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Ships actually use very precise algorithms to calculate the relative cost of labor vs. inventory getting delayed, using factors like the depreciation of the cargo, the spot price of fuel, and even changing interest rates in the market.

Oil tankers in the middle of the ocean, for example, will speed up and slow down as spot prices of oil increase or short-term interest rates decrease, since the inventory cost of their cargo has gone up and then down.




oil tankers will sometimes even park themselves out in the ocean for weeks in order to not burn fuel while waiting for the projected price of their cargo to be optimal at the time they actually steam into port. Oil tankering optimization is a very complex and interesting problem!


This sounds very interesting! Do you recommend any articles to read on the topic?


That's absolutely fascinating. Do you have a source for further reading on those optimizations? I haven't been able to find anything with a bit of googling.


This page has a link to an Excel spreadsheet that calculates optimum speed as a function of fuel price and other factors: http://www.intertanko.com/Members-Information/benchmark/Opti...


Unfortunately, most of the papers I found by googling are behind paywalls :(


I for one would still appreciate a link - I think those of us on academic networks should be able to see most papers behind paywalls


Google for "oil tanker algorithms"




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