Evaluation of coaster ship profitability considering ship characteristics

Maritime transport, which carries over 80% of global trade, is a cornerstone of the world economy, yet it faces rising challenges from volatile freight markets, cost pressures, and environmental regulations. Understanding and managing costs at the ship level is therefore critical for the sustainability and competitiveness of maritime transport companies. This thesis investigates the efficiency and profitability of tramp shipping fleets by applying Data Envelopment Analysis (DEA), a non-parametric method widely used to evaluate efficiency across multiple inputs and outputs. While DEA has been applied extensively in liner shipping and port performance studies, its application to tramp shipping remains limited. The study develops a DEA model that evaluates vessel performance using variables such as ship age, tonnage, operating costs, cargo carried, and time charter equivalent (TCE). By comparing vessels within the same fleet, the model identifies which ships operate efficiently and which underperform, offering insights into cost structures and operational effectiveness. The findings provide shipping managers with a decision-support tool for fleet deployment, investment, and ship acquisition strategies, while also highlighting the impact of market dynamics and regulatory pressures on cost management. This research contributes to the maritime economics literature by filling a gap in efficiency measurement within tramp shipping and demonstrates how DEA can support strategic decision-making in an increasingly complex and competitive shipping environment. Keywords: maritime transport, tramp shipping, data envelopment analysis, maritime transport costs, ccr.