Sustainable Shipping

Harilaos N. PsaraftisEditor

Sustainable ShippingA Cross-Disciplinary View

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EditorHarilaos N. PsaraftisDTU Management EngineeringTechnical University of DenmarkKongens Lyngby, Denmark

ISBN 978-3-030-04329-2 ISBN 978-3-030-04330-8 (eBook)https://doi.org/10.1007/978-3-030-04330-8

Library of Congress Control Number: 2018968417

© Springer Nature Switzerland AG 2019This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part ofthe material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting, reproduction on microfilms or in any other physical way, and transmission or informationstorage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodologynow known or hereafter developed.The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoes not imply, even in the absence of a specific statement, that such names are exempt from the relevantprotective laws and regulations and therefore free for general use.The publisher, the authors, and the editors are safe to assume that the advice and information in this bookare believed to be true and accurate at the date of publication. Neither the publisher nor the authors orthe editors give a warranty, express or implied, with respect to the material contained herein or for anyerrors or omissions that may have been made. The publisher remains neutral with regard to jurisdictionalclaims in published maps and institutional affiliations.

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To Aleka, Anastasia and Nikos

Foreword and Acknowledgments

This book is a compilation of material on sustainable shipping. The material comesfrom various sources, mostly from work of several external invited colleagues, butalso from research projects that my associates and I have been involved in. Anoutline of the scope and contents of the book is presented in the Preface.

The idea for this book originated in October 2016, a few months after myprevious book, Green Transportation Logistics: The Quest for Win-Win Solutions,also published by Springer, came out.

As developments at the International Maritime Organization (IMO) and theEuropean Union (EU) on how to reduce maritime greenhouse gas (GHG) emissionslooked interesting at the time, it occurred to me that a book focusing on sustainableshipping may be of interest to maritime stakeholders. The basic foundation forthe book was research that originated circa 2008, when the Hellenic Chamber ofShipping (HCS) awarded to the National Technical University of Athens (NTUA),my former affiliation, a small study on ship emissions. The study included ananalysis of CO2 emissions statistics for the world fleet and the development of arudimentary online ship emissions calculator, which is actually still in place.1 TheHCS study was the first among several larger projects dealing with the interfaceof ship emissions and logistics, either as a central subject or as part of a widercontext. Additional sponsors at NTUA included the European Commission, DetNorske Veritas, the American Bureau of Shipping, the Lloyd’s Register Foundationand the General Secretariat for Research and Technology (Greece).

Momentum to the book idea was added by my parallel involvement in IMOmatters on both the GHG emissions subject (initially in the period 2010–2013as an adviser to HCS and more recently after mid-2017 as an adviser with theIntercargo delegation) and on the subject of environmental risk evaluation criteriaas applied to oil pollution (period 2007–2011 as an adviser to HCS). In addition, inthe period 2014–2018, I was involved in the European Sustainable Shipping Forum(ESSF) subgroup on competitiveness (established by the European Commission,

1http://www.martrans.org/emis/

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DG MOVE) as an invited expert on matters mostly pertaining to the impact of sulfurregulations on European Short Sea Shipping. Several new projects at the TechnicalUniversity of Denmark (DTU) that relate to maritime emissions (period 2015 on)and several DTU MSc theses provided further interesting material for the book.

Relevant research conducted at DTU and reported here was funded in part bythe RoRo SECA project (supported by the Danish Maritime Fund and the OrientsFund), the Blue SIROS project (supported by the European Space Agency, DTUspace leader) and the ShipCLEAN project (supported by the Swedish EnergyAgency, Chalmers University leader). Three recent DTU MSc theses, by JuanMorales, Massimo Giovannini and Fabio Vilas, have also contributed some materialto Chap. 10 of the book. My own time in editing the book and in writing Chap. 10and parts of Chaps. 7, 11 and 13 was covered in part by an internal grant by thepresident of DTU and by an internal grant at the DTU Department of ManagementEngineering, Management Science Division.

Still, most of the material of this book came from invited colleagues, who infact have written fully 9 of the book’s 13 chapters and have contributed to 3 more.So obviously my biggest thanks have to go to all these (23) authors, who kindlyaccepted my invitation to contribute to the book and without whom the book wouldbe impossible. Among them, I would especially like to thank Poul Woodall, director,Environment & Sustainability at DFDS, and Thalis Zis, postdoc at DTU, for theirconstructive review of some of the chapters of the book. I want also to thank KostasGkonis, secretary general of Intercargo, for giving me the opportunity to attendsome of the recent IMO/MEPC meetings on the subject of reducing maritime GHGemissions, as an adviser with the Intercargo delegation. Naturally, any opinions thatI express in this book are only my own and do not necessarily represent Intercargo’sposition or anybody else’s position for that matter.

Last but not least, I am grateful to Springer for kindly accepting my proposal to bethe editor of this book and, in particular, to Matthew Amboy, Faith Su and KalaiselviRamalingam for their excellent administrative and technical support during bookproduction.

Kongens Lyngby, Denmark Harilaos N. PsaraftisOctober 2018

Preface

Scope of the Book

International shipping is currently at a crossroads. The decision of the 72nd sessionof the Marine Environment Protection Committee (MEPC 72) of the InternationalMaritime Organization (IMO) in April 2018 to achieve by 2050 a reduction ofat least 50% in maritime greenhouse gas (GHG) emissions vis-à-vis 2008 levelsepitomizes the last among a series of recent developments as regards sustainableshipping. It also sets the scene on what may happen in the future. Even thoughmany experts and industry circles believe that the MEPC 72 decision is in line withthe COP21 climate change agreement in Paris in 2015, others disagree, either onthe ground that the target is not ambitious enough or on the ground that no clearpathway to reach the target is currently visible.

