ContainerShippingCourseModule PDF

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.
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.
Introduction to maritime shipping

Introduction to container shipping
Container vessels and shipping lines
Seaports
Railway container transportation / facilities
Conclusion
Outline
1.
2.
3.
4.
5.
6.

Seaports
Conclusion
Introduction to Maritime Shipping

z
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.
Water transportation
is less costly and
more energy efficient
than other modes of
transport:
4
http://www.greatlakes-seaway.com/en/aboutus/competitiveness.html
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)
5
Maritime Shipping: Major Players
Shippers (importers/exporters)
Shipping lines (ocean carriers, vessel operators)
Seaport terminal operators
(Nike, Wal-Mart, ExxonMobil, Toyota)

(Maersk Sealand, MSC, CMA CGM, Evergreen, Hapag Lloyd)
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
Trucking companies (motor vehicle carriers)
(Union Pacific, BNSF, CSX, Norfolk Southern, CN, CP)
Outline
1.
2.
3.
4.
5.
6.

Seaports
Conclusion
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
8
Port of Long Beach
Container Shipping
Port of Long Beach
Frankfurt am Main East
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
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)
11
Containers
Hoisted, lowered, and secured at the corners
12
Containers
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
13
Containers

(1) twist locks

14
Containers

(1) twist locks

15
Containers

(1) twist locks

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
Port of Long Beach Website

17
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

18
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,

19
Outline
1.
2.
3.
4.
5.
6.

Seaports
Conclusion
20
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: Jiangsu, Shanghai, Xiamen, Dalian
21
The Shipping Line Business

Ocean Carrier
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

Number of Vessels Operated
Mediterranean Shipping Co. Website
23

Port to Port Freight Rates ($ per TEU, Sept 2008):
Asia N. America $1800
Asia N. America $1000
N. America
N. America
Europe Asia $1100

Europe Asia $1900
Europe $1300
Europe $1700
Mediterranean Shipping Co. Website
24
The Shipping Line Business:

Planning Decisions
Decision
.
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
arrive/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
25
The Shipping Line Business:

Operational Decisions
Decision
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.
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.

27
28
Outline
1.
2.
3.
4.
5.
6.

Seaports
Conclusion
29
Introduction to Container Terminals

Aerial view of
Northport's
Port of Hong Kong
container
terminal
Unloading and loading of containerships

Temporary storage of containers
Port of Singapore
30
The Container Port Business

Worlds Busiest
Container Ports
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
Globally, 474 million TEU worth of (empty and loaded) containers

were transferred between ships and shore in 2007.
31
The Container Port Business

Million
TEU handled
in 2007
Terminal Operator
Country
1.
2.
3.
4.
5.
6.
China (Hong Kong)

Singapore
UAE
China
Netherlands
Germany
Hutchison Port Holdings

PSA Corp.
DP World
Cosco Pacific
APM Terminals
HHLA
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
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
32
port security.
Container Terminals
import
export
Typically a
24-hour
operation
transshipment
Terminal-owned equipment performs 3 kinds of tasks:

1. Unloading and
loading of vessels
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
Land-Scarce Container Terminals

1.
Rubber-tired gantry 3. Rail-mounted gantry

cranes (RTGCs)
cranes (RMGCs)
Quay cranes (QCs)
Yard
trucks
(YTs) 2.
Gate
Port of Singapore
External trucks (XTs)
34

Cargo stacked up to
7 tiers high in large
blocks
Quay cranes (QCs)
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)
Port of Singapore
35
36
Port of Hong Kong
Straddle Carrier-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
1. Quay cranes (QC)
2.
3.
Straddle carriers
(SCs)
Port of Hamburg
37
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
1. Quay cranes (QC)
2.
3.
Straddle carriers
(SCs)
Port of Hamburg
38
Port of Bremerhaven (Germany)
Aerial view
of
Northport's
container
terminal
39

Simulation of a terminal in which
SCs used in quay and storage yard areas
RMGCs used at on-dock rail yard to load trains
40
Source: HHLA website (http://hhla.de)
YC/SC-Free, Ground-Based Terminals
1.
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
Quay cranes (QCs)
3. Reach-stackers
Top- handlers
2. Yard trucks
41
TTI/Hanjin Terminal (Seattle)
Wheel-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
1.
Quay cranes (QCs)
Top-handlers
3.
2. Yard trucks
Side-picks
On-dock rail yard
Reach-stackers
Global Gateway North Terminal (Seattle)
42
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
RMGCs 3.
ASCs
www.hhla.de
www.hhla.de
1.
QCs
2. AGVs
Container Terminal Altenwerder (Hamburg)

43
Automated Container Terminals II
1.
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
Quay cranes (QC)
2.
3. Automated straddle carriers
Patrick Terminal (Brisbane, Australia)
44
Other Possibilities
Straddle carriers and ASCs used in storage yard
RMGCs used in on-dock rail yard
Source: HHLA website (http://hhla.de)

