International Journal of Shipping and Transport Logistics (39 papers in press)
Spatial effects of container ports on production of the leather, bag and shoe industry in Korea
by Yong An Park, Francesca Romana Medda
Abstract: Container port operations are widely regarded as beneficial for regional economies particularly in aggregated terms. The present paper examines this common knowledge using the specific case of the leather, bag and shoe industry in Korea, which was once a major export industry in the early 1990s but evolved into an importer in 2003. The authors use two panel datasets of the leather, bag and shoe industry, one dataset of 16 regions from 1991 to 2011 and the other dataset of enduring establishments during the same period. The panel datasets also add port activity variables including container throughput. In our panel regression analysis with panel data of the16 regions, the authors find that an increase of container throughput in ports affects production of the industry positively during the examined period. When dividing the examined period into two periods in accordance with change in global competitiveness of the industry: the period before 2003 and the period from 2003 to 2011, the authors observe the negative effects in the first period and primarily in the groups of regions without large ports. The panel regression analysis of enduring establishments presents a negative coefficient of port throughput on production. The contradictory results may be caused by the characteristics of the two different panels.
Keywords: Container port; panel regression; manufacturing; regional effect; Korea.
USING DRY PORTS FOR PORT CO-OPETITION: THE CASE OF ADRIATIC PORTS
by Tomaz Kramberger, Jason Monios, Gregor Strubelj, Bojan Rupnik
Abstract: This paper explores the use of dry ports as a tool of both inter-port competition and potential co-opetition. The case examined is of hinterland access to central Europe by Adriatic ports, a production and consumption area that is mostly served by North European ports despite a much shorter sailing distance from Asia to ports in the Adriatic. The paper tests to what degree use of single or combined dry ports can enable the Adriatic ports to overcome their lower preference rate compared to Northern competitors.
A port choice model based on preference rates is presented to determine the trade-off between subjective port choice preference and transport distance as determinants of a ports hinterland using linear programming and analytic hierarchy process. The model investigates the gap between truly captive (based on shortest rail distance, the key metric according to previous research) and competitive (based on the result of the PR model).
Results suggest that individual dry ports established by individual Adriatic ports make only a small difference but a combined dry port could enable them to capture some of the hinterland from Northern ports, not only by reducing transport costs but also by improving the PR due to the provision of better access and facilities.
Keywords: port; competition; hinterland; rail; dry port; intermodal; terminal; port choice.
Ships Time in Port
by Brian Slack, Claude Comtois, Bart Wiegmans, Patrick Witte
Abstract: Much of the success of containerisation is due to time economies, in particular the way in which the length of time ships spend in port has been reduced. Although vessels now spend a small amount of time in port compared with the time at sea, it is still a cost factor. The focus of this study is on the amount of time container vessels spend in port. An extensive literature review indicates that earlier researchers had to rely on general estimates drawn from ship schedules. With the availability of accurate geographic positioning of ship locations it is now possible to obtain comprehensive determinations of vessel turnaround times in port. The average vessel turnaround times (ATTs) involving 70 ports of call, are considered this study encompassing three major East-West trades and one North-South service. The principal research question addressed is: how do ATTs vary among ports and how this time metric is related to port performance? ATTs are compared with factors such as numbers of containers handled and several measures of port efficiency. The results are disappointing and lead to a hypothesis that ATTs are differentiated regionally and functionally, rather than globally. Evidence is presented for this hypothesis. Several theoretical issues are considered out of the results and questions for further research are presented.
Keywords: container shipping; time in port; port efficiency; regional differences.
Mapping the hierarchical structure of the global shipping network by Weighted Ego Network Analysis
by Chengliang Liu, Jiaqi Wang, Hong Zhang, Meiyuan Yin
Abstract: An improved complex network approach named Weighted Ego Network Analysis (WENA) was employed to explore the hierarchical structure of the global shipping network. First, it was found that all centrality indices exhibited scale-free properties with obvious power-law distributions. That is, less than thirty percent of shipping ports had quite high centrality values, which indicates the powerful hubs of the global shipping system. Those very accessible shipping ports also showed significant preferential attachment properties such as rich-club and Matthew effect. Second, results of WENA revealed its core-peripheral hierarchical structure, which could be classified into five levels of subnetworks: first tier (top 5%), second tier (top 5%~15%), third tier (top 15%~30%), forth tier (top 30%~50%), and fifth tier (the remainder). Finally, five kinds of correlation analyses have been carried out, including degree vs. degree, degree vs. strength, degree vs. clustering coefficient, degree vs. distance and centrality vs. GDP ones. Results indicated that the connectivity of a shipping port was both significantly influenced by the connectivity of its directed connected ports and the shipping distance and hinterland economic scale.
Keywords: hierarchical structure; global shipping network; scale-free property; weighted ego network analysis (WENA); weighted average centrality rank (WACR).