This debate actually goes even further and transcends maritime transportation.The COP21 climate change agreement itself was hailed by many as a mostsignificant achievement, but others were not equally enthusiastic. The decisionof American President Trump to steer the United States away from COP21 hascaused disappointment or even consternation to the broad spectrum of nationsthat endorsed the Paris Agreement and has injected a new dose of uncertainty asto what may happen to climate change. Irrespective of the US path, the COP21Agreement upheld the noninclusion of international shipping (as well as aviation)within its mandate, something that has received mixed reviews by the internationalcommunity. The rationale for the noninclusion has been that action in these twosectors is within the mandate of the IMO for international shipping and of theInternational Civil Aviation Organization (ICAO) for aviation. Some industry circlesthink this is correct; however, environmental groups perceive this as a sign ofinability or unwillingness to act and are not happy about it.

Before COP21, the most sweeping piece of regulation pertaining to maritimeGHG emissions reduction was the adoption of the so-called Energy EfficiencyDesign Index (EEDI) by the IMO. This was agreed upon at MEPC 62 in July 2011.This was a no-consensus decision, as adoption was put to a vote in which a group

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of developing countries (such as China, India, Brazil, Saudi Arabia, South Africaand others) were firmly against the agreement. During the same session, the ShipEnergy Efficiency Management Plan (SEEMP) was also adopted.

2011 was also the year the European Union (EU) adopted the new TransportWhite Paper, which targets drastic reductions in GHG emissions from all modesof transport in the EU by 2050. An aggregate 60% reduction vis-à-vis 1990 levelsis stipulated. The target for maritime transportation GHG emission reductions is40% and if possible 50%. Such targets are highly ambitious because the stipulatedreductions are nontrivial. However, and even though a detailed implementation planhas also been proposed in the White Paper, at least for maritime transportation, it isnot clear how or if the above reduction targets can be realized.

There have also been some setbacks. For instance, the discussion on a possibleadoption of market-based measures (MBMs) for GHGs, initiated in 2010 at theIMO and entailing a comprehensive review of some 11 MBM proposals, wasfinally suspended in 2013. Relevant discussion was rechanneled toward a systemfor monitoring, reporting and verification (MRV) of CO2 emissions. Progress afterCOP21 was equally mixed. At the IMO, a roadmap was agreed in October 2016. Theroadmap foresaw the adoption of an Initial Strategy in 2018 to meet the targets ofCOP21, which entered into force in November 2016. The strategy will be validatedby actual emission figures gathered through the IMO’s fuel data collection system(DCS) as of 2019. This would then lead to a final agreement on targets and measures,including an implementation plan, by 2023. The April 2018 IMO decision was animportant link in the chain of events that will lead to 2023.

On the more controversial side, perhaps the most significant development hasbeen the February 2017 vote of the European Parliament (EP) to include shippinginto the EU Emissions Trading System (ETS) as of 2023, in case no globalagreement is reached by 2021, and the subsequent (November 2017) alignmentof the EU process with that of the IMO. The EP vote had raised extensive voicesof protest from industry circles such as ECSA (European Community ShipownersAssociations), ICS (International Chamber of Shipping) and many national shipowner associations. The shipping industry is concerned that an EU ETS may createsignificant distortions and obstacles for efficient trade, may not be compatible withthe IMO roadmap and in fact may not be a good instrument for reducing GHGemissions.

This book is an attempt to shed some light on these and other related develop-ments. To do so, it tries to answer the following questions: where does shippingcurrently stand as regards sustainability, and what are the prospects for the future?At first glance, these questions may look easy to pose. However, we shall see thatthey are not so easy to address.

To define “sustainable shipping”, we reproduce Fig. 1 of Chap. 1 of this book.One can see from Fig. 1 that a great number of factors are at play as regards

sustainable shipping. In addition, and aside from the considerations of Fig. 1, itshould also be realized that sustainability in general, at least as reflected in theUnited Nations Sustainable Development Goals (UN SDGs), includes additional

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Fig. 1 Defining sustainable maritime transport. Source: UNCTAD. (Reproduced from Chap. 1 ofthe book)

issues such as poverty, hunger, gender equality, education and several others.2 Sowe need to clarify that for the specific object of study of this book (maritimetransportation), the distinct perspective of the book is the interaction between theenvironmental and the economic dimensions. This means that the central issue ofthis book is how one can achieve a balance between environmental and economicobjectives. Achieving such a balance is important as it would make no sense for aship, a shipping operation or a maritime supply chain system to be performing wellenvironmentally but be non-viable from an economic perspective. Achieving “win-win” solutions is therefore an indispensable prerequisite for sustainable shipping.

Social criteria such as safety, security, employment, labor conditions, health andothers are also important in their own right. But aside from the general sustainabilitydiscussion of Chap. 1, their in-depth consideration is outside the main scope of the

2For a list of the UN SDGs, see https://www.un.org/sustainabledevelopment/sustainable-development-goals/

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book. We note however that safety is addressed in Chap. 3 in the context of theinteraction between EEDI and minimum safe power and in Chap. 5 in the contextof IMO’s Formal Safety Assessment (FSA) as applied to oil pollution. Health andsafety issues are also addressed in Chap. 6 in the context of ship recycling.

To achieve sustainable shipping, a spectrum of technical, logistics-based andmarket-based measures are being contemplated. However, which are the bestmeasures to choose is far from obvious. All may have important side effects asregards the economics and logistics of the maritime supply chain, including portsand hinterland connections. The objective to attain an acceptable environmentalperformance while, at the same time, respecting traditional economic performancecriteria so that shipping remains viable, is and is likely to be a central goal for bothindustry and policy-makers in the years ahead.

This book takes what we call “a cross-disciplinary view” at the various dimen-sions of the maritime transportation sustainability problem and, among other things,reviews models that can be used to evaluate decisions, policy alternatives and trade-offs. “Cross-disciplinary” means that a variety of angles are used to examine thebook topics, and these mainly include the technological angle, the economics angle,the logistics angle and the environmental angle. Even though GHG emissions are themain element of the environmental angle, other environmental topics treated inthe book are sulfur (SOx) emissions, oil pollution, ballast water management andship recycling. The book also includes ports as a subject worth being looked at, asthe role of ports in a green supply chain is very important.

