Some current aspects of marketing in the near-sea ferry and liner trades with particular reference to the lrish Sea

The marketing of ferry services has almost unique characteristics but little literature exists in this field. This paper is the result of a preliminary investigation, based on a series of interviews, into some current aspects of marketing on the Irish Sea. The study considers three services types: container; freight only; ro-ro and multi-purpose ro-ro.

The complementarity, or otherwise, of carrying passengers and freight together is debated, as is the organizational conflict or confusion that may arise from this type of operation. The need to adopt different marketing strategies in the freight and passenger markets is derived from consumers' different buying behaviours. The sometimes contentious relationship between product differentiation and market segmentation strategies is explored and definitions provided. Both market coverage and specialization strategies are found in the ro-ro industries and the more competitive segments are identified. Using 'purpose of travel' as the basis for segmentation, potential growth segments of the passenger market are identified. The marketing strategies employed by the freight industry are less apparent, although segmentation does seem to play a major role in the identification of target markets.

The study indicates the extent to which shipping companies on the Irish Sea have adopted the marketing concept and that scope still exists for them to make greater use of this fundamental business philosophy.     

The competitiveness of short sea shipping in multimodal logistics supply chains: service attributes

Much has been written and spoken about short sea shipping within the European Union (EU) as a means of shifting goods from road to sea and of achieving a sustainable economic development. However, this shift is far from being a general reality, despite the few individual, and success stories that have taken place and the EUROSTAT data suggest that the overall effort has contributed very little towards attaining this desired shift. In the light of this, research was conducted to discover how to put short sea shipping on a more competitive level within European multimodal logistics supply chains. This paper aims at identifying service attributes of short sea shipping operations within multimodal transport chains by means of a questionnaire and, for that, examines the short sea shipping environment and contemporary European logistics trends. The analysis is based on empirical research, involving logistics operators, shippers' associations and intermodal rail operators, and allows an evaluation (based on statistical techniques) of the short sea shipping industry and its competitors. It extends previous work by considering these short sea shipping attributes within a multimodal transport context.     

Optimal container ship size: a global cost minimization approach

ABSTRACT

Currently, the best container ship size in a service is determined mainly by the liner operator, considering only the economies of scale of ships. Its external diseconomies to the ports and shippers are usually not considered in the decision-making process, which may reduce the overall efficiency and lead to global nonoptimality. This study incorporates the cost to the shipping companies at the main lines, ports, and feeder services, as well as the external costs to shippers and ports in a hub-and-spoke network, and determines the best ship size and the number of weekly services to minimize the overall costs. The external cost to the shippers in the feeder ports is assumed to be proportional to the feeder cost, and a sensitivity analysis is provided. The maximum container ship size is estimated according to different levels of freight demand. A numerical analysis shows that the optimal size should be smaller than the current biggest container ships in service.     

The container terminal community

Over the past 30 years, technological developments have not only affected the design and operation of the port function, but also the organizational and institutional relationships within the port community. Two inter-organizational interaction models are presented, drawing on the findings of over 200 in-depth interviews with senior managers representing terminal operators, shipping lines, feeder operators, ship agents, road hauliers, freight forwarders and shippers serving the UK?Far East trade. The first model represents a breakbulk berth of the 1960s and the second a modern container terminal community. In comparing the models, it is shown that containerization has transformed the fragmented breakbulk operation of the 1960s into the cohesive container terminal community that today facilitates port operations. The paper concludes by examining trends in key inter-organizational relationships in the community and the emergence of eBusiness.     

Longhaul feeder services in an era of changing technology: an Asia-Pacific perspective

Traditional liner carriers, operating in the highly competitive commercial environment of the last few years, have attempted to lower the marginal cost of each box carried. Technological improvements in both construction and propulsion systems have led to a steady growth in carrying capacity. Ships of 600+ TEUs are now in service and, as a result of this trend, have displaced 'smaller' ships from the major east-west trades. The more competitive environment of these trades has in turn led to a redeployment of ships in the 2500+ TEU range to the north-south trades. The result has been a rapid increase in north-south capacity, including feeder services and falling freight rates. Despite the current excess supply in shipping and historically low freight rates, significant developments in technology have created opportunities for new fast containerships. The paper analyses the key economic factors in the differentiation of the new fast ship technology from the traditionally designed containerships and demonstrates the potential financial viability to owners of these new 'greyhounds'.     

