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This paper aims to study the implication of the stochastic gross-profit-per-day objective on the ship profitability and the ship capacity and speed.
Abstract
Purpose
This paper aims to study the implication of the stochastic gross-profit-per-day objective on the ship profitability and the ship capacity and speed.
Design/methodology/approach
The paper has used the mathematical model and the solution methodology given by El Noshokaty, 2013, 2014, 2017a, 2017b, and SOS, 2019.
Findings
The paper finds that if the ship owner follows the rate concept and the cargo demand forecast, he can improve the profitability of his company and be able to select the proper capacities and speeds for the ships used.
Research limitations/implications
The findings are not only useful for the shipping or other cargo transport companies but also for businesses like gas reservoir development, car assembly lines in the industry, cooperative farming and crop harvesting in agriculture, port cargo handling in trade and road paving in construction.
Originality/value
The contribution of this paper lies in notifying the ship owners of the possible profitability improvement and the consequences of building ships of larger capacities and slower speeds.
Details
Keywords
Emissions produced by oceangoing vessels not only negatively affect the environment but also may deteriorate health of living organisms. Several regulations were released by the…
Abstract
Purpose
Emissions produced by oceangoing vessels not only negatively affect the environment but also may deteriorate health of living organisms. Several regulations were released by the International Maritime Organization (IMO) to alleviate negative externalities from maritime transportation. Certain polluted areas were designated as “Emission Control Areas” (ECAs). However, IMO did not enforce any restrictions on the actual quantity of emissions that could be produced within ECAs. This paper aims to perform a comprehensive assessment of advantages and disadvantages from introducing restrictions on the emissions produced within ECAs. Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure. Numerical experiments demonstrate that introduction of emission restrictions within ECAs can significantly reduce pollution levels but may incur increasing route service cost for the liner shipping company.
Design/methodology/approach
Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure.
Findings
Numerical experiments were conducted for the French Asia Line 3 route, served by CMA CGM liner shipping company and passing through ECAs with sulfur oxide control. It was found that introduction of emission restrictions reduced the quantity of sulfur dioxide emissions produced by 40.4 per cent. In the meantime, emission restrictions required the liner shipping company to decrease the vessel sailing speed not only at voyage legs within ECAs but also at the adjacent voyage legs, which increased the total vessel turnaround time and in turn increased the total route service cost by 7.8 per cent.
Research limitations/implications
This study does not capture uncertainty in liner shipping operations.
Practical implications
The developed mathematical model can serve as an efficient practical tool for liner shipping companies in developing green vessel schedules, enhancing energy efficiency and improving environmental sustainability.
Originality/value
Researchers and practitioners seek for new mathematical models and environmental policies that may alleviate pollution from oceangoing vessels and improve energy efficiency. This study proposes two novel mathematical models for the green vessel scheduling problem in a liner shipping route with ECAs. The first model is based on the existing IMO regulations, whereas the second one along with the established IMO requirements enforces emission restrictions within ECAs. Extensive numerical experiments are performed to assess advantages and disadvantages from introducing emission restrictions within ECAs.
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Helio Takahiro Sinohara and Eduardo Aoun Tannuri
This work analyses autonomous ships' specific needs of external and environmental information in restricted pilotage waters. Harbour pilots use conventional well-tested techniques…
Abstract
Purpose
This work analyses autonomous ships' specific needs of external and environmental information in restricted pilotage waters. Harbour pilots use conventional well-tested techniques when piloting the manned vessel. In this work, the authors propose technological solutions to be installed or adapted in ports to feed the autonomous ships' systems with the information considered relevant by pilots.
Design/methodology/approach
To investigate what pilots consider relevant, the authors submitted a questionnaire to the pilotage of Paranaguá Port. Then the authors presented a case study including the critical areas for the navigation of ships.
Findings
These technological solutions aim to allow vessels reaching critical areas in a position, a time, a speed and a course that compensates the external forces and/or avoid high-risk situations. The authors have proposed technological solutions considering those already available in the ports, particularly in Paranaguá and Antonina in Brazil.
Originality/value
There is little published data on navigation of ships in pilotage waters. So far, there has been little discussion on autonomous ships in restricted waters.
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Shuaian Wang and Chuansheng Peng
The purpose of this study is to analyze the effect of China’s potential domestic emission control area (DECA) with 0.1 per cent sulphur limit on sulphur emission reduction.
Abstract
Purpose
The purpose of this study is to analyze the effect of China’s potential domestic emission control area (DECA) with 0.1 per cent sulphur limit on sulphur emission reduction.
Design/methodology/approach
The authors calculate the fuel cost of a direct path within the DECA and a path that bypasses the DECA for ships that sail between two Chinese ports in view of the DECA. Ships adopt the path with the lower cost and the resulting sulphur dioxide (SO2) emissions can be calculated. They then conduct sensitivity analysis of the SO2 emissions with different values of the parameters related to sailing distance, fuel price and ships.
