1,720,998 research outputs found
Economic and environmental impacts of scrubbers investments in shipping. A multi-sectoral analysis
No full textThe International Maritime Organization (IMO) has implemented a series of increasingly stricter regulations to reduce sulphur emissions from international shipping. As of January 2020, the global sulphur cap requires the use of fuel containing a maximum of 0.5% sulphur content, or the use of technology achieving a similar reduction in sulphur emissions. Deciding between fuel switching or investing in abatement technologies has been a recurring topic for research in the last decade, with a focus on shipping activities within Emission Control Areas (ECAs). The quest for the desulphurization of shipping results in higher operating costs as well as CO2 emissions. We estimate the economic and environmental impacts of compliance with sulphur limits for a variety of representative ship types. This paper quantitatively assesses case studies across the most important shipping sectors highlighting their different challenges. The results confirm that scrubber investments are more profitable at times of higher fuel prices, and for ships that spend relatively more time sailing. We show that the potential for speed differentiation inside and outside ECAs has been diminished. This framework can be a useful decision support system for selecting the best response amongst different compliance options to environmental regulations
The enhanced role of canals and route choice due to disruptions in maritime operations
No full textPurpose – This paper focusses on the aftermath of disruptions and the importance of the two largest canals
(Suez and Panama), commenting on how during the pandemic the canal fees were lowered. Considering the
ongoing efforts to decarbonize shipping, some of the ongoing disruptions will help reach these objectives faster.
Design/methodology/approach – Following a literature review of route choice in shipping, and a
presentation of significant disruptions in recent years, the author deploys a simplified fuel consumption model
and conduct case study analyses to compare different routes environmentally and economically.
Findings – The results explain why at times of low fuel prices as in 2020, canals provided discounts to entice
ship operators to keep transiting these, instead of opting for longer routes. Considering the ongoing
repercussions of the pandemic in supply chains, as well as the potential introduction of market-based measures
in shipping, the value of transiting canals will be much higher in the coming years.
Research limitations/implications – The main limitation in this work is that the author used the publicly
available information on canal tolls, for the different ship types examined.
Practical implications – The envisioned model is simple, and it can be readily used for any ship and route
(port to port) combination available, if ship data are available to researchers.
Social implications – It is possible that canal tolls will increase, to account for the additional environmental
benefits brought to ship operators.
Originality/value – The methodology is simple and transferable, and the author proposes several interesting
research questions for follow-up work
A game theoretic approach on improving sulphur compliance
No full textThe global sulphur cap is the final step in a series of regulations that aim to reduce SOx emissions from shipping. It affects international shipping and requires all vessels to use fuel with a maximum of 0.5% sulphur content or use abatement technologies that achieve a similar reduction in SOx emissions. The existing legislative framework poses several challenges, stemming mainly from a highly non-homogeneous and spatially differentiated system, with cases where the penalty fines are as low as the benefit that the violator enjoyed from non-compliances. The purpose of this paper is to develop a game theoretic modelling framework that improves the effectiveness of sulphur regulations enforcement and proposes a uniform violation fine system. A mixed strategy game with two players is formulated, representing the ship operator (who can either comply or not with the regulation), and an enforcement agency (that can opt to inspect or not inspect the ship) respectively. The proposed model can improve compliance rates and increase societal environmental benefits through reduced sulphur emissions. We also consider a new system with warnings issued for repeated violations of the regulation that would lead to a mandatory retrofit of the vessel with sulphur abatement technologies. Such models can ensure a level playing field for ship operators that currently have invested heavily in abatement options to comply with the sulphur regulations
Crossing a Canal and pay the price or go the distance and we all pay the price
No full textThe pandemic outbreak of Covid-19 led to a sharp decline in demand for oil and historically low fuel prices. Where we go from here is unclear while the pandemic is still affecting the global economy, but it can be anticipated that in the short-term oil production will be reduced. From a ship operator’s perspective, the very low fuel prices may lead to increased sailing speeds for certain sectors (particularly liner shipping), while product and crude tankers may wait things out until fuel prices increase again. A very interesting development is that certain ship operators sail around Africa instead of passing (and paying fees) through the Suez Canal, due to the low fuel prices that make this profitable. In response, the Suez Canal authorities offered rebates up to 17% for containerships from May through to June 2020. The objective of this paper is to examine how canal authorities decided to provide financial incentives to ship operators for choosing to cross their canals, and assess the economic and environmental impacts of this choice. The methodology considers the use of an activity-based model to estimate fuel consumption, and calculate costs and emissions from the different options available to the ship operator. The perspectives of all stakeholders (ship operator, ship owner, canal authorities, and the society) are examined. The importance of market-based measures and the external costs of emissions are discussed, with a forward-looking view for the implementation of the Initial IMO strategy for the decarbonisation of maritime shippin
Towards a Zero-Emissions Port Stay; Challenges, Opportunities, and Insights from the Industry
No full textThis paper is concerned with the prospects of a potential zero emissions port stay for international ships calling at different ports. We focus primarily on shorepower provision and examine other technological solutions that can be useful in reducing the environmental footprint of port stays. We review academic literature on the subject, where it is evident that the interest on such technological solutions is on the rise. Three key stakeholders are identified in the attempt to reduce emissions from ships at ports. These groups are the port operators, the shipping companies, and the technology or solution providers that reduce emissions. To understand their challenges, their differences, as well as potential synergies, we launched a survey that targeted their views and experiences with the use of emissions abatement technologies. It is evident from the survey that the environmental aspects of port stays are seeing an increasing attention, but the main challenges are still not addressed by the existing solution space. The main challenges and barriers to the further development of shorepower solutions for international shipping are presented, and key differences across different sectors are briefly discussed. In the current uncertain environment with extreme increases in fuel and electricity prices, it is not easy to consider low-carbon solutions in the shipping sector. However, the increased pressure for environmental action, and the potential use of Market-Based Measures (MBMs) can help the transition by acting as an equalizer for the associated economics of energy provision at the port
