International Journal of Shipping and Transport Logistics (42 papers in press)
A conceptual framework that monitors port facility access through integrated Port Community Systems and improves port & terminal security performance
by Ioannis Koliousis
Abstract: Ports and terminals are considered critical infrastructure with higher protection requirements for an effective and efficient operation. This research introduces a security enhancement architectural framework for the specific case of port and port terminal facilities passenger traffic, combining two different attributes, the cyber and the physical, and operationally integrating the proposed subsystem to the Port Community System. More precisely, this paper identifies, introduces and analyses a system that supports risk management by developing and validating a security framework which is based on monitoring access through Automated Border Control (ABC) structures aimed at ports and terminals. Additionally, the modular prototype developed, enhances the information sharing capabilities of the Port Community Systems in a way that improves collaboration for security related procedures, based on existing and easy to develop software capabilities. The architectural framework is validated by domain experts through semi-structured interview workshop improving the robustness of the top-down model for the design and the implementation of a risk management approach based on improved communication sharing and utilizing advanced equipment.
Keywords: Port Community Systems; security; risk assessment; risk management; automation; threat analysis; information sharing; access control.
Applying QFD to assess quality of short sea shipping: An Empirical Study on Cross-Strait high speed ferry service between Taiwan and Mainland China
by Sheng Teng Huang, Kuo Chung Shang, Chien Min Su, Ki Yin Chang, Yi Ting Tzeng
Abstract: The aim of this paper is to improve the quality of high speed ferry service between Mainland China and Taiwan. Since 2014, a shipping company in Taiwan has formally served the Taipei-Pingtan route connecting the Cross Strait passengers and cargo. Compared with air transportation, the high-speed vessel industry is particularly characterized by its relatively cheaper prices and convenience.
Tourist passengers are now the main users of high speed ferry service, and the number of business passengers still has the potential to grow. This research applies quality function deployment (QFD) to transform the voice of passengers to prioritize key technical measures for quality improvement. An empirical study is performed to evaluate the service quality of an anonymous entity in Taiwan. Through completing the house of quality (HoQ), important technical measures such as Professional crew and staff training in etiquette, No. of internal seminars and meetings for customer service, and ISO certificate and quality manual are the main findings to improve the high speed ferry service quality and its implications are revealed for practitioners, policy-makers and other stakeholders in relation to the high speed ferry industry
Keywords: high-speed ferry; quality function deployment; house of quality; service quality
Keywords: high-speed ferry; quality function deployment; house of quality; service quality.
Competitive Advantage Improvement Strategy of Container Shipping Industry: Case of Indonesia
by Bijaksana Gena, Daryanto Arief, Kusumastanto Tridoyo, Zulbainarni Nimmi
Abstract: Several previous studies have discussed the strategy of increasing the competitive advantage of the container shipping industry in a country level. However, it tends to use fragmented strategy approach. This research proposes its novelty using the MBV paradigm and encourages the implementation of a more comprehensive strategy at the national level, industry and corporate level by making SSCM a mediating factor in enhancing the competitive advantage of the industry. This research collecting respond from 100 higher management level of business user and actors of Indonesia container shipping industry. This research applies mixed methodology that using structural equation model partial leased square SEM-PLS and qualitative approach through in-depth interview and FGD. This research concludes that, there is three focuses of strategy to develop competitive advantages of container shipping industry in Indonesia: ensuring demand sustainability, increase sustainable supply chain performance and government support through regulation.
Keywords: Competitive Advantage; Container Shipping; SEM-PLS; Sustainability; Indonesia.
The Effect of Mergers and Acquisitions Announcements on Shareholder Value of Chinese Logistics Companies
by Weihua Liu, Cheng Si
Abstract: This paper studies the effect of M&A announcements on shareholder value of listed companies from Chinese logistics industry. Using event study method, this research examines the market reaction to 181 initial announcements of successful M&As between 2000 and 2016. Some important findings are obtained. Firstly, we found a significantly positive mean market reaction (1.125%) to successful M&As for acquiring firms. Secondly, the market reaction was more positive for firms with a higher level of logistics service integration. The higher the logistics subsector concentration, the higher the abnormal returns. The market reaction to mergers involving the vertical integration of logistics service is more positive than those involving the horizontal integration of logistics service. Finally, the post hoc analysis find that the market reacts negatively to failed M&As (-1.53%).
Keywords: M&A announcement; Stock market reaction; China’s logistics industry; Post hoc analysis; Event study.
A Value Chain Analysis of a Seaport from the Perspective of Industry 4.0
by Sedat Bastug, Gamze Arabelen, Ceren Altuntas Vural, Durmus Ali Deveci
Abstract: The main aim of this study is to reveal the role and contribution of Industry 4.0 in the value chain of seaports. It first reviews the literature to identify value chain activities in the port industry. It then explores the Industry 4.0 applications utilized by ports through content analysis of the websites of ten (10) major innovative seaports. Seven main technological characteristics of Industry 4.0, namely digitalization, autonomization, transparency, mobility, modularization, network-collaboration and socializing, are used as the main research main categories. The findings show that ports engage with Industry 4.0 in four different modules namely port community systems, cyber-physical systems, internet of things and big data. These four modules enable ports to achieve cost leadership advantages in their quest for competitiveness. To achieve differentiation, on the other hand, they need to increase connectivity with customers and stakeholders through communication channels such as social media.
