Oil-product seaborne distribution in Vietnam on the way to the global integration

Abstract

The global oil demand contraction as well as the oil supply increase has made the world oil price plunge markedly in recent years. The cost reduction in oil-product shipping contributes significantly in reducing the damage loss of national and international maritime transport companies. Problems and their solutions for reducing transportation costs and increasing profits coming from the seaborne distribution have risen in the scientific literature. Planning problems on the strategic, tactical and operational levels are high on the agenda in developed countries but still limited in application in the developing countries. The research aims at identifying strategic, tactical and operational scheduling problems to oil-product shipping distribution in the country bordering the South-East Asia Sea that still faces a backlog on ship routing and scheduling. Proposals for a model with a decision support system that is able to decrease the seaborne ballast time of vessels and to optimise the cargoes’ amount loaded or discharged at oil-product terminals for Vietnam waterways are the crucial findings of the research. The results not only serve the oil-product charterers, cargoes owners, and consumers but also aim at encouraging the national policy-makers as well as the international shipping companies to consider investment opportunities in the oil downstream sector.