IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v177y2023ics1366554523002235.html
   My bibliography  Save this article

Vessel weather routing subject to sulfur emission regulation

Author

Listed:
  • Lee, Sang-Jeong
  • Sun, Qinghe
  • Meng, Qiang

Abstract

The International Maritime Organization (IMO) rolled out a set of new regulations that limit the sulfur content in the fuel oil used by ships, which came into effect from 2020. This study aims to explore the operational decisions of vessels inside and outside emission control areas (ECAs) under uncertain weather conditions and scrutinizes the economics of two types of ships: fuel-switching and scrubber installation. Such operational decisions include speed, trim, and path decision. We construct a navigation grid system, in which each grid contains weather parameters and sea condition. This navigation grid system can be applied to other type of ships due to the well-established cost structure. To improve fuel consumption estimation, we train fuel consumption estimation functions with respect to weather parameters, sea conditions, and operational decisions. This study then develops a stochastic dynamic programming model to optimize the path decisions, vessel speed, and trim. To evaluate the efficiency of the developed stochastic dynamic programming model, we further conduct a case study on a Post-Panamax container vessel that operates westbound from Hamburg to Houston. We identify the path decision, speed and trim under ECAs and the uncertain weather conditions. Surprisingly, this case study demonstrates that the ship utilizing fuel-switching takes a detour trip; in contrast, the ship with a scrubber chooses the shortest path by maximizing the speed. Additionally, we observe a knock-on effect — scrubber installation lifts carbon dioxide emissions due to increased vessel speed outside the ECA region. Rich managerial insights and potential policy implications are discussed.