Keywords: Industry 4.0; Seaports; Value Chain; Competitive Advantage.
Key antecedents to achieving flexibility in maritime logistics industry: empirical evidence from China
by Xiaohui Jia, Zhongzhen Yang
Abstract: The aim of this paper is to recognize key antecedents which are absolutely necessary to achieving flexibility in maritime logistics industry. Methodologically, personal interview and a three-round Delphi survey are used for data collection. We test the key antecedents and derive a ranking of the importance of these antecedents. These findings allowed us to build a model of key antecedents to flexibility in the industry. The Canonical Correlation analysis reveals that the interrelationships among sets of key antecedents are positive and strong. The results offer managerial insights for companies in the industry to improve their responsibility to uncertainty.
Keywords: antecedents; Canonical Correlation analysis; China; flexibility; maritime logistics; the Delphi technique; z-statistic.
Integrated dedicated berth allocation and specialized handling equipment assignment in bulk ports
by Dolores Perez, Jian Gang Jin
Abstract: This paper addresses the berth allocation problem in bulk ports to enhance the operation efficiency of a bulk cargo terminal by integrating the berth allocation and handling equipment assignment decisions. Apart from deciding where to berth a bulk carrier, ports must allocate specialized equipment based on the type of cargo the vessel carries. The proposed mathematical optimization model considers a discrete berth layout and specific transfer rates of handling equipment such as conveyor, pipelines, grab cranes and cement facilities, with the objective of minimizing the overall port stay time. The developed optimization model was tested with data retrieved from real-world bulk ports and it can be efficiently solved by the commercial solver CPLEX. Results show that it successfully assigns vessels to dedicated berths evading congestion. Furthermore, the model properly allocates berth positions and specialized handling equipment reducing the overall turnaround time, thus improving customer service.
Keywords: bulk port; berth allocation; handling equipment assignment; shipping logistics.
Shipbuilder country and second-hand price
by Floriano Pires Jr, Ricardo Fiasca, Luiz Assis
Abstract: The hypothesis that a shipbuilders country influences the second-hand price of ships is tacitly accepted by most market analysts and practitioners. This article presents an econometric analysis to test this hypothesis. The analysis is based on econometric modelling of second-hand ship prices. The regressors include ship deadweight, ship age, indexes of earnings and newbuilding prices, LIBOR, and dummy variables that represent the build country or region. Models specific for tankers, bulk carriers and containerships were estimated. The analysis has generally shown that the effect of a ships build country on the second-hand price may be statistically significant. Additionally, an assessment of the time evolution of this effect has been performed on bulk carriers built in Japan that were sold from 2003 to 2017. The results indicated some negative correlation between the market state and the price differentials associated with the build country.
Keywords: second hand ship price; shipbuilding country and ship value; shipping econometrics; shipping markets; ship price modelling; bulk carriers second hand value; tankers second hand value; containerships second hand value; econometric modelling; second hand ship price influencers.
An evaluation of alliance motives, shipping alliances, and alliance performance in Taiwan
by Chung-Shan Yang
Abstract: We introduce the transaction cost and market entry views as two critical motivations for shipping alliances and argue that shipping alliances increase alliance performance (i.e., improve oversupply, financial distress, and excessive competition). This study empirically evaluated the effects of transaction cost, market entry, and shipping alliances on alliance performance in a maritime shipping context. Data were collected from a survey of the Directory of the National Association of Shipping Agencies and Companies. A factor analysis was employed to identify the key dimensions, and a subsequent analysis was conducted using a structural equation model to test the research hypotheses. The findings show that shipping alliances act as a mediator variable between transaction cost, market entry, and alliance performance. The theoretical contributions and managerial implications are proposed to serve as a basis for a wider discussion of shipping alliances.
Keywords: Shipping alliances; transaction cost; market entry; alliance performance.
Modeling and quantifying the effects of trade facilitation on trade and international transport costs using the Logistics Performance Index
by Riadh Harizi
Abstract: In order to investigate and analyze the factors behind the promotion of international trade, we propose the Logistics Performance Index (LPI) as a way to measure the facilitation of international trade. We suggest modeling transportation costs and their impact on trade according to a gravity approach. The impact of the LPI appears to be robust to the preferred specification (basic or with fixed effects) and to the different implemented econometric techniques (OLS, Tobit, PMLT), to the extent that we always obtain a significantly positive impact of the LPI for both the importing and exporting countries. Our results reveal two major mechanisms: (i) an improvement of the logistics performance index leads first to a reduction in transportation costs, and (ii) it further results in the expansion of trade. Econometric tests also show that a 10% increase in the index positively affects the probability of trade occurring, with it increasing by 30% in the importing country and by 40% in the exporting one.
Keywords: Gravity modeling; Heckman techniques in two steps; International trade; Logistics Performance Index; Transportation costs.
Modelling Inland Terminal Locations Based on Transport Cost Optimization
by Tomislav Rožic, Kristijan Rogic, Božidar Ivankovic
Abstract: The position of inland terminal in transportation network depends on several elements. Selection of these elements has significant influence on its final location. This paper presents the quantitative method to define the optimal location of inland terminal in a node of railway network, primarily based on transportation cost savings. The key condition of the model is that all containers that are currently transported by road are to be transported primarily by rail from the seaport to the proposed location of the inland terminal. Onward transport to the destination can occur by road, rail or inland waterway where possible.
