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Shanghai. The ship works 350 days each year. To each round trip, the ship stays in
port for 11 days in total. Moreover, according to a survey from the ship operator, the
average daily fixed cost (
) of this containership operating on the Asia-Europe route
is 114667 USD and the average loading factor is 85%.
From Table 2 we can see that the volumes rate of container trade in 2013 between
eastbound and westbound is nearly 0.5. Combining the average freight rate of a 40ft
container for Asia-Europe route in 2013 (shown in Table 3), and average loading
factor, we can evaluate the annual revenue of the ship.
Table 2.
Forecast development of Asia to North Europe Container Trade Volumes in 2013
(Source: Container Market Review and Forecaster, Quarter 1/2013, Drewry Maritime
Research)
Quarter
1Q
2Q
3Q
4Q
Total
Westbound (000 TEU)
2210
2231
2394
2185
9020
Eastbound (000 TEU)
1172
1122
1103
1160
4557
Table 3.
Container Freight Rate Benchmarks (Spot Market) for Asia-Europe Route in 2013,
all-in (USD per 40ft container) (Source: Sea & Air Shipper Insight, Drewry Maritime Research,
April 2013 - Issue no. 04)
Time Jan. 2013 Feb. 2013 Mar. 2013 Average
Westbound 2959 2575 2572 2702
Eastbound 1263 1230 1267 1253
Note: All-in rates include base rate, BAF, other surcharges and terminal handling charges at
origin and destination.
In this paper, the bunker fuel prices are referred to Rotterdam bunkers price on
May 3rd, 2013. Price of MDO
1
and 380 cst
2
is, respectively, 830 USD/ton and 576
USD/ton. Auction price and purchase price for CO
2
allowance in this paper is 25
USD/ton and 30 USD/ton, because analysts pointed out that only when the CO
2
al-
lowances price is 20 to 30 EUR/ton it can promote entities search measures to cut
down GHG emissions [26].
Applying Equation (4) to this case, we calculate the profit-maximizing speed of the
ship. As profit-maximizing speed only relates to ship's engine and fuel prices, profit-
maximizing speed in westbound and eastbound of the ship are both 17 knots when
there is no emissions costs. If the ship operated in this speed in 2012, its correspond-
ing CO
2
emissions should be 95275.3 tons.
When the Marine Emissions Trading Scheme proposed in this paper put into effect,
the CO
2
emissions allowances for this ship will be 76220.24 tons, 80% of 2012. In
addition, annual profit and CO
2
emissions of the ship with different speed reduction
rates are shown in Tables 4 and 5.
1
Fuel for auxiliary engine.
2
Fuel for main engine.
