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ContainerShippingCourseModule PDF
ContainerShippingCourseModule PDF
CONTAINER SHIPPING
INDUSTRY
University of Wisconsin Milwaukee
Paper No. 11-1
National Center for Freight & Infrastructure Research & Education
College of Engineering
Department of Civil and Environmental Engineering
University of Wisconsin, Madison
January 6, 2011
Introduction to the
Container Shipping Industry
Matthew E. H. Petering
Assistant Professor
Department of Industrial and Manufacturing Engineering
University of WisconsinMilwaukee
mattpete@uwm.edu
2010 Matthew E. H. Petering
Outline
1.
2.
3.
4.
5.
6.
Outline
1.
2.
3.
4.
5.
6.
Water transportation
is less costly and
more energy efficient
than other modes of
transport:
4
http://www.greatlakes-seaway.com/en/aboutus/competitiveness.html
Liquid Bulk
Break Bulk
Automobile
Containerized
(finished consumer goods)
5
Shippers (importers/exporters)
Railway operators
Outline
1.
2.
3.
4.
5.
6.
Container Shipping
World fleet, Feb 2004: 3167 vessels, capacity = 6.5 million 20-ft conts. (TEU)
World fleet, Dec 2008: 4661 vessels, capacity = 12.1 million 20-ft conts. (TEU)
8
Port of Long Beach
Container Shipping
Port of Long Beach
9
Port of Singapore
Vessels
10
Containers
Contents
furniture, toys, footware, clothing, auto parts, electronics,
computers, bananas, pineapples, foodstuffs, meat, fish
Sizes
20' x 8' x 8.5' high (TEU)
40' x 8' x 8.5' high (FEU)
45' x 8' x 8.5' high
Capacity
30 tons
Types
standard dry, high cube (9.5' high) (90%)
refrigerated ("reefer") (5%)
other: ventilated, open top, adjustable height (5%)
Quantity
Global stock = 35 million (10 mill leased); 3.5 million produced in 2008
Cost
New: $2000 - $20,000; lease rate $1 - $6 per day (5 year term)
11
Containers
12
Containers
13
Containers
14
Containers
15
Containers
16
77- Unloading
Unloading the
the ship:
ship: As
As the
the ship
ship is
is arriving,
arriving, the
the terminal
terminal operator
operator will
will contact
contact the
the
local
local union
union hall
hall and
and arrange
arrange for
for unionized
unionized longshore
longshore workers
workers to
to unload
unload the
the container
container
(using
a
giant,
electric
gantry
crane)
and
place
it
onto
a
truck,
a
rail
car
or
(using a giant, electric gantry crane) and place it onto a truck, a rail car or temporary
temporary
storage
storage area
area on
on the
the terminal
terminal property.
property. Unloading
Unloading an
an 8,000
8,000 TEU
TEU ship
ship takes
takes about
about three
three
days.
days.
Import
Import cargo
cargo generally
generally starts
starts at
at an
an overseas
overseas
manufacturer, supplier
manufacturer,
supplier or
or consolidation
consolidation facility.
facility.
The
US
buyer
may
contact
an
industry
The US buyer may contact an industry professional
professional
known as
as a
a Freight
Freight forwarder
forwarder or
or logistics
logistics company.
company.
known
99- Radiation
Radiation detection:
detection: As
As a
a final
final security
security safeguard,
safeguard, containers
containers pass
pass through
through large
large
portals that
portals
that detect
detect radiation.
radiation.
1- Product
Product Ordered:
Ordered: A
A typical
typical import
import transaction
transaction starts
starts
1when a
a U.S.
U.S. wholesaler,
wholesaler, retailer
retailer or
or other
other buyer
buyer orders
orders
when
products from
from an
an overseas
overseas manufactures
manufactures
products
5- Coast
Coast Guard
Guard review:
review: The
The U.S.
U.S. Coast
Coast Guard
Guard reviews
reviews crew
crew and
and cargo
cargo manifest
manifest
5information, which
which must
must be
be delivered
delivered at
at least
least three
three days
days before
before any
any ship
ship arrives
arrives
information,
at
U.S.
shores.
at U.S. shores.