Analyzing Business Models of Liner Shipping Companies
by Jasmine Siu Lee Lam, Hui Neng Wong
Abstract: In a highly volatile and ever-changing business environment, how to run the business efficiently with low costs while achieving high service standards is a key to success for shipping companies. This paper focuses on the liner shipping sector and aims to find out and analyze the business models used by liner shipping companies. The major types of business models are formed by literature review and information collection based on the public sources of liner companies. Interviews with expert industry practitioners are conducted for result analysis and verification. The paper broadly categorizes three business models: Cost Leadership, Service Differentiation & Innovation, and Hybrid. In contrast with the literature, findings suggest that the Hybrid model is the most desirable business model that most companies would like to achieve. Based on the analysis, the study further conceptualizes the business culture and organizational capability of liner companies in relation to the business models. Propositions and implications are then derived.
Keywords: business model; liner shipping; shipping strategy; economic value; cost leadership; service differentiation; innovation; business culture; organizational capability; market volatility.
Operational and Disaggregate Input Efficiencies of International Container Ports: An Application of Stochastic Frontier Analysis
by Huey-Kuo Chen
Abstract: Analysis of the performance of container ports is of great importance for the competitiveness of port business. This paper, therefore, applies stochastic frontier/metafrontier analysis to study output and disaggregate input efficiencies of international container ports during 2004-2011 with the aim that the findings obtained can be a reference for relevant industry operators to identify avenues for strengthening port operations. One output variable (i.e., container throughput), four input variables (e.g., container storage capacity, ship-to-shore container cranes, etc.) and six environmental variables reflecting different conditions or surroundings confronted by ports (e.g., geographic region, water depth, national economic growth rate, etc.) were used to evaluate technical efficiency, disaggregate input efficiency and meta technical efficiency for 35 international container ports using stochastic frontier/metafrontier analysis, a known parametric approach. Moreover, input efficiency is discussed separately for each selected input variable. The results show that the Asia-Pacific group is significantly superior to the Europe/America group in output efficiency for throughput and in input efficiency for ship-to-shore cranes and trucks; the Europe/America group is significantly superior in input efficiency of container storage. To improve performance, port operators should pay more attention to inefficient variables in each individual group and should allocate more resources to improving those. Two types of analysis show that individual surroundings variables have a significant effect on the input efficiency of trucks and vehicles. A few remarks at the end concern applications of suitable frontier/metafrontier models.
Keywords: stochastic frontier analysis; metafrontier; technical efficiency; disaggregate input efficiency; container ports.
Malmquist Productivity Indexes in Chinese Ports: A Fuzzy GMSS DEA Approach
by Peter Wanke, Zhongfei Chen, Jorge Junio Moreira Antunes, Carlos Barros
Abstract: This research focuses on the productivity assessment of 17 major Chinese ports from 2006-2015, shedding some light on how changes in cargo demand and cost structure may impact port performance in the future. Differently from previous works, a network productive structure formed by two stages was considered. In the first stage, fixed and other assets, altogether with human resources, are used to generate operating costs used as intermediate inputs, while the depreciation/amortization of such assets is considered as an exogenous output. In the second stage, each port uses these costs generated in the first stage to produce operating profit, while cargo demand is considered as an exogenous input that enters the system. Then, bootstrapped regression trees are used to predict the relationship of a set of contextual variables related to the technology, financial health and location. Results indicate that the former two determine the productivity change of Chinese ports. When the expansion of scale has not jeopardized the financial health, the productivity will increase. Implications are also derived.
Keywords: Chinese ports; DEA; GMSS; Malmquist; regression trees; bootstrapping.
Benchmarking container port security risks by applying a FIS methodology
by Dimitrios Stavrou, Nikolaos Ventikos, Zaili Yang
Abstract: This paper presents a fuzzy inference approach to estimate the security level of a port in a manner that it provides essential information to the stakeholders when evaluating security risks under uncertainty. A Fuzzy Inference System (FIS) methodology is developed on account to four predefined security factors. A team of experts is used to rank and survey potential port security risks whereas the experts ordinal preferences were combined using the Cook and Seiford method to come up with a consensus risks ranking. To validate the model, results are compared with those from an established Fuzzy Evidential Reasoning approach given the same security risk inputs. The verified FIS can provide useful insights for security analysts to conduct security risk quantification under high uncertainty in data in the maritime sector as well as a wider range of other industries (e.g. aerospace and process) facing high terrorism threats with appropriate tailor and adaptation.
Keywords: Maritime; Port Safety; Port Security; FIS; ISPS; Risk assessment.
The role of Agility and Organizational Learning Culture in forming Long Lasting relations in Shipping
by Angelos Pantouvakis, Maria Karakasnaki
Abstract: The current study aims to introduce and examine the role of agility and organizational learning culture towards enhancing customer relationship quality at the corporate environment level. Using a sample of 17 ports internationally, the study results revealed that the ability of a firm to ensure a long lasting quality relationship with its customers is directly and positively influenced by its agility and its learning culture. Following the organic view of the firm, this study advocates that in order to establish strong and committed quality relationships, focusing solely on organization learning is not enough; organizations should constantly and effectively adapt to changes in their external environment and reorganize their internal structures and systems or in other words be agile.
Keywords: agility; organizational learning culture; relationship quality; shipping.
