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1 – 7 of 7Son Nguyen, Peggy Shu-Ling Chen and Yuquan Du
Container shipping is a crucial component of the global supply chain that is affected by a large range of operational risks with high uncertainty, threatening the stability of…
Abstract
Purpose
Container shipping is a crucial component of the global supply chain that is affected by a large range of operational risks with high uncertainty, threatening the stability of service, manufacture, distribution and profitability of involved parties. However, quantitative risk analysis (QRA) of container shipping operational risk (CSOR) is being obstructed by the lack of a well-established theoretical structure to guide deeper research efforts. This paper proposes a methodological framework to strengthen the quality and reliability of CSOR analysis (CSORA).
Design/methodology/approach
Focusing on addressing uncertainties, the framework establishes a solid, overarching and updated basis for quantitative CSORA. The framework consists of clearly defined elements and processes, including knowledge establishing, information gathering, aggregating multiple sources of data (social/deliberative and mathematical/statistical), calculating risk and uncertainty level and presenting and interpreting quantified results. The framework is applied in a case study of three container shipping companies in Vietnam.
Findings
Various methodological contributions were rendered regarding CSOR characteristics, settings of analysis models, handling of uncertainties and result interpretation. The empirical study also generated valuable managerial implications regarding CSOR management policies.
Originality/value
This paper fills the gap of an updated framework for CSORA considering the recent advancements of container shipping operations and risk management. The framework can be used by both practitioners as a tool for CSORA and scholars as a test bench to facilitate the comparison and development of QRA models.
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Min-Seop Sim, Sung-Ho Kim, Yul-Seong Kim and Young-Joon Seo
Competition among seaports is rapidly increasing due to various factors such as the global recession, resurgence of COVID-19, tight environmental regulations of IMO, sharp rise in…
Abstract
Purpose
Competition among seaports is rapidly increasing due to various factors such as the global recession, resurgence of COVID-19, tight environmental regulations of IMO, sharp rise in ocean freight charges, increasing global uncertainties and growth in ship sizes. It is essential to have precise knowledge of shipping companies' port selection factors to secure the competitive advantage of seaports. This study aims to empirically analyze recent changes in the importance of port selection factors.
Design/methodology/approach
By employing a longitudinal study, this study conducted the t-test analysis. The first survey was conducted from January 2005 to April 2005. Then, the second survey was conducted in May 2021.
Findings
First, the importance of port facilities (berth length and the number of berths, shed and terminal areas, possession of adequate equipment and maximum berth size) increased significantly. Second, while ship and cargo safety were the critical port service factors in previous studies, speed, flexibility and reliability for handling cargo and berthing schedule were found to be crucial in this study. Third, the importance of ship arrival/departure frequency, route diversity and ship arrival/departure information systems increased when shipping companies selected the port.
Originality/value
This study has academic significance in that it reveals the changing importance of port selection factors in the 2020s and has taken the form of a longitudinal study on the importance of port selection factors from 2005 to 2021, moving beyond the cross-sectional approach. This study can provide valuable insights into and implications for port policymakers and managers when developing and formulating port policies and strategies.
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Sara Rogerson, Martin Svanberg, Ceren Altuntas Vural, Sönke von Wieding and Johan Woxenius
Severe disruptions to maritime supply chains, including port closures, congestion and shortages in shipping capacity, have occurred during the COVID-19 pandemic. This paper’s…
Abstract
Purpose
Severe disruptions to maritime supply chains, including port closures, congestion and shortages in shipping capacity, have occurred during the COVID-19 pandemic. This paper’s purpose is to explore flexibility-based countermeasures that enable actors in maritime supply chains to mitigate the effects of disruptions with different characteristics.
Design/methodology/approach
Semi-structured interviews were conducted with shipping lines, shippers, forwarders and ports. Data on the COVID-19 pandemic's effects and countermeasures were collected and compared with data regarding the 2016–2017 Gothenburg port conflict.
Findings
Spatial, capacity, service and temporal flexibility emerged as the primary countermeasures, whilst important characteristics of disruptions were geographical spread, duration, uncertainty, criticality, the element of surprise and intensity. Spatial flexibility was exercised in both disruptions by switching to alternative ports. During the COVID-19 pandemic, ensuring capacity flexibility included first removing and then adding vessels. Shipping lines exercising service flexibility prioritised certain cargo, which made the spot market uncertain and reduced flexibility for forwarders, importers and exporters that changed carriers or traffic modes. Experience with disruptions meant less surprise and better preparation for spatial flexibility.
Practical implications
Understanding how actors in maritime supply chains exercise flexibility-based countermeasures amid disruptions with different characteristics can support preparedness for coming disruptions.
Originality/value
Comparing flexibility-based measures in a pandemic versus port conflict provides insights into the important characteristics of disruptions and the relevance of mitigation strategies. The resilience of maritime supply chains, although underexamined compared with manufacturing supply chains, is essential for maintaining global supply chain flows.
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This paper focusses on the aftermath of disruptions and the importance of the two largest canals (Suez and Panama), commenting on how during the pandemic the canal fees were…
Abstract
Purpose
This paper focusses on the aftermath of disruptions and the importance of the two largest canals (Suez and Panama), commenting on how during the pandemic the canal fees were lowered. Considering the ongoing efforts to decarbonize shipping, some of the ongoing disruptions will help reach these objectives faster.
