored in same stack Two versions: 1) Storage locations determined off-line in advance 2) Storage locations determined in real-time immediately after container is discharged 74 Container Storage: Competing Objectives Possible objectives to pursue 1. Minimize container travel distance 2. Minimize congestion in vicinity of storage locations 3. Minimize number of times each container is touched Not all objectives can be pursued simultaneously. Thus, managers need to determine which objectives are most important!! This is not easy! 75 OM Issue #5: Container Retrieval Location Assignment stack in the yard, among those which are eligible, ? Which should provide the container(s) loaded by a QC ? Quay crane: 1 2 3 4 5 6 7 8 9 Vessel 2 Vessel 3 Vessel 1 ? Block 1 1 Zone 1 Bk 3 3 10 9 Bk 8 Zone 3 13 15 21 12 17 16 Bk 11 20 11 Bk 9 14 Bk 10 6 Bk 6 8 7 5 4 Bk 5 Bk 7 Zone 4 ? ? 2 Bk 4 Zone 2 ? Bk 2 22 18 19 Bk 12 23 24 76 OM Issue #6: Yard Crane Job Assignment ? (1) When a YC becomes free, which YT does it serve next? Vessel 2 Vessel 3 Vessel 1 Block 1 Bk 2 1 Zone 1 Bk 3 2 3 Bk 4 Bk 5 Zone 2 10 9 Bk 7 Bk 8 Zone 3 13 15 12 17 16 Bk 11 20 11 Bk 9 14 Bk 10 Zone 4 6 Bk 6 8 7 5 4 Bk 12 22 21 18 19 23 24 ? (2) How to avoid deadlocks when YCs are working in close proximity and containers halfway between them need to be moved? ? ? ? ? 77 OM Issue #8: YT Job Assignment ? (1) When a YT becomes free, what should it do next? (2) When to carry two 20’ containers? (3) Should YTs be pooled at the QC, vessel, or terminal level? Pending QC jobs QC: 1 2 3 4 5 6 7 8 9 Vessel 2 Vessel 3 Vessel 1 Zone 1 Zone 2 Q1:24U Q2:22U Q3:25U Block 1 Q4:89L Q5:89L Q6:88L Q7:90L Q9:71U BkQ8:75U 3 Q1:25U Q2:23U Q3:26U 1 2 Q1:26U Q2:24U Q3:27U Q4:90L Q5:90L Q6:89L Q7:91L 4 3 Q6:90L Q7:92L Q4:91L Q5:91L Q8:76U Q9:72U 5 Q8:77U Q9:73U Q2:25U Q3:28U Bk Q1:27U 4 Q4:92L Bk 5 Q5:92L Q6:91L Q7:93L Q9:74U BkQ8:78U 6 ... 7 ... 8 Bk 2 ... ... Bk 7 Zone 3 Zone 4 9 ... ... 10 Bk 8 13 QCBkjobs 10 already assigned20 to YTs ... 15 22 ? ... 17 16 Bk 11 ? 11 12 Bk 9 14 21 ... 6 18 19 Bk 12 23 24 78 OM Issue #10: Appointment System for External Trucks What kind of truck appointment system best serves the interests of the terminal, trucking industry, neighboring community, and environment? What should the appointment date and time be for a specific truck? 79 Global Gateway North Terminal, Seattle OM Issue #10: XT Appointment System Appointment system should: • automatically generate appointment times for customers who call the terminal or log onto the internet • determine the number of appointments to be made for a given region of the container yard for a given time period • minimize average truck service time at the terminal • minimize truck congestion overflow into local highway system • maximize gate throughput • enhance yard and vessel operations in the container terminal 80 Other Container Terminal Issues Issue 1. 2. 3. 4. 5. 6. 7. 8. 9. . Labor (union or non-union) Container identification and tracking (OCR, RFID) Equipment identification and tracking (GPS, local radar, RFID) Customs Security (scanning equipment, manual inspections) Negotiating service agreements with shipping lines Negotiating lease rates with public municipalities Purchasing/developing a terminal operating system (TOS) Tactical issues: when to purchase more equipment (QCs, YCs, YTs) Quay Cranes (QCs) Yard Trucks (YTs) Yard Cranes (YCs) unloading Vessels loading Yard 81 Outline 1. 2. 3. 4. 5. 6. Introduction to maritime shipping Introduction to container shipping Container vessels and shipping lines Seaports Railway container transportation / facilities Conclusion 82 Railway Container Transportation 83 Railway Container Transportation North American Railway Operator Country TEU moved in 2007 1. 2. 3. 4. 5. 6. 7. USA USA USA USA Canada Canada USA 5,065,005 3,453,000 3,120,000 2,111,000 1,324,000 1,238,100 526,370 BNSF Union Pacific Norfolk Southern CSX Corp. Canadian National Canadian Pacific Kansas City Southern 2007 Revenue (billion $) 84 Railway Container Transportation BNSF Intermodal Network 85 Railway Container Transportation Union Pacific’s intermodal lanes, 2009 86 Railway Container Transportation 87 Union Pacific Intermodal Network, 2008 Inland (Rail) Container Terminals • Transferring containers between trains and trucks • Unloading and loading of intermodal trains • Temporary storage of containers Port of Long Beach Frankfurt am Main East Rochelle, Illinois 88 Outline 1. 2. 3. 4. 5. 