LALITH EDIRISINGHEA.W. WIJERATNE

JIN ZHIHONG 04/15/23 1

PreambleContainer imbalance represents 22% of the

overall cost structure of containersHalf the time of container lifetime is idle as

they are either being maintained, repaired or in storage

The paper identifies 22 strategies to maximize container utilization under five categories namely, Pricing; Forecasting; Operations; Collaboration; and Customer care

It evaluates 12 factors that potentially influence container inventory management strategies of carriers

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Striking a optimum balance between the customer demand for carriage and supply of containers is the key for optimizing the utilization of containers

The Approach

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Six factors to consider in optimizing empty container logistics

1. Trade imbalances 2. Type of equipment3. Ratio between carrier own containers and leased 4. Optimal leasing arrangement category (if containers

are leased)5. Availability of new containers for purchase6. Optimal repositioning routes, special repositioning

tariffs and storage tariffs -Karmalic, et al.,(2012)

The “box to slot” ratio is 2-to-1 -Weinschenk, (2012)

External container sharing is a strategic option -Song & Carter (2009)

Literature Review

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An exploratory study - A process flow chart was designed to identify

critical areas that needs vertical investigations

An opinion survey- 105 shipping lines(those of imbalance higher

than 50 TEUs in 2013) Questionnaires

were used as the method of collection of data through online, mail, and interviews

Methodology

Research ObjectivesPrimary Objective: Assess the strategies

that lead to optimization of utilization of containers

Other Objectives:Identify existing strategies (19) and

propose new strategies (03)Define key categories (02) and identify

factors (12) that potentially influence above strategies

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Conceptualization Strategies to Optimize the Utilization of Containers

___ Existing - - - Proposed

Conceptualization cont…

Categories of Strategies (05)

Strategies (22) Categories of factors that influence the strategies (02)

Factors that influence the strategies (12)

Pricing Swopping 2x20’ with 40’Substitute 20’ with 40’Freight drop for ImportFreight drop for ExportFreight increase -ImportFreight increase-ExportEmpty Repo Surcharge

Marketing Customer attritionBrand nameSustainability

Forecast Forecast DependenceService AgreementsPenalizing agentsForecast accuracySynchronized budget

Revenue Cancellation of bookingsSlot costPort Handing CostCFS Rent CFS Handling CostContainer ROI expectationWear &TearUtilization MaximizationUnderutilization of Vessels

Operational Container hiringRound voyage Repo.

Customer care Agile inventoryLean inventory Priority for ImportsPriority for ExportsSeasonal demands

Collaboration AllianceInterchangeFree slot

Analysis

The Ordinal Logistic Regression and Linear Regression were used

Assumption X =ƒ (Z)Container Inventory Management Strategies

used by Shipping Lines =XFactors that determines those strategies =Z

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Results and Conclusions 1

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Results and Conclusions 2

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Results and Conclusions 3

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Results and Conclusions 4

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Results and Conclusions 5

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