Evaluation of political risk in a shipping project

Shipping projects, as land-based ones, are evaluated by using different measures of merit based on discounted cash flows. The bulk carrying industry, where costs are known better than revenues, adopted the required freight rate (RFR) and its derivative the economic cost of transport (ECT) as its major measures of merit. Shipping is a business exposed to many unforeseen risks. Although many of these risks are beyond the control of the shipowners/operators, they should all be carefully weighed during the process of project selection designed for investment decisions. One such risk is the expropriation of shore-based facilities built by the shipping operator at one or more termini of the maritime distribution channel. The operator has to assess the value and probability of risk and translate them into a premium which he will levy on each unit of goods transported. Adding this premium to the required freight rate together with the inventory holding costs and marine insurance charges will produce the real economic cost of transport.     

长江上游集装箱运输方案优选

随着国际集装箱运输的发展,世界各国开始采用滚装运输方式组织集装箱运输,逐渐形成了一种新颖的集装箱滚装运输工艺。目前长江滚装运输以载重汽车滚装为主,尚未发展为标准化滚装集装箱运输。文中利用层次分析法,对长江上游的万州到宜昌段滚装集装箱运输方式与传统的公路集装箱运输之间进行定量综合分析。通过比较,可以看出长江上游集装箱滚装运输与传统集装箱运输之间的优势和不足。文中对长江上游实行集装箱滚装运输的可行性进行了初步探讨。     

Opportunities for increased profit and reduced cost and emissions by service differentiation within container liner shipping

This paper investigates opportunities for increased profit and reduced emissions and cost by service differentiation within container shipping. Traditionally the strategy among the container lines has been profit maximization by utilizing economies of scale through the building of larger and faster vessels. In 2008, the financial crisis in combination with higher fuel prices put an end to this progress and in today’s market operators are basically trying to survive by providing standardized services at the lowest possible cost. This study investigates alternative strategies and the results indicate that container lines should provide two different services instead of one standardized service. A fast service to be more competitive versus air freight for fast-moving goods and a slow service to be more competitive versus traditional shipping types for transport of minor bulk, break bulk, liquid bulk and project cargo.     

Cost analysis of bulk cargo containerization

ABSTRACT

Bulk cargo containerization (BCC) involves changes in the transportation mode of container shipping for cargo that uses bulk carriers without packing. This topic has recently attracted considerable attention as an alternative transportation method for container cargo. BCC is advantageous because it can address imbalances in the amount of cargo conveyed between the main and back hauls, thereby improving efficiency. A previous survey among companies involved in cargo shipping revealed that in addition to ocean freight, vanning and devanning, and customs clearance costs, consignees’ decisions were the key factor in selecting transport modes. The present study aims to clarify the cost competitiveness of container shipping and identify cost reductions that may increase the use of BCC. To quantitatively check the results of the survey employed in this study, we constructed a model based on consignees’ and container shipping companies’ costs to determine the choice of transport mode for back-haul trade, then examined the incentives for consignees and shipping companies. We found that BCC can be realized by cost reduction on the part of the consignee and profit improvement on the part of the container shipping company for some routes and goods. Although reducing the freight rate would effectively promote BCC, reducing other costs would not have the same effect.     

The potential for British coastal shipping in a multimodal chain

A strategy to revitalize coastal shipping within Great Britain is investigated. An examination of the regulatory environment shows government, at both the EU and British levels, aware of the environmental benefits of coastal shipping compared to road freight transport, if only mildly supportive in tangible terms. The geography of Great Britain and the modern preference for just-in-time deliveries have severely restricted the ability of coastal shipping to compete effectively with road freight transport. The primary objective of the paper is to investigate whether coastal shipping could be integrated into a multimodal door-to-door supply chain, where it is currently hampered by high costs of transhipment, slow transport speeds, and the incongruity of load sizes between land and sea modes. Integration requires the co-operation of all organizations within the multi-modal supply chain. However, coastal shipping companies have been known to be individualistic and mistrusting of alliances. Therefore, a Delphi study is undertaken to investigate the standpoint of leading managers in such companies towards multimodal integration. The results of the Delphi study indicate that managers are in favour of multimodal developments, in particular cooperation between coastal shipping and road haulage. However, there was agreement that the business is highly competitive, and this may prevent the forms of collaboration required for multimodal systems. The secretive nature of the coastal shipping sector could impede joint marketing to promote a mode of transport that is often 'invisible' to shippers. There was little consensus on the relationship that should exist between coastal shipping and ports, a topic worthy of further investigation.     

