Innovation,capabilities and competitive advantage in Norwegian shipping

As a high-cost country, it is believed that Norway has to build its competitiveness in most industries on innovation and knowledge-intensive products. The shipping industry is no exception. It has to be innovative in order to prosper. This unison conclusion, which has been drawn in several research projects during the last 10–20 years, is probably also applicable for companies in other high cost countries. A major issue in this research is how the industry can develop and maintain innovativeness and international competitiveness. The aim of this paper is to discuss the conclusion drawn in previous research concerning how the shipping industry can be innovative. It concludes that shipping companies have to improve their skills and competencies in a stronger interplay between organizations within and without the maritime cluster. This may increase their total capability and innovativeness and create distinctive competitive advantages that are difficult to imitate.     

Achieving an ASEAN single shipping market: shipping and logistics firms’ perspective

ABSTRACT

To establish an Association of Southeast Asian Nations (ASEAN) Single Shipping Market (ASSM) is an important part of ASEAN governments’ overall plan to achieve an ASEAN Economic Community by 2015. It is expected that a single shipping market will improve the region’s logistics performance and international competitiveness. To achieve this vision, however, the ASEAN countries need to remove any remaining barriers to logistics performance. In this light, the objective of this paper is to identify these barriers and assess their effects on the logistics performance of shipping and logistics firms based in ASEAN countries. Using a questionnaire-based survey, the study revealed several barriers affecting their logistics performance with varying significance among these countries. Unless these barriers from the perspective of the industry are removed, the ability of the shipping and logistics industry to benefit from a liberalized market would be limited. These perceived barriers are examined in detail and strategies to address them are proposed. The ASEAN experience is applicable to similar countries in the process of integrating their international shipping sector as well as contributes to the understanding of the different barriers and how these barriers can affect the logistics performance of shipping and logistics companies.     

从供应链管理看现代物流对我国航运业的影响

在海洋运输的基础上,全面介入物流服务,积极配合货主对运输服务更高层次的要求,以货主为中心全面提高门到门运输的服务水平,将给航运企业自身带来多方面的竞争优势。事实表明,从海洋运输向综合物流服务转变,已经成为国际航运企业发展的大方向。本文介绍了现代物流的供应链管理、“双赢”及“多赢”战略,以客户为中心等理念在航运业中的应用情况;结合大量的例子,从供应链管理角度分析我国航运存在的问题,并探讨解决问题的措施。     

A transaction cost analysis of Finnish, Swedish and Norwegian shipping

The purpose of the article is to analyse the operation of shipping companies in Finland, Sweden and Norway cross-sectionwise in 1989-1991. These represent three different types of shipping operations in three neighbouring countries in Northern Europe. In the analysis, an apllication of the transaction cosr approach (TCA) is employed. It is shown that finnish shipping is usually very concentrated both in terms of geographical coverage, cargo composition and ownership. In cargo shipping, Finnish shipping firms mainly operate on the 'domestic' routes connecting Finland to the main European markets. Few Finnish firms are operating in highly competitive operations such as cruise shipping and liquid and dry bulk trades. Ownership in shipping is also often institutionalized rather than being in private, independent hands. In Sweden, the hierarchial governance of shipping is less than it is Finland. In certain worldwide trades, such as reefer and car carrier trades, the governance structure could be defined as hierarchial due to high asset specificity and high degree of specialization. In Norway, the shipping industry seems to be strongly market-oriented. The industry is composed of shipping companies, whose existence depends on their cost competitiveness on the shipping market, and is usually not backed up by exclusive hierarchial arrangements. Notable exceptions are the LNG/LPG and car carrier trades. The classification presented principle can easily be extended to other shipping countries, or companywise comparisions, as well.     

The human talent and its role in ISM Code effectiveness and competitiveness in the shipping industry

The present study empirically evaluates the role of human talent in the effective implementation of quality management systems in the shipping industry context. Specifically, we analyze the relationships among top management commitment to quality, ISM (International Safety Management) Code effectiveness and competitiveness as well as we assess the influence of talent in these associations. We test our research hypotheses using a sample of 199 shipping companies located in Greece. The findings show that ISM Code effectiveness acts as a mediator between top management commitment and shipping company competitiveness, while the different talent philosophies were found to moderate this relationship.     

