Dynamic Less-Than-Truckload Transportation Planning in Hyperconnected Hub Networks with Multi-Carrier Operations

TL;DR

This paper proposes an optimization model for dynamic relay transportation in hyperconnected LTL carrier networks, demonstrating potential cost savings, reduced trip durations, and lower emissions through multi-carrier cooperation.

Contribution

It introduces a novel optimization-based approach for coordinating multi-carrier relay shipments in hyperconnected hub networks, enhancing efficiency and sustainability.

Findings

Relay transportation reduces costs and emissions.

Joint carrier operation improves service efficiency.

Simulation shows significant benefits over separate operations.

Abstract

Less-than-truckload (LTL) shipment is vital in modern freight transportation yet is in dire need of more efficient usage of resources, higher service responsiveness and velocity, lower overall shipping cost across all parties, and better quality of life for the drivers. The industry is currently highly fragmented, with numerous small to medium-sized LTL carriers typically operating within dedicated regions or corridors, mostly disconnected from each other. This paper investigates the large-scale interconnection of LTL carriers enabling each to leverage multi-carrier networks for cross-region services exploiting their mutual logistic hubs, in line with Physical Internet principles. In such a network, efficient open cooperation strategies are critical for optimizing multiparty relay shipment consolidation and delivery, transport and logistic operations and orchestration, and enabling inter-hub driver short hauls. To dynamically plan relay truck transportation of involved carriers across hyperconnected hub networks, we develop an optimization-based model to build loads, coordinate shipments, and synchronize driver deliveries. We report a simulation-based experiment in a multiparty LTL network covering the eastern U.S. in three scenarios: 1) each carrier operates separately and serves its clients with end-to-end transportation, 2) each carrier operates separately and adopts relay transportation in its service region, and 3) all carriers operate jointly and serve clients in the multi-carrier hyperconnected relay network. By comparing these three scenarios, we evaluate the impact of relay transportation and carrier cooperations on cost savings, trip duration, and greenhouse gas emissions. Overall, this research advances operational efficiencies through an effective collaborative solution across the LTL industry and contributes to the pursuit of sustainable logistics networks.