TL;DR: In this paper, the authors evaluate whether vessel speed reduction can be a potentially cost-effective CO2 mitigation option for ships calling on US ports, by applying a profit-maximizing equation to estimate route-specific, economically-efficient speeds.
Abstract: Greenhouse gas emissions from international shipping are an increasing concern. The paper evaluates whether vessel speed reduction can be a potentially cost-effective CO2 mitigation option for ships calling on US ports. By applying a profit-maximizing equation to estimate route-specific, economically-efficient speeds, we explore policy impacts of a fuel tax and a speed reduction mandate on CO2 emissions. The profit-maximizing function incorporates opportunity costs associated with speed reduction that go unobserved in more traditional marginal abatement cost analyses. We find that a fuel tax of about $150/ton fuel will lead to average speed-related CO2 reductions of about 20–30%. Moreover, a speed reduction mandate targeted to achieve 20% CO2 reduction in the container fleet costs between $30 and $200 per ton CO2 abated, depending on how the fleet responds to a speed reduction mandate.
TL;DR: In this paper, the impact of increasing bunker costs on the design of liner services on the Europe-Far East trade is discussed, and the authors assess how shipping lines have adapted their liner service schedules (in terms of commercial speed, number of vessels deployed per loop, etc.).
TL;DR: In this paper, a survey of speed models in maritime transportation is presented, that is, models in which speed is one of the decision variables and a taxonomy of such models is also presented, according to a set of parameters.
Abstract: International shipping accounts for 2.7% of worldwide CO 2 emissions, and measures to curb future emissions growth are sought with a high sense of urgency. With the increased quest for greener shipping, reducing the speed of ships has obtained an increased role as one of the measures to be applied toward that end. Already speed has been important for economic reasons, as it is a key determinant of fuel cost, a significant component of the operating cost of ships. Moreover, speed is an important parameter of the overall logistical operation of a shipping company and of the overall supply chain and may directly or indirectly impact fleet size, ship size, cargo inventory costs and shippers’ balance sheets. Changes in ship speed may also induce modal shifts, if cargo can choose other modes because they are faster. However, as emissions are directly proportional to fuel consumed, speed is also very much connected with the environmental dimension of shipping. So when shipping markets are in a depressed state and “slow-steaming” is the prevalent practice for economic reasons, an important side benefit is reduced emissions. In fact there are many indications that this practice, very much applied these days, will be the norm in the future. This paper presents a survey of speed models in maritime transportation, that is, models in which speed is one of the decision variables. A taxonomy of such models is also presented, according to a set of parameters.
TL;DR: In this article, the authors first calibrates the bunker consumption and sailing speed relation for container ships using historical operating data from a global liner shipping company and then investigates the optimal sailing speed of container ships on each leg of each ship route in a liner shipping network while considering transshipment and container routing.
Abstract: This paper first calibrates the bunker consumption – sailing speed relation for container ships using historical operating data from a global liner shipping company. It proceeds to investigate the optimal sailing speed of container ships on each leg of each ship route in a liner shipping network while considering transshipment and container routing. This problem is formulated as a mixed-integer nonlinear programming model. In view of the convexity, non-negativity, and univariate properties of the bunker consumption function, an efficient outer-approximation method is proposed to obtain an e-optimal solution with a predetermined optimality tolerance level e. The proposed model and algorithm is applied to a real case study for a global liner shipping company.
TL;DR: In this article, the authors measure the rate at which CO 2 emissions have already been reduced and to estimate the bunker break-even price at which slow steaming is sustainable for various trades in the long run.
Abstract: Reductions in speed significantly reduce CO 2 emissions from international shipping. Slow steaming strategies, which were not sustainable a few years ago when the container markets were booming, have been implemented by most shipping lines. This article attempts to measure the rate at which CO 2 emissions have already been reduced and to estimate the bunker break-even price at which slow steaming is sustainable for various trades in the long run. The paper shows that such reductions, such as the estimated 11% decrease in emissions since 2008, can only be sustained given a bunker price of at least $350-400 for the main east-west trades.