Themes and tools of maritime transport research during 2000-2014

This study examines how maritime transport has been researched through a comprehensive review of papers published in 19 transportation journals over the period 2000–2014. Systematic investigation shows that Maritime Policy & Management plays a prominent role in publishing maritime transport research. At the same time, ‘shipping’ is a dominant research area, with ‘port management, service, performance, efficiency and competitiveness’; ‘shipping market, industry, freight rate and economic impact’; and ‘terminal studies’ as the most popular topics. Nevertheless, few efforts have investigated ‘shipping finance’; ‘shipping service’; or ‘port risk and security.’ Since 2000, the use of quantitative analysis techniques has steadily increased in maritime transport to help participants make decisions scientifically. We here present the major data analysis techniques and highlight some limitations regarding their application. Thus, we provide a better understanding of how maritime transport research has been undertaken in a quantitative manner.     

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.     

Barriers to energy efficiency in shipping

The shipping industry shows potential for improvements in energy efficiency. Nonetheless, shipping companies appear reluctant to adopt these seemingly cost-efficient technical and operational measures aiming at reducing energy costs. Such phenomenon is not specific to the shipping industry and is commonly referred to as the energy efficiency gap. Decades of research in other sectors have contributed to the development of taxonomy of economic, organizational and psychological barriers that determine energy efficiency gaps through the use of a variety of research frameworks. This article aims to apply this research in the shipping context through interviews and review of existing literature and applications from other industries, with the objective of providing useful insight for shipping managers. The article discusses examples of barriers that are typical to shipping and that are related to information asymmetries and power structures within organizations. Managers of shipping firms are encouraged to look through their organizations in search of principal agent problems and power structures among the possible causes for energy efficiency gaps in their companies’ operations and possibly strive towards organizational change.     

The Nigerian shipping industry and indigenous shipping companies

The shipping industry in Nigeria since the early 1990s has been experiencing a continuous disastrous downturn. Nigerian shipping companies' participation in international shipping has continued to be very limited. Their presence and impact is hardly felt in the world's shipping industry. Both the national carriers (that is shipping companies with national carrier status) and other indigenous private shipping companies have vessel as well as management problems. These problems have led to the poor performance of the Nigerian shipping industry for over a decade now. The carriers in the industry are not attaining for the country the gains that are supposed to emanate from shipping. This paper points out the importance of shipping to a nation, identifies the problems the country's shipping companies are facing and proffers solutions that include merging of the companies to have strong financial standing and a competitive edge.     

A qualitative analysis of reintroducing cabotage onto New Zealand's coasts

This paper provides a qualitative analysis of the proposal to ‘reintroduce cabotage’ onto New Zealand's coasts. New Zealand's coastal shipping trade was opened up to international competition in 1995. The analysis is principally based on a stakeholder analysis of the 83 submissions received by the Shipping Industry Review team, as part of the Government's study to identify ways to increase participation in New Zealand's shipping industry. The stakeholders included New Zealand and international shipping companies, unions, industry associations, freight service providers, manufacturers and producers. The main conclusion drawn from the stakeholder analysis was that to reintroduce cabotage onto New Zealand's coasts would appear to have an overall net negative impact on the New Zealand economy at this stage. However, the Shipping Industry Review team ‘was divided on the implementation of cabotage’, and a force-field analysis was undertaken subsequently based on the author's stakeholder impact analysis and the Review team's list of pros and cons of reintroducing cabotage. This force-field analysis also supported the author's earlier conclusion. However, the almost ‘complete absence of statistics’ relating to the commercial activities of the shipping industry in New Zealand places severe limits on the analysis.     

