1. Ship Routing Problem Morteza Ahmadi 8425024 In The Name Of Allah

2. Preface Maritime Transportation Planning : Strategic Planning Strategic Planning Tactical Planning Tactical Planning Operational Planning Operational Planning

3. Strategic planning Market and trade selection Market and trade selection Ship design Ship design Network and transportation system design Network and transportation system design Fleet size and mix decisions Fleet size and mix decisions Port, terminal location, size, and design Port, terminal location, size, and design

4. Tactical planning Adjustments to fleet size and mix, Adjustments to fleet size and mix, Fleet deployment Fleet deployment Ship routing and scheduling, Ship routing and scheduling, Inventory ship routing, Inventory ship routing, Berth scheduling, Berth scheduling, Crane scheduling, Crane scheduling, Container yard management, Container yard management, Container stowage planning, Container stowage planning, Ship management, and Ship management, and Distribution of empty containers Distribution of empty containers

5. Operational Planning Cruising speed selection Cruising speed selection Ship loading Ship loading Environmental routing Environmental routing

6. Definition Ship routing : the assignment of a sequence of ports to a vessel Ship routing : the assignment of a sequence of ports to a vessel Weather routing : the determination of the best path in a body of water that a vessel should follow Weather routing : the determination of the best path in a body of water that a vessel should follow

7. Types of Maritime Routes Port-to-port (oil and minerals) Port-to-port (oil and minerals) Pendulum (containerized cargo) Pendulum (containerized cargo) Round-the-world (containerized cargo) Round-the-world (containerized cargo)

8. Ship Routing & Scheduling Classifications Liner Shipping : Liners operate according to a published itinerary and schedule similar to a bus line Liner Shipping : Liners operate according to a published itinerary and schedule similar to a bus line Tramp shipping : Tramp ships follow the available cargoes, similar to a taxicab Tramp shipping : Tramp ships follow the available cargoes, similar to a taxicab Industrial shipping : Industrial operators usually own the cargoes shipped and control the vessels used to ship them Industrial shipping : Industrial operators usually own the cargoes shipped and control the vessels used to ship them

9. Ship Routing & Scheduling Classifications Fleet sizing Fleet sizing Inventory routing Inventory routing Optimal cruising speed Optimal cruising speed Ship scheduling Ship scheduling

10. Ship Routing & Scheduling Classifications Ship routing Ship routing Ship routing and scheduling Ship routing and scheduling Inventory routing Inventory routing Combined models Combined models

11. Liner Ship Routing Liner shipping is quite different from those of tramp or industrial Liner shipping is quite different from those of tramp or industrial Its published route attracts demand Its published route attracts demand The major challenges for liners at the strategic level are the design of liner routes The major challenges for liners at the strategic level are the design of liner routes

12. Liner Ship Routing Traditional Traditional Hub And Scope Hub And Scope

13. Traditional Liner Ship Routing Definition Problem consists of designing a route for each ship in a manner that maximizes the total net revenue of the fleet Problem consists of designing a route for each ship in a manner that maximizes the total net revenue of the fleet The demands, as upper bounds on the number of transported containers, are given between all pairs of ports The demands, as upper bounds on the number of transported containers, are given between all pairs of ports The fleet of ships is heterogeneous The fleet of ships is heterogeneous

14. Traditional Liner Ship Routing Review a simple model Review a simple model

15. Traditional Liner Ship Routing Problem Literature : Rana and Vickson 1991 Rana and Vickson 1991 Solution: Bender’s decomposition Solution: Bender’s decomposition Hersh and Ladany 1989 Hersh and Ladany 1989

16. Hub And Spoke In such systems we have a trunk line operating between the major ports (hubs) and a system of feeder ships working in the geographical region around each hub port visited by the trunk line. In such systems we have a trunk line operating between the major ports (hubs) and a system of feeder ships working in the geographical region around each hub port visited by the trunk line.

17. Hub And Spoke Routing Goal : Choosing which of a possible huge set of predefined routes to use and how many voyages to sail along the chosen routes while maximizing the net revenue Goal : Choosing which of a possible huge set of predefined routes to use and how many voyages to sail along the chosen routes while maximizing the net revenue

18. Hub And Spoke Review a simple model : Review a simple model :

19. Hub And Spoke Problem Literature : Bendall and Stent (2001) Bendall and Stent (2001) Solved by An integer programming software Solved by An integer programming software

20. Tramp And Industrial Ship Routing During the last decades there has been a shift from industrial to tramp shipping During the last decades there has been a shift from industrial to tramp shipping Many cargo owners are now focusing on their core business and have outsourced other activities Many cargo owners are now focusing on their core business and have outsourced other activities Most contributions in the OR literature are for industrial shipping Most contributions in the OR literature are for industrial shipping

21. Tramp And Industrial Ship Routing Full Shiploads : Full Shiploads : The ship is loaded to its capacity in a loading port and the cargo is transported directly to its unloading port. A typical example is the transportation of crude oil. (Industrial shipping) The ship is loaded to its capacity in a loading port and the cargo is transported directly to its unloading port. A typical example is the transportation of crude oil. (Industrial shipping) Multiple Cargoes With Fixed cargo size : Multiple Cargoes With Fixed cargo size : Several cargoes are allowed to be onboard the ship at the same time. (Industrial shipping) Several cargoes are allowed to be onboard the ship at the same time. (Industrial shipping) Goal : To minimize the sum of the costs for all the ships while ensuring that all cargoes are lifted from their loading ports to their unloading ports Goal : To minimize the sum of the costs for all the ships while ensuring that all cargoes are lifted from their loading ports to their unloading ports

