This paper aims to conduct an updated literature survey on the Market-Based Measures (MBMs) currently being proposed by various member states and organizations at the International Maritime Organization (IMO) or by the scientific and grey literature as a cost-effective solution to reduce greenhouse gas (GHG) emissions from ships. Τhe paper collects, summarizes, and categorizes the different proposals to provide a clear understanding of the existing discussions on the field and also identifies the areas of prior investigation in order to prevent duplication and to avoid the future discussion at the IMO to start from scratch. Relevant European Union (EU) action on MBMs is also described. Furthermore, the study identifies inconsistencies, gaps in research, conflicting studies, or unanswered questions that form challenges for the implementation of any environmental policy at a global level for shipping. Finally, by providing foundational knowledge on the topic of MBMs for shipping and by exploring inadequately investigated areas, the study addresses concrete research questions that can be investigated and resolved by the scientific and shipping community
Aiming at reducing CO2 emissions from shipping at the EU level, a system for monitoring, reporting, and verification (MRV) of CO2 emissions of ships was introduced in 2015 with the so-called ‘MRV Regulation’. Its stated objective was to produce accurate information on the CO2 emissions of large ships using EU ports and to incentivize energy efficiency improvements by making this information publicly available. On 1 July 2019, the European Commission published the relevant data for 10,880 ships that called at EU ports within 2018. This milestone marked the completion of the first annual cycle of the regulation’s implementation, enabling an early assessment of its effectiveness. To investigate the value of the published data, information was collected on all voyages performed within 2018 by a fleet of 1041 dry bulk carriers operated by a leading Danish shipping company. The MRV indicators were then recalculated on a global basis. The results indicate that the geographic coverage restrictions of the MRV Regulation introduce a significant bias, thus prohibiting their intended use. Nevertheless, the MRV Regulation has played a role in prompting the IMO to adopt its Data Collection System that monitors ship carbon emissions albeit on a global basis.
Over the recent decades, there has been an increasing focus on energy-efficient operation of vessels. It has become part of the political agenda, where regulation is the main driver, but the maritime industry itself has also been driven towards more energy-efficient operation of the vessels, due to increasing fuel costs. Improving the energy efficiency on board vessels is not only a technical issue - factors such as awareness of the problem, knowledge skills and motivation are also important parameters that must be considered.
The paper shows how training in energy-efficient operation and awareness can affect the energy consumption of vessels. The study is based on navigational, full-mission simulator tests conducted at the International Maritime Academy SIMAC. A full-mission simulator is an image of the world allowing the students to obtain skills through learning-by-doing in a safe environment. Human factors and technical issues were included and the test sessions consisted of a combination of practical simulator exercises and reflection workshops.
The result of the simulator tests showed that a combination of installing technical equipment and raising awareness - making room for reflections-on and in-action - has a positive effect on energy consumption. The participants, on average, saved approximately 10% in fuel.
The increasing focus on energy efficient operation of vessels can be seen in both legislation and research. This paper focuses attention on the human factor influencing energy efficiency and explores the conditions for improving energy efficiency in working vessels taking situational awareness (SA) theory into consideration.
The study builds on two cases: an offshore supply vessel for the oil & gas industry and an installation vessel for wind turbines. The study used qualitative methods based on 49 interviews with seafarers and onshore employees from the vessels and shipping companies.
The study has identified that the energy efficiency of a ship is mainly influenced by legislation and the praxis formed on board. The results showed that the theory on SA is very a useful tool in explaining the factors affecting the energy efficiency of a vessel and the praxis.
The study has shown that obtaining a more energy efficient operation is complex and depends not only on the officer on board the ship. The improvement of energy efficiency is possible, but there is a need to understand the complexity of the issue and to involve both the crew and the entire system around the ship, and to obtain a shared perspective of energy efficient operation. Furthermore, in order to improve energy efficiency in shipping companies, there is a need to support the seafarers in gaining more skills for operating the ship more energy efficiently; to do this the right way there is a need to create an understanding of the system by the authorities, ship owners and charterers.
The selection of alternative energy sources for shipping can effectively mitigate the problems of high energy consumption and severe environmental problems caused by shipping. However, it is usually difficult for decision makers to select the most sustainable alternative energy source for shipping among multiple alternatives due to the complexity of considering different aspects of performances and the lack of information. This study developed a novel multi-criteria decision-making method that combines Dempster-Shafer theory and a trapezoidal fuzzy analytic hierarchy process for alternative energy source selection under incomplete information conditions. According to the developed method, nuclear power has been recognized as the most sustainable alternative energy source for shipping, followed by liquefied natural gas (LNG) and wind power, and sensitivity analysis reveals that the weights of the criteria have significant on the sustainability sequence of the three alternative energy sources for shipping. The developed method can be popularized for selecting the most sustainable alternative energy source despite incomplete information.
Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that container carriers operate differently and follow different paths in their internationalisation development. Additionally, the degree of internationalisation, measured on the basis of sea-oriented operations, differs from that measured according to land-oriented front-end marketing and sales activities. The purpose of this study is to further examine the internationalisation patterns of shipping lines. An examination of the front-end activities and the structures of leading container-shipping companies is conducted. The sales office networks of the sector’s 20 largest companies worldwide (by twenty-foot equivalent unit capacity) are analysed as key indicators. The numbers of sales offices are measured by analysing the websites of the sample (20 companies), as well as annual reports and other publicly available data sources. The findings show that not all shipping companies are international, by virtue of the industry. While it is difficult to observe differences in the overall patterns of the sales networks at a macro level, some companies differ in their activities. The data set also shows that market share and total capacity are not necessarily good indicators of a carrier’s worldwide presence. This research is based on secondary data. Other important transactional and market-oriented considerations should be examined before drawing conclusions about the internationalisation of container-shipping companies and of the industry. This paper contributes to the relevant existing research, particularly by adding its view on the demand-oriented criteria as suggested by Dunning and Lundan (2008).
For many years, there has been a growing focus on the energy efficient operation of vessels, and several performance systems are available on the market. However, most of these systems have been developed for long-distance sailing, and cannot be used directly on working vessels. The aim of the paper is to present a conceptual framework, which describes the overall decision structures in connection with energy efficient operations of working vessels. The framework consists of three models: the first model describes the operational modes and activity states of a vessel; the second model describes the conceptual dependency between the different actors in the operational context and the last model presents the conceptual solution model, which integrates the two other models. The models are developed based on nearly 50 interviews conducted with seafarers and office staff, procedure descriptions, and observations during fieldwork on board the ships. The proposed framework will form the basis for a future multi-layered decision support system.
We approach questions of Arctic marine resource economic development from the framework of environmental and resource economics. Shipping, fishing, oil and gas exploration and tourism are discussed as evolving industries for the Arctic. These industries are associated with a number of potential market failures which sustainable Arctic economic development must address. The varying scales of economic activity in the region range from subsistence hunting and fishing to actions by wealthy multinational firms. The ways in which interactions of such varied scales proceed will determine the economic futures of Arctic communities and the natural resources and ecosystems upon which they are based.
This article discusses the role of private regulators within the international legal framework of Arctic shipping. The role of private actors has been acknowledged both in legal scholarship and policy papers; but it has not yet been placed in the centre of attention. This article does so by analysing the role of private actors under the Polar Code and three types of private regulation — guidelines of classification societies, requirements of insurance industry and private contracting. It concludes that private actors have an essential role both in developing and effectuation of public international law and thus in achieving sustainable Arctic shipping.