A Strategic Empty Container Logistics Optimization Essay

A Strategic Empty Container Logistics Optimization - Essay Example Therefore, they get limited in other regions that export more than they import. The other problem is that it is unknown when demand will rise for containers and return date for containers is uncertain. Also, Epstein et al., says that capacity for ships returning empty containers is not known, and a lot of information needs to be processed hence at times delay decision making that would help decrease stocks of empty containers. Another problem is of ensuring communication of interrelated decisions around all countries that CSAV operates; this was to ensure making decisions at a worldwide level to get rid of empty container challenge. Alternative Solutions to the Empty Container Problem. Different shipping companies have come up with solutions to overcome the problem of empty containers by use of advanced technologies. Among the technologies is the use of foldable containers. Taking containers to nearby ports with equipment necessary to fold the containers follows emptying them. The co ntainers on folding are space-saving hence can be shipped back to where they came from so that they can be used in moving more goods to other various destinations instead of staying where they had been taken waiting when they will be used to ship goods, which may never happen. It is clear that some regions are high importers but export fewer goods hence the containers may never leave that region. Therefore, incurrence of storage costs and lowering efficient in regions the containers are in need by customers.