Competition in cargo-handling: some comments

This article offers some comments on a paper by R. O. Goss appearing in No. 1, Vol.9 of this journal. Goss outlined therein the activites of a small number of competing private sector cargo-handling companies suggesting than the prevalent inefficiencies and excessive costs associated with these firms may be linked to a lack of real competition. The present author, whilst conceding that increased competitiveness may be linked to a lack of real competition. The present author, whilst conceding that increased competitiveness may ameliorate this, argues that other factors-the organizational structure of the company and the market in which it must operate-may in fact work against the proper functioning of a competitive system, and that concentration may not only be inevitable but even desirable.     

Evolving competition between Hong Kong and Shenzhen ports

Shenzhen Port (SZP), once a negligible local port, has risen dramatically to a world-leading container port and an “equal” player with Hong Kong Port (HKP). Will this market share reallocation continue, or will equilibrium be eventually realized for HKP to prosper continuously? We examine the relationship between these two ports to answer this question. We propose a new transformation method to describe the growth of container cargo transport demand, define the quantitative measures of the competition relationship and port competitiveness, and present a rigorous analytical framework with econometric tests and models to understand the true relationship between HKP and SZP. Direct empirical tests suggest that SZP complements HKP; however, the two ports exhibit strong competition when the effect of demand growth is excluded. Considering transshipment separately, we find that the impact of SZP on HKP is negative in transshipment but complementary in direct shipment. We may conclude that HKP does not affect SZP, whereas SZP has competitive power over HKP. These results are consistent with the findings of some previous theoretical studies.     

Emerging organizational values in shipping: Part 1. Crew stability

In this paper, Smith and Roggema examine the solutions emerging in answer to the growing concern in North European shipping companies to adapt to increasing competition and technological diversity and also to attract and retain suitably qualified seafarers. Part 1 describes a move from a situation of lack of stability of crew towards greater crew stability, whilst Part 2 discusses the redistribution of responsibility on board ship, encompassing a change from the caste-like division between officers and ratings and a more flexible division of functions and authority.     

An empirical assessment of relational competitive advantage in professional ship management

Intense competition in many sectors across the maritime industry and in professional ship management in particular, means that the quest for achieving competitiveness will continue and intensify. A review of the current strategies across many sectors of the industry indicates the importance of forging stable partnerships for the achievement of competitiveness. Considering that the capability to form a relationship is an intangible resource (as depicted in resource-advantage theory), an empirical assessment in the context of ship management was undertaken. The assessment aimed to identify the type of relationships present in ship management, and succeeded in classifying those relationships into four distinct groups. The central thesis of the paper is that maritime organizations in general, and ship management companies in particular, may utilize their intangible relational resources in order to achieve competitive advantage. Based on the classification of ship management relationships, implications for managers are discussed.     

An empirical assessment of relational competitive advantage in professional ship management

Intense competition in many sectors across the maritime industry and in professional ship management in particular, means that the quest for achieving competitiveness will continue and intensify. A review of the current strategies across many sectors of the industry indicates the importance of forging stable partnerships for the achievement of competitiveness. Considering that the capability to form a relationship is an intangible resource (as depicted in resource-advantage theory), an empirical assessment in the context of ship management was undertaken. The assessment aimed to identify the type of relationships present in ship management, and succeeded in classifying those relationships into four distinct groups. The central thesis of the paper is that maritime organizations in general, and ship management companies in particular, may utilize their intangible relational resources in order to achieve competitive advantage. Based on the classification of ship management relationships, implications for managers are discussed.     

Multimodal route choice in maritime transportation: the case of Korean auto-parts exporters

Global offshoring has increased the need for transport of half-finished goods and components, along with finished goods. The auto-parts industry in Korea has also entered the global market as Korean car manufacturers have started to build overseas factories. Maintaining cost competitiveness by minimising total logistics costs will thus be a critical strategy for the industry. This research compares the total annual costs of four feasible transport routes from Korea to the US using the inventory-theoretic model, which encompasses direct transport costs, in-transit carrying costs, and warehouse inventory costs. We apply this model to real transport data collected from a Korean auto-parts company. A static analysis shows that inventory costs can play a decisive role in altering the cost competitiveness of different routes. In addition, sensitivity and scenario analyses with changes in variables and the market situations reveal that the cost structure of each route plays an important role in determining their relative cost competitiveness in varying market conditions.     

Airline network competition: Full-service airlines, low-cost airlines and long-haul markets

The paper discusses airline network competition. Low-cost airlines and conventional airlines have distinctly different strategies and network types. This determines their ability to compete with other airlines in specific markets. The paper discusses the lack of competition between conventional airlines in local markets, and sees why low-cost airlines are the primary source of competition in such markets. Conventional airlines are relatively strong on long-haul markets, using their networks to keep costs per seat relatively low. Charter airlines show that a long-haul low-cost strategy is feasible For scheduled low-cost airlines, this may be more difficult, but this does not automatically mean that low-cost airlines cannot enter thick long-haul markets.     