A Game theoretic approach to improve compliance to sulphur regulations
Get PDFThe purpose of this paper is to develop a game theoretic modelling framework that improves the effectiveness of sulphur regulations enforcement. The existing legislative framework poses several challenges, stemming (mainly) from a highly non-homogeneous and spatially differentiated system, with cases where the penalty fines are as low as the benefit that the violator enjoyed from not complying. This paper presents the status quo of enforcement in different countries, where the regulation applies, and develops a game theoretic approach for a uniform violation fine system. A mixed strategy game with two players is proposed, representing the ship operator (who can choose to comply or not comply to the regulation), and an enforcement agency (that can opt to inspect or not inspect the ship) respectively. The equilibrium results in an improved penalty system (for both violators and enforcing agencies). Such a system can ensure a level playing field for ship operators that currently have invested heavily in an abatement of options to comply with the sulphur regulations, by promoting good practices among ship operators, while at the same time improve compliance rates and maximize societal environmental benefits. A discussion on the implications of the global sulphur cap of 2020 is concluding the paper, and recommendations for transferability of this framework to other regulations are provided
The Impacts of the Pandemic on the Suez and Panama Canals and the Environmental Aftermath
No full textThe pandemic outbreak of Covid-19 led to a sharp decline in demand for oil and historically low fuel prices. The very low fuel prices may lead to increased sailing speeds for certain sectors (particularly liner shipping), while product and crude tankers may wait things out until fuel prices increase again. A very interesting development is that certain ship operators sail around Africa instead of passing (and paying fees) through the Suez Canal, due to the low fuel prices that make this profitable. In response, the Suez Canal authorities offered rebates up to 17% for containerships from May through to June 2020. This paper reviews literature on the effects of canals in international shipping, and aims to propose new research questions following the impacts of the ongoing pandemic. The objective of this paper is to examine how canal authorities decided to provide financial incentives to ship operators for choosing to cross their canals, and assess the economic and environmental impacts of this choice. The methodology considers the use of an activity-based model to estimate fuel consumption, and calculate costs and emissions from the different options available to the ship operator. The perspectives of all stakeholders are examined. The importance of market-based measures and the external costs of emissions are discussed, with a forward-looking view for the implementation of the Initial IMO strategy for the decarbonisation of maritime shipping
The Implications and trade-offs of near-port ship emissions reduction policies
Get PDFMaritime shipping is considered the most efficient mode of transport in economic and environmental terms. However, its impacts on climate change through greenhouse gas emissions and on human health from air pollutants released near residential centres cannot be ignored. Over the last decades, regulatory bodies have been developing policies that seek to further improve the sector’s environmental performance and at the same time new technologies improve the efficiency of vessels. Operational practices of shipliners and port authority initiatives are also relieving the sector’s impacts.
While there has been significant research on the environmental impacts of maritime transport, there has been relatively little work focusing on the effects of maritime activity in the proximity and at ports. This thesis presents a transferable framework that allows the estimation of emissions pollutant generation near the port focusing on CO2, SO2, NOx and BC emissions. The most relevant emissions reduction actions are considered and their effects on the environmental footprint of the port are modelled. The thesis emphasizes on the implementation of speed reduction programmes near the port, use of cold ironing at berth, and the effects of fuel quality regulation, considering the perspectives of the port authority, and the ship operator. The thesis considers the emerging environmental and economic trade-offs due to the different emissions reduction actions. A non-linear convex optimization model is formulated that minimizes fuel consumption in a sequence of port calls where in some areas speed limits or fuel regulations are in place.
The results show that there is no universal port policy that can simultaneously minimize the environmental impact of all ships without economic or environmental penalties. This indicates that there is great scope of improvement in existing policies, and that regulators will need to decide what their priorities should be in improving the system. The achievements of this thesis can be beneficial to policy makers, port authorities, and shipping companies that wish to improve their environmental performance without sustaining environmental and economic penalties to do so.Open Acces
Prospects of cold ironing as an emissions reduction option
Get PDFCold ironing is the process of providing shorepower to cover the energy demands of ships calling at ports. This technological solution can eliminate the emissions of auxiliary engines at berth, resulting in a global reduction of emissions if the grid powering the ships is an environmentally friendly energy source. This paper conducts a literature review of recent academic work in the field and presents the status of this technology worldwide and the current barriers for its further implementation. The use of cold ironing is mandatory in Californian ports for ship operators and as a result terminal and ship operators were required to invest in this technology. In Europe, all ports will be required to have cold ironing provision by the end of 2025. Other regulations that target local emissions such as Emission Control Areas can have a significant impact on whether cold ironing is used in the future as a potential compliance solution. This paper constructs a quantitative framework for the examination of the technology considering all stakeholders. The role of regulation is shown to be critical for the further adoption of this technology. Illustrative case studies are presented that consider the perspective of ship operators of various ship types, and terminal operators that opt to invest in shorepower facilities. The results of the case studies show that for medium and high fuel price scenarios there is economic motivation for ship operators to use cold ironing. For the port, the cost per abated ton of pollutants is much lower than current estimates of the external costs of pollutants. Therefore, shorepower may be a viable emissions reduction option for the maritime sector, provided that regulatory bodies assist the further adoption of the technology from ship operators and ports. The methodology can be useful to port and ship operators in examining the benefits of using cold ironing as an emissions reduction action
Operational measures to reverse the negative effects of the 0.1% sulphur limit on Ro-Ro shipping
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