Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System

Slow steaming is an operational measure in ocean-going vessels sailing at slow speeds. It can help climate mitigation efforts by cutting down marine fuel consumption and consequently reducing CO<sub>2</sub> and other Greenhouse Gas Emissions (GHG). Due to climate change both the European...

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Autores principales:	Nestor Goicoechea, Luis María Abadie
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	slow steaming container ship greenhouse gas emissions bunker price freight rate optimal decision Technology T
Acceso en línea:	https://doaj.org/article/eb31103127d54cdc8f7f9d5e5eaab772
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spelling	oai:doaj.org-article:eb31103127d54cdc8f7f9d5e5eaab7722021-11-25T17:25:58ZOptimal Slow Steaming Speed for Container Ships under the EU Emission Trading System10.3390/en142274871996-1073https://doaj.org/article/eb31103127d54cdc8f7f9d5e5eaab7722021-11-01T00:00:00Zhttps://www.mdpi.com/1996-1073/14/22/7487https://doaj.org/toc/1996-1073Slow steaming is an operational measure in ocean-going vessels sailing at slow speeds. It can help climate mitigation efforts by cutting down marine fuel consumption and consequently reducing CO<sub>2</sub> and other Greenhouse Gas Emissions (GHG). Due to climate change both the European Union (EU) and the International Maritime Organization (IMO) are analysing the inclusion of international shipping in the EU Emissions Trading System (ETS) in the near future or alternatively implementing a carbon tax. The paper proposes a methodology to decide the optimal speed of a vessel taking into account its characteristics and the factors that determine its economic results. The calculated cash flow can be used in valuation models. The methodology is applied for a case study for any container ship in a range from 2000 to 20,000 Twenty-foot Equivalent Units (TEU) on a leg of a round trip from Shanghai to Rotterdam. We calculate how speed reduction, CO<sub>2</sub> emissions and ship owner’s earnings per year may vary between a business-as-usual scenario and a scenario in which shipping is included in the ETS. The analysis reveals that the optimal speed varies with the size of the vessel and depends on several variables such as marine fuel prices, cargo freight rates and other voyage costs. Results show that the highest optimal speed is in the range of 5500–13,000 TEUs whether or not the ETS is applied. As the number of TEUs transported in a vessel increases emissions per TEU decrease. In an established freight rate market, the optimal speed fluctuates by 1.8 knots. Finally, the medium- and long-term expectations for slow steaming are analysed based on future market prices.Nestor GoicoecheaLuis María AbadieMDPI AGarticleslow steamingcontainer shipgreenhouse gas emissionsbunker pricefreight rateoptimal decisionTechnologyTENEnergies, Vol 14, Iss 7487, p 7487 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	slow steaming container ship greenhouse gas emissions bunker price freight rate optimal decision Technology T
spellingShingle	slow steaming container ship greenhouse gas emissions bunker price freight rate optimal decision Technology T Nestor Goicoechea Luis María Abadie Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System
description	Slow steaming is an operational measure in ocean-going vessels sailing at slow speeds. It can help climate mitigation efforts by cutting down marine fuel consumption and consequently reducing CO<sub>2</sub> and other Greenhouse Gas Emissions (GHG). Due to climate change both the European Union (EU) and the International Maritime Organization (IMO) are analysing the inclusion of international shipping in the EU Emissions Trading System (ETS) in the near future or alternatively implementing a carbon tax. The paper proposes a methodology to decide the optimal speed of a vessel taking into account its characteristics and the factors that determine its economic results. The calculated cash flow can be used in valuation models. The methodology is applied for a case study for any container ship in a range from 2000 to 20,000 Twenty-foot Equivalent Units (TEU) on a leg of a round trip from Shanghai to Rotterdam. We calculate how speed reduction, CO<sub>2</sub> emissions and ship owner’s earnings per year may vary between a business-as-usual scenario and a scenario in which shipping is included in the ETS. The analysis reveals that the optimal speed varies with the size of the vessel and depends on several variables such as marine fuel prices, cargo freight rates and other voyage costs. Results show that the highest optimal speed is in the range of 5500–13,000 TEUs whether or not the ETS is applied. As the number of TEUs transported in a vessel increases emissions per TEU decrease. In an established freight rate market, the optimal speed fluctuates by 1.8 knots. Finally, the medium- and long-term expectations for slow steaming are analysed based on future market prices.
format	article
author	Nestor Goicoechea Luis María Abadie
author_facet	Nestor Goicoechea Luis María Abadie
author_sort	Nestor Goicoechea
title	Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System
title_short	Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System
title_full	Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System
title_fullStr	Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System
title_full_unstemmed	Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System
title_sort	optimal slow steaming speed for container ships under the eu emission trading system
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/eb31103127d54cdc8f7f9d5e5eaab772
work_keys_str_mv	AT nestorgoicoechea optimalslowsteamingspeedforcontainershipsundertheeuemissiontradingsystem AT luismariaabadie optimalslowsteamingspeedforcontainershipsundertheeuemissiontradingsystem
_version_	1718412382726782976

Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System

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