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Article
Publication date: 2 October 2018

Wei Yim Yap and Seyed Mehdi Zahraei

The liner shipping industry underwent a major round of change between 2014 and 2017 where the concentration ratio of the top ten carriers rose from 64 per cent in 2013 to 82 per…

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Abstract

Purpose

The liner shipping industry underwent a major round of change between 2014 and 2017 where the concentration ratio of the top ten carriers rose from 64 per cent in 2013 to 82 per cent by 2017. This paper aims to analyze the impact of these developments on the state of shipping connectivity for major container transshipment hubs in Southeast Asia, namely, Port Klang, Singapore and Tanjung Pelepas.

Design/methodology/approach

The developments in shipping services deployed before and after the latest round of reshuffling in the liner shipping industry were analyzed.

Findings

Significant service rationalization took place in the period that saw 38 per cent reduction in the number of shipping services called at the ports. Participation in alliance arrangement was revealed to be important for shipping lines to compete successfully on the Asia–Europe trade route in the new shipping landscape. Terminal operators should expect further rationalization of services should overcapacity persist. Maintaining hub status would require the ability to accommodate the strategic, operational and commercial requirements of the entire alliance rather than just focusing on the key shipping line.

Originality/value

This is the first paper to examine the effects of the latest round of consolidation in the liner shipping industry. In-depth analyses were conducted for shipping services where the service configuration was examined. The case of Southeast Asia and the Asia–Europe trade route was used to illustrate the impact with managerial and policy implications for shipping lines, terminal operators and port authorities.

Details

Maritime Business Review, vol. 3 no. 3
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 30 June 2016

Maxim A. Dulebenets

Emissions produced by oceangoing vessels not only negatively affect the environment but also may deteriorate health of living organisms. Several regulations were released by the…

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Abstract

Purpose

Emissions produced by oceangoing vessels not only negatively affect the environment but also may deteriorate health of living organisms. Several regulations were released by the International Maritime Organization (IMO) to alleviate negative externalities from maritime transportation. Certain polluted areas were designated as “Emission Control Areas” (ECAs). However, IMO did not enforce any restrictions on the actual quantity of emissions that could be produced within ECAs. This paper aims to perform a comprehensive assessment of advantages and disadvantages from introducing restrictions on the emissions produced within ECAs. Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure. Numerical experiments demonstrate that introduction of emission restrictions within ECAs can significantly reduce pollution levels but may incur increasing route service cost for the liner shipping company.

Design/methodology/approach

Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure.

Findings

Numerical experiments were conducted for the French Asia Line 3 route, served by CMA CGM liner shipping company and passing through ECAs with sulfur oxide control. It was found that introduction of emission restrictions reduced the quantity of sulfur dioxide emissions produced by 40.4 per cent. In the meantime, emission restrictions required the liner shipping company to decrease the vessel sailing speed not only at voyage legs within ECAs but also at the adjacent voyage legs, which increased the total vessel turnaround time and in turn increased the total route service cost by 7.8 per cent.

Research limitations/implications

This study does not capture uncertainty in liner shipping operations.

Practical implications

The developed mathematical model can serve as an efficient practical tool for liner shipping companies in developing green vessel schedules, enhancing energy efficiency and improving environmental sustainability.

Originality/value

Researchers and practitioners seek for new mathematical models and environmental policies that may alleviate pollution from oceangoing vessels and improve energy efficiency. This study proposes two novel mathematical models for the green vessel scheduling problem in a liner shipping route with ECAs. The first model is based on the existing IMO regulations, whereas the second one along with the established IMO requirements enforces emission restrictions within ECAs. Extensive numerical experiments are performed to assess advantages and disadvantages from introducing emission restrictions within ECAs.

Open Access
Article
Publication date: 15 September 2017

Günter Prockl, Aseem Kinra and Herbert Kotzab

Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that…

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Abstract

Purpose

Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that container carriers operate differently and follow different paths in their internationalisation development. Additionally, the degree of internationalisation, measured on the basis of sea-oriented operations, differs from that measured according to land-oriented front-end marketing and sales activities. The purpose of this study is to further examine the internationalisation patterns of shipping lines.

Design/methodology/approach

An examination of the front-end activities and the structures of leading container-shipping companies is conducted. The sales office networks of the sector’s 20 largest companies worldwide (by twenty-foot equivalent unit capacity) are analysed as key indicators. The numbers of sales offices are measured by analysing the websites of the sample (20 companies), as well as annual reports and other publicly available data sources.

Findings

The findings show that not all shipping companies are international, by virtue of the industry. While it is difficult to observe differences in the overall patterns of the sales networks at a macro level, some companies differ in their activities. The data set also shows that market share and total capacity are not necessarily good indicators of a carrier’s worldwide presence.

Research limitations/implications

This research is based on secondary data. Other important transactional and market-oriented considerations should be examined before drawing conclusions about the internationalisation of container-shipping companies and of the industry.

Originality/value

This paper contributes to the relevant existing research, particularly by adding its view on the demand-oriented criteria as suggested by Dunning and Lundan (2008).

