Container Shipping Course Module

INTRODUCTION TO THE
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

Author: Matthew E. H. Petering
Department of Industrial and Manufacturing Engineering
University of Wisconsin Milwaukee

Principal Investigator: Alan J. Horowitz
Professor, Civil Engineering and Mechanics Department, University of Wisconsin Milwaukee

January 6, 2011

Introduction to the Container Shipping Industry
INTRODUCTION
This document contains images of all slides in a course module about the container
shipping industry and container port operations. Sources and additional content are found on the
note pages of the original slide presentation. The full presentation contains videos. This
presentation is available upon request to Alan Horowitz, horowitz@uwm.edu.
1
Introduction to the Introduction to the
Container Shipping Industry 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
2
Outline Outline
1. Introduction to maritime shipping
2. Introduction to container shipping
3. Container vessels and shipping lines
4. Seaports
5. Railway container transportation / facilities
6. Conclusion
3
Outline Outline
4. Seaports
6. Conclusion
4
Introduction to Maritime Shipping Introduction to Maritime Shipping
Ships carry 99% of overseas trade in volume terms
and 62% in value terms, the remainder being
conveyed by air.
90% of all international trade moves by sea
Globally, the ton-miles of freight moved by water
are more than twice the total ton-miles moved by
road, railway, and air put together.
http://www.greatlakes-seaway.com/en/aboutus/competitiveness.html
Water transportation
is less costly and
more energy efficient
than other modes of
transport:
5
Maritime Shipping: Cargo Types Maritime Shipping: Cargo Types
Dry Bulk
(salt, grain, minerals, cement/gypsum, coal byproducts)
Liquid Bulk
(crude oil, gasoline, chemicals, liquefied natural gas)
Break Bulk
(steel, lumber, heavy machinery)
Automobile
Containerized
(finished consumer goods)
6
Shippers (importers/exporters)
(Nike, Wal-Mart, ExxonMobil, Toyota)
Shipping lines (ocean carriers, vessel operators)
(Maersk Sealand, MSC, CMA CGM, Evergreen, Hapag Lloyd)
Seaport terminal operators
Morton Salt (dry bulk)
Shell Oil (liquid bulk)
Toyota (automobile)
Containerized cargo:
PSA Corporation (Singapore)
Hutchison Port Holdings (Hong Kong)
Dubai Ports World (United Arab Emirates)
APM Terminals (Netherlands, Denmark)
Railway operators
(Union Pacific, BNSF, CSX, Norfolk Southern, CN, CP)
Trucking companies (motor vehicle carriers)
Maritime Shipping: Major Players Maritime Shipping: Major Players
7
Outline Outline
4. Seaports
6. Conclusion
8
Container Shipping 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)
Port of Long Beach
Port of Long Beach
9
Container Shipping Container Shipping
Port of Long Beach Frankfurt am Main East
Port of Singapore
10
Vessels Vessels
11
Containers 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
Where are they manufactured?
China
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)
12
Hoisted, lowered, and secured at the corners
13
Secured aboard vessels, trains, truck chassies using
(1) twist locks
for securing adjacent containers in the same stack
(2) lashing rods (vessels only)
for securing containers in high tiers directly to the deck
14
(1) twist locks
15
(1) twist locks
16
(1) twist locks
17
Port of Long Beach Website
Import cargo generally starts at an overseas
manufacturer, supplier or consolidation facility.
The US buyer may contact an industry professional
known as a Freight forwarder or logistics company.
Import cargo generally starts at an overseas
manufacturer, supplier or consolidation facility.
The US buyer may contact an industry professional
known as a Freight forwarder or logistics company.
1- Product Ordered: A typical import transaction starts
when a U.S. wholesaler, retailer or other buyer orders
products from an overseas manufactures
1- Product Ordered: A typical import transaction starts
when a U.S. wholesaler, retailer or other buyer orders
products from an overseas manufactures
2- To port: Once the product has been ordered and packaged, the buyer or
freight forwarder will arrange for a local trucking company to move the
container to seaport, and then for a ship to transport the container oversea.
2- To port: Once the product has been ordered and packaged, the buyer or
freight forwarder will arrange for a local trucking company to move the
container to seaport, and then for a ship to transport the container oversea.
3- Security checks: A U.S. Customs official based at the port receives information
from a U.S.-based command center about which containers may be a security risk.
3- Security checks: A U.S. Customs official based at the port receives information
from a U.S.-based command center about which containers may be a security risk.
4- All abroad: When the container is cleared by security it will be placed on a ship along with as
many as 8,000 TEU (twenty-foot equivalent) containers.
4- All abroad: When the container is cleared by security it will be placed on a ship along with as
many as 8,000 TEU (twenty-foot equivalent) containers.
5- Coast Guard review: The U.S. Coast Guard reviews crew and cargo manifest
information, which must be delivered at least three days before any ship arri ves
at U.S. shores.
5- Coast Guard review: The U.S. Coast Guard reviews crew and cargo manifest
information, which must be delivered at least three days before any ship arri ves
at U.S. shores.
6- Vessel docked: As the ship nears the harbor it
will be boarded by a port pilot, maritime specialists
with expert knowledge of the harbor waters.
6- Vessel docked: As the ship nears the harbor it
