Regional Repositioning of Empty Containers Case for Inland Depots

Regional repositioning of empty containers involves empty container movement between regional importers, marine terminals, depot,, and export customers. This chain movement generates unproductive empty vehicle miles in the region. The problem of empty vehicle miles becomes more prominent because empty container depots are located close to the port and customers are inland. Considering the double-digit increase in containerized trade volumes and the persistent trade imbalance that strain existing depot capacities in major import areas, this paper focuses on the optimal locution of new container depots and the repositioning of empty containers in a region. It proposes a system of inland depots for empty containers (IDEC) in which new depots would be built closer to customer clusters. An IDEC system can minimize the total system costs (cost of opening new depots plus repositioning cost of empties) and provide additional required capacity. The paper presents a mathematical model of such a system and discusses its feasibility and effectiveness. The proposed system is evaluated for a region based on the New York-New Jersey port region. Results show that by building inland depots, empty vehicle miles traveled and total system cost of repositioning empties are reduced significantly. At the same time, capacity is added to the system, preventing a shortfall that would result. from the increase in trade and the trade imbalance. The authors believe that an IDEC system has great potential in optimizing regional empty moves.