How Technology will Change the Industry
By J. M. Lane
Abstract
Maritime shipping is one of the most efficient forms of travel in the world. This allows goods to be shipped at greater distances for a relatively cheap cost. Current forms of transportation are adapting to rising fuel costs and rising environmental issues associated with transit. The maritime shipping industry has taken some interesting technological approaches to reducing emissions and improving ecological marine standards. While the maritime shipping industry has focused on techniques to reduce the costs associated with fuel, much of the published research in the maritime shipping has concentrated on reducing greenhouse gas emissions and meeting International Maritime Organization regulations. This paper explores the current trends in shipping, pollution associated with the industry, and technological innovations that are currently being proposed and implemented across the industry. Future research should consider focusing on efficient technologies and fuel types that can diversity the markets so as to create a more competitive market in the shipping industry. New fuel sources and technologies can diversify the market as well as a cleaner environment.
Introduction: Importance of Maritime Shipping
The purpose of this review is to give a detailed insight on current trends in maritime freight, environmental impacts, and new technologies that may change the maritime industry. Given the current technological innovation and globalization of trade and commerce, maritime shipping is more important today than ever before, accounts for as much as 75% of global travel (Heiberg, 2012). While global goods can be shipped in variety of ways, maritime transportation is the most fuel efficient (Oak Ridge National Laboratories, 2012; Davis, Williams, & Boundy, 2016). For example, according to the US Maritime Administration Office of Market Promotion (1994), the average inland barge runs on 514 miles per gallon per one-ton cargo. This is compared to 202 miles per one-ton cargo for rail and 59 miles per one-ton cargo for freight trucks.
Due to the cost effectiveness of sea travel, this mode of transportation has become the dominant method worldwide. “A focus on the development of fast, efficient, and low-cost intermodal transportation has produced a system that moves goods around the world at a cost that, for high-value products, is often only 2 or 3% of the shelf price or less” (Helmick, 2008, p. 16). Frankel and Romer (1999) found that income rose as trade increased. While most scholars agree that maritime ports play a pivotal role in international trading cost (Clott & Wilson, 1999; Coulter, 2002; DeSalvo, 1994; Jacks & Pendakur, 2010; Korinek & Sourdin, 2010), some disagree with the effect that current maritime trade patterns from maritime ports have on the cost of shipping.
Other scholars (i.e., Coulter, 2002) have contended that while shipment costs have decreased due to the increased size of cargo ships, the overall cost has escalated because smaller ports have had to implement infrastructure improvements to support these larger freights. Some scholars state that trade between two countries with high shipping costs can have an adverse effect on economic stability (Korinek & Sourdin, 2010). Clark, et al. (2004) found that increased port efficiency can lead to as much as a twelve percent reduction in shipping cost. Reduced shipping costs can have a profound effect on the value of goods sold in the local marketplace. Clott and Wilson (1999) determined that ports work as a source of tax revenue and job security in most towns and cities. DeSalvo (1994) stated that because of the direct impact of a port on the local economy, the shutdown of a port would cause all local production associated with that port to cease. As the world becomes more intertwined through global commerce, freight efficiency through new technological innovation will be a key component to keeping the market competitive. Therefore, it is important to understand how new technologies will transforms the future of maritime industry.
Academic research on transportation sustainability has focused in large part on automobiles and rail, and air to a lesser extent, overlooking potential scholarly gains in research for the maritime transportation field (Chapman, 2007). This may in part be due to the prevailing view of maritime shipping as a sustainable form of transportation (UK DfT, 2004). While there have been a few reviews on the improvement of transportation technology and policy initiatives as a means to mitigate climate change (Chapman, 2007; Corbett, Wang, & Winebrake, 2009), there have not been any reviews of potential shipping technology as a means to improve both environmental standards and reduce shipping costs.
Current literature in the field focuses on environmental impacts of current forms of transportation and possible technologies to reduce such impacts. There is a need to develop literature that emphasizes the potential economic gains from the adoption of sustainable shipping technology. This review looks at trends in the waterborne shipping industry and harmful impacts that current shipping technology has on local marine life and the global environment. Current research on new technology is also reviewed so as to provide possible solution to current environmental concerns. Information concluded in this article intends to provide a framework for future research in the field of maritime transportation.
