Topic > Shell Shipping Shipping Case Study - 544

Shell Shipping Oil and gas exporting countries depend on shipping. Shell has a shipping organization in London and specialist centers in Houston, The Hague, Singapore, Perth and Tokyo. Shell converts the gas into a liquid form called liquefied natural gas (LNG) and transports it around the world via ships. Shell is the largest LNG transport operator. Shell operates 50 of the world's 370 LNG carriers. Scheduling Issues There may be cases where Shell employs other companies' vessels to transport its cargo, and there may be cases where other companies using the Shell terminal import/export goods for their own needs. Several scheduling problems are observed in shipping operations. Many times ships have to wait in port before being able to dock due to unavailability of space. Below are the financial implications for ships that have to wait in Anchorage before they can dock. Case 1 - The Shell ship itself: • On average, a 12,000 ton oil tanker would incur a daily operating expense of between 6,000 and 8,000 dollars per day, excluding fuel costs. • Apart from the financial implications mentioned here...