Research Article

Yield Management by Reconstruction of Cargo Contribution for Container Shipping

Table 1

Previous literature report of YM for container shipping (source: summarized by the authors).

Literature reportsYM problemsMain contributionLimitation

Brooks and ButtonDynamic pricing strategyAnalyzed the pricing structure and proposed a potential application of yield management in container shippingProposed an overall application suggestion, without clear solution
HaAllocation control and pricingProposed an allocation control and pricing modelEvaluated revenue while cost was ignored, and the special characteristics of shipping were not reflected
MaragosAllocation control and pricingProposed an allocation control and pricing modelEvaluated revenue while cost was ignored, and the special characteristics of shipping were not reflected
Ting and TzengAllocation managementProposed a conceptual model for liner shipping revenue management (LSRM) and recognized the special characteristics of empty container reposition of YM for container shippingThe empty container reposition fee, which is a variable cost, was calculated repeatedly in the objective function while cargo costs, transportation costs, equipment costs, vessel costs, and fuel cost were not reflected
Gordon et al.Allocation managementAnalyzed the weakness of the existing revenue measure and concluded that factors such as cost and utilization should be incorporatedThe proposed new yield optimization measure still focuses on the increase in revenue per capacity unit
Zurheide and Fischer [23]Allocation managementProposed a slot allocation model to maximize expected profits through booking limits to different demand segmentsThe empty container reposition cost, container leasing, and storage costs were reflected in the slot allocation without distribution in the whole service network
Zurheide and Fischer [24]Booking order controlPresented a booking limit strategy, nested booking limit strategy, and bid-price strategy based on the booking class defined by combined segmentationThe slot allocation model was evaluated by the average price and average cost without considering cost logic
Wang et al. [25]Seasonal revenue problemProposed multitype container selection, routing, assignment, and sailing speed in each shipping leg of the service networkThe model focused on maximizing seasonal profit; however, only operating cost was evaluated without considering cost logic.
Feng and Chang [26]Allocation managementOptimized the space allocation model so that the same model is applicable to the complex port-to-port slot distribution networks of Asian portCosts were not fully evaluated and empty container reposition cost was simply apportioned in the network without considering cost logic
Lee et al. [27]Allocation managementProposed control model for allocation distribution and recognized the special characteristics of empty container reposition of YM for container shippingCosts were not fully evaluated and empty container reposition cost was simply apportioned in the network without considering cost logic
Lu and Mu [28]Slot reallocation planningProposed an allocation control model under the circumstances of vessel delay and port operation restriction and recognized the special characteristics of empty container reposition of YM for container shippingAvailable only under specific circumstances, and empty container reposition cost was simply apportioned in the network without considering cost logic
Liu and Yang [29]Allocation management specially for sea-rail intermodal transportationProposed a two-stage slot control optimization mode to maximize expected revenueCosts were not clearly identified and calculated for cargo contribution analysis, and the YM objective was not well reflected in the objective function