Economic Ship Travel Speed and Consequences for Operating Strategies of Container Shipping Companies

Abstract

In this paper, we develop a model for the economic travel speed of container ships and show how the travel speed impacts the profit situation as well as the environmental sustainability. Thereby, we differentiate between a cost-optimal and profit-optimal travel speed strategy and show, based on model calculations, how both strategies lead to lower costs as well as lower emissions. Following the dynamic network aspect, we suggest that large container ship companies can adopt both strategies under specific market conditions which allow them to act profitable as well as environmental sustainable.