Risk management methods for the liner shipping industry: the case of the Bunker Adjustment Factor

Through the implementation of the Bunker Adjustment Factor (BAF), a shipowner is able to transfer the risk of fuel price fluctuation to the shipper. This and other surcharges are generally undesired by shippers who must pay this fee. The research presented provides an alternative method of risk management that is more effective than the current method, while responding to customer service demands for simplified tariffs. By strategic use of commodity futures, the shipowner is able to better reduce his/her risk exposure, transferring it to willing parties at the futures exchanges, thereby eliminating the need for the bunker surcharge.     

Aggregation of common-metric attributes in preference revelation and implications for willingness to pay

There is a growing interest in process heterogeneity in the way that individuals evaluate packages of attributes in real or hypothetical markets and make choices. We consider the role of the relative magnitude of pairs of attributes that are defined on a common metric (e.g., minutes or dollars), to look at the extent to which attributes might be added in preference revelation, in contrast to the commonly adopted single rule of compensatory behaviour. The focus is on a choice model specification that allows for different treatments of pairs of attributes across a sample, in contrast to studies that impose a single rule on all observations, and that does not require supplementary information on whether specific individuals claimed to have added up attributes; rather we structure a non-linear utility function that permits a probabilistic aggregation of each attribute. We translate this into a willingness to pay for travel time-savings for car commuters, in the context of tolling roads in Sydney, and contrast it with the results from the additive model, and a model where self-stated attribute processing information is taken into account. The empirical evidence suggests that mean willingness to pay increases when the addition rule is accounted for. This is a potentially important message for environmental applications where two or more attributes have a common metric.     

Assessing the economic significance of port activity: evidence from ABP Operations in industrial South Wales

The paper seeks to improve the evidence base surrounding regional ports and their economic impact. The paper reveals that industries dependent on the port infrastructure are actually key regional players, often operating in relatively fast growth sectors, and contributing to the economic and social needs of the local economy. The focus in the case element of the paper is the operations of Associated British Ports (ABP) plc in industrial South Wales. In examining the direct and indirect consequences of the port activity the paper adopts an input–output framework of analysis. A better contextualization of the economic impact of ports is shown to be necessary in the devolved policy-making environment in the region.     

Energy Consumption Analysis of Different Bev Powertrain Topologies by Design Optimization

Flexible layout of electric motors in battery electric vehicles (BEVs) has enabled different powertrain topologies to be used. However, these different powertrain topologies also affect the overall efficiency of energy conversion from the electrochemical form stored in the battery to the mechanical form on the driving wheels for vehicle propulsion. In this study, a methodology combining an energy-based BEV simulation model with the genetic algorithm optimization approach is applied to evaluate the energy efficiency of three different BEV powertrain topologies. The analysis is carried out assuming two different urban driving conditions, as exemplified by the New European Drive Cycle (NEDC) and the Japanese JC08 drive cycle. Each of the three BEV powertrain topologies is then optimized – in terms of its electric motor size and, where applicable, gear reduction ratio – for minimum energy consumption. The results show that among the three powertrain topologies, the wheel-hub drive without gear reducers consumes the least energy. The energy consumption of BEVs under the more aggressive JC08 drive cycle is consistently 8 % above that under NEDC for all three powertrain topologies considered.