[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i22p7487-d675509.html
   My bibliography  Save this article

Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System

Author

Listed:
  • Nestor Goicoechea

    (Escuela de Ingeniería de Bilbao, University of the Basque Country (UPV-EHU), 48013 Bilbao, Spain)

  • Luis María Abadie

    (Basque Centre for Climate Change (BC3), Scientific Campus, University of the Basque Country (UPV/EHU), 48940 Leioa, Spain)

Abstract
Slow steaming is an operational measure in ocean-going vessels sailing at slow speeds. It can help climate mitigation efforts by cutting down marine fuel consumption and consequently reducing CO 2 and other Greenhouse Gas Emissions (GHG). Due to climate change both the European Union (EU) and the International Maritime Organization (IMO) are analysing the inclusion of international shipping in the EU Emissions Trading System (ETS) in the near future or alternatively implementing a carbon tax. The paper proposes a methodology to decide the optimal speed of a vessel taking into account its characteristics and the factors that determine its economic results. The calculated cash flow can be used in valuation models. The methodology is applied for a case study for any container ship in a range from 2000 to 20,000 Twenty-foot Equivalent Units (TEU) on a leg of a round trip from Shanghai to Rotterdam. We calculate how speed reduction, CO 2 emissions and ship owner’s earnings per year may vary between a business-as-usual scenario and a scenario in which shipping is included in the ETS. The analysis reveals that the optimal speed varies with the size of the vessel and depends on several variables such as marine fuel prices, cargo freight rates and other voyage costs. Results show that the highest optimal speed is in the range of 5500–13,000 TEUs whether or not the ETS is applied. As the number of TEUs transported in a vessel increases emissions per TEU decrease. In an established freight rate market, the optimal speed fluctuates by 1.8 knots. Finally, the medium- and long-term expectations for slow steaming are analysed based on future market prices.

Suggested Citation

  • Nestor Goicoechea & Luis María Abadie, 2021. "Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System," Energies, MDPI, vol. 14(22), pages 1-25, November.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:22:p:7487-:d:675509
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/22/7487/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/22/7487/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Editorial, 2020. "Covid-19 and Climate Change," Journal, Review of Agrarian Studies, vol. 10(1), pages 5-6, January-J.
    2. Hualong Yang & Xuefei Ma & Yuwei Xing, 2017. "Trends in CO 2 Emissions from China-Oriented International Marine Transportation Activities and Policy Implications," Energies, MDPI, vol. 10(7), pages 1-17, July.
    3. Harilaos N. Psaraftis, 2019. "Speed Optimization vs Speed Reduction: the Choice between Speed Limits and a Bunker Levy," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    4. Sotiria Lagouvardou & Harilaos N. Psaraftis & Thalis Zis, 2020. "A Literature Survey on Market-Based Measures for the Decarbonization of Shipping," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    5. Itf, 2018. "Decarbonising Maritime Transport: Pathways to zero-carbon shipping by 2035," International Transport Forum Policy Papers 47, OECD Publishing.
    6. Grusche J. Seithe & Alexandra Bonou & Dimitrios Giannopoulos & Chariklia A. Georgopoulou & Maria Founti, 2020. "Maritime Transport in a Life Cycle Perspective: How Fuels, Vessel Types, and Operational Profiles Influence Energy Demand and Greenhouse Gas Emissions," Energies, MDPI, vol. 13(11), pages 1-20, May.
    7. Katarzyna Prill & Cezary Behrendt & Marcin Szczepanek & Iwona Michalska-Pożoga, 2020. "A New Method of Determining Energy Efficiency Operational Indicator for Specialized Ships," Energies, MDPI, vol. 13(5), pages 1-17, March.
    8. MEERSMAN, Hilde & STRANDENES, Siri Pettersen & VAN DE VOORDE, Eddy, 2014. "Port pricing: Principles, structure and models," Working Papers 2014006, University of Antwerp, Faculty of Business and Economics.
    9. Ernest Czermański & Giuseppe T. Cirella & Aneta Oniszczuk-Jastrząbek & Barbara Pawłowska & Theo Notteboom, 2021. "An Energy Consumption Approach to Estimate Air Emission Reductions in Container Shipping," Energies, MDPI, vol. 14(2), pages 1-18, January.
    10. Christa Sys & Gust Blauwens & Eddy Omey & Eddy Van De Voorde & Frank Witlox, 2008. "In Search of the Link between Ship Size and Operations," Transportation Planning and Technology, Taylor & Francis Journals, vol. 31(4), pages 435-463, June.
    11. Hercules E. Haralambides & Helen Thanopoulou, 2014. "The Economic Crisis of 2008 and World Shipping: Unheeded Warnings," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(2), pages 5-13, April-Jun.
    12. Zheng Wan & Jiawei Ge & Jihong Chen, 2018. "Energy-Saving Potential and an Economic Feasibility Analysis for an Arctic Route between Shanghai and Rotterdam: Case Study from China’s Largest Container Sea Freight Operator," Sustainability, MDPI, vol. 10(4), pages 1-13, March.
    13. Hermeling, Claudia & Klement, Jan Henrik & Koesler, Simon & Köhler, Jonathan & Klement, Dorothee, 2015. "Sailing into a dilemma," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 34-53.
    14. 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.
    15. Olumide F. Abioye & Maxim A. Dulebenets & Junayed Pasha & Masoud Kavoosi, 2019. "A Vessel Schedule Recovery Problem at the Liner Shipping Route with Emission Control Areas," Energies, MDPI, vol. 12(12), pages 1-28, June.
    16. Christian Finnsgård & Joakim Kalantari & Zeeshan Raza & Violeta Roso & Johan Woxenius, 2018. "Swedish shippers’ strategies for coping with slow-steaming in deep sea container shipping," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-24, December.
    Full references (including those not matched with items on IDEAS)

