Cost assessment of environmental regulation and options for marine operators

Recent marine environment regulatory actions have ignited strong debates and discussions among policy-makers, researchers and operators. This paper provides a methodological framework for the estimation of the cost impact of some of the environmental measurements, and specifically on the increase of operating expenses of seagoing vessels due to the sulfur limits determined by MARPOL Annex VI. A model based on stochastic linear programming is presented that aims to minimize the total cost of an operator, by determining the fleet-mix and the capacity offered under budgetary and fleet attributes constraints, and taking into account demand and growth pattern per period of analysis. The stochastic scenarios are based on the probability of the fleet operating in a Sulfur Emission Control Areas (SECAs). A liner and a tramp shipping applications are presented, and the results are discussed. The paper concludes with a summary of the achieved goals, of the limitations of this model, and the future development of this approach

The Cost of SOx Limits to Marine Operators; Results from Exploring Marine Fuel Prices

Marine operators are confronted with the new air emissions regulations that determine the limits of sulfur content in marine fuels. The low‐sulfur (LS) marine fuels have a higher price, and their fluctuation is almost similar to the fluctuation of high‐sulfur (HS) fuels. The price difference between HS and LS might also determine the decision of operators for alternative technical means, such as scrubbers, in order to comply with the new limits. This paper aims to provide a thorough statistical analysis of the currently available LS and HS marine fuels time series, as well as to present the analysis of the differential of the HS and LS fuel prices. The paper concludes with suggestions for further research

Selecting technologies towards compliance with MARPOL Annex VI: The perspective of operators

Abstract This paper aims to discuss the limitations of the financial assessment of technologies assisting compliance with the sulphur regulations of MARPOL Annex VI, which is commonly adhered to by operators, and to contribute a multi-criteria approach based on the analytic network process (ANP). Financial models like the representative one presented herein are widely used in the industry. The given example is analyzed in order to identify the merits and limitations of this approach. Thereafter, an analytical tool based on the ANP is presented. This could enhance understanding of the problem and support decisions. Furthermore, the tool could assist operators to select the necessary technical alternatives in a better way, and reveal the preferences and relationships among criteria, thus fostering improvement of the decision tools