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Uncertainty in Fleet Renewal: A Case from Maritime Transportation

Author

Listed:
  • Giovanni Pantuso

    (Technical University of Denmark, DK-4000 Roskilde, Denmark; and Norwegian University of Science and Technology, NO-7491 Trondheim, Norway)

  • Kjetil Fagerholt

    (Norwegian University of Science and Technology, NO-7491 Trondheim, Norway; and Norwegian Marine Technology Research Institute, NO-7450 Trondheim, Norway)

  • Stein W. Wallace

    (Norwegian School of Economics, NO-5045 Bergen, Norway)

Abstract

This paper addresses the fleet renewal problem and particularly the treatment of uncertainty in the maritime case. A stochastic programming model for the maritime fleet renewal problem is presented. The main contribution is that of assessing whether or not better decisions can be achieved by using stochastic programming rather than employing a deterministic model and using average data. Elements increasing the relevance of uncertainty are also investigated. Tests performed on the case of Wallenius Wilhelmsen Logistics, a major liner shipping company, show that solutions to the model we present perform noticeably better than solutions obtained using average values.

Suggested Citation

  • Giovanni Pantuso & Kjetil Fagerholt & Stein W. Wallace, 2016. "Uncertainty in Fleet Renewal: A Case from Maritime Transportation," Transportation Science, INFORMS, vol. 50(2), pages 390-407, May.
    • Handle: RePEc:inm:ortrsc:v:50:y:2016:i:2:p:390-407
    DOI: 10.1287/trsc.2014.0566
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    9. Gu, Yewen & Wallace, Stein W. & Wang, Xin, 2018. "Can an Emission Trading Scheme really reduce CO2 emissions in the short term? Evidence from a maritime fleet composition and deployment model," Discussion Papers 2018/10, Norwegian School of Economics, Department of Business and Management Science.
    10. Orestis Schinas & Niklas Bergmann, 2021. "The Short-Term Cost of Greening the Global Fleet," Sustainability, MDPI, vol. 13(16), pages 1-32, August.
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