Knowledge Base
Definition
An independent shipping line agent represents one or several principals, using in-house IT system for invoicing, receiving payment, keeping track of outstanding freight payments, and possibly also using one or several principal IT systems for submitting manifest data and for import cargo.
The independent agent uses e-Business to provide self-service sailing schedules, issue freight quotes and take bookings.
Independent Liner Agent Benefits
The e-business platform will provide the following specific benefits to an independent liner agent on top of the generic benefits mentioned in the introductory article:
- offer modern e-Business facilities to customers irrespectively of whether the principal is ready for e-business or not;
- branding of own agency organisation towards customers;
- save the front office staff from trial tasks like informing customers about latest sailing schedules eta/etd's and transit times, giving rate sheet freight quotes, taking bookings, keeping track of allocation per departure;
- staff may focus on value-adding services, rather than simple 'transaction work';
- offer a consistently looking transport service provided by agency across multiple principals;
- co-offer principal services and local value-add transport offerings to market.

Picture: it is not common practice that independent agents, or even global agency organisations, offer self-branded e-business solutions support export shipping processes, despite that a large part of the benefits provided by e-business are harvested in the front office.
Issues and Challenges
Some of the issues that liner agents will face when offering e-Business:
Allocation & cross bookings. The liner agent has a firm allocation from principal for export cargo and can use an e-Business platform to manage this allocation (to keep track of when a departure is fully booked). Some of the bookings may be received from other agents doing cross bookings - such bookings might be received by e-mail or via other channels, and in order for the e-Business platform to keep track of the number of free slots still available, the liner agent needs to key-in the booking himself in the e-Business platform, or ask their agents colleagues to use the e-Business platform directly. Cross bookings is done by liner agent's local customers for other export areas needs to be handled outside the e-Business platform.
Agent back-office integration. If the liner agent uses an in-house financial system for keeping track of revenue to be invoiced and collected, and automatically providing book keeping input, the liner agent needs to transfer the financial part of booking data from the e-Business platform to the financial package. This can be done by electronic messaging (EDI/ebXML) either every time a booking is made, or as a batch transfer after the booking for a departure is closed.
Principal back-office integration. The principals may insist on booking data to be updated in their in-house system either instantly when the booking is received in order to be able to adjust the agency allocation up or down when booking closure is coming up, or as a load list batch update after booking closure. This can be done by electronic messaging (EDI/ebXML) either every time a booking is made, or as a batch transfer after the bookings for a departure is closed (manifest/ loading list).
Freight quote, bookings with freight agreement. If a rate agreement exists with a customer, the e-Business engine's freight quote capability offering tariff rates will not add value, and instead the e-Business engine is used to take bookings on concrete sailings for such customers. The e-business engine simplifies the freight quote process and supports that many self-service freight quotes are issued for customers without rate agreements.
Space guarantee. If part of a customer agreement entails space guarantee, the customer must pre-book on the required departures well in advance, or the agent must keep part of the allocation reserved for space guaranteed customers and only release the last allocation if case of space guaranteed customers' downfall.
Independent liner agents, who would like to learn more, please check out arl-shipping.com/eb
Ever wondered what drives a container terminal to expediete shipping line vessels terminal operations? Well, first of all the terminal need to meet the contractual commitments from their shipping line customers. Secondarily, the terminal need to maintain a cost efficient operation, which is also in the long term benefit of the customer. Sounds right?

But what if all export containers are already at the terminal ready for loading? And the terminal is as such equipped to expediete the vessel faster, but against extra costs. Is the shipping line willing to cover those extra costs? Probably not. Who benefits from the accellerated ETD? The terminal doesn't; on the contrary they will have additional costs. The benefit is harvested by the shipping line, which can steam slower to the next port and save on bunkers.
Check out the Ship Side Crane Bay Planner for shipping lines or for terminals , which allow for what-if scenarios to identify opportunities to accellerate ETD beyond the contractual commitments by adding more terminal resources, and thereby facilitating the terminal and the shipping line to share the pain and the gain!
Ever visited a container terminal and watched the lashing teams having hour-long breaks waiting for next bay to be ready for them to do their job? The real reason might be that lashing teams are assigned in a hierachical manner, limiting their lashing assignments to neighbouring bays in accordance with a specific quay crane's work during a port stay.
Now the solution to break this dependancy is here: The ARL Lashing Planner, planning for high utilisation of lashing teams across not only all bays on a vessel, but all vessels alongside at berth. Read more here.

In later shipZine editions, learn about the safety aspect of lashing planning: Plan to avoid work in unsafe zone & times onboard the vessel.
What can all this social media be used for in transportation? Are anybody already doing it?

Lets have a few glimpses at what goes on right now:
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Corporate, media news

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Exchange of Views

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Customer support

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Watch later shipZine editions to get more detailed insight of the pros & cons of social networking in transportation.
Most of the developed world is struggling to emerge from the grip of recession. This is in stark contrast to the economies of the developing world, who are exhibiting impressive rates of growth. It is probably going to be some time before the economies in Europe and elsewhere are able to sustain significant growth. This means that businesses are having to reset expectations as to what ‘business as usual’ actually means.

Over the past few years, the terms low cost, value and service have become the norm when describing the kinds of products and services that people are buying. The downturn has forced every business to focus only on the things that are essential for their operations. At the same time, the lack of funding has reduced budgets encouraging the ‘do more with less’ attitude. It is therefore no surprise that those companies who are able to provide great service at low cost are the ones doing well.
At OnOnShipping, we view this environment as the new normal and our goal is to be able to provide our customers with the best service at the lowest cost. To do this we are exploiting technology in innovative ways and also looking at how we can build the organisation in order to have the lowest operating costs. With all of these efforts, our primary yardstick is customer value and customer satisfaction. If we do this, we should be able to meet our goal of lowest rates combined with great service. This approach is not new and is best illustrated by low cost airlines such as Easyjet in the UK and Southwest in the United States. The success of these has prompted a wave of similar companies across the world. However, there is no equivalent in the maritime arena and we think it’s time that this changed. OnOn Shipping is the result.

