A planning framework for bunker risk management : network planning in bunker risk management integrated model

• Main Author: Guan, Yifei.
• Other Authors: Teo Chee Chong
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/52844
• Institution: Nanyang Technological University

To operationally mitigate the inflationary bunker price risks, liner companies pay great attentions to network planning. However, the operation characteristics of a liner company– operating on the publicized fixed schedules, complicates the network planning process. Liner companies need to plan well ahead to allow ample time for the customers to react to the new schedule caused by the changed sailing speeds. Moreover, a balance needs to be maintained between the fleet size and the sailing speed in order to adhere with the fixed schedule. Thus this paper first proposed a forecasting model to assist liner companies with schedule planning. It proceeds to investigate the optimal sailing speed for liner companies using a non-linear programming model to maximize the monthly profits of the main haul and the backhaul voyages respectively, in order to best mitigate bunker price risks without neglecting the presence of trade imbalance between the trading countries.