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Optimizing Ship Routing to Maximize Fleet Revenue at Danaos

Author

Listed:
  • Takis Varelas

    (Danaos, Piraeus, Greece)

  • Sofia Archontaki

    (Danaos, Piraeus, Greece)

  • John Dimotikalis

    (Technological Education Institute of Crete, Crete, Greece)

  • Osman Turan

    (University of Strathclyde, Glasgow, United Kingdom)

  • Iraklis Lazakis

    (University of Strathclyde, Glasgow, United Kingdom)

  • Orestis Varelas

    (Anangel Maritime Services Inc., Piraeus, Greece)

Abstract

In this paper we present an innovative toolkit that Danaos Corporation developed and deployed to optimize ship routing. Operations Research In Ship MAnagement (ORISMA) provides a clear answer to the conventional dilemma of least-cost voyage versus faster voyage. ORISMA maximizes revenue by using relevant information, including financial data, hydrodynamic models, weather conditions, and marketing forecasts. It considers the financial benefits after ship voyage completion to optimize the fleetwide performance instead of single-vessel performance. Using operations research and expert knowledge, we developed ORISMA to include world-class capabilities in scheduling optimization, intelligent voyage planning, ship bunkering, and chartering. In addition to maximizing Danaos’ profit, it helps the company to minimize carbon emissions, reduce staff workload, and increase customer satisfaction.

Suggested Citation

  • Takis Varelas & Sofia Archontaki & John Dimotikalis & Osman Turan & Iraklis Lazakis & Orestis Varelas, 2013. "Optimizing Ship Routing to Maximize Fleet Revenue at Danaos," Interfaces, INFORMS, vol. 43(1), pages 37-47, February.
    • Handle: RePEc:inm:orinte:v:43:y:2013:i:1:p:37-47
    DOI: 10.1287/inte.1120.0668
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    Citations

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    Cited by:

    1. Lance W. Saunders & J. Paul Brooks & Jason R. W. Merrick & Chad W. Autry, 2020. "Addressing Economic/Environmental Sustainability Trade‐offs in Procurement Episodes with Industrial Suppliers," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1256-1269, May.
    2. Andrew Johnson & Yao Zhao & Xin Xu, 2016. "Transportation Planning and Scheduling for the 2014 Special Olympics USA Games," Interfaces, INFORMS, vol. 46(3), pages 218-230, April.
    3. Ioannis Fragkos & Bert De Reyck, 2016. "Improving the Maritime Transshipment Operations of the Noble Group," Interfaces, INFORMS, vol. 46(3), pages 203-217, April.
    4. Andrew S. Manikas & James R. Kroes & Thomas F. Gattiker, 2016. "Metro Meals on Wheels Treasure Valley Employs a Low-Cost Routing Tool to Improve Deliveries," Interfaces, INFORMS, vol. 46(2), pages 154-167, April.
    5. Mark Ching-Pong Poo & Tsz Leung Yip, 2019. "An optimization model for container inventory management," Annals of Operations Research, Springer, vol. 273(1), pages 433-453, February.
    6. Assmann, Lisa & Andersson, Jonas & Eskeland, Gunnar S., 2015. "Missing in Action? Speed optimization and slow steaming in maritime shipping," Discussion Papers 2015/13, Norwegian School of Economics, Department of Business and Management Science.

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