Use of Empty Containers to Move Regional Cargo in Port Hinterland Modeling and Optimization

Containerization has greatly reduced the cost of international trade by increasing the speed of cargo turnover. However, many empty container movements have been generated by the imbalance of international cargo movements between ports and hinterland importers and exporters. Currently, loaded containers carry only import and export cargo. Little work has been done on the utilization of empty containers to carry regional cargo. There is great potential to use empty containers to carry regional cargo. This study developed a mathematical model of the use of empty containers to carry regional cargo. The model considered quantities of cargo located at the origins and destinations of empty containers, together with cargo that could be consolidated en route. The financial return on investment was calculated as a benefit cost ratio to determine the suitability of the available empty containers to carry regional cargo. Operational data from a haulage company were used as a case study to increase the reliability of the results. It was concluded that if managed optimally, carrying regional cargo in empty containers should be profitable. In the particular case reported in this paper, operational profit was guaranteed when a haulage benefit cost ratio of 3.05 was achieved.