Abstract

The purpose of this review is to summarize the existing literature on tramp shippingas to explain the current state of understanding on the optimization approaches adopted in such discipline. The review comes with critics to the current literature of tramp shipping optimization to guide the researchers where to go. One such criticalreview is in the operational planning of cargo mix selection. Currently, the optimal cargo mix is the one who contributes more to a grossprofit objective, assuming deterministic cargo transport demand. Since time varies considerably from one alternative ship voyage to another, a research work now exists which considers this objective less profitable than gross-profit-perday objective, assuming both deterministic and stochastic cargo transport demand. The cargo mix should be selected because of the higher gross profit it is expected to yield and the less number of days it takes to generate such profit. Another critical review is in the tactical planning of allocating ships to cargo trade areas. A research work now exists which considers the optimally allocated fleet to cargo trade areas as representing the cargo transport demand in these areas. Planner of utilities in a cargo trade area such as ports, canals, and straits can re-optimize this allocation in different what-if scenarios to fix prices of utility services; e.g., different cargo freights and quantities. A third critical review is in the strategic planning ofappraising new ships. A research work now exists which considers the new ship as a fleet unit when the fleet is optimally allocated to cargo trade areas. The gross profit and other cash flow items of the new ship can then be identified for each year of its lifetime. Three net present values can be generated: one for optimistic,most likely, and pessimistic cargo-transport demand forecast.