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Book part
Publication date: 12 January 2012

Ada Suk Fung Ng

This chapter explains the impact containerisation has on the various partners of the global supply chain and the challenges companies encounter and the solutions they use in…

Abstract

This chapter explains the impact containerisation has on the various partners of the global supply chain and the challenges companies encounter and the solutions they use in dealing with empty container repositioning.

The phenomenon of imbalanced container flows and its impact on shipping lines, shippers, container haulage companies, port development and the economy are presented. Special attention is given to explain the many solutions companies use to reduce the impact of empty container repositioning, hence tracing out the past research that led to these solutions and pointing to potentially new research directions in the future.

Because of the widespread use of containerisation and the imbalanced container flows that results from globalisation, empty container repositioning will be an ongoing issue for the maritime logistics industry. Many solutions are being used, but there is room for improvement and more research is needed.

Empty container repositioning is an important issue but has not been deemed as such in the literature. This chapter explains the reasons it is important and that its impact is not limited to shipping lines only but affects the whole supply chain.

Open Access
Article
Publication date: 30 January 2004

Jess Browning and Seung-Hee Lee

The Incheon Region has numerous assets that fall within a Pentaport model.' These include the Incheon International Airport, the Port of Incheon, a coastal industrial park, free…

Abstract

The Incheon Region has numerous assets that fall within a Pentaport model.' These include the Incheon International Airport, the Port of Incheon, a coastal industrial park, free economic zones, a leisure port, and Songdo new town designed to be the future Silicon Valley of Korea. This paper looks at how Northeast Asia trade flows between China and Korea might be enhanced by application of the Pentaport model in making the Incheon region a North East Asian Hub. It looks also at their trade and logistics systems as well as their water borne commerce. It proposes an integrated transportation system for the Yellow Sea Region being beneficial to the economies of the Northeast Asia. It also stresses that innovative technologies for ships, terminals and cargo handling systems should be introduced to develop a competitive short sea shipping system in the region and cooperation among the regional countries will be essential to achieve the final goal. The potential of methods of container shipping is discussed as it might apply to short sea shipping in the Yellow Sea Region that could greatly facilitate Incheon's situation with respect to the broader region in application of the Pentaport model.

Details

Journal of International Logistics and Trade, vol. 1 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

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…

3363

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

Article
Publication date: 18 January 2013

Ching‐Chiao Yang and Hsiao‐Hsuan Wei

The aim of this study is to empirically identify crucial dimensions of security management in the container shipping sector in Taiwan and assess their impacts on security…

4564

Abstract

Purpose

The aim of this study is to empirically identify crucial dimensions of security management in the container shipping sector in Taiwan and assess their impacts on security performance.

Design/methodology/approach

Data for this study were collected by questionnaire survey. An exploratory factor analysis was performed to identify crucial security management dimensions in the container shipping sector. Multiple regression analysis was then performed to examine the effect of security management on the security performance.

Findings

Four crucial security management dimensions were identified: facility and cargo management; accident prevention and processing; information management; and partner relationship management. Multiple regression analysis revealed that information management and partner relationship management had significant positive effects on safety performance, whereas partner relationship management had a significant positive effect on customs clearance performance.

Research limitations/implications

This study primarily focuses on the effect of security management on security performance. Future research could identify the drivers and barriers to comply with supply chain security initiatives.

Practical implications

Container shipping firms can improve safety and customs clearance performance by focusing security management efforts on facility and cargo management, accident prevention and processing, information management, and partner relationship management.

Social implications

Government administrators or other authorities may want to consider using crucial container shipping security management dimensions as criteria for assessing security performance in container shipping firms.

Originality/value

This study presented is the first to assess the effect of security management on security performance in the container shipping sector. Particularly, partner relationship management is found to be the key dimension for supply chain security success.

