The impact of foldable containers on the cost of empty container relocation in the hinterland of seaports

Abstract

This study analyses the impact of using foldable containers in terms of cost savings of truck drayage operations, of both loaded and empty containers, in the hinterland of a seaport. We model a vehicle routing problem to optimise empty container relocation. A simulated annealing algorithm is developed to solve the problem. Numerical experiments are carried out in realistic empty container relocation scenarios. We find that, under certain conditions, foldable containers can offer higher truck productivity compared with standard containers, hence resulting in substantial cost savings. This paper provides managerial insights into how foldable containers can help reduce the costs of hinterland transport.