Profits comparison between alliance mode and non-alliance mode of empty containers repositioning of liner companies

Abstract

Alliance and non-alliance modes are the typical decision-making problem of strategy layer. Upper layer decision will have direct impact on the lower two layers: tactical layer and operational layer. Empty container repositioning mechanism must be keep synchronous operation according to the upper two layers. To quantitative analyse the impact of two modes of strategy layer, we have built the optimization models of empty containers repositioning according to the actual business flow. Two simulation cases have been designed to solve the models. The experimental data show that under alliance it can reduce various costs dramatically and improve the profits contrast to the non-alliance. The results validate the proposed standpoint: alliance mode is feasible for different company sizes. All companies in consolidation can obtain win–win. Furthermore, the reduced various costs such as transportation cost also mean lower greenhouse gas emissions, which is importance to keep sustainable development for the earth.

Keywords

• Empty container repositioning
• alliance and non-alliance mode
• optimization model
• business flow
• unbalanced trade