Abstract
This article is motivated by growing concerns related to shipping \(\hbox {CO}_{2}\) and \(\hbox {SO}_{\mathrm{x}}\) emissions in the hope that ship operators further consider the environmental impacts of their activities when attempting to maximize profit. The article proposes a liner shipping multi-objective optimization (MOO) model based on profit maximization, \(\hbox {CO}_{2}\) emissions minimization, and \(\hbox {SO}_{\mathrm{x}}\) emissions minimization for which all objective functions are a function of vessel sailing speed. Two demand configurations are considered: elastic and inelastic. The MOO model is solved using three different methods and is applied to two liner services deployed on the trans-Pacific and Europe–Far East markets. A single-objective optimization approach is also proposed in which the monetary value of the emissions is considered in an objective function. The main conclusion of the article is that the sensitivity of demand to transit time is based on the gap between economic and environmental optimal solutions and that policies considering imposing a tax on \(\hbox {CO}_{2}\) or \(\hbox {SO}_{\mathrm{x}}\) to reduce the negative externalities from international shipping should account for this element.
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Notes
If transportation demand were stochastic with continuous probability distribution, it would be easy to take this into account in the objective function by changing the revenue function into an integration over the possible values of transportation demand up to vessel capacity. However, this would not affect the nature of the objective function, and constraints (7)–(10) would be indirectly included through the integral bounds. Moreover, the same could apply in the case of stochastic demand with a discrete probability distribution.
Hong Kong, Yantian, Kaohsiung, Keelung, Los Angeles, Oakland, Busan, Kwangyang, Keelung, Kaohsiung, Hong Kong
Felixstowe, Hamburg, Rotterdam, Le Havre, Colombo, Taipei, Ningbo, Shanghai, Colombo, Felixstowe
For the trans-Pacific service, when assuming \(\hbox {P}_{\mathrm {CO}_{2}} =\$50/\hbox {ton}\) of \(\hbox {CO}_2\) and \(\hbox {P}_{\mathrm {SO}_\mathrm{x}}=\$121.50/\hbox {ton}\) of \(\hbox {SO}_\mathrm{x}\), the optimal profit for the single-objective model is equal to $673/day. The optimal speed is 11.0 knots with 10 vessels, similar to results when higher values were considered.
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Acknowledgements
This research has been supported by the Social Sciences and Humanities Research Council of Canada (SSHRC) project (N\(^{\circ }\) 895-2017-1003): “Green Shipping: Governance and Innovation for a Sustainable Maritime Supply Chain”.
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Cheaitou, A., Cariou, P. Greening of maritime transportation: a multi-objective optimization approach. Ann Oper Res 273, 501–525 (2019). https://doi.org/10.1007/s10479-018-2786-2
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DOI: https://doi.org/10.1007/s10479-018-2786-2