Green Maritime Transportation: Speed and Route Optimization

Abstract

Among the spectrum of logistics-based measures for green maritime transportation, this chapter focuses on speed optimization. This involves the selection of an appropriate speed by the vessel, so as to optimize a certain objective. As ship speed is not fixed, depressed shipping markets and/or high fuel prices induce slow steaming which is being practised in many sectors of the shipping industry. In recent years the environmental dimension of slow steaming has also become important, as ship emissions are directly proportional to fuel burned. Win-win solutions are sought, but they will not necessarily be possible. The chapter presents some basics, discusses the main trade-offs and also examines combined speed and route optimization problems. Some examples are finally presented so as to highlight the main issues that are at play.

Appendix: Taxonomy of Speed Papers, Amended from Psaraftis and Kontovas (2013)

Table has 7 parts, of 7 entries each. Two entries have two references each. Total references: 51

Taxonomy part I

Taxonomy parameter\ paper	Alderton (1981)	Alvarez (2009)	Andersson, Fagerholt, and Hobbesland (2014)	Bausch, Brown, and Ronen (1998)	Benford (1981)	Brown, Graves, and Ronen (1987)	Cariou (2011)
Optimization criterion	Profit	Cost	Cost	Cost	Cost	Cost	Cost
Shipping market	General	Liner	Ro/Ro	Tanker/barge	Coal	Tanker	Container
Decision maker	Owner	Owner	Owner	Owner	Owner	Owner	Owner
Fuel price an explicit input	Yes	Yes	No	Yes	No	No	Yes
Freight rate an input	Input	No	Implicit	No	No	No	No
Fuel consumption function	Cubic	Cubic	General	Unspecified	Cubic	Unspecified	Cubic
Optimal speeds in various legs	Yes	Yes	Yes	No	No	Only ballast	No
Optimal speeds as function of payload	Yes	Yes	Yes	No	No	No	No
Logistical context	Fixed route	Joint routing and fleet deployment	Fleet deployment	Routing and scheduling	Fleet deployment	Routing and scheduling	Fixed route
Size of fleet	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships
Add more ships an option	Yes	No	Yes	No	No	No	Yes
Inventory costs included	Yes	No	No	No	No	No	No
Emissions considered	No	No	No	No	No	No	Yes
Modal split considered	No	No	No	No	No	No	No
Ports included	Yes	Yes	No	Yes	No	No	No

Taxonomy part II

Taxonomy parameter\ paper	Cariou and Cheaitou (2012)	Chang and Wang (2014)	Corbett, Wang, and Winebrake (2010)	Devanney (2007)	Devanney (2010)	Doudnikoff and Lacoste (2014)	Du, Chen, Quan, Long, and Fung (2011)
							Wang, Meng, and Liu (2013a, b)
Optimization criterion	Cost	Cost	Profit	Profit	Cost or profit	Cost	Fuel consumption
Shipping market	Container	General	Container	Tanker	Tanker (VLCC)	Liner	Container
Decision maker	Owner	Owner	Owner	Owner	Owner or charterer	Owner	Owner
Fuel price an explicit input	Yes	Yes	Yes	Yes	Yes	Yes	No
Freight rate an input	No	Yes	Input	Computed	Computed	No	No
Fuel consumption function	Cubic	Cubic	Cubic	Cubic	General	Cubic	Non-linear
Optimal speeds in various legs	No	No	No	Yes	Yes	Yes	Yes
Optimal speeds as function of payload	No	No	No	No	No	No	No
Logistical context	Fixed route	Fixed route	Fixed route	World oil network	Fixed route	Fixed route in SECAs	Berth allocation
Size of fleet	Multiple ships	One ship	Multiple ships	Multiple ships	One ship	Multiple ships	Multiple ships
Add more ships an option	Yes	No	Yes	Yes	Yes	No	No
Inventory costs included	Yes	No	No	Yes	Yes	No	No
Emissions considered	Yes	No	Yes	No	No	Yes	Yes
Modal split considered	No	No	No	No	No	No	No
Ports included	Yes	Yes	No	Yes	No	No	No

