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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…

3375

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: 11 June 2018

Vinh Thai and Ferry Jie

The purpose of this paper is to investigate the influences of total quality management (TQM) and supply chain integration (SCI) practices on firm performance (FP) of container

2159

Abstract

Purpose

The purpose of this paper is to investigate the influences of total quality management (TQM) and supply chain integration (SCI) practices on firm performance (FP) of container shipping industry in Singapore.

Design/methodology/approach

A survey was conducted with 159 container shipping companies in Singapore to examine the interrelationships between SCI and TQM practices and FP. A stepwise multiple regression analysis using SPSS version 14.0 was performed on the data.

Findings

Statistical results suggest that both TQM and SCI practices have positive effects on service quality and FP but at different extents, while TQM also contributes positively to SCI.

Research limitations/implications

The small sample is the main limitation. The findings bear important implications for further research as understanding these dimensions can help to position key changes and industry improvement that will increase revenue and reduce cost to the container shipping companies in Singapore.

Practical implications

This research provides guidelines for shipping managers on how to implement the SCI and TQM practices appropriately to boost their FP to the fullest extent.

Social implications

This study has unique implications for social sustainability especially the container shipping industry, which is hard pressed to combat the challenges within the logistics/transportation sector.

Originality/value

This is perhaps the first study that examines the influence of SCI and TQM practices on the performance of container shipping firms that helps them see beyond the silo mentality and focus on greater value addition in FP.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 30 no. 3
Type: Research Article
ISSN: 1355-5855

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

Article
Publication date: 16 October 2017

Gökcay Balci and Ismail Bilge Cetin

Container shipping is a standardized business-to-business service market where carriers need to stay customer focused to survive. Market segmentation is an ideal solution to…

3145

Abstract

Purpose

Container shipping is a standardized business-to-business service market where carriers need to stay customer focused to survive. Market segmentation is an ideal solution to develop customized marketing programs for each segment, but container lines need personalized marketing programs for each customer. Hence, the purpose of this study is to develop a segmentation framework that can help container lines to profile each customer more efficiently considering their needs, strategic importance and demographics.

Design/methodology/approach

This study has adopted an exploratory approach. Semi-structured interviews were conducted with managers of container lines.

Findings

Segmentation bases are the type of customer, container volume, loyalty, seasonality, decision maker, the industry of shipper, cargo characteristics, container type, destination region and export/import. Market segmentation in container shipping can be helpful in developing effective customized marketing offering, including effective price discrimination and customized marketing communications.

Practical implications

A port-specific segmentation approach was adopted and a flexible segmentation framework was proposed for container lines to adapt in different hinterlands.

Originality/value

Unlike the literature, this study suggests market segmentation can be very helpful in customized marketing in business-to-business services like container shipping industry. This study also suggests port-specific market segmentation for container lines instead of route-specific.

Details

Management Research Review, vol. 40 no. 10
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 11 May 2015

Po-Hsing Tseng and Chun-Hsiung Liao

The purpose of this paper is to use a theoretical framework (i.e. resource-based view) to investigate causal relationships between the supply chain integration, market…

5099

Abstract

Purpose

The purpose of this paper is to use a theoretical framework (i.e. resource-based view) to investigate causal relationships between the supply chain integration, market orientation, information technology (IT) application and firm performance of container shipping firms in Taiwan.

Design/methodology/approach

The data are collected from 124 container shipping firms in Taiwan. The methodologies used in the paper are exploratory factor analysis, confirmatory factor analysis and structural equation modeling.

Findings

The findings indicated that IT application and market orientation positively influence supply chain integration. It revealed that IT-based and market-oriented firms more easily integrate market information related to partners, departments and customers. Further, supply chain integration and market orientation have a positive effect on firm performance.

Research limitations/implications

Such a result indicated a market-oriented firm quickly responds to market information and competitors’ strategies; and thus, it would make effort to offer satisfactory customer services in dynamically fluctuating markets, and obtain better firm performance. Also, the integration provides higher operation efficiency and obtains an enhanced performance improvement.

Practical implications

The results also indicated that firms are able to develop their market-oriented strategies through electronic information transmission and exchange platform. Based on the study’s findings, managerial strategies are proposed to improve firm performance.

Originality/value

This paper clarifies the concept of supply chain integration, market orientation and IT application in the context of container shipping, and investigates the inter-relationship between supply chain integration, market orientation, IT application and firm performance and develop a conceptual model in the context of container shipping.