The effect of CSR practices on organisational performance in the container shipping in Taiwan
by Chung-Shan Yang
Abstract: This study empirically examined the relationships between corporate social responsibility (CSR), customer satisfaction, customer loyalty, and organisational performance in the container shipping context in Taiwan. We collected data from a survey of 124 maritime shipping firms and agencies and used a structural equation model to test the research hypotheses. We confirmed that CSR implementation increases customer satisfaction and customer loyalty, which in turn enhance organisational performance. The link between CSR and organisational performance was found to be direct and indirect (i.e. mediated by customer satisfaction and customer loyalty). This study contributes to container shipping CSR literature by providing a better understanding of the dimensions of container shipping CSR and mediate variables of organisational performance, and therefore, provides theoretical and managerial implications to improve CSR implementation and enhance organisational performance.
Keywords: Container shipping; Corporate social responsibility (CSR); Customer satisfaction; Customer loyalty; Organisational performance.
Top 50 Authors, Affiliations, and Countries in Maritime Research
by Young-Tae (YT) Chang, Kyoung-Suk Choi, Ahhyun Jo, Hyosoo (Kevin) Park
Abstract: This paper examines the top 50 authors, affiliations, and countries in the maritime transportation field. The analysis covers articles published in 65 journals in maritime and transportation. Three indicators are used for ranking: number of papers, the weighted score that reflects the contribution of the authors, and the impact score which considers the impact factor. Temporal changes of ranking are examined in five-year intervals. The potential correlation between methodological popularity and author performance is also discussed.
Keywords: author; affiliation; school; country; maritime; ranking.
ANALYSIS ON THE DETERMINANTS OF SHIPMENT SIZE AND TYPE-OF-TRUCK CHOICES USING A DISCRETECONTINUOUS HYBRID MODEL
by Victor Cantillo, Javier Visbal, Julian Arellana
Abstract: When modeling freight demand, a common assumption is that decision makers decide on the commercial vehicle that best suits their transportation needs. Even though the discrete choice of vehicle type depends on the shipment size, which is a continuous variable, vehicle type choice models usually do not include any shipment size factor. The origin and destination of the cargo, the type of product, attributes related to the level of service (e.g. travel time and cost), trucking operational patterns and shippers characteristics are also factors that determinate both choices. This paper proposes a joint estimation procedure for the discrete-continuous model based on the Integrated Choice and Latent Variable Model. Our approach explicitly includes the shipment size as a continuous latent variable within the discrete type-of-truck choice. The application of the model in the Colombian context highlights the importance of considering the interrelationship between freight mode and shipment size decisions. Modeling results also suggest the presence of unobserved common factors influencing both decisions. The model was used to evaluate policies oriented to promote cargo consolidation. The evaluation suggests that increasing the tolls for small vehicles is feasible because of their higher cost sensitivity.
Keywords: Shipment Size; Type of Truck Choice; Discrete Continuous Model.
The impact of changing market requirements on dock labour employment systems in northwest European seaports
by Theo Notteboom
Abstract: This paper presents a conceptual framework on dock labour arrangements and employment systems from a market-driven perspective. We conceptualize how changing market requirements affect the characteristics and the design of dock labour employment systems in seaports. The demand for a high dock labour performance is decomposed into three underlying dimensions: labour productivity, cost efficiency and more qualitative factors such as labour flexibility and service delivery. The internal organization of dock labour takes place within a wider setting of legal and social conditions and the state of technology. Using the conceptual framework, we analyze how terminal operators try to meet changing market requirements through the deployment of new technology and advances in dock labour organization. We provide empirical evidence by zooming in on the evolution of dock labour arrangements and employment systems in a number of northwest European ports.
Keywords: Dock labour; labour performance; productivity; Europe; market dynamics.
Evaluation of a Centralized Transportation Assistance System for Passengers with Special Needs at a Canadian Airport
by Mehmet Begen, Richard Fung, Daniel Granot, Frieda Granot, Chris Hall, Bailey Kluczny
Abstract: Transportation assistance for travelers with special needs (e.g., disabled, sick, elderly, unaccompanied minors) is provided at most airports around the world, and the demand for this service is increasing every year. At most airports, air carriers are independently responsible for this service, and they set their own service levels and practices. We expect that a centralized system would increase resource efficiency and passenger satisfaction. We conduct an evaluation of such a centralized system at a Canadian airport using two distinct and independent models: simulation and queuing. We find that consolidating the service produces higher levels of service quality for passengers while, at the same time, uses fewer resources. In addition to quantifying the benefits and finding the required resource levels for a given service level, we discuss the pros and cons of a centralized system from the perspectives of the airport authority, the airlines, and the passengers. To the best of our knowledge, this is the first study for consolidating transportation service for special-need passengers. Our methodology may be applied to other airports worldwide to evaluate a centralized transportation assistance system for passengers with special needs.
Keywords: Airport passenger transportation; passengers with special needs; simulation modelling; queuing analysis.