Taxonomy part III

Taxonomy parameter\ paper	Eefsen and Cerup-Simonsen (2010)	Faber, Freund, Köpke, and Nelissen (2010)	Fagerholt (2001)	Fagerholt, Laporte, and Norstad (2010)	Fagerholt, Gausel, Rakke, and Psaraftis (2015)	Fagerholt and Ronen (2013)	Gkonis and Psaraftis (2012)
Optimization criterion	Cost	N/A	Cost	Fuel consumption	Cost	Profit	Profit
Shipping market	Container	Various	General	Liner	Ro/Ro	Tramp	Tanker, LNG, LPG
Decision maker	Owner	N/A	Owner	Owner	Owner	Owner	Owner
Fuel price an explicit input	Yes	No	No	No	Yes	No	Yes
Freight rate an input	No	No	No	No	No	Implicit	Input
Fuel consumption function	Cubic	Cubic	Cubic	Cubic	Cubic	General	General
Optimal speeds in various legs	No	No	Yes	Yes	Yes	Yes	Yes
Optimal speeds as function of payload	No	No	No	No	No	No	No
Logistical context	Fixed route	Fixed route	Pickup and delivery	Fixed route	Route & speed selection in SECAs	Pickup and delivery	Fixed route
Size of fleet	Multiple ships	Multiple ships	Multiple ships	One ship	One ship	Multiple ships	Multiple ships
Add more ships an option	Yes	Yes	No	No	No	No	Yes
Inventory costs included	Yes	No	No	No	No	No	Yes
Emissions considered	Yes	Yes	No	Yes	Yes	No	Yes
Modal split considered	No	No	No	No	No	No	No
Ports included	Yes	No	No	No	No	No	Yes

Taxonomy part IV

Taxonomy parameter\ paper	Hvattum et al. (2013)	Kapetanis et al. (2014)	Kontovas and Psaraftis (2011)	Lang and Veenstra (2010)	Lindstad, Asbjørnslett, and Strømman (2011)	Lo and McCord (1998)	Magirou et al. (2015)
Optimization criterion	Fuel consumption	Profit	Cost	Fuel costs	Pareto analysis	Fuel consumption	Profit
Shipping market	General	Drybulk	Container	Container	All major ship types	General	General
Decision maker	Owner	Owner	Charterer	owner	Owner	Ship’s master	Owner
Fuel price an explicit input	No	Yes	Yes	No	Yes	No	Yes
Freight rate an input	No	Yes	Input	No	No	No	Yes
Fuel consumption function	Convex	General	Cubic	linearized	Cubic	Cubic	Cubic
Optimal speeds in various legs	Yes	Yes	Yes	No	No	N/A	Yes
Optimal speeds as function of payload	No	Yes	Yes	No	Yes	No	No
Logistical context	Fixed route	Fixed route	Fixed route	Vessel arrival planning	Fixed route	Weather routing	Fixed route
Size of fleet	One ship	Multiple ships	Multiple ships	Multiple ships	Multiple ships	One ship	One ship
Add more ships an option	No	Yes	Yes	No	Yes	No	No
Inventory costs included	No	Yes	Yes	No	Yes	No	No
Emissions considered	Yes	Yes	Yes	No	Yes	No	No
Modal split considered	No	No	No	No	No	No	No
Ports included	No	Yes	Yes	Yes	Yes	No

