Korean liner shipping in the era of global alliances

In the course of the last two decades Korean shipping has emerged as a major player in the liner market. In 1970 there was not a single container ship in the Korean fleet; yet, within the next two decades, shipping companies from Korea have become included among the top 10 liner operators in the world, in the context of a spectacular ascent of Asian companies in international container shipping. During the same period the organization of liner shipping itself underwent major changes. In the 1970s and 1980s, pools and powerful consortia prevailed, maximizing frequency and optimizing fleet deployment under pressure from the high investment entailed by containerization. The era of consortia, however, came to a close in the early 1990s; intermodalism and the expansion of the major liner companies into forward and backward segments of the transport chain rendered them inflexible for pursuing individual strategies of product diversification with a view to larger market shares. Global alliances were finally born as a result of a major reshuffling of co-operation agreements and of the globalization of the production process on the demand side. The aim of this paper is to follow and assess the options available to an aggressive low-cost national fleet in its journey to competitive maturity through a period of changing organization of liner shipping, focusing on the course of the leading Korean container company, and one of the largest in the world today, Hanjin. It highlights at the same time both the deep structural changes which liner shipping has undergone in the last two decades and the effects of current changes, such as the recent wave of mergers in this sector.     

Risk perception affecting the performance of shipping companies: the moderating effect of China and Korea

Risks in the shipping industry have been highlighted and have attracted significant attention, especially following the bankruptcy of Hanjin in 2017. Due to the decrease in container volume, the business environment for large shipping companies in China has deteriorated. Therefore, major large shipping companies have implemented mixed ownership reform, which provides more opportunities for large Korean shipping companies to enter the Chinese shipping industry. This study first identifies risk perception, specifically focusing on the moderating effect of Chinese and Korean shipping companies, and then demonstrates the impact of these risks on shipping company performance. The results show that market, operational, and technical risks have a negative influence on Chinese shipping companies, whereas market, policy, financial, operations, and technical risks have a negative influence on Korean shipping companies. This study contributes to the fundamental understanding of the effect of risk perception on performance among shipping companies in both countries and calls for further research on risk management plans based on the risk factors identified herein. On a practical level, this study provides an important reference for operators and investors who seek to enter strategic alliances or joint venture in Chinese shipping industry.     

Shipping and investment incentives: a trilogy Part 3. The effectiveness of investment incentives for shipping—the UK experience 1950-1987

This paper concentrates on the determinants of investment and examines both theoretical and empirical work on the investment function. The major determinants are considered and a case study of the United Kingdom shipping industry in the period 1963-1987 is undertaken. The analysis is unable to find any real link between the value of the investment incentives packages available to the UK shipping industry and the size of the UK fleet during this period. The conclusion follows that while financial factors (e.g. favourable credit arrangements) or individual components (e.g. investment grants) of fiscal packages may influence the decision to invest, the total package has not affected the level of shipping investment in the manner expected.     

Union rivalry and crew reform in shipping: A United States—Australia comparison

The national-flag fleets of most of the traditional martitime nations have, in virtually every case, been in decline in the 1980s and 1990s, despite the continued growth of ocean shipping. They have declined in terms of numbers of vessels and numbers of sea-going jobs, although not necessarily in terms of cargo carried. However, a number of those nations have responded to the changed technological and competitive conditions with some success by attempting to adjust crewing and work practices on vessels at sea. Neither the USA nor Australia has been in the forefront of such change. However, considerably more progress has been made in modernizing crewing practices and work rules in the Australian-flag fleet than in the US-flag fleet. There are a variety of reasons for this, inluding government policy. However, it is our argument that one of the principal reasons the US fleet lags behind the Australian fleet in the adoption of modern crewing practices and work rules is the much greater degree of union rivalry in the US shipping industry. In fact, while the degree of fragmentation and rivalry among unions in the Australian flag fleet has declined dramatically since 1980, their US cousins have continued, and in some ways expanded, their pattern of fratricidal behavior. First we shall discuss some of the technological and competitive imperatives that are driving human resource management practices in shipping and the crewing and industrial relations adjustments that are being made around the world to adjust to them. Then we shall indicate how the Australian and US fleets have responded to these challenges. This will be followed by a discussion of unionism in the Australian and US maritime industrics as it has devloped in the last two decades of the twentieth century. Finally, we shall draw conclusions about the impact of different patterns of unionization.     

