Journal of Navigation and Port Research (한국항해항만학회지)

Korean Institute of Navigation and Port Research (한국항해항만학회)
권호 표지
DOI QR코드

DOI QR Code

Economic Analysis of Foldable Containers on the Jeju-Mokpo Container Route

  • Shin, Chang-Hoon (Department of Logistics Engineering, Korea Maritime and Ocean University) ;
  • Kim, Sung-Nam (Korea Container Pool Co., Ltd.) ;
  • Den, Mariia (Graduate school of Korea Maritime and Ocean University) ;
  • Wang, Gao-Feng (Graduate school of Korea Maritime and Ocean University)
  • Received : 2018.03.30
  • Accepted : 2018.05.28
  • Published : 2018.10.31
Download PDF
⟨ Previous Next ⟩

Abstract

Shipping containers promote rapid development of the transport industry, and generate economic and social value. However, problems often occur due to imbalance in dynamics between exports and imports, container relocation, traffic congestion, and general shipping network designs. So, efficient and cost-effective cargo management has become crucial for the Jeju Island - Mokpo container route (JMCR) in South Korea. Dozens of recent studies reveal that collapsible or foldable containers, may become an innovative solution to problematic issues within the shipping industry. The major purpose of this study is to discuss conditions required for successful commercial application of foldable containers, based on a cost-benefit analysis precisely for the JMCR. Findings reveal usage of foldable containers can be cost-effective, if containers make a "FULL<->EMPTY" route. To the contrary, a "FULL<->FULL" route can drastically increase expenditure. However, economic analysis of actual figures for 2010-2015 indicate that benefits for Mokpo - Jeju direction are significant to cover losses on the Jeju - Mokpo line. Seasonal patterns and mixing percentages of foldable and standard containers on the route, may also produce cost-effective solutions. Sensitivity analysis reveals that benefits from using foldable containers, depend mostly on empty container shares in addition to various extra costs.

Keywords

References

  1. Bandara, Y. M., Garaniya, V., Chin, C. and Leong, Z. H. (2015), "Improving Logistics Management Using Foldable/Collapsible Containers: A Case Study", The Asian Journal of Shipping and Logistics, Vol. 31, No. 1, pp. 161-185. https://doi.org/10.1016/j.ajsl.2015.03.007
  2. Etnews(2017), Development of folding container will save 300 billion KRW per year, http://www.etnews.com/20170122000033.
  3. Hahn, J. S. and Park, M. C. (2012), "A Study on the Factors Concerning Empty Truck Movements", Journal of Korean Society of Transportation, Vol. 30, No. 6, pp. 47-57. https://doi.org/10.7470/jkst.2012.30.6.047
  4. Holland Container Innovations(2018), How does a 4FOLD foldable container generate savings?, http://hcinnovations.nl/4fold-foldable-container-savings/.
  5. Konings, R. (2005), "Foldable Containers to Reduce the Costs of Empty Transport? A Cost-Benefit Analysis from a Chain and Multi-Actor Perspective", Maritime Economics & Logistics, Vol. 7, No. 3, pp. 223-249. https://doi.org/10.1057/palgrave.mel.9100139
  6. MOLIT(2017), Press Release of January 22, 2017, https://www.ktdb.go.kr/downloadBbsFile.do?atchmnflNo=9817.
  7. Moon, I., Do Ngoc, A. D. and Konings, R. (2013), "Foldable and Standard Containers in Empty Container Repositioning", Transportation Research Part E, Vol. 49, pp. 107-124.
  8. Park, J. W. and Shin, J. Y. (2009), "Empty Container Distribution and Reassignment Problem due to Demand of Freight Depot", Annual Conference of Journal of Korea Navigation and Port Research, Vol. 2009, No. Autumn, pp. 185-186.
  9. Rodrigue, J. P. (2017), The Geography of Transport Systems, Fourth Edition, New York: Routledge.
  10. Shin, C. H., Moon, H. Y. and Park, J. H. (2016), "A Study to Solve Empty Container Return Problems in Gyeongin Province-Focusing on Uiwang ICD and Incheon Port-", Journal of Navigation and Port Research, Vol. 40, No. 6, pp. 459-468. https://doi.org/10.5394/KINPR.2016.40.6.459
  11. Shintani, K., Konings, R. and Imai, A. (2010), "The Impact of Foldable Containers on Container Fleet Management Costs in Hinterland Transport", Transportation Research Part E, Vol. 46, pp. 750-763. https://doi.org/10.1016/j.tre.2009.12.008