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In transportation and distribution systems, the shipment decisions, fleet capacity, and storage capacity are interrelated in a complex way, especially when the authors take into account uncertainty of the demand rate and shipment lead time. While shipment planning is tactical or operational in nature, increasing storage capacity often requires top management’s authority. The purpose of this paper is to present a new method to integrate both operational and strategic decision parameters, namely shipment planning and storage capacity decision under uncertainty. The ultimate goal is to provide a near optimal solution that leads to a striking balance between the total logistics costs and product availability, critical in maritime logistics of bulk shipment of commodity items.

The authors use simulation as research method. The authors develop a simulation model to investigate the effects of various factors on costs and service levels of a distribution system. The model mimics the transportation and distribution problems of bulk cement in a major cement company in Indonesia consisting of a silo at the port of origin, two silos at two ports of destination, and a number of ships that transport the bulk cement. The authors develop a number of “what-if” scenarios by varying the storage capacity at the port of origin as well as at the ports of destinations, number of ships operated, operating hours of ports, and dispatching rules for the ships. Each scenario is evaluated in terms of costs and service level. A full factorial experiment has been conducted and analysis of variance has been used to analyze the results.

The results suggest that the number of ships deployed, silo capacity, working hours of ports, and the dispatching rules of ships significantly affect both total costs and service level. Interestingly, operating fewer ships enables the company to achieve almost the same service level and gaining substantial cost savings if constraints in other part of the system are alleviated, i.e., storage capacities and working hours of ports are extended.

Cost is a competitive factor for bulk items like cement, and thus the proposed scenarios could be implemented by the company to substantially reduce the transportation and distribution costs. Alleviating storage capacity constraint is obviously an idea that needs to be considered when optimizing shipment planning alone could not give significant improvements.

Existing research has so far focussed on the optimization of shipment planning/scheduling, and considers shipment planning/scheduling as the objective function while treating the storage capacity as constraints. The simulation model enables “what-if” analyses to be performed and has overcome the difficulties and impracticalities of analytical methods especially when the system incorporates stochastic variables exhibited in the case example. The use of efficient frontier analysis for analyzing the simulation results is a novel idea which has been proven to be effective in screening non-dominated solutions. This has provided the authors with near optimal solutions to trade-off logistics costs and service levels (availability), with minimal experimentation times.

Early twentieth century transatlantic migration was both a massive transoceanic population transfer and a complex travel business. The successful growth of this multinational commerce was based not on fare reductions, but on risk management strategies. Shipping lines provided costly carrying capacity sufficient to accommodate severely fluctuating demand for transatlantic migration, and did so in a manner which improved the reliability and quality of travel for migrants.

This paper aims to study the implication of the stochastic gross-profit-per-day objective on the ship profitability and the ship capacity and speed.

The paper has used the mathematical model and the solution methodology given by El Noshokaty, 2013, 2014, 2017a, 2017b, and SOS, 2019.

The paper finds that if the ship owner follows the rate concept and the cargo demand forecast, he can improve the profitability of his company and be able to select the proper capacities and speeds for the ships used.

The findings are not only useful for the shipping or other cargo transport companies but also for businesses like gas reservoir development, car assembly lines in the industry, cooperative farming and crop harvesting in agriculture, port cargo handling in trade and road paving in construction.

The contribution of this paper lies in notifying the ship owners of the possible profitability improvement and the consequences of building ships of larger capacities and slower speeds.

The purpose of this paper is to examine what types of shipping knowledge are crucial in order for shipping companies to survive in dynamic business environment, and to investigate how the shipping knowledge affects the company’s performance (i.e. organizational innovation and logistics value). This paper also diagnoses the moderating effect of absorptive capacity on the relationship between the shipping knowledge and its effectiveness.

Based on the literature, a theoretical framework and relevant hypotheses are established so as to show associated relationships between shipping knowledge, absorptive capacity, and organizational innovation and logistics value. Data are collected for an empirical analysis and a moderated hierarchical regression analysis is conducted to test the hypotheses.

Results show that a high level of shipping knowledge has a positive influence on the organizational innovation and logistics value of shipping companies. The findings also indicate that, while the absorptive capacity of shipping companies moderates the positive impact of shipping knowledge on the logistics value, it directly affects the improvement of organizational innovation.

This research verifies that effective knowledge management of shipping companies plays a significant role in developing organizational innovation and improving logistics performance. The research findings provide shipping companies with a strategic insight into the identification of critical sources for competitive advantage and greater organizational performance from an organizational learning perspective.

This line of research is served as an indicator of a good strategic direction for the practitioners engaged in the maritime transport and logistics industry, in order for them to become better integrated entities in a global logistics system as well as maximize their competitive advantages.

This paper makes the first attempt in its kind at empirically examining the types of shipping knowledge and its overall effectiveness in terms of the improvement of organizational innovation and logistics value. The moderating role of absorptive capacity on the impact of knowledge on organizational performance has also been initiated in the maritime logistics research.