88- Security
Security Checks:
Checks: U.S.
U.S. Customs
Customs officials
officials conduct
conduct further
further analysis
analysis and
and determine
determine
which
which containers
containers warrant
warrant further
further inspection.
inspection.
44- All
All abroad:
abroad: When
When the
the container
container is
is cleared
cleared by
by security
security it
it will
will be
be placed
placed on
on a
a ship
ship along
along with
with as
as
many
many as
as 8,000
8,000 TEU
TEU (twenty-foot
(twenty-foot equivalent)
equivalent) containers.
containers.
33- Security
Security checks:
checks: A
A U.S.
U.S. Customs
Customs official
official based
based at
at the
the port
port receives
receives information
information
from
from a
a U.S.-based
U.S.-based command
command center
center about
about which
which containers
containers may
may be
be a
a security
security risk.
risk.
22- To
To port:
port: Once
Once the
the product
product has
has been
been ordered
ordered and
and packaged,
packaged, the
the buyer
buyer or
or
freight forwarder
freight
forwarder will
will arrange
arrange for
for a
a local
local trucking
trucking company
company to
to move
move the
the
container
to
seaport,
and
then
for
a
ship
to
transport
the
container
container to seaport, and then for a ship to transport the container oversea.
oversea.
6- Vessel
Vessel docked:
docked: As
As the
the ship
ship nears
nears the
the harbor
harbor it
it
6will be
be boarded
boarded by
by a
a port
port pilot,
pilot, maritime
maritime specialists
specialists
will
with expert
expert knowledge
knowledge of
of the
the harbor
harbor waters.
waters.
with
As
As with
with imported
imported goods,
goods, exported
exported cargo
cargo may
may require
require
several intermediate
several
intermediate stops
stops between
between the
the producer
producer or
or
manufacturer
of
the
cargo
and
the
Port.
manufacturer of the cargo and the Port.
5- Near-dock
5Near-dock railyards:
railyards: Export
Export deliveries
deliveries are
are also
also made
made to
to near-dock
near-dock railyards,
railyards,
where the
the cargo
cargo is
is picked
picked up
up by
by truck
truck for
for a
a short
short trip
trip to
to the
the marine
marine terminal..
terminal..
where
11- Direct
Direct Delivery:
Delivery: In
In the
the most
most straightforward
straightforward route,
route, a
a
single
single container
container from
from a
a local
local exporting
exporting company,
company,
produce
grower
or
manufacturer
would
be
delivered
produce grower or manufacturer would be delivered by
by
truck
truck directly
directly to
to the
the marine
marine terminal.
terminal.
4- On-dock
4On-dock railyards:
railyards: Cargo
Cargo
bound for
for export
export can
can be
be
bound
delivered by
by train
train directly
directly to
to
delivered
on-dock railyards,
railyards, where
where it
it
on-dock
is loaded
loaded onto
onto an
an ocean
ocean
is
vessel. On-dock
On-dock delivery
delivery
vessel.
requires no
no local
local truck
truck trips.
trips.
requires
33- Off-dock
Off-dock railyards:
railyards: Some
Some export
export cargo
cargo containers
containers are
are
delivered
delivered by
by train
train to
to off-dock
off-dock railyards,
railyards, where
where they
they are
are
placed
placed onto
onto trucks
trucks for
for final
final delivery
delivery to
to marine
marine terminals.
terminals.
6- Vessel
Vessel loading:
loading: Outbound
Outbound cargo
cargo is
is loaded
loaded onto
onto
6an ocean
ocean vessel
vessel headed
headed for
for an
an overseas
overseas port.
port.
an
2- Warehouse/consolidator:
Warehouse/consolidator: Cargo
Cargo delivered
delivered from
from local
local or
or
2nonlocal destinations
destinations may
may be
be stored
stored temporarily
temporarily at
at a
a
nonlocal
warehouse
or
consolidated
with
other
cargo
bound
for
warehouse or consolidated with other cargo bound for
export. Cargo
Cargo may
may also
also be
be transferred
transferred from
from domestic
domestic truck
truck
export.
trailers to
to marine
marine shipping
shipping containers
containers at
at this
this facility.
facility.
trailers
From
From the
the port
port of
of Long
Long Beach,
Beach, containers
containers are
are either
either transported
transported by
by train
train or
or by
by truck
truck to
to their
their final
final
destination,
destination, or
or to
to one
one of
of several
several intermediate
intermediate destinations
destinations such
such as
as a
a railyard,
railyard, warehouse,
warehouse, distribution
distribution center,
center,
or
transload
facility
(
a
sorting,
routing
and
short-term
storage
building).