Current Trends in Maritime Shipping
The economic recession of 2007 forced many maritime freight companies to rethink their shipping strategies, leading to the development of new technologies that can improve shipping costs. The ultimate goal is to increase profits through decreased costs and create sustainable methods of transporting goods. Jacks and Pendakur (2010) reported that the overall cost of shipping due to technological innovation has decreased significantly since the nineteenth century. Some scholars have claimed that geography is no longer an issue in the era of globalization and the rise of multinational corporations (Ohmae, 1990). Negroponte (1995) argued that as virtual technologies advances, geographic space will disappear and be replaced with virtual space. This idea implies that we will soon live in a surrogate world where experiences are perceived in a virtual rather than a geographic reality. Morgan (2004) put all these theories to rest, however, implying that while claims that technology has forced geographic borders to crumble, technology has also helped to spur easier access to international markets.
Access to water provides an avenue for institutions to participate in trade. Christiansen, Fagerholt, Nygreen, and Ronen (2007) developed a strategic plan for shipping in maritime trade after discovering that seaborne transportation of goods and materials had increased by 67% since 1980. Even in an era with expanding technological innovation, we still depend on maritime travel for the transportation of commodities over great distances.
Is proximity a key to overall success in international trade? Few scholars have studied this perspective in any great detail. Tinbergen (1962) offered one of the first analyses of geographic location and international trade when he formulated the economic gravity model. This model applies the theory of gravity to international markets. Large economies tend to attract more investment and trade while economies that are closer to one another also attract to one another. This model has seen growing success over the years due to its application in studying trade flows between countries. This model shows that as distance is greater between two trading partners, the cost of transportation increases and thereby hinders trade flows. Larger economies can bypass this problem due to much a higher monetary balance.
In recent years, some scholars have detailed the importance of understanding geographic proximity of trade patterns in order to make international trade more effective (Hall & Jacobs, 2010). Boschma (2005) argued that spatial proximity was important in understanding the organization of trading patterns. The French School of Proximity Dynamics offered an interesting perspective on market proximity. In this example, there are many different forms of proximity other than geographic locations. Geographic proximity can be explained in terms of location and distance, however, there are other types of proximity that can be grouped in certain dimensions concerning cognition, organization, sociality, institutional, and geographic location (Shaw & Gilly, 2000).
Port size, maritime freight rates, and trade routes can directly affect the cost of goods transported. According to Márquez-Ramos, Martínez-Zarzoso, Pérez-García, and Wilmsmeier. (2011), freight rates decline as port size increase. This suggests that larger ports and hold more cargo and freight which reduces the cost of transporting goods in an out. This in turn effects the price of the goods being sold in the market. This study also showed that as shipping lanes increase, competition increases, and freight rates decrease. Freight costs directly affect the price of goods before they are sold in the market. This is an important variable to consider when shipping a product abroad. Fuel costs are one of the largest concerns for the maritime shipping industry and this may determine the way products are shipped in the future (Valentine, Benamara, & Hoffmann, 2013).
One of the main methods of determining the future of world trade flows is the use of the gravity model. According to Grossmann, Otto, Stiller, and Wedemeier. (2007), “forecast for world trade is based on an augmented gravity model, a standard model of empirical foreign trade research used to explain bilateral flows of trade. It makes it possible to quantify the influence of geographic, cultural, historic and economic factors on trade between two countries” (p. 230). This model takes careful aims to include geographic distance by both sea and land.
Frankel and Romer (1999) determined that countries trade more based on their proximity to one another. Other authors reinforced Frankel and Romer’s (1999) conjecture, reporting that there is a substantially positive correlation between a country’s location, trade value, and domestic income (Irwin & Terviö 2002). Robinson (2002) in particular pointed out how the proximity of maritime ports creates a value-driven chain that becomes essential in the development of prosperous trading patterns. Given these results, the role of maritime ports within the broad field of international trade research is an important field of study that requires much more quantitative research.
Environmental Impacts of Current Shipping Technology
Because shipping is the main form of transportation internationally, current forms of maritime freight shipping have an adverse effect on the environment. The main forms of air pollutants that are emitted from ships come from the burning of fossil fuels from the engine and from the incineration of garbage. The release of chlorofluorocarbons from old cooling systems may also be a problem in some older shipping vessels. Current shipping regulations forbid the dumping of chemicals into international waterways; however, accidental dumping does occur. Oil spills from maritime oil tankers is the largest cause of concern (Clark, 2002).
