• Energy Research

A fuel levy is one of the market-based measures (MBMs) currently under consideration at the International Maritime Organization. MBMs have been proposed to improve the energy efficiency of the shipping sector and reduce its emissions. This paper analyses the economic and environmental implications of two types of levy on shipping bunker fuels by means of an analytical model built on the cobweb theorem. A unit-tax per ton of fuel and an ad-valorem tax, enforced as a percentage of fuel prices, are examined. In both cases, a speed and fuel-consumption reduction equivalent to an improvement in the energy efficiency of the sector would be expected as a result of the regulation enforcement. The speed reduction in the unit-tax case depends on fuel prices and the tax amount, whereas in the ad-valorem case it relies upon the enforced tax percentage.Both schemes lead to industry profit decline, the extent of which depend on the structure of the levy and market conditions. Since there is concern that the costs resulting from the policy will be passed from shipping companies to their customers along the supply chain, the paper dwells on how the costs arising from the enforcement of the levy will be actually allocated between ship-owners and operators, and cargo-owners. In a market characterised by high freight rates and with no or limited excess capacity, a higher percentage of the total tax amount is transferred from ship-owners to shippers. In case of a recession the opposite happens.

The maritime sector is a key asset for the world economy, but its environmental impact represents a major concern. The sector is primarily supplied with Heavy Fuel Oil, which results in high pollutant emissions. The sector has set targets for deacrbonisation, and alternative fuels have been identified as a short-to medium-term option. The paper addresses the complexity related to the activities of the maritime industry, and discusses the possible contribution of alternative fuels. A sector segmentation is proposed to define the consumption of each sub-segment, so to compare it with the current alternative fuel availability at European level. The paper shows that costs and GHG savings are fundamental enablers for the uptake of alternative fuels, but other aspects are also crucial: technical maturity, safety regulation, expertise needed, etc. The demand for alternative fuels has to be supported by an existing, reliable infrastructure, and this is not yet the case for many solutions (i.e. electricity, hydrogen or methanol). Various options are already available for maritime sector, but the future mix of fuels used will depend on technology improvements, availability, costs and the real potential for GHG emissions reduction.

Abstract Only a few empirical studies have investigated principal-agent problems in transportation, notwithstanding the significant attention gained by agency theory in the last decade. The container shipping industry’s charter market exhibits a particular type of principal-agent problems deriving from information asymmetries between charterer and owner. We investigate agency theory in transportation science by analyzing the impact of split incentives and information asymmetries on carbon emissions. To construct a robust panel analysis, we collaborated with a leading maritime NGO to source cross-sector operational information for the period 2010–2019. We show that in the case of container shipping, chartering results in about 8% higher carbon emissions, benchmarked against owner-operated vessels, which can be explained as a consequence of principal-agent problems. We also discuss operational cost increases deriving from levying a carbon price in accordance with the Paris Agreement targets. We present guidance to respective carbon policies and point to incentives to overcome underinvestment in green technologies.

Abstract Ports are characterised by the geographical concentration of high–energy demand and supply activities, because of their proximity to power generation facilities and metropolitan regions, and their functions as central hubs in the transport of raw materials. In the last decades the need to better understand and monitor energy-related activities taking place near or within the port has become more apparent as a consequence of the growing relevance of energy trades, public environmental awareness and a bigger industry focus on energy efficiency. The uptake in the port sector of innovative technologies, such as onshore power supply, or alternative fuels, such as LNG, and the increasing development of renewable energy installations in port areas, also calls for more attention to energy matters within port management. So far, however, few port authorities have actively pursued energy management strategies. The necessity for port authorities to actively manage their energy flows stems from their efforts to plan, coordinate and facilitate the development of economic activities within the port, and as a consequence of the heavier weight that sustainability is given within the port management strategies. Through the analysis of the experiences of two European ports, Hamburg and Genoa, that have already attempted to coordinate and rationalise their energy needs, this paper will argue that for the ports of the future active energy management can offer substantial efficiency gains, can contribute to the development of new alternative revenue sources and in the end, improve the competitive position of the port.

Wind-assisted ship propulsion (WASP) technology seems to be a promising solution toward accelerating the shipping industry’s decarbonization efforts as it uses wind to replace part of the propulsive power generated from fossil fuels. This article discusses the status quo of the WASP technological growth within the maritime transport sector by means of a secondary data review analysis, presents the potential fuel-saving implications, and identifies key factors that shape the operational efficiency of the technology. The analysis reveals three key considerations. Firstly, despite the existing limited number of WASP installations, there is a promising trend of diffusion of the technology within the industry. Secondly, companies can achieve fuel savings, which vary depending on the technology installed. Thirdly, these bunker savings are influenced by environmental, on-board, and commercial factors, which presents both opportunities and challenges to decision makers.

Effective adaptation to climate change impacts is rapidly becoming an important research topic. Hitherto, the perceptions and attitudes of stakeholders on climate adaptation actions are under researched, partly due to the emphasis on physical and engineering aspects during the adaptation planning process. Building on such considerations, the paper explores the perceptions of port decision makers on the effectiveness of climate adaptation actions. The findings suggest that while port decision makers are aware of potential climate change impacts and feel that more adaptation actions should be undertaken, they are skeptical about their effectiveness and value. This is complemented by a regional analysis on the results, suggesting that more tailor-made adaptation measures suited to local circumstances should be developed. The study illustrates the complexity of climate adaptation planning and of involving port decision makers under the current planning paradigm.

Corporate Sustainability (CS) in the port sector has emerged as an important driver behind strategy definition for port authorities globally. It has been argued that CS practices have the potential of delivering value for port users and, as such, grant port operators and port managing entities competitive advantages. There is, however, limited evidence behind this claim. The difficulty with collecting such evidence is that we lack measures of port value creation, and CS metrics have rarely been developed and applied in ports. This paper provides a framework for collecting empirical evidence aimed at assessing in what way CS can benefit port competitiveness. The framework is built on a systematic literature analysis of the past years. The literature analysis exceeds previous comparable contributions by its analytical detail and provides valuable new insights on sustainability in the maritime domain. The research indicates that the accurate measurement of CS initiatives in the port sector is urgent and meaningful. When appropriately measured, the value that CS can deliver to port users becomes apparent. This is, however, often created indirectly via branding, risk mitigation, etc. The paper contributes to academic knowledge as it is the first to develop a rigorous CS measurement framework usable for ports in terms of value.