As it is clear that this book makes no claim of being encyclopedic, some subjectsare not covered. Among the most important of these is the use of nuclear powerfor commercial shipping. Nuclear marine propulsion is currently confined to navalvessels and ice-breakers, and there is nothing a priori obvious that would precludeits consideration in commercial shipping. In fact a distinct advantage of nuclearpropulsion is the complete elimination of GHG and other operational emissions.However, issues such as safety, disposal of radioactive waste and economic viabilityare also important. Proponents of the nuclear option argue that such issues have beenresolved.

Even though the exclusion of this topic from the book does not imply a judgmentagainst nuclear propulsion, it is noted that the nuclear option is not included(at least as of yet) as one of the candidate measures postulated by the IMO intheir April 2018 decision. To be more precise, the nuclear option is not explicitlyexcluded by the IMO as a potential measure; however, this option is not visiblein any of the current discussions on alternative (low-carbon or zero-carbon) fuelsto reduce maritime GHG emissions. This is so in spite of the fact that a GHGemissions reduction goal of at least 50% would seem to encourage a stance not toexclude any solutions, however radical these solutions may seem. However, politicalconsiderations, especially after the Fukushima Accident in Japan, seem to be a factorthat currently weighs against the use of this option in commercial shipping. Whetheror not this exclusion continues as we move toward 2050 is not clear at this point in

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time. Readers interested in the topic are referred to the work of the Royal Academyof Engineering,3 of Lloyd’s Register4 and of Hirdaris et al. (2014), among others.

Another issue which this book does not attempt to address is how variousemission reduction options may impact climate change and more specifically themean temperature of the planet. This is true not only as regards GHGs but also asregards other emissions. For instance, the anticipated drastic (but largely unknown)reduction of maritime SOx emissions as soon as the global 0.50% sulfur cap kicksin as of January 1, 2020, will reduce the “radiative cooling” effect caused bySOx emissions in the atmosphere. As such, it may increase global warming. Butwhat the increase will be is basically unknown (for a discussion of the relevantissues, see Eyring et al. (2010) and more recently Gratsos (2018), among others).In addition, producing vast quantities of low-sulfur fuels would certainly requiresome energy, which, if not from renewable or nuclear sources, would also increaseglobal CO2. Again, the impact of this development on climate change is by andlarge unknown. Realizing that these issues are very important, this book makes noattempt to estimate their impact.

The above disclaimers notwithstanding, it is hoped that the material assembled inthis book is of interest and that it will help clarify some of the important issues thatare at stake as regards sustainable shipping, as we move toward 2050. Assuming thisis the case, the book may eventually contribute toward the identification of solutionsthat are feasible and viable, both for private maritime enterprises and for society asa whole.

Book Organization

The rest of the book is organized as follows:Chapter 1 by Benamara, Hoffmann and Youssef sets the stage for the rest of the

book, by identifying the linkages between shipping and sustainable developmentand highlighting what are the stakes in sustainable shipping, who are the stakehold-ers, what are the trade-offs, what are the policy issues, what may be the obstacles andenablers of sustainable shipping and the role of international institutions includingthe IMO and UNCTAD (the UN Conference on Trade and Development).

Chapter 2 by de Kat and Mouawad looks at the topic of technological solutionsfor sustainable shipping. These include air lubrication, wind-assisted propulsionand solar power, waste heat recovery systems, ballast water management systems,more efficient (energy-saving) engines, more efficient ship hulls and designs, moreefficient propellers, hybrid systems and others, both for the main engine and theauxiliary engines.

3https://www.raeng.org.uk/news/news-releases/2013/July/a-sea-of-options-for-future-ship-propulsion4https://www.lr.org/en/nuclear-power/

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Chapter 3 by Polakis, de Kat and Zachariadis looks at the only regulatory mea-sure thus far in place to reduce GHG maritime emissions, EEDI. Chapter 3 goes overthe rationale for EEDI and the factors that are important and also goes over relatedconcepts, such as the SEEMP plan and the Energy Efficiency Operational Indicator(EEOI) and the Existing Vessel Design Index (EVDI). Possible weaknesses of EEDIand how to improve the EEDI are also presented.

Chapter 4 by Fjørtoft and Berge is complementary to Chap. 2 and looks intoICT (information and communication technologies). These do not lead to directenvironmental benefits, but their smart use can definitely do so, by increasing theefficiency of the maritime supply chain, improving safety, by improving the loadfactor, etc. This chapter reviews relevant ICT systems in shipping and considerstheir impact on improving environmental performance.

Chapter 5 by Ventikos, Louzis and Sotiralis highlights the most significantattributes of oil pollution in the context of the sustainable shipping. The chapterpresents the current legislative framework for the environmental protection againstoil pollution and depicts the utility of the implementation of risk control options(RCOs). Furthermore, the measures of containment of the oil pollution cost areillustrated along with the incorporation of the environmental risk evaluation criteriain IMO’s Formal Safety Assessment (FSA). Finally, the chapter discusses feasibleways of achieving a sustainable future without undermining the environmentalintegrity.

Chapter 6 by Mikelis addresses the recycling of ships, otherwise known asdismantling, ship breaking, scrapping and demolition. The chapter outlines theefforts to implement existing international legislation to ship recycling and thedevelopment of the Hong Kong Convention and provides a critical analysis of thedevelopment of regional legislation by the EU. It also discusses the combination ofvoluntary and legislative mechanisms that will secure the global implementation ofminimum standards for safe and environmentally sound ship recycling.

Chapter 7 by Zis and Psaraftis presents an overview of the main issues of sulfuremissions and the legislative framework that seeks to reduce the sulfur footprint ofthe maritime sector. It also analyses potential modal shifts toward less efficient land-based modes which may happen as a result of sulfur regulations and investigatesthe related potential economic damage to ship operators. To that effect, the chapterpresents a methodological framework that can be used to estimate such modal shiftsas well as to measure the efficacy of possible measures to reverse such shifts.

