A study on the optimization of liner vessel velocity against linear emission caps

Abstract

Concerns regarding pollutant emissions from shipping activities have taken front and center stage in policy concerns in recent years in aim of Sustainable Development Goals (SDG). To mitigate pollution from sea shipping, ECAs have been established by the IMO. In compliance whereof, an option for liner operators has been (a) to switch to MGO fuel during transit within said regions and (b) to sail at lower speeds within said regions to use less of the expensive fuel. The ECA scheme is likely to impact the decisions of liner operators, for whom bunker costs incur over 70% of costs. This paper aims to develop an optimization model for use by said liner operators to determine the optimal velocity to reduce bunker costs along a predetermined route, as well as a computational study on various existing shipping routes to evaluate impacts of vessel speed as well as bunker costs.