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Effects of Container Ship Speed on CO2 Emission, Cargo Lead Time and Supply Chain Costs

Author

Listed:
  • N.K. Tran

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)

  • J.S.L. Lam

    (NTU - Nanyang Technological University [Singapour])

Abstract

This article studies ship speed from the supply chain perspective to examine its overall effects on liner operators, customers and environment. A model is proposed to simulate container flows on the Trans-Atlantic trade via a liner service. A striking point is that we not only exploit conventional data of shipping operators but also shipment data of customers to support decision-making processes in maritime supply chains. Our simulation reveals that sailing speed only affects one-fourth of the total supply chain costs, but half of the cargo lead time and over 70% of the carbon footprint. Slow steaming brings about fuel saving and less CO2 emission but extends the transit time of goods and raises inventory carrying cost for customers. This hidden cost is a barrier against deploying mega ships, although they can lower shipping cost and CO2 emission. The simulation also implies the potential of express routes to serve premium shipments, for example medical supplies in times of pandemic and for other essential needs, as well as higher value perishable food. \textcopyright 2021 Elsevier Ltd

Suggested Citation

  • N.K. Tran & J.S.L. Lam, 2022. "Effects of Container Ship Speed on CO2 Emission, Cargo Lead Time and Supply Chain Costs," Post-Print hal-04452679, HAL.
  • Handle: RePEc:hal:journl:hal-04452679
    DOI: 10.1016/j.rtbm.2021.100723
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    Cited by:

    1. Nguyen Khoi Tran & Jasmine Siu Lee Lam, 2024. "CO2 emissions in a global container shipping network and policy implications," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 26(1), pages 151-167, March.
    2. Jiang, Meizhi & Wang, Benmei & Hao, Yingjun & Chen, Shijun & Wen, Yuanqiao & Yang, Zaili, 2024. "Quantification of CO2 emissions in transportation: An empirical analysis by modal shift from road to waterway transport in Zhejiang, China," Transport Policy, Elsevier, vol. 145(C), pages 177-186.

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