Article
Publication date: 17 May 2013

Jing‐Xin Dong, Jingjing Xu and Dong‐Ping Song

Empty container repositioning is an important issue in the liner shipping industry. Generally stated, two groups of mathematical models have been proposed to tackle this issue…

1775

Abstract

Purpose

Empty container repositioning is an important issue in the liner shipping industry. Generally stated, two groups of mathematical models have been proposed to tackle this issue. The first group aims to derive time‐dependent origin‐destination matrices that specify the number of empty containers to be repositioned at a decision epoch; the second group aims to develop effective state‐feedback control policies consisting of dynamic decision‐making rules. There is, however, a lack of research into the comparison of these two groups, especially with regard to realistic cases subject to uncertainties. The purpose of this paper is to evaluate and compare the performances of some typical repositioning policies from these two groups and to shed light on their relative merits and suitability in various realistic scenarios.

Design/methodology/approach

Based on a literature review, the paper classifies the current empty container repositioning policies into two categories: origin‐destination (OD) based solutions and state‐based dynamic rules. Typical policies are selected from these two categories and then evaluated using a simulation tool. A range of scenarios are designed based on realistic cases considering the stochastic and dynamic nature of liner services. A comprehensive set of simulation experiments are conducted and analysed; and the relative merits and suitability of the repositioning policies are identified.

Findings

Through a carefully designed comparative study, several research findings are obtained with regard to how the performances of different types of empty container repositioning policies are affected by various factors such as structure of service route, uncertainty of daily demands, and parametric optimisation methods.

Originality/value

The study makes a good attempt to analyse the suitability of different empty container repositioning policies in different scenarios. This is an area that has lacked investigation. The research findings can help shipping companies and other relevant stakeholders better understand the relative merits of different empty container repositioning policies and better tackle the challenges in operating the container shipping system.

Details

The International Journal of Logistics Management, vol. 24 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Content available
Article
Publication date: 19 July 2022

Phong Nha Nguyen and Hwayoung Kim

This study aims to identify the characteristics of the maritime shipping network in Northeast Asia as well as compare the level of port connectivity among these container ports in…

Abstract

Purpose

This study aims to identify the characteristics of the maritime shipping network in Northeast Asia as well as compare the level of port connectivity among these container ports in the region. In addition, this study analyses the change in role and position of 20 ports in the region by clustering these ports based on connectivity index and container throughput and route index.

Design/methodology/approach

This study employs Social Network Analysis (SNA) to delineate the international connectivity of major container ports in Northeast Asia. Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is used to identify each port's connectivity index and container throughput index, and the resulting indexes are employed as the basis to cluster 20 major ports by fuzzy C-mean (FCM).

Findings

The results revealed that Northeast Asia is a highly connected maritime shipping network with the domination of Shanghai, Shenzhen, Hong Kong and Busan. Furthermore, both container throughput and connectivity in almost all container ports in the region have decreased significantly due to the coronavirus disease 2019 (COVID-19) pandemic. The rapid growth of Shenzhen and Ningbo has allowed them to join Cluster 1 with Shanghai while maintaining high connectivity, yet decreasing container throughput has pushed Busan down to Cluster 2.

Originality/value

The originality of this study is to combine indexes of SNA into connectivity index reflecting characteristics of the maritime shipping network in Northeast Asia and categorize 20 major ports by FCM.

Details

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

Keywords

Open Access
Article
Publication date: 30 June 2007

Peter J. Rimmer and Paul T.W. Lee

As the Malacca and Singapore Straits are part of the shortest route between Europe and Asia any impedance to shipping has serious commercial and strategic repercussions. What…

Abstract

As the Malacca and Singapore Straits are part of the shortest route between Europe and Asia any impedance to shipping has serious commercial and strategic repercussions. What would be the consequences to tankers and container shipping if access was restricted or prevented? This issue is addressed by examining the costs of using alternative tanker routes to the Straits and the flow-on consequences of removing a mega-hub port from the container-shipping network. The analysis highlights differences between tanker shipping, where the ship itself is the prime unit of interest, and container shipping, where the door-to-door network is of paramount importance.