Chapter 8 by Wang, Norstad, Fagerholt and Christiansen examines, from a trampship operator’s point of view, how potential CO2 emission reduction measuresimpact operational decisions, and their economic and environmental consequences.Two MBMs are discussed, the bunker levy scheme and the emission trading scheme,and it is shown that both can be incorporated in a similar way into a typical trampship routing and scheduling model.

Chapter 9 by Hellsten, Pisinger, Sacramento and Vilhelmsen looks into greenliner shipping network design problems, these being defined as problems in greenlogistics related to the design of maritime services in liner shipping with focus on

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reducing the environmental impact. The chapter discusses how to more efficientlyplan the vessel services with the use of mathematical optimization models.

Chapter 10 by Psaraftis focuses on speed optimization. This involves theselection of an appropriate speed by the vessel so as to optimize a certain objective.As ship speed is not fixed, depressed shipping markets and/or high fuel prices induceslow steaming which is being practiced in many sectors of the shipping industry.The chapter presents some basics, discusses the main trade-offs and also examinescombined speed and route optimization problems. Some examples are presented soas to highlight the main issues that are at play, and the regulatory dimension of speedreduction via speed limits is also discussed.

Chapter 11 by Psaraftis and Woodall focuses on the concept of MBMs to reduceGHG emissions from ships and reviews several distinct MBM proposals that wereunder consideration by the IMO. The chapter then moves on to discuss the conceptof MRV of CO2 emissions and the distinct mechanisms set up the European Union(EU) and the IMO for MRV. The two issues are connected as a next possible stepafter MRV can be an MBM.

Chapter 12 by Zis examines the issues associated with a green port operation.These include technologies such as cold ironing, market-based practices such as dif-ferentiated fairway dues, speed reduction, noise and dust abatement and others. Thelegislative framework in various countries is explained and various environmentalscorecards are discussed. The chapter emphasizes on the implementation of speedreduction programmes near the port, use of cold ironing at berth and the effects offuel quality regulation, considering the perspectives of the port authority and theship operator.

Last but not least, Chap. 13 by Psaraftis and Zachariadis looks at the way ahead,with a focus on the April 2018 IMO Initial Strategy on how to reduce maritimeGHG emissions. The chapter includes a section on alternative fuels, these figuringcentrally among candidate measures included in the IMO Initial Strategy.

All chapters are to a great extent self-contained, with cross-referencing amongthem wherever appropriate.

Intended Audience

The intended audience of the book includes:

• Faculty, students and researchers active in maritime transportation and interestedin the environmental dimension of shipping

• Carriers, shippers, infrastructure managers and other logistics providers who aimat improving their environmental performance while staying in business

• Technology designers and providers• Policy-makers at the national and international level, including the IMO and the

EU• Other stakeholders, environmental or other

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• Industry associations such as ICS,5 IAPH,6 Intertanko,7 Intercargo,8 BIMCO,9

IACS,10 WSC,11 ECSA,12 ESPO,13 ECS,14 etc.• Academic associations such as IAME,15 SNAME,16 INFORMS,17 etc.

Kongens Lyngby, Denmark Harilaos N. Psaraftis

References

Eyring, V., Isaksen, I. S. A., Berntsen, T., Collins, W. J., Corbett, J. J., Endresen,Ø., et al. (2010). Transport impacts on atmosphere and climate: Shipping,Atmospheric Environment, 44, 4735–4771.

Gratsos, G. (2018). Global warming, mankind, the environment, transport, shippingand clear thinking. Accessible at https://www.academia.edu/.

Hirdaris, S. E., Cheng, Y. F., Shallcross, P., Bonafoux, J., Carlson, D., Prince, B.,et al. (2014). Considerations on the potential use of nuclear Small ModularReactor (SMR) technology for merchant marine propulsion. Ocean Engineering,79, 101–130.

5International Chamber of Shipping6International Association of Ports and Harbours7International Association of Independent Tanker Owners8International Association of Dry Cargo Shipowners9Baltic International Maritime Council10International Association of Classification Societies11World Shipping Council12European Community Shipowners Associations13European Sea Ports Organisation14European Shippers Council15International Association of Maritime Economists16Society of Naval Architects and Marine Engineers17The Institute for Operations Research and the Management Sciences

Contents

1 Maritime Transport: The Sustainability Imperative . . . . . . . . . . . . . . . . . . . 1Hassiba Benamara, Jan Hoffmann, and Frida Youssef

2 Green Ship Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Jan Otto de Kat and Jad Mouawad

3 The Energy Efficiency Design Index (EEDI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Maria Polakis, Panos Zachariadis, and Jan Otto de Kat

4 ICT for Sustainable Shipping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137Kay Fjørtoft and Svein Peder Berge

5 Oil Pollution: Sustainable Ships and Shipping . . . . . . . . . . . . . . . . . . . . . . . . . . 167Nikolaos P. Ventikos, Konstantinos Louzis, and Panagiotis Sotiralis

6 Ship Recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203Nikos Mikelis

7 Reducing Sulfur Emissions: Logistical and EnvironmentalConsiderations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249Thalis P. V. Zis and Harilaos N. Psaraftis

8 Green Tramp Shipping Routing and Scheduling: Effects ofMarket-Based Measures on CO2 Reduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285Xin Wang, Inge Norstad, Kjetil Fagerholt, and Marielle Christiansen

9 Green Liner Shipping Network Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307Erik Hellsten, David Pisinger, David Sacramento,and Charlotte Vilhelmsen

10 Speed Optimization for Sustainable Shipping . . . . . . . . . . . . . . . . . . . . . . . . . . . 339Harilaos N. Psaraftis

11 Reducing GHGs: The MBM and MRV Agendas . . . . . . . . . . . . . . . . . . . . . . . 375Harilaos N. Psaraftis and Poul Woodall

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12 Green Ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407Thalis P. V. Zis