Competition in ship handling: a study of market turbulence in North European harbour towage

This paper addresses the issues of an increasingly competitive towage industry in Northern European ports. Enhanced competitiveness reflects the trends in the global mobility of capital, labour, enterprise and management within the context of deregulated port markets. Up until the early 1990s, the long term trend in major North European ports had been towards market concentration. Many small towage firms have been taken-over, bought out or merged. Alternatively, a pattern of consortia has emerged with co-operation and market sharing seen as preferable to ruinous competition. A contrasting trend has occurred in the 1990s, with new entrants into hitherto stable markets. In a number of ports—Antwerp, Rotterdam, Bremerhaven, Hamburg, Southampton, Thamesport, Bristol Channel—new fleets have brought competitive challenge to the incumbent towage fleets. The process of enhanced competitiveness raises questions of safety, reliability, investment and professionalism. The movement towards an openly competitive shipping industry has been in evidence from the 1960s onwards. The momentum of a dynamic shipping industry, with its competitiveness sharpened by the use of global supply factors, has intensified from that period. The movement in European tonnage towards flags of convenience and global labour supplies began in the tanker and bulk carrier markets; more recently this has spread to deep sea liner, short sea and even cabotage trade shipping. The towage industry is the last North European shipping sector to make this transition, following the trends towards port deregulation in the 1990s. From this perspective, this paper considers the impact on the towage market of global mobility and deregulation in North European towage markets—the impact of increased competition on the traditional operators and the likely effect on operational towage standards.     

Competition in ship handling: a study of market turbulence in North European harbour towage

This paper addresses the issues of an increasingly competitive towage industry in Northern European ports. Enhanced competitiveness reflects the trends in the global mobility of capital, labour, enterprise and management within the context of deregulated port markets. Up until the early 1990s, the long term trend in major North European ports had been towards market concentration. Many small towage firms have been taken-over, bought out or merged. Alternatively, a pattern of consortia has emerged with co-operation and market sharing seen as preferable to ruinous competition. A contrasting trend has occurred in the 1990s, with new entrants into hitherto stable markets. In a number of ports Antwerp, Rotterdam, Bremerhaven, Hamburg, Southampton, Thamesport, Bristol Channel new fleets have brought competitive challenge to the incumbent towage fleets. The process of enhanced competitiveness raises questions of safety, reliability, investment and professionalism. The movement towards an openly competitive shipping industry has been in evidence from the 1960s onwards. The momentum of a dynamic shipping industry, with its competitiveness sharpened by the use of global supply factors, has intensified from that period. The movement in European tonnage towards flags of convenience and global labour supplies began in the tanker and bulk carrier markets; more recently this has spread to deep sea liner, short sea and even cabotage trade shipping. The towage industry is the last North European shipping sector to make this transition, following the trends towards port deregulation in the 1990s. From this perspective, this paper considers the impact on the towage market of global mobility and deregulation in North European towage markets the impact of increased competition on the traditional operators and the likely effect on operational towage standards.     

Tanzanian coastal and inland ports and shipping: crises and policy options

This paper explores the current state of coastal and inland shipping in Tanzania. It provides an overview of the state of ports and shipping in Tanzania, and the reasons underlying the present crisis of competitiveness in terms of both global pressures and national and regional dynamics. Problems of competitiveness are at least partially due to under-investment, management failures, skills shortfalls and difficulties in interfacing with the railway network. Less easy to resolve structural problems include the great imbalance between imports and exports, heightened regional competition and ongoing political instability in the Great Lakes region.     

The impact of low sulphur fuel requirements in shipping on the competitiveness of roro shipping in Northern Europe

Annex VI of the MARPOL Convention aims for a reduction in sulphur oxide emissions from ships. The limits applicable at sea in Emission Control Areas (ECAs) were reduced from 1.5% to 1% in 2010 and are planned to be further reduced to 0.1%, effective from 1 January 2015. This paper analyses the impact of the International Maritime Organization’s Tier II/III standards introduced by Annex VI amendments adopted in October 2008 on costs and prices of roro (roll on/roll off) traffic in the ECAs in North Europe and on the competitiveness of roro shipping in the ECAs compared to trucking. We demonstrate that the new Annex VI agreement may be quite costly for the participants in the shipping industry and will result in higher freight rates. Based on a detailed price analysis on modal competition between the roro/truck option and the ‘truck only’ option on thirty origin–destination routes linked to the ECAs, we conclude that the use of low sulphur fuel is expected to increase the transport prices particularly on the origin–destination relations with a medium or long short sea section. The paper also presents the results of a survey among leading short sea operators in the ECAs in view of providing more insight on expected modal shifts and price elasticity in the short sea market.     