Design/methodology/approach
Following a literature review of route choice in shipping, and a presentation of significant disruptions in recent years, the author deploys a simplified fuel consumption model and conduct case study analyses to compare different routes environmentally and economically.
Findings
The results explain why at times of low fuel prices as in 2020, canals provided discounts to entice ship operators to keep transiting these, instead of opting for longer routes. Considering the ongoing repercussions of the pandemic in supply chains, as well as the potential introduction of market-based measures in shipping, the value of transiting canals will be much higher in the coming years.
Research limitations/implications
The main limitation in this work is that the author used the publicly available information on canal tolls, for the different ship types examined.
Practical implications
The envisioned model is simple, and it can be readily used for any ship and route (port to port) combination available, if ship data are available to researchers.
Social implications
It is possible that canal tolls will increase, to account for the additional environmental benefits brought to ship operators.
Originality/value
The methodology is simple and transferable, and the author proposes several interesting research questions for follow-up work.
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Celian Colon and Stefan Hochrainer-Stigler
Global and interconnected supply chains are increasingly exposed to systemic risks, whereby individual failures propagate across firms, sectors and borders. Systemic risks have…
Abstract
Purpose
Global and interconnected supply chains are increasingly exposed to systemic risks, whereby individual failures propagate across firms, sectors and borders. Systemic risks have emerged from the decisions of individual firms, e.g., outsourcing and buffer reduction, and are now beyond their control. This paper aims to identify appropriate approaches to mitigating those risks.
Design/methodology/approach
Systemic risks require analyzing supply chains beyond a dyadic perspective. This study approaches the problem through the lenses of complex systems and network theories. Drawing on the lessons learned from other systemic-risk-prone systems, e.g. energy and financial networks, both in research and practice, this study analyzes the adequate level of governance to monitor and manage systemic risks in supply chains.
Findings
The authors argue that governance institutions should be mandated to overview and reduce systemic risks in supply chains from the top down, as central bankers do for the financial system. Using firm-level data and tools from network analysis and system dynamics, they could quantify systemic risks, identify risk-prone interconnections in supply chains and design mitigating measures. This top-down approach would complement the bottom-up supply chain management approach and could help insurers design policies for contingent business interruptions.
Originality/value
Instead of looking at supply chains purely from the firms’ angle, the perspective of insurers and governments is brought in to reflect on the governance of risks.
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José Antonio Pedraza-Rodríguez, Martha Yadira García-Briones and César Mora-Márquez
This article aims to explore the concept of chain value of the public port system in Ecuador from the perspective of importing/exporting companies, analyzing how perceived value…
Abstract
Purpose
This article aims to explore the concept of chain value of the public port system in Ecuador from the perspective of importing/exporting companies, analyzing how perceived value in the use of port services affects customer satisfaction and the intermediate links of the influence of trust and commitment on customer loyalty.
Design/methodology/approach
Relying on a survey of 634 Ecuadorian companies with experience in international trade as port users and a theoretical framework well-established in the literature on consumer behavior, the empirical study found evidence of a positive and significant relationship with the knowledge of chain effects.
Findings
The findings confirm the chain effect and reveal ways to maintain an ongoing satisfactory, trust and committed relationship with users, thereby ultimately gaining and maintaining their loyalty. The conclusions suggest how this postulate can help to close the gap referred to the effective management of port services, and point out that port managers should be concerned with a continuous in-depth understanding of the perceived value and its chain effects.
Originality/value
The authors add evidence of the use of the postulate of the chain of effects on these dimensions, whose applicability is very well established, tested and consensual for the doctrine in industrial marketing. In contrast, it is scarcely present in the port relationship with its users.
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Umur Bucak, Mahmut Mollaoğlu and Mehmet Fatih Dinçer
Considering the human factor, the quality of the personnel is vital to ensure especially the value creation in the ports. Therefore, employee quality stands out for withstanding…
Abstract
Purpose
Considering the human factor, the quality of the personnel is vital to ensure especially the value creation in the ports. Therefore, employee quality stands out for withstanding the pressures that stem from global trade on its operational speed felt by ports in recent years. Accordingly, the selection of the qualified personnel at the ports is very critical and a tool based on dynamic capabilities is needed to manage this process well. The aim of this study is to develop a model based on dynamic capabilities for recruitment process of ports.
Design/methodology/approach
Port personnel should have dynamic capabilities detected from the literature. These capabilities were approached as criteria. In this study, Buckley's proposed fuzzy analytical hierarchy process (AHP) method was employed for weighting the whole criteria. After that, weights of the criteria were used to prioritize alternatives with the fuzzy TOPSIS method.
Findings
This model reflects port managers' priorities and port customers' evaluations. Thus, the model can also reflect the level of integration of ports' related department managers into the recruitment process. The analyses allow the evaluation of the attitudes of the human resources department in the related port while fulfilling the personnel recruitment function. As a result of analyses, differences between perceptions of port managers and customers served as a feedback to the human resource management department of the ports.
Originality/value
One of the originalities of this study was derived from its customer-oriented perspective. This is a unique study that gathers common personnel capabilities related to the operation, planning and customer relationship departments and evaluates the success of these capabilities from the customer perspective.
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