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May big data support better forecasting – re-evaluation of a seca study




AuthorsEsa Hämäläinen

Conference nameInternational Conference The Baltic Sea: gateway or cul de sac?

Publication year2018


Abstract

From 40 to 60 percent of ship’s operating costs are fuel costs. From 2015 vessels in SECA-regions had to change of bunker fuel from heavy fuel oil (HFO) to sulphur-low marine diesel oil (MDO). Price difference between these bunker qualities expected to be even 150 % higher from 2015 onwards due to in year 2014 oil prices and thus bunker prices were on very high level. Even shortage of MDO was anticipated in some scenarios. There were carried out large amount of forecasting studies, which expected big difficulties for logistics and shipping companies and export industry, which are functioning behind maritime transport routes. However oil price dropped dramatically from 2015 onwards and the price-level have stayed until now at relatively low level. Lately at the beginning of 2018 oil price has slowly increased, but not really in USD. A purpose of this study is to address how maritime transport costs reflect with recent and expected future bunker prices. Also our aim is to examine and simulate together with different bunker price data together with various vessel speeds how these combinations may impact to transport costs and also margins of export business. Vessel speed has a great impact on daily operating costs through fuel consumption. The research data was acquired from Big Data storage of a large export process industry. Additionally, the latest bunker price data was used. We wanted to expose that all the forecasting calculations using hypothetical figures may produce misleading information for decision makers. Especially in situations were global political decision making has a large influence on costs and prices and in these cases researchers should be aware of the risks of received results. We address that anticipatory calculations made before year 2015 about the impacts of SECA- decision were not really reliable due to rapid lowering of oil price in global markets. These calculations may have increased scrubber investments. Also, so called slow steaming, did not became very common sailing method in the Baltic Sea area, because low oil price supported ships to sail in optimal speed in the Baltic Sea.



Last updated on 2024-26-11 at 22:54