will be boarded by a port pilot, maritime specialists
with expert knowledge of the harbor waters.
7- Unloading the ship: As the ship is arriving, the terminal operator will contact the
local union hall and arrange for unionized longshore workers to unload the container
(using a giant, electric gantry crane) and place it onto a truck, a rail car or temporary
storage area on the terminal property. Unloading an 8,000 TEU ship takes about three
days.
7- Unloading the ship: As the ship is arriving, the terminal operator will contact the
local union hall and arrange for unionized longshore workers to unload the container
(using a giant, electric gantry crane) and place it onto a truck, a rail car or temporary
storage area on the terminal property. Unloading an 8,000 TEU ship takes about three
days.
8- Security Checks: U.S. Customs officials conduct further analysis and determine
which containers warrant further inspection.
8- Security Checks: U.S. Customs officials conduct further analysis and determine
which containers warrant further inspection.
9- Radiation detection: As a final security safeguard, containers pass through large
portals that detect radiation.
9- Radiation detection: As a final security safeguard, containers pass through large
portals that detect radiation.
18
As with imported goods, exported cargo may requi re
several intermediate stops between the producer or
manufacturer of the cargo and the Port.
As with imported goods, exported cargo may requi re
several intermediate stops between the producer or
manufacturer of the cargo and the Port.
1- Direct Delivery: In the most straightforward route, a
single container from a local exporting company,
produce grower or manufacturer would be delivered by
truck directly to the marine terminal.
1- Direct Delivery: In the most straightforward route, a
single container from a local exporting company,
produce grower or manufacturer would be delivered by
truck directly to the marine terminal.
2- Warehouse/consolidator: Cargo delivered from local or
nonlocal destinations may be stored temporaril y at a
warehouse or consolidated with other cargo bound for
export. Cargo may also be transferred from domestic truck
trailers to marine shipping containers at this facility.
2- Warehouse/consolidator: Cargo delivered from local or
nonlocal destinations may be stored temporaril y at a
warehouse or consolidated with other cargo bound for
export. Cargo may also be transferred from domestic truck
trailers to marine shipping containers at this facility.
3- Off-dock railyards: Some export cargo containers are
delivered by train to off-dock railyards, where they are
placed onto trucks for final delivery to marine terminals.
3- Off-dock railyards: Some export cargo containers are
delivered by train to off-dock railyards, where they are
placed onto trucks for final delivery to marine terminals.
4- On-dock railyards: Cargo
bound for export can be
delivered by train directly to
on-dock railyards, where it
is loaded onto an ocean
vessel. On-dock delivery
requires no local truck trips.
4- On-dock railyards: Cargo
bound for export can be
delivered by train directly to
on-dock railyards, where it
is loaded onto an ocean
vessel. On-dock delivery
requires no local truck trips.
5- Near-dock railyards: Export deliveries are also made to near-dock railyards,
where the cargo is picked up by truck for a short trip to the marine terminal..
5- Near-dock railyards: Export deliveries are also made to near-dock railyards,
where the cargo is picked up by truck for a short trip to the marine terminal..
6- Vessel loading: Outbound cargo is loaded onto
an ocean vessel headed for an overseas port.
6- Vessel loading: Outbound cargo is loaded onto
an ocean vessel headed for an overseas port.
19
From the port of Long Beach , containers are either transported by train or by truck to their final
destination, or to one of several intermediate destinations such as a railyard, warehouse, distribution center,
or transload facility ( a sorting, routing and short-term storage building). A containers final destination
determine exactly what path it will take once it leaves the dock.
From the port of Long Beach , containers are either transported by train or by truck to their final
destination, or to one of several intermediate destinations such as a railyard, warehouse, distribution center,
or transload facility ( a sorting, routing and short-term storage building). A containers final destination
determine exactly what path it will take once it leaves the dock.
1- Unloading the ship: When a ship
arrives at the Port, the marine
terminal operator will arrange for
unionized longshore workers to
unload the vessel. The terminal
operator directs the longshore
workers to place the cargo
containers where they belong:
on trains, trucks or on terminal
property for temporary storage.
1- Unloading the ship: When a ship
arrives at the Port, the marine
terminal operator will arrange for
unionized longshore workers to
unload the vessel. The terminal
operator directs the longshore
workers to place the cargo
containers where they belong:
on trains, trucks or on terminal
property for temporary storage.
2- Freight forwarder: A containers
movements are determined by the
cargos owner, or an industry
professional known as a freight
forwarder or logistics provider .
2- Freight forwarder: A containers
movements are determined by the
cargos owner, or an industry
professional known as a freight
forwarder or logistics provider .
3- On-dock railyard: Cargo can be placed directly onto trains at the marine terminals on-dock railyards.