Taxonomy part V

Taxonomy parameter\ paper	Meng and Wang (2011)	Norlund and Gribkovskaia (2013)	Norstad et al. (2011)	Notteboom and Vernimmen (2010)	Perakis and Papadakis (1989)	Perakis (1985)	Perakis and Jaramillo (1991)
Optimization criterion	Cost	Cost	Cost	Cost	Cost	Cost	Cost
Shipping market	Liner	Offshore supply vessels	Tramp	Container	Tramp	Tramp	Liner
Decision maker	Owner	Owner	Owner	Owner	Owner	Owner	Owner
Fuel price an explicit input	Yes	No	No	Yes	Yes	No	Yes
Freight rate an input	No	No	No	No	No	No	Yes
Fuel consumption function	Cubic	Cubic	Cubic	Unspecified	General	Cubic	Cubic
Optimal speeds in various legs	No	Yes	Yes	No	Yes	No	Yes
Optimal speeds as function of payload	No	No	No	No	No	No	No
Logistical context	Fleet deployment	Set covering	Pickup and delivery	Fixed route	Fleet deployment	Fleet deployment	Fleet deployment
Size of fleet	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships
Add more ships an option	No	No	No	Yes	No	Yes	Yes
Inventory costs included	No	No	No	No	Yes	No	No
Emissions considered	No	Yes	No	No	No	No	No
Modal split considered	No	No	No	No	No	No	No
Ports included		No	No	Yes	Yes	No	No

Taxonomy part VI

Taxonomy parameter\ paper	Perakis and Papadakis (1987a, b)	Perakis and Papadakis (1989)	Psaraftis and Kontovas (2009b)	Psaraftis and Kontovas (2010)	Psaraftis and Kontovas (2014)	Qi and Song (2012)	Ronen (1982)
Optimization criterion	Cost	Time	Cost	Cost	Cost	Fuel consumption	Profit
Shipping market	Tramp	General	Tramp	General	General	liner	Tramp
Decision maker	Owner	Ship’s master	Charterer	Charterer	Charterer	Owner	Owner
Fuel price an explicit input	Yes	No	Yes	No	Yes	No	Yes
Freight rate an input	No	No	Input	Input	Input	No	Input
Fuel consumption function	General	N/A	Cubic	General	General	cubic	Cubic
Optimal speeds in various legs	Yes	N/A	Yes	No	Yes	Yes	Yes
Optimal speeds as function of payload	No	No	Yes	No	Yes	No	No
Logistical context	Fleet deployment	Weather routing	Fixed route	Fixed route	Fixed or flexible route	Scheduling	Fixed route
Size of fleet	Multiple ships	One ship	Multiple ships	Multiple ships	One ship	Multiple ships	One ship
Add more ships an option	No	No	Yes	Yes	No	No	No
Inventory costs included	Yes	No	Yes	Yes	Yes	No	No
Emissions considered	No	No	Yes	No	Yes	Yes	No
Modal split considered	No	No	No	Yes	No	No	No
Ports included	Yes	Yes	No	No	No	Yes	Yes

Taxonomy part VII

Taxonomy parameter\paper	Ronen (2011)	Stopford (2009)	Wang and Meng (2012a)	Wang and Meng (2012b)	Wang and Meng (2012c)	Wang et al. (2014)	Yao, Ng, and Lee (2012)
Optimization criterion	Cost	Profit	Cost	Total cost and fuel cost	Cost	Cost	Fuel cost
Shipping market	Container	General	Container	Liner	Liner	Container	Container
Decision maker	Owner	Owner	Owner	Owner	Owner	Owner	Owner
Fuel price an explicit input	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Freight rate an input	No	Input/computed	No	No	No	No	No
Fuel consumption function	Cubic	Cubic	linearized	cubic	linearized	General	cubic
Optimal speeds in various legs	No	No	Yes	Yes	Yes	Yes	Yes
Optimal speeds as function of payload	No	No	No	No	No	No	No
Logistical context	Fixed route	Fixed route	Scheduling	Scheduling	Scheduling	Schedule design	Bunker fuel management
Size of fleet	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships	Multiple ships
Add more ships an option	Yes	No	No	No	No	No	No
Inventory costs included	No	Yes	No	No	No	Yes	No
Emissions considered	No	No	No	No	No	No	No
Modal split considered	No	No	No	No	No	No	No
Ports included	Yes	Yes	Yes	Yes	Yes	Yes	Yes