Effects of Container Ship Speed on CO2 Emission, Cargo Lead Time and Supply Chain Costs

N.K. Tran and J.S.L. Lam
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N.K. Tran: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
J.S.L. Lam: NTU - Nanyang Technological University [Singapour]

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Abstract: This article studies ship speed from the supply chain perspective to examine its overall effects on liner operators, customers and environment. A model is proposed to simulate container flows on the Trans-Atlantic trade via a liner service. A striking point is that we not only exploit conventional data of shipping operators but also shipment data of customers to support decision-making processes in maritime supply chains. Our simulation reveals that sailing speed only affects one-fourth of the total supply chain costs, but half of the cargo lead time and over 70% of the carbon footprint. Slow steaming brings about fuel saving and less CO2 emission but extends the transit time of goods and raises inventory carrying cost for customers. This hidden cost is a barrier against deploying mega ships, although they can lower shipping cost and CO2 emission. The simulation also implies the potential of express routes to serve premium shipments, for example medical supplies in times of pandemic and for other essential needs, as well as higher value perishable food. \textcopyright 2021 Elsevier Ltd

Keywords: CO2 emission; Container liner shipping; High-speed service; Ship speed; Slow steaming; Supply chain costs (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

Published in Research in Transportation Business and Management, 2022, 43, ⟨10.1016/j.rtbm.2021.100723⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04452679

DOI: 10.1016/j.rtbm.2021.100723

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