3- On-dock railyard: Cargo can be placed directly onto trains at the marine terminals on-dock railyards.
4- Near-dock railyards: Cargo is often transported
by truck to larger near-dock railyards close to
the Port.
4- Near-dock railyards: Cargo is often transported
by truck to larger near-dock railyards close to
the Port.
5- Off-dock railyards: Off-dock railyards are used to coordinate rail deliveries to
non-local destinations. Containers are delivered here by truck, then sorted and
grouped by final destination. These railyards handle Port cargo as well as domestic
cargo from other sources.
5- Off-dock railyards: Off-dock railyards are used to coordinate rail deliveries to
non-local destinations. Containers are delivered here by truck, then sorted and
grouped by final destination. These railyards handle Port cargo as well as domestic
cargo from other sources.
6- Transload or storage yard: Shipping containers are often
moved initially to a transload facility where workers unload the
cargo fromthe marine container, sort it and repackage it into
larger-sized truck trailers. The larger trailers are used to transport
the cargo from the transload facility to regional distribution
centers, local stores or off-dock railyards.
6- Transload or storage yard: Shipping containers are often
moved initially to a transload facility where workers unload the
cargo fromthe marine container, sort it and repackage it into
larger-sized truck trailers. The larger trailers are used to transport
the cargo from the transload facility to regional distribution
centers, local stores or off-dock railyards.
7- Direct delivery: In the
simplest transportation
plan, a single container
imported by a company
for its own use would be
delivered by truck
directly from the marine
terminal to a local store
or factory.
7- Direct delivery: In the
simplest transportation
plan, a single container
imported by a company
for its own use would be
delivered by truck
directly from the marine
terminal to a local store
or factory.
20
Outline Outline
4. Seaports
6. Conclusion
21
Vessels Vessels
Capacity
from 100 to 14,000 TEU
Divided into 45 sections called bays
ship length can be from 3 to 25 bays
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.
Fully cellular or geared
Geared vessels can unload and load themselves
Itineraries are cyclical
Every 4 weeks:
Naples-Genoa-Barcelona-New York-Norfolk-Charleston-Naples
Where are they built?
Korea: Hyundai, Samsung, Daewoo, Hanjin
China: J iangsu, Shanghai, Xiamen, Dalian
22
2007
TEU deployed Revenue
Ocean Carrier Country in 2006 (billion $)
1. A.P. Moller-Maersk Denmark 1,600,012
2. Mediterranean Shipping Co Switzerland 937,145
3. CMA CGM France 597,677 11.8
4. Evergreen Taiwan 539,801
5. Hapag-Lloyd Germany 448,840 8.8
6. Cosco China 385,368 6.5
7. China Shipping Cont. Lines China 339,545 5.3
8. Hanjin South Korea 328,327 7.4
9. American President Lines Singapore 323,319 8.2
10. NYK Japan 313,049 25.8
11. Mitsui OSK Lines Japan 284,848 19.4
12. OOCL China (HK) 268,502 5.2
13. CSAV Chile 249,885 4.1
14. K Line Japan 241,772 13.3
15. Yang Ming Taiwan 223,192 4.1
The Shipping Line Business The Shipping Line Business
23
Mediterranean Shipping Co. Website
Number of Vessels Operated
24
Port to Port Freight Rates ($ per TEU, Sept 2008):
Asia N. America $1800 Europe Asia$1100
Asia N. America $1000 Europe Asia$1900
N. America Europe $1300
N. America Europe $1700
Mediterranean Shipping Co. Website
25
The Shipping Line Business: The Shipping Line Business:
Planning Decisions Planning Decisions
1. When to purchase/charter additional vessels?
2. What kind of vessels to purchase/charter?
3. When to sell/scrap old vessels?
4. Which vessels to sell/scrap?
5. Which ports should be served?
6. Which routes should be served?
7. Which vessels should be assigned to which routes? ( fleet deployment )
8. Scheduling the vessels assigned to each route. At what times will they
arri ve/depart from each port in the route sequence?
9. Determine performance requirements for each vessel at each port.
How fast must each vessel be served at each port it visits?
10. Negotiating vessel service agreements with seaport facilities (container
terminals).
11. Hiring crew members
Decision .
26
The Shipping Line Business: The Shipping Line Business:
Operational Decisions Operational Decisions
1. What should the freight rates be?
2. When to cancel a vessel call at a port?
3. Which containers should be loaded onto which vessel?
(applies to large shipping lines or lines belonging to an alliance)
4. How many empty containers should be loaded onto each vessel at each
port? ( empty container repositioning )
5. Where should individual containers be placed on the vessel?
( vessel stowage )
6. Assigning crew members to vessels.
Decision .
27
Because the United States imports more goods than it exports, many empty containers are sent overseas to be refilled with goods. Typically,
about a third of the containers loaded onto a ship at the Port of Long Beach will be filled with cargo, while about two-thirds will be empty.
Because the United States imports more goods than it exports, many empty containers are sent overseas to be refilled with goods. Typically,
about a third of the containers loaded onto a ship at the Port of Long Beach will be filled with cargo, while about two-thirds will be empty.
1- Delivery to local exporter : A local
exporter who needs to fill empty
containers may arrange to receive
them by truck directly from a marine
terminal, from an empty container
storage yard or from a local importer.
Direct delivery between importers and
exporters is encouraged because it
eliminates an additional truck trip to a
storage yard or marine terminal.
