Operating between ports inside and outside emission control areas and its effect on shipping cost

https://doi.org/10.1007/s44312-024-00033-2

Announcing a new publication for Marine Development journal. The shipping industry plays a pivotal role in facilitating global trade, with over 80% of world trade by volume being transported via maritime transportation. However, the environmental impacts of shipping, particularly in terms of air pollution in coastal regions, have received increasing attention in recent years. In response to these concerns, the International Maritime Organization (IMO) has implemented a series of regulations designed to curb emissions from ships, with the establishment of Emission Control Areas (ECAs) being one of the most significant measures. ECAs are designated sea areas where stricter controls are imposed on emissions of sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM).

While previous studies have examined optimal sailing strategies within ECAs, most have been limited by the inability to provide precise latitude and longitude coordinates for the optimal sailing path. Furthermore, there is limited research on scenarios where ships operate between ports inside and outside ECAs, a common occurrence in global shipping.

This study addresses these gaps by investigating the optimal sailing patterns for ships operating between ports located inside and outside ECAs. A mixed integer nonlinear programming model is developed to minimize fuel costs while complying with ECA regulations, determining optimal speeds inside and outside the ECA and latitude and longitude coordinates of ECA entry/exit point. By analyzing 204 routes in the Atlantic Coast and Gulf of Mexico ECA, this study reveals that sailing pattern optimization is economically beneficial on over 76% of routes, a higher proportion than scenarios where both ports are within ECAs. Two critical factors influencing optimal sailing pattern selection are identified: the proportion of the sailing distance inside the ECA to the total sailing distance under the original sailing pattern (S) and fuel price ratio inside and outside the ECA. Unlike the scenario where both ports are within ECAs, S emerges as the primary determinant of strategy selection.

These findings have important implications for both shipping operators and policymakers. For shipping companies, the results highlight the potential for significant cost reductions through careful optimization of speed and path selection, particularly on routes with a high proportion of ECA regions. The identification of S and fuel price ratios as key determinants of strategy selection provides a useful heuristic for preliminary route planning and operational decision-making. From a policy perspective, the high proportion of routes where sailing pattern optimization is economically beneficial raises questions about the effectiveness of current ECA regulations in achieving their environmental objectives. The potential for increased emissions due to longer sailing distances under sailing pattern optimization may partially offset the intended benefits of ECA regulations. This suggests a need for policymakers to consider the unintended consequences of ECA boundaries and explore potential adjustments to regulatory frameworks to better align economic incentives with environmental goals.

Article reference: Li, L., Yang, J., Zhang, H. et al. Operating between ports inside and outside emission control areas and its effect on shipping cost. Mar Dev 2, 23 (2024). https://doi.org/10.1007/s44312-024-00033-2   

Keywords: Maritime transportation, Emission control areas, Ship sailing pattern, Optimization model, Shipping cost

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Marine Development aims to publish research papers in all relevant disciplines related to the ocean and the sea. Its scope spans diverse domains, including but not limited to marine resource management, marine environmental conservation, marine biodiversity, fisheries management, marine energy, marine policy, and international maritime law. The journal particularly values research that explores the complex links between marine issues and broader global challenges, such as climate change, sustainable economic development, and international cooperation. As a platform for interdisciplinary knowledge exchange, the journal will enable scholars to communicate their research and promote interdisciplinary research that advances our understanding of marine issues. It welcomes original research with a multidisciplinary focus and also encourages review articles that highlight the latest research trends and those with significant global impacts.

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e-ISSN: 3004-832X

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