Master of Science in Business Analytics
Master of Science in Business Analytics
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Projects
2021-2022
Maersk Ocean Freight Operations & the Effect on Carbon Emissions
Student Team
Naomi Aquino, Ashley Chen, Pedro Cruz, Kalyn Inzunza, Alanis Leiva, Nancy Tran
Faculty Advisors
Dr. Mohamed Gomaa, Dr. Hyounae Min
Purpose
The shipping industry is anticipated to undergo significant growth in the upcoming decade and carbon emissions from companies within this industry are expected to follow accordingly. By studying the factors that contribute to carbon emissions, this project aims to provide information to key stakeholders that can be leveraged to make informed business decisions to align with Maersk and their environmental goals.
Study Design/Methodology/Approach
Using data from the EMSA EU-MRG system on carbon emission reports for the years of 2018-2020, XGBoost and Random Forest Regression models were deployed in Python to predict future carbon emissions. Additionally, PowerBI was used to determine which ships and underlying factors contributed the most to carbon emissions.
Findings
When analyzing predictions for 2021, there was a decrease in emissions which was not the initial expected outcome. In addition, findings identified container ships to be the largest contributors to carbon emissions across various ship types. Underlying factors that contributed the most emissions were identified to be distance and total time at sea, which were in line with the initial hypothesis for the analytics objective.
Originality/Value
Suggestions for future research include broadening the scope of data collection to enhance the regression model and potentially yield more accurate predictions. Recommendations were provided to Maersk to collect operational and laborcapital data to create predictive models using time series regression to plan operations around forecasted emissions data. As a result of implementing these future research steps, Maersk will benefit from creating key performance indicators and metrics that will support their efforts to reduce emissions gradually.
Practical Implications
Recommendations to Maersk were derived to support the company’s initiatives towards net-zero operations. An alternative fuel source that can replace HFO’s one-to-one without disrupting operations and producing mechanical failures is LNG until further research is completed for alternatives. Maersk should utilize more efficient shipping operation tactics to reduce emissions such as slow steaming and allocating ships to alternative ports. The company can also use carbon credits to offset any remaining carbon emissions to meet their goals of net-zero emissions.
Keywords
Carbon Emissions, Maritime, XGBoost Regression, Random Forest Regressor, Maersk Shipping Industry