Optimization model for container maintenance surcharge in the shipping industry

Shipping line industry is one that is currently growing in most recent periods since COVID-19 pandemic and one of their most valuable assets is containers. Most shipping lines currently are having issues with cost management and one of the costs is container maintenance fees. Proper container maintenance is crucial because it ensures the safety and integrity of goods during transit. Well-maintained containers prevent damage to the cargo, reduce the risk of accidents, and extend the lifespan of the containers themselves. This, in turn, helps shipping lines minimize unexpected expenses and maintain a reliable service for their customers. The container maintenance surcharge is a fee imposed by shipping lines to cover the costs of maintaining their container fleets. Premium and coverage analysis is crucial in identifying the most cost-effective methods to manage these maintenance expenses. Throughout the year, shipping lines face challenges in handling maintenance fees, influenced by cargo loads and market conditions. These factors must be aligned with customer behavior, particularly for key accounts that contribute significantly to trade lane volumes. By conducting premium and coverage analysis, shipping lines can pinpoint the most economical solutions for maintenance fees. This enables them to customize their approaches to meet the specific needs of their customers, ensuring optimal service delivery.