Consolidation of Residual Volumes in a Parcel Service Provider's Long-Haul Transportation Network

We consider the direct long-haul transportation network of a parcel service provider where transports are carried out using swap bodies. Our focus is on residual volumes, which are not enough to fill a swap body, and investigate how consolidation using hubs can lead to cost reduction through better capacity utilization. We developed a corresponding model minimizing total costs consisting of transportation costs for the swap bodies and costs for the additional sorting required in the hubs.