We propose an analytical modeling methodology for quantifying the impact of slow steaming on the carrier's voyage cost and on the shipper's total landed logistics costs. The developed methodology can be employed by a carrier and a shipper in their contract negotiations, in order for the two parties to determine how they could divide between them the savings resulted from slow steaming. We demonstrate that the impact of slow steaming and speed adjustment policies on the shippers’ total landed logistics costs tend to increase as the vessel travels towards the end of its voyage.

Carrier, Shipper, Slow steaming, Speed adjustment
dx.doi.org/10.1016/j.tre.2017.12.008, hdl.handle.net/1765/105628
ERIM Top-Core Articles
Transportation Research Part E: Logistics and Transportation Review
Department of Econometrics

Mallidis, I, Iakovou, E, Dekker, R, & Vlachos, D. (2018). The impact of slow steaming on the carriers’ and shippers’ costs: The case of a global logistics network. Transportation Research Part E: Logistics and Transportation Review, 111, 18–39. doi:10.1016/j.tre.2017.12.008