Effects of regulation-driven green innovations on short sea shipping's environmental and economic performance

Despite its pivotal role in European trade, today’s short sea shipping (SSS) industry faces the dual challenge of lessening its environmental footprint while improving its economic performance. To reduce the pollution caused by their operations, SSS companies are required to comply with increasingly stringent environmental regulations enacted by global and regional authorities such as the European Union and the International Maritime Organization. However, the companies tend to regard those regulations as imposing an additional burden of cost that compromises their capacity to enhance their economic performance. This paper examines the impact of external institutional driver namely regulatory pressure on the adoption of green innovations in SSS and in turn, the impact of those innovations on the environmental and economic performance of SSS companies. To investigate the hypothesised relationships of those constructs, a structural equation model was developed and tested with data from a survey conducted amongst 101 short sea shipping companies headquartered in Europe. As detailed in the paper, the analysis revealed that regulatory pressure has generated green innovations that have enhanced the environmental and economic performance of European SSS companies and, as a result, led to a win–win situation for all parties involved. The paper discusses what those findings imply for SSS firm managers and policymakers who seek to improve the environmental or economic performance of Europe’s SSS industry.     

External Costs of Domestic Container Transportation: Short‐Sea Shipping versus Trucking in Taiwan

Abstract

This paper explores the external costs of domestic container transportation in Taiwan by analysing the origin and destination of current container cargoes. After reviewing an extensive literature survey of methods of external cost, a comparison of external costs between trucking and short sea shipping (SSS) by corridor is made by using a model developed in this paper. Based on the findings that external costs of SSS are considerably lower than truck transport and can be a viable alternative to current domestic container cargo transportation, we discuss the significance and managerial implications of SSS from the perspective of green logistics. In so doing, a top‐down approach is employed for developing government policies, which aim to not only reduce the external costs of domestic container transportation but also promote SSS in Taiwan.     

Analysis of the operational energy efficiency for inland river ships

This paper looks at the energy consumption and green house gas emissions of inland river shipping, and compares them with the performance of seagoing ships. The analysis is based on a case study of container shipping on the Yangtze River, China. Data were collected under both calm water and real navigation conditions, and energy efficiency operation indices under these conditions are calculated and analyzed. We find that the navigation environment can influence significantly the operational energy efficiency of inland river ships.     

Shipping log data based container ship fuel efficiency modeling

Container shipping lines have been initiating various ship fuel efficiency management programs because bunker fuel costs always dominate the daily operating costs of a container ship. As the basis of these kinds of programs, we develop a viable research methodology for modeling the relationship between the fuel consumption rate of a particular container ship and its determinants, including sailing speed, displacement, sea conditions and weather conditions, by using the shipping log data available in practice. The developed methodology consists of an outlier-score-based data preprocessing procedure to tackle the fuzziness, inaccuracy and limited information of shipping logs, and two regression models for container ship fuel efficiency. Real shipping logs from four container ships (two with 13000 TEUs and two with 5000 TEUs) over a six-month sailing period are used to exhibit the applicability and effectiveness of the proposed methodology. The empirical studies demonstrate the performance of three models for fitting the fuel consumption rate of a ship and the industrial merits of ship fuel efficiency management. In addition, we highlight the potential impacts of the models developed in this study on liner shipping network analysis, as these models can serve as base models for additionally considering the influence of displacement and weather conditions on ship fuel efficiency and exhaust emissions.     

The multi-port berth allocation problem with speed optimization and emission considerations

The container shipping industry faces many interrelated challenges and opportunities, as its role in the global trading system has become increasingly important over the last decades. On the one side, collaboration between port terminals and shipping liners can lead to costs savings and help achieve a sustainable supply chain, and on the other side, the optimization of operations and sailing times leads to reductions in bunker consumption and, thus, to fuel cost and air emissions reductions. To that effect, there is an increasing need to address the integration opportunities and environmental issues related to container shipping through optimization. This paper focuses on the well known Berth Allocation Problem (BAP), an optimization problem assigning berthing times and positions to vessels in container terminals. We introduce a novel mathematical formulation that extends the classical BAP to cover multiple ports in a shipping network under the assumption of strong cooperation between shipping lines and terminals. Speed is optimized on all sailing legs between ports, demonstrating the effect of speed optimization in reducing the total time of the operation, as well as total fuel consumption and emissions. Furthermore, the model implementation shows that an accurate speed discretization can result in far better economic and environmental results.     

Performance analysis of cargo-handling equipment from a green container terminal perspective

This study employs a green container terminal perspective to compare the performance of four types of cargo handling equipment used in container yards – automatic rail, rail, electric tire, and tire transtainers – based on working efficiency, energy saving performance, and carbon reductions. It is found that automatic rail and electric tire transtainers are the optimal types of green cargo handling equipment.     