6. Introduction to maritime shipping Introduction to container shipping Container vessels and shipping lines Seaports Railway container transportation / facilities Conclusion 89 Containerization Impact on Cities Container shipping supplies cities and their inhabitants with finished consumer goods Chicago: inland container shipping hub of the USA Milwaukee: CP “Canadian Pacific” rail facility at the Port of Milwaukee Congestion Pollution Maritime shipping constitutes 4.5% of global CO2 emissions 90 Containerization Impact on Cities Inspired architectural innovation 91 Literature on Container Terminal Ops. ¾Briskorn, D., Drexl, A. and Hartmann, S. (2006) “Inventory-based dispatching of automated guided vehicles on container terminals.” OR Spectrum, 28, 611-630. ¾Dekker, R., P. Voogd, van Asperen, E. (2006). "Advanced methods for container stacking." OR Spectrum V28(4). ¾Grunow, M., Günther, H.-O. and Lehmann, M. (2004). “Dispatching multi-load AGVs in highly automated seaport container terminals.” OR Spectrum, 26, 211-235. ¾Grunow, M., Günther, H.-O. and Lehmann, M. (2006). “Strategies for dispatching AGVs at automated seaport container terminals.” OR Spectrum, 28, 587-610 ¾Hussein, M. (2010). “Efficient container handling systems and crane scheduling algorithms for seaport container terminal”. Industrial and Manufacturing Engineering Department. University of Wisconsin-Milwaukee ¾Kim, K. H., and Bae, J. W. (2004). "A Look-Ahead Dispatching Method for Automated Guided Vehicles in Automated Port Container Terminals." Transportation Science, 38(2), 224-234. ¾Kim, K. H., and Bae, J. W. (1998). "Re-marshaling export containers in port container terminals." Computers & Industrial Engineering, 35(3-4), 655-658. ¾Kim, K. H., Jeon, S. M., and Ryu, K. R. (2006). "Deadlock prevention for automated guided vehicles in automated container terminals." OR Spectrum, V28(4), 659-679. ¾Kim, K. H., Kang, J. S., and Ryu, K. R. (2004). "A beam search algorithm for the load sequencing of outbound containers in port container terminals." OR Spectrum, V26(1), 93-116. ¾Kim, K. H., and Kim, H. B. (1998). "The optimal determination of the space requirement and the number of transfer cranes for import containers." Computers & Industrial Engineering, 35(3-4), 427-430. ¾Kim, K. H., and Kim, H. B. (2002). "The optimal sizing of the storage space and handling facilities for import containers." Transportation Research Part B: Methodological, 36(9), 821-835. ¾Kim, K. H., and Kim, H. B. (1999). "Segregating space allocation models for container inventories in port container terminals." International Journal of Production Economics, 59(1-3), 415-423. ¾Murty, K. G., J. Liu, et al. (2005). "A decision support system for operations in a container terminal." Decision ¾Murty, K. G., Y.-W. Wan, et al. (2005). "Hongkong International Terminals gains elastic capacity using a data-i ¾Petering, M. E. H. (2009). “Effect of block width and storage yard layout on marine container terminal performa ¾Stahlbock, R. and Voß, S. (2008) “Operations research at container terminals: a literature update.” OR Spectrum, 30, 1-52. ¾Steenken, D., Voß, S. and Stahlbock, R. (2004) “Container terminal operation and operations research - a classification and literature review.” OR Spectrum, 26, 3-49. ¾Vis, I. F. A. and de Koster, R. (2003). “Transshipment of containers at a container terminal: an overview.” European 92 Journal of Operational Research, 147, 1-16. Acknowledgment Editor : Mazen I. Hussein, Industrial and Manufacturing Engineering Department, University of Wisconsin-Milwaukee. Grateful acknowledgment is herewith made for the cooperation and permission to us the materials and photos from the following personnel/websites/institutes: Alex Klein / www.renaissanceronin.wordpress.com American President Lines Ltd / www.apl.com Burlington Northern Santa Fe Railway / www.bnsf.com Center for Disease Control and Prevention / www.cdc.gov containershipping.nl / www.containershipping.nl Danny Cornelissen-Maritime Photographer/ www.portpictures.nl FRANCETRUCK / og@francetruck.com Great Lakes St. Lawrence Seaway System / www.greatlakes-seaway.com Hamburger Hafen und Logistik AG / www.hhla.de Hapag-Lloyd / www.hapag-lloyd.com KOCKS / www.kockskrane.de Mediterranean Shipping Company MSC / www.mscgva.ch merriam-webster / www.visualdictionaryonline.com Port of Brisbane Pty Ltd / www.portbris.com.au Port of Long Beach/ www.polb.com/default.asp Robert West – Milwaukee School of Engineering / westr@msoe.edu Swedish Timars group / www.timars.se VDL Containersystemen / www.vdlcontainersystemen.com Webmaster / www.infovisual.info Wikimedia Wikipedia Union Pacific / www.up.com 93 The End! 94