Alternative Fuel Selection Framework toward Decarbonizing Maritime Deep-Sea Shipping

Abstract

Globally, deep-sea shipping is one of the most indispensable form of commercial transportation services. There are considerable repercussions affecting the shipping environment caused by the rise in deep-sea vessel operations. Shifting toward eco-responsible fuel alternatives might be a plausible option for mitigating these adverse effects on the environment. However, alternative fuel selection is a complex process that depends on shipping type, multiple stakeholders’ involvement, and numerous social, environmental, and economic criteria. The baseline of such decision-making involves firm-level decision-makers who must operate ships while maintaining profitability and while complying with regulatory legislation and sustainability dimension. Therefore, firm-level decision-maker perspectives might differ significantly from other industry stakeholders (i.e., government and classification society). Particular attention must be paid to the alternative fuel selection issue from the standpoint of the ship owner and shipping company management. The current research intends to use a multi-criteria analysis as a decision-support tool for the alternative fuel selection problem in deep-sea commercial shipping on the international waterway. The proposed technique considers environmental, technological, and economic factors and ensures an exclusive focus on stakeholders at the firm-level decision-making capacity. The priority ranking of the alternatives selection criteria is based on the technique for order performance by similarity to the ideal solution (TOPSIS). Implementing this strategy considers the participation of firm-level stakeholders by analyzing each alternative’s criterion weights and performance concerning each criterion. The technique is applied to the case study of Singapore-based firms. The results demonstrated that the most important criteria with regard to an optimal alternative selection for shipping firm-level stakeholders are technological aspects, technology status, expenditures, ecosystem impact, and health-safety considerations. These results provide a foundation for decision-makers to comprehend the ship management’s priorities and interests in choosing alternative fuels. The conclusions of this analysis, the first of its kind in this field, can provide a solid foundation for strategic planning.