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An Overview of Feeder Services in the Era of Mega Containerships
Abstract
In the era of mega containerships, global containership liners design their transportation service as Hub-and-Spoke networks to improve the access to local transportation markets and to reduce operational costs by using short-sea connections for low-volume transportation lines. Feeder services play an irreplaceable role as logistics service provider in global shipping because of considerable benefits resulting from an increased port range, elimination of port restrictions, small sized ships with increased service frequency, the use of mega containerships, savings in network cost, and decreased inland traffic and air-pollution. In addition to main advantages of feeder service, efficient distribution of containers to faraway regions through feeder services out of the main line regions could subsist in a worldwide market. The aim of this chapter is to analyze the role of feeder services in liner shipping and provide information about major challenges that feeder service providers face in planning their logistics networks in the era of mega containerships.
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