Carbon reduction and cost control of container shipping in response to the European Union Emission Trading System.

In response to the EU ETS, we propose a cost model considering carbon emissions for container shipping, calculating fuel consumption, carbon emissions, EUA cost, and total cost of container shipping. We take a container ship operating on a route from the Far East to Northwest Europe as a case study. Environmental and economic impacts of including maritime transport activities in the EU ETS on container shipping are assessed. Results show that carbon emissions from the selected container ship using methanol are the smallest, and total cost of the selected container ship using methanol is the lowest. Among MGO, HFO, LNG, and methanol, methanol is the most environmentally and cost-effective option. Using LNG has greater environmental benefit, while using HFO has greater economic benefit. Compared to MGO, carbon reduction effects of LNG and methanol are 14.2% and 57.1%, and their cost control effects are 7.8% and 26.5%. Compared to HFO, carbon reduction effects of LNG and methanol are 11.7% and 55.8%, and the cost control effect of methanol is 9.3%. Speed reduction is effective in achieving carbon reduction and cost control of container shipping only when the sailing speed of the selected container ship is greater than 8.36 knots. Once the sailing speed is less than this threshold, speed reduction will increase carbon emissions and total cost of container shipping. This model can assess the environmental and economic impacts of including maritime transport activities in the EU ETS on container shipping and explore the measures to achieve carbon reduction and cost control of container shipping in response to the EU ETS.

Assessment of ship speed, operational carbon intensity indicator penalty and charterer profit of time charter ships.

The operational carbon intensity indicator (CII) proposed by the International Maritime Organization (IMO) has been officially implemented on January 1, 2023. As an important way of ship operation, applicable time charter ships are subject to the CII regulation. How to properly deal with the CII regulation is a challenge for the shipowner and charterer of time charter ships. Speed reduction is an effective measure to reduce carbon emissions and carbon intensity of ships. This study establishes a speed model including CII penalty for time charter ships. Results show that speed reductions of a time charter ship of 10 %, 20 % and 30 % reduce carbon emissions by 27.1 %, 48.8 % and 65.7 % and carbon intensity by 19 %, 36 % and 51 %, respectively. Speed reduction leads to reductions of carbon emissions, carbon intensity and CII penalty, with greater reductions for larger ships. Under the optimal charterer profit, the speed of a time charter ship increases with the rise of freight rate and reduces with the decrease of freight rate. When the fluctuation range of freight rate is the same, the larger the ship type is, the smaller the speed adjustment range is. For the same ship type, when its freight rate decreases, it is suggested that the charterer reduces speed; otherwise, it is suggested that the charterer increases speed. For different ship types, if the shipping market is booming, the charterer should charter more large ships; otherwise, the charterer can choose more small ships.