The model was validated on a real network, where the first point of entry is the Port of Rijeka (seaport) in Croatia, and the possible location of inland terminal is in the Port of Rijeka hinterland (inside the Croatian borders). The application of the model on a real network has proven its usefulness, especially in the case when there is need for additional criteria in the decision process of determining the inland terminal location.
Keywords: inland terminal; inland terminal location; transport cost optimization; modelling in logistics.
Economic Impacts and Significance of the Cruise Ports in the United States
by Grace Wang, Wen-Huei Chang, Yue Cui
Abstract: There are more than 50 federally authorized ports in the U.S. with presence of cruise ships, where the US Army Corps of Engineers (USACE) is responsible for construction, operations, and maintenance. However, federal budgetary funds are allocated mostly based on tonnages and commodities shipped rather than the number of passengers served. We aim to establish the economic impact platform to capture the complexity and the uniqueness of a cruise port in the value-added chain. From what comprises a cruise maritime cluster and to what extent core cruise business are integrated, the economic impact of a cruise port is much different from the existing literature considering only passenger consumption. A comprehensive model with port, cruise line operation, and the role of related business in the supporting industries is proposed. Through the simulation platform proposed, economic impacts on one the busiest cruise ports in the United States, Canaveral Harbor Florida, is calculated.
Keywords: cruise; economic impacts; cruise operation.
Risk in Port Logistics: Risk Classification and Mitigation Frameworks
by Kee-hung Lai, Markus Vejvar, Venus Y. H. Lun
Abstract: Ports are important nodes in maritime transportation networks. However, port managers face different types of risks in port operations which may disrupt cargo flows in the logistics chain. These risk factors are expected to increase in view of such global issues as climate change and geopolitical changes. An overview of risk classifications and mitigation strategies in port logistics can help academics and practitioners prepare for managing port logistics risks. This paper identifies and classifies risk in port logistics and proposes frameworks for managing risk and formulating mitigation strategies based on the two examples of the Ports of Rotterdam and Hong Kong. Our findings advance knowledge on the different risk factors with a practical step-by-step approach for addressing the risk in port logistics.
Keywords: port operations; risk classification; risk management; maritime logistics; continuous improvement.
Finding the Optimal Order of Priority for Dry Port Construction: Case Study in the North of Vietnam
by Viet Linh Dang, Gi-Tae Yeo
Abstract: The development of the Vietnam dry port system is facing many difficulties, especially in matters of calling for investment as well as synchronization in developing transport infrastructure, such as between rail systems and dry port networks. The purpose of this study is to apply multiple-criteria decision analysis (MCDA) to investigate the determinants in prior implementations of dry port construction, as well as find the order of priority for dry port construction in Northern Vietnam. The results indicate that the possibility of transportation cost reduction is the most important factor, followed by the accessibility to highway road infrastructure and to seaports. Phu Dong dry port is indicated as the first port that should be invested in, thanks to its superiority in terms of geography, its ability to connect with the means of transportation as well as other factors, followed by the dry ports of Huong Canh, Lang Son, and Cao Bang.
Keywords: Dry port; MCDA; Fuzzy Topsis; Fuzzy Delphi; Optimal Order; Vietnam.
The most common type of disruption in the supply chain - evaluation based on the method using Artificial Neural Networks
by Augustyn Lorenc, Malgorzata Kuznar
Abstract: The article focuses on intermodal transport. Developed method was used in article to estimate the most common type of disruptions in supply chain, which turned out to be a cargo theft during road transport, and hence the probability of theft risk appearance, but presented in the article method can be useful to estimate the probability of appearance other types of disruptions in the supply chain. The article presents an outline of a complex method uses ANN for identifying and forecasting disruptions in the supply chain. This method is based on the latest data of disruptions in the supply chain, which allow for appropriate response to supply chain disruptions in order to minimize losses and costs associated with losses The developed model can be used to support decisions about additional cargo insurance for high risk of theft transport cases or the usage of monitoring systems for the location or parameters of the cargo.
Keywords: intermodal transport; supply chain disruption; supply chain resilience; cargo parameters monitoring; risk appearance in transport chain; intermodal transport risk.
Coordination mechanism framework for container dwelling time reduction
by Femi Yulianti, Senator Nur Bahagia, Andi Cakravastia, Rajesri Govindaraju
Abstract: Dwelling time contributed 36.3% to the total time of land transportation in 2017 and is one of the commercial instruments to attract cargo and generate revenue. The government of Indonesia has attempted to reduce dwelling time by improving infrastructure and reforming bureaucracy but so far has paid little attention to straightening out coordination mechanisms between actors. Few studies have been conducted on port management integrated planning and control of all seaport areas and on coordination mechanisms related to dwelling time. This paper seeks to fill this gap with the question: How can coordination mechanisms between actors be conducted to reduce dwelling time? For answering this question, a coordination framework was built as the basis for the development of three coordination mechanism models.
Keywords: container; coordination; dwelling time; port.
The volatility transmission between crude oil market and tanker freight market
by Lei DAI, Hao HU, Yu TAO, Seungwon LEE
Abstract: International crude oil and tanker shipping markets interrelate closely not only because tanker is the main mode of transportation for transporting crude oil but also the major cost of shipping
Keywords: Crude oil price; Tanker freight; Volatility; BEKK-GARCH model.
