Optimizing Ship Routing to Maximize Fleet Revenue at Danaos

Takis Varelas (), Sofia Archontaki (), John Dimotikalis (), Osman Turan (), Iraklis Lazakis () and Orestis Varelas ()
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Takis Varelas: Danaos, Piraeus, Greece
Sofia Archontaki: Danaos, Piraeus, Greece
John Dimotikalis: Technological Education Institute of Crete, Crete, Greece
Osman Turan: University of Strathclyde, Glasgow, United Kingdom
Iraklis Lazakis: University of Strathclyde, Glasgow, United Kingdom
Orestis Varelas: Anangel Maritime Services Inc., Piraeus, Greece

Interfaces, 2013, vol. 43, issue 1, 37-47

Abstract: In this paper we present an innovative toolkit that Danaos Corporation developed and deployed to optimize ship routing. Operations Research In Ship MAnagement (ORISMA) provides a clear answer to the conventional dilemma of least-cost voyage versus faster voyage. ORISMA maximizes revenue by using relevant information, including financial data, hydrodynamic models, weather conditions, and marketing forecasts. It considers the financial benefits after ship voyage completion to optimize the fleetwide performance instead of single-vessel performance. Using operations research and expert knowledge, we developed ORISMA to include world-class capabilities in scheduling optimization, intelligent voyage planning, ship bunkering, and chartering. In addition to maximizing Danaos’ profit, it helps the company to minimize carbon emissions, reduce staff workload, and increase customer satisfaction.

Keywords: voyage planning; dynamic programming; cargo transport optimization; maritime routing (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:43:y:2013:i:1:p:37-47

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