45
Container Terminal Characteristics

Most terminals never close
z
z
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

z
z
truck travel times affected by road traffic conditions inside terminal

crane handling times are variable
10,000+ decisions made per day

z
z
z
z
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

z
z
bottlenecks in yard late vessel departures

few or no inter-equipment buffers
46
Measures of Terminal Performance

Gross crane rate (GCR)
z
z
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

z
z
Avg. time it takes to fully process a vessel

From time of berthing to time of un-berthing
Average external truck (XT) turnaround time

z
z
z
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

z
z
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

z
USD $150 at U.S. ports

47
Container Terminal Planning and Design

Decision
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)
Quay Cranes
(QCs)
Yard Cranes (YCs)
unloading
Vessels
loading
Yard
48
Design Issue #7:

Equipment Selection and Specification
2.
Yard Equipment Type
1.
2.
Tractor-trailers (YTs)
Automated guided vehicles (AGVs)
3.
4.
5.
6.
7.
8.
9.
Rubber-tired gantry cranes (RTGCs)

Rail-mounted gantry cranes (RMGCs)
Automated stacking cranes (ASCs)
Bridge cranes
Top-handlers
Reach-stackers
Side-picks
10. Straddle carriers (SCs)

11. Shuttle carriers
12. Automated lifting vehicles (ALVs)
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
Specification issues for Quay Cranes
container-terminal of Bremerhaven
Port of Long Beach
Single trolley quay crane

handles one cont. at a time
50
QC Issue A: The Double Trolley Quay Crane
51
The Double Trolley Quay Crane
www.hhla.de
Double Trolley QCs and Straddle Carriers at Port of Hamburg
52
QC Issue B: Twin-lift (two 20 conts) and tandem

(two 40 conts) spreaders
53
Design Issue #10.1: Block Width
What is the optimal width for

the storage blocks?
(storage capacity is unchanged)
54
Block Width: Tradeoffs

3 rows per block (10 zones)
55
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.
Block Width: Results

Most
Oblong
Gross crane rate

(QC lifts/hr)
33
28
Less equip
More equip
23
18
Group 5: scenario 11
38
Gross crane rate
(QC lifts/hr)
Group 2: scenarios 3-4

38
13
33
28
Less equip
More equip
23
18
13
11
13
15
Rows per block (block width)
11
13
15
38
33
28
Less equip
More equip
23
18
Gross crane rate

(QC lifts/hr)
Gross crane rate

(QC lifts/hr)
Group 6: scenario 12
38
13
33
28
Less equip
More equip
23
18
13
11
13
15
11
13
15
Most
Square

38
33
28
Less equip
More equip
23
18
13
Gross crane rate

(QC lifts/hr)
38
Gross crane rate
(QC lifts/hr)
33
28
Less equip
More equip
23
18
13
11
13
15
11
13
15
56
Design Issue #10.2: Block Length
What is the optimal length for

the storage blocks?
(storage capacity is unchanged)
57
Block Length: Tradeoffs
Longer blocks
Fewer vertical traffic lanes
Less land area
More congestion
Shorter blocks
More vertical traffic lanes
More land area
Less congestion
58
Design Issue #11: Vehicle Lanes
59
Container Terminal Operations Management

Decision
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Frequency (decs/day)
Allocation of berths to arriving vessels

000010
Allocation of QCs to docked vessels
000010
QC scheduling and job sequencing
10 (off-line) or 10,000 (real-time)
Container storage location assignment
010,000
Container retrieval location assignment
010,000
YC job assignment
010,000
Inter-zone YC deployment
010,000
YT job assignment
010,000
YT routing
100,000
Selecting appointment times for external trucks
010,000
Quay Cranes (QCs)
Yard Trucks (YTs)
Land-scarce
terminal:
Yard Cranes (YCs)
unloading
Vessels
loading
Yard
60
Terminal Managers Goal:

Find solutions for operations
management (OM) issues that
(1) are viable in a real-time setting
(2) maximize performance (e.g. gross crane rate)
GCR =
total # QC lifts made

total hours of QC time beside a busy berth
61
Terminal Operating System (TOS)

storage YC
YC
YT
locations disp deploy disp
TOS deciding next
activity for a particular
QC/YC/YT/container
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
TOS receiving input:

- QC/YC/YT task completed
- Vessel arrives
(new jobs added to system)
TOS is idle
- XT arrives
(new job added to system)
TOS manipulating data internally

62
OM Issues #1 and #2: Terminal, Berth, and

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?
63
Terminal, Berth, and Quay Crane Allocation:

A Multi-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
64
OM Issue #3:
QC Scheduling and Job Sequencing
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?
Objectives:
Minimize vessel turnaround time
Unload hot containers quickly
Minimize cost of unloading and

loading vessel
65
OM Issue #3:
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:
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
QC 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
68
QC Scheduling: The Crane Split

(Equal Crane Speeds)
69

(Unequal Crane Speeds)
Containers to be moved
Time required (min)
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

(Unequal Crane Speeds)
Optimal solution: 574 minutes is the minimum
vessel turnaround time
Containers to be moved
Bay #
Unloading
Loading
15
Time required (min)
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
Yard Control Issues

?
?
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
Where should containers be

placed in the yard upon their
arrival?
(e.g. after being unloaded from a vessel)
73
Container Storage Strategies

I.
Re-marshalling strategy
II.
Containers have multiple places of rest
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
74
Container Storage: Competing Objectives

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
Not all objectives can be pursued simultaneously.