Evolution and container traffic prediction of Yangtze River Delta multi-port system (2001-2017)
by Hongxiang Feng, Manel Grifoll, Pengjun Zheng
Abstract: Yangtze River Delta (YRD) region is a port agglomeration with the densest port distribution and highest throughput in China. Since 2003, three mega provincial port groups: Shanghai International Port (Group) CO., LTD. (SIPG), Zhejiang Province Seaport Investment & Operation Group Co. (ZPSIOG) and Jiangsu Port Group Co., Ltd. (JPG) formed in YRD multi-port system. Firstly, this contribution investigates the latest concentration tendency of YRD multi-port system with Concentration-Ratio, Herfindahl-Hirschman-Index and Shift-Share-Analysis. Results show that ZPSIOG is the major winner; SIPG is losing its oligopoly since 2012; SIPG, ZPSIOG and JPG are reaching a tripartite equilibrium in market share. Secondly, the contribution uses ARIMA model, linear regression model and GM (1, 1) model to forecast container throughput of SIPG, ZPSIOG, JPG and YRD. By mean absolute percent error (MAPE) criteria, all models have good or reasonable performance, ARIMA model obtains the best performance with MAPE of 2.37%, 2.41% and 6.54% when time series seem linear, however does not have excellent performance (MAPE is 14.26%) when time series is non-linear. Finally, we compare the indirect and direct method to forecast the YRD container throughput. In this case, the MAPE decreases from 6.54% to 3.85% respectively using the ARIMA model, which supports the out-performance of indirect forecast method. The combination of the analysis of the concentration index and forecasting methods has allowed to gain insight in the evolution and prospects of YRD container multi-port system.
Keywords: concentration; ARIMA; grey system; linear regression; indirect forecast.
International intermodal container shipping network in South Asia: Modelling and policy simulations
by Ryuichi Shibasaki, Tomoya Kawasaki
Abstract: This paper focuses on the international intermodal container cargo shipping network in South Asia. A two-layered network assignment model of international container cargo is applied to this region, for simulating the impact of policies designed to increase the level of international logistics infrastructure. The first simulation, which focuses on the improvements of the road and rail networks around the largest port in this region (Jawaharlal Nehru Port Trust, or JNPT), reveals that Indian west coast ports are very competitive in acquiring cargo both originating from and destined to Delhi. More importantly, these west coast ports face critical capacity constraints for hinterland shipping around JNPT. The second simulation estimates the effect of the recommencement of the international ferry connecting South India and Sri Lanka and suggests that the reduction of cross-border barriers and improving connected rail services are essential for promoting the international ferry service.
Keywords: intermodal transport; global maritime container shipping; network assignment; South Asia; logistics policy simulation.
Solving the Empty Container Problem using Double-Container Trucks to Reduce Vehicle Miles
by Santiago Carvajal, Maged Dessouky
Abstract: This paper proposes a mathematical model for the empty container reuse problem using double-container trucks. The model discretizes time and makes sure demand is met. Several model properties are presented, along with two heuristics that allow the model to be solved. By solving the empty container reuse problem, truck miles can be reduced since less truck trips are needed to satisfy the demand. Furthermore, since double-container trucks can deliver two containers per truck trip, the amount of trucks needed to satisfy the demand is decreased even more, further reducing truck miles. This will in turn make the system more environmental friendly. The model is then tested using the data from the Ports of Los Angeles and Long Beach, and on randomized data sets.
Keywords: container management; empty container problem; integer programming; double-container trucks.
Green Port Performance evaluation under uncertainty: A multiple attribute group decision analysis
by Dan Zhao, Tiantian Bao, Kevin Cullinane, Yuhong Wang
Abstract: This paper aims to assess the performance of a port within the context of its supply chain on the basis of integrating a five-dimensional balanced scorecard with green performance criteria. A multiple attribute group decision making (MAGDM) approach is proposed which encompasses both intuitionistic fuzzy set theory and evidence theory in order to properly represent and aggregate the uncertain information which prevails within any process of such an evaluation. With an empirical application, the evaluation results provide effectively not only the ranking order of all alternative port enterprises, but also the strengths and weaknesses of each one, at the detailed level of individual performance attributes.
Keywords: MAGDM; Green port; Supply chain management; Performance evaluation; Intuitionistic fuzzy set; Evidence theory.
Information Sources Used By Charterers to Select Shipowners
by Sedat Bastug, Durmus Ali Deveci
Abstract: This study aims to identify the information search behaviour of charterers in selecting shipowners within a business-to-business framework. It focuses on charterers information sources and how different factors (individual, organizational, and purchase-related) affect the information search since this construct is a major component of comprehensive theories of organizational buying behaviour. Understanding the buying behaviour of charterers also helps marketers to increase customer satisfaction. The analysis is based on questionnaire responses from 141 firms that have recently chartered vessels. From a principal components analysis, the study identified eight sets of information sources, of which impersonal, emails and reference-based information were the most important. The results show that the business-to-business information sources used by ship charterers vary significantly according to organization size, centralization, type of purchase, purchase complexity and experience. Further analyses revealed a significant relationship between these factors and business-to-business information sources, specifically between the importance of the purchase, perceived risk, formalization, standardization, personal stake, specialization, and use of information resources. Finally, the study revealed a significant relationship between business-to-business information sources and customer satisfaction.
Keywords: Information Sources; Ship Chartering; Business to Business services; Industrial Buying.
