Competitiveness of the China-Europe Railway Express and liner shipping under the enforced sulfur emission control convention

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Competitiveness of the China-Europe Railway Express and liner shipping under the enforced sulfur emission control convention

Lian, Feng / He, Yunzhu / Yang, Zhongzhen

Highlights • The liner shipping and China-Europe Railway express between China and Europe are targeted. • The enforced sulfur emission convention of the IMO is taken as the background. • The added cost of liner shipping companies due to the adoption of the measures is estimated. • Transported commodities between China and Europe are clustered into 9 groups. • The effects of the enforced sulfur emission convention on the sulfur and CO2 emissions in China-Europe freight market are forecasted.

Abstract The sensitivity of the pass-through ratio of the added costs due to the enforced sulfur emission cap of liner shipping as extra fare for shippers and rail operation frequency on the competitiveness of China-Europe railway express (CER-express) and liner shipping for cargo transportation between China and Europe is analyzed. The objective is to lay a theoretical basis for liner companies to optimize the pass-through ratio for maximizing shipping profit, for CER-express to determine an expected operation frequency and for IMO to understand the effects of the enforced sulfur emission cap when CER-express is available.