Most ships today use a propulsion system that converts chemical energy into mechanical energy. This involves the use of an outside fuel source. In order for modern ships to move through water, they must use some type of propulsor. The most common type used in ships today is known as the screw propeller. This creates mechanical energy by rotating at high speeds. These propellers often create high frequency noise which can adversely affect the marine life below. The propellers are often lubricated with certain types of oils which can lead to leakage. This leakage is required to be collected and treated before being released into the water. The largest contributor to pollutants within the ship is the combustion process. This process releases carbon dioxide (CO2), carbon monoxide (CO), sulphur dioxide (SO2), nitrogen oxide (NOx), and several other harmful pollutants. Most of this occurs within relatively close proximity of land. This is primarily due to ships coasting while in international waters (Andersson, et al., 2016).
According to Saxe and Larsen (2004), port cities receive the brunt of the emissions discharge. This has a profound environmental impact on the world’s leading port cities. This has been expounded by the fact that as the world has become more globalized and maritime trade flows have increased, so have emissions (Georgieva, Canepa, & Builtjes, 2007). Current standards for measuring emissions are inefficient and often report unreliable data. Schrooten, Vlieger, Panis, Chiffi, and Pastori (2009), tested a new model for measuring emissions. “The model is based on a fleet module, a transport activity module and an emissions module. The model can also calculate aggregated emission factors by ship type and size class, separately for the main engines and auxiliaries” (p. 322-323). It was determined that this method would help to accurately measure emissions so that marine vessels could meet new international emission standards.
Sulphur content within fuel has had a dramatic effect on the environment and has been a concern in environmental policy internationally. The International Maritime Organization has increased regulations on CO2 emissions along with several other environmentally dangerous pollutants. In particular, by 2020, sulphur content in fuel must be reduced from 3.5% to 0.5%. This can be met if ships reduce average speeds by 1 to 2 knots as well as the usage of exhaust gas scrubbing (Lindstad, Rehn, & Eskeland, 2017).
Lindstad, Eskeland, Psaraftis, Sandaas, and Strømman (2015) argued that increased regulations on sulphur emission can actually have an adverse effect on the environment. They contend that “burning dirty fuels at high seas in an engine optimized for fuel economy… gives climate cooling benefits, and this more than compensates for the warming effect of reducing harmful SOx and NOx emissions close to land and human populations” (p. 100). They also argue that to improve emission standards, the shipping industry should take steps to manufacture more hybrid shipping vessels.
While oil spills are a cause for concern, they have dramatically decreased since 1970. The most common cause of oil spills comes from oil tankers and can have an adverse effect on local marine life. These effects are highly localized and often difficult to stop (Andersson, et al., 2016). Due to increasing concerns of marine life safety, there has been growing interest in determining effective ways of measuring and detecting marine oils spills (Abascal, Castanedo, Medina, & Liste, 2010). Due to recent oil spills from deep sea oil rigs, there have been dramatic advances in technology that can detect when spills happen and can respond accordingly (Janeiro, Zacharioudaki, Sarhadi, Neves, & Martins, 2014; Balseiro, et al., 2003). These technologies can be used effectively to detect the possibilities and potentials of oil spills from both oil rigs and oil tankers. Moroni, Pieri, Tampucci, and Salvetti (2016), developed a technique for monitoring oil pollution using remote sensing software. By collecting on site data, this technique can help local authorities to determine solutions proactively in the case of a future oil spill.
Another cause for concern is the heating and cooling concerns onboard the ship’s living quarters. The bathrooms must be able to dispose of waste water as well. Sometimes this waste water leaks into the seabed and can harm local marine life as well. Large tanks are used to store all waste as well as fuel and freshwater for the ship’s crew. Ballast water and tanks are used to make sure that the ship’s weight remains evenly distributed when the cargo is not on board. Often bacteria are attracted to the ballast water and other tanks. Once the ship docks at the next geographic location, the remaining ballast water is disposed of and so too are the bacteria. These bacteria may act as invasive species and can run the risk of destroying local marine flora and fauna (Andersson, et al., 2016).
Due to the issues associated with bacteria in the ballast system, concerns have grown over the use of ballast water as a system for weight distribution. The cholera epidemic in Peru in 1991 can be directly attributed to the spread of bacteria from ballast water. In 2004, the International Maritime Organization, the shipping arm of the United Nations, adopted regulations designed to mitigate some of the issues involved with ballast water. Shipping companies are now required to have a “Ballast Water and Sediments Management Plan” (Satir, 2006, p. 457). This means that companies now have to treat the ballast water before it can be released into marine habitats.