Emission Accounting of Shipping Activities In the Era of Big Data
by Yuwei Yin, Jasmine Siu Lee Lam, Nguyen Khoi Tran
Abstract: Maritime transportation has generated a considerable amount of emissions and affected the global atmospheric environment. A key step of effective emission control is to construct reliable models of emission accounting. In recent years, there has been a major innovation in emission accounting, the application of big data, especially the data extracted from Automatic Identification System (AIS). In this paper, a dynamic and comprehensive analysis is developed to depict how emission accounting models have been evolved in this era of big data. In the perspective-based review, we thoroughly investigate the geographical coverage and pollutant types involved in the existing emission studies. In the process-based review, this paper establishes a solid knowledge framework of the two basic modelling concepts: top-down and bottom-up approaches. Furthermore, updated emission modelling methodologies and high resolute data sources are introduced. But the latest models are still subject to various sources of uncertainties. Hence, this paper identifies such unsolved problems and sets up a future research agenda.
Keywords: Emission Accounting; Big Data; Bottom-up model; Top-down model; Ship emission; CO2 emission; Greenhouse gases; Automatic Identification System (AIS) data.
SYMMETRIC AND ASYMMETRIC RELATIONSHIP BETWEEN MARITIME TRANSPORTATION AND FOREIGN TRADE VOLUME
by Dilek Temiz Dinç, Huseyin Karamelikli
Abstract: In this study, the short and the long-run relationship between maritime transportation and foreign trade volume and also the linear and nonlinear characteristics of this relationship were investigated. Linear relations between maritime transportation and foreign trade volume were analyzed by the autoregressive distributed lag model (ARDL), and nonlinear relations were analyzed by the nonlinear autoregressive distributed lag model (NARDL) by using monthly data between 2004 and 2018 in Turkey. According to the results, it was revealed that only the short-run asymmetry and long-run symmetry model was statistically valid and that results should be taken into consideration.
Keywords: symmetric relationship; asymmetric relationship; nonlinear model; maritime transportation; foreign trade volume; economics; logistics.
Evaluating employees perception toward the promotion of safety marketing at ports
by Chia-Hsun Chang, Chi-Chang Lin
Abstract: This research aims to evaluate the effects of safety marketing on employee safety climate, safety attitude, and safety behaviour in the context of logistics operations at ports in Taiwan. Exploratory factor analysis is initially proceeded to identify the key factors of safety marketing and safety climate. Confirmatory factor analysis and Structural Equation Modelling examined the effects between safety marketing and safety climate on employees safety attitude as well as behaviour. Regression analysis determined whether moderating effects of supervisors safety commitment exist on the relationships from both safety marketing and safety climate to safety attitude. Results reveal that safety marketing has a positive effect on safety climate and employees safety attitude, while a non-significant effect on employees safety behaviour. Meanwhile, safety climate has a positive effect on employees safety attitude. Results also show that a higher attitude of supervisors safety commitment will enhance the effects of safety marketing and safety climate on employee safety attitude.
Keywords: Safety marketing; safety climate; ; safety attitude; safety behaviour; supervisor’s commitment.
Logistics Quality Management Practices and Performance of International Distribution Center Operators
by Ching-Chiao Yang, Christina W.Y. Wong, Ting-Yu Liao
Abstract: This study quantitatively examines the enabler and performance outcomes of logistics quality management in the context of international distribution center operators based on absorptive capacity theory. Totally, 110 usable surveys were collected by the questionnaire survey and a two-step structural equation modeling (SEM) approach including confirmatory factor analysis (CFA) was subsequently employed to evaluate the values of logistics quality management. Results of SEM show that logistics information integration is positively related to the implementation of logistics quality management, which in turn has a positive impact on logistics services and organizational performance. Findings also confirm the mediating roles of logistics quality management and logistics service performance in this study.
Keywords: Absorptive capacity theory; Logistics information integration; Logistics quality management; Structural equation modeling.
The Effectiveness of Freight Costs on Trade Potentials Between China and European Union, Middle East, North African Countries Under China-Pakistan Corridor
by Osman Ghanem
Abstract: The study tries to estimate the trade potentials might be raised by comparing the current maritime route of one belt one road initiative and new maritime route in particular with the China-Pakistan corridor as a result of the changing freight costs, shipping period and distance between European Union (EU), Middle East, North African countries (MENA) and China. To estimate trade potentials, qualitative and descriptive statistical methods will be used to compare the real and predicted trade. The results suggest that China and the European Union (EU), Middle East and North African countries (MENA) can increase trade potentials and show that average predicted freight costs, shipping period and distance between china and European Union (EU) are decreased by $1545, 16.3 days and 10084 km respectively, and the average predicted freight costs, shipping period and distance between china and Middle East and North Africa (MENA) are decreased by $1695, 17.2 days and 10477 km respectively.
Keywords: freight cost; trade potential; EU; MENA; China-Pakistan corridor.
Economic Route Selection under the Integrated Operation Mode: Case Study of China Railway Express in Zhengzhou
by Xuefeng Wang, Yangyang Gu, Jiawei Ge, Liming Sun
Abstract: As a derivative and symbol of the Belt & Road Initiative (BRI), local governments in China raced to launch block trains to Europe, so called the China Railway Express (CR Express), isolating the economic potential of Euroasia rail transportation. From a logistic integration perspective, this paper establishes a multi-objective optimization model to find the optimal economical route by improving traditional route selection model, where the influence of the transportation mode and route is considered comprehensively. The genetic algorithm is applied to encode and solve the model. A case study is conducted to evaluate the economic benefit of various modes and route choices from Chinas cities to Lodz in Europe via Alataw. The findings show that the performance of an integrated operation in Zhengzhou is better than that of isolated operation. Compared with the isolated operations in various places, overall logistics time of integrated operation in Zhengzhou decreased by 7.14%, while the overall container logistics cost per unit decreased by 13.64%.