Details

The International Journal of Logistics Management, vol. 26 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Book part
Publication date: 12 January 2012

Thomas Pawlik, Philine Gaffron and Patric A. Drewes

This chapter discusses the concept of corporate social responsibility (CSR) within the context of the container liner shipping industry. It looks at the current practice of CSR in…

Abstract

This chapter discusses the concept of corporate social responsibility (CSR) within the context of the container liner shipping industry. It looks at the current practice of CSR in this industry and outlines the framework, the reasons and the drivers for companies to adopt and implement a CSR strategy. These include, among others, the increasing commitment to fostering CSR in the private sector at EU level, the changing expectations of customers — that is shippers — with regard to social and environmental standards of their contractors and suppliers, and the improving situation with regards to guidance and tools for adopting CSR and identifying and implementing the relevant measures (e.g. ISO 26000 and the European Commission's communication on CSR). The authors take the position that in an industry, which is as strongly consolidated as container liner shipping, the adoption and implementation of effective CSR strategies by a few companies at the top can have a profound impact on the industry as a whole. The Japanese NYK Group's CSR strategy is discussed in more detail to illustrate one of the best — if by no means perfect — examples in the current market. The chapter closes with a sector-specific definition of CSR for the container shipping industry.

Article
Publication date: 11 May 2015

Chia-Hsun Chang, Jingjing Xu and Dong-Ping Song

The purpose of this paper is to explore and analyse the risks in container shipping operations from a logistics perspective. In the paper, risks associated with the three flows in…

3994

Abstract

Purpose

The purpose of this paper is to explore and analyse the risks in container shipping operations from a logistics perspective. In the paper, risks associated with the three flows in logistics − information, physical, and payment flow are identified and analysed.

Design/methodology/approach

The use of case study method was first explained and justified. Second, risk identification was started with supporting references, several interviews were then conducted to identify and validate the potential risks in container shipping operations. A questionnaire was deployed to collect related data; and the impacts of the risks were then assessed and ranked using the method of risk mapping.

Findings

The paper has identified a total of 35 risk factors and classified them into different categories. The paper has also revealed that the risks associated with physical flows have more serious risk impacts than the other types of risks; however, one of the risk factors associated with information flow (shippers hiding cargo information) is the most significant one among all the factors.

Originality/value

Although many studies have been conducted on container shipping operational risks, no studies so far have approached this issue from a perspective that inclusively examines all the possible risks and comprehensively evaluates the relative importance of each of them. This study has identified the risks in container shipping operations, and analysed and ranked the level of these risks. The research further “refines” the findings of some previous studies by placing the risk factors addressed therein in a full “risk picture” which was developed systematically.

Details

The International Journal of Logistics Management, vol. 26 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

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…

2481

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

Article
Publication date: 2 October 2019

Gökcay Balci, Aylin Caliskan and Kum Fai Yuen

In recent years, the business of container lines has faced severe challenges such as overcapacity and low profitability. To survive in such a competitive market, container lines…

2468

Abstract

Purpose

In recent years, the business of container lines has faced severe challenges such as overcapacity and low profitability. To survive in such a competitive market, container lines need to maintain long-term customer relationships by enhancing the satisfaction and loyalty of customers. The purpose of this paper is to adopt a social exchange theory (SET) approach and investigate the impact of relational bonding strategies on the satisfaction and loyalty of customers in container shipping.

Design/methodology/approach

Drawing on SET, a theoretical model that specifies the relationships between relational bonding strategies, customer satisfaction and loyalty was proposed. Survey data were collected from 175 freight forwarders. The obtained data were analyzed using structural equation modelling.

Findings

The results indicate that financial bonding strategies have the most significant direct effects on customer satisfaction, while social bonding strategies have the strongest direct impact on customer loyalty. Financial bonding strategies, on the other hand, have the strongest total effects on customer loyalty. Intermodal and basic operations are found to have the equal total effects on customer loyalty.

Research limitations/implications

By identifying the most effective relational bonding strategies for enhancing customer satisfaction and loyalty, this study’s findings allow container lines to better allocate their resources and implement effective relational marketing policies to satisfy and retain their customers.

Originality/value

This research analyses and validates the determinants of customer satisfaction and loyalty from a relational lens and empirically contributes to the field of relational marketing in the container shipping industry.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

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…

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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

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