Optimizing Multi‐Fuel Operations for Green Container Shipping: Models, Analysis, and Solution Approach

This study investigates the optimization of multi‐fuel operations for container shipping in the context of evolving environmental regulations. Faced with increasing pressure to reduce emissions, particularly of sulfur oxides and carbon dioxide, the maritime industry must navigate a complex regulatory landscape in terms of energy use. Key policies include Sulfur Emission Control Areas, the European Union's (EU) Maritime Emissions Trading System, and the FuelEU Maritime Regulation. We propose a novel mathematical programming model to minimize total operational costs, including fuel and carbon emission costs, while maintaining regulatory compliance. Our model integrates three fuel types (very low‐sulfur fuel oil, marine gas oil, and renewable energy) to determine optimal fuel selection and sailing speed in different regulatory zones. To reduce computational complexity, we transform the model from a shipping leg‐wise formulation to a segment type‐wise formulation by categorizing all shipping legs of a route into six segment types, leading to a more efficient representation. Through a comparative analysis of the cost competitiveness and environmental effectiveness of the three fuel types, we derive four possible fuel selection strategies that determine the candidate or optimal fuel types for each segment type. We then develop an exact condition‐based sequential optimization algorithm to evaluate the feasibility of each strategy and identify a globally optimal multi‐fuel operations solution for a given container shipping service. Extensive computational experiments validate the efficacy of our approach, offering practical insights for shipping companies to strategically manage multi‐fuel operations and achieve cost‐efficiency while complying with environmental mandates.