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This study aims to develop a competitive dynamics model of container shipping liners, one which examines how inter-firm network embeddedness would affect inter-firm rivalry such as the likelihood of a competitive action of a focal firm and the likelihood of its rivals’ response and how the inter-firm rivalry then has an influence on the market share of the focal firm. Structural and relational network embeddedness between a focal firm and its competitors would be investigated as drivers of the likelihood of the competitive action and response. The theoretical framework on the relationship between network embeddedness, inter-firm rivalry and market share in the liner shipping industry will be developed and relevant propositions are then suggested in relation to the model. This attempt may provide meaningful insights for managers and academic researchers into the key factors which affect the inter-firm rivalry between shipping liners and may also detail the impact of inter-firm rivalry on the focal firm’s market share. This research would therefore contribute to the development of the competitive strategy of container shipping companies so as to help them strategically manage their rivals’ competitive behaviors and maximize their market share.

This paper investigates the performance assessment of liner shipping industry and presents a multi-dimensional evaluation framework to ensure both financial and non-financial monitoring. The traditional performance assessment approach is based on the financial indicators such as ratio analysis, but it is limited to the fiscal perspective. The meaning of performance has dramatically changed and non-financial (and intangible) assets increased their importance in recent years. Under these circumstances, the multi-attribute performance assessment methods play a critical role to combine many aspects of the business. Balanced Scorecard (BSC) is originally developed for the multi-attribute performance assessment and its philosophy on business process evaluation pioneered the importance of key performance indicators and the quality management issues including the internal customer. Service quality and the business performance assessment are some of the hot issues in the liner shipping industry and the long term competitiveness is a critical concern in the recent liner shipping business. The BSC method is utilized to ensure a cumulative analysis of the short/long and tangible/intangible indicators of performance and computes the weight of each criterion by using Fuzzy-AHP method in the liner shipping industry.

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.

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

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.

The growth of China’s economy during the 1990s has both shaped and reflected changes in the span and function of the country’s shipping connections both within Asia and with the rest of the world. Although sea-land developments within China have been studied, less attention has been paid to the wider global implications stemming from the transformation of the country’s maritime geography during a decade of further market reforms and greater integration into the world economy. Consequently, there is a need to comprehend how China’s state-owned shipping industry has been reorganized during the 1990s to meet the new requirements, with special reference to the country’s liner shipping connections between and within Asia respectively. More purposely, these topics are addressed by examining changes in the organization, approach and set of connections of the state-owned China Ocean Shipping (Group) Company (Cosco) and its post-1993 offshoot COSCO Container Lines Company Ltd (Coscon). This review provides a springboard for a detailed analysis of shifts in both extra- and intra-Asian shipping patterns between 1990 and 2000 and consideration of their strategic implications. Finally, short-sea shipping is defined and the phenomenon’s operational strengths and weaknesses discussed.

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.

This study aims to analyze information on vessel traffic between the two Koreas with a probability distribution for each route/vessel type. The study will then conduct an estimate for maritime transport patterns of inter-Korean trade in the future. To analyze the flow of inter-Korean coastal shipping, this study conducted visualization analysis of shipping status between North and South Korea by year, ship type, and port using navigation data of three years from Port Logistics Information System (Port-MIS) sources during 2006 to 2008, which saw the most active exchanges between the two governments. Also, this study analyzes shipping status between the two governments as a probability distribution for each port and provides the prospects for future maritime transport for inter-Korean trade by means of Bayesian Networks and simulation. The results of the analysis are as follows: i) when North-South routes are reopened, the import volume for sand from North Korea will be increased; ii) investment in the modernization of ports in North Korea is required so that shipping companies can generate profit through economies of scale; iii) the number of the operating vessels including container ships between the two governments is expected to increase like when the tensions and conflict on the Korean Peninsula was release, especially between Busan port in South Korea and Nampo port in North Korea; and iv) among container ships, transshipment containers imported and exported through Busan Port will be shipped to North Korea by feeder transportation.

This study aims to develop an assessment methodology using a Bayesian network (BN) to predict the failure probability of oil tanker shipping firms.

This paper proposes a bankruptcy prediction model by applying the hybrid of logistic regression and Bayesian probabilistic networks.

The proposed model shows its potential of contributing to a powerful tool to predict financial bankruptcy of shipping operators, and provides important insights to the maritime community as to what performance measures should be taken to ensure the shipping companies’ financial soundness under dynamic environments.

The model and its associated variables can be expanded to include more factors for an in-depth analysis in future when the detailed information at firm level becomes available.

The results of this study can be implemented to oil tanker shipping firms as a prediction tool for bankruptcy rate.

Incorporating quantitative statistical measurement, the application of BN in financial risk management provides advantages to develop a powerful early warning system in shipping, which has unique characteristics such as capital intensive and mobile assets, possibly leading to catastrophic consequences.

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.

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.

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.

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.

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).