集装箱船舶大型化对中国班轮运输的影响

通过竞争情报分析提供了各班轮公司未来船队结构和运力的变化趋势,由此观察到各班轮公司为了降低自身的营运成本,在最近几年大量订购超巴拿马型甚至更大型的集装箱船舶参与运输,但是却不能达到其预期的规模效应。原因就在于相当一部分成本随着船型的增大而线性增加,规模不经济。我们探讨了中国的班轮运输市场的几个重要特点:中外贸易的不平衡导致了货源的不平衡;未来贸易结构的调整会影响航线的布局和调派;贸易上的不稳定因素使班轮公司遇到外在的风险。这些特点会深远地影响集装箱船舶大型化的经济受益,相反的,集装箱船舶大型化的趋势也会加剧这些负面的影响,危及整个班轮运输市场。     

Strategic fleet size planning for maritime refrigerated containers

In the present economic climate, it is often the case that profits can only be improved, or for that matter maintained, by improving efficiency and cutting costs. This is particularly notorious in the shipping business, where it has been seen that the competition is getting tougher among carriers, thus alliances and partnerships are resulting for cost effective services in recent years. In this scenario, effective planning methods are important not only for strategic but also operating tasks, covering their entire transportation systems. Container fleet size planning is an important part of the strategy of any shipping line. This paper addresses the problem of fleet size planning for refrigerated containers, to achieve cost-effective services in a competitive maritime shipping market. An analytical model is first discussed to determine the optimal size of an own dry container fleet. Then, this is extended for an own refrigerated container fleet, which is the case when an extremely unbalanced trade represents one of the major investment decisions to be taken by liner operators. Next, a simulation model is developed for fleet sizing in a more practical situation and, by using this, various scenarios are analysed to determine the most convenient composition of refrigerated fleet between own and leased containers for the transpacific cargo trade.     

A cross-section analysis of stock returns: The case of shipping firms

This paper undertakes an analysis of the determinants of the cross-section of expected stock returns of 19 shipping companies listed in the US, Norway, Stockholm and London. Various factors, including company stock market beta, divided yield, and financial leverage have been identified in the finance literature as determinants of share price performance. We capitalize on these findings and add one more industry specific factor, the average age of the company's fleet, to quantitatively analyse the determinants of the performance of shipping shock returns. We use the Fama-MacBeth methodology to empirically test whether the five factors above have a significant effect on shipping stocks' performance. Our results indicate that the industry specific factor (the average age of the fleet) plus financial leverage, are significant in explaining shipping stocks' returns, wheras the stock market beta and the dividend yield are far less significant.     

抢占经济复苏后的产业制高点

已经30年的中国国际海事会展依然吸引全球嘉宾,即使在全球金融危机的影响下,也没有消褪来自全球各地的航运、造船业的热情。主办方统计数据显示,第十五届中国国际海事会展面积超过了55000平方米,比上届增长了约40％,共有30个国家和地区的1200多家单位参展。而以“危机、挑战与机遇”为主题的高级海事论坛,更是一场精英云集、宏论嘉言精彩迭出的业界盛宴。     

Restructuring of the economy and its impacts on the Korean maritime industry

The Korean government has made many efforts to repair the damage done by the financial crisis since November 1997. The restructuring programmes for the Korean economy, including chaebols' (i.e. family-controlled conglomerates) restructuring, have impacted in many ways on the shipping, shipbuilding and port sectors. This is because major shipping lines, shipyards, and recent privatization and operation of container terminals have closely been related to chaebols. This paper is concerned with the impacts of the Korean financial crisis on the shipping, shipbuilding, and port sector, with restructuring of the economy and chaebols.     

Flagging options for the future: A turning point in Korean shipping policy?

The issues surrounding the future of Korea's shipping policy have been heavily debated since 1990 because the Korean shipping industry has been facing rising crew costs and difficulties in recruitment of qualified crew, an adverse taxation system, very limited access to foreign capital markets, and an inflexible government regulatory environment. Consequently, this has contributed to the deterioration of Korea's compectitive edge. This paper aims to provide both an account of the current adverse situtation in Korean shipping business and proposals to alleviate the plight of shipping enterprises. Within the context of that adversity, two solutions are suggested to improve the current situation, by either establishing a Korean second register or flagging out. The paper explores the advantages and disadvantages of each solution. Because ship management is closely interrelated to flagging strategies, the paper also discusses areas of co-operation between Korean shipping or ship management companies and advanced foreign ship management companies.     