A
containers
or transload facility ( a sorting, routing and short-term storage building). A containers final
final destination
destination
determine exactly
exactly what
determine
what path
path it
it will
will take
take once
once it
it leaves
leaves the
the dock.
dock.
2- Freight
Freight forwarder:
forwarder: A
A containers
containers
2movements are
are determined
determined by
by the
the
movements
cargos
owner,
or
an
industry
cargos owner, or an industry
professional known
known as
as a
a freight
freight
professional
forwarder or
or logistics
logistics provider.
provider.
forwarder
5- Off-dock
Off-dock railyards:
railyards: Off-dock
Off-dock railyards
railyards are
are used
used to
to coordinate
coordinate rail
rail deliveries
deliveries to
to
5non-local destinations.
destinations. Containers
Containers are
are delivered
delivered here
here by
by truck,
truck, then
then sorted
sorted and
and
non-local
grouped by
by final
final destination.
destination. These
These railyards
railyards handle
handle Port
Port cargo
cargo as
as well
well as
as domestic
domestic
grouped
cargo from
from other
other sources.
sources.
cargo
44- Near-dock
Near-dock railyards:
railyards: Cargo
Cargo is
is often
often transported
transported
by truck
by
truck to
to larger
larger near-dock
near-dock railyards
railyards close
close to
to
the
Port.
the Port.
3- On-dock
On-dock railyard:
railyard: Cargo
Cargo can
can be
be placed
placed directly
directly onto
onto trains
trains at
at the
the marine
marine terminals
terminals on-dock
on-dock railyards.
railyards.
3-
1- Unloading
Unloading the
the ship:
ship: When
When a
a ship
ship
1arrives at
at the
the Port,
Port, the
the marine
marine
arrives
terminal
operator
will
arrange
for
terminal operator will arrange for
unionized longshore
longshore workers
workers to
to
unionized
unload the
the vessel.
vessel. The
The terminal
terminal
unload
operator directs
directs the
the longshore
longshore
operator
workers to
to place
place the
the cargo
cargo
workers
containers where
where they
they belong:
belong:
containers
on
trains,
trucks
or
on
terminal
on trains, trucks or on terminal
property for
for temporary
temporary storage.
storage.
property
77- Direct
Direct delivery:
delivery: In
In the
the
simplest
simplest transportation
transportation
plan,
plan, a
a single
single container
container
imported
imported by
by a
a company
company
for
for its
its own
own use
use would
would be
be
delivered
by
delivered by truck
truck
directly
directly from
from the
the marine
marine
terminal
terminal to
to a
a local
local store
store
or
or factory.
factory.
6- Transload
Transload or
or storage
storage yard:
yard: Shipping
Shipping containers
containers are
are often
often
6moved initially
initially to
to a
a transload
transload facility
facility where
where workers
workers unload
unload the
the
moved
cargo
fromthe
marine
container,
sort
it
and
repackage
it
into
cargo fromthe marine container, sort it and repackage it into
larger-sized truck
truck trailers.
trailers. The
The larger
larger trailers
trailers are
are used
used to
to transport
transport
larger-sized
the cargo
cargo from
from the
the transload
transload facility
facility to
to regional
regional distribution
distribution
the
centers, local
local stores
stores or
or off-dock
off-dock railyards.
railyards.
centers,
Outline
1.
2.
3.
4.
5.
6.
20
Vessels
Capacity
from 100 to 14,000 TEU
Newbuild cost
$1 million per 100 TEU capacity
Speed
20 - 25 knots
Fuel
Marine diesel oil; efficiency ~ 500 ton-miles/gal
20 crew members
captain/master, 3 deck officers, chief engineer w/ 3 assistants,
radio operator, cooks, qualified members of the engine department
(QMEDs), etc.