13 The Way Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433Harilaos N. Psaraftis and Panos Zachariadis

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465

About the Editor

Harilaos N. Psaraftis is a professor at the Technical University of Denmark(DTU), Department of Management Engineering, Management Science Division.He has a diploma from the National Technical University of Athens (NTUA, 1974),two MSc degrees (1977) and a PhD (1979) from the Massachusetts Institute ofTechnology (MIT). He was an assistant and associate professor at MIT from 1979to 1989 (Department of Ocean Engineering) and professor and director of theLaboratory for Maritime Transport (LMT) at NTUA from 1989 to 2013 (Schoolof Naval Architecture and Marine Engineering). Harilaos’ main interests are intransport optimization and maritime and intermodal transport, with a recent focuson green transport, and maritime transport policy and regulations. He has beena principal investigator (PI) or co-PI in some 50 research projects on varioustransportation subjects. Among the 24 EU projects he was involved in, he hascoordinated three multi-partner EU consortia, including project SUPERGREENon European Green Corridors (2010–2013). His published work includes 4 books,over 150 refereed articles in journals and conferences, over 130 other publications(including 17 book chapters) and over 180 lectures in various other conferences.His previous book was Green Transportation Logistics: the Quest for Win-WinSolutions (Springer, 2016). He has been on the editorial board of several journals,including Transportation Science (1987–2018), WMU Journal of Maritime Affairs(since 2002), Maritime Economics and Logistics (since 2016) and Networks (since2016). Since 2006, Harilaos has participated in many meetings of the InternationalMaritime Organization (IMO), both at the Maritime Safety Committee (MSC) andthe Marine Environment Protection Committee (MEPC). He has served as thechairman of various MEPC correspondence and working groups. Harilaos and hisgroup have received various academic and industry awards, including two fromLloyd’s List. In addition to his academic duties, Harilaos has served as the CEOof the Piraeus Port Authority (OLP) for close to 5.5 years (1996–2002). His tenurehas been linked with developments that include (a) Piraeus making the list of the

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top 50 world container ports (No. 41 in 1998) with traffic more than doubling from575.000 TEU (1996) to 1.160.000 TEU (2001) and (b) the port being transformedfrom a public law undertaking into a corporation (1999). Harilaos is the third longestserving CEO since OLP’s inception in 1930, having served under four Ministers ofShipping in Greece.

About the Authors

Hassiba Benamara is a maritime transport and trade specialist with a postgraduatedegree in economics from the University of Ottawa (Canada) and over 20 yearsprofessional experience in transport and trade logistics. She joined UNCTAD in2005 and has been working on various transport issues. She is a co-author of theUNCTAD annual Review of Maritime Transport focusing particularly on seabornetrade and port issues. Other areas of work include climate change, energy marketdevelopments, transport costs, supply-chain security and sustainable transport.Before joining UNCTAD, she has been working for the Canadian Ministry ofTransportation in the international shipping and trade divisions, respectively. Areasof work included marine insurance and liability, arrest of ships, maritime liens andmortgages, maritime security, antitrust immunity and liner conferences, cabotageas well as transport and logistic services trade liberalization. She represented theMinistry at relevant meetings of the International Maritime Organization and theWorld Trade Organization.

Svein Peder Berge is a senior business developer at SINTEF Ocean AS, thatchanged name from MARINTEK in 2017, and holds a PhD in engineeringcybernetics from the Norwegian University of Science and Technology (NTNU). Hehas 25 years of experience from both maritime industry and research companies. Hehas been working with project management, research and product development forboth energy and maritime industries. Areas of expertise are software development,mathematical modeling, simulation technology and design and development ofenergy and maritime applications.

Marielle Christiansen works as a professor of operations research at the Nor-wegian University of Science and Technology. In addition, she is the head of theDepartment of Industrial Economics and Technology Management. Her primaryresearch interests concern development and implementation of optimization modelsand methods for industry-related planning problems as regards transportation, logis-tics and production. She is particularly interested in applications where maritimetransportation and supply chain challenges are considered and has been involved in

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many shipping industry-sponsored projects. Her research has resulted in numerouspapers in journals like Computers & Operations Research, European Journalof Operational Research, Journal of the Operational Research Society, NavalResearch Logistics, OMEGA, Networks, Transportation Research Part C as wellas Transportation Science. Furthermore, she has contributed with several surveyswithin maritime transport optimization in general and within combined inventorymanagement and routing and fleet composition and routing in particular.

Jan Otto de Kat has worked as director in ABS since 2013 in Copenhagen.He is responsible for global coordination of activities related to containerships;his previous areas of responsibility included energy efficiency and operationaland environmental performance. He has worked as a senior director and head ofinnovation in AP Moller-Maersk between 2007 and 2012. From 1989 through 2006,he worked at the Maritime Research Institute Netherlands (MARIN), Wageningen,the last 7 years as director of research and development. He received his MSc andPhD in naval architecture and offshore engineering from the University of Californiaat Berkeley and his BEng from the University of New South Wales, Sydney.

Kjetil Fagerholt is a professor in operations research at the Norwegian Universityof Science and Technology, Department of Industrial Economics and TechnologyManagement. He also holds positions as an adjunct professor in the Department ofMarine Technology at the same university and as a scientific adviser at SINTEFOcean. His main research interest is on developing and applying operationsresearch models and methods on planning problems in maritime transportation.He has published around 100 papers in international peer-reviewed journals, suchas Transportation Science; European Journal of Operational Research; OMEGA;Transportation Research Part C, D and E; INFORMS Journal on Computing;Computers & Operations Research; and Maritime Policy & Management. He isssociate editor for Transportation Science, Flexible Services and Manufacturingand Asia-Pacific Journal of Operational Research and deputy editor for Journalof Marine Science and Technology.

Kay E. Fjørtoft is a senior research scientist at SINTEF Ocean AS. He holds anMSc and has more than 23 years of experiences from maritime research. Kay hasbeen involved in several research projects with thematic covering maritime logisticsand operation, software architecture and development, integrated operations andplanning, maritime safety operations, Arctic maritime operations, freight transport,port community systems and communication (telecom) as examples. He also helda position for ESA as an ambassador for Norway within the Business Applicationsprogramme, where the mission is to assist and promote space technology for themaritime sector and for the Norwegian industry.

