IMPROVING PROFITS BY OPTIMIZING SHIP'S SAILING SPEED

In this study, we emphasize the importance of reduced fuel consumption in terms of reduced costs and reduced emissions in maritime transportation. Maritime transportation is the most preferable transportation mode due to large... [ view full abstract ]

In this study, we emphasize the importance of reduced fuel consumption in terms of reduced costs and reduced emissions in maritime transportation. Maritime transportation is the most preferable transportation mode due to large capacity without overdraft restrictions, reliability and low cost. In the literature, there are studies focusing on the reduction of the international maritime transportation costs by optimizing ship routing and sailing speeds. Indicating that fuel constitutes the most important operational cost category in maritime transportation, we consider factors affecting the fuel consumption. By pointing out the nonlinear relationship between fuel consumption, speed, and the payload we develop mathematical programming models to maximize profit from the ship-owner’s or ship operator’s point of view. While trying to find the optimal speed, we also consider the payload effect, demand variability and different types of loads.

Keywords: Payload; Optimal ship speed; Ship capacity and Profit maximization