Hub and spoke network design for container shipping along the Yangtze River
Abstract Increasingly large, high tonnage containerships are becoming a common sight on the Yangtze River, and the shipping network is being transformed accordingly. This paper reports the design of a hub and spoke network for a shipping company that is consistent with the characteristics of the Yangtze River. We first explore the economies of scale for container shipping by applying empirical data. Next, we propose a mixed integer linear programming model, factoring in ship operating and container handling costs. We then conduct a numerical experiment and test the effectiveness of the model, and finally discuss the implications of hub and spoke shipping network design. The findings reported herein support the trends toward cargo concentration and port regionalization along the Yangtze River.