The value of options for time charterparty extension: an artificial neural networks (ANN) approach

The most frequently associated options in the physical shipping market are options to extend the charter period on time charters and additional shipment options on contracts of affreightment. The value of freight options, in practice, is estimated mostly by referring to forward curves. An option on freight has different properties from its financial counterparts, and the straightforward adoption of theoretical models does not produce promising results. In this paper, extension options, which have the property of options on futures, were transformed into regular European options before the application of the Black-Scholes model (BSM). The efficient market hypothesis, which justifies the parity of the performance of a long-term charter to that of repetitive short-term charters, worked as the basis for the transformation. The option values determined by the BSM were compared with actual realized values. Additionally, the artificial neural networks (ANN) was employed to derive the option values. This study is meaningful as the first-time application of both the closed-form solution and the ANN to the valuation of physical freight options. The research results can contribute to the quality of chartering decisions. The results could also be used in quantifying credit risk, as extension options tend to be granted to charterers with more creditability.     

Risk assessment framework for exposure of cargo and ports to natural hazards and climate extremes

There is an increase in risks and catastrophic losses in maritime transport including ports and cargo. Significant losses have been associated with large scale natural hazards, such as earthquakes, tsunami, cyclones, and other extreme weather events. This paper identifies the main gaps in understanding maritime risks in transportation research. The gaps are attributed to insufficient empirical work available from the maritime transport and logistics research community to guide multi-risk and natural hazards impact assessment on seaport and cargo. In addition, disaster studies communities have barely made adequate efforts to understand and assess port and cargo risks arising from multi-hazards and disaster events. This paper examines existing conceptual frameworks concerning exposure and risk assessments of natural catastrophe’s impacts. Furthermore, the paper identifies trends and gaps in risk assessment frameworks in the field of disaster studies that can be beneficial for maritime risk research. The authors propose a new risk assessment framework that can guide future research and multi-hazard risk assessment processes at different scales of maritime risks.     

A trial application of FSA methodology to the hatchway watertight integrity of bulk carriers

Formal safety assessment (FSA) is a formal, structured and systematic methodology, aimed at enhancing maritime safety, including protection of life, property and marine environment, by using risk and cost–benefit assessments. For the application of this methodology to the rule-making process, the International Maritime Organization (IMO) presented the Interim Guidelines, which describe procedures of FSA and inputs/outputs of each procedure in detail. This paper basically deals with an application of FSA methodology according to the IMO's Interim Guidelines to the hatchway watertight integrity of bulk carriers, which was carried out as a cooperative research between Korean Register of Shipping and Seoul National University. As results of this application study, 18 hazards are identified and 32 risk control measures are devised to reduce the associated risks. Potential risks, costs and benefits when some Risk Control Options are introduced are evaluated in monetary unit of US $. Finally, some discussions and recommendations based on experiences are also given for both future work and better application of this FSA methodology to the rule-making process.     

The use of polycyclic aromatic hydrocarbons as a particulate tracer in the water column of Gaoping (Kaoping) Submarine Canyon

Time-series samples of settling particles were collected in the water column of Gaoping (formerly spelled Kaoping) Submarine Canyon (KPSC) with two sediment traps on taut-line moorings deployed at two different depths (60 and 280 m) between May 26 and June 27, 2004. Average total polycyclic aromatic hydrocarbon (PAH) concentrations of upper and lower trap array samples were 310 ± 61 ng g^− 1 dw (range: 200–440) and 240 ± 36 ng g^− 1 dw (range: 180–290), respectively. Principal component analysis results suggest that PAH sources in the trap-collected particles included diesel vehicle/coal burning, diagenetic sources, and petroleum release. PAH downward fluxes based on settling particles were estimated to be 12–44 μg m^− 2 d^− 1. These values are higher than those reported in the literature for most coastal areas. During the sampling period, both traps were significantly tilted by tidal current and fluctuated vertically. The upper traps experienced greater vertical movements, thus their particle characteristics (e.g., POC, particle mass, and fine particle fraction) varied more than those of the lower traps. Hourly depth variations of the tilted sediment trap array were echoed by the corresponding total PAH concentrations. Moreover, the PAH composition of the collected particles was related to the flow direction and speed. These observations suggest that PAHs can be used as an effective chemical tracer for the transport of terrestrial and marine particulates in a complex aquatic environment like Gaoping (Kaoping) Submarine Canyon.     

