Optimal Shipping Route under the Designation of the Mediterranean Sulfur Emission Control Area: Mathematical Models and Applications

Abstract

In order to tackle sulfur oxides (SOx) emissions from maritime activities, both local governmental bodies and the International Maritime Organization (IMO) have implemented a range of regulations with the establishment of sulfur emission control areas (SECAs) being one crucial measure. Recently, the IMO made the significant decision to designate the Mediterranean as an SECA, aiming to promote environmental conservation as well as sustainable development in the maritime industry and mitigate the adverse health effects caused by air pollutants emitted from ships in Mediterranean regions. While this policy signifies significant progress in the reduction of sulfur emissions, it simultaneously presents intricate challenges for maritime enterprises. Notably, under the Mediterranean SECA designation, shipping companies may opt to bypass this region and choose routes through the Cape of Good Hope as a means of minimizing the overall costs, resulting in a potential increase in global carbon emissions. To support shipping companies in formulating optimal strategies within the framework of this new policy, the research introduces advanced techniques to make the optimal decisions concerning route selection, sailing speeds, and the appropriate number of ships for both SECAs and non-SECAs. Furthermore, we elucidate how these optimal decisions can be dynamically adapted in response to the dynamic fluctuations in fuel prices and the weekly operational expenditures incurred by maritime fleets. In the experimental results, taking into account factors like route distance and fuel costs, shipping companies select routes through the Mediterranean region in both eastward and westward directions. The total cost amounts to $6,558,766.78, utilizing eight vessels. Regarding ship speeds, vessels sail at reduced speeds in SECAs compared to non-SECAs. Furthermore, longer voyage distances require deploying a greater number of ships to maintain a weekly service frequency. This research exhibits robust timeliness and practicality, which is in line with practice. It not only timely supplements and enhances the extant body of knowledge concerning SECAs but also serves as a valuable point of reference and emulation for shipping companies seeking to optimize their operations within the framework of the new policy landscape. Furthermore, it offers pertinent insights for the IMO in formulating policies related to SECAs.