Bert Vernimmen

Towards a modal shift in freight transport? A business logistics analysis of some policy measures

Abstract This paper analyses the effectiveness of policy measures aimed at triggering a modal shift in the freight transport market. The analysis is based on the inventory‐theoretic framework that studies modal choice from a business logistics viewpoint. The crux of the inventory‐theoretic approach lies in the fact that explicit attention is paid to all costs in the supply chain that are affected by the choice of transport mode. After a brief literature review on the inventory‐theoretic framework, the framework is used to calculate the market shares of different freight transport modes for a hypothetical transport market. In a second step, the impact of some policy measures on the market shares of the transport modes is calculated. By way of illustration, the analysis is applied to the market for container transport from a seaport to its hinterland. It is shown that a combination of certain policy measures can lead to significant modal shifts from road transport to intermodal transport.

New heuristics for the fleet size and mix vehicle routing problem with time windows

In the Fleet Size and Mix Vehicle Routing Problem with Time Windows (FSMVRPTW) customers need to be serviced in their time windows at minimal costs by a heterogeneous fleet. In this paper new heuristics for the FSMVRPTW are developed. The performance of the heuristics is shown to be significantly higher than that of any previous heuristic approach and therefore likely to achieve better solutions to practical routing problems.

An evolutionary algorithm for order splitting with multiple transport alternatives

In this paper, a new methodology is suggested for determining the optimal mix of transport alternatives to minimize total logistics costs when goods are shipped from a supplier to a receiver. The total logistics costs comprise order costs, transportation costs and inventory costs. It is assumed that only a limited number of transport alternatives are capable of shipping the goods from the supplier to the receiver. Moreover, if a certain transport alternative is selected to ship the goods, then its entire capacity is used. These assumptions imply that the number of possible order quantities is finite and that the problem can be formulated as a combinatorial optimization problem. In a first step to explore the use of metaheuristics for optimization problems like these, an Evolutionary Algorithm is developed in this paper. The heuristic is tested on real-life problem instances.

A hybrid approach to designing inbound-resupply strategies

We model the behavior of the demand distribution and lead-time distribution separately and determine the value of demand during lead time by discrete-event simulation. A new methodology determines the optimal inbound-resupply strategy when suppliers ship goods to receivers. An evolutionary metaheuristic uses discrete-event simulation to calculate safety stock levels and minimize total logistics costs.

MamMoeT: An intelligent agent-based communication support platform for multimodal transport

In this paper, an intelligent agent-based communication support platform for multimodal transport is developed. The rationale for doing so is found in the potential of such a system to increase cost efficiency, service and safety for different transport-related actors. Although, at present several comparable systems exist, their current implementation is far from successful because of technological and economic obstacles. The new expert communication platform put forward here (called MamMoeT) addresses these two issues by using a software agent-based approach. Software agents are pieces of software representing a single user. They are autonomous, communicative and intelligent. The MamMoeT system developed can be described as a real-time decision support system in which intelligent software agents handle communicative tasks, exchange desired amounts of information among different users using common exchange protocols which act as translators between different systems.

Revisiting Service-level Measurement for an Inventory System with Different Transport Modes

Abstract In a stochastic supply link between a supplier and a receiver the receiver will call upon the supplier who can replenish his inventory at the lowest total cost. This total cost typically contains the order costs, transportation costs and inventory costs. A crucial component of the total inventory costs are the costs of safety stock, which is held by the receiver to protect against stockouts. The optimal amount of safety stock can either be derived from the cost of a stockout or from an imposed service level. Since the cost of a stockout cannot always be determined easily, the service‐level approach is a common point of departure for practitioners and academics. Several ways are discussed in the literature to specify the service level, and the definition used can have an important impact on the derived level of safety stock. In this paper the literature on the inventory‐theoretic framework for transport selection is surveyed, with particular emphasis on the criterion that is used to establish safety stock levels. A case study based on real‐life data is then presented to illustrate the impact of two different service‐level definitions on the total logistics costs.

Market Efficiency Within Dry Bulk Markets in the Short Run: A Multi-Agent System Dynamics Nash Equilibrium

In this paper, we assess the Efficient Market Hypothesis (EMH) in relation to dry bulk shipping in the short run. The aim is to explain why freight rates in the different ship segments are highly correlated. By building a system dynamics model, which is well-suited to modelling complex and stochastic processes with limited data availability, we attempt to track the arbitrage process in which the different ship types (Handy, Panamax and Capesize) literally seek to transport each others’ cargoes (substitution) when this is beneficial. Also, within one ship segment, we govern the arbitrage opportunities arising from regional differences in freight rates. Although the EMH is ever more contested in the maritime literature, holistic and analytical proof is provided that efficiency is maintained through the intrinsic arbitrage free and evolutionary behaviour in the system towards the Nash equilibrium.

Underground Logistics Systems: A Way to Cope with Growing Internal Container Traffic in the Port of Antwerp?

Abstract During the last decade, container traffic was the driving force behind the growth in cargo handling in the port of Antwerp, Belgium. Between 1995 and 2005 container traffic almost tripled, enabling Antwerp to increase its market share in the Hamburg-Le Havre range. Moreover, various recent studies indicate that container traffic will continue to grow strongly in the years to come. In order to be able to respond to these growth perspectives and to safeguard the future position of the port of Antwerp as a container mainport, a new tidal container dock has been built on the left bank of the river Scheldt, the so-called Deurganckdock. This dock will lead to large flows of internal port container traffic between both river banks. As the traditional hinterland transport modes offer insufficient capacity to accommodate the increasing number of containers in the long-term, it seems worthwhile to consider the idea of constructing a dedicated underground logistics system (ULS) to transfer containers between both river banks. This paper presents a first analysis of different variants of such a ULS.

Multi-Agent Adaptive Systems in Dry Bulk Shipping

Abstract Investment decisions in dry bulk shipping form one of the most difficult managerial tasks due to the high degree of uncertainty and the cyclical nature of the market. Adequate information on ship prices is, therefore, crucial when justifying such decisions. This paper is the first to embed trading rules in an evolutionary agent-based system to dynamically incorporate different traders’ beliefs on future ship prices. The model is applied to two types of traders, two trading rules and three vessel types for the newbuild and second-hand market in the period 1990–2005. The results indicate that strategy selection is important to understand market pricing. Traders are also shown to benefit from adjusting their strategies over time and over vessel types.