Keywords: CR Express; multi-objective; genetic algorithm; economic route selection; operation mode.
A Methodology to Classify Interventions in Ports Demand Series Changes Applyed to Brazilian Ports
by Francisco Gildemir Ferreira Da Silva
Abstract: The institutional, commercial and economic structure in Brazil has changed so far. In recent decades, Brazilian ports have changed operations or infrastructure through government intervention or exogenous disruption. In addition, Brazilian ports suffered some impacts, essentially, on the dynamics of port demands. The assumptions that economic series follow trends that are interrupted by external or intended interventions are very fruitful today. Some empirical approaches to measure the break point or magnitude of the breakdown in an economic series have been proposed by some economists. Notably the analysis of time series interventions was used in this work. Methodologically, the intervention was classified by measuring magnitude, direction and signal via univariate time series models. Following, the common characteristics of each intervention were compared, summarizing the common characteristics of the interventions. The proposal is important for political decision makers, particularly in a regulated market such as the Brazilian port. Classification can guide models of port demands for policy making to increase port efficiency, making ports more operationally effective. Method results can be used to select and use dummies in policy evaluation, such as increased infrastructure investment or protection of the port backwater area.
Keywords: Intervention Impacts Technique; Port Demand; Time Series Analysis.
A fuzzy AHP approach to evaluating differences between ocean container carriers and their customers
by Ayfer ERGIN
Abstract: The study has investigated ocean container carrier selection criteria in order to determine the differences and similarities between carriers and their customers in the Turkish market. In application, four separate groups have used: carriers, freight forwarders, shippers, and consignees. For the first time, differences in perspective between carriers and their customers are studied in Turkey, eliminating the gap in knowledge about this market. It is also the first study to utilize fuzzy Analytical Hierarchy Process (AHP) method to examine the differences in perceptions between ocean container carriers, freight forwarders, shippers, and consignees. This study contributes to the literature by employing both a new region and an unused method. The studys findings are that the most important sub-criterion for carriers and freight forwarders was low freight; meanwhile, the most important criterion for shippers was determined to be equipment availability. The most important sub-criterion of consignees was on-time notification of the customer.
Keywords: ocean container carriers; freight forwarders; shippers; consignees; fuzzy Analytical Hierarchy Process (AHP); Turkish liner shipping market.
Analysis of the Effect of Cruise Service Supply Chain Network Properties on Economic Profits
by Ling SUN, Wei Liu, Hanwen Zhang, Yan Jin, Gaoqiang Zhuo
Abstract: The cruise service supply chain (CSSC) is an integrated supply chain dominated by the cruise tourism service. It consists of a series of demand service providers, such as food, accommodation, transportation, travel, shopping, and entertainment. Based on social network theory, we outline the network properties of CSSCs. Using game theory models, we compute the profit distribution in a simplified version of the CSSC network. After studying different cooperation strategies among network members, we find that the overall network profit and profit distribution change with the network properties. When the network range and scale are fixed, the overall profit of the network increases with the relationship persistence, relationship strength, and cooperation between network members, while it decreases when there is top-down exploitation among network members. After evolving rules of the network structure, this paper This paper further refine the research based on the proposed growth path of CSSC, which is exactly from the centralized network to the distributed network and finally to the interconnection network. It is consistent with the decentralized trend of the block chain. Eventually this paper provides recommendations for the development mechanism of each CSSC network growth stage and for enhancing cooperation among network members.
Keywords: cruise service supply chain; profit distribution; network property; centrality; structural hole.
Model and Algorithm for Vessel Scheduling Optimization through the Compound Channel with the Consideration of Tide Height
by Bin Zhang, Zhongyi Zheng
Abstract: To optimize vessel scheduling passing a compound channel with the water depth influenced by the periodic tide, this study establishes the vessel scheduling model through a typical tidal compound channel. In addition, based on the actual tidal data of the channel, a tide height computation function varying with time is obtained. Then a designed genetic algorithm (GA) is utilized to verify the model by the actual vessels' data through the Tianjin port fairway. The test experiment shows that the organization efficiency is better than other methods, including larger draft vessels first (LDF), First Come First Served (FCFS), random scheduling (RS) and manual scheduling. It can take full advantage of the high tide and improve the vessel scheduling efficiency of a compound channel. With minor alterations, the proposed model and designed algorithm can also serve for vessel traffic organization in other compound channels affected by tide water as well.
Keywords: compound tidal channel; tide height computation; optimization; vessel scheduling model; genetic algorithm.