Gray (2016) looked at the growing problem of invasive species such as the gypsy moth being transported on marine vessels and dropped off in port. This study determined that gypsy moth eggs can hatch and the larvae can infest the cargo. This can create havoc on local marine life when released at port. In order to stop the spread of the gypsy moth, ports must inspect all cargo prior to departure and when they arrive to the destination.
New Technology in Maritime Shipping
According to Mcguire and Perivier (2011), current policy measures by participating countries fail to mitigate sustainability issues. “Current international practices are resulting in substantial policy failures that are preventing domestic government controls and discouraging progress in international agreements to resolve these environmental problems” (p. 73). Technology of any kind can help produce a more sustainable shipping network. This may include any advancement that helps to build a more efficient and cost-effective mode of transportation within the maritime trade network.
GPS and Bluetooth Technology
The institution of Global Positioning Systems within the shipping industry has allowed logistics companies to improve route efficiency. This decrease in route trip frequency has a direct effect on fuel consumption and energy efficiency. Bluetooth technology has also revolutionized the way data is transmitted throughout the supply chain network. By sharing this data in a more efficient manner, products reach their destination much quicker, reducing the amount of fuel that is consumed (Tarn, Pang, Yen, & Chen, 2009).
As fuel costs have increased in recent years, the maritime trading sector has instituted new shipping techniques to reduce cost. While these operations were not directly instituted for sustainability issues, they do help when looking at fuel consumption and emissions. “The maritime industry responded to rising fuel costs by adopting certain measures. These include in particular operational changes (e.g. redeploying ships, consolidating services, reducing sailing speed, discontinuing less profitable services and improving sailing conditions), an increased emphasis on technological improvements, as well as the introduction of bunker surcharges” (Valentine, Benamara, & Hoffmann, 2013, p. 240). These new policies will affect the cost of ship design for the foreseeable future.
Hybrid Engines
New hybrid technology used within road vehicles has been largely ignored by the shipping industry until the past few decades. According to Baker (2008), the institution of hybrid battery storage has had a profound effect on energy efficiency within the automotive industry and can store more energy than any other technology currently in testing. This type of technology, if transferred effectively across transport modes, could prove advantageous for the maritime shipping industry. Dedes, Hudson, and Turnock (2012), showed “that installing hybrid power technology on-board dry bulk ships can save fuel up to 1.27 million USD (at the price of 520$/tonne) per vessel and per year, assuming that the 60% of the time ship sails in laden and 40% in ballast condition” (p. 217). There is a direct relationship with the reduction of fuel consumption and emissions released. This study shows the profound effect that hybrid technology can have on the maritime shipping industry.
Lindstad, Eskeland, Psaraftis, Sandaas, and Strømman (2015) offered a solution to issues involving emissions. They suggested that a ship’s engine could be replaced with multiple engines that help to reduce emissions, or a complete overhaul could be made where the entire engine is replaced “a state-of-the-art engine with an advanced engine control system” (p. 99). These alternatives would help ships to be compliant with international emissions standards without putting too much hardship on shipping companies.
Slow Steaming
Another alternative to CO2 emissions reduction is slow steaming. This is a particular technique that has been instituted in the wake of rising oil prices. Slow steaming actively reduces vessel speeds lower than designed trip speeds so as to reduce fuel consumption. Due to this deliberate reduction in speed, shipping companies often have to use more marine vessels to transport the same amount of cargo (Woo & Moon, 2012). While this technique was originally initiated to reduce fuel consumption and cost, there were other benefits as well. Woo and Moon (2014) ran a study testing the effectiveness of slow steaming on cost and emissions reduction and found that “slow steaming is helpful in reducing the amount of CO2 emissions, whereas it is not always useful to reduce the operating costs” (p. 188). They discovered that the marginal benefits of slow steaming had a much larger effect if vessel size was increased but that “this influences the operating costs and the cost-energy efficiency (CEEI index) negatively” (p.189). So, what does this mean? While this technique has limited benefits in cost reduction, the change in profits are so marginal that the benefit to the environment outweighs any cost that might be ensued.