Details

Journal of International Logistics and Trade, vol. 5 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 31 December 2020

Cheng-Wei Lin, Wan-Chi Jackie Hsu and Hui-Ju Su

The shipper selects a suitable shipping route and plans for a voyage in order to import and export cargo on the basis of published sailing schedules. The reliability of the…

Abstract

The shipper selects a suitable shipping route and plans for a voyage in order to import and export cargo on the basis of published sailing schedules. The reliability of the sailing schedule will influence the shipper’s logistics expense, which means that the logistics costs will depend on the reliability of schedules published by container shipping companies. Therefore, it is important to consider factors which can cause delays would for container ships sailing on sea routes. The reliability of published sailing schedules can be affected by a number of different factors. This study adopts the multi-criteria decision making (MCDM) method to estimate the importance of the delaying factors in a sailing schedule. In addition, the consistent fuzzy preference relations (CFPR) method is applied to identify the subjective importance (weights) of the delaying factors. The entropy weight method combined with the actual performance of the container shipping company are both used when estimating the objective importance (weights) of the delaying factors. According to the analysis results, the criteria can be divided into four quadrants with different management implications, which indicate that instructions for chase strategy, sailing schedule control, fleet allocation, transship operation arrangement and planning for ports in routes are often ignored by container shipping companies. Container shipping companies should consider adjusting their operational strategies, which would greatly improve their operational performance.

Details

Journal of International Logistics and Trade, vol. 18 no. 4
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 17 May 2013

Robert Mason and Rawindaran Nair

The purpose of this paper is to explore the extent to which supply side flexibility tactics are deployed by operators in the container liner shipping sector in 2009/200 to…

2611

Abstract

Purpose

The purpose of this paper is to explore the extent to which supply side flexibility tactics are deployed by operators in the container liner shipping sector in 2009/200 to restrict supply in a market which is characterised by over‐supply (as well as under demand).

Design/methodology/approach

Taking a case study approach using the Far East‐Europe trade lane, secondary data are reviewed for each type of internal flexibility capability. This is supplemented by a qualitative Delphi‐based research method so that findings are iteratively verified with leading practitioner personnel.

Findings

In 2009, directly after the severe imbalance between demand and supply emerged, liner shipping providing companies were only partially able to exploit the flexibility tactics that were available to them. This improved in 2010 and contributed to an upturn in performance.

Research limitations/implications

Ocean freight logistics provides a vital foundation for contemporary international commerce. However, the viable provision of this service has become significantly more challenging and this research examines why this is the case and what supply side responses are being deployed. Taking a case study approach focussing on 2009/2010 restricts the generalisability of the research that could now be examined on a longer time scale across the whole sector.

Originality/value

This research is novel as there has been no previous research which has looked at the deployment of supply side flexibility tactics in the container liner shipping sector. The findings have considerable bearing on how the industry is run and understood by its providers, customers and regulators.

Details

The International Journal of Logistics Management, vol. 24 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Content available
Article
Publication date: 29 April 2020

Po-Lin Lai, Dong-Taur Su, Hui-Huang Tai and Ching-Chiao Yang

The increasing demand for high-quality logistics services has forced container shipping firms to decrease logistics service failure to retain the customers. This study thus aims…

4229

Abstract

Purpose

The increasing demand for high-quality logistics services has forced container shipping firms to decrease logistics service failure to retain the customers. This study thus aims to apply organizational information processing theory (OIPT) to construct a maritime supply chain collaborative decision-making model and examine its impact on logistics service performance.

Design/methodology/approach

In total, 142 usable questionnaires were collected from questionnaire survey. A two-step structural equation modeling approach including confirmatory factor analysis was subsequently performed to test the hypotheses.

Findings

The results show that internal information integration positively impacts external information integration, that external information integration positively impacts collaborative decision-making, and that collaborative decision-making positively impacts logistics service performance for container shipping firms. However, a relationship between internal information integration and collaborative decision-making was not found in this study.

Research limitations/implications

This study primarily examines collaborative decision-making from the view of container shipping firms. Future research including other supply chain members is needed to generalize the results and could also incorporate other factors such as relationship quality and culture, into the model to address this issue.

Practical implications

To decrease the occurrence of logistics failures and improve service quality in the maritime logistics process, it is suggested that container shipping firms apply information technology for acquiring and assimilating logistics information internally and externally across the supply chain to facilitate decision-making.

Originality/value

This study contributes to the knowledge about the antecedents and impacts of collaborative decision-making for container shipping firms in Taiwan. Particularly, in line with OITP, the findings indicate that container shipping firms can facilitate logistics decision-making and strategy formulation through information integration, which in turn enhances logistics service performance.

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