Shipping industry planning, optimization & scheduling


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Shipping industry planning, optimization & scheduling

  1. 1. Shipping – Planning, Optimization & Scheduling Private & Confidential
  2. 2. Table of Contents• Shipping Industry Operations – An Overview• Industry Challenges• Solution Framework Private & Confidential 2
  3. 3. Shipping Industry Operations – An Overview90 % of international trade take place by sea route, and through outthis maritime transport costs remain very competitiveBulk Shipping Sector – Engaged mainly in shipping of raw materials such as oil,core, iron ore and grains• Service requires a minimal infrastructures and resembles taxi services, hence contractual agreement in between cargo owner and ship owner• Some time these are Industrial shipping, where it resembles owning a cab.• Ship used here is called charter• Dry/Liquid bulk cargo is shipped either full/empty.• Tramp and Industrial Shipping which operates schedules in response to actual demandLiner Shipping Sector – Engaged mainly in transportation of semi finished orfinished products such as computers, textiles and manufacturing output, all ofgoods are containerized• It resembles public transport system like bus or train• Cargo carried by liners are also referred as general cargo• Hub and Spoke models are also followed here with so many transshipment hub in long hauls• liner shipping is based on a fixed schedule which is generally published up to six months into the future• Liner carriers does alliance with each other in cross territories, resulting in scaling up their global reach, can have more frequent services, reduction in transit time, reduce slot cost, better negotiate with terminal operator, CFS/ICD and transportation carrier.• Container Shipping lines secures dedicated capacity at strategic location Private & Confidential Source:
  4. 4. Shipping Industry Challenges• Industry is highly competitive with prices (freight rates) Freight fluctuating widely even in the course of single week in Bulk Fluctuation Transportation• Modeling of demand and supply function and freight rate Last Mile forecasting are the critical challenges Movement• Repositioning of empting containers, incur significant cost, Repositioning optimization could improve bottom line by 30-50 %• On certain routes more cargo moves on in one direction – Vessel Capacity Scheduling & load imbalance Routing• Liner scheduling and cargo routing are the core challenges Demand• Optimal scheduling strategy including cruising speed and quay Hub Locations Forecast crane dispatching decisions• Determining optimal vessel capacity , minimizing last mile movement and selecting the port that offers better nautical Load Imbalance accessibility• Trade of hub-feeder options versus direct call option• Coping up the schedule time window at main hub ports with the time window of pre-arranged joint service routes, feeder services and rail services• Location and selection of optimal hub locations Private & Confidential
  5. 5. Liner Planning, Optimization & Scheduling FrameworkDATA INPUT DECISION VARIABLES STRATEGIC PLANNING •No of ships on a routeCargo Transaction Data •Size of the ship (capacity – small or large)  (Long-term) acquireCargo Forecasting •Service delivery requirements – voyage speed, resources destination port  Determine fleet sizeRoutes Data •Deployment of ships and containers and mix •Fleet of empty containers – Buy or Lease?Capacity Data •Fuel buying decision TACTICAL PLANNINGFueling Locations  (Medium-term)Container Procurement service networkStrategy design – frequency of Optimization & routes, port selection,PRIMARY ANALYSIS Scheduling Engine port rotation etc.Route-Traffic Analysis  Assign ships to routesShipment Analysis CONSTRAINTS OPERATIONAL PLANNINGTransshipment Analysis •Time window for birthing at the individual ports •Physical restriction caused by harbors or canals  (Short-term) day-to-Time Series Analysis •Maximum duration day cargo selection, •Local or international regulatory restrictionsGeographical Analysis routing & scheduling •Capacity limitations of individual vessels services Private & Confidential