DECISION MAKING TECHNIQUE FOR ANALYSING PERFORMANCE OF MALAYSIAN SECONDARY PORTS
by Noorul Shaiful Fitri Abdul Rahman, Alisha Ismail, Rabiatul Adawiyah Mohd Roslin, Venus Y.H. Lun
Abstract: This paper aims to study the performance of the secondary ports in the East Coast Economic Region (ECER) of Malaysia by analysing the selected criteria and sub-criteria involved. A total of 12 respondents were selected as the sample for the study and the data were analysed using a decision-making method that incorporated an analytical hierarchy process, fuzzy-link based approach, and evidential reasoning. To analyse the performance of the secondary ports, five criteria were considered, which include: 1) operational, 2) physical, 3) shipping demand, 4) financial, and 5) manpower performances. To realise this performance benchmarking, two secondary ports that were positioned on the ECER, namely, the Kemaman Port (Kemaman Supply Base) and Kertih Port were used as the case studies. The findings of this study showed that the operational and physical performances played a significant role in contributing to benchmark the performance of the secondary ports.
Keywords: Port Performance; Secondary Ports; Port Business; Decision Making Techniques; Maritime Studies.
Assessment of differences in efficiency across strategic groups in the container shipping context: a data envelopment analysis
by Wong-Hsiu Huang, Shih-Liang Chao, Chih-Ching Chang
Abstract: This study examines differences in efficiency across strategic groups in the container shipping context using data envelopment analysis of secondary data collected from 17 global container carriers. Global container carriers were classified based on strategic variables such as fleet capacity, asset/debt ratio, owned/chartered-in fleet ratio, non-container revenue ratio, and revenue. Four strategic groups were identified, namely: proactive-prudent, proactive-chance, conservative-prudent and conservative-chance. DEA results indicated significant differences in efficiency across the four strategic groups. The proactive-prudent group had significantly a higher fleet capacity, lower leverage and higher efficiency than the other strategic groups. Theoretical and managerial implications of the research findings are discussed to improve container carriers' operational efficiency.
Keywords: container shipping; data envelopment analysis; DEA; strategic groups; efficiency.
Novel 3D model for prioritising the attributes of port service quality: cases involving major container ports in Asia
by Kai-Chieh Hu, Paul Tae-Woo Lee
Abstract: The evaluation of port service quality (PSQ) has become a critical issue in port management. However, previous studies neglect the difficulties in so doing by relying on the resources and capability available at the shipping companies. This study proposes and reports on the testing of a 3D model for prioritising PSQ attributes by introducing a novel dimension called 'goal difficulty' into the port service contributory improvement index. The index represents the composite satisfaction index derived from Kano's model and the standardised weight derived from IPA. The data for testing the proposed 3D model were collected from the managers of five major container ports in Asia. The test results were compared against those acquired using 2D methods (e.g., IPA), and managerial implications were drawn. The newly developed model is expected to help port managers allocate their limited resources efficiently in their prioritisation of PSQ improvement and in optimising port service user needs.
Keywords: port service quality; PSQ; importance-performance analysis; IPA; Kano's model; goal difficulty; GD; Asian container port.
The influence of organisational green climate on employees' green behaviours: evidence from the Eco Port of Kaohsiung
by Hsu-Li Tsai, Chin-Shan Lu, Chih-Ching Chang
Abstract: This research identifies the constructs and measures of organisational green climate and examines its influence on employees' green behaviours. This paper has used survey data collected from 164 respondents who are working at the Eco Port of Kaohsiung in Taiwan. An exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) revealed that there are four green climate dimensions: green port policy, green training, green communication, and green motivation. A structural equation modelling (SEM) was conducted to examine the effects of organisational green climate dimensions on employees' green behaviours. Study findings have indicated that organisational green climate dimensions are positively related to employees' green behaviours. The results have suggested that green motivation has the most important influence on employees' green behaviours, followed by green port policy, green communication and green training. Theoretical and practical implications of the research findings for the development of organisational green climate are discussed.
Keywords: port; organisational green climate; green behaviour; structural equation modelling.
A literature review of port competition research
by Ioannis N. Lagoudis, Ioannis Theotokas, Dimitrios Broumas
Abstract: Research interest in the port industry has increased significantly in recent decades, due to the integration of ports in global supply chain strategies. Ports globally are facing strong competitive pressures in order to meet modern demand characteristics. The motivation behind this work has been to analyse the works present in academic journals, which fall under the port competition umbrella and identify niche areas of research. The study provides detailed analysis of the different research angles of port competition being port selection, port productivity and port competitiveness. Results show that most works focus on topics related to port selection, efficiency, performance and competitiveness. Room for future research appears to be in the areas of geographic comparisons of ports and terminals, financial indicators linked with environmental efficiency, efficiency in liquefied and liquid cargo terminals, port competitiveness and IT systems, port management related issues to strategy and marketing management and finally intra-port competition.
Keywords: port; competition; literature review.
Capital structure determinants of shipbuilding companies
by Roar Adland, Joakim Noraas, Rikke S. Iversen
Abstract: The objective of this paper is to ascertain the major determinants of capital structure decisions for globally listed shipbuilding companies, and how quickly these companies adjust their capital structures when deviating from their target leverage ratios. Using a range of multiple regression models we find size, asset risk and the market-to-book ratio to be the most influential observable determinants of capital structure, though unobserved company-specific effects remain highly influential. Shipbuilders can be said to have relatively lower adjustment than deviation costs compared to other industries, as they tend to adjust their capital structures significantly faster.