Refrigerated container versus bulk: evidence from the banana cold chain

During the last 20 years, the reefer shipping sector has been characterised by a gradual changing process, leading from specialised vessels to reefer containers. In fact, the reefer bulk fleet has experienced an irreversible decline, while the reefer container fleet has shown a continuous growth. This article investigates the current major factors shaping the reefer shipping industry, in order to understand the economic drivers inducing competition between bulk and containers. Therefore, a twofold analysis has been performed. First, an overview of the reefer market, including the cold chain, the demand for refrigerated products and the supply of reefer capacity given both by containership fleet and by conventional reefer fleet. Second, a specific case of the banana trade has been carried out for evaluating the revenues of each player involved in the banana cold chain followed by a cost analysis. The results reveal the market tendencies, focusing on the main sources of competition for bulk versus container.     

[What is the cost of increasing taxation?] (Oslo: Statistics Norway: Oekonomiske analyser no 8). [In Nowegian].

Zero taxation is today the rule in the international shipping industry. The absent income tax on profits is translated into an equivalent reduction in freight rates. Countries and companies which are net purchasers of shipping services gain, while the treasuries of countries providing the equity lose. Equity investors in shipping obtain no more than the internationally required after-tax profit level. The private income distribution effect, therefore, should not give rise to political concern. By eroding the tax base, zero taxation gives rise to an economic cost by shifting taxation to other sources. The effect on resource allocation through too high volumes shipped is shown to be insignificant. In countries where profit taxation is still levied, shipowning cannot remain competitive. Forcing inherently competitive operators to close down or move to a zero tax location is likely to cause a significant economic loss. Short of ordinary taxation of shipping internationally, the second best solution may be a more consistent lifting of tax obligations.     

2006年世界船舶市场评述及展望

总结了近一年来世界经济的发展,在此大背景下对2006年的船舶行业进行了总结和回顾,并对未来市场进行预测.世界船舶行业在2006年出现一个显著特征,即在航运市场回落的情况下船舶建造市场出现了前所未有的兴旺景象,船舶交易出现价高量大的场面.究其原因,船厂任务已饱满、受新规范影响,成本进一步提高以及对后市航运市场看好等原因起到主要作用.鉴于目前订单情况及航运市场现状,预测未来船价还将保持高位运行,航运市场运力将得到进一步快速扩增,甚至会出现供大于求的局面,不过崩盘的可能性不会太大.     

Estimation of capacity utilization in world shipping

The surplus of tonnage which has characterized the shipping industry for over a decade has severely affected profitability and investment opportunities in the industry. This has prompted various schemes to reduce the surplus. A proper assessment of the size of the surplus is an essential requirement for sound policy measures. This paper, which focuses on the tanker sector, examines selected methods used to compute surplus tanker tonnage and proposes other methods. It observes that methods currently used give estimates of surplus tonnage which are basically identical to those obtained by using alternative methods. It concludes that while from 1984 the surplus tanker tonnage has been declining, from 1986 the decline has been rather small and the volume of the surplus is likely to stabilize in the next few years at more or less current levels. However, the paper points out conceptual and practical problems of determining the appropriate base periods or base operating conditions upon which surplus tonnage may be computed.     

Explaining variations in national fleet across shipping nations

Many studies on national shipping attribute the declines in national fleets of developed economies to the lack of comparative advantage, but little has been done so far to identify factors contributing to countries’ shipping comparative advantage using a systematic approach. Although shipping markets are highly international and competitive, it is not clear whether tonnage owned by countries is governed by country-specific factors. This paper seeks to explain variations in nationally owned fleet across shipping nations. The main variable of interest is national fleet tonnage owned by country of domicile as opposed to registered tonnage. The results of econometric analysis using data from 84 shipping nations indicate that various country-specific factors do indeed contribute to variations in fleet tonnage across shipping nations, albeit at different levels of significance. Financial market development, external trade, ship registration, shipbuilding and shipping history appear to have the most significant impact, followed by the level of development and technology and maritime policy. Based on the results of analysis, implications for policy and future research are also discussed.     

