Improving the resilience of inland waterway freight consolidation during disruptions through subsidies

This study addresses the critical challenge of enhancing inland waterway transport (IWT) resilience during disruptions, particularly considering imperfect shipper information. It proposes a dual subsidy mechanism targeting shippers and carriers to improve freight consolidation patterns. A bi-level programming model is formulated to determine optimal subsidies that encourage shippers to select optimal ports for cargo consolidation, aiming to minimize government expenditure while restoring system efficiency. The model, dealing with continuous shipper distribution, is discretized using the Finite Element Method to manage its complexity. To solve this intricate problem, a heuristic algorithm is developed. A comprehensive case study on the Yangtze River Economic Belt demonstrates the efficacy of the proposed freight consolidation subsidy mechanism. Results indicate mitigation of congestion during demand surges and effective adjustment of freight consolidation during compound disruptions, such as concurrent port and road network failures. • A dual subsidy model enhances IWT resilience with imperfect shipper information. • FEM and a heuristic algorithm solve the complex bi-level optimization model. • Higher shipper awareness reduces subsidy needs and marginal gains.