Freight forwarders and other transport intermediaries usually make use of many shipping lines or airlines for shipping customer shipments. As the freight forwarder is usually providing the origin and -via partners or own network- destination services, it is only the shipping line and airline, who is able to give detailed status on the international transport execution. See how carrier track & trace can be pre-integrated at a finger tip into the website of a freight forwarder, check-out forwarder@CMS.
Low cost airlines entered the European airspace in 1991 when Ireland's Ryan Air commenced their operations. Later easyJet followed in 1995 and from 2000 a similar trend started in Asia. Aside from the leaders of the low cost airlines being financially successful in a tight market, they differentiate themselves from traditional airlines by a number of factors:

During a series of articles, we will explore a number of these differences -those facilitated by IT technology- and draw parallels to how the cargo industry is currently operating and may operate in the future.
Whilst considering some physical conditions defining the possible berthing of a container vessel in port, like LOA of vessel, free space between vessels, vessel ETA & ETD, draught and tide, temporary unavailable berthing zones (non-working crane or quay under repair) vessels can be planned for berthing at a container terminal.
Combining these restrictions with knowledge about the physical characteristics of the yard (geometry, dimensions, yard driving rules), the actual location of containers ready for loading and assigned blocks for discharge containers, the assigned vessel berth can be optimized with the result of saved mileage of the yard equipment.
This optimization algorytm belongs to the NP-hard complexity class. This means that there is no exact effective algorithm known. Brute force algorithm, that finds all vessels' permutations (only relative vessel position, no exact coordinates, no traffic optimization) requires about 1018 combinations to be considered for moderately busy terminals with 20 calls per week. Such direct approach may take hours and even days just to find a feasible berthing scenario.
Wikipedia:
NP-hard (nondeterministic polynomial-time hard), in computational complexity theory, is a class of problems informally "at least as hard as the hardest problems in NP." A problem H is NP-hard if and only if there is an NP-complete problem L that is polynomial time Turing-reducible to H, i.e. . In other words, L can be solved in polynomial time by an oracle machine with an oracle for H.
The famous simplex method that successfully solves many real world problems cannot be applied to berthing optimization as it contains non-linear both constraints and target function, due to the yard equipment mileage calculation.
The solution was to build an effective approximation algorithm by incorporating algorithms from graphs theory and an inhouse developed algorithm for solving system of inequalities, that describes parameters of the task. It finds near to optimal solution in seconds:

The proposed algorithm starts with finding a feasible solution by solving a system of inequalities. This system reflects physical limitations such as total berth length, vessel length, minimal allowable distance between vessels, location of unavailable zones, etc. The solver not only places vessels to berth to meet all constraints, but also find vessel position among available positions resulting in minimal yard equipment mileage. The algorithm also uses vessel priority based on total amount of move operations to guarantee that "heavy" vessels get the best positions. Output of this stage is a feasible berthing scenario with reasonably good total mileage.
Next phase operates with graph representation of the berth scenario. It checks if small shift of vessel and all dependent vessels (that do not change order of vessels) give total mileage decrease. If mileage can be decreased by the vessel shift, the algorithm executes accordingly.
Then a set of heuristics is applied to the scenario. These heuristics defines rules of vessel permutations, that cannot break the scenario feasibility, but can result in mileage decrease. This phase completes final scenario tuning.
An important advantage of the approach is that it allows adjusting almost any parameter manually and letting others to be found by the algorithm. Additionally, the structure of the algorithm allows adaption to new business requirements. This results in flexibility in practical applications.
During recent years ARL Consulting have completed several projects incorporating complex mathematical models as an integral part of the solution provided. This is in response to the continously increasing unit counts in shipping and transport, like growing size of vessels, number of transports, number of hub-and-spoke connection opportunities, which makes it harder and harder to identify and evaluate multiple options by human force only.
In a series of shipZine articles three business challenges in the transport industry, which has been successfully resolved by applying scientific approaches, will be explored:
- selection of optimal container vessel berthing at quay side
- evaluation of relevant vessel deployment opportunities
- vessel bunker consumption calculation
Each of the business scenarios provide benefits for the transportation organisation:
1) selection of optimal container vessel berthing reduce the mileage required by the yard equipment for servicing the vessel; this results in direct fuel savings, time savings for equipment drivers, reduces wear-and-tear and allow for servicing of more vessels with the same amount of equipment and staff.
2) evaluation of relevant vessel deployment opportunities provides the deployment planners with the ability to consider feasible and relevant network and deployment scenarios, which can be assessed from an operational and commercial perspective, not only saving time with the planners, but highlighting deployment scenarios, with benefical cost and income opportunities, which otherwise would not have been considered due to the complexity of the many opportunities.
3) vessel bunker consumption calculation give the direct benefit of reduced bunkers costs.
brute force - Free On-Line Dictionary of Computing:
<programming> A primitive programming style in which the programmer relies on the computer's processing power instead of using his own intelligence to simplify the problem, often ignoring problems of scale and applying naive methods suited to small problems directly to large ones. The term can also be used in reference to programming style: brute-force programs are written in a heavy-handed, tedious way, full of repetition and devoid of any elegance or useful abstraction
The mathemathical approaches used are all 'intelligent' alternatives to clean brute-force approach and reflect in some form that the computer system act as a human thinking brain -just much faster and more comprehensive.
Many other areas for harvesting benefit by using math force, like container vessel stowage planning, exist in the transport industry.
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