1- Delivery to local exporter : A local
exporter who needs to fill empty
containers may arrange to receive
them by truck directly from a marine
terminal, from an empty container
storage yard or from a local importer.
Direct delivery between importers and
exporters is encouraged because it
eliminates an additional truck trip to a
storage yard or marine terminal.
2- Empty container storage yard:
Empty containers are often
transported by truck from a transload
facility or local importer to an empty
container storage yard. From the
storage yard, the empty containers
can be transported to a marine
terminal for export, or to a local
exporter to be filled with cargo.
Empty containers are also
transported from marine terminals
to storage yards, usually when the
terminal needs more space for full,
incoming containers.
2- Empty container storage yard:
Empty containers are often
transported by truck from a transload
facility or local importer to an empty
container storage yard. From the
storage yard, the empty containers
can be transported to a marine
terminal for export, or to a local
exporter to be filled with cargo.
Empty containers are also
transported from marine terminals
to storage yards, usually when the
terminal needs more space for full,
incoming containers.
3- Direct Delivery:
The simplest route for an empty
cargo container would be a return
trip to the Port from a transload
facility or local importer after its
imported goods had been
unloaded.
3- Direct Delivery:
The simplest route for an empty
cargo container would be a return
trip to the Port from a transload
facility or local importer after its
imported goods had been
unloaded.
4- Ocean Vessel: Empty containers are
loaded onto an ocean vessel, along
with containers filled with export
goods, bound for an overseas port.
4- Ocean Vessel: Empty containers are
loaded onto an ocean vessel, along
with containers filled with export
goods, bound for an overseas port.
28
29
Outline Outline
4. Seaports
6. Conclusion
30
Introduction to Container Terminals Introduction to Container Terminals
Unloading and loading of containerships
Temporary storage of containers
Port of Hong Kong
Port of Singapore
Aerial view of
Northport's
container
terminal
31
The Container Port Business The Container Port Business
Globally, 474 million TEU worth of (empty and loaded) containers
were transferred between ships and shore in 2007.
Worlds Busiest Million TEU
Container Ports Country handled in 2007
1. Singapore Singapore 27.9
2. Shanghai China 26.2
3. Hong Kong China (HK) 24.0
4. Shenzhen China 21.1
5. Busan South Korea 13.3
6. Rotterdam Netherlands 10.8
7. Dubai UAE 10.7
8. Kaohsiung Taiwan 10.3
9. Hamburg Germany 9.9
10. Qingdao China 9.5
11. Ningbo-Zhoushan China 9.4
12. Guangzhou China 9.3
13. Los Angeles USA 8.4
14. Antwerp Belgium 8.2
15. Long Beach USA 7.3
32
The Container Port Business The Container Port Business
Million 2007
TEU handled Revenue
Terminal Operator Country in 2007 (billion $)
1. Hutchison Port Holdings China (Hong Kong) 66.3 4.9
2. PSA Corp. Singapore 58.9 3.0
3. DP World UAE 43.3 2.7
4. Cosco Pacific China 39.8 0.1
5. APM Terminals Netherlands 31.4 2.5
6. HHLA Germany 7.2 1.9
Globally, 474 million TEU worth of (empty and loaded) containers
were transferred between ships and shore in 2007.
The DP World controversy began in February 2006 and rose to
prominence as a national security debate in the United States. At
issue was the sale of port management businesses in six major U.S.
seaports to DP World, and whether such a sale would compromise
port security.
Container Terminals Container Terminals
33
Vessels
quay to yard
yard to quay
Storage
yard
Trains
import
export
transshipment
External
trucks
(XTs)
Horizontal
transport
of cargo
Container lifting &
stacking
1. 2. 3.
Terminal-owned equipment performs 3 kinds of tasks:
On-dock
rail yard
XTs
Gate
Unloading and
loading of vessels
Trains
Typicall y a
24-hour
operation
34
Port of Singapore
Land-Scarce Container Terminals
Quay cranes (QCs)
Yard
trucks
(YTs)
Rubber-tired gantry
cranes (RTGCs)
External trucks (XTs)
1.
2.
3.
Rail-mounted gantry
cranes (RMGCs)
Gate
35
Port of Singapore
Land Land- -Scarce Container Terminals Scarce Container Terminals
Cargo stacked up to
7 tiers high in large
blocks
0-3 truck traffic lanes
between blocks
Storage density:
1000-1200 TEU
per hectare
Manually operated
trucks and cranes
No on-dock rail yard
Cargo throughput:
2000-2500 TEU per
meter of wharf line
per year
Rubber-tired gantry
cranes (RTGCs)
Quay cranes (QCs)
36
Port of Hong Kong
Land Land- -Scarce Container Terminals Scarce Container Terminals
37
Straddle Carrier Straddle Carrier- -Based Container Terminals Based Container Terminals
Common on U.S. East Coast and in Europe
Cargo stacked 3 tiers high in lanes that are 1 container wide
Spaces between lanes very narrow
Storage density: 750 TEU per hectare
Manually operated straddle carriers perform operations 2 and 3
On-dock rail yard a possibility: RMGCs may be needed
Cargo throughput: 1500 TEU per meter of wharf line per year
3.
Straddle carriers
(SCs)
2.
1.
Quay cranes (QC)
Port of Hamburg
38
Common on the U.S. East Coast and in Europe
Cargo stacked 3 tiers high in lanes that are 1 container wide
Spaces between lanes very narrow
Manual/automated straddle carriers perform operations 2 and 3
3.
Straddle carriers
(SCs)
2.
1.
Quay cranes (QC)
Port of Hamburg
39
Port of Bremerhaven (Germany)
Aerial view
of
Northport's
container
terminal
40
Simulation of a terminal in which
SCs used in quay and storage yard areas
RMGCs used at on-dock rail yard to load trains
Source: HHLA website (http://hhla.de)
41
TTI/Hanjin Terminal (Seattle)