On the Application of Uncertain Three-player Two-stage Game to the Competition among Shipping Alliances
by Thi Minh Hoang Do, Gyei-Kark Park, Kyoung-Hoon Choi, Xiangfeng Yang
Abstract: The financial crisis in 2008 has had a negative impact across all economic sectors, especially the shipping industry. Consequences of which include low freight rate, decreasing demand, overcapacity, historical low profit and even bankruptcy. Most of the top container lines have formed strategic alliances in order to strengthen their market coverage to avoid collapse; however, the fierce competition among such powerful carrier groups and group members is becoming a major concern. The purpose of this paper is to examine the competition from a pricing perspective and capacity expansion among the recently established alliances namely 2M+H, The Alliance and Ocean Alliance. An uncertain competition game model is built using game theory and uncertainty theory and the Nash equilibrium prices and expansion decisions of the three players are found accordingly. The ideas from experts in the field were employed to measure the uncertain future container demand and real data were used to validate the game model. The results from the research suggest that the forecasted container growth rate in Transpacific trade route is 2.65% in the next five-year period. Such a modest demand growth rate, low vessel utilization, high idle ship expenses and high investment cost discourage all alliances from investing in new ships at the same time to prevent further financial loss. Therefore, it is recommended that the number of new ship orders should be reduced at this moment in time and alliances strategic actions should be made to rebalance the shipping industry.
Keywords: container lines; competition; strategic alliances; game theory; uncertainty theory; expansion decisions; three players.
Simulation of Truck Arrivals at Container Terminal Based on the Interactive Truck Appointment System
by Qianqian Shao, Mingxia Huang, Siqi Zhang, Yunfeng Zhang
Abstract: Truck appointment system (TAS) is used to regulate the number of trucks that can enter the terminal. However, because of the limited number of quotas, TAS is incompetent to fully meet all requirements of time window for individual truckers. In order to avoid the limitation of TAS, a simulation-based truck appointment mechanism named interactive appointment system (IAS) was proposed with the purpose of balancing truck arrival peak and reducing truck turnaround time. IAS allows the trucker to get the estimated truck turnaround time over his preferred arrival time interval when making an appointment application. This can assist him to choose a reasonable appointment arrival time. Moreover, a discrete event simulation model was formulated to estimate truck turnaround time, through describing the tri-stage queuing system (gate-parking lot-yard) of terminals, with considering the interference of block occupying brought by ship discharging/loading operations. Results of a series of experiments demonstrate the effectiveness and robustness of IAS on alleviating congestion inside/outside terminal and decreasing truck turnaround time. In addition, how the parking quantity of parking lot influences the efficiency of terminal queuing system was also discussed in this study.
Keywords: container terminal; container logistics; truck appointment system; terminal parking lot; terminal congestion; truck arrival time; truck arrival peak; simulation modelling; queuing model; turnaround time.
Container barge (un)reliability in seaports: A company case study at the port of Antwerp
by Virzhiniia Oganesian, Christa Sys, Thierry Vanelslander, Edwin Van Hassel
Abstract: Inland waterways and ports play an important role in the entire transport system in the Hamburg Le Havre range, and for the seaports of Antwerp and Rotterdam in particular. The high proportion of inland navigation for both ports can be explained by reasons such as an extensive network along with a safe, reliable, sustainable and cost efficient transport. However, despite all these advantages, container barge transportation still faces certain challenges.
A major challenge relates to the unreliability of barge handling in large seaports, affecting overall performance of barge services essentially. This research shows that barge congestion exists, and it examines the causes of the observed phenomena. Next, it also provides an overview of solutions that are being developed in the port of Antwerp to improve and optimize container barge handling. Last, a case study is developed for a company that is located in the near proximity of the port of Antwerp, where the impact of barge handling unreliability is analysed.
Keywords: hinterland transport; inland navigation; inland port; container barge handling; supply chain.
Time Series Forecasting of Domestic Shipping Market: Comparison of Sarimax, Ann-Based Models and Sarimax_Ann Hybrid Model
by Cemile Solak Fiskin, Ozgu Turgut, Sjur Westgaard, A. Güldem Cerit
Abstract: Seaborne transport forecasting has attracted substantial interest over the years because of providing a useful policy tool for decision-makers. Although various forecasting methods have been widely studied, there is still broad debate on accurate forecasting models and preprocessing. The current paper aims to point out these issues, as well as to establish the forecasting model of the domestic cargo volumes using SARIMAX, MLP, LSTM and NARX and SARIMAX-ANN hybrid models. Based on the domestic cargo volumes of Turkey, findings suggest that SARIMA-MLP models can be considered as an appropriate alternative, at least for time series forecasting of shipping. Pre-processed data provides a significant improvement over those obtained with unpreprocessed data, with the accuracy of the models found to be significantly boosted with the Fourier term of decomposition. The results indicate that SARIMAX-MLP, with a mean absolute percentage error (MAPE) of 4.81, outperforms the closest models of SARIMAX, with a MAPE of 6.14 and LSTM with Fourier decomposition with a MAPE of 6.52. Findings have implications for shipping policymakers to plan infrastructure development, and useful for shipowners in accurately formulating shipping demand.
Keywords: time series forecasting; shipping; artificial neural network; ARIMA; machine learning; hybrid model.
A simulated annealing-based approach for a real case study of vehicle routing problem with a heterogeneous fleet and time windows
by Jose Bernal, John Wilmer Escobar, Rodrigo Linfati
Abstract: We propose a meta-heuristic algorithm for addressing a real case of vehicle routing problem with a heterogeneous fleet and time windows. Our proposal consists of generating an initial feasible solution using the solution of a travelling salesman problem and, subsequently, refining it through simulated annealing. In this work, we evaluate the suitability of our development to planning the distribution of a regional distribution center of a food company to customers within the urban perimeter of Cali, Colombia. Following the companys customer satisfaction goals, our primary aim is to route to reach a service level of 95% while reducing operational costs. Our results on our real case study show that our meta-heuristic algorithm finds better routes than current ones, in terms of costs and service levels, in a relatively short time.
