Cost allocation in a container shipping alliance considering economies of scale

A CKYH alliance case study

Journal article (2017)

Authors

Shiyuan Zheng Shanghai Maritime University
R.R. Negenborn Transport Engineering and Logistics - Mechanical, Maritime and Materials Engineering
Xiaolin Zhu Shanghai Maritime University
Research Group
Transport Engineering and Logistics (Mechanical, Maritime and Materials Engineering) (TU Delft)
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Published Date

2017

Language

English

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Faculty

Mechanical, Maritime and Materials Engineering

Department

Marine and Transport Technology

Research Group

Transport Engineering and Logistics

Abstract

This paper proposes and investigates three schemes for cost allocation in a container shipping alliance considering the economies of scale. In order to deal with the complicated interactions between carriers and the impact of the economies of scale on shipping cost, a duality-based, an inverse optimisation-based and a Shapley value-based scheme are discussed and compared to the conventional demand-based and turnover-based schemes. The theoretical models are applied in a case study involving the Asia-Europe container shipping lines of the CKYH alliance. The application results and the sensitivity analysis illustrate the practicability of our schemes.