Green fuel retrofit strategies for vessels in the shipping alliance context 

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  • (1. Institutes of Logistics Science and Engineering, Shanghai Maritime University, Shanghai 200000, China;2. Department of Engineering Technology, University of Houston, America; 3. Shanghai Municipal Engineering Design and Research Institute (Group) Co., Ltd., Shanghai 200092, China)
Weiwei SUN (1999 - ),Femail,Master degree student,Research direction is green port logistics,(E-mail)1360073371@qq.com;Chengji Liang(1970 - ),Female,Professor,Doctoral supervisor,Ph.D. Research direction is logistics system operation planning and optimization,(E-mail)liangcj@shmtu.edu.cn

Online published: 2024-02-22

Abstract

Under the impetus of the International Maritime Organization (IMO) emission reduction strategies and government policies to reduce emissions, shipping companies have started retrofitting vessels to use green fuels. However, the retrofitting of vessels disrupts regular shipping operations, indirectly impeding vessel retrofitting plans. In this context, it is proposed that shipping companies cooperate through fleet alliances, coordinating and scheduling transportation tasks to increase the rate of vessel retrofitting. To address these issues, a two-level optimization model is established. In the upper level, the objective is to maximize the overall economic benefits of the alliance. In the lower level, the focus is on maximizing the profits of liner shipping operations based on the retrofitting plans from the upper level. This model represents a multi-leader-single-follower game involving three alliance companies and liner shipping tasks, resulting in an equilibrium problem with equilibrium constraints (EPEC). Using Karush-Kuhn-Tucker (KKT) conditions, the model is transformed into multiple mathematical programs with equilibrium constraints (MPEC), and a diagonalization algorithm (DM) is applied for solving. Sensitivity analyses are conducted on the alliance effects. The results show that this model and its solving method are feasible and can provide new insights for decarbonization in the shipping industry.

Cite this article

SUN Weiwei, LIANG Chengji, SHI Jian, WANG Yu, ZHANG Yue, LU Bin . Green fuel retrofit strategies for vessels in the shipping alliance context [J]. Journal of Dalian Maritime University, 2024 , 50(2) : 159 -167 . DOI: 10.16411/j.cnki.issn1006-7736.2024.02.017

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