22. Tramp And Industrial Ship Routing Multiple cargoes with flexible cargo size Multiple cargoes with flexible cargo size The cargo quantity is given in an interval and the shipping company can choose the actual load quantity that best fits its fleet and schedule.(Tramp shipping) The cargo quantity is given in an interval and the shipping company can choose the actual load quantity that best fits its fleet and schedule.(Tramp shipping) Multiple Products Multiple Products Often multiple nonmixable products are carried onboard a ship simultaneously(Tramp Shipping) Often multiple nonmixable products are carried onboard a ship simultaneously(Tramp Shipping) Cargo carrying space of the vessel must be divided into separate compartments Cargo carrying space of the vessel must be divided into separate compartments Contracted and optional cargoes Contracted and optional cargoes

23. Full Shiploads Goal : to minimize the sum of the costs for all the ships in the fleet while ensuring that all cargoes are lifted from their loading ports to their corresponding unloading ports. Goal : to minimize the sum of the costs for all the ships in the fleet while ensuring that all cargoes are lifted from their loading ports to their corresponding unloading ports. Operating a heterogeneous fleet of ships Operating a heterogeneous fleet of ships The quantity of a particular cargo is given The quantity of a particular cargo is given A ship can carry only one cargo at a time but the ship is not necessary filled up A ship can carry only one cargo at a time but the ship is not necessary filled up

24. Full Shiploads

25. Review a simple model : Review a simple model :

26. Full Shiploads Problem Literature : Brown et al. (1987) Brown et al. (1987) Fisher and Rosenwein (1989) Fisher and Rosenwein (1989) Perakis and Bremer (1992) Perakis and Bremer (1992) Solution: The Dantzig–Wolfe decomposition approach Solution: The Dantzig–Wolfe decomposition approach

27. Ship Routing & Scheduling Classifications Ship routing Ship routing Goal : maximize profit by determining: Goal : maximize profit by determining: Optimal sequence of ports of call for each ship Optimal sequence of ports of call for each ship The number of trips each ship makes The number of trips each ship makes The amount of cargo transported between any two ports by each ship The amount of cargo transported between any two ports by each ship Literature Literature Rana and Vickson 1991, Solution: Bender’s decomposition Rana and Vickson 1991, Solution: Bender’s decomposition Fagerholt 1999, Solution :Dynamic programming Fagerholt 1999, Solution :Dynamic programming Boffey et. Al 1979 Boffey et. Al 1979

28. Ship Routing & Scheduling Classifications Ship routing and scheduling Ship routing and scheduling Goal : minimize the cost of ship operation Goal : minimize the cost of ship operation All cargoes are transported to their destination within time windows All cargoes are transported to their destination within time windows Literature : Literature : Fagerholt and Christiansen Fagerholt and Christiansen Fisher and Rosenwein 1989, Solution : lagrangian relaxation algorithm Fisher and Rosenwein 1989, Solution : lagrangian relaxation algorithm Inventory routing Inventory routing Combined models Combined models

29. Inventory Ship Routing Problem Goal : Minimize delivery costs by ensuring Goal : Minimize delivery costs by ensuring No customer runs out of the commodity No customer runs out of the commodity No producer has to stop production because of limited storage capacity No producer has to stop production because of limited storage capacity Classifications: Classifications: Inventory routing for a single product Inventory routing for a single product Inventory routing for multiple products Inventory routing for multiple products

30. Inventory Routing (Single Product) Definition Single product Single product Sources=Loading ports, Consumer=Unloading port Sources=Loading ports, Consumer=Unloading port Inventory storage capacities, Production and consumption rates are given Inventory storage capacities, Production and consumption rates are given Production and consumption rates are constant Production and consumption rates are constant

31. Inventory Routing (Single Product) A simple model A simple model

32. Inventory Routing (Single Product) Litrature Litrature Christiansen 1998, Solution :dynamic programming algorithm Christiansen 1998, Solution :dynamic programming algorithm Ronen 2002 Ronen 2002 Christiansen And Nygreen 1998 Christiansen And Nygreen 1998

33. Combined Models In such problems other decision variables such as: In such problems other decision variables such as: Ship speed Ship speed Multiple compartments Multiple compartments Ocean currents and weather conditions Ocean currents and weather conditions become factors. become factors.

34. Environmental Routing Ship weather routing develops an optimum track for ocean voyages based on forecasts of weather, sea conditions, and a ship’s individual characteristics for a particular transit Ship weather routing develops an optimum track for ocean voyages based on forecasts of weather, sea conditions, and a ship’s individual characteristics for a particular transit Optimum Track Optimum Track Maximum safety Maximum safety Crew comfort Crew comfort Minimum fuel consumption Minimum fuel consumption Minimum time underway Minimum time underway

35. Environmental Routing Environmental Factors Environmental Factors Wind Wind Light wind Light wind Heavy wind Heavy wind Wave Height Wave Height Cause increased drag from steering corrections Cause increased drag from steering corrections Fog Fog While not directly affecting ship performance, should be avoided as much as feasible While not directly affecting ship performance, should be avoided as much as feasible Reduced speed because of low visibility Reduced speed because of low visibility Crew fatigue Crew fatigue

36. Environmental Routing Ocean currents Ocean currents Ice Ice

37. References Maritime Transportation by Christiansen, Ronen, Fragerholt 2007 Maritime Transportation by Christiansen, Ronen, Fragerholt 2007 Inventory Constrained Maritime Routing and Scheduling by Seung-June Hwang 2005 Inventory Constrained Maritime Routing and Scheduling by Seung-June Hwang 2005 Rodrigue 2008 Rodrigue 2008 Marine inventory routing by Ronen 2002 Marine inventory routing by Ronen 2002

38. Thank You