TDEI - Sustainable Strategies

In order to reduce air pollution caused by shipping, the International Maritime Organization has implemented stricter emission regulations, so shipping companies need to take appropriate measures to meet the regulatory requirements.Currently there are so many compliance options for emissionreductionin the marketthat we only analyze six,which can be bassicall classed into two typesretrofit and non-retrofit. Therefore,this study constructs a combination decision-making behavior model of "whether to retrofit + compliance measures" based on the Nested Logit model, and comprehensively analyzes the impact of various factors from aspects such as ship characteristics, shipping companies, and market on different decisions. The empirical analysis results show that: firstly, the market factor of Time Charter has a significant negative impact on certain choices among the alternatives. Secondly, company and ship characteristic factors such as the builder's country, the company's market share, and rival companies expansion significantly affect the decision of shipping companies' retrofit decision. Lastly, market factors, such as the bunker price, Second-hand Price Index, Newbuilding Price Index, and the ship's size of TEU significantly influence the compliance measure choices of shipping companies, while the vessel's age has no significant impact. This study provides a theoretical framework in analyzing compliance options of shipping companies, assisting them in coping with emission reduction regulations.

The offshore drilling industry experienced a collapse in activity when oil prices fell sharply from mid-2014 onwards, culminating in the negative oil prices of April 2020. This sharp and sustained decline in activity led to financial distress across the sector globally and to a surplus of vessels. The supply of offshore rigs persistently exceeded demand. This paper investigates how offshore drilling companies restructured industry capacity through scrapping, rig stacking, and mergers, acquisitions and divestment in the period 2014-2021. 
The study focuses on the capacity management decisions made by ten of the leading drilling companies over this period of industry-wide recession, low utilisation and losses. The author examines how companies in the industry responded to a protracted downturn that saw 347 offshore-drilling rigs scrapped in the period, from a starting fleet of 789 units.
This paper looks at how firms' creditors, shareholders and management often had divergent interests as companies sought to survive during the industry's multi-year downturn. The circumstances of individual companies are at the heart of scrapping decisions in shipping. The analysis in this empirical shows that corporate strategy and corporate balance sheets often mattered more than the age or condition of individual rigs in capacity reduction decisions.

The maritime industry faces increasing pressure to adopt sustainable ship recycling practices due to environmental, health, and safety concerns. Traditional shipbreaking methods often pose risks to workers and local ecosystems, prompting regulatory interventions. This paper explores the implementation of a Ship Recycling License (SRL) as a financial mechanism to encourage responsible ship dismantling. The SRL, grounded in the Polluter Pays Principle, would require shipowners to make annual contributions throughout a vessel's operational life. These funds would be refunded upon recycling at an approved facility that meets international safety and environmental standards. The study examines current regulatory frameworks, including the Basel Convention, the Hong Kong Convention, and EU regulations, to highlight the gaps and challenges in enforcement. A tiered fee structure is proposed, reflecting vessel type, size, and market conditions, ensuring fair financial obligations for shipowners while promoting compliance. The potential impact of an SRL on ship recycling markets, industry behavior, and the broader sustainability agenda is discussed. By deterring the use of substandard demolition yards, the SRL could drive investment in certified recycling facilities, aligning with global decarbonization and circular economy objectives. Future research will include case studies evaluating its economic feasibility and global applicability.

In recent decades, the shipping industry has increasingly focused on sustainability and corporate social responsibility (CSR), integrating environmental, social, and economic concerns into their operations. Shipping companies recognize the benefits of CSR and aim to meet stakeholder expectations through responsible actions and policies. Effective stakeholder communication is crucial for CSR success, as it ensures stakeholders are aware of the company's efforts and can provide valuable feedback. This ongoing study investigates how shipping companies in the Baltic Sea region communicate their CSR activities through their websites. The research involves reviewing the websites of the ten largest shipping companies from each country in the region, focusing on the presence and visibility of CSR information. Key aspects reviewed include the availability of English webpages, the inclusion of CSR information on the homepage, the use of CSR systems or standards, and the mention of the UN Sustainable Development Goals. Preliminary results indicate that the extent of CSR disclosure varies widely among companies. Larger companies are not necessarily the most advanced in stakeholder communication. The study compares current findings with a 2013 study to assess changes in CSR practices over the past decade, providing insights into paths to self-regulate and commit to responsibility.

Some impacts of cruise shipping, such as air pollution, overcrowding, traffic congestion, etc., can be described as negative externalities. Valuing them is a major challenge due to their non-market nature. The aim of this paper is to show how the potential welfare losses associated with these externalities can be estimated within a contingent valuation framework and to illustrate this with a case study. To this end, residents of the two main port cities of the Canary Islands were asked about their willingness to accept (WTA) monetary compensation for the potential welfare losses caused by cruise shipping. Although a majority of respondents believe that the benefits generated by the cruise industry outweigh the costs, results show that for those willing to accept compensation, the mean WTA estimated using a probit model with a correction mechanism for hypothetical bias was €88.50. Policy implications, limitations and suggestions for further research are provided.

As Arctic shipping traffic grows due to climate change, understanding the impact of sea ice concentration (SIC) and thickness (SIT) on ship behavior becomes critical. This study evaluates the effectiveness of the Polar Operational Limit Assessment Risk Indexing System (POLARIS) for Arctic shipping, particularly focusing on how ships with different ice-classes comply to risk mitigation measures under varying sea ice conditions. Using sea ice data from Copernicus Marine Service and AIS (Automatic Identification System) data, the study characterizes shipping traffic and assesses the correlation between the Risk Index Outcome (RIO) and ship speed. The results show that ships with higher ice-classes (PC2 to PC7) tend to operate at higher latitudes and speeds. The analysis also shows that higher ice-classes ships (PC2-PC5) always remain a safe state according to the POLARIS, while a significant proportion of PC6 and PC7 ships exceed recommended speed limit provided by the POLARIS.This suggests that the recommendations provided by POLARIS may need to be reviewed, particularly for ships with lower ice-classes. The research underscores the need for improvements in the POLARIS system, providing valuable insights into ship navigation safety in ice area.