Cost benefit analysis of dynamic route planning at sea

Route optimization through dynamic route planning, where ships can shorten their routes taking other vessels movements into account through shared information, has a potential to make transportation at sea more efficient. Fuel and emissions can be saved through green steaming without increased cargo transit times, and without reducing safety. This study estimates the potential net benefits to society in major areas in the Baltic Sea and the North Sea. It is found plausible that routes can be shortened by one percent on average, which would reduce costs to society by 80 million euros per year, of which 35 percent are reduced fuel costs and 65 percent are reduced emission costs. Alternative unit values of emissions give an interval of 55 to 113 million euros in benefits. The projects costs are estimated at 15 million euros per year. With a growing world trade, the potential for more efficient and environmentally friendly sea transportation through dynamic route planning may be substantial. (C) 2016 The Authors. Published by Elsevier B.V