Optimal slot allocation with empty container reposition problem for Asia ocean carriers

Abstract

This paper utilises revenue management modelling to make an optimal slot allocation serving a specific shipping service route for ocean carriers. The model, incorporating the expected cost of empty container reposition, is formulated through mathematical programming to maximise operational profit of ocean carriers, subject to some constraints of vessel capacity, container demand and empty container supply. Computational results not only present port-to-port slot allocation to be a guideline to implement space control but also provide a criterion to review the status of strategic alliance among ocean carriers.