Analysis and Optimization of Subsidy Scheme for China Europe Express

The analysis of the current subsidy scheme for China Europe Express shows that its effectiveness is limited to lines starting from inland cities and lines with unsaturated demand. A bi-level subsidy optimization model was constructed and Tabu Search algorithm was applied to solve the optimization subsidy plan. The evaluation results of the optimization subsidy scheme indicate that it can more effectively increase the market share of CRE, regulate the balance of freight supply and demand to a certain extent, reduce capacity vacancies, and alleviate line congestion.