LNG Fuels for Propulsion & Auxiliary Engines
Due to the rising usage and supply of natural gas worldwide, liquefied natural gas (LNG) is considered by many as the future of fuel consumption within the shipping community (Kumar, et al., 2011). LNG fuel has been seen as a replacement for conventional fuel used in internal combustion engines, large scale propulsion systems, and auxiliary engines within shipping vessels. In general, LNG fuels work better in larger engines and is seen as a viable substitute because of its reduced weight. This fuel sources also emits less greenhouse gases than conventional fuel sources and can be retrieved domestically within the United States (Arteconi & Polonara, 2013).
There have been some concerns when dealing with the toxicity of LNG. According to Bernatik, Senovsky, and Pitt (2011), “Natural gas is not toxic, but LNG is hazardous because of its temperature, the possibility of asphyxiation and of course the fire risk… If people come in direct contact with the liquid or its containment material, cryogenic burns resembling frostbite can occur” (p. 1). Alternatives to LNG, such as Methanol, have also been investigated in recent years. Methane and Methanol fuels are derived from alcohol and can be used in a variety of different engine types. The fuel efficiency of methanol depends on the type of engine used. Methanol can be produced using either natural gas or biomass, both of which have different impacts on the environment. Methanol produced from biomass produces much less emissions and can be offered as an alternative to conventional fuel sources and LNG (Brynolf, Fridell, & Andersson, 2013).
Cold Ironing
Cold ironing is another alternative technique that can help reduce emissions. The highest emissions within the shipping industry occur close to the port city and much of the research is concerned with the reduction of emissions not only for the environment, but also for the health and safety of people. A possible solution for port city pollution is the process of connecting ships to an in-port power supplies (cold ironing), giving the ship time to power down, resulting in the reduction of emissions in or near the port (Chang & Wang, 2012; Hall, 2010; Zis, North, Angeloudis, Ochieng, & Bell, 2014). The biggest concern with cold ironing is the fuel source being used to power the port facility. While the direct environmental impact on the port facility is mitigated by cold ironing, there can be an indirect impact on the region if oil, coal, and/or natural gas are being used as the fuel source for the local power plant (Sciberras, Zahawi, & Atkinson, 2015).
Selective Catalytic Reduction (SCR)
Nitrogen oxides (NOx) are considered one of the most harmful greenhouse gases emitted from internal combustion engines. Laws in recent years have capped the amount of NOx that can be emitted from ocean going vessels. This has led to the development of some revolutionary technologies, one of which is selective catalytic reduction (SCR). There are two main types: ammonia assisted selective catalytic reduction and hydrocarbon-assisted catalytic reduction. Both types of SCR can remove between eighty-five to ninety-five percent of the NOx emissions released from a ship’s exhaust system (Habib, Basner, Brandenburg, Armbruster, & Martin, 2014).
Several US government agencies such as the Environmental Protection Agency (EPA), the Department of Energy (DOE), and the Clean Coal Technology (CCT) Demonstration Program teamed up to evaluate the effectiveness of SCR technology. A team of scientists and interagency members tested catalysts produced by three US companies. The results varied on individual levels however all catalysts were effective in reducing the levels of NOx emissions by eighty percent. The relative cost of installing these catalysts is quite small considering the long-term benefits (United States and Southern Company Services, 1997).
Sulphur Scrubber System
Catalytic science, the act of cleaning exhaust, has been pivotal in the removal of pollutants from internal combustion engines since the late 1970s. Due to maritime shipping companies’ preference for the use of heavy fuel oil, marine vessels typically emit pollutants with as much as 2.7% sulphur content (Mestl, Løvoll, Stensrud, & Breton, 2013). Scrubbers have been added to exhaust systems within the maritime shipping sector with some successful results. These sulphur scrubbers have been able so successfully remove up to 90% percent of the sulphur released (Lan, Zhang, Yu, & Lei, 2012; Srivastava, Jozewicz, & Singer, 2001).
Boscarato, Hickey, Kašpar, Prati, and Mariani (2015), determined that because fuel cost makes up the largest portion of total shipping costs, an efficient and cost-effective alternative will need to be made in order for the industry meet regulatory standards. While fuel with low sulphur content is an option, it is much more expensive than the overall cost of a sulphur scrubber system. The current scrubber systems are quite young so scholars will need to complete further research to help develop a more efficient system.