Keywords: Vehicle routing; heterogeneous fleet; time windows; meta-heuristic; simulated annealing.
Nash Bargaining of Transportation Rates with Flow Imbalances
by Marcos Singer, Ignacio Pardo, Ricardo Sánchez
Abstract: Consider two points, A and B, which trade products with a flow imbalance. We postulate that shippers at A face an implicit negotiation with the shippers at B regarding who must bear the cost of a vehicle traveling back and forth. Following the Nash bargaining model, we deduce that the ratio (freight rate A-to-B) / (freight rate B-to-A) changes linearly with the ratio (flow B-to-A) / (flow A-to-B). We validate our model with evidence from previous publications and with quarterly data from the Transatlantic, Transpacific and Europe-Asia maritime routes from 2003 to 2012.
Keywords: Transportation rates; Flow imbalances; Nash bargaining; Maritime routes; Backhaul problem.
Firms’ Operational and Logistics Characteristics and Realisation of Business Analytics Benefits: Evidence from Stock Markets
by L. M. Daphne Yiu, Andy C. L. Yeung, Hugo K. S. Lam, T. C. E. Cheng
Abstract: The idea of “big data” provides practitioners in the logistics industry with valuable opportunities to improve their operational efficiency and economic performance. In fact, business analytics techniques are increasingly being used in international logistics, shipping, and supply chain management. We examine the impact of business intelligence (BI) system adoption on firms’ market value and the influences of the operating characteristics and contexts of firms. Specifically, we examine whether the impacts of BI adoption is contingent on industry competitiveness, firms’ operating cycle, and industry munificence. Using the event study methodology, we analyse 272 manufacturing firms in the United States that adopted BI systems from 2005 to 2014. We find that BI adoption does not have an immediate impact on firms’ stock returns, but such impact is significantly enhanced for firms in highly competitive industries, and those with short operating cycles and high industry munificence, i.e., high-growth industries, suggesting that firms in fast-changing dynamic environments find BI systems much more useful.
Keywords: business intelligence systems; stock returns; industry competitiveness; operating cycle; industry munificence
Special Issue on: Port Sustainability and Resilience
A Holistic Sustainability Framework for Oil Terminals: The Case of China
by Xuemuge Wang, Shaofeng Liu, Jingjing Xu, Michael Roe
Abstract: This research provides a sustainability framework for the Chinese oil terminal sustainability performance evaluation in oil terminals operational and managerial conditions. Due to the lack of holistic oil terminal sustainability research in the existing literature and the increasing demand for sustainability pursuits, the developed sustainability framework is expected to be able to act as holistic guidance for port managers to systematically improve oil terminal sustainability performance by showing which indicators and groups should be considered. In the beginning, a rich amount of comprehensive existing Sustainability Performance Indicators from the literature are identified. Then, by the conduction of semi-structured interviews with 34 experts within the field, omitted practical or included unpractical indicators are added to / eliminated from the framework to finalise a holistic and practical Chinese oil terminal sustainability framework. After the thematic analysis of interview results, 14 categories and 65 indicators are identified for the practical holistic sustainability framework. Convincingly, this research emphases combining theories into practices via the validation and replenishment of the existing Sustainability Performance Indicators by experts to enhance the reliability and feasibility of the forwarded sustainability framework. As a result, this research contributes to the existing literature a holistic oil terminal sustainability framework, and for the first time assimilates the overproduction issue into terminal sustainability management.
Keywords: Sustainability Framework; Sustainable Indicators; Oil Terminal; Port Overproduction.
Service recovery and customer satisfaction in container liner shipping industry An ordered LOGIT approach
by Enna Hirata
Abstract: This paper assesses the responsiveness of service recovery process to customer satisfaction in container liner shipping (CLS) industry. The research deals with real-world business events, conducted using a survey method, in which customers evaluate service recovery scenario and complete a questionnaire with respect to CLS carriers they had recently patronised. Estimated by ordered logit regression method, the results show that timeliness of communication is the most significant service recovery attribute. It also finds that customers in different segments prefer receiving recovery resources in different ways; effective service recovery could help improve customer satisfaction and service recovery paradox exists in the industry. The findings contribute to the understanding of theoretical explanation of service recovery attributes and provide managers with useful guidelines for establishing effective recovery process. Unlike other research, this paper draws on data from actual customers in CLS industry and therefore benefits from increased external validity.
Keywords: container liner shipping; CLS; service recovery; customer satisfaction; BCO; beneficial cargo owners; FFW; freight forwarders; service recovery paradox; ordered logit model; survey; recovery attributes; external validity.
An empirical investigation of green shipping practices, corporate reputation and organizational performance in container shipping
by Kelvin Pang, Lu Chin-Shan, Kuo-Chung Shang, Hsiang-Kai Weng
Abstract: This research examined the effects of green shipping practices on corporate reputation and organizational performance amongst container shipping firms. Structural equation modelling was employed in this study using survey data collected from 130 container shipping firms in Taiwan. Results indicated that green shipping practices are positively associated with organizational performance, and corporate reputation positively influences organizational performance. This research also found that corporate reputation mediates the effects of green shipping practices on organizational performance. This study suggests that container shipping companies could enhance their environmental responsibility to improve their corporate reputation and organizational performance. The implications of the findings are discussed.
Keywords: green shipping; container shipping; corporate reputation; organizational performance.