Keywords: shipbuilding; capital structure; speed of adjustment.
Special Issue on: Advances in Shipping, Maritime Transport and Logistics
An analysis of entry and exit decisions in shipping markets under uncertainty
by Matteo Balliauw
Abstract: For single shipowners, an important question to ask is when the optimal moment of buying or selling a ship has arrived. This decision of buying or selling a ship can be seen as entering or leaving the shipping market. The prices and revenues in this market were proven to follow a cyclical evolution. A real options model involving a discrete-time Markov process is applied in this article to analyse the described decisions in the cyclical environment of container shipowners who charter out their ships under time charter agreements. Parameters are estimated using real data. The outcomes show robust and realistic results. The methodology and the insights from the analysis can be used by shippers to make funded entry and exit decisions. Finally, some advice for future research is given.
Keywords: cyclical markets; real options; shipping markets; container; entry and exit decisions.
Estimating the performance of the logistics services attributes influencing customer satisfaction in the field of refrigerated transport
by Teresa Gajewska, Evangelos Grigoroudis
Abstract: By analysing the existing research in the area of logistics services evaluation, including refrigerated transport, it should be noted that the issues concerned are presented in a selective manner. The aim of the paper is to estimate the performance of logistics services attributes in the field of refrigerated transport. In order to respect the qualitative nature of collected information, an ordered weighted averaging (OWA) technique was applied (i.e., rank reciprocal - RR). The findings obtained from the interviews regarding the expectations and the evaluation of the quality level were used to perform a series of analyses based on the so-called fifth vulnerability, developed by the Parasuraman team (SERVQUAL method). The presented research focuses on the analysis of the key criteria for the evaluation of logistics services quality in the examined area. The research was based on a questionnaire designed for purchasers of logistics services. The respondents were companies using refrigerated transport.
Keywords: logistics services; service quality; customer satisfaction; refrigerated transport; ordered weighted averaging; OWA; SERVQUAL method; RR approach; service providers; purchasers of logistics services.
Analysis of technical efficiency and eco-efficiency in container terminals
by Gabriela Assunção Siqueira, Ilton Curty Leal Jr., Letícia Ciqueira Da Cunha, Vanessa De Almeida Guimarães, Ricardo César Da Silva Guabiroba
Abstract: This paper shows the results of performance assessments of 15 container terminals in Brazil, considering both eco-efficiency and technical efficiency measures. It was necessary to determine indicators and measures in order to apply a multi-criteria decision-making technique known as grey relational analysis, to aggregate values that have different scales and units of measurement and to rank the container terminals according to their performance levels. It was possible to determine that higher performance levels in eco-efficiency do not, necessarily, mean that higher technical performance is taking place. Variations in the weights assigned to technical efficiency and eco-efficiency measures might influence the performance ranking of the terminals.
Keywords: container terminal; eco-efficiency; performance assessment; grey relational analysis; GRA; technical efficiency.
A new hub network design integrating deep sea and short sea services at liner shipping operations
by Fábio Francisco Da Costa Fontes, Gilles Goncalves
Abstract: Liner shipping is an increasingly attractive maritime transport, not only by the growing volume of goods transported in the world, but also by the diversity of products that can be carried and its service stability. At liner shipping operation, a hub and spoke structure is often used in which deep sea services take place at the hub network and short sea services can be done in the regional network between the hub and its respective spoke nodes. In this work a new hierarchical structure of hub and spoke with sub-hub is presented. Deep sea services and short sea services are depicted in circular form and the sub-hubs are intersection points of neighbour-39s regional networks. Both cargo-routing with transhipment in hub ports or in sub-hub ports are allowed. The binary integer linear programming model proposed in this work offers, together, a hub location with multiple-spoke allocation problem, a service design problem and the cargo routing problem. Experimental results show good performances comparatively to the classic hub and spoke network structure.
Keywords: Maritime transport; liner shipping; deep sea; short sea; network design; service design; hub and spoke; hierarchical structure; sub-hub; routing cargo; transhipment; hub location; multiple allocation; binary integer linear programming.
The Brazilian cabotage market: a content analysis
by Ana Cristina Paixão Casaca, Cassia Bömer Galvão, Leo Tadeu Robles, Sérgio Sampaio Cutrim
Abstract: The development of domestic short sea shipping (SSS) (hereinafter cabotage) services along the Brazilian coast has drawn the attention of economic and political players since the early 1800s, when the Brazilian internal market was under development. In 1993, subject to the Port Modernization Act, the federal government adopted a new regulatory framework to provide cabotage services, which resulted in a non-competitive situation derived from capacity and operational restrictions. This situation is a tough challenge, particularly after 2003, when Brazil has witnessed an economic boom. Despite this, cabotage came to the forefront of the industry of research and development and numerous studies and papers of an industry and academic nature have been presented and published nationally. The paper consolidates the available information coherently, which is scattered among many documents, investigates the Brazilian cabotage market by mapping demand and supply and by analysing its strengths and weaknesses. The paper identifies that cabotage faces numerous weaknesses and presents a set of solutions, that can only be solved and implemented in the medium-long-term, respectively, which require high investments and regulatory changes. The paper suggests some economic and political changes to be performed at an industry and government levels.
