EFFECTS OF CONTAINER SHIP SPEED ON SUPPLY CHAINS’ CO2 EMISSION Dr. TRAN Nguyen Khoi Maritime Institute Prof. Dr. LAM Siu Lee Jasmine School of Civil and Environmental Engineering

Outline Research background Research issues Data and methodology Results and analyses Conclusions

1. Background Container shipping – a backbone of global supply chains 15% in terms of volume – 60% in term of value Key decisive factors – port choice, ship deployment, service frequency and transit speed

1. Background Transit speed influences on: Shipping costs Transit time between ports and lead time in supply chain CO2 emissions

2. Research issue Effects of speed on cargo lead time and CO2 emissions Studying ship speed in the context of supply chains

3. Data and Methodology Simulate door-to-door container flows via an end-to-end route: Transporting from the original point to the loading port Dwelling in the loading port Shipping between loading and unloading ports Dwelling in the unloading port Transporting to the destination

Simulation process Input data of cargo flow, route, ship, port-to-port distance and inland distance Establishing models of fuel consumption Simulating flow movement Calculating time indicators Calculating CO2 emission

3. Data and Methodology Apply in a monthly trade between the USA and Europe 6,000 TEU ships on a Trans-Atlantic route: Le Havre -> Felixstowe -> Bremerhaven -> Hamburg -> Rotterdam -> Antwerp -> New York -> Norfolk -> Baltimore -> Charleston -> Savannah -> Houston -> Le Havre   Number of flows Total TEUs Total boxes Total value Europe to US 3,920 97,578 59,154 $5,517,965,376 US to Europe 2,594 74,348 42,318 $4,013,047,458

4. Results and Analyses

Breakdown of CO2 emissions and Lead time   Landside In ports Seaside Total CO2 emissions (kg per TEU) Inland transport 251 - Handling operation 17.29 Ship operation 23.3 850 873.3 Time (hour) 10.6 229.8 281.53 515.31 Ship size: 6,000 TEUs; transit speed of 20 knots, route length 11,860 miles

Breakdown of fuel consumption per voyage

Speed effects on lead time and CO2 emission

Speed effects on supply chains’ cost

5. Conclusions Examine effects of ship speed on the whole supply chain Considerable effects regarding cargo lead time and carbon footprint Slow steaming – benefits operators and environments, but raise shippers’ inventory cost

Thank you very much for your attention.