    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. Xing, Hui & Spence, Stephen & Chen, Hua, 2020. "A comprehensive review on countermeasures for CO2 emissions from ships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    2. Harilaos N. Psaraftis & Thalis Zis, 2021. "Impact assessment of a mandatory operational goal-based short-term measure to reduce GHG emissions from ships: the LDC/SIDS case study," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 445-467, September.
    3. 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.
    4. Anastasia Christodoulou & Dimitrios Dalaklis & Aykut I. Ölçer & Peyman Ghaforian Masodzadeh, 2021. "Inclusion of Shipping in the EU-ETS: Assessing the Direct Costs for the Maritime Sector Using the MRV Data," Energies, MDPI, vol. 14(13), pages 1-20, June.
    5. 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.
    6. Maxim A. Dulebenets & Junayed Pasha & Olumide F. Abioye & Masoud Kavoosi, 2021. "Vessel scheduling in liner shipping: a critical literature review and future research needs," Flexible Services and Manufacturing Journal, Springer, vol. 33(1), pages 43-106, March.
    7. 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.
    8. Monica Grosso & Fabio Luis Marques dos Santos & Konstantinos Gkoumas & Marcin Stępniak & Ferenc Pekár, 2021. "The Role of Research and Innovation in Europe for the Decarbonisation of Waterborne Transport," Sustainability, MDPI, vol. 13(18), pages 1-21, September.
    9. Dariusz Bernacki, 2021. "Assessing the Link between Vessel Size and Maritime Supply Chain Sustainable Performance," Energies, MDPI, vol. 14(11), pages 1-21, May.
    10. Tobia Piccoli & Matteo Fermeglia & Daniele Bosich & Paolo Bevilacqua & Giorgio Sulligoi, 2021. "Environmental Assessment and Regulatory Aspects of Cold Ironing Planning for a Maritime Route in the Adriatic Sea," Energies, MDPI, vol. 14(18), pages 1-31, September.
    11. Adland, Roar & Cariou, Pierre & Wolff, Francois-Charles, 2020. "Optimal ship speed and the cubic law revisited: Empirical evidence from an oil tanker fleet," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    12. Junayed Pasha & Maxim A. Dulebenets & Masoud Kavoosi & Olumide F. Abioye & Oluwatosin Theophilus & Hui Wang & Raphael Kampmann & Weihong Guo, 2020. "Holistic tactical-level planning in liner shipping: an exact optimization approach," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-35, December.
    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. Jason Monios & Gordon Wilmsmeier, 2022. "Maritime governance after COVID-19: how responses to market developments and environmental challenges lead towards degrowth," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(4), pages 699-722, December.
    15. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    16. Tomasz Neumann, 2021. "Comparative Analysis of Long-Distance Transportation with the Example of Sea and Rail Transport," Energies, MDPI, vol. 14(6), pages 1-13, March.
    17. 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).
    18. Chao-Feng Gao & Zhi-Hua Hu, 2021. "Speed Optimization for Container Ship Fleet Deployment Considering Fuel Consumption," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    19. Roar Adland & Pierre Cariou & Francois-Charles Wolff, 2020. "Optimal ship speed and the cubic law revisited: Empirical evidence from an oil tanker fleet," Post-Print hal-03422276, HAL.
    20. 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.

    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:gam:jeners:v:14:y:2021:i:22:p:7487-:d:675509. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.