Dynamic speed choice in bulk shipping

Roar Adland () and Haiying Jia
Additional contact information
Roar Adland: Norwegian School of Economics
Haiying Jia: Center for Applied Research (SNF)

Maritime Economics & Logistics, 2018, vol. 20, issue 2, No 5, 253-266

Abstract: Abstract Dynamic speed choice in real-life seaway and market conditions, when subject to technical and contractual constraints, is a highly complex problem. In this paper, we investigate dynamic speed choice using a large dataset of average sailing speeds for nearly 18,000 individual voyages as calculated from Automated Identification System (AIS) data. Using a set of multiple regression models, we expand the traditional analysis of speed determinants, from only macroeconomic variables to also include proxies for organizational constraints, operator quality, trading pattern, loading conditions, technical constraints and ship-specific variables. We find that owners do not appear to adjust vessel speeds based on freight market conditions and fuel prices, as argued in classical maritime economic theory. Instead, vessel-specific variables such as age and design speed, as well as operational factors such as loading conditions, show some explanatory power. The poor model fit may be due to factors outside our model, such as weather conditions and contractual limitations. From a policy point of view, the results actually suggest that higher fuel prices do not contribute to a reduction in vessel speeds and emissions.

Keywords: speed; AIS data; slow steaming; freight rates; bulk carriers; fuel prices (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://link.springer.com/10.1057/s41278-016-0002-3 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:marecl:v:20:y:2018:i:2:d:10.1057_s41278-016-0002-3

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41278/PS2

DOI: 10.1057/s41278-016-0002-3

Access Statistics for this article

Maritime Economics & Logistics is currently edited by Hercules E. Haralambides

More articles in Maritime Economics & Logistics from Palgrave Macmillan, International Association of Maritime Economists (IAME) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().