Short sea shipping cost benefit analysis using mathematical modeling

With congestion, environmental Impact, and the price of oil becoming topics that influence businesses and individuals in a daily basis, measures need to be undertaken in order to accommodate the growing demand for freight transportation. By directing many of the trucks travelling along the National Highways Systems to the Marine Highway corridors developed by the U.S. Maritime Administrations, many of the problems can be addressed in the Short and Medium terms. In order to do so, Short Sea Shipping, through the use of Ro/Ro (Roll-on/Roll-off) Vessels, needs to be implemented. Although the environmental and congestion reducing benefits are considerable, the profitability of this transportation mode needs to be considered. A cost benefit analysis can determine the margin of profit, and attract investors and businesses. By developing a mathematical model that accounts the costs associated with transporting trucks along a particular corridor, the competitiveness of Short Sea Shipping can be determined.