沿海内贸集装箱班轮航线优化研究

随着沿海内贸集装箱运输市场的快速发展,各大班轮公司如何把船舶安排到最佳航线上,使有限的船舶资源创造最大的经济利益,成为各大公司研究的课题。根据沿海几大干线港口之间的运量需求,建立非线性规划与整数规划相结合的混合模型,选择典型航线建立运输网络,并对其进行优化。该数学模型可应用于解决我国沿海内贸集装箱船舶运输航线配置问题,进而实现利润最大。     

The potential for British coastal shipping in a multimodal chain

A strategy to revitalize coastal shipping within Great Britain is investigated. An examination of the regulatory environment shows government, at both the EU and British levels, aware of the environmental benefits of coastal shipping compared to road freight transport, if only mildly supportive in tangible terms. The geography of Great Britain and the modern preference for just-in-time deliveries have severely restricted the ability of coastal shipping to compete effectively with road freight transport. The primary objective of the paper is to investigate whether coastal shipping could be integrated into a multimodal door-to-door supply chain, where it is currently hampered by high costs of transhipment, slow transport speeds, and the incongruity of load sizes between land and sea modes. Integration requires the co-operation of all organizations within the multi-modal supply chain. However, coastal shipping companies have been known to be individualistic and mistrusting of alliances. Therefore, a Delphi study is undertaken to investigate the standpoint of leading managers in such companies towards multimodal integration. The results of the Delphi study indicate that managers are in favour of multimodal developments, in particular cooperation between coastal shipping and road haulage. However, there was agreement that the business is highly competitive, and this may prevent the forms of collaboration required for multimodal systems. The secretive nature of the coastal shipping sector could impede joint marketing to promote a mode of transport that is often ‘invisible’ to shippers. There was little consensus on the relationship that should exist between coastal shipping and ports, a topic worthy of further investigation.     

Methodology for ro-ro ship and fleet sizing with application to short sea shipping

A novel methodology is developed for determining the characteristics of a cargo roll-on/roll-off (ro-ro) ship and the fleet size required for a given short sea shipping route. The ship and required fleet size to satisfy the transportation demand (for each pair of speed and freight rate) are determined using a database of existing cargo ro-ro ships to obtain the main technical characteristics of the most suitable ship. The time charter, voyage costs and revenue are then calculated considering the technical characteristics of each ship. Fuel costs are corrected for the actual ship speed and loading condition. A number of restrictions in the transportation problem are considered leading to the exclusion of unfeasible solutions. The maximum profit over the period of a year is identified among the feasible pairs of speed and freight rate. This general methodology is applied in a case study that considers the route between Leixões (Portugal) and Rotterdam (Netherlands). The study allows the identification of the most suitable ship and fleet sizes for different market penetration levels and quantifies the impact on shipping company profit of changes in parameters such as fuel costs, time charter costs, emission control area, installed propulsion power and stacking factor.     

Monetary values of transport service attributes: land versus maritime ro-ro transport. An application using adaptive stated preferences

The objective of this work is that of illustrating a methodology to derive, in terms of trade-offs, the relative values of transport service attributes for logistics operators. In particular, the analysis yields insights on the preferences for time-savings, frequency and reliability of the transport service in terms of price, of a sample of freight forwarders located in the South of Italy. The data is gathered using an Adaptive Stated Preference application and the estimates are obtained through a Tobit ML estimator on both company specific data and pooled data. The results show that frequency is the most highly rated characteristic of the service together with reliability. The value of time is significantly lower in both cases. The outcome is consistent across estimations and, substantially in line with the outcome of previous studies carried out on operators active at different levels of the transport-logistic chain. Until now, in fact, studies have been carried out uniquely on carriers or producers. The selection of freight forwarders allows to shed light on a segment of the market that accounts for more than half of the transport-related decisions. Furthermore, the present study focuses on a comparison between all land transport and maritime ro-ro alternatives, in line with the growing interest on the integration among transport modes. The output signals both the absence of any a priori preclusion for ro-ro maritime services and the extremely important role that frequency of service assumes for the development and the establishment of maritime services as realistic alternatives to all land transport.     