金融危机背景下青岛港发展新策略

青岛港作为我国北方的天然深水良港,非常有潜力在国际竞争中获取优势,并发展成为国际性的集装箱大港。在陈述了港口国际竞争力的要素、分析了青岛港在国际竞争中的优势和不足后,提出了提升青岛港国际竞争力的对策。     

基于满意度指数的港口竞争力测评

水运是我国贸易的主要运输方式,伴随着中国经济和港口经济不断的持续增长,港湾建设的竞争不断加剧,港口竞争力测评的研究已经成为提升港口竞争能力的重要途径之一。文中在分析现有港口竞争力测评方法存在问题的基础上,提出了基于满意度指数的港口竞争力测评思想,运用结构方程的方法构建了港口满意度测评体系和模型,为港口竞争力的测评提供了一个创新的思路和方法。     

Economics of regulation in shipping

In this paper the author explores the nature and scope of social regulation in shipping comparing its nature with that of economic regulation per se. Whilst economic regulation affects liner shipping only, social regulation—impelled by a specific concern for health and environmental protection, rather than a desire for optimal resource allocation—effects all types of shipping. The legislation emerging from this has had important (and often overlooked)economic impact; focusing on the conditions, under which a carrier discharges his duties, these regulations may determine, to a greater or lesser degree, the levels of cost and service. He concludes that, whilst the concept of social regulation has a valid, humanitarian base, the cost of its implementation should not be underestimated.     

Competition in Brazilian bus and coach services - The results of recent competitive tendering processes

This paper analyses the terms and the results of a sample of some recent Brazilian bidding processes for the concession of public passenger transport services: namely, urban and metropolitan bus or regional coach services. The analysis is based on selected issues relating to competitiveness and upon the legal framework that applies in this sector. It was concluded that, given the lack of bidding processes for concessions in the bus and coach sector in Brazil, the fact that some bidding processes have been carried out should be considered a sign of progress. However, these auctions have not necessarily prioritised competitiveness, since many barriers to entry into the systems were imposed by the bidding terms. Future competitive tendering processes should seek to abide by stricter principles of competitiveness, if they wish to avoid the entire effort expended on conducting such processes serving only to mask nothing more than formal obedience to the law and to discredit the bidding process in the eyes of Brazilian citizens.     

中国修船业现状与发展

修船业是一个价格敏感、竞争激烈的劳动密集型行业。价格竞争力是影响各地区修船竞争力的主要因素,而修船竞争力主要取决于修船厂的地理位置、修船质量、修期和价格。从世界修船业的发展变化、中国修船业目前的现状以及面临的机遇与挑战,对中国修船业的发展提出若干见解。     

海外工程风险管理初探

在竞争日益激烈的海外工程市场中,培养管理者的风险应对意识,提高风险管理水平,是增强国际竞争力的重要环节.文章在对海外工程风险进行分类总结的基础上,结合印尼和新加坡两地工程的实战经验,对海外工程风险管理方法进行初步探索,总结了一些有效的风险管理措施,可供以后类似工程参考.     

打破"诸侯经济"创双赢

上海建设国际航运中心,确定了洋山深水港的建设项目,由此带来了上海港和宁波港激烈的货源之争,而更大的竞争压力来自釜山等东北亚大型港口。面对这样的形势,上海、宁波两港应积极合作,一致对外,争取早日把上海港建成国际航运中心,同时使宁波港得到迅速发展。当“错位发展”的合作形式遇到困难时,以资本为纽带的“港口联盟”可能会是一种好的合作形式。     

Economic development and non-marine initiatives at American seaports

Public Port Authorities engage in a multimedia of activities under the guise of economic development that may be only marginally linked to the disposition of frieght or passengers. The mix of economic functions is determined as a result of shifts in marine cargo throughput, competition for shorefront land with other non-water-dependent users, the level of power and control wielded by Port personnel, and the legal mandate granted to the Port Authority. These non-marine functions often play an important role both for the Port itself and for the port community, regardless of the size of the port.     

基于FAHP-模糊层次分析法的港口综合竞争力评价

港口的综合指标及吞吐货物的集疏运能力是反映港口竞争力的重要表现。借助于模糊层次分析法,以构建港口竞争力评价方法,为港口客观恰当了解和评价自身竞争力及相对水平提供了参考价值,港口可以以此作为分析和寻找自身薄弱环节的措施,有针对性地进行改进。结合实例对方法的有效性和实用性进行验证。