YC/SC YC/SC- -Free, Ground Free, Ground- -Based Terminals Based Terminals
Common on U.S. West Coast
Large forklifts called top-handlers and reach-stackers
stack containers up to 4 tiers high in blocks
Large spaces needed between blocks
Manually operated reach-stackers, top-handlers, side-picks,
and tractor-trailers
On-dock rail yard a possibility
3.
Quay cranes (QCs) 1.
Top- handlers
Reach-stackers
2. Yard trucks
42
Global Gateway North Terminal (Seattle)
Wheel Wheel- -Based Container Terminals Based Container Terminals
Common on U.S. West Coast
Loaded containers sitting on trailers (chassies) parked in
storage yard (stacking height = 1 tier)
Empty containers stacked up to 4 tiers high by side-picks
Manually operated equipment
On-dock rail yard a possibility
On-dock rail yard
Quay cranes (QCs)
1.
3.
Side-picks 2. Yard trucks
Top-handlers
Reach-stackers
43
Automated Container Terminals I Automated Container Terminals I
Ports of Rotterdam and Hamburg
Cargo stacked up to 5 tiers high in large blocks
Spaces between blocks very narrow
Automated guided vehicles (AGVs) perform operation 2
Automated stacking cranes (ASCs) perform operation 3 in yard
Container Terminal Altenwerder (Hamburg)
ASCs
3.
AGVs QCs
1.
RMGCs
2.
www.hhla.de www.hhla.de
44
Patrick Terminal (Brisbane, Australia)
Patrick Terminal at Port of Brisbane
Only automated SC-based terminal in the world
Cargo stacked 2 tiers high in lanes
Automated straddle carriers perform operations 2 and 3
3. Automated straddle carriers 2. 1. Quay cranes (QC)
Automated Container Terminals II Automated Container Terminals II
45
Straddle carriers and ASCs used in storage yard
RMGCs used in on-dock rail yard
Other Possibilities Other Possibilities
Source: HHLA website (http://hhla.de)
46
Container Terminal Characteristics Container Terminal Characteristics
Most terminals never close
workload processed continuously: 24 hours per day, 365 days per year
uneven distribution of workload over time (late vessel arrivals, cust. requests)
Highly uncertain equipment processing times
truck travel times affected by road traffic conditions inside terminal
crane handling times are variable
10,000+ decisions made per day
equipment dispatching, container storage location assignment, etc.
decision opportunities come with no prior warning
decisions made immediately, usually one at a time
inter-decision time highly stochastic, avg. as low as 1 sec.
Quay, yard, and gate operations highly interconnected
bottlenecks in yard late vessel departures
few or no inter-equipment buffers
47
Measures of Terminal Performance Measures of Terminal Performance
Gross crane rate (GCR)
Also known as the quay crane work rate
Avg. #QC lifts made per QC hour beside a vessel that is being worked
Average vessel turnaround time
Avg. time it takes to fully process a vessel
From time of berthing to time of un-berthing
Average external truck (XT) turnaround time
Avg. time it takes for external truck to be serviced at the terminal
Drop-off or pick-up
From time of gate entry to time of gate departure
Ability to keep vessels and trains on schedule
Consistency in performance more important than maximizing avg. performance
Another goal: keep operations on-time at minimum cost
Cost per TEU moved between ship and shore
USD $150 at U.S. ports
48
Container Terminal Planning and Design
1. Where should the terminal be located?
2. What kind of cargo will be handled (import, export, transshipment)?
3. What is the planned throughput capacity?
4. How much cargo storage capacity is needed in the yard?
5. Will there be an on-dock rail yard? A large empty container yard?
6. How much land area will the terminal occupy? What is its shape?
7. What type of container handling equipment will be used? Specs?
8. How many work shifts will there be per day?
9. Should the yard layout be parallel or perpendicular?
10. How many storage blocks should there be? What are their dimensions?
11. How many vehicle lanes should there be between the blocks?
12. How much equipment should be deployed on an average day?
Yard Trucks
(YTs)
Decision .
Vessels
Yard Cranes (YCs)
unloading
loading
Yard
Quay Cranes
(QCs)
49
Design Issue #7: Design Issue #7:
Equipment Selection and Specification Equipment Selection and Specification
Yard Equipment Type Horizontal Lifting Stacking
Transport
1. Tractor-trailers (YTs) X
2. Automated guided vehicles (AGVs) X
3. Rubber-tired gantry cranes (RTGCs) X X
4. Rail-mounted gantry cranes (RMGCs) X X
5. Automated stacking cranes (ASCs) X X
6. Bridge cranes X X
7. Top-handlers X X
8. Reach-stackers X X
9. Side-picks X X
10. Straddle carriers (SCs) X X X
11. Shuttle carriers X X
12. Automated lifting vehicles (ALVs) X X
2. 3. 3.
Specification issues for Quay Cranes Specification issues for Quay Cranes
50
Single trolley quay crane
handles one cont. at a time
Port of Long Beach
container-terminal of Bremerhaven
QC Issue A: The Double Trolley Quay Crane QC Issue A: The Double Trolley Quay Crane
51
The Double Trolley Quay Crane The Double Trolley Quay Crane
52
Double Trolley QCs and Straddle Carriers at Port of Hamburg
www.hhla.de
QC Issue B: Twin QC Issue B: Twin- -lift (two 20 lift (two 20 conts) and tandem conts) and tandem
(two 40 (two 40 conts) spreaders conts) spreaders
53
54
Design Issue #10.1: Block Width Design Issue #10.1: Block Width
What is the optimal width for
the storage blocks?
(storage capacity is unchanged)
Block Width: Tradeoffs Block Width: Tradeoffs
55
10 rows per block (3 zones)
3 rows per block (10 zones) 5 rows per block (6 zones)
6 rows per block (5 zones)
?
56
Group 2: scenarios 3-4
13
18
23
28
33
38
1 3 5 7 9 11 13 15
Rows per bl ock (bl ock wi dth)
G
r
o
s
s

