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 D elaware River is too shallow for fully loaded tankers. We developed a simulation model for studying the effects of various policies on servi ce levels. The results were used by Maritrans, the provider of the lig htering services, and its largest customer to examine ways in which th ey could improve their working relationship. Although the customer val ued Maritrans' services, it was considering alternative lightering sol utions and most seriously considering doing its own lightering. The re sults of the model provided a deeper understanding of the role of ligh tering in the customer's crude-oil logistics system, showing that acqu iring a separate fleet would be costly and allowing both parties to ev aluate other alternatives for reducing costs and improving response ti mes.