Suggested Citation

  • Lee, Sang-Jeong & Sun, Qinghe & Meng, Qiang, 2023. "Vessel weather routing subject to sulfur emission regulation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    • Handle: RePEc:eee:transe:v:177:y:2023:i:c:s1366554523002235
    DOI: 10.1016/j.tre.2023.103235
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554523002235
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2023.103235?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sun, Qinghe & Meng, Qiang & Chou, Mabel C., 2021. "Optimizing voyage charterparty (VCP) arrangement: Laytime negotiation and operations coordination," European Journal of Operational Research, Elsevier, vol. 291(1), pages 263-270.
    2. Qiang Meng & Shuaian Wang & Henrik Andersson & Kristian Thun, 2014. "Containership Routing and Scheduling in Liner Shipping: Overview and Future Research Directions," Transportation Science, INFORMS, vol. 48(2), pages 265-280, May.
    3. Tan, Zhijia & Zhang, Ming & Shao, Shuai & Liang, Jinpeng & Sheng, Dian, 2022. "Evasion strategy for a coastal cargo ship with unpunctual arrival penalty under sulfur emission regulation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    4. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    5. Li, Lingyue & Gao, Suixiang & Yang, Wenguo & Xiong, Xing, 2020. "Ship’s response strategy to emission control areas: From the perspective of sailing pattern optimization and evasion strategy selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    6. Meng, Qiang & Du, Yuquan & Wang, Yadong, 2016. "Shipping log data based container ship fuel efficiency modeling," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 207-229.
    7. Chen, Shukai & Meng, Qiang & Choi, Tsan-Ming, 2022. "Transportation research Part E-logistics and transportation review: 25 years in retrospect," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    8. Du, Yuquan & Meng, Qiang & Wang, Shuaian & Kuang, Haibo, 2019. "Two-phase optimal solutions for ship speed and trim optimization over a voyage using voyage report data," Transportation Research Part B: Methodological, Elsevier, vol. 122(C), pages 88-114.
    9. D Ronen, 2011. "The effect of oil price on containership speed and fleet size," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(1), pages 211-216, January.
    10. Tan, Zhijia & Zeng, Xianyang & Shao, Shuai & Chen, Jihong & Wang, Hua, 2022. "Scrubber installation and green fuel for inland river ships with non-identical streamflow," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    11. Ronen, David, 1993. "Ship scheduling: The last decade," European Journal of Operational Research, Elsevier, vol. 71(3), pages 325-333, December.
    12. Gu, Yewen & Wallace, Stein W., 2017. "Scrubber: a potentially overestimated compliance method for the Emission Control Areas - The importance of involving a ship's sailing pattern in the evaluation," Discussion Papers 2017/13, Norwegian School of Economics, Department of Business and Management Science.
    13. Qinghe Sun & Li Chen & Mabel C. Chou & Qiang Meng, 2023. "Mitigating the financial risk behind emission cap compliance: A case in maritime transportation," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 283-300, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu, Siying & Cai, Yutong & Wang, Mengtong & Wang, Hua & Meng, Qiang, 2023. "How will China–Singapore International Land–Sea Trade Corridor affect route choice behaviour? A discrete choice model," Transport Policy, Elsevier, vol. 144(C), pages 11-22.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beullens, Patrick & Ge, Fangsheng & Hudson, Dominic, 2023. "The economic ship speed under time charter contract—A cash flow approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    2. Ge, Fangsheng & Beullens, Patrick & Hudson, Dominic, 2021. "Optimal economic ship speeds, the chain effect, and future profit potential," Transportation Research Part B: Methodological, Elsevier, vol. 147(C), pages 168-196.
    3. Shuaian Wang & Dan Zhuge & Lu Zhen & Chung-Yee Lee, 2021. "Liner Shipping Service Planning Under Sulfur Emission Regulations," Transportation Science, INFORMS, vol. 55(2), pages 491-509, March.
    4. Yan, Ran & Wang, Shuaian & Psaraftis, Harilaos N., 2021. "Data analytics for fuel consumption management in maritime transportation: Status and perspectives," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    5. Manuel Herrera & Per J. Agrell & Casiano Manrique-de-Lara-Peñate & Lourdes Trujillo, 2017. "Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal," Annals of Operations Research, Springer, vol. 253(2), pages 845-869, June.
    6. Lee, Chung-Yee & Lee, Hau L. & Zhang, Jiheng, 2015. "The impact of slow ocean steaming on delivery reliability and fuel consumption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 176-190.
    7. Zhen, Lu & Hu, Yi & Wang, Shuaian & Laporte, Gilbert & Wu, Yiwei, 2019. "Fleet deployment and demand fulfillment for container shipping liners," Transportation Research Part B: Methodological, Elsevier, vol. 120(C), pages 15-32.
    8. Zeng, Xianyang & Tan, Zhijia & Zhang, Ming & Wang, Tingsong, 2024. "Scrubber installation of inland container ships: Discrepancy between government and carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    9. Tan, Zhijia & Zeng, Xianyang & Shao, Shuai & Chen, Jihong & Wang, Hua, 2022. "Scrubber installation and green fuel for inland river ships with non-identical streamflow," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    10. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    11. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    12. Asghari, Mohammad & Jaber, Mohamad Y. & Mirzapour Al-e-hashem, S.M.J., 2023. "Coordinating vessel recovery actions: Analysis of disruption management in a liner shipping service," European Journal of Operational Research, Elsevier, vol. 307(2), pages 627-644.
    13. Zheng, Jianfeng & Sun, Zhuo & Zhang, Fangjun, 2016. "Measuring the perceived container leasing prices in liner shipping network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 123-140.
    14. Ryuichi Shibasaki & Takayuki Iijima & Taiji Kawakami & Takashi Kadono & Tatsuyuki Shishido, 2017. "Network assignment model of integrating maritime and hinterland container shipping: application to Central America," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(2), pages 234-273, June.
    15. Zheng, Jianfeng & Yang, Dong, 2016. "Hub-and-spoke network design for container shipping along the Yangtze River," Journal of Transport Geography, Elsevier, vol. 55(C), pages 51-57.
    16. Wang, Hua & Wang, Shuaian & Meng, Qiang, 2014. "Simultaneous optimization of schedule coordination and cargo allocation for liner container shipping networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 261-273.
    17. Yan, Ran & Wang, Shuaian & Du, Yuquan, 2020. "Development of a two-stage ship fuel consumption prediction and reduction model for a dry bulk ship," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    18. Wang, Shuaian & Meng, Qiang & Sun, Zhuo, 2013. "Container routing in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 1-7.
    19. Mulder, J. & Dekker, R., 2016. "Will liner ships make fewer port calls per route?," Econometric Institute Research Papers EI2016-04, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    20. Sun, Zhuo & Zheng, Jianfeng, 2016. "Finding potential hub locations for liner shipping," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 750-761.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:177:y:2023:i:c:s1366554523002235. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.