Liner container seasonal shipping revenue management

This paper proposes a liner container seasonal shipping revenue management problem for a container shipping company. For a given weekly multi-type shipment demand pattern in a particular season, the proposed problem aims to maximize the total seasonal shipping profit by determining the number of multi-type containers to be transported and assigned on each container route, the number of containerships deployed on each ship route, and the sailing speed of containerships on each shipping leg subject to both the volume and capacity constraints of each containership. By adopting the realistic bunker consumption rate of a containership as a function of its sailing speed and payload (displacement), we develop a mixed-integer nonlinear programing with a nonconvex objective function for the proposed liner container seasonal shipping revenue management problem. A tailored branch and bound (B&B) method is designed to obtain the global ε-optimal solution of the model. Numerical experiments are finally conducted to assess the efficiency of the solution algorithm and to show the applicability of the developed model.     

Liner container assignment model with transit-time-sensitive container shipment demand and its applications

This paper proposes a practical tactical-level liner container assignment model for liner shipping companies, in which the container shipment demand is a non-increasing function of the transit time. Given the transit-time-sensitive demand, the model aims to determine which proportion of the demand to fulfill and how to transport these containers in a liner shipping network to maximize the total profit. Although the proposed model is similar to multi-commodity network-flow (MCNF) with side constraints, unlike the MCNF with time delay constraints or reliability constraints that is NP-hard, we show that the liner container assignment model is polynomially solvable due to its weekly schedule characteristics by developing two link-based linear programing formulations. A number of practical extensions and applications are analyzed and managerial insights are discussed. The polynomially solvable liner container assignment model is then applied to address several important decision problems proposed by a global liner shipping company.     

How can the maritime industry meet Sustainable Development Goals? An analysis of sustainability reports from the social entrepreneurship perspective

Sustainability Development Goals (SDGs) are a comprehensive agenda agreed upon globally that aims to stimulate actions towards economic, environmental and social sustainability. Being one of the key stakeholders, the international maritime industry plays an important role in contributing to global sustainability. By applying the concept of social entrepreneurship (SE), this study aims to examine (1) the basic and extended responsibilities (SDG 1–SDG 16) and (2) the potential collaborations within the value chain (SDG 17) concerning SDG implementation in maritime industry. To achieve these, we conduct a content analysis of sustainability reports published by container shipping liners and terminal operators from 2016 to 2019. More specifically, manual text classification is adopted to categorise the text content of sustainability reports based on 17 SDGs, and automatic text mining is employed to further identify the key roles of maritime industry related to each SDG. A unified framework is proposed, which points to varied motives and levels of comprehensiveness of the sustainability efforts by the maritime industry. This framework reveals the theoretic process of maritime industry's transitional involvement in sustainability from the SE perspective. It also creates managerial implications regarding the resource allocation strategies by maritime industry in meeting SDGs.     

The Greening of Ports: A Comparison of Port Management Tools Used by Leading Ports in Asia and Europe

Abstract

From the policy and management perspective, this study aims to investigate the port management tools that port/public authorities have at their disposal and then to analyse to what extent the tools are used to enforce or encourage green port development at functional activities of port operations and development. We conduct an exploratory and comparative review based on two axes: on the one hand, the range of tools available to port authorities (pricing, monitoring and measuring, market access control and environmental standard regulation) and on the other hand, the functional activities in ports (shipping traffic, cargo handling and storage operations, intermodal connection, industrial activities, and port expansion). The situations in the leading ports in Asia and Europe, namely Singapore, Shanghai, Antwerp and Rotterdam are studied and compared, whereby the policies' effectiveness is discussed accordingly. Findings show that the ports are particularly mature in exercising environmental standard regulations which reveals that the enforcement approach is more prevalent. The most focused functional activity is shipping traffic which reflects that the ports are driven by the International Maritime Organisation. The respective port authorities in Antwerp and Rotterdam have a higher level of influence on devising green port policy in comparison to the two Asian ports.     

How do economies of density in container handling operations affect ships’ time and emissions in port? Evidence from Norwegian container terminals

Efficient port services are prerequisites for competitive and sustainable maritime transports. This paper makes advances in studying the determinants of the time that ships spend in port and the associated emissions to air. We estimate a production model for cargo handling based on a unique dataset containing each port of call at the largest container terminals in Norway in 2014. In turn, we use auxiliary engine emission factors to estimate particulate matter and nitrogen oxide emissions from ships at berth, to determine how the corresponding damage costs of air pollution vary with container throughput, location, and terminal investments. We find that Norwegian container terminals operate under increasing returns to density. Small ships that unload few containers are far from reaping economies of density, leading to high marginal time requirements for container handling and consequently high marginal external costs. From a Pigouvian taxation perspective, port charges should therefore be regressive in the number of containers handled. Moreover, we find that the external costs of maritime transports are severely understated when port operations are ignored. Our model allows determining the marginal productivities of port facilities. Thereby, it is instrumental in designing port charges that are diversified according to the quantity of containers handled and the service quality (i.e., the speed of handling operations). Regarding contextual factors, we find that establishing high-frequent liner services improves the ship working rate, while simultaneous calls at a terminal impede productivity. The type of container (loading/unloading; empty/laden) also appears to influence the duration of ship working.     