c
r
a
n
e

r
a
t
e

(
Q
C

l
i
f
t
s
/
h
r
)
Less equip
More equip
13
18
23
28
33
38
1 3 5 7 9 11 13 15
G
r
o
s
s

c
r
a
n
e

r
a
t
e

(
Q
C

l
i
f
t
s
/
h
r
)
Less equip
More equip
13
18
23
28
33
38
1 3 5 7 9 11 13 15
G
r
o
s
s

c
r
a
n
e

r
a
t
e

(
Q
C

l
i
f
t
s
/
h
r
)
Less equip
More equip
Group 5: scenario 11
13
18
23
28
33
38
1 3 5 7 9 11 13 15
G
r
o
s
s

c
r
a
n
e

r
a
t
e

(
Q
C

l
i
f
t
s
/
h
r
)
Less equip
More equip
Group 6: scenario 12
13
18
23
28
33
38
1 3 5 7 9 11 13 15
G
r
o
s
s

c
r
a
n
e

r
a
t
e

(
Q
C

l
i
f
t
s
/
h
r
)
Less equip
More equip
13
18
23
28
33
38
1 3 5 7 9 11 13 15
G
r
o
s
s

c
r
a
n
e

r
a
t
e

(
Q
C

l
i
f
t
s
/
h
r
)
Less equip
More equip
Block Width: Results
Most
Oblong
Most
Square
From: M.E.H. Petering, Effect of block width and
storage yard layout on marine container terminal
performance, Transportation Research E, doi:
10.1016/j.tre.2008.11.004, accepted Nov 2008.
57
Design Issue #10.2: Block Length Design Issue #10.2: Block Length
What is the optimal length for
the storage blocks?
(storage capacity is unchanged)
58
Longer blocks
Fewer vertical traffic lanes
Less land area
More congestion
Shorter blocks
More vertical traffic lanes
More land area
Less congestion
Block Length: Tradeoffs
Design Issue #11: Vehicle Lanes Design Issue #11: Vehicle Lanes
59
Container Terminal Operations Management Container Terminal Operations Management
60
Vessels
Quay Cranes (QCs)
Yard Cranes (YCs)
unloading
loading
Yard
1. Allocation of berths to arriving vessels 000010
2. Allocation of QCs to docked vessels 000010
3. QC scheduling and job sequencing 10 (off-line) or 10,000 (real-time)
4. Container storage location assignment 010,000
5. Container retrieval location assignment 010,000
6. YC job assignment 010,000
7. Inter-zone YC deployment 010,000
8. YT job assignment 010,000
9. YT routing 100,000
10. Selecting appointment times for external trucks 010,000
Yard Trucks (YTs)
Decision Frequency (decs/day)
Land-scarce
terminal:
61
Terminal Manager Terminal Manager s Goal: s Goal:
Find solutions for operations Find solutions for operations
management (OM) issues that management (OM) issues that
(1) are viable in a real (1) are viable in a real - -time setting time setting
(2) maximize performance (2) maximize performance (e.g. gross crane rate) (e.g. gross crane rate)
GCR =
total # QC lifts made
total hours of QC time beside a busy berth
62
Terminal Operating System (TOS) Terminal Operating System (TOS)
TOS is idle
TOS deciding next
activity for a particular
QC/YC/YT/container
TOS manipulating data internally
TOS receiving input:
- QC/YC/YT task completed
- Vessel arri ves
(new jobs added to system)
- XT arrives
(new job added to system)
storage
locations
YC
disp
YC
deploy
YT
disp
To be viable, a TOS must:
Use less than 1 second of
CPU time per decision on
100% of occasions
Avoid deadlocks on 100%
of occasions
63
OM Issues #1 and #2: Terminal, Berth, and OM Issues #1 and #2: Terminal, Berth, and
Quay Crane Allocation to Arriving Vessels Quay Crane Allocation to Arriving Vessels
Where should an
arriving vessel be
berthed? (Which
terminal, which berth?)
Which quay
cranes should
work on the
vessel?
64
Terminal, Berth, and Quay Crane Allocation: Terminal, Berth, and Quay Crane Allocation:
A Multi A Multi - -objective Problem objective Problem
Objectives:
(1) Minimize vessel turnaround times
(2) Maximize berth utilization and terminal throughput
(3) Maximize satisfaction of customer shipping lines
(4) Minimize cost (labor and equipment used) when processing vessels
(5) Maximize efficiency of vessel-to-vessel transshipment operations
Constraints:
Water depth
Berth and vessel lengths
Quay crane availability and specs
Vessel schedules
Transshipment requests
65
Once a vessel is secured
alongside the terminal,
(A) Which containers are
moved by which QC?
(B) What is the sequence of
moves for each QC?
OM Issue #3: OM Issue #3:
QC Scheduling and J ob Sequencing QC Scheduling and J ob Sequencing
Objectives:
Minimize vessel turnaround time
Unload hot containers quickly
Minimize cost of unloading and
loading vessel
66
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)
67
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!
68
QC QC Scheduling: Current Practice Scheduling: Current Practice
Perform a Crane Split:
(a set partitioning problem)
Vessel bays are partitioned into
contiguous areas
Each area is served by one crane
Partitioning done so that the time
when last QC finishes is minimized
Each QC works the bays in its area
from L to R
69
QC QC Scheduling: The Crane Split Scheduling: The Crane Split
(Equal Crane Speeds) (Equal Crane Speeds)
70
Containers to be moved Time required (min)
Bay # Unloading Loading Total QC1 QC2 QC3 QC4
2 15 19 34 82 102 102 136
3 9 8 17 41 51 51 68
4 66 52 118 283 354 354 472
7 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
(Unequal Crane Speeds) (Unequal Crane Speeds)
71
Containers to be moved Time required (min)
Bay # Unloading Loading Total QC1 QC2 QC3 QC4
2 15 19 34 82 102 102 136
3 9 8 17 41 51 51 68