Country
TEU deployed
in 2006
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Denmark
Switzerland
France
Taiwan
Germany
China
China
South Korea
Singapore
Japan
Japan
China (HK)
Chile
Japan
Taiwan
1,600,012
937,145
597,677
539,801
448,840
385,368
339,545
328,327
323,319
313,049
284,848
268,502
249,885
241,772
223,192
A.P. Moller-Maersk
Mediterranean Shipping Co
CMA CGM
Evergreen
Hapag-Lloyd
Cosco
China Shipping Cont. Lines
Hanjin
American President Lines
NYK
Mitsui OSK Lines
OOCL
CSAV
K Line
Yang Ming
2007
Revenue
(billion $)
11.8
8.8
6.5
5.3
7.4
8.2
25.8
19.4
5.2
4.1
13.3
4.1
22
23
24
4.
5.
6.
How many empty containers should be loaded onto each vessel at each
port? (empty container repositioning)
Where should individual containers be placed on the vessel?
(vessel stowage)
Assigning crew members to vessels.
26
Because
Because the
the United
United States
States imports
imports more
more goods
goods than
than it
it exports,
exports, many
many empty
empty containers
containers are
are sent
sent overseas
overseas to
to be
be refilled
refilled with
with goods.
goods. Typically,
Typically,
about a
about
a third
third of
of the
the containers
containers loaded
loaded onto
onto a
a ship
ship at
at the
the Port
Port of
of Long
Long Beach
Beach will
will be
be filled
filled with
with cargo,
cargo, while
while about
about two-thirds
two-thirds will
will be
be empty.
empty.
11- Delivery
Delivery to
to local
local exporter
exporter :: A
A local
local
exporter
exporter who
who needs
needs to
to fill
fill empty
empty
containers
containers may
may arrange
arrange to
to receive
receive
them
them by
by truck
truck directly
directly from
from a
a marine
marine
terminal,
terminal, from
from an
an empty
empty container
container
storage
yard
or
from
a
local
storage yard or from a local importer.
importer.
Direct
Direct delivery
delivery between
between importers
importers and
and
exporters
exporters is
is encouraged
encouraged because
because it
it
eliminates
eliminates an
an additional
additional truck
truck trip
trip to
to a
a
storage
storage yard
yard or
or marine
marine terminal.
terminal.
4- Ocean
Ocean Vessel:
Vessel: Empty
Empty containers
containers are
are
4loaded onto
onto an
an ocean
ocean vessel,
vessel, along
along
loaded
with containers
containers filled
filled with
with export
export
with
goods, bound
bound for
for an
an overseas
overseas port.
port.
goods,
22- Empty
Empty container
container storage
storage yard:
yard:
Empty
Empty containers
containers are
are often
often
transported
transported by
by truck
truck from
from a
a transload
transload
facility
facility or
or local
local importer
importer to
to an
an empty
empty
container
container storage
storage yard.
yard. From
From the
the
storage
storage yard,
yard, the
the empty
empty containers
containers
can
can be
be transported
transported to
to a
a marine
marine
terminal
terminal for
for export,
export, or
or to
to a
a local
local
exporter
exporter to
to be
be filled
filled with
with cargo.
cargo.
Empty
containers
are
also
Empty containers are also
transported
transported from
from marine
marine terminals
terminals
to
to storage
storage yards,
yards, usually
usually when
when the
the
terminal
terminal needs
needs more
more space
space for
for full,
full,
incoming
containers.
incoming containers.
3- Direct
Direct Delivery:
Delivery:
3The simplest
simplest route
route for
for an
an empty
empty
The
cargo container
container would
would be
be a
a return
return
cargo
trip
to
the
Port
from
a
transload
trip to the Port from a transload
facility or
or local
local importer
importer after
after its
its
facility
imported goods
goods had
had been
been
imported
unloaded.
unloaded.
28
Outline
1.
2.
3.
4.
5.
6.
