Optimizing ship routing to maximize fleet revenue at Danaos

Takis  Varelas; Sofia Archontaki; John Dimotikalis; Osman Turan; Iraklis Lazakis; Orestis  Varelas

doi:10.1287/inte.1120.0668

Optimizing ship routing to maximize fleet revenue at Danaos

Takis Varelas, Sofia Archontaki, John Dimotikalis, Osman Turan, Iraklis Lazakis, Orestis Varelas

Naval Architecture, Ocean And Marine Engineering

Research output: Contribution to journal › Article › peer-review

25 Citations (Scopus)

Abstract

In this paper we present an innovative toolkit that Danaos Corporation developed and deployed to optimize ship routing. Operations Research In Ship MAnagement (ORISMA) provides a clear answer to the conventional dilemma of least-cost voyage versus faster voyage. ORISMA maximizes revenue by using relevant information, including financial data, hydrodynamic models, weather conditions, and marketing forecasts. It considers the financial benefits after ship voyage completion to optimize the fleetwide performance instead of single-vessel performance. Using operations research and expert knowledge, we developed ORISMA to include world-class capabilities in scheduling optimization, intelligent voyage planning, ship bunkering, and chartering. In addition to maximizing Danaos’ profit, it helps the company to minimize carbon emissions, reduce staff workload, and increase customer satisfaction.

Original language	English
Pages (from-to)	37-47
Number of pages	11
Journal	Interfaces
Volume	43
Issue number	1
DOIs	https://doi.org/10.1287/inte.1120.0668
Publication status	Published - Jan 2013

Keywords

voyage planning
maritime routing
cargo transport optimization
dynamic programming

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10.1287/inte.1120.0668

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AU - Varelas, Orestis

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Optimizing ship routing to maximize fleet revenue at Danaos

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Keywords

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