4 66 52 118 283 354 354 472
7 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
Optimal solution: 574 minutes is the minimum
vessel turnaround time
(Unequal Crane Speeds) (Unequal Crane Speeds)
Yard Control Issues Yard Control Issues
72
Zone 1
Zone 2
Zone 3
Zone 4
Quay crane: 1 2 3 4 5 6 7 8 9
Vessel 1
Vessel 3
Vessel 2
1 2
20 21
3
13
8 7
14
4
5 6
9 10 11 12
15 16 17 18 19
22 24
Block 1 Bk 2 Bk 3
Bk 4 Bk 5 Bk 6
Bk 7 Bk 8 Bk 9
Bk 10 Bk 11 Bk 12
cross-gantry
linear gantry
?
? ?
? ? ?
? ? ? ?
23
? ?
?
? ? ? ?
?
? ? ?
?
Yard Crane Yard Truck
73
Selection of Cargo Storage Locations Selection of Cargo Storage Locations
Where should containers be
placed in the yard upon their
arrival?
(e.g. after being unloaded from a vessel)
74
I. Re-marshalling strategy
Containers have multiple places of rest
II. Sort and store strategy
Containers have a single place of rest
Containers stored based on attributes (e.g. length, height,
weight class, loading vessel, destination port)
Containers with similar attributes stored in same stack
Two versions:
1) Storage locations determined off-line in advance
2) Storage locations determined in real-time
immediately after container is discharged
Container Storage Strategies Container Storage Strategies
75
Possible objectives to pursue Possible objectives to pursue
1. Minimize container travel distance
2. Minimize congestion in vicinity of storage locations
3. Minimize number of times each container is touched
Container Storage: Competing Objectives Container Storage: Competing Objectives
Not all objectives can be pursued simultaneously.
Thus, managers need to determine which objectives
are most important!! This is not easy!
76
Zone 1
Zone 2
Zone 3
Zone 4
Quay crane: 1 2 3 4 5 6 7 8 9
Vessel 1
Vessel 3
Vessel 2
1 2
20 21
3
13
8 7
14
4
5 6
9 10 11 12
15 16 17 18 19
22 23 24
Block 1 Bk 2 Bk 3
Bk 4 Bk 5 Bk 6
Bk 7 Bk 8 Bk 9
Bk 10 Bk 11 Bk 12
? ? ? ?
Which stack in the yard, among those which are eligible,
should provide the container(s) loaded by a QC ?
?
OM Issue #5: Container Retrieval Location Assignment OM Issue #5: Container Retrieval Location Assignment
OM Issue #6: Yard Crane Job Assignment OM Issue #6: Yard Crane Job Assignment
77
Zone 1
Zone 2
Zone 3
Zone 4
Vessel 1
Vessel 3
Vessel 2
1 2
20 21
3
13
8 7
14
4
5 6
9 10 11 12
15 16 17 18 19
24
Block 1 Bk 2 Bk 3
Bk 4 Bk 5 Bk 6
Bk 7 Bk 8 Bk 9
Bk 10 Bk 11 Bk 12
? ? ? ?
22 23
?
(1) When a YC becomes free, which YT does it serve next?
(2) How to avoid deadlocks when YCs are working in close proximity
and containers halfway between them need to be moved?
?
OM Issue #8: YT Job Assignment OM Issue #8: YT Job Assignment
78
(2) When to carry two 20 containers?
(3) Should YTs be pooled at the QC, vessel, or terminal level?
Zone 1
Zone 2
Zone 3
Zone 4
QC: 1 2 3 4 5 6 7 8 9
Vessel 1
Vessel 3
Vessel 2
1 2
20 21
3
13
8 7
14
4 5 6
9 10 11 12
15 16 17 18 19
22 24
Block 1 Bk 2 Bk 3
Bk 4 Bk 5 Bk 6
Bk 7 Bk 8 Bk 9
Bk 10 Bk 11 Bk 12
23
Q1:24U
Q1:25U
Q1:26U
Q1:27U
...
Q2:22U
Q2:23U
Q2:24U
Q2:25U
...
Q3:25U
Q3:26U
Q3:27U
Q3:28U
...
Q4:89L
Q4:90L
Q4:91L
Q4:92L
...
Q5:89L
Q5:90L
Q5:91L
Q5:92L
...
Q6:88L
Q6:89L
Q6:90L
Q6:91L
...
Q7:90L
Q7:91L
Q7:92L
Q7:93L
...
Q8:75U
Q8:76U
Q8:77U
Q8:78U
...
Q9:71U
Q9:72U
Q9:73U
Q9:74U
...
?
(1) When a YT becomes free, what should it do next?
?
?
Pending
QC jobs
QC jobs
already
assigned
to YTs
79
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?
Appointment System for External Trucks Appointment System for External Trucks
Global Gateway North Terminal, Seattle
80
Appointment system should:
automatically generate appointment times for customers who call the
terminal or log onto the internet
determine the number of appointments to be made for a given region
of the container yard for a given time period
minimize average truck service time at the terminal
minimize truck congestion overflow into local highway system
maximize gate throughput
enhance yard and vessel operations in the container terminal
OM Issue #10: XT Appointment System OM Issue #10: XT Appointment System
Other Container Terminal Issues Other Container Terminal Issues
81
Vessels
Quay Cranes (QCs)
Yard Cranes (YCs)
unloading
loading
Yard
1. Labor (union or non-union)
2. Container identification and tracking (OCR, RFID)
3. Equipment identification and tracking (GPS, local radar, RFID)
4. Customs
5. Security (scanning equipment, manual inspections)
6. Negotiating service agreements with shipping lines
7. Negotiating lease rates with public municipalities
8. Purchasing/developing a terminal operating system (TOS)
9. Tactical issues: when to purchase more equipment (QCs, YCs, YTs)
Yard Trucks (YTs)
Issue .
82
Outline Outline
4. Seaports
6. Conclusion
83
Railway Container Transportation Railway Container Transportation
84
2007
North American TEU moved Revenue
Railway Operator Country in 2007 (billion $)
1. BNSF USA 5,065,005
2. Union Pacific USA 3,453,000
3. Norfolk Southern USA 3,120,000
4. CSX Corp. USA 2,111,000
5. Canadian National Canada 1,324,000
6. Canadian Pacific Canada 1,238,100
7. Kansas City Southern USA 526,370
85