Keywords: Brazil; cabotage; literature review; demand and supply; advantages and disadvantages.
Robust optimisation of liner shipping network on Yangtze River with considering weather influences
by Zhongzhen Yang, Dongxu Chen
Abstract: With robust optimisation and considering the weather influences, liner shipping network on Yangtze River is designed. A model optimising shipping network is built based on the attributes of the river to determine the network, the fleet size and the operation frequency. To consider the bad weather, the robust optimisation method is used to evolve the former model to a robust one. A numerical examination is done by taking 12 ports and 28 cities along the river as the nodes. It is shown that only one type of vessel will be used if the weather influences are considered, while when the weather influences are not considered different types of vessels should be used in different river segments. In the robust network, containers may change from waterway to highway and the profit of waterway declines by 30.5%, while the reliability of the transportation in the region along the river increases by 25%.
Keywords: Yangtze River; liner shipping; network; robust optimisation; weather influences; containerised transportation; user equilibrium.
Optimal design of container terminal gate layout
by Chu Cong Minh, Nathan Huynh
Abstract: Over the last 50 years, international trade of goods has grown significantly in the USA, and as a result, US ports have become bottlenecks in the freight supply chain and logistics. A particular issue that most US ports are contending with is gate congestion (i.e., queuing of trucks outside the container terminal gate). This research provides planners and engineers of container terminals a set of methodologies to design an optimal gate layout to reduce gate congestion. The use of the methodologies to determine the optimal number of service gates is illustrated considering various truck arrival rates, gate service rates, and waiting time thresholds.
Keywords: queuing model; pooled queues; gate layout; optimisation; queuing time.
Special Issue on: Logistics and Maritime Studies on One Belt One Road
Cargo Type Selection Procedure Using Fuzzy AHP and Fuzzy TOPSIS Techniques: The Case of Dry Bulk Cargo Ships
by Ünal ÖZDEMİR, Abdulaziz GÜNEROĞLU
Abstract: Cargo type selection is a challenging procedure in shipping and logistic industry as the net freight charge profit depends on many factors involving in maritime transportation. Maximization of the net profit is subject to determination of the factors affecting the freight account. In this study, the problem of cargo type selection was investigated for the dry bulk ship companies by using fuzzy multi criteria decision making approaches. Furthermore, the mostly preferred dry cargo types were defined by evaluating criteria that should be analyzed during the cargo selection procedure. This study aims at providing a practical guide that can be perceived and implemented by the shipping companies. Results of the study revealed that the most important criteria for the dry bulk cargo selection are net freight charge profit (9.85%), cargo handling conditions (6,35%), total fuel consumption per voyage (5.96%), risk of piracy and stowaways (5.08%), position for the next voyage (4.87%), cargo handling cost (4.74%). On the other hand the least important criteria were determined as ship and crew certificates (0.53 %) and freight contract (0.56 %). Finally, the most preferred cargo type was found as portland cement whereas the least preferred one was the fertilizers.
Keywords: Dry bulk cargo; freight charge; decision making; Fuzzy AHP; Fuzzy TOPSIS.
Strait/canal security assessment of the Maritime Silk Road
by Xiaoxing Gong
Abstract: This study investigates the security of the strait/canal on the Maritime Silk Road, using quantitative indicators, including width, depth, piracy and terrorism attacks, among other factors. The paper applies the Experts Grading Method, which considers the risks estimated by experts for determining the weights of indicators. Due to different knowledge backgrounds, practical experiences and perspectives, the weight parameters given by different experts are always inconsistent, and the risk determined by each expert is different. This study measures the risk estimated by each expert by quantifying the deviation of the experts estimated risk from the weight matrix of the group decision. The results suggest that the indicators have an important impact on strait/canal security, including ship accidents, piracy attacks, reefs, terrorism, military conflict, typhoons, width and depth. Comparatively, in this study, the security of the Suez Canal is found to the best; the Malacca Strait has the second best security, and the Bab al-Mandab Strait has poor security.
Keywords: the Maritime Silk Road; Strait/canal; security assessment; experts’ risks.
Yard Storage Planning for river terminals on One Belt One Road
by Ming-Kun LI
Abstract: In the blueprint of the One Belt One Road initiative, river ports are critical nodes for connecting seaports with inland plants. But operators encounter a yard storage planning problem for export containers with service restrictions on vessels due to different water depths along river terminals. The berthing limitation entails a partitioning of yard blocks that dedicates to each quay section of different water depth conditions so that export containers for a particular vessel can be stored and handled within a limited zone of the terminal to facilitate container handling process. As a result, those zones which are eligible for serving different kind of ships would be preferred by various services. Hence, this yard allocation research aims at minimizing the workload imbalance among yard blocks of different zones. A sub-block clustering method is advocated to increase the flexibility of allocating yard storage space to these containers and thus to improve the use of the space in each zone area. The yard storage planning problem is formulated as a mixed integer linear programming model. On the basis of an important property embedded in the structure of this problem, a solution approach is proposed which is efficient to get satisfactory solutions to most test instances in experiments.