方便旗船舶对海运的影响

方便旗船是在一定历史条件下,国际经济、政治和各国航运立法等因素的综合性产物,其存在和发展有积极的一面,但从整体上看一些方便船籍国忽视了对方便旗船的有效管辖与管制,给世界航运经济带来一系列负面影响。介绍船舶入注方便旗的各种原因,阐述其所带来的种种弊端,最后介绍为提高其营运安全所采取的措施以及有关专家对正常登记国的建议。     

US shipping policy under conditions of a new world economic and political environment

The maritime policy of the US has evolved over more than 100 years from the support of US shipping through mail and fleet auxiliary contracts before the turn of the century, to the present array of direct and indirect Government aids and regulations based on the assumption that a strong maritime industry composed of both US-flag shipping and US-shipbuilding capacity is essential for the economic well-being and defence of the country. Notwithstanding massive direct and indirect aid to the US merchant marine, amounting to well over a billion dollars a year in recent years, US shipping and shipbuilding has declined dramatically and now comprises less than 3% of world shipping. Only 2.8% of US foreign trade by volume and 6% by value is today carried in US flag ships. Government aids constitute well over 33% of total revenues of US-flag shipping.

The traditional argument for US Government support has been the need for cost parity to permit US-flag shipping to compete effectively in international trade against foreign shipping serving the same routes with presumably lower operating costs. This argument is difficult to sustain today, as vessel costs of many other industrialized nations are now about equal to those of US-flag ships.

In 1970 the US enacted a new, vastly more liberal, maritime act for the support of the US maritime industry. Notwithstanding its even more liberal terms and elimination of the strict cost-parity interpretation, the US maritime industry continues its decline. The recent bankruptcy of two old, established subsidized shipping companies has caused tremors in the industry, yet no new ideas, policies, or plans seem to be forthcoming. It is the objective of this paper to study the development and effects of various historic US Government policies relating to the support of the US maritime industry, and evaluate the positions taken by proponents or opponents of the maritime policy leading to the policy development.

The decision processes are studied by evaluating literature on the evolution of Congressional, administration, industry, and labour interest and positions on the issue of Government aid to the maritime industry. The impact and effectiveness of various elements of past and present US maritime policy is evaluated in relation to the stated objectives. The alternatives to these policies are reviewed in the light of the changing US position in international trade, military strategy, and political objectives. In addition the effectiveness of the present and alternative policies is evaluated as it is and will be affected by changing technology in use, composition of ownership, and operations of US-flag shipping and shipbuilding.     

标准化船队浅水槽运原理简述及模型试验研究

为了寻求一种用水量小、运输量大,节能效果显著、还可在干旱或非流域地区运行的浅水槽运方式,提出建设专用水槽,采用岸边（链轮传动或架空钢索）牵引方式在水槽中拖航标准化船队,并用计算机调控船队进出＂港口＂的浅水槽运模式,阐述水槽中浅水行船的基本原理。制作金属材料的模型船队,在水槽中进行模型试验,从原理上验证该槽运模式的可行性。     

国际航运电子市场分析

从介绍近年来电子商务革命对航运业发展的深刻影响入手，阐述了国际航运电子市场的优点、发展演化。根据市场规模和交易频率、市场套利能力和市场信息不均衡性等3个重要因素，分析了国际航运电子市场的定价形态，并进一步分析了相应的定价政策。从而为航运交易的各方进入国际航运电子市场，实现其盈利目标提供了有益的参考。     

The adaptation of the Polish shipping companies to market conditions

At the end of the eighties, fundamental changes took place in Polish shipping. Implementation of the market economy system was at first demonstrated in the introduction of the principles of self-dependence, self-government and self-financing of the shipping companies. Privatization performed a key role in the program of transformation of the centrally planned system into market oriented financially independent shipping organizations. The previous principle of the necessary participation of the home fleet in transporting domestic sea-borne trade has been mostly replaced by cross-trade. Many shipping services have left its basic ports in the country for a West European basis, securing alimentation of home and transit cargoes by feeder-service systems. Joint stock companies in shipping with substantial shares of foreign capital are welcomed, and the previously obligatory system of administrative methods of the state monopoly has been abolished. The principles of shipping policy represented in the past by Poland and also by UNCTAD in the 1960s have lost their impact and must be change and adapted to the new demands of the shipping markets.