SPOT: Spatio-Temporal Pattern Mining and Optimization for Load Consolidation in Freight Transportation Networks

Abstract: Freight consolidation has significant potential to reduce transportation costs and mitigate congestion and pollution. An effective load consolidation plan relies on carefully chosen consolidation points to ensure alignment with existing transportation management processes, such as driver scheduling, personnel planning, and terminal operations. This complexity represents a significant challenge when searching for optimal consolidation strategies. Traditional optimization-based methods provide exact solutions, but their computational complexity makes them impractical for large-scale instances and they fail to leverage historical data. Machine learning-based approaches address these issues but often ignore operational constraints, leading to infeasible consolidation plans. This work proposes SPOT, an end-to-end approach that integrates the benefits of ML and optimization for load consolidation. The ML component plays a key role in the planning phase by identifying the consolidation points through spatio-temporal clustering and constrained frequent itemset mining, while the optimization selects the most cost-effective feasible consolidation routes for a given operational day. Extensive experiments conducted on industrial load data demonstrate that SPOT significantly reduces travel distance and transportation costs (by about 50% on large terminals) compared to the existing industry-standard load planning strategy and a neighborhood-based heuristic. Moreover, the ML component provides valuable tactical-level insights by identifying frequently recurring consolidation opportunities that guide proactive planning. In addition, SPOT is computationally efficient and can be easily scaled to accommodate large transportation networks.