国际集装箱运价管理机制的探讨——兼论运价报备制度实施的作用与实质

通过对试行的运价报备制度的作用与实质的分析提出了在目前国际集装箱运输市场以运价报备制度作为运价管理模式是合适的。运价报备制度比传统的各种运价管理模式刚性小、易于被业界各方接受,又可以作为国家宏观管理的一种政策手段,为长期稳定集装箱运价起到积极的作用,在目前运价全面放开的市场背景下还可以作为一种新运价管理模式。     

The study on the compilation of the China container freight index

Although there exists many kinds of shipping freight indexes, the compilation of a container freight index is still not shown. As such, this paper has taken a further study on the compilation of the China container freight index, which includes selection of calculation formula, determination of freight type, the choice of samples of shipping lines and rules of revision of the index.     

The study on the compilation of the China container freight index

Although there exists many kinds of shipping freight indexes, the compilation of a container freight index is still not shown. As such, this paper has taken a further study on the compilation of the China container freight index, which includes selection of calculation formula, determination of freight type, the choice of samples of shipping lines and rules of revision of the index.     

A reactive container rerouting model for container flow recovery in a hub-and-spoke liner shipping network

This paper focuses on the container rerouting due to a disruption, aims at making the optimal container flow recovery plan for the affected liner shipping company. First, we make the initial effort to bring up with a basic framework of disruption management for liner shipping. Second, we present a compact integer linear programming model for addressing the container rerouting problem under the proposed framework in a hub-and-spoke liner shipping network, based on a given recovery vessel schedule that determines to omit a port of call. Other shipping companies’ services and other modes (roadway, railway, and airline) as candidate alternative means to transport the miss-connected containers are also incorporated in the proposed model. The container flow recovery plan would select the optimal alternative paths for the miss-connected containers balancing the trade-off between container transport costs and delivery delay penalty costs. Finally, a case study from a global liner shipping company is investigated and the computational results indicate the model can be solved effectively and efficiently for the real-scale problem. Thus, the proposed approach in this paper can supply real-time decision support tool for the liner shipping operators on handling the process of container flow recovery.     

An econometric analysis for container shipping market

This article presents an econometric analysis for the fluctuation of the container freight rate due to the interactions between the demand for container transportation services and the container fleet capacity. The demand is derived from international trade and is assumed to be exogenous, while the fleet capacity increases with new orders made two years before, proportional to the industrial profit. Assuming the market clears each year, the shipping freight rate will change with the relative magnitude of shifts in the demand and fleet capacity.

This model is estimated using the world container shipping market statistics from 1980 to 2008, applying the three-stage least square method. The estimated parameters of the model have high statistical significance, and the overall explanatory power of the model is above 90%. The short-term in-sample prediction of the model can largely replicate the container shipping market fluctuation in terms of the fleet size dynamics and the freight rate fluctuation in the past 20 years. The prediction of the future market trend reveals that the container freight rate should continue to decrease in the coming three years if the demand for container transportation services grows at less than 8%.     

Short sea shipping

This paper quantifies the potential environmental benefit of short sea shipping. Critical strategic issues relevant to formulating public policy are developed. Coastal shipping has traditionally been a major sector of the maritime industry. This continues to be the case in the European Union, but the sector has diminished in relative importance in North America as the transport industry has become increasingly dominated by less environmentally-friendly interstate trucking and railroads. Congestion threatens to overwhelm overland carriage and limit economic growth. An alternative strategy is to revitalize coastal shipping as short sea shipping to alleviate traffic congestion and enhance economic development by maintaining freight flow efficiency. Because ship transport offers higher fuel economy and lower emission of harmful pollutants, the environmental benefits of short sea shipping over land transportation can be quantified and used to inform public policy.