Advanced Rudder and Propeller System
New technology has been created that can make shipping much more efficient and reduce fuel consumption. A steering autopilot system attached to the rudders of a marine vessel directly effects the amount of energy and manpower required to steer a ship. According to Das and Talole (2016), an autopilot system “based on Generalized Extended State Observer (GESO)” (p. 165) is a possible solution to some of the issues concerning steering efficiency and fuel consumption.
The most common materials used to engineer propellers in marine vessels are metals such as titanium and, to a lesser extent, aluminum. Over time, these propellers can corrode, making current modes of propeller manufacturing inefficient. The propeller is generally placed on the stern of a ship and acts as the final mechanism of propulsion that moves the ship, so this part of the ship design is of the utmost importance. Composite materials can be used to reduce the corrosive effects placed on the propeller. These composite materials are made from fiber reinforced polymers that are much lighter weight than their metal counterparts. Pham-Thanh, Tho, and Yum (2014) performed an experiment with three different composite propellers and found that the blades made from “fiber and gelcoat resin” (p. 1630) performed the best out of the three propellers. In another experiment, scholars determined that energy saving devices could be added to propellers that help fuel consumption and provide a more efficient means of propulsion (Fathololumi & Hassanabad, 2016).
Hull Paint
The ability of a ship to stay at a consistent velocity is another concern. As a ship moves through water, barnacles are attracted to the hull. As more barnacles accrue at the base of the hull, this can slow the ship down. The process by which plants and animals accumulate at the hull of a ship is called fouling. The use of antifouling paint had been introduced in the 1960s and by the 1970s had become standard use. This paint allows ships to increase speeds and consistency while in transit. This antifouling system had become a major concern and spurred the International Convention on the Control of Harmful Anti-Fouling Systems on Ships 2001. According to United States Clean Hull Act (2009), antifouling paint using tributyltin (TBT) is extremely harmful to marine life and must be regulated. The Clean Hull Act of 2009 was passed in order to control the types of materials used in this hull paint. Turner (2010), found that antifouling paint caused increased leaching which led to a larger amount of contaminant trace metals that can adversely affect marine life.
While TBT hull paint is harmful to marine life, it does help ships to move more efficiently through the water, thereby burning less fuel. Due to international environmental legislation and subsequent legislation in countries around the world, alternatives to TBT antifouling paint have been created. In response to this legislation, an antifouling paint made of zinc acrylate copolymers was developed. This paint was tested and met all environmental standards while also successfully warding off fouling residual matter from the hull of the ship (Yonehara, Yamashita, Kawamura, & Itoh, 2001). Should ships use antifouling paint so as to reduce emissions or do these paints present a potential problem for marine life? The debate is still ongoing today.
Waste Heat Recovery System
The shipping industry is always looking for ways to improve cost efficiency by recycling energy and reusing it elsewhere. Dryers, kilns, ovens, and furnaces all produce latent heat that can be redirected and used for other functions (Vatanakul, Cruz, McKenna, Hynes, & Sarvinis, 2011). This waste heat energy is created and released into the local environment as a heavy pollutant. Waste heat recovery systems can be used to not only reuse this heat and save on energy costs but can be used to mitigate the environmental impacts of the initial waste gases released into the atmosphere. One of the most promising forms of waste heat recovery is the use of the Organic Rankine Cycle (ORC). The ORC system can take thermal energy and transform this into a working power source. This works especially well on a large scale (Kizilkan, Nizetic, & Yildirim, 2016).
The ORC system reduces NOx, CO2, and CO emissions at a much higher rate than other systems and can be applied to a ship’s waste recovery system. The ORC system is also more efficient than other systems currently being tested (Dai, Wang, & Gao, 2009). Due to the rise in regulations along with the economic crisis, costs have been rising and profits margins have shrunk in the shipping industry. For this reason, industry specialized have been testing ways to improve this system so as to decrease shipping costs. According to Soffiato, Frangopoulos, Manente, Rech, and Lazzaretto (2015), “less than 50% of the primary energy associated with the fuel is usually converted into mechanical or electric power, whereas the remaining part is mostly rejected to the environment” (p. 524). Previous studies have looked at the use of the ORC system in internal combustion engines but few have looked at its effect on LNG marine vessels. This study focused on LNG carriers and determined that when the ORC system was applied to an electric propulsion system, “the power output of the ship increases by about 1.83%, 2.18% and 2.48%, respectively” (p. 534). While these results do not seem fantastic, the use of this system over a long period of time could result in cost savings and render a dramatic decline in greenhouse gas emissions.
