Flexible Optimization of International Shipping Routes considering Carbon Emission Cost

Abstract

Carbon emissions cost is a potential effective measure to restrict hydrocarbon pollution in the international shipping trade. The minimization of the total cost is pursued by ship operators, whereas voyage cost is increasingly involving the replacement of clean fuel and changing the cost of the shipping route. A flexible optimization method focusing on maximizing the total profit is developed in terms of sailing speed optimization and single port skips integrate carbon emission influence. An actual ocean shipping route from Shanghai to Rotterdam is applied to validate the effectiveness of the proposed models. The results have shown that the shipping route profit is volatile along with the sailing speed and the number of port calls. However, the profit will be maximized when applying the single port skip and will slow down the sailing speed at the same time. The demand of planned skip port can be supported by a short line container. A system composed of ocean container liner and short line container can improve the profit by 4.05% and reduce the carbon emission by 19.70%. Furthermore, sensitive results show that the profit is less affected by the changing of the carbon emission cost. A small size container has enough ability to solve the short transportation demand in adjacent ports and convert extraberthing cost into profit. These findings can provide reliable support for the shipping route decision process considering future carbon emission costs.