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Tagawa Hoshi,Kawasaki Tomoya,Hanaoka Shinya 한국해운물류학회 2021 The Asian journal of shipping and Logistics Vol.37 No.2
Hub-and-spoke (HS) networks are cost-effective because they allow the realization of economies of density. However, the cost of point-to-point (PP) networks may be lower than that of HS networks when certain conditions, such as cargo demand, bunker price, vessel size, and the shippers’ value of time change. This study explores the factors that influence the cost-effectiveness of HS and PP networks. We developed a mixed-integer programming model that allows for bi-level optimization between shipping lines and shippers. As a case study, we applied it to Chinese and Japanese ports, with both HS and PP networks. We found that high cargo demand increases the use of PP networks while enlarging vessel size increases the use of HS networks. These findings enable us to predict the occurrence of hubbing—shifting from a PP to an HS network—and de-hubbing—shifting from an HS to a PP network.
Kawasaki Tomoya,Tagawa Hoshi,Watanabe Toshihiro,Hanaoka Shinya 한국해운물류학회 2020 The Asian journal of shipping and Logistics Vol.36 No.1
This study simultaneously explores the effects of “consolidation” and “privatization” of ports that are located in proximity to one another. The main benefit of consolidation is assumed to be economies of scale due to the aggregation of container cargo in one port, while that of privatization is cost reduction for port management and operations. We employ a multi-agent simulation model to express interactions among stakeholders, such as a port management body, shipping company, and shipper. The model is applied to a case study for the Kobe and Osaka ports in Japan. We find that consolidation has a larger impact than privatization in terms of cargo volume and total surplus. In particular, if future container cargo increases, consolidation accelerates the increase in cargo volume of the Kobe and Osaka ports. Transshipment cargo receives the largest volume in the case of “consolidation and privatization” when future container demand is increasing. However, the Busan port in South Korea, competitor of the Kobe and Osaka ports for transshipment cargo, would remain dominant even after the consolidation and privatization of the Kobe and Osaka ports, since its vessel frequency would be high in all cases.