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Slow steaming of liner trade: its economic and environmental impacts

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  • Jingbo Yin
  • Lixian Fan
  • Zhongzhen Yang
  • Kevin X. Li

Abstract

From 2000s, there have been three forces provoking slow steaming practice in the liner industry: (1) oversupply of shipping capacity, (2) increase of bunker price and (3) environmental pressure. This paper analyses the background and the recent application of slow steaming in liner shipping. The research looks into the questions of how slow steaming can save bunker consumption and bring benefits to the environment. On the other hand, solutions are also examined to the adverse side of slow steaming practice, i.e., how it affects the container transit time. For which, a cost model is developed to demonstrate the impact of slow steaming on the revenue change, with application to the North Europe-Far East Trade as a case study. The final result shows that the optimal speed for the shipowner is correlated with the designed speed, bunker price and the price of CO 2 . With the increase of the bunker price and the price of CO 2, the optimal speed will also increase, which means that slow steaming practice has a positive impact on the environmental protection.

Suggested Citation

  • Jingbo Yin & Lixian Fan & Zhongzhen Yang & Kevin X. Li, 2014. "Slow steaming of liner trade: its economic and environmental impacts," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(2), pages 149-158, March.
    • Handle: RePEc:taf:marpmg:v:41:y:2014:i:2:p:149-158
    DOI: 10.1080/03088839.2013.821210
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    References listed on IDEAS

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    1. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 19-39, March.
    2. Christos Kontovas & Harilaos N. Psaraftis, 2011. "Reduction of emissions along the maritime intermodal container chain: operational models and policies," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(4), pages 451-469, March.
    3. Notteboom, Theo E. & Vernimmen, Bert, 2009. "The effect of high fuel costs on liner service configuration in container shipping," Journal of Transport Geography, Elsevier, vol. 17(5), pages 325-337.
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    13. Wu, Wei-Ming, 2020. "The optimal speed in container shipping: Theory and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    14. Mallidis, Ioannis & Iakovou, Eleftherios & Dekker, Rommert & Vlachos, Dimitrios, 2018. "The impact of slow steaming on the carriers’ and shippers’ costs: The case of a global logistics network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 18-39.
    15. Dai, Wayne Lei & Fu, Xiaowen & Yip, Tsz Leung & Hu, Hao & Wang, Kun, 2018. "Emission charge and liner shipping network configuration – An economic investigation of the Asia-Europe route," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 291-305.
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