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The optimal speed in container shipping: Theory and empirical evidence

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  • Wu, Wei-Ming

Abstract

By focusing on several critical speeds, this paper proposes a simple and applicable method to seek the optimal speed for carriers. The results show that carriers will reduce ship speed if the saved fuel cost outweighs the incurred capital and operating costs. The measure of critical fuel prices at different critical speeds is powerful to examine the optimal speed. Meanwhile, deploying extra ships and calling extra ports could be an optimal strategy for carriers in implementing slow steaming. The empirical result suggests that the optimal speeds for large ships will be higher than the ones for small ships.

Suggested Citation

  • Wu, Wei-Ming, 2020. "The optimal speed in container shipping: Theory and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:transe:v:136:y:2020:i:c:s1366554519304053
    DOI: 10.1016/j.tre.2020.101903
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    References listed on IDEAS

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    3. Adland, Roar & Cariou, Pierre & Wolff, Francois-Charles, 2020. "Optimal ship speed and the cubic law revisited: Empirical evidence from an oil tanker fleet," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    4. Jin, Lianjie & Chen, Jing & Sheu, Jiuh-Biing & Zhou, Huixin & Jian, Yanchun & Yu, Bin, 2022. "Impacts of national strategies on gateway ports: An empirical study in the Bohai Rim," Transport Policy, Elsevier, vol. 117(C), pages 1-11.
    5. Riccardo Giusti & Daniele Manerba & Roberto Tadei, 2021. "Smart Steaming: A New Flexible Paradigm for Synchromodal Logistics," Sustainability, MDPI, vol. 13(9), pages 1-21, April.
    6. Roar Adland & Pierre Cariou & Francois-Charles Wolff, 2020. "Optimal ship speed and the cubic law revisited: Empirical evidence from an oil tanker fleet," Post-Print hal-03422276, HAL.
    7. Yiwei Wu & Hongyu Zhang & Fei Li & Shuaian Wang & Lu Zhen, 2023. "Optimal Selection of Multi-Fuel Engines for Ships Considering Fuel Price Uncertainty," Mathematics, MDPI, vol. 11(17), pages 1-14, August.

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