Details

Maritime Business Review, vol. 2 no. 3
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Book part
Publication date: 24 September 2018

Abstract

Details

Metric Culture
Type: Book
ISBN: 978-1-78743-289-5

Content available
Article
Publication date: 29 December 2021

Takuma Matsuda, Enna Hirata and Tomoya Kawasaki

Since the 2010s, market conditions for container shipping companies have been deteriorating owing to decreasing container cargo trade and increasing supply capacity. This study…

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Abstract

Purpose

Since the 2010s, market conditions for container shipping companies have been deteriorating owing to decreasing container cargo trade and increasing supply capacity. This study aims to contribute to the empirical literature on the container shipping industry market structure. Specifically, this study aims to investigate the extent of market competition.

Design/methodology/approach

This study analyzes the market structure and evaluates the market power of shipping companies through a non-structural test.

Findings

The H-statistic for the entire period of 2004–2018 was 0.37, which is significantly different from zero. This indicates the absence of monopoly pricing throughout the entire period. For the time-phased estimates, the H-statistic between 2004 and 2008 is 0.15, which is not significantly different from zero. On the other hand, the H-statistic from 2009 to 2018 was 0.40, which differs significantly from zero.

Originality/value

As the Far East Freight Conference had released tariffs and charge rates by item for container shipping routes, monopolistic pricing is said to have appeared until the European Union abolished the European Economic Community (No. 4056/86) in 2008, before the economic crisis. However, this study indicates that pricing in the container shipping industry has been distinctly non-monopolistic; further, competition seems to have intensified since 2008. Industry competitiveness is of interest not only to academics but also to practitioners, including policymakers, especially when considering competition policies.

Details

Maritime Business Review, vol. 7 no. 4
Type: Research Article
ISSN: 2397-3757

Keywords

Open Access
Article
Publication date: 31 August 2014

Kateryna Grushevska and Theo Notteboom

The concept of ‘multi-port gateway region’ has been introduced by Notteboom (2010) and has been applied to important seaport markets such as Europe and Asia. However, the dynamics…

Abstract

The concept of ‘multi-port gateway region’ has been introduced by Notteboom (2010) and has been applied to important seaport markets such as Europe and Asia. However, the dynamics and port development patterns in secondary multi-port gateway regions, such as the Black Sea region, have received far less attention in academic literature. An empirical application of established spatial and functional development models to such secondary port regions might substantiate the external validity of these models as these ports operate in a different spatial, economic and institutional environment.

The aim of the paper is to characterize the spatial dynamics of container ports of the Black Sea multi-port gateway regions by testing the validity of established spatial models on port system development. Furthermore, the expected future evolution path for port hierarchy in the Black Sea basin is discussed. By doing so, the paper assesses to what extent the Black Sea port region is following an ‘expected’ development path as portrayed in a number of port system development models, or alternatively, can be characterized as an atypical port system following its own development logic.

Details

Journal of International Logistics and Trade, vol. 12 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Content available
Article
Publication date: 18 January 2024

Stefania Kollia and Athanasios A. Pallis

Container liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence…

Abstract

Purpose

Container liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence of vertically integrated liners and terminals. This study aims to explore the competition effects of this vertical integration trend based on a regional (European) analysis. In particular, it extracts lessons from the European Commission (EC) cases on the competition effects of vertical integration. The critical analysis of the cases examined at the institutional level intends to reach conclusions on whether liner–terminal vertical integration harmed or advanced competition in the relevant markets and/or the extent that there is a need to revise the current policy practices.

Design/methodology/approach

This study critically assesses the EC’s decisional practices in port container terminal vertical mergers in the last 25 years (1997–2021). Based on a literature review comparing maritime and competition economists' perspectives, it reviews the types of mergers examined, the methodology followed for relevant market definition and calculation of market shares and the estimated competition effects. The Hamburg–Le Havre area is the port range used as a case study for comparing the decisional practice with actual market developments. These container ports serve the greatest consuming market of final and intermediate goods in Europe and are gateways to Central and Eastern Europe.

Findings

The assessment identifies a need for expanding the investigation as a precondition for reaching conclusions on both the anti- and pro-competitive effects. First, only a limited number of transactions have been notified to the EC. Second, the empirical research identified a gap in this process, as there were no decisions (phase I) on vertical mergers between 2008 and 2016. Third, the exante assessment has not applied a phase II in-depth analysis to any case due to the absence of competition concerns. Finally, due to the absence of complaints, there is a lack of any ex post assessment of the effects of vertical integration.

Research limitations/implications

This assessment is important for understanding the current and emerging features of intra-port and inter-port competition and the potential effects that the continuation and expansion of liner companies' vertical integration strategies will have along maritime supply chains. It also contributes to the broader discussion on liner companies' strategies, such as the research and policy-making efforts around the globe to understand the impact of both vertical and horizontal integration.

Practical implications

These discussions are critical for a diversity of businesses that use liner shipping services or provide facilities and services to container shipping lines or ports. They are important for the interests of customers and consumers as they could inform any needed re-visiting of competition policy to protect from the dominance of any market developments that would lead to conditions limiting competition. Expanding analysis on the competition effects of non-notified mergers would help a better understanding of market changes.