Liner connectivity plays an important role as a determinant in how a country is able to gain access to world markets. Liner shipping as the medium of seaborne transport for import and export of manufactured and semi-manufactured goods plays a significant part in international trade, which in turn potentially contribute towards the prosperity of a country and its surrounding region. Liner Shipping Connectivity Index (LSCI) is one of the most common benchmark to see how well connected a country in global trade, where it consists of five components, namely the number of ships, carrying capacity, ship size, services provided, and the number of companies that deploy container ships calling a country’s ports. This paper aims to tally from the most to the least which LSCI component contributes in improving the shipping connectivity with the most impact, in six Maritime South-East Asian countries, i.e., Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. By descriptive statistics, correlation analysis, and panel data, this paper finds that the country port’s capacity to accept larger ship size provides the most significant impact towards the improvement of the connectivity in the region. To attract companies to deploy largest ship, the improvement needs to be complemented with the capacity that can meet the expected volume, offering a variety of service, and good turnaround speed at the country’s port. The paper is expected to present not only indicative recommendations on which logistics connectivity initiative needs to be invested first, but also necessary proposals to develop a programme for building the region’s overall logistics industry.

Paper Code: SLC-206

Short-sea shipping (SSS) plays an important role in regional transportation networks by supporting regional trade and improving inter-modality. In particular, countries in north-east Asia, such as China, South Korea and Japan have been served well by local SSS services. While SSS markets in Northeast Asia (NEA) have been developed by bilateral routes with sub-markets, the market structure of each sub-markets varies depending on concentration and competition levels as well as government intervention. The purpose of this paper is to analyse the market structure of SSS markets in the Northeast Asia.

Herfindahl–Hirschman Index (HHI) and concentration ratio are adopted to measure the market concentration from 2013 to 2017 for SSS markets in NEA. Additionally, the balance between supply and demand is investigated by measuring the capacity utilisation factor (CUF) based on slot capacity.

The market structure in the NEA SSS markets is influenced by firms’ behaviour under different levels of governmental intervention. Shipping firms in a market with more governmental intervention in market entry tend to focus on balancing supply and demand rather than increasing market share, whereas firms in a market with less intervention (and more competition) tend to increase their market share by pursuing efficient capacity management.

The period of data set is limited to 2013–2017. Furthermore, prices or revenue for specific routes are not available.

This paper sheds light on the market structure and behaviour of players in SSS market. In addition, the work has value to measure capacity utilisation based on slot capacity.

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.

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.

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.

Understanding how actors in maritime supply chains exercise flexibility-based countermeasures amid disruptions with different characteristics can support preparedness for coming disruptions.

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.

This study aims to examine ship loading strategies during large-scale military deployments. Ships are usually loaded to a stowage goal of about 65% of the ship's capacity. The authors identify how much cargo to load onto ships for each sailing and propose lower stowage goals that could improve the delivery of forces during the deployment.

The authors construct several mixed integer programs to identify optimal ship loading strategies that minimize delivery timelines for notional, but realistic, problem variables. The authors study the relative importance of these variables using experimental designs, regressions, correlations and chi-square tests of the empirical results.

The research specifies the conditions during which ships should be light loaded, i.e. loaded to less than 65% of total capacity. Empirical results show cargo delivered up to 16% faster with a light-loaded strategy compared to fully loaded ships.

This work assumes deterministic sailing times and ship loading times. Also, all timing aspects of the problem are estimated to the nearest natural number of days.

This research provides important new insights about optimal ship loading strategies, which were not previously quantified. More importantly, logistics planners could use these insights to reduce sealift delivery timelines during military deployments.

Most ship routing and scheduling problems minimize costs as the primary goal. This research identifies the situations in which ships transporting military forces should be light loaded, thereby trading efficiency for effectiveness, to enable faster overall delivery of unit equipment to theater seaports.

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).

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.

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.

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.

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.

This study aims to evaluate cargo and eco-efficiency of global container shipping companies (CSCs) and explore the determinants of the CSCs' efficiencies. While the former is derived from the CSCs' operational perspective, the latter highlights environmental issue related to carbon emission reduction.

In the first stage, a two-stage double bootstrap approach of data envelopment analysis (DEA) is applied to derive bias-corrected cargo and eco-efficiency of the top ten global CSCs under the variable returns to scale assumption. In the second stage, ordinary least squares and truncated regression are applied to examine determinants of the CSCs' efficiencies.

The DEA results reveal that the cargo efficiency of the CSCs is higher than their eco-efficiency by about 2.6% under variable returns to scale in DEA. However, the bias-corrected results show that the difference is 2.9%. The overall average efficiencies suggest that the CSCs can improve their cargo (eco) efficiency by 6.9% (10.8%). In the second stage, the regression results show that the numbers of ship, return on assets and asset turnover ratio are significantly related to both cargo and eco-efficiencies, whereas the total fleet capacity positively affects cargo efficiency.

The results of this study can help the inefficient CSCs make strategic decisions to improve their performance. For example, their business experience and capacity may be contributing to their efficiencies. However, this study only focuses on the container market among the three main markets, namely, dry bulk, wet bulk and container.

This study highlights an environmental issue in the shipping industry. While CSCs are operating their cargo efficiently in general, they should also put green initiatives into their business operations for the long-term sustainability.