Erik Hellsten is a PhD student at the Technical University of Denmark. His workrevolves around applying mathematical optimization to improve operations in thefeeder line industry. He is currently working on vessel scheduling and network

About the Authors xxiii

design. Erik received his BSc in engineering physics and MSc in engineeringmathematics at Chalmers University of Technology.

Jan Hoffmann joined UNCTAD in 2003 and is currently chief of the organiza-tion’s Trade Logistics Branch, responsible for research and technical assistanceprogrammes in international transport and trade facilitation. Jan is co-authorand coordinator of the Review of Maritime Transport, initiated the UNCTADMaritime Country Profiles and created the annual Liner Shipping ConnectivityIndex. Previously, he spent 6 years with the UN Economic Commission for LatinAmerica and the Caribbean in Santiago de Chile and 2 years with the IMO inLondon and Santiago. Prior to this, he held part-time positions as assistant professor,import-export agent, consultant and seafarer on an Antigua and Barbuda flaggedtweendecker. Jan has studied in Germany, the United Kingdom and Spain and holdsa PhD in economics from the University of Hamburg. He is member of the boards ofvarious journals and associations and past president of the International Associationof Maritime Economists (IAME).

Konstantinos Louzis has a master’s in naval architecture and marine engineeringfrom the School of Naval Architecture and Marine Engineering (NA&ME) of theNational Technical University of Athens (NTUA), Greece. He is currently a PhDcandidate at the Laboratory for Maritime Transport of the same school conductingresearch in the fields of life cycle risk assessment and management in the maritimedomain. His expertise is in the following scientific areas: marine safety, risk analy-sis/assessment and risk engineering, maritime accident investigation and modeling,human factors and human reliability, resilience engineering and environmental riskaspects of shipwrecks. Konstantinos Louzis has published parts of his work ininternational peer-reviewed journals and has participated as a speaker at variousinternational scientific conferences with topics relevant to his expertise.

Nikos Mikelis graduated in naval architecture from the University of Newcastleand obtained master’s and doctorate degrees from London University. He hasworked in ship classification and for a shipping company as a superintendent,technical manager and then director. In 2006, he joined the International MaritimeOrganization, from where he retired as head of Marine Pollution Prevention andShip Recycling Section. Currently he is a consultant; a non-executive director ofGMS, the world’s largest buyer of ships for recycling; and a director of QACE, theentity that has been set for the quality assessment and certification of classificationsocieties recognized by the European Union. He has served in senior positions inshipping industry bodies as council member of INTERTANKO, chairman of the“INTERTANKO Safety, Technical & Environmental Committee” and member ofthe Safety Committee of the Union of Greek Shipowners. He has written over 50learned papers and numerous articles in the maritime press and is a freeman of thecity of London.

xxiv About the Authors

Jad Mouawad is a naval architect, graduated in 2005 from the Norwegian Univer-sity of Science and Technology (NTNU). He has since had several positions in themaritime industry, first at the Norwegian Maritime Administration (NMA), beforejoining DNV GL where he started and developed their class services for BallastWater Management. In 2013, Jad Mouawad founded Mouawad Consulting whichhas become a major engineering and consultancy firm specialized in Ballast WaterManagement, with offices in Norway, China, Korea and Lebanon. Jad Mouawadissued type approval certificates for more than 11 Ballast Water ManagementSystems (BWMS) and initiated the development of the first DNV GL rules forinstallation of BWMS onboard ships. He also contributes heavily to the developmentof the guidelines of the BWM Convention, developed at the International MaritimeOrganization (IMO) as an advisor to NMA, and represents Norway in the ISOTechnical Committee dealing with standards for BWM.

Inge Norstad is a senior business consultant at Tieto Norway AS in Trondheim,Norway. He works with optimization and decision support in the midstream part ofthe supply chain in the oil and gas industry. He has a PhD in operations researchfrom the Norwegian University of Science and Technology. Prior to working atTieto, he has been a research scientist at SINTEF Ocean in Trondheim, Norway,for 12 years. His research interests are in the field of optimization of maritimetransportation and maritime supply chains.

David Pisinger is a professor in operations research at DTU Management Engi-neering and adjoint professor at DIKU, University of Copenhagen. His researchinterests include maritime optimization, vehicle routing, railway optimization,energy models and loading problems. He has been leading several research projectsin maritime logistics and railway optimization. David received the Hedorfs FondsPrize for Transport Research 2013 and received the Teaching Prize 2016 at DTUManagement. He has supervised more than 20 PhD students: two of these havereceived the VeRoLog Dissertation Prize and one has received the TSL dissertationprize.

Maria Polakis is a technical professional with over 20 years of experience in themaritime industry. She graduated from the National Technical University of Athens(NTUA) with an MSc in naval architecture and marine engineering. She joined theAmerican Bureau of Shipping (ABS) Operational and Environmental Performancegroup in 2013 where she acquired extensive experience through research projectsfocused on environmental technologies and product development. Current roleincludes cooperation with IACS Correspondence Group on EEDI on regulatorydevelopments beyond phase 2 and projects with marine and offshore clients toevaluate the energy efficiency and operational performance of new and existingmarine assets in view of current and future regulations. Key competencies includefuel efficiency of ships in service, reduction of ship emissions and hydrodynamicperformance of ships. She is a senior trainer on EEDI verification and environmentalregulatory requirements for ABS engineering offices globally. Her previous roles

About the Authors xxv

involved naval architecture consultancy and technical ship management in the Greekshipping industry.

David Sacramento received his BSc in mathematics at the University of LaLaguna (ULL) and his MSc in mathematical modeling and computation with focusarea in operations research at the Technical University of Denmark (DTU), wherehe is currently a PhD student. His research is focused on shipping network designand vessel scheduling under a feeder line structure.