Using the sustainable modified TAM and TPB to analyze the effects of perceived green value on loyalty to a public bike system

This article explores the effects of perceived green value, perceived green usefulness, perceived pleasure to use, subjective norms and perceived behavioral control on green loyalty to a public bike system. The mediators between perceived green value and green loyalty and a moderator of general attitude toward protecting the natural environment are also discussed. The aim of this research was to understand how to establish green loyalty via the other dimensions based on the sustainable modified technology acceptance model (modified TAM), the theory of planned behavior (TPB), and a moderator. The findings reveal that perceived pleasure to use and subjective norms have the strongest power to influence loyalty for both users and non-users. The implications of this finding are that fun in people’s lives has a strong influence on sustainable continuous use of public bikes, and that subjective norms are more effective for non-users. In addition, environmental attitude has stronger moderating effects for non-users than for users on perceived green usefulness, perceived pleasure and subjective norms. Therefore, governmental policies should promote the attitude of protecting the natural environment, perceptions of pleasure, and subjective norms so as to increase green loyalty to public bike-sharing.     

Modeling the impacts of alternative emission trading schemes on international shipping

Various market-based measures have been proposed to reduce CO₂ emissions from international shipping. One promising mechanism under consideration is the Emission Trading Scheme (ETS). This study analyzes and benchmarks the economic implications of two alternative ETS mechanisms, namely, an open ETS compared to a Maritime only ETS (METS). The analytical solutions and model calibration results allow us to quantify the impacts of alternative ETS schemes on the container shipping sector and the dry bulk shipping sector. It is found that an ETS, whether open or maritime only, will decrease shipping speed, carrier outputs and fuel consumption for both the container and dry bulk sectors, even in the presence of a “wind-fall” profit to shipping companies. Under an open ETS, the dry bulk sector will suffer from a higher proportional reduction in output than the container sector, and will thus sell more emission permits or purchase fewer permits. Under an METS, container carriers will buy emission permits from the dry bulk side. In addition, under an METS the degree of competition within one sector will have spill-over effects on the other sector. Specifically, when the sector that sells (buys) permits is more collusive (competitive), the equilibrium permit price will rise. This study provides a framework for identifying the moderating effects of market structure and competition between firms on emission reduction schemes, and emphasizes the importance of understanding the differential impacts of ETS schemes on individual sectors within an industry when considering alternative policies.     

In Search of the Link between Ship Size and Operations

Abstract

Since 1990s the liner shipping industry has faced a period of restructuring and consolidation, and been confronted with a continuing increase in container vessel scale. The impact of these changes is noticeable in trade patterns, cargo handling methods and shipping routes, in short ‘operations’. After listing factors influencing size, growth in container ship size is explained by economies of scale in deploying larger vessels. In order to quantify economies of scale, this paper uses the liner service cash flow model. A novelty in the model is the inclusion of +6000-20-foot Equivalent Unit (TEU) vessels and the distinction in costs between single and twin propeller units on ships. The results illustrate that scale economies have been – and will continue to be – the driving force behind the deployment of larger container vessels. The paper then assesses the link between ship size and operations, given current discussions about the increase in container vessel scale. It is found that (a) ship size and operations are linked; (b) optimal ship size depends on transport segment (deep-sea vs. short-sea shipping, SSS), terminal type (transhipment terminals vs. other terminals), trade lane (East-West vs. North-South trades) and technology; and (c) a ship optimal for one trade can be suboptimal for another.     

A control theoretic formulation of green driving strategies based on inter-vehicle communications

Various green driving strategies have been proposed to smooth traffic flow and lower pollutant emissions and fuel consumption in stop-and-go traffic. In this paper, we present a control theoretic formulation of distributed, cooperative green driving strategies based on inter-vehicle communications (IVCs). The control variable is the advisory speed limit, which is designed to smooth a following vehicle’s speed profile without changing its average speed. We theoretically analyze the performance of a constant independent and three simple cooperative green driving strategies and present three rules for effective and robust strategies. We then develop a distributed cooperative green driving strategy, in which the advisory speed limit is first independently calculated by each individual vehicle and then averaged among green driving vehicles through IVC. By simulations with Newell’s car-following model and the Comprehensive Modal Emissions Model (CMEM), we demonstrate that such a strategy is effective and robust independently as well as cooperatively for different market penetration rates of IVC-equipped vehicles and communication delays. In particular, even when 5% of the vehicles implement the green driving strategy and the IVC communication delay is 60 s, the fuel consumption can be reduced by up to 15%. Finally we discuss some future extensions.     

