Capacity Allocation For Container Ships Based On Revenue Management

With the container liner shipping industry increasingly fierce competition in international container freight rate continue to fall,but the bunker price,port surcharges cost is increasing year by year.Due to the imbalance of world trade,the cost of transporting empty containers is also increasing.In this case,simply consider raising the rate of container loading slot allocation model is no longer applicable in such a competitive market,in order to achieve the goal of increasing profits,shipping companies should apply the concept of revenue management,broken down to a reasonable allocation for the accurate market space,try to carry a higher rate of contribution margin goods,in order to achieve the maximum benefit to avoid the risk of fluctuations in freight rates.Since the marginal cost of container liner shipping has the characteristics of a small,relative to the fixed cost is almost negligible,and therefore the use of revenue management can help maximize the return shipping companies realize that making profit maximization goals.Firstly,basic concepts of revenue management and revenue management features are introduced.Then the thesis introduces the characteristics of container revenue management and analyze the common issues and difference between revenue management of container shipping business and that of air transport.The thesis also describes and analyzes various factor affecting container ship capacity allocation problem in terms of applying the concept of revenue management.Furthermore,taking into consideration of empty containers,a real-world case study is performed by using LINGO11.0 software analysis so that the optimization space allocation decisions are reached.Last,sensitivity analysis for different variables is implemented,and revenue management liner shipping capacity allocation problem obtains deeper understanding and awareness.