Findings
The results show that ships tend to detour to bypass the DECA when the distance between the two ports is long, the ratio of the price of low sulphur fuel and that of high sulphur fuel is high and the required time for fuel switching is long. If the time required for fuel switching is less than 12 h or even 24 h, it can be anticipated that a large number of ships will bypass the DECA, undermining the SO2 reduction effect of the DECA.
Originality/value
This study points out the size and shape difference between the emission control areas in Europe and North America and China’s DECA affects ships’ path choice and SO2 emissions.
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Keywords
Dave C. Longhorn, Shelby V. Baybordi, Joel T. Van Dyke, Austin W. Winter and Christopher L. Jakes
This study aims to examine ship loading strategies during large-scale military deployments. Ships are usually loaded to a stowage goal of about 65% of the ship's capacity. The…
Abstract
Purpose
This study aims to examine ship loading strategies during large-scale military deployments. Ships are usually loaded to a stowage goal of about 65% of the ship's capacity. The authors identify how much cargo to load onto ships for each sailing and propose lower stowage goals that could improve the delivery of forces during the deployment.
Design/methodology/approach
The authors construct several mixed integer programs to identify optimal ship loading strategies that minimize delivery timelines for notional, but realistic, problem variables. The authors study the relative importance of these variables using experimental designs, regressions, correlations and chi-square tests of the empirical results.
Findings
The research specifies the conditions during which ships should be light loaded, i.e. loaded to less than 65% of total capacity. Empirical results show cargo delivered up to 16% faster with a light-loaded strategy compared to fully loaded ships.
Research limitations/implications
This work assumes deterministic sailing times and ship loading times. Also, all timing aspects of the problem are estimated to the nearest natural number of days.
Practical implications
This research provides important new insights about optimal ship loading strategies, which were not previously quantified. More importantly, logistics planners could use these insights to reduce sealift delivery timelines during military deployments.
Originality/value
Most ship routing and scheduling problems minimize costs as the primary goal. This research identifies the situations in which ships transporting military forces should be light loaded, thereby trading efficiency for effectiveness, to enable faster overall delivery of unit equipment to theater seaports.
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Keywords
Ali Cheaitou, Sadeque Hamdan and Rim Larbi
This paper aims to examine containership routing and speed optimization for maritime liner services. It focuses on a realistic case in which the transport demand, and consequently…
Abstract
Purpose
This paper aims to examine containership routing and speed optimization for maritime liner services. It focuses on a realistic case in which the transport demand, and consequently the collected revenue from the visited ports depend on the sailing speed.
Design/methodology/approach
The authors present an integer non-linear programming model for the containership routing and fleet sizing problem, in which the sailing speed of every leg, the ports to be included in the service and their sequence are optimized based on the net line's profit. The authors present a heuristic approach that is based on speed discretization and a genetic algorithm to solve the problem for large size instances. They present an application on a line provided by COSCO in 2017 between Asia and Europe.
Findings
The numerical results show that the proposed heuristic approach provides good quality solutions after a reasonable computation time. In addition, the demand sensitivity has a great impact on the selected route and therefore the profit function. Moreover, the more the demand is sensitive to the sailing speed, the higher the sailing speed value.
Research limitations/implications
The vessel carrying capacity is not considered in an explicit way.
Originality/value
This paper focuses on an important aspect in liner shipping, i.e. demand sensitivity to sailing speed. It brings a novel approach that is important in a context in which sailing speed strategies and market volatility are to be considered together in network design. This perspective has not been addressed previously.
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Tamara Apostolou, Ioannis N. Lagoudis and Ioannis N. Theotokas
This paper aims to identify the interplay of standard Capesize optimal speeds for time charter equivalent (TCE) maximization in the Australia–China iron ore route and the optimal…
Abstract
Purpose
This paper aims to identify the interplay of standard Capesize optimal speeds for time charter equivalent (TCE) maximization in the Australia–China iron ore route and the optimal speeds as an operational tool for compliance with the International Maritime Organization (IMO) carbon intensity indicator (CII).
Design/methodology/approach
The TCE at different speeds have been calculated for four standard Capesize specifications: (1) standard Capesize with ecoelectronic engine; (2) standard Capesize with non-eco engine (3) standard Capesize vessel with an eco-electronic engine fitted with scrubber and (4) standard Capesize with non-eco engine and no scrubber fitted.
Findings
Calculations imply that in a highly inflationary bunker price context, the dollar per ton freight rates equilibrates at levels that may push optimal speeds below the speeds required for minimum CII compliance (C Rating) in the Australia–China trade. The highest deviation of optimal speeds from those required for minimum CII compliance is observed for non-eco standard Capesize vessels without scrubbers. Increased non-eco Capesize deployment would see optimal speeds structurally lower at levels that could offer CII ratings improvements.
Originality/value
While most of the studies have covered the use of speed as a tool to improve efficiency and emissions in the maritime sector, few have been identified in the literature to have examined the interplay between the commercial and operational performance in the dry bulk sector stemming from the freight market equilibrium. The originality of this paper lies in examining the above relation and the resulting optimal speed selection in the Capesize sector against mandatory environmental targets.