Panagiotis Sotiralis holds a university degree in naval architecture and marineengineering from the School of Naval Architecture and Marine Engineering(NA&ME) of the National Technical University of Athens (NTUA), Greece. Hisdiploma thesis, titled “Probabilistic Study Spill Oil Tankers from: Quantities andCosts”, was awarded by the Greek section of SNAME for the best diploma thesisof the year 2011. He has a master’s degree in techno-economic systems (MBA)from National Technical University of Athens (School of Electrical and ComputerEngineering) – University of Piraeus (Department of Industrial Management andTechnology). He is currently a PhD candidate at the Laboratory for Maritime Trans-port of the same school in the scientific areas of dynamic risk analysis/assessmentand maritime safety. Panagiotis Sotiralis’ expertise is in maritime safety, maritimeaccident investigation and modeling, human factors, resilience engineering, statis-tical modeling and optimization of the operational and environmental performanceof different ship types.

Nikolaos P. Ventikos is an associate professor in the Laboratory for MaritimeTransport at the School of Naval Architecture and Marine Engineering of theNational Technical University of Athens, Greece. Dr. Ventikos’ expertise is inmarine safety, risk engineering, (oil) marine pollution, human reliability (includ-ing human-centered design), marine casualty investigation, resilience engineering,systems engineering, offshore and environmental risk, maritime sustainability,blue growth and statistical and probabilistic modeling. He has published andpresented his work in many highly esteemed scientific journals such as OceanEngineering, Reliability Engineering & System Safety, Marine Pollution Bulletin,Journal of Risk Research, Journal of Risk and Reliability, etc. and in more than 100scientific conferences. Dr. Ventikos was awarded the GP Livanos Grand Prize onEnvironmental Issues sponsored by the Hellenic Chamber of Shipping (2000).

Charlotte Vilhelmsen is an assistant professor in operations research at DTUManagement Engineering. Her research interests include maritime optimization,health-care planning and optimization under uncertainty. Charlotte received DTUManagement’s Teacher of the Year Award in 2018.

Xin Wang is a business consultant at Tieto Corporation in Oslo, Norway. Hiswork focuses on optimization and decision support in the oil and gas industry.During 2015–2018, he was a postdoctoral fellow in the Department of Industrial

xxvi About the Authors

Economics and Technology Management at Norwegian University of Science andTechnology. His research interests lie in the area of operations research, particularlydecision-making under uncertainty and optimization in transportation and logistics.He completed his undergraduate studies at Shanghai Jiao Tong University and hisPhD at Lancaster University. During his PhD study, he was also visiting researcherat Norwegian School of Economics in Bergen, Norway, and CIRRELT in Montreal,Canada.

Poul Woodall is director of environment and sustainability at DFDS A/S. He hasover 40 years of experience within the maritime and transport industry. His careerincludes 17 years’ overseas experience with postings in Asia, the Middle East andEurope. Since 2013 his focus has been maritime environmental issues. Poul Woodallhas a degree from Copenhagen Business School supplemented with managementeducation at Insead and Stanford Universities. Poul is also involved with the TridentAlliance, Green Ship of the Future, Interferry and various European SustainableShipping Forum (ESSF) working groups in Brussels. In July 2018, Poul joined thenew Connect Europe Facility (CEF) Transport Advisory Group of the Innovationand Networks Executive Agency (INEA).

Frida Youssef joined UNCTAD in 1997 and is currently the chief of the TransportSection of the Trade Logistics Branch at UNCTAD. She has more than 20 years ofprofessional experience in broad range of issues including transport, commoditysupply chain, energy, structured and project finance. She is a co-author of theUNCTAD’s annual Review of Maritime Transport focusing particularly on freightrates, maritime transport costs and PPPs in ports. Other areas of work includesustainable freight transport, transport and transit corridors and finance. Ms. Youssefis also member of the Global network of Export-Import Bank (G-NEXID) steeringcommittee. She holds an MBA from Boston University and an MA in InternationalAffairs from the Institut des hautes études internationales (France).

Panos Zachariadis, mechanical engineer (BSc) and naval architect (MSE) fromthe University of Michigan, has a 35-year experience in shipping, having servedfor years as marine superintendent in New York, after periods of shipbuildingsupervision in Japan and sea service in bulk carriers and oil tankers. He is a technicaldirector of Atlantic Bulk Carriers since 1997 and a member of the Greek Delegationto IMO since 2004, having contributed to the development of several well-knownregulations (e.g. GBS, PSPC, FSA) and the prevention of others (e.g. doublehull bulk carriers). In cooperation with major Korean shipyards, he has appliednumerous energy-saving ideas, some of which have become industry standards. Heis a member of technical committees of several classification societies, UGS andHellenic Chamber of Shipping, BIMCO Marine Committee and BoD HELMEPAand MARTECMA. He has been honored with the 2011 Efkranti Award for hiscontribution to Greek shipping, the Hellenic Shortsea Shipowners Association 2017

About the Authors xxvii

Maritime Personality Award and the 2017 Lloyd’s List “Achievement in Safety orEnvironmental Protection” Award.

Thalis P. V. Zis is a postdoctoral research associate at the Technical University ofDenmark (DTU), Department of Management Engineering, Management ScienceDivision. He holds a diploma in mechanical engineering from the National Tech-nical University of Athens (NTUA), an MSc in transport from Imperial CollegeLondon and a PhD in port operations from Imperial College London. He hasconducted significant research on improving the environmental performance ofport operations and also on the issues of sulfur emissions from shipping, focusingon economic and logistical issues arising from the stricter sulfur legislation. Hecurrently focuses on applying game theory to improve compliance rates with thesulfur regulation among ship operators. He serves as an international member of theStanding Committee on Marine Environment and the Standing Committee on Portsand Channels of the Transportation Research Board (USA).

