Abstract
Maritime freight shipping has increased significantly and air pollution from international ships has grown accordingly, having serious environmental effects all over the world. This paper analyzes the effects of the emission cost on ocean route choices, focusing on international container ships. First, the paper formulates a freight network model that captures decisions and interactions of ocean carriers and port terminal operators in the maritime freight transport system. Then, the emission cost is calculated based on an activity-based approach as a component of the ocean transportation cost function. A case study is examined to find if the emission cost affects ocean route choices. The results indicate that the optimal ocean route and transportation cost are changed distinctively due to the emission cost. The research discusses how the emission cost plays a role in route changes and why ocean carriers have to consider these costs in their routing decisions.
Highlights
International freight shipping has been increasing significantly due to the growth of global trades and the following increment in maritime freight transportation
International ships are usually powered by diesel engine system which emits major air pollutants such as nitrogen oxides (NOx), carbon dioxides (CO2), sulfur dioxide (SO2), and particulate matters (PM)
This study analyzed the effects of the environmental cost on ocean route choices by considering the emission cost of international container ships in addition to the general ocean transportation cost components
Summary
International freight shipping has been increasing significantly due to the growth of global trades and the following increment in maritime freight transportation. International ships are usually powered by diesel engine system which emits major air pollutants such as nitrogen oxides (NOx), carbon dioxides (CO2), sulfur dioxide (SO2), and particulate matters (PM). These are known to have a harmful influence on ship workers and local residents, causing asthma, respiratory disease, cardiac disorder, and so forth. Ocean carriers are regarded as leaders and port terminal operators are followers in the maritime freight shipping market. A numerical example is deployed to demonstrate the validity of the model and to analyze changes caused by the emission cost in optimal ocean routes and port operations
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