The effects of waiting times on the bunkering decision for tramp ships

• Published in: Maritime transport research Vol. 6; p. 100106
• Main Authors: FUENTES, Gabriel, WALLACE, Stein W., ADLAND, Roar
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01-06-2024; Elsevier
• Subjects: Bunker management; Bunkering ports waiting times; Port efficiency; Tramp shipping; Tramp shipping; Bunkering ports waiting times; Bunker management; Port efficiency
• ISSN: 2666-822X; 2666-822X
• DOI: 10.1016/j.martra.2024.100106

•Bunkering port waiting times can alter voyage dynamics and bunkering port decision.•We modeled tramp ships' bunkering with stochastic price and waiting times.•Valetta is a preferred bunkering option due to price and waiting times.•Our findings are useful for practitioners in evaluating bunkering options.
This study explores the influence of uncertain waiting times together with uncertain fuel prices, in the selection of bunker fuel stops for a shipowner engaged in tramp shipping. We analyze the stochastic bunkering waiting times in the bunkering optimization problem using scenarios constructed from vessels' Automatic Information System (AIS) records and test their relevance to the bunkering decision. Our findings highlight the tradeoff between port efficiency, as characterized by waiting times, and the economic advantages of purchasing bunkers from cheaper port options and finishing the voyage in higher-priced bunker regions. Although the absence of waiting time would have produced similar results in our empirical setup, introducing waiting times altered the dynamics, making a price-attractive port like Piraeus not as attractive when risk-aversion is modeled, particularly given the risk of prolonged waiting.