Thus, managers need to determine which objectives
are most important!! This is not easy!
75
OM Issue #5: Container Retrieval Location Assignment

stack in the yard, among those which are eligible,
? Which
should provide the container(s) loaded by a QC ?
Quay crane:
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
OM Issue #6: Yard Crane Job Assignment
(1) When a YC becomes free, which YT does it serve next?
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
OM Issue #8: YT Job Assignment

?
(1) When a YT becomes free, what should it do next?

(2) When to carry two 20 containers?
(3) Should YTs be pooled at the QC, vessel, or terminal level?
Pending
QC jobs
QC:
5 6 7
Vessel 2
Vessel 3
Vessel 1
Zone 1
Zone 2
Q1:24U Q2:22U Q3:25U

Block
1
Q4:89L Q5:89L Q6:88L Q7:90L
Q9:71U
BkQ8:75U
3
Q1:25U Q2:23U Q3:26U

1
2
Q1:26U Q2:24U Q3:27U
Q4:90L Q5:90L Q6:89L Q7:91L

4
3 Q6:90L Q7:92L
Q4:91L Q5:91L
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
OM Issue #10: XT Appointment System

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
80
Other Container Terminal Issues

Issue
1.
2.
3.
4.
5.
6.
7.
8.
9.
Labor (union or non-union)

Container identification and tracking (OCR, RFID)
Equipment identification and tracking (GPS, local radar, RFID)
Customs
Security (scanning equipment, manual inspections)
Negotiating service agreements with shipping lines
Negotiating lease rates with public municipalities
Purchasing/developing a terminal operating system (TOS)
Tactical issues: when to purchase more equipment (QCs, YCs, YTs)
Quay Cranes (QCs)
Yard Trucks (YTs)
Yard Cranes (YCs)
unloading
Vessels
loading
Yard
81
Outline
1.
2.
3.
4.
5.
6.

Seaports
Conclusion
82
Railway Container Transportation
83

North American
Railway Operator
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
BNSF Intermodal Network
85
Union Pacifics intermodal lanes, 2009
86
87
Union Pacific Intermodal Network, 2008
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
88
Outline
1.
2.
3.
4.
5.
6.

Seaports
Conclusion
89
Containerization Impact on Cities
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
90
Containerization Impact on Cities
Inspired architectural innovation
91
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., Jeon, 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
92
Journal of Operational Research, 147, 1-16.
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
The End!
94

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ContainerShippingCourseModule PDF

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INTRODUCTION TO THE

Author: Matthew E. H. Petering

Principal Investigator: Alan J. Horowitz

Introduction to the Container Shipping Industry

Introduction to maritime shipping

Introduction to maritime shipping

Introduction to Maritime Shipping

Ships carry 99% of overseas trade in volume terms

90% of all international trade moves by sea

Globally, the ton-miles of freight moved by water

Maritime Shipping: Cargo Types

(salt, grain, minerals, cement/gypsum, coal byproducts)

(crude oil, gasoline, chemicals, liquefied natural gas)

(steel, lumber, heavy machinery)

Maritime Shipping: Major Players

Shipping lines (ocean carriers, vessel operators)

Seaport terminal operators

(Nike, Wal-Mart, ExxonMobil, Toyota)

Trucking companies (motor vehicle carriers)

(Union Pacific, BNSF, CSX, Norfolk Southern, CN, CP)

Introduction to maritime shipping

Port of Long Beach

Frankfurt am Main East

Where are they manufactured?

Hoisted, lowered, and secured at the corners

Hoisted, lowered, and secured at the corners

Secured aboard vessels, trains, truck chassies using

(2) lashing rods (vessels only)

Hoisted, lowered, and secured at the corners

Secured aboard vessels, trains, truck chassies using

(2) lashing rods (vessels only)

Hoisted, lowered, and secured at the corners

Secured aboard vessels, trains, truck chassies using

(2) lashing rods (vessels only)

Hoisted, lowered, and secured at the corners

Secured aboard vessels, trains, truck chassies using

(2) lashing rods (vessels only)

Port of Long Beach Website

Port of Long Beach Website

Port of Long Beach Website

Introduction to maritime shipping

Divided into 45 sections called bays

Fully cellular or geared

Itineraries are cyclical

Where are they built?

The Shipping Line Business

The Shipping Line Business

Mediterranean Shipping Co. Website

The Shipping Line Business

Europe Asia $1100

Mediterranean Shipping Co. Website

The Shipping Line Business:

The Shipping Line Business:

(applies to large shipping lines or lines belonging to an alliance)

Port of Long Beach Website

The Shipping Line Business

Introduction to maritime shipping

Introduction to Container Terminals

Port of Hong Kong

Unloading and loading of containerships

The Container Port Business

Globally, 474 million TEU worth of (empty and loaded) containers

The Container Port Business