Steaming

Fuel efficiency

Theoretical physics

Engineering

Materials science

Marine engineering

Noon

Economics

Third law

Computer science

Food science

Geology

Oil consumption

Waste management

Thermodynamics

Physics

Elasticity (physics)

Econometrics

Automotive engineering

Environmental science

Fuel oil

Composite material

Chemistry

Atmospheric sciences

Aeronautics

Transportation Research Part E Logistics and Transportation Review

We develop a flexible framework for the estimation of the fuel consumption-speed curve for ships which allows for speed-dependent elasticity with endogenous thresholds. Using a large dataset of noon reports for 16 crude oil tankers, we estimate the corresponding elasticities net of weather effects. Our empirical findings confirm that the classical cubic law for fuel consumption is valid only near the design speed but also that the sensitivity with regards to sailing speed can be substantially lower at the sailing speeds actually observed. Our results can be used to question the economic and environmental benefits of slow-steaming and fuel levies.

Optimal ship speed and the cubic law revisited: Empirical evidence from an oil tanker fleet