A Linear Programming Model for Short Sea Shipping in the USA

Congestion, environmental impact, and fuel costs are factors that influence transportation decisions in both business and personal actives. As economies develop, transportation networks must adjust to accommodate the growing demand for freight transportation. Solutions that exploit underutilized transportation modes may be the best opportunity for minimal-impact growth. For example, redirecting freight that would otherwise be shipped on along the I-95 east-coast highway corridor to the east-coast marine highway corridors, would utilize untapped capacity. Necessarily, Short Sea Shipping, through the use of Ro/Ro vessels must be implemented in a cost-competitive manner. The environmental and congestion reducing benefits are considerable, however for the mode to gain acceptance, this transportation mode must at the same time be both competitive and profitable. A cost benefit analysis can estimate a projected profit margin and attract potential investors and businesses. By developing a mathematical model, the competitiveness of Short Sea Shipping is determined. The study finds that Short Sea Shipping can be both competitive and profitable when vessels carry 1,400 trailers over a distance of approximately 1,000 miles.