Optimizing ship routing to maximize fleet revenue at Danaos

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

Research output: Contribution to journalArticle

13 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 languageEnglish
Pages (from-to)37-47
Number of pages11
JournalInterfaces
Volume43
Issue number1
DOIs
Publication statusPublished - Jan 2013

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Keywords

  • voyage planning
  • maritime routing
  • cargo transport optimization
  • dynamic programming

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