Optimization of fleet structure and investment evaluation – the cargo owner's fleet perspective

Purpose Energy groups are cargo owners with large amounts of energy sources (such as coal) to transport. To achieve a satisfactory tradeoff between the reliability requirements sea transportation process and need control investment cost, they usually set up self-owned fleet supplemented by chartered fleet. This paper aims investigate best structure evaluate scheme under volatile circumstances in shipping market. Design/methodology/approach The authors construct mathematical model determine ratio total minimize operating costs. volatility both freight rates oil prices is taken into consideration. CPLEX solver used empirically analyze real data from an group China, ship plan evaluated considering technical economic feasibility. Findings If increased optimal 90.40%, cost reduced 33.98%. Thus, should increase its capacity Panamax vessel approximately 82,000 DWT. Purchasing 5-year-old secondhand building new have good return indicators. Originality/value For engaging transporting bulk domestically suggested can provide reference universal application scale, given boundary conditions (including market) paper.