Lecture 4 - The economics of shipping management

Welcome

For this lecture, the first half will address key metrics like cost vs. output, fuel consumption, and the influence of port efficiency, as well as discuss sustainable practices like speed reduction measures for decarbonizing shipping.

After the break, the second half will concentrate on the challenges and regulatory barriers in implementing speed reduction measures and their impact on management costs. The class will wrap up with an interactive workshop on the cubic law, which explains the relationship between speed, power, and fuel consumption in shipping operations.

What you’ll learn from this lecture

  • Cost vs Output (tonnes)
  • Fuel consumption
  • Port efficiency in voyage efficiency
  • Speed reduction measures for decarbonizing shipping
  • The barriers for implementing speed reduction measures to reduce emissions

Learning Outcomes

Skills
  • Can communicate with industry practitioners using correct terminology
Competency
  • Exchanges opinions and experiences with others with a background in the field
Knowledge
  • Understand the main results in recent research within shipping economics and analytics

Adland, R. Cariou, P., & Wolff, F.-C. (2020). Optimal ship speed and the cubic law revisited: Empirical evidence from an oil tanker fleet. Transportation Research. Part E, Logistics and Transportation Review, 140, 101972.

Pensum

Hull Cleaning