Keywords: Container terminal; Mixed integer linear programming; Sub-block clustering; Yard storage planning.
Manufacturing Relocation and Port/Shipping development along the Maritime Silk Road
by Dongxu Chen, Meifeng Luo, Zhongzhen Yang
Abstract: This study identifies the trends of manufacturing concentration along the Maritime Silk Road (MSR) using GDP and industry value added (% of GDP), as well as survey data on the origins of individuals daily wares in three developed countries. Based on the location quotient and industry life cycle theories, this study selects 20 MSR countries and identifies the potential countries for future development in manufacturing centres. These countries are further evaluated in terms of production costs and their willingness to undertake the manufacturing development. In this manner, thirteen countries are found to have the potential to develop manufacturing centres, which provides a direction to relocate manufacturing to theｍ. Finally, future trends of port and ocean shipping are projected based on the experiences of Chinese ports, shipping, logistics and manufacturing development, and strategies to strengthen shipping logistics and manufacturing are proposed in the context of the 21st Century MSR to create a win-win situation for both China and the MSR countries.
Keywords: Manufacturing transfer; Maritime Silk Road; location quotient; life cycle; port and shipping logistics.
Diversification as an energy importing strategy for China under the B&R initiative
by Kevin X. Li, Mengjie Jin, Wenming Shi
Abstract: One of the key aims of the the Belt and Road Initiative (B&R initiative) is national energy security for China. This paper investigates how the B&R initiative can improve Chinas energy security through diversification of the energy mix, energy suppliers, transport routes, and settlement currency. With those indicators, we quantify the enhancement of energy security after China adopted a diversification strategy under the B&R initiative. To support the study, we also use financial portfolio theory as a management tool to increase the national energy security. The results of the study show that after China adopted the diversification strategy, the national energy security level increased. The major findings of this study are, first, China will be able to import more natural gas and oil from different countries along the B&R. Second, the number of energy suppliers will be increased by adding several countries along the B&R in Central Asia and Africa, thereby reducing the heavy reliance on the Middle East. Last, new pipeline transportation will diversify transport modes and reduce Chinas heavy dependence on the Malacca Strait, which was and is still by far the major oil and liquefied natural gas (LNG) transport route.
Keywords: diversification; energy security; energy shipping and trade; B&R initiative; China.
Special Issue on: Decision Analytics in Port and Shipping Logistics
A statistical forecasting model applied at container throughput in a multi-port gateway system: the Barcelona-Tarragona-Valencia case.
by Manel Grifoll
Abstract: This contribution investigates the container throughput flow in a multi-port gateway system: Barcelona-Tarragona-Valencia (BTV). First, the paper examine the recent dynamics of the total and transshipment flow showing a relevant shifting of traffic share from Barcelona to Valencia. A statistical model based on a two-state Markov model in conjunction with a Monte Carlo experiments is implemented to estimate the predictions of container throughput in BTV system. Verification tests shows how the predictions are reasonable good with an error metrics similar to other methods based on time series analysis. The method is considered suitable for short-term forecasting with a strong potential to be used as a complement of qualitative methods due to the statistical nature of the results. The implementation of the method considers separately the import/export and transhipment container throughput revealing a differentiate dynamics in both container flows. The transhipment flow is more volatile and induce more data dispersion in the container throughput predictions.
Keywords: Markov chain; traffic predictions; Monte Carlo method; TEU; transshipment.
Special Issue on: Liner Shipping and Terminal Operations
A Non-structural Approach to Assess Competitive Conditions in Container Liner Shipping Market: 2009-2014
by Enna Hirata
Abstract: This paper aims to assess the demand elasticities and competitive conditions in Container Liner Shipping (henceforth: CLS) market. Using a dynamic model, the regression results reveal that the degree of competition measured by Panzar-Rosse (P-R) H statistic varies from 0.37 to 0.97 for the period of 2009 to 2014. It implies that CLS market can be described as displaying monopolistic competitive behaviour. The conclusion is consistent with previous studies conducted for earlier periods; moreover, the increasing trend of P-R H statistic value implies increasing degree of competition in the industry. The findings contribute to the understanding of theoretical explanation of competitive condition in latest CLS market. Unlike other studies, this paper establishes a dynamic model that makes it possible to measure both short-run and long-run effects.
Keywords: container liner shipping; demand elasticity; competitive condition; non-structural; panzar-rosse h statistic; dynamic model.
The role of the degree of use of the facilities in the port choice process: the Spanish dockside cranes case
by Ana Martínez-Pardo, Lorena Garcia-Alonso, Alfonso Orro
Abstract: The aim of this study is to analyse how the degree of use of port facilities may influence port choice in the scope of export container traffic. As an indicator of the degree of use, the relationship between containers moved and the number of cranes available is selected. We estimate discrete choice models, drawing on Spanish official records of exports for the four main Spanish peninsular container ports. This article describes a multinomial logit model that includes variables of the port, the location of each one of the points that configure the hinterland and the foreland under study. As port variables, we bring into play the number of cranes and the port facilities categorised according to their degree of use. In conclusion, it can be stated that all analysed factors are relevant in port choice. Regarding how the degree of use affects port choice, it is obtained that the more traffic a port has, the more attractive it becomes due to the economies of agglomeration, scale and network effects, but there is a saturation threshold beyond which the attractiveness of the port decreases. The methodological approach to test the hypothesis allows to obtain the functional form of the relation between the degree of use and the port attractiveness without establishing it a priori.
