Green Shipping under Uncertainty

The future winners in the international shipping industry will have a strong focus on energy efficiency and environmentally friendly solutions. Key to achieve this is better utilization of existing vessels and infrastructure and a more energy-efficient ship operation, for instance through better choices of vessel speed, better coordination and scheduling in ports, and a more efficient commercial fleet management system. The project "Green shipping under uncertainty" was a co-operation between Norway's two leading research centres within maritime technology, logistics and economics - NTNU/SINTEF and the Norwegian School of Economics (NHH) - that dealt with these important questions. A key research area has been the development of improved models that can describe the future uncertainty in freight rates and fuel prices. These models form the foundation for decision support systems that can assist shipowners and operators in both short-term optimisation of vessel operation enroute and within terminals, and strategic decisions regarding geographical fleet allocation. The key to a faster transition to a greener maritime industry is to handle both horizons in a framework where both technology and economics play key roles, and where uncertainty is handled in the best manner possible. The project's industry partners - Odfjell SE, Western Bulk and Bergen Shipowners' Association - represent both international tramp and industrial shipping. Their knowledge and knowhow has ensured the development of tools and models of practical relevance and use.

Due to the combination of challenging freight markets, high fuel costs and increasing regulatory pressure to reduce emissions, efficient fleet operation and optimal technology investments is on top of the maritime industry agenda. These complex decisions are made subject to multiple sources of technological, economic and regulatory uncertainty. The objective of GREENSHIPRISK is to develop our knowledge on the modelling of uncertainty and the optimisation of strategic and tactical decisions, particularl y with regards to increasing operational efficiency and reducing fuel consumption and environmental impact. Implementing the results from the project will assist the Norwegian maritime industry in moving towards a more sustainable, environment-friendly an d advanced transport system - key areas in MAROFF and Norwegian maritime policy. The four-year project draws together a multi-disciplinary consortium of leading research institutions (NTNU/MARINTEK, NHH/SNF) and industry partners representing tramp shipp ing (Western Bulk) and industrial shipping (Odfjell). Co-operation with Bergen Shipowner Association further ensures industry relevance and broad dissemination of research results through industry seminars and workshops. Deliverables are partner-specifi c case studies and prototype planning tools, as well as academic publication. GREENSHIPRISK is of strategic importance to the Norwegian maritime knowledge cluster as it bridges the economics and engineering disciplines, both in terms of applied industr y research and Ph.D. education. Understanding the economic value proposition is particularly important for the maritime industry in order to embrace technological innovation that fosters emission reduction and energy efficiency. The project also strength ens international cooperation with key research groups (HEC Montreal, Cass Business School, University of the Aegean and Universite Quebec de Montreal).