Social implications

Enhancing competition and limiting monopolies is valuable from a consumer's perspective. This is more so in the case of maritime trade that serves the needs of societies. The study contributes by generating a better understanding of how decision-makers have worked towards that direction and what realignments are worthy.

Originality/value

There are no previous comprehensive reviews and analyses of the ways that policy-makers at the regional level have addressed the competition effects of vertical integration strategies of liner shipping companies when enhancing competition is valuable from a consumer perspective. Comparing maritime economists and competition, the study, via its literature review, also offers a comparison of maritime and competition perspectives on these competition effects, allowing positioning of how effective decisional-making practices have been.

Details

Maritime Business Review, vol. 9 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 16 March 2018

Owen Tang and Po-wan Sun

Antitrust exemptions to shipping alliances in the liner shipping sector have prevailed for many years. This study aims to examine anti-competition of ocean shipping alliances from…

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Abstract

Purpose

Antitrust exemptions to shipping alliances in the liner shipping sector have prevailed for many years. This study aims to examine anti-competition of ocean shipping alliances from a legal perspective of the USA, the European Union (EU) and People’s Republic of China (PRC).

Design/methodology/approach

Adopting the standard “doctrinal approach to legal research and analysis” in legal literatures, this paper reviews landmark court cases and legislations in the USA relating to shipping conference system from its beginning to its erosion, followed by its latest transition to non-ratemaking agreements, with discussions on the EU and some PRC treatments on shipping conferences.

Findings

Although antitrust exemptions to shipping conferences in the liner shipping sector were eliminated in the trades to/from the USA and the EU, there is a lack of evidence of the deterioration found in the viability of liner shipping carriers in both parts of the world trades. For the USA, shipping alliances will shift the focus to sharing resources for improvement of collective operational efficiencies, whereas the shipper groups in the EU have worried that a protected system of sharing information may lead to price fixing conducts among the carriers.

Practical implications

Through the discussions on the legal treatments of shipping conferences from the USA, the EU and PRC perspectives, this paper provides legal researchers with not only a new research direction on raising collective operational efficiencies through resource sharing but also an insight into shifting their research focus from purely price determination to the area of merger.

Originality/value

This paper reviews landmark court cases and related legislations about the treatments of different regulatory regimes, including the USA, the EU and PRC, to explore the illegitimacy of anti-competition conducts in ocean shipping alliances.

Details

Maritime Business Review, vol. 3 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 15 December 2017

Yi-Chih Yang and Han-Yu Lin

The four purposes of this study are to understand the development and the current status of Taiwan’s far seas longline tuna fisheries through a review of the literature and…

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Abstract

Purpose

The four purposes of this study are to understand the development and the current status of Taiwan’s far seas longline tuna fisheries through a review of the literature and interviews; to investigate the attitude of Taiwanese fishing vessel operators fishing in the Indian Ocean concerning the use of transportation under the influence of various factors; to analyze the relationship between changes in the transportation behavior of Taiwanese fishing vessel operators and various factors; and to provide suggestions to government and industry associations concerning the development of viable response strategies.

Design/methodology/approach

This paper uses methods including factor analysis and the analytic hierarchy process to analyze questionnaires collected from industry personnel and governmental personnel involved in the supply chain system of the longline tuna fishery in the Indian Ocean.

Findings

It is found that 16 assessment criteria in four major dimensions have major influence on the choice of cold chain transport. An assessment of all dimensions indicates that reefer ships are still the preferred means of transshipping frozen catch.

Originality/value

This paper seeks to investigate factors affecting choice of cold chain mode of transport from the perspective of Taiwanese companies operating longline tuna fishing vessels in the Indian Ocean, which are chiefly motivated by the need to reduce operating costs, and also looks at their choices of means of transport.

Details

Maritime Business Review, vol. 2 no. 4
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 8 June 2018

Hang Fa Tong and Hong Yan

This paper examines the possible cooperation options in terms of empty container repositioning across alliances for shipping lines based in the Greater China Region (China, Taiwan…

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Abstract

Purpose

This paper examines the possible cooperation options in terms of empty container repositioning across alliances for shipping lines based in the Greater China Region (China, Taiwan and Hong Kong SAR), after the three global shipping alliances reformed in April 2017.

Design/methodology/approach

This paper offers a comprehensive review to the latest shipping alliances and introduces a new cooperative dimension among shipping lines based in the Greater China Region which are member of different shipping alliances.

Findings

Cooperation among shipping lines in the Greater China Region in terms of empty container handling is possible in terms of resource sharing among shipping lines across alliances that fosters mega shipping line formation in the future.

Practical implications

Shipping lines should review their current empty container repositioning strategies and explore cooperation among non-alliance members having headquarters in proximity for quick responsiveness in empty container repositioning plan and execution.

Originality/value

This is a research directly analyzing the empty repositioning plan of the major shipping lines and their major service routes, fleet and containers.

Details

Maritime Business Review, vol. 3 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

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