Abstract
The European Union (EU) has implemented a sub-quota of 2% for renewable marine fuels to be utilized by vessels operating within its jurisdiction, effective starting from 2034. This progressive policy signifies a significant leap towards reducing carbon emissions and promoting sustainable development. However, it also presents notable challenges for shipping companies, particularly in terms of fuel costs. In order to support shipping companies in devising optimal strategies within the framework of this new policy, this study proposes a mixed-integer linear programming model. This model aims to determine the optimal decisions for fuel choice, sailing speed and the number of vessels on various routes. Furthermore, we showcase the adaptability of our model in response to fluctuations in fuel prices, relevant vessel costs, and the total fleet size of vessels. Through its innovative insights, this research provides invaluable guidance for optimal decision-making processes within shipping companies operating under the new EU policy, enabling them to minimize their total costs effectively.
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