Exhaust Gas Recirculation
Another noxious gas that has adverse environmental impact is NOx. Growing concern over this particular gas has led to some important developments. Due to rising concerns of greenhouse gas emissions, regulations have been passed forcing the development of what is known as exhaust gas recirculation (EGR). First used on automobiles, EGR takes the exhaust of an engine and recirculates the gas to the rest of the engine. The result cools the engine which in turn reduces the amount of NOx released once the fuel source is used. EGR can also help to reduce fuel consumption in internal combustion engines (Wei, Zhu, Shu, Tan, & Wang, 2012).
Research directly related to EGR and marine vessels is limited but a few studies have taken place recently with interesting results. Wang, Zhou, Feng, & Zhu (2017), studied the effects of the EGR system on two-stroke diesel engines claiming that “the best answer for propulsion of nautical ships presently and for the near decades is the low-speed two-stroke diesel engines” (p. 19337). Their results showed a 76% reduction in NOx when EGR was applied to the diesel engine. This technique shows not only profound results with the reduction of NOx, but also shows that if the right initial steps are taken, the EGR system and help reduce long-term costs within the shipping industry.
Optimizing Vessel Routes and Schedules
One of the biggest ways that the shipping industry can reduce emissions is by limiting the amount of unnecessary time that marine vessels are spent in motion and using their primary engine. This can also help the industry to optimize profitability. Due to the regularity of ocean liners journey to and from port areas, certain models can be made that optimize the routes that these vessels take. Qi and Song (2012), developed a model that could increase efficiency, profitability, and decrease emissions if followed correctly.
Fagerholt, Laporte, and Norstad, (2010), focused on speed and developed an optimization model that determines the best speed that a ship can travel while also allowing the ship to arrive at each port on time. Of both models tested within this study, the authors found that the best way to optimize travel time while also saving on fuel and emissions is to focus on sailing time rather than speed. They also determined that as the number of stops added to a sea route increased, the potential for reducing fuel consumption declined.
Fuel Cell Propulsion
Another way to reduce energy consumption, thereby reducing greenhouse gas emissions is the use of fuel cell propulsion systems. A recent example of this new technology, the polymer electrolyte membrane (PEM) fuel cell (Figure 4.1), has been tested and found to dramatically decrease emissions and has proven to be a highly efficient system. It has been used in a number of vehicles such as golf carts, scooters, and cars (Hua, et al., 2014; Sharaf & Orhan, 2014; Tolj, et al., 2013; Wang, Chen, Mishler, Cho, & Adroher, 2011). Choi, et al. (2015) tested the viability of the PEM fuel cell on a small tourist boat of about 20 meters long and found the resulting experiment successful in providing a suitable alternative engine for a small tourist boat using coastal waters.
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Fuel cell propulsion systems on large merchant vessels have not been as reliable as fuel cells in automobiles but they do play a role in supplementing current LNG or diesel-powered ships. The major problem with fuel cells on merchant ships is the high initial costs. Due to the relatively inexpensive cost of natural gas, fuel cells have not been seen as a cheap alternative. Hydrogen PEM fuel cells also require a large amount of storage space, of which would need to be considered when designing a ship using these fuel cells (Sattler, 2000).
Sail and Kite Propulsion System
Sometimes looking back into history can provide some interesting answers to the problems of today. Throughout 1970s and 80s, growing concerns over oil prices led a shipping company in Denmark to design two large scale square rigs so as to take advantage of wind propulsion. Results from this and many other tests shows varied outcomes across different shipping routes. Due to the positive impact these kite systems had on fuel economy, some companies began adding kites to ships contemporaneously running on tradition diesel powered propulsion systems. These large kites resemble a giant parachute and are released once the merchant vessel reaches deep sea depths. A brand of kite, known as SkySails (figure 4.2) can be added to container ships and reduce average fuel consumption between 10-35% depending on the wind speeds and conditions of each trip (U.S. Cong., 2006).
