Modeling Crude Oil Lightering in Delaware Bay

Crude oil destined for Philadelphia-area refineries is transferred to lighters from the tankers in Delaware Bay because the channel in the Delaware River is too shallow for fully loaded tankers. We developed a simulation model for studying the effects of various policies on service levels. The results were used by Maritrans, the provider of the lightering services, and its largest customer to examine ways in which they could improve their working relationship. Although the customer valued Maritrans' services, it was considering alternative lightering solutions and most seriously considering doing its own lightering. The results of the model provided a deeper understanding of the role of lightering in the customer's crude-oil logistics system, showing that acquiring a separate fleet would be costly and allowing both parties to evaluate other alternatives for reducing costs and improving response times.