Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCR

Concerning the significant environmental emissions from the maritime sector, an Emission Trading System (ETS) is an effective market-based emission control measure. This study analyses the effect of ETS on the optimum routing between the Northern Sea Route (NSR) and Suez Canal Route (SCR), consideri...

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Main Authors: Chathumi Ayanthi Kavirathna, Ryuichi Shibasaki, Wenyi Ding
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Cleaner Logistics and Supply Chain
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Online Access:http://www.sciencedirect.com/science/article/pii/S277239092500023X
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author Chathumi Ayanthi Kavirathna
Ryuichi Shibasaki
Wenyi Ding
author_facet Chathumi Ayanthi Kavirathna
Ryuichi Shibasaki
Wenyi Ding
author_sort Chathumi Ayanthi Kavirathna
collection DOAJ
description Concerning the significant environmental emissions from the maritime sector, an Emission Trading System (ETS) is an effective market-based emission control measure. This study analyses the effect of ETS on the optimum routing between the Northern Sea Route (NSR) and Suez Canal Route (SCR), considering 174 dry bulk voyages between Asia and Europe. First, cost-, emissions- and time-saving made by voyages via NSR compared to SCR are estimated, and marginal abatement costs are estimated to identify feasible NSR voyages with an ETS. Accordingly, nearly 35, 80, and 160 voyages were cost-saving with NSR if SCR speed equals 10, 15, and 20 knots, respectively. Although all voyages save emissions with NSR if SCR speed equals 15 or 20 knots, only limited voyages save emissions via NSR if SCR speed equals 10 knots. Moreover, a much faster voyage via NSR than SCR could save more voyage costs, although it could not save emissions. However, a much shorter voyage via NSR than SCR could save more emissions, although it could not save costs. The optimization model derives over 90 feasible voyages for NSR, varied based on the free-emissions quota, icebreaker availability, navigation month, fuel prices, and types. Some voyages that were environmentally feasible but economically infeasible via NSR without an ETS were both environmentally and economically feasible with an ETS. However, if vessels slow steam via SCR, ETS would not significantly enhance NSR’s feasibility. Moreover, NSR is more feasible if the maritime industry uses expensive and cleaner fuel types.
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spelling doaj-art-819870b447334cfd98d2f00fc4ce708a2025-08-20T02:05:51ZengElsevierCleaner Logistics and Supply Chain2772-39092025-06-011510022410.1016/j.clscn.2025.100224Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCRChathumi Ayanthi Kavirathna0Ryuichi Shibasaki1Wenyi Ding2Department of Industrial Management, University of Kelaniya, Dalugama, Kelaniya, 11600, Sri LankaDepartment of Systems Innovation, School of Engineering, The University of Tokyo, 7-3-1 Hongo, Bunkyo, Tokyo 113-8656, Japan; Corresponding author.Department of Systems Innovation, School of Engineering, The University of Tokyo, 7-3-1 Hongo, Bunkyo, Tokyo 113-8656, JapanConcerning the significant environmental emissions from the maritime sector, an Emission Trading System (ETS) is an effective market-based emission control measure. This study analyses the effect of ETS on the optimum routing between the Northern Sea Route (NSR) and Suez Canal Route (SCR), considering 174 dry bulk voyages between Asia and Europe. First, cost-, emissions- and time-saving made by voyages via NSR compared to SCR are estimated, and marginal abatement costs are estimated to identify feasible NSR voyages with an ETS. Accordingly, nearly 35, 80, and 160 voyages were cost-saving with NSR if SCR speed equals 10, 15, and 20 knots, respectively. Although all voyages save emissions with NSR if SCR speed equals 15 or 20 knots, only limited voyages save emissions via NSR if SCR speed equals 10 knots. Moreover, a much faster voyage via NSR than SCR could save more voyage costs, although it could not save emissions. However, a much shorter voyage via NSR than SCR could save more emissions, although it could not save costs. The optimization model derives over 90 feasible voyages for NSR, varied based on the free-emissions quota, icebreaker availability, navigation month, fuel prices, and types. Some voyages that were environmentally feasible but economically infeasible via NSR without an ETS were both environmentally and economically feasible with an ETS. However, if vessels slow steam via SCR, ETS would not significantly enhance NSR’s feasibility. Moreover, NSR is more feasible if the maritime industry uses expensive and cleaner fuel types.http://www.sciencedirect.com/science/article/pii/S277239092500023XEmission trading systemDry bulk shippingOptimum voyage routingNorthern Sea RouteSuez Canal RouteEmission-saving
spellingShingle Chathumi Ayanthi Kavirathna
Ryuichi Shibasaki
Wenyi Ding
Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCR
Cleaner Logistics and Supply Chain
Emission trading system
Dry bulk shipping
Optimum voyage routing
Northern Sea Route
Suez Canal Route
Emission-saving
title Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCR
title_full Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCR
title_fullStr Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCR
title_full_unstemmed Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCR
title_short Optimum routing for dry bulk voyages with the effect of an emission trading system: NSR vs SCR
title_sort optimum routing for dry bulk voyages with the effect of an emission trading system nsr vs scr
topic Emission trading system
Dry bulk shipping
Optimum voyage routing
Northern Sea Route
Suez Canal Route
Emission-saving
url http://www.sciencedirect.com/science/article/pii/S277239092500023X
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AT wenyiding optimumroutingfordrybulkvoyageswiththeeffectofanemissiontradingsystemnsrvsscr