Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329674 
Year of Publication: 
2021
Citation: 
[Journal:] Asian Journal of Shipping and Logistics (AJSL) [ISSN:] 2352-4871 [Volume:] 37 [Issue:] 2 [Year:] 2021 [Pages:] 192-203
Publisher: 
Elsevier, Amsterdam
Abstract: 
Hub-and-spoke (HS) networks are cost-effective because they allow the realization of economies of density. However, the cost of point-to-point (PP) networks may be lower than that of HS networks when certain conditions, such as cargo demand, bunker price, vessel size, and the shippers' value of time change. This study explores the factors that influence the cost-effectiveness of HS and PP networks. We developed a mixed-integer programming model that allows for bi-level optimization between shipping lines and shippers. As a case study, we applied it to Chinese and Japanese ports, with both HS and PP networks. We found that high cargo demand increases the use of PP networks while enlarging vessel size increases the use of HS networks. These findings enable us to predict the occurrence of hubbing-shifting from a PP to an HS network - and de-hubbing-shifting from an HS to a PP network.
Subjects: 
Bi-level optimization
Hub-and-spoke network
Maritime transport
Network design
Point-to-point network
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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