Abbreviations

4C Commitment, Competence, Continuous Learning, CollaborationAER Annual Efficiency RatioAGV Automated Guided VehiclesAIS Automatic Identification SystemsALARP As Low As Reasonably PracticableAMP Alternative Marine PowerAMVER Automated Mutual Assistance Vessel Rescue SystemBAF Bunker Adjustment FactorBAU Business As UsualBDN Bunker Delivery NoteBIMCO Baltic and International Maritime CouncilBMEP Brake Mean Effective PressureBRI Belt and Road InitiativeBWM Ballast Water ManagementCAF Cost of Averting a FatalityCATS Cost of Averting a Tonne of Spilt oilCBDR-RC Common But Differentiated Responsibilities and Respective

CapabilitiesCFD Computational Fluid DynamicsCH4 MethaneCO2 Carbon DioxideCOP Conference of the Parties [of the United Nations Framework

Convention on Climate Change]COW Crude Oil WashingCPP Controllable Pitch PropellerCSI Clean Shipping IndexCSR Corporate Social ResponsibilityCV Contingent ValuationDCS Data Collection SystemDNC Digital Nautical ChartsDNV Det Norske Veritas

xxix

xxx Abbreviations

DoC Document of ComplianceDSC Digital Selective CallingEC European CommissionECA Emission Control AreaECDIS Electronic Chart Display and Information SystemECSA European Community Shipowners AssociationsEESH Energy Efficiency Per Service HourEGR Exhaust Gas RecirculationEIS Efficiency Incentive SchemeEIV Estimated Index ValueEMSA European Maritime Safety AgencyENC Electronic Navigational ChartsEPA Environmental Protection Agency (US)ESD Energy-Saving DeviceESPO European Seaport OrganizationESSF European Sustainable Shipping ForumETS Emission Trading SystemEU European UnionEU SRR European Union Ship Recycling RegulationEVDI Existing Vessel Design IndexFAL The Convention on Facilitation of International Maritime TrafficFORS Fuel Oil Reduction StrategyFPP Fixed Pitch PropellerFSA Formal Safety AssessmentGHG Green House GasGMDSS Global Maritime Distress and Safety SystemGWP Global Warming PotentialHEA Habitat Equivalent AnalysisHKC Hong Kong International Convention for the Safe and

Environmentally Sound Recycling of Ships, 2009IACS International Association of Classification SocietiesIAMS Integrated Alarm and Monitoring SystemsIAPH International Association of Ports and HarboursIAS Integrated Automation SystemICAF Implied Cost of Averting a FatalityICS International Chamber of ShippingICT Information and Communication TechnologiesIEE International Energy EfficiencyIMO International Maritime OrganizationINTERTANKO International Association of Dependent Tanker OwnersIOT Internet of ThingsIPCC Intergovernmental Panel on Climate ChangeIPL Integrated Planning and LogisticsIPTA International Parcel Tanker AssociationIRRC International Ready for Recycling Certificate

Abbreviations xxxi

ISM International Ship ManagementISO International Organization for StandardizationISPI Individual Ship Performance IndicatorIT Information TechnologyITCP Integrated Technical Cooperation ProgrammeITOPF International Tanker Owners Pollution Federation LimitedITS Intelligent Transport SystemsITTC International Towing Tank ConferenceIUCN International Union for the Conservation of NatureLBSI Lean Burn Spark IgnitionLDC Least Developed CountryLIS Leveraged Incentive SchemeLNG Liquefied Natural GasLPDF Low Pressure Dual FuelLPG Liquefied Petroleum GasLSNDP Liner Shipping Network Design ProblemLSP Liner Service PlanningMAC Marginal Abatement CostMARPOL International Convention for the Prevention of Pollution from

ShipsMBM Market-Based MeasureMCFP Multi-Commodity Flow ProblemMCR Maximum Continuous RatingMDO Marine Diesel OilMEPC IMO Marine Environment Protection CommitteeMIMS Maritime Information Management SystemMPP Minimum Propulsion PowerMRV Monitoring, Reporting and VerificationMSW Maritime Single WindowMTO Man, Technology and OrganizationNGO Nongovernmental OrganizationNH3 AmmoniaNOAA National Oceanic and Atmospheric AdministrationNOx Nitrogen OxidesOBC Oxygen Blown ConverterOECD Organisation for Economic Co-operation and DevelopmentOILPOL International Convention for the Prevention of Pollution of the

Sea by OilOPA Oil Pollution ActOPRC International Convention on Oil Pollution Preparedness,

Response and Co-operationOPS Onshore Power SupplyOSIR Oil Spill Intelligence ReportOT Operational TechnologyP&I Protection & Indemnity

xxxii Abbreviations

PCS Port Community SystemPM Particulate MatterPOLA Port of Los AngelesPOLB Port of Long BeachPSC Port State ControlRCOs Risk Control OptionsRMG Rail Mounted GantryRPM Revolution Per MinuteRTG Rubber Tired GantryS-AIS Satellite-AISSCR Single Catalytic ReductionSDGs Sustainable Development GoalsSECA Sulfur Emission Control AreaSECT Ship Efficiency and Credit TradingSEEMP Ship Energy Efficiency Management PlanSFOC Specific Fuel Oil ConsumptionSIDS Small Island Developing StateSO Sulfur MonoxideSO2 Sulfur DioxideSO3 Sulfur TrioxideSOx Sulfur OxidesSOLAS International Convention for the Safety of Life at SeaSRFP Ship Recycling Facility PlanSRP Ship Recycling PlanSSS Short-Sea ShippingSSSCRP Simultaneous Ship Scheduling and Cargo Routing ProblemSW Single WindowTOS Terminal Operation SystemTSP Traveling Salesman ProblemTSW Trade Single WindowUNCTAD United Nations Conference on Trade and DevelopmentUNFCCC United Nations Framework Convention on Climate ChangeVES Vessel Efficiency SystemVHL Value of Human LifeVLCC Very Large Crude CarrierVNS Variable Neighborhood SearchVR Virtual RealityVRP Vehicle Routing ProblemVSRP Vessel Speed Reduction ProgrammeVTMIS Vessel Traffic Management and Information ServicesVTS Vessel Traffic ServicesWHO World Health OrganizationWSC World Shipping CouncilWTO World Trade Organization