29
container
terminal
30
Country
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Singapore
China
China (HK)
China
South Korea
Netherlands
UAE
Taiwan
Germany
China
China
China
USA
Belgium
USA
Singapore
Shanghai
Hong Kong
Shenzhen
Busan
Rotterdam
Dubai
Kaohsiung
Hamburg
Qingdao
Ningbo-Zhoushan
Guangzhou
Los Angeles
Antwerp
Long Beach
Million TEU
handled in 2007
27.9
26.2
24.0
21.1
13.3
10.8
10.7
10.3
9.9
9.5
9.4
9.3
8.4
8.2
7.3
31
Terminal Operator
Country
1.
2.
3.
4.
5.
6.
66.3
58.9
43.3
39.8
31.4
7.2
2007
Revenue
(billion $)
4.9
3.0
2.7
0.1
2.5
1.9
Container Terminals
import
export
Typically a
24-hour
operation
transshipment
2.
Horizontal
transport
of cargo
3.
Container lifting &
stacking
Trains
quay to yard
Trains
Vessels
yard to quay
Storage
yard
XTs
Gate External
trucks
(XTs)
On-dock
rail yard
33
Yard
trucks
(YTs) 2.
Gate
Port of Singapore
34
Rubber-tired gantry
cranes (RTGCs)
Port of Singapore
35
36
Port of Hong Kong
2.
3.
Straddle carriers
(SCs)
Port of Hamburg
37
2.
3.
Straddle carriers
(SCs)
Port of Hamburg
38
Aerial view
of
Northport's
container
terminal
39
40
Source: HHLA website (http://hhla.de)
1.
3. Reach-stackers
Top- handlers
2. Yard trucks
41
TTI/Hanjin Terminal (Seattle)
3.
2. Yard trucks
Side-picks
On-dock rail yard
Reach-stackers
42
RMGCs 3.
ASCs
www.hhla.de
www.hhla.de
1.
QCs
2. AGVs
1.
2.
44
Other Possibilities
Straddle carriers and ASCs used in storage yard
RMGCs used in on-dock rail yard
workload processed continuously: 24 hours per day, 365 days per year
uneven distribution of workload over time (late vessel arrivals, cust. requests)
46
unloading
Vessels
loading
Yard
48
Tractor-trailers (YTs)
Automated guided vehicles (AGVs)
3.
4.
5.
6.
7.
8.
9.
3.
Horizontal
Transport
3.
Lifting
Stacking
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
49
container-terminal of Bremerhaven
51
www.hhla.de
52
53
54
55
33
28
Less equip
More equip
23
18
Group 5: scenario 11
38
Gross crane rate
(QC lifts/hr)
13
33
28
Less equip
More equip
23
18
13
11
13
15
11
13
15
38
33
28
Less equip
More equip
23
18
Group 6: scenario 12
38
13
33
28
Less equip
More equip
23
18
13
11
13
15
11
13
15
Most
Square
33
28
Less equip
More equip
23
18
13
38
Gross crane rate
(QC lifts/hr)
33
28
Less equip
More equip
23
18
13
11
13
15
11
13
15
56
57
Longer blocks
More congestion
Shorter blocks
Less congestion
58
59
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Frequency (decs/day)
Land-scarce
terminal:
unloading
Vessels
loading
Yard
60
61
TOS is idle
- XT arrives
(new job added to system)
Which quay
cranes should
work on the
vessel?
63
Water depth
Vessel schedules
Transshipment requests
64
OM Issue #3:
QC Scheduling and Job Sequencing
Once a vessel is secured
alongside the terminal,
OM Issue #3:
QC Scheduling and Job Sequencing
Constraints:
1. Ship balance must be maintained
2. Stress on vessel may not exceed
certain limits
3. Precedence constraints due to
container stacks
4. QCs must remain a minimum
distance apart to avoid collisions
5. Visibility: crane operators must be
able to easily see containers
6. Stability of above-deck stacks: no
chimneys (stacks jutting out
vertically by more than 2 tiers)
66
OM Issue #3:
QC Scheduling and Job Sequencing
Further complexity:
1. Some cargo booked for a vessel
arrives after loading has begun
2. Cranes may work at different
speeds
3. Not all container moves are loads
or unloadsthere are also
repositioning moves!
