Network design in barge shipping
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1 Network design in barge shipping Peter de Langen Eindhoven University of Technology & Port of Rotterdam Authority Rivers of the World, Rotterdam, 2010
2 Why is network design in (container) barge shipping so important Container barge shipping is scheduled The design of the service network defines the value proposition of barge shipping Frequency Transit time Slot costs Most networks in barge shipping are point-point But there seem to be two parallel developments Increased competition for role in design of networks A movement towards more complex network structures
3 Not further specified Customer specific Scheduled network Container shipping Warehousing Repacking etc (Re)design supply chain Manage supply chain Design door-to-door transport chain Container rail transport Shipper Container barge transport Forwarders ICT systems etc, Not further specified Logistics Freight transport Container road transport Sell scheduled Sell scheduled Sell scheduled Sell scheduled Design scheduled Shipping line Design scheduled Design scheduled Design scheduled Loading & unloading Manage scheduled Storage TOC Movement of shipments Loading & unloading Manage scheduled Storage Movement of shipments ILT Loading & unloading Manage scheduled Storage Movement of shipments Barge operators Loading & unloading Manage scheduled Storage Movement of shipments access transport equip. load unit access transport equip. load unit access transport equip. load unit access transport equip. load unit Terminal sites Logistics zones Port authority Terminal sites Logistics zones Terminal sites Logistics zones Terminal sites Logistics zones
4 Impact of activity/business model on intermodal sevice design Table 1: Impact of business model on design of barge services Firm Barge operators Forwarders Shippers Deepsea terminal operators Inland terminal operators Road transport companies Shipping lines Port authorities Impact of business model on design of barge services Focus on efficient utilization of barges Focus on optimizing flows managed by forwarder Focus on specific supply chain optimization Focus on improving terminal efficiency Focus on service quality of inland terminal Focus on optimizing mix of trucks & barges Focus on container repositioning issues Focus on modal shift to alleviate road congestion
5 Towards ILT-ILT services? Example: Wuhan-Venlo or Chicago-Duisburg Differs from port-port product and door-door product Possible advantages: Door-to-door Port-to-port ILT-ILT Repositioning OK Problematic OK Integrated Yes No Yes intermodal product Aligned with BM No Yes Yes forwarder Aligned with BM shipper Yes Limited Yes NB: preliminary assessment PAGE 4
6 Why a move towards more complex networks (often with a kind of Hub & Spoke structure) Volume increases in network (+ growth expectations) Time vessels spend in port >50% of total journey time Larger call sizes of ships Strategies of various firms (shipping lines, TOCs) to Strategies of various firms (shipping lines, TOCs) to develop hinterland networks
7 Feasibility of H&S related to ship size & distance to terminal PAGE 6
8 Container re-use is key-issue for feasibility, and this depends on import/export balance 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% 0,1-1,0% 0,2 0,3 0,4 0,5-2,0% R e-us e fractio n of empty c ontainers 10% 20% 50% 80% 90% PAGE 7
9 H&S can reduce costs of TOC 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% Reduct ion total quay oc cupancy F ull po int-point service P artial po int-point serv ice N o po int-point service PAGE 8
10 Conclusions Design of barge services of increasing importance in barge shipping Companies may need to further develop capabilities for network design, in partnership First mover advantages may be substantial More complex (H&S) structures are likely to develop
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