Effects of slow steaming strategies on a ship fleet

Cepeda, Maricruz Aurelia Fun Sang; Assis, Luiz Felipe; Marujo, Lino Guimarães; Caprace, Jean‐David

doi:10.1007/s40868-017-0033-3

Cited by 18 publications

(9 citation statements)

References 12 publications

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“…Psaraftis and Kontovas ( 2010 ) and Dagkinis and Nikitakos ( 2015 ), also analysed the cost of shipping under varying conditions of charter rates and ship speed and concluded that slower speed was the preferred option in terms of costs if the charter rates were low, whereas higher speeds were preferred at higher charter rates. Cepeda et al ( 2017 ), also conducted sensitivity analyses with respect to bunker prices and the costs of new sheets to supplement the fleet, which showed that cost reductions favoured the use of slow steaming if bunker prices are high, and favoured operation at original speed (assuming constant transport work) if the capital expense of new vessels was high.…”

Section: The Analysis Of the Peer-reviewed And Grey Literaturementioning

confidence: 99%

Assessing the macroeconomic and social impacts of slow steaming in shipping: a literature review on small island developing states and least developed countries

et al. 2023

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The International Maritime Organisation (IMO) has adopted the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII) as short term measures for decarbonisation of the shipping industry; the IMO also made the collection of relevant data and associated reporting of the indicator mandatory from January 2023. However, many existing ships do not meet the EEXI and CII “targets” and cannot invest in other technologies to meet the relevant requirements. Given the various barriers to energy efficiency, the application of slow steaming may be a measure to effectively meet EEXI and CII requirements. A qualitative systematic literature review was conducted on the potential macroeconomic and social impacts of slow steaming on states, with a special focus on Small Island Development States and Least Developed Countries, when used as the primary modality of reducing GHG emissions from shipping. This effort includes peer-reviewed studies and studies from the gray literature, many of which include examples that borrow data from the aftermath of the economic crisis that was manifested in 2008. The vast majority of those studies is focused on the economic cost-effectiveness or impact on transportation costs when using slow-steaming as a means of reducing marine fuel consumption. Moreover, a number of these studies were relying on modeling techniques, by using a limited number of ships and associated routes to determine the effects of slow-steaming. A reasonable degree of agreement emerged from the literature that a reduction in transportation costs results from a reduction in speed, being attributed primarily to reduced fuel costs, with which it is associated. Other cost-increasing factors, such as vessel operating costs, had a less dominant effect. The literature often pointed out that the cost reduction resulting from the application of slow-steaming was unevenly distributed among maritime stakeholders. Shipping companies were the main beneficiaries of significant cost savings, but these "savings" were not always passed on to shippers.

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Section: The Analysis Of the Peer-reviewed And Grey Literaturementioning

confidence: 99%

Assessing the macroeconomic and social impacts of slow steaming in shipping: a literature review on small island developing states and least developed countries

et al. 2023

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“…Regarding the fleet, adopting slow steaming reduces the number of possible travels for the vehicles over a time horizon (e.g., per year), diminishing the overall capacity. Reducing the available services can lead to negative consequences on revenues, but these can possibly be compensated by the savings on operational and fuel costs [22]. Therefore, adopting slow steaming may require more vehicles and larger ones to maintain the same service quality and satisfy all the demand.…”

Section: Slow Steamingmentioning

confidence: 99%

Smart Steaming: A New Flexible Paradigm for Synchromodal Logistics

2021

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Slow steaming, i.e., the possibility to ship vessels at a significantly slower speed than their nominal one, has been widely studied and implemented to improve the sustainability of long-haul supply chains. However, to create an efficient symbiosis with the paradigm of synchromodality, an evolution of slow steaming called smart steaming is introduced. Smart steaming is about defining a medium speed execution of shipping movements and the real-time adjustment (acceleration and deceleration) of traveling speeds to pursue the entire logistic system’s overall efficiency and sustainability. For instance, congestion in handling facilities (intermodal hubs, ports, and rail stations) is often caused by the common wish to arrive as soon as possible. Therefore, smart steaming would help avoid bottlenecks, allowing better synchronization and decreasing waiting time at ports or handling facilities. This work aims to discuss the strict relationships between smart steaming and synchromodality and show the potential impact of moving from slow steaming to smart steaming in terms of sustainability and efficiency. Moreover, we will propose an analysis considering the pros, cons, opportunities, and risks of managing operations under this new policy.

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“…Slow steaming is recognised as an effective short-term measure for reducing GHG, yielding a total fuel saving of approximately 19% if speed is reduced by 10% [16]. Cepeda et al [17] carry out a simulation using a discrete event model of a fleet of thirteen bulk carriers based on fuel consumption, emissions and cargo transported under three conditions: sailing at current speeds, in slow steaming and in Ultra-Low Steaming (ULS). They find a reduction in fuel consumption of 51% for slow steaming and 85% for ULS and a drop in emissions of 22%.…”

Section: Introductionmentioning

confidence: 99%

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

Goicoechea

Abadie

2021

Energies

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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 CO2 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, CO2 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.

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Effects of slow steaming strategies on a ship fleet

Cited by 18 publications

References 12 publications

Assessing the macroeconomic and social impacts of slow steaming in shipping: a literature review on small island developing states and least developed countries

Assessing the macroeconomic and social impacts of slow steaming in shipping: a literature review on small island developing states and least developed countries

Smart Steaming: A New Flexible Paradigm for Synchromodal Logistics

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

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