Keywords: port facilities; non-linearity; container port choice; port competition;
agglomeration economies; economies of escale; network effects; port congestion;
saturation threshold; Ship-to-Shore gantry cranes; decision making; Discrete
Choice Theory; DCM; multinomial logit model; Spanish port system.
Cargo flow, freight rate and speed optimization of container liner services
by Ahlam AlMarar, Ali Cheaitou
Abstract: After the global economic crisis of 2008 the shipping companies have become more worried about keeping and increasing their profit. In this paper, a container liner service cargo flow, freight rates and sailing speed optimization mixed integer non-linear programming model is introduced, in which the total daily profit is maximized. The model focuses on the transportation of dry and reefer containers between a set of pre-established ports while the market sensitivity to the freight rates is considered. The model is implemented on a line of the Asia-Europe trade using the optimization software LINGO 15.0. The results show the correlation that exists between the vessel carrying capacity and the level of freight rate to be charged to the shippers. They also confirm that all the model parameters affect the optimal profit, but only some of them have an effect on the optimal quantities to transport between the ports of the service.
Keywords: liner services; container shipping; speed; freight rate; pricing; cargo flow; profit maximization; dry and reefer containers; non-linear mixed integer programming; Asia-Europe trade; bunker fuel; demand elasticity.
Simultaneous optimization of seaside operations in container terminals: A case study of the Iranian Rajaee port
by Seyed Farzad Hoseini, Mohammad Mohammadpour Omran, Adolfo Crespo Marquez, Ahmad Makui
Abstract: In marine transport, there is a growing need for optimization surveys, which are aimed at increasing the efficiency of the whole process. In this study, the berth allocation problem, the quay crane assignment problem and the quay crane scheduling problem are simultaneously formulated into an integrated mathematical model. Afterwards, the proposed mixed integer mathematical model is coded via GAMS IDE/CPLEX software. The exact solver appears to need a huge amount of time to find the optimum solution, even for small and medium-sized problems. Hence, artificial intelligence, which is embedded in both imperialist competitive and genetic algorithms, is employed through a highly modified meta-heuristic method. This method is called a hybrid imperialist competitive and genetic algorithm (HICGA), and is designed to deal with the complexity of such problems. To check the validity of the proposed model and the performance of the designed HICGA method, historical data for 24 weeks from the Iranian Rajaee port were provided.
Keywords: Container terminal; Berth allocation problem; Quay crane assignment problem; Quay crane scheduling problem; Imperialist competitive algorithm; Genetic algorithm.
AN EMPIRICAL ANALYSIS OF THE CRITICAL SELECTION CRITERIA OF LINER OPERATORS: THE PERSPECTIVE OF FREIGHT FORWARDERS
by Peter Dzakah Fanam, Hong-Oanh Nguyen, Stephen Cahoon
Abstract: This empirical paper identifies the critical factors influencing ocean container carriers selection and examines the impact of the influential factors on the competitiveness of ocean carriers from the freight forwarders perspectives. Data for the study was collected from 105 freight forwarding organisations. The significant factors influencing the competitiveness of ocean carriers were identified using structural equation modelling. Results indicated that the factors affecting the competitiveness of ocean carriers are schedule reliability, document accuracy, service quality, freight rate, door-to-door service and environment. This paper also proposes a model that shows the direct effects of the influential factors on the competitiveness of the ocean carriers. The model validates the competitiveness of ocean carriers from the freight forwarders perspective. To the best of authors knowledge, this study is the first of its kind that measures the competitiveness of ocean carriers from the freight forwarders perspective. This model can become a basis for other empirical studies to be built on to examine competitiveness of carriers. The understanding of the factors that the freight forwarders employed when making ocean carriers choice is paramount to the liner shipping companies because it shall enable the liner shipping companies to formulate relevant strategies to attract freight forwarders in patronising their shipping services.
Keywords: Competitiveness; ocean container carriers; freight forwarders; influential factors; liner shipping.
Special Issue on: Maritime Transportation Innovative Models and Algorithms
A multi-objective approach to analyze the effect of fuel consumption on Ship Routing and Scheduling Problem
by Saurabh Pratap, Mengdi Zhang, Christopher L.D. Shen, George Q. Huang
Abstract: This paper investigates the impact of fuel consumption on ship routing and
scheduling problem. In current trends, the anthropogenic emission due to excess fuel consumption is a topic of intense debate in the global world ship trading society. We have modeled a problem as a mixed integer non-linear programming (MINLP), which encounters the issues related to routing, fuel consumption, and customer demand. A meta-heuristic approach Controlled Elitist Non-Sorting Genetic Algorithm (CENSGA) has been proposed to solve the bi-objective problem. Finally, the utility of the model is demonstrated by a case study.
Keywords: Ship routing; carbon emission; mixed integer nonlinear programming; meta-heuristic.