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Recent research has determined that while there are several wind propulsion and wind assisted systems that can be used, port structures that currently exist could not facilitate large rigs added to merchant ships. The initial cost associated with the production of sails and the restructuring of port infrastructure is higher than the slow steaming option that many shipping companies are choosing today (Mander, 2017). Despite these concerns, a few companies have adopted wind assisted systems and have enjoyed the associated savings benefits. Potential investors and shipping companies have not been seizing on the wind propulsion opportunity primarily because of potential market and non-market failures. The lack of investment may need to be mitigated by governmental funding in order to see any substantial growth (Rehmatulla, Parker, Smith, & Stulgis, 2017).
Other Green Technology
There are several other potential technologies and innovations that can make shipping a more sustainable industry. The removal of ballast water all together is an option. Currently, technicians are working on designing a ship that can run without the ballast system. The Sandwich plate system (SPS) is a process where steel is replaced with a composted twin metal alloy that is lighter weight and has higher buoyancy than the prior. This allows ships to move quicker and consume less fuel. These technologies are currently being tested and as of yet have not been researched on a wide scale. More research needs to be made in these fields in order to see the usefulness of these technologies (Kaushik, 2017).
Conclusions and Future Research
The largest concern for maritime shipping is the use of fossil fuels. While emissions are not a direct concern for shipping companies, the connection between the maritime transportation sector and the petroleum fuel industry makes maritime trade vulnerable to any potential petroleum market failure. For this reason and issues associated with pollution, academic research on the shipping industry should focus on future alternative forms of energy. In order to expand the research so as to improve the shipping industry and overall welfare, scholars should develop a more robust approach to research so as to increase market efficiency. This article paid close attention to recent research in maritime trade, the profound environmental impacts of maritime shipping, and current research on technologies that may revolutionize the industry.
The use of hybrid engines on a large scale is the next step to creating a more sustainable shipping industry. While this does not remove fossil fuels from the equation, it is a relatively inexpensive way to move toward that direction. Research on hybrid engines has focused on large-scale use in automobile transportation while overlooking potential use in the maritime freight industry. More research in this particular area is needed so as to provide guidance for development of an overall strategy for implementation. More information is also need in the realm of LNG powered vessels. There has been some research in this area but more information is needed about the future of LNG as a fuel source on barges and freight ocean liners.
There is growing disagreements by scholars over the environmental impacts of sulphur dioxide. Some scholars have suggested that releasing sulphur into the upper atmosphere can help reduce global warming (Lindstad, Eskeland, Psaraftis, Sandaas, & Strømman, 2015). Scholars should build a consensus around the development of sound technology, such as sulphur scrubbing systems, so as to reduce the number of foreign particulates released into the atmosphere. Research on the use of selective catalytic reduction in maritime shipping should also be considered. While this is relatively cheap and helps to reduce up 95% of nitrogen oxide released (Habib, Basner, Brandenburg, Armbruster, & Martin, 2014), most of the research in this area has focused on small marine vehicles and automobiles.
The only long-term solution to fixing fossil fuel dependency is the use of alternative fuel sources. While cold ironing allows ships to plug into the port system during loading and unloading, the environmental impact of this is determined by the power source that provides electricity to the port. Cold steaming only reduces fuel consumption, thereby reducing fuel costs, but it does not fix the underlying problem. The long-term solution to the fuel consumption issue is developing sound research on fossil fuel replacements.
There has been very little research on the development and implementation of hydrogen powered barges and ocean liners. This area of study has the potential to revolutionize the way goods are transported over water. More research is needed so as to improve the fuel economy of marine vessels and reduce greenhouse gas emissions.
Research on sails and kites has been minimal due to the nature of the industry. While the return of sails and the use of wind propulsion is an alternative to petroleum, these forms of travel are only supplemental and are often unreliable. Studies in this area should focus on the effects of large-scale implementation and how this might impact fuel economy.
Other maritime shipping issues that are often overlooked by the larger community are the dumping of chemicals and foreign substances into marine life. Hull paint and ballast systems are major contributors to this problem and a valid long-term solution must be developed by scholars in order to protect marine life. Use of composite materials when producing propeller systems may help to mitigate some of the corrosion that occurs underwater, thereby reducing foreign substances introduced to local marine habitats.
Scholars should build a holistic method for researching the shipping industry’s impact on marine ecology and the overall global climate system. While current research on environmental impacts are warranted, scholars should redirect focus to the potentially positive economic gains that can be made from the adoption of sustainable maritime transportation technology. Maritime trade will be at the forefront of commerce for years to come. In order for the industry to remain competitive and continue to provide a valuable service, current research should be used to make a more sustainable future.
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