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Slow steaming as part of SECA compliance strategies among RoRo and RoPax shipping companies

Konferensbidrag (offentliggjort, men ej förlagsutgivet)
Författare Zeeshan Raza
Johan Woxenius
Christian Finnsgård
Publicerad i International Association of Maritime Economists (IAME) 2017 Conference, June 27-30, Kyoto
Publiceringsår 2017
Publicerad vid Företagsekonomiska institutionen
Företagsekonomiska institutionen, Industriell och Finansiell ekonomi & logistik
Göteborgs miljövetenskapliga centrum, GMV
Språk en
Ämnesord Slow steaming, SECA compliance, short sea shipping, competitiveness
Ämneskategorier Transportteknik och logistik, Företagsekonomi

Sammanfattning

Many geographically-peripheral member states of the EU are critically dependent on short sea RoRo and RoPax shipping services for intra-European trade and passenger transport. The implementation of sulphur emission control areas (SECAs) regulation was expected to amplify operating costs for RoRo and RoPax shipping. Earlier research has approached the issue of slow steaming and SECA from multiple angles. However, from the perspective of the RoRo and RoPax shipping firms, the feasibility of slow steaming as a contributing factor to mitigate the expected additional SECA compliance costs has yet to be explored. In addition, the knowledge regarding the impact of slow steaming on the competitiveness of RoRo and RoPax with respect to service quality is limited. This paper addresses these issues through the analysis of multiple cases focusing on RoRo and RoPax firms operating in the North and Baltic seas. We have found that, due to decline in bunker prices, out of 11 case firms, only one RoRo and one RoPax firm have currently reduced vessel speed to compensate for the additional SECA compliance costs. We conclude that bunker prices, rigorous competition, and, most importantly, customers´ different service quality (SQ) requirements restrict the potential of slow steaming for the RoPax and RoRo segments.

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