67
68
69
Containers to be moved
Bay #
Unloading
Loading
Total
QC1
QC2
QC3
QC4
15
19
34
82
102
102
136
17
41
51
51
68
66
52
118
283
354
354
472
35
35
70
168
210
210
280
10
26
24
50
120
150
150
200
11
40
43
83
199
249
249
332
14
72
76
148
355
444
444
592
18
55
45
100
240
300
300
400
Total
318
302
620
70
Unloading
Loading
15
Total
QC1
QC2
QC3
QC4
19
34
82
102
102
136
17
41
51
51
68
66
52
118
283
354
354
472
35
35
70
168
210
210
280
10
26
24
50
120
150
150
200
11
40
43
83
199
249
249
332
14
72
76
148
355
444
444
592
18
55
45
100
240
300
300
400
Total
318
302
620
574
399
444
400
71
?
Quay crane:
5 6 7
Vessel 2
Vessel 3
Vessel 1
Bk 2
1
Zone 1
10
11
Bk 8
13
15
17
16
Bk 11
20
21
22
12
Bk 9
14
Bk 10
Bk 6
Bk 7
Zone 3
Zone 4
Bk 5
7
Bk 3
Bk 4
Zone 2
? ? ?
Block 1
18 19
Bk 12
23
24
? ?
cross-gantry
Yard Crane
Yard Truck
linear gantry
72
OM Issue #4:
Selection of Cargo Storage Locations
Re-marshalling strategy
II.
74
75
5 6 7
Vessel 2
Vessel 3
Vessel 1
?
Block 1
1
Zone 1
Bk 3
3
10
Bk 8
Zone 3
13
15
21
12
17
16
Bk 11
20
11
Bk 9
14
Bk 10
Bk 6
Bk 5
Bk 7
Zone 4
? ?
Bk 4
Zone 2
Bk 2
22
18 19
Bk 12
23
24
76
Vessel 2
Vessel 3
Vessel 1
Block 1
Bk 2
1
Zone 1
Bk 3
Bk 4
Bk 5
Zone 2
10
Bk 7
Bk 8
Zone 3
13
15
12
17
16
Bk 11
20
11
Bk 9
14
Bk 10
Zone 4
Bk 6
Bk 12
22
21
18 19
23
24
(2) How to avoid deadlocks when YCs are working in close proximity
and containers halfway between them need to be moved?
77
Pending
QC jobs
QC:
5 6 7
Vessel 2
Vessel 3
Vessel 1
Zone 1
Zone 2
Q9:71U
BkQ8:75U
3
Q8:76U Q9:72U
5
Q8:77U Q9:73U
Q2:25U Q3:28U
Bk Q1:27U
4
Q4:92L
Bk 5 Q5:92L Q6:91L Q7:93L
Q9:74U
BkQ8:78U
6
...
...
Bk 2
...
...
Bk 7
Zone 3
Zone 4
...
...
10
Bk 8
13
QCBkjobs
10
already
assigned20
to YTs
...
15
22
...
17
16
Bk 11
11
12
Bk 9
14
21
...
18 19
Bk 12
23
24
78
OM Issue #10:
Appointment System for External Trucks
What kind of truck appointment system best serves the interests of
the terminal, trucking industry, neighboring community, and
environment?
What should the appointment date and time be for a specific truck?
79
Global Gateway North Terminal, Seattle
80
1.
2.
3.
4.
5.
6.
7.
8.
9.
unloading
Vessels
loading
Yard
81
Outline
1.
2.
3.
4.
5.
6.
82
83
Country
TEU moved
in 2007
1.
2.
3.
4.
5.
6.
7.
USA
USA
USA
USA
Canada
Canada
USA
5,065,005
3,453,000
3,120,000
2,111,000
1,324,000
1,238,100
526,370
BNSF
Union Pacific
Norfolk Southern
CSX Corp.
Canadian National
Canadian Pacific
Kansas City Southern
2007
Revenue
(billion $)
84
85
86
87
Union Pacific Intermodal Network, 2008
Rochelle, Illinois
88
Outline
1.
2.
3.
4.
5.
6.
89
90
91
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Acknowledgment
Editor : Mazen I. Hussein, Industrial and Manufacturing Engineering Department, University of Wisconsin-Milwaukee.
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The End!
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