Liner shipping networks are the backbone of international trade providing low transportation cost, which is a major driver of globalization. These networks are under constant pressure to deliver capacity, cost eectiveness and environmentally conscious transport solutions. This article proposes a new path based MIP model for the Liner shipping Network Design Problem minimizing the cost of vessels and their fuel consumption facilitating a green network. The proposed model reduces problem size using a novel aggregation of demands. A decomposition method enabling delayed column generation is presented. The subproblems have similar structure to Vehicle Routing Problems, which can be solved using dynamic programming. An algorithm has been implemented for this model, unfortunately with discouraging results due to the structure of the subproblem and the lack of proper dominance criteria in the labeling algorithm.
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Dtu Management Engineering Report
Department of Management Engineering, Technical University of Denmark, 2012