The implication of the stochastic gross-profit-per-day objective on the cargo ship profitability, capacity, and speed. Issue 3 (16th September 2019)

• Record Type: Journal Article
• Authors: El Noshokaty, Said
• Is Part Of: Maritime business review. Volume 4:Issue 3(2019)
• Page Start: 274
• Page End: 297
• Publication Date: 2019-09-16
• Subjects: Stochastic optimization -- Gross profit-per-day objective -- Ship capacity -- Ship profitability -- Ship speed; Shipping -- Periodicals; 387.5
• DOI: 10.1108/MABR-04-2019-0016
• Languages: English
• ISSNs: 2397-3757

Abstract

Abstract : Purpose: This paper aims to study the implication of the stochastic gross-profit-per-day objective on the ship profitability and the ship capacity and speed. Design/methodology/approach: The paper has used the mathematical model and the solution methodology given by El Noshokaty, 2013, 2014, 2017a, 2017b, and SOS, 2019. Findings: The paper finds that if the ship owner follows the rate concept and the cargo demand forecast, he can improve the profitability of his company and be able to select the proper capacities and speeds for the ships used. Research limitations/implications: The findings are not only useful for the shipping or other cargo transport companies but also for businesses like gas reservoir development, car assembly lines in the industry, cooperative farming and crop harvesting in agriculture, port cargo handling in trade and road paving in construction. Originality/value: The contribution of this paper lies in notifying the ship owners of the possible profitability improvement and the consequences of building ships of larger capacities and slower speeds.