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Thibaut Van Zwijnsvoorde, Marc Vantorre, Katrien Eloot and Stefaan Ides
Economies of scale drive container ship owners towards ordering larger vessels. Terminals need to ensure a safe (un)loading operation of these vessels, which can only be…
Abstract
Purpose
Economies of scale drive container ship owners towards ordering larger vessels. Terminals need to ensure a safe (un)loading operation of these vessels, which can only be guaranteed if the mooring equipment is not overloaded (lines, fenders and bollards) and if the motions of the vessel remain below set limits, under external forces. This paper aims to focus on the passing vessel effect as a potential disturbing factor in the Port of Antwerp.
Design/methodology/approach
Motion criteria for allowing safe (un)loading of container vessels are established by considering the container handling process and existing international standards (PIANC). A case study simulation is presented where the behaviour of the moored vessel under ship passages is evaluated. Starting from a representative event, the effect of changes in passing speed and distance is discussed.
Findings
The study illustrates the influence of passing velocity and distance on the behaviour of the moored vessel, showing that when passing speeds are higher and/or distances lower than the reference event, safety limits are potentially exceeded. Possible mitigating measures, including the use of stiffer mooring lines and/or a change in arrangement, are discussed.
Research limitations/implications
This paper serves as a basis for future research on safety criteria and optimisation of the mooring equipment and configuration to deal with passing vessel effects.
Practical implications
The presented results can be used by ship and terminal designers to gain familiarity with passing vessel effects and adopt suggested best practice.
Social implications
By restricting the motions of the passing vessels, the focus and general well-being of the crane operator is enhanced, as is the safety of workers.
Originality/value
The paper provides a unique combination of container fleet observation, safety criteria establishment and case study application.
Details
Keywords
Vasiliki Zisi, Harilaos N. Psaraftis and Thalis Zis
As of January 1, 2020, the upper limit of sulfur emissions outside emission control areas decreased from 3.5% to 0.5%. This paper aims to present some of the challenges associated…
Abstract
Purpose
As of January 1, 2020, the upper limit of sulfur emissions outside emission control areas decreased from 3.5% to 0.5%. This paper aims to present some of the challenges associated with the implementation of the sulfur cap and investigates its possible side effects as regard the drive of the International Maritime Organization (IMO) to reduce carbon dioxide (CO2) emissions. Even though it would appear that the two issues (desulfurization and decarbonization) are unrelated, it turns out that there are important cross-linkages between them, which have not been examined, at least by the regulators.
Design/methodology/approach
A literature review and a qualitative risk assessment of possible CO2 contributors are presented first. A cost-benefit analysis is then conducted on a specific case study, so as to assess the financial, as well as the environmental impact of two main compliance choices, in terms of CO2 and sulfur oxide.
Findings
From a financial perspective, the choice of a scrubber ranks better comparing to a marine gas oil (MGO) choice because of the price difference between MGO and heavy fuel oil. However, and under different price scenarios, the scrubber choice remains sustainable only for big vessels. It is noticed that small containerships cannot outweigh the capital cost of a scrubber investment and are more sensitive in different fuel price scenarios. From an environmental perspective, scrubber ranks better than MGO in the assessment of overall emissions.
Research limitations/implications
Fuel price data in this paper was based on 2019 data. As this paper was being written, the COVID-19 pandemic created a significant upheaval in global trade flows, cargo demand and fuel prices. This made any attempt to perform even a rudimentary ex-post evaluation of the 2020 sulfur cap virtually impossible. Due to limited data, such an evaluation would be extremely difficult even under normal circumstances. This paper nevertheless made a brief analysis to investigate possible COVID-19 impacts.
Practical implications
The main implication is that the global sulfur cap will increase CO2 emissions. In that sense, this should be factored in the IMO greenhouse gas discussion.
Originality/value
According to the knowledge of the authors, no analysis examining the impact of the 2020 sulfur cap on CO2 emissions has yet been conducted in the scientific literature.
Details
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Jess Browning and Seung-Hee Lee
The Incheon Region has numerous assets that fall within a Pentaport model.' These include the Incheon International Airport, the Port of Incheon, a coastal industrial park, free…
Abstract
The Incheon Region has numerous assets that fall within a Pentaport model.' These include the Incheon International Airport, the Port of Incheon, a coastal industrial park, free economic zones, a leisure port, and Songdo new town designed to be the future Silicon Valley of Korea. This paper looks at how Northeast Asia trade flows between China and Korea might be enhanced by application of the Pentaport model in making the Incheon region a North East Asian Hub. It looks also at their trade and logistics systems as well as their water borne commerce. It proposes an integrated transportation system for the Yellow Sea Region being beneficial to the economies of the Northeast Asia. It also stresses that innovative technologies for ships, terminals and cargo handling systems should be introduced to develop a competitive short sea shipping system in the region and cooperation among the regional countries will be essential to achieve the final goal. The potential of methods of container shipping is discussed as it might apply to short sea shipping in the Yellow Sea Region that could greatly facilitate Incheon's situation with respect to the broader region in application of the Pentaport model.
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