Workspace analysis to generate a collision-free torch path for a ship welding robot

We propose a method to determine the optimal initial location and to generate torch paths for a ship welding robot with 6 degrees of freedom (DOF). The optimal initial location is determined using an objective function, which is set up by combining constraints on the torch posture, manipulability, and the range of each joint angle to avoid collisions. A genetic algorithm (GA) is used to optimize the objective function because it does not require additional derivatives. After the initial location is determined, torch paths are generated by interpolating the starting point, endpoints and torch postures using inverse kinematics. Our method can be applied to automate the welding job for each block during ship building, irrespective of the shape of the robots, by changing the objective function.     

Estimation of Tire-Road Friction Using Observer Based Identifiers

This paper presents methods for identifying the tire-road friction coefficient. The proposed methods are: an observer-based least square method and an observer/filtered-regressor-based method. These methods were designed assuming that some of the states are not available since physical parameter identification methods developed assuming that the system states are available are not attractive from a practical point of view. The observer is used to estimate signals which are difficult or expensive to measure. Using the estimated states of the system and the filtered-regressor, the parameter estimates are obtained. The proposed methods are evaluated on an eight state nonlinear vehicle/transmission simulation model with a Bakker-Pacejka's formula tire model. Vehicle tests have been performed on dry and wet roads to verify the performance of the methods. It has been shown through simulations and vehicle tests how the RPM sensors can be used with observer based identification methods to estimate the tire-road friction from measurements of engine rpm, transmission output speed and wheel speed. The proposed methods will be useful in the implementation and adaptation of vehicle collision warning/avoidance algorithm since the tire-road friction can be estimated only using the RPM sensors which are currently being used in production vehicles.     

GIS-based highway design review system to improve constructability of design

This paper presents a Geographic Information Systems (GIS) as a tool which can help highway engineers review a completed highway design to improve its constructability. The GIS can link different data sets together using geographical location as the common key between the data sets to perform various spatial operations. In this paper, the GIS is used to integrate various highway design data using a common milepost referencing system. The GIS allows the integration of the highway design information by establishing common spatial relationships between various highway design features and their geographical locations. The GIS can provide a comprehensive platform upon which all aspects of the highway project review process can be built. This paper also addresses the interface of GIS with the existing highway project data bases and computer-aided design files. The proposed GIS-based highway design review system can improve the constructability of the highway design at an early design review stage.     

High Frequency Characteristics of a Front Wheel Suspension

This paper presents a modeling method to analyze the frequency characteristics of a suspension system. The method employs the superelement and lumped methods for structural modeling of flexible bodies, and it is incorporated with a multibidy dynamics formulation in which joint nonlinearities can be considered effectively. To verify the accuracy of the results obtained by the modeling method, a quarter car test was made. Test results showed that the computational model provided fairly accurate frequency characteristics for the suspension system. Other useful conclusions were also drawn from this study.     

Optimal slack time for timed transfers at a transit terminal

At transit terminals where two routes interchange passengers, total system costs may be reduced by allowing some “slack” time in the vehicle schedules to decrease the probability of missed connections. Transfer cost functions are formulated and used to determine optimal slack time for simple systems with transfers between one bus route and one rail line. Some analytic results are derived for empirical discrete and Gumbel distributions of bus arrival times. Relations between the optimal slack times and headways, transfer volumes, passenger time values, bus operating costs, and standard deviations of bus and train arrivals are also developed numerically using normally distributed arrivals. However, the proposed numerical approach can optimize slack times for any observed arrival distributions. The results provide some guidelines on desirable slack times and show that schedule coordination between the two routes is not worth attempting when standard deviations of arrivals exceed certain levels. Possible extensions of this work are suggested in the last section.