BNSF Intermodal Network
Union Pacifics intermodal lanes, 2009 86
87
Union Pacific Intermodal Network, 2008
88
Inland (Rail) Container Terminals Inland (Rail) Container Terminals
Transferring containers
between trains and
trucks
Unloading and loading
of intermodal trains
Temporary storage of
containers Port of Long Beach
Frankfurt am Main East
Rochelle, Illinois
89
Outline Outline
4. Seaports
6. Conclusion
90
Container shipping supplies cities and their inhabitants with
finished consumer goods
Chicago: inland container shipping hub of the USA
Milwaukee: CP Canadian Pacific rail facility at the Port of
Milwaukee
Congestion
Pollution
Maritime shipping constitutes 4.5% of global CO2 emissions
Containerization Impact on Cities Containerization Impact on Cities
91
Inspired architectural innovation
Containerization Impact on Cities Containerization Impact on Cities
92
Literature on Container Terminal Ops. Literature on Container Terminal Ops.
Briskorn, D., Drexl, A. and Hartmann, S. (2006) Inventory-based dispatching of automated guided vehicles on
container terminals.OR Spectrum, 28, 611-630.
Dekker, R., P. Voogd, van Asperen, E. (2006). "Advanced methods for container stacking." OR Spectrum V28(4).
Grunow, M., Gnther, H.-O. and Lehmann, M. (2004). Dispatching multi-load AGVs in highly automated seaport
container terminals.OR Spectrum, 26, 211-235.
Grunow, M., Gnther, H.-O. and Lehmann, M. (2006). Strategies for dispatching AGVs at automated seaport
container terminals.OR Spectrum, 28, 587-610
Hussein, M. (2010). Efficient container handling systems and crane scheduling algorithms for seaport container
terminal. Industrial and Manufacturing Engineering Department. University of Wisconsin-Milwaukee
Kim, K. H., and Bae, J . W. (2004). "A Look-Ahead Dispatching Method for Automated Guided Vehicles in Automated
Port Container Terminals." Transportation Science, 38(2), 224-234.
Kim, K. H., and Bae, J . W. (1998). "Re-marshaling export containers in port container terminals." Computers &
Industrial Engineering, 35(3-4), 655-658.
Kim, K. H., J eon, S. M., and Ryu, K. R. (2006). "Deadlock prevention for automated guided vehicles in automated
container terminals." OR Spectrum, V28(4), 659-679.
Kim, K. H., Kang, J . S., and Ryu, K. R. (2004). "A beam search algorithm for the load sequencing of outbound
containers in port container terminals." OR Spectrum, V26(1), 93-116.
Kim, K. H., and Kim, H. B. (1998). "The optimal determination of the space requirement and the number of transfer
cranes for import containers." Computers & Industrial Engineering, 35(3-4), 427-430.
Kim, K. H., and Kim, H. B. (2002). "The optimal sizing of the storage space and handling facilities for import
containers." Transportation Research Part B: Methodological, 36(9), 821-835.
Kim, K. H., and Kim, H. B. (1999). "Segregating space allocation models for container inventories in port container
terminals." International Journal of Production Economics, 59(1-3), 415-423.
Murty, K. G., J . Liu, et al. (2005). "A decision support system for operations in a container terminal." Decision
Murty, K. G., Y.-W. Wan, et al. (2005). "Hongkong International Terminals gains elastic capacity using a data-i
Petering, M. E. H. (2009). Effect of block width and storage yard layout on marine container terminal performa
Stahlbock, R. and Vo, S. (2008) Operations research at container terminals: a literature update.OR Spectrum, 30,
1-52.
Steenken, D., Vo, S. and Stahlbock, R. (2004) Container terminal operation and operations research - a
classification and literature review.OR Spectrum, 26, 3-49.
Vis, I. F. A. and de Koster, R. (2003). Transshipment of containers at a container terminal: an overview.European
J ournal of Operational Research, 147, 1-16.
Acknowledgment Acknowledgment
Editor : Mazen I. Hussein, Industrial and Manufacturing Engineering Department, University of Wisconsin-Milwaukee.
Grateful acknowledgment is herewith made for the cooperation and permission to
us the materials and photos from the following personnel/websites/institutes:
Alex Klein / www.renaissanceronin.wordpress.com
American President Lines Ltd / www.apl.com
Burlington Northern Santa Fe Railway / www.bnsf.com
Center for Disease Control and Prevention / www.cdc.gov
containershipping.nl / www.containershipping.nl
Danny Cornelissen-Maritime Photographer/ www.portpictures.nl
FRANCETRUCK / og@francetruck.com
Great Lakes St. Lawrence Seaway System/ www.greatlakes-seaway.com
Hamburger Hafen und Logistik AG / www.hhla.de
Hapag-Lloyd / www.hapag-lloyd.com
KOCKS / www.kockskrane.de
Mediterranean Shipping Company MSC / www.mscgva.ch
merriam-webster / www.visualdictionaryonline.com
Port of Brisbane Pty Ltd / www.portbris.com.au
Port of Long Beach/ www.polb.com/default.asp
Robert West Milwaukee School of Engineering / westr@msoe.edu
Swedish Timars group / www.timars.se
VDL Containersystemen / www.vdlcontainersystemen.com
Webmaster / www.infovisual.info
Wikimedia
Wikipedia
Union Pacific / www.up.com
93
94
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