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Slow steaming of liner trade: its economic and environmental impacts

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  • Jingbo Yin
  • Lixian Fan
  • Zhongzhen Yang
  • Kevin X. Li

Abstract

From 2000s, there have been three forces provoking slow steaming practice in the liner industry: (1) oversupply of shipping capacity, (2) increase of bunker price and (3) environmental pressure. This paper analyses the background and the recent application of slow steaming in liner shipping. The research looks into the questions of how slow steaming can save bunker consumption and bring benefits to the environment. On the other hand, solutions are also examined to the adverse side of slow steaming practice, i.e., how it affects the container transit time. For which, a cost model is developed to demonstrate the impact of slow steaming on the revenue change, with application to the North Europe-Far East Trade as a case study. The final result shows that the optimal speed for the shipowner is correlated with the designed speed, bunker price and the price of CO 2 . With the increase of the bunker price and the price of CO 2, the optimal speed will also increase, which means that slow steaming practice has a positive impact on the environmental protection.

Suggested Citation

  • Jingbo Yin & Lixian Fan & Zhongzhen Yang & Kevin X. Li, 2014. "Slow steaming of liner trade: its economic and environmental impacts," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(2), pages 149-158, March.
    • Handle: RePEc:taf:marpmg:v:41:y:2014:i:2:p:149-158
    DOI: 10.1080/03088839.2013.821210
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    References listed on IDEAS

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    1. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 19-39, March.
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    Cited by:

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    2. Lam, Jasmine Siu Lee, 2015. "Designing a sustainable maritime supply chain: A hybrid QFD–ANP approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 78(C), pages 70-81.
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    11. Peng, Wenhao & Bai, Xiwen, 2022. "Prospects for improving shipping companies’ profit margins by quantifying operational strategies and market focus approach through AIS data," Transport Policy, Elsevier, vol. 128(C), pages 138-152.
    12. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen & Gillen, David, 2017. "Modeling the effects of unilateral and uniform emission regulations under shipping company and port competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 99-114.
    13. 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).
    14. Mallidis, Ioannis & Iakovou, Eleftherios & Dekker, Rommert & Vlachos, Dimitrios, 2018. "The impact of slow steaming on the carriers’ and shippers’ costs: The case of a global logistics network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 18-39.
    15. Dai, Wayne Lei & Fu, Xiaowen & Yip, Tsz Leung & Hu, Hao & Wang, Kun, 2018. "Emission charge and liner shipping network configuration – An economic investigation of the Asia-Europe route," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 291-305.
    16. Konstantinos Kouzelis & Koos Frouws & Edwin Hassel, 2022. "Maritime fuels of the future: what is the impact of alternative fuels on the optimal economic speed of large container vessels," Journal of Shipping and Trade, Springer, vol. 7(1), pages 1-29, December.
    17. Mansouri, S. Afshin & Lee, Habin & Aluko, Oluwakayode, 2015. "Multi-objective decision support to enhance environmental sustainability in maritime shipping: A review and future directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 78(C), pages 3-18.

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