Profit-based maritime container assignment models for liner shipping networks

We propose the problem of profit-based container assignment (P-CA), in which the container shipment demand is dependent on the freight rate, similar to the “elastic demand” in the literature on urban transportation networks. The problem involves determining the optimal freight rates, the number of containers to transport and how to transport the containers in a liner shipping network to maximize the total profit. We first consider a tactical-level P-CA with known demand functions that are estimated based on historical data and formulate it as a nonlinear optimization model. The tactical-level P-CA can be used for evaluating and improving the container liner shipping network. We then address the operational-level P-CA with unknown demand functions, which aims to design a mechanism that adjusts the freight rates to maximize the profit. A theoretically convergent trial-and-error approach, and a practical trial-and-error approach, are developed. A numerical example is reported to illustrate the application of the models and approaches.     

The benefits of a monitoring strategy for firms subject to the Emissions Trading System

This study tests the impact of Internal and External Environmental Management on performance in firms subject to the European Union’s Emissions Trading System (ETS). A conceptual model is drawn up based on the existing literature, and tested on a large sample of Italian firms. The unit of analysis is single firms subject to the ETS that are involved in Green Supply Chain Management (GSCM). The ETS mechanism has been shown to be marginally beneficial for some firms while supply chain relationships are also influenced by such system. Firms need to identify suitable practices to boost the effectiveness of their environmental strategies. We propose the implementation of a monitoring strategy as a useful practice for firms to be environmentally and economically better off. Our results show that firms subject to the ETS should rely on their own (internal) Environmental Management alone for improving environmental performance, as collaboration with suppliers only has a positive impact on economic performance. However, implementation of a monitoring strategy allows a firm subject to the ETS to partially offset the inefficiency created by the system. We show that environmental collaboration does not become more effective when a monitoring practice is put in place.     

Container vessel fleet deployment for liner shipping with stochastic dependencies in shipping demand

The problem of optimal container vessels deployment is one of great significance for the liner shipping industry. Although the pioneering work on this problem dates back to the early 1990s, only until recently have researchers started to acknowledge and account for the significant amount of uncertainty present in shipping demand in real world container shipping. In this paper, new analytical results are presented to further relax the input requirements for this problem. Specifically, only the mean and variance of the maximum shipping demand are required to be known. An optional symmetry assumption is shown to further reduce the feasible region and deployment cost for typical confidence levels. Moreover, unlike previous work that tends to ignore stochastic dependencies between the shipping demands on the various routes (that are known to exist in the real world), our models account for such dependencies in the most general setting to date. A salient feature of our modeling approach is that the exact dependence structure does not need to be specified, something that is hard, if not simply impossible, to determine in practice. A numerical case study is provided to illustrate the proposed models.     

An evaluation of web site services in liner shipping in Taiwan

This paper empirically evaluates web site services in the liner shipping industry based on the service requirements of the user firms, i.e., shippers. The results suggest that shippers perceive tracing to be the most important service attribute of a web site, followed by customs response, vessel schedules, and electronic document service. Based on the concept of market segmentation, we employed cluster analysis to classify users (shippers) of web site services provided by liner shipping companies into four segments, namely support and performance services oriented firms, equipment information oriented firms, performance information oriented firms, and transaction services oriented firms. Theoretical and practical implications of the research findings are discussed.     

Strategic responses to institutional forces pressuring sustainability practice adoption: Case-based evidence from inland port operations

This article investigates strategic responses of inland ports to institutional forces pressuring their adoption of sustainability practices. We postulate that even though inland port operators strive for economic viability, there are growing pressures from various stakeholders for continuous enhancement of their environmental and social sustainability practices. We apply institutional theory to classify the effects of these forces based on five institutional antecedents – cause, constituents, content, control, and context – and further expand our theoretical framework with resource dependence tenets to discuss the spectrum of strategic responses available to inland ports to deal with institutional forces. We examine our theoretical arguments with empirical evidence collected from four inland ports using a case study-based approach. We conclude that while inland ports have a strong disposition towards social sustainability, economic considerations are still most emphasized, and environmental issues are mostly regarded in compliance with the legally mandated minimum. The most important sources of institutional pressure are identified as cause, constituents, and control. In a further step, we present evidence of the inland ports’ potential strategic responses. The study also provides insights for managers and policy makers on strategic options as appropriate organizational responses to proliferating institutional pressures for sustainability practices adoption.