Slow Steaming, Extra Slow Steaming and Antitrust Exemption

A Supply Chain Digest article (January 13, 2011,http://www.scdigest.com/ontarget/11-01-13-1.php?cid=4091) describes discussions between shipping carriers that transport between Asia and the US to slow down speeds and decrease their environmental impact. Slow steaming reduces speed from 25 knots to 18 knots and is reported to save 60 % of fuel consumption, while extra slow steaming reduces speed to 12-16 knots and decreases costs even further.  But such discussions between carriers was just approved by the Federal Maritime Commission as part of an initiative to enable carriers to adopt steps to decrease their environmental impact.  Will the gains from such discussions across carriers outweigh the potential coordination across competitors ? Will such arrangements be required for supply chains to fully leverage environmental benefits ?

 

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About aviyer2010

Professor
This entry was posted in Collaboration, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , . Bookmark the permalink.

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