Enhancing the competitiveness of Korea’s container shipping industry through structural improvements

ABSTRACT

After the collapse of Hanjin Shipping in 2016, Korea faced the task of reconstructing its container shipping industry by enhancing the competitiveness of its shipping companies in a rapidly evolving market environment. Responding to this need for policy design, this study first attempts to understand the industry based on the shipping ecosystem, which comprises the following four areas: shipping finance, collection of cargo, acquisition of ships, and partnership among carriers. Second, it lists the structural problems, along with the remedial policy alternatives, that were identified after conducting in-depth interviews with industry experts, which included mid-level managers. Third, it conducts an importance-performance analysis to classify problems according to their importance and performance, followed by an analytic hierarchy process analysis to define the priorities of policy alternatives. Finally, drawing on the empirical results, the paper concludes with suggestions on an integrated policy package for the container shipping industry.     

Complexity theory applied to management of shipping companies

Theory of complexity , in the author's opinion, describes life better than the hitherto available theories, as it deals more effectively with dynamic, non-linear and cyclical phenomena. The author will here attempt the application of the theory of complexity to the management of shipping companies , especially those of Greek management style. This paper will also deal with the relationship of competition in shipping. The question that will be put and answered is whether a firm should be a hierarchical, inflexible structure, ordered from above. If, however, a company is seen as a self-organized emerging order, then a new approach must be adopted, i.e. that of complexity theory. The choice of the above combination is because a shipping environment is indeed unpredictable, volatile, cyclical and international, as well as complex. It is believed that this new theory can yield a new, more pragmatic, insight into the way shipping companies and ships should be managed. The innovative element of this work is that it will be the first time internationally (except for the work of Li and Parsons [1]) that the theory of complexity will be applied to shipping. In addition, no previous attempts have been made to apply this theory to management of shipping companies.     

Strategic re-thinking in shipping companies

This article proposes a framework for how successful shipping companies can develop strategies for growth and take advantage of business opportunities. It is essential to strengthen strategy implementation to trigger faster, internallygenerated and profitable business growth. Formal planning and control systems, as they traditionally exist in shipping companies, need to be modified to allow for such growth. The forward-thinkers, the truly dynamic companies, will be able to perceive business opportunities before anyone else, mobilize their people, and implement the necessary strategies. In doing so, a balance must be struck between the everyday and visionary focus, between the top-down and bottom-up focus, between the business and corporate portfolio focus. Shipping companies can learn from the example of the progressive business leaders in other fields, capitalizing on their way to succeed and grow, by developing a dual capability to ‘see’ new opportunities and to ‘mobilize’ the relevant organizational resources to implement these. Examples from successful shipping companies are provided.     

Strategic re-thinking in shipping companies

This article proposes a framework for how successful shipping companies can develop strategies for growth and take advantage of business opportunities. It is essential to strengthen strategy implementation to trigger faster, internallygenerated and profitable business growth. Formal planning and control systems, as they traditionally exist in shipping companies, need to be modified to allow for such growth. The forward-thinkers, the truly dynamic companies, will be able to perceive business opportunities before anyone else, mobilize their people, and implement the necessary strategies. In doing so, a balance must be struck between the everyday and visionary focus, between the top-down and bottom-up focus, between the business and corporate portfolio focus. Shipping companies can learn from the example of the progressive business leaders in other fields, capitalizing on their way to succeed and grow, by developing a dual capability to 'see' new opportunities and to 'mobilize' the relevant organizational resources to implement these. Examples from successful shipping companies are provided.     

Environmental awareness and practice concerning maritime air emissions: the case of the Greek shipping industry

One of the most urgent environmental problems facing the shipping industry today is the reduction of Greenhouse Gas (GHG) emissions from its operations and the possible cost-effective ways in which this reduction could be accomplished. Various technical and operational measures have been proposed as well as market-based instruments for the achievement of the compliance of marine industry with these measures. This paper investigates the levels of environmental awareness of the Greek shipping companies and their views and practices on the proposed policies for the reduction of GHG emissions from their ships. A survey was carried out using a questionnaire distributed to Greek shipping companies of different sizes, involved in different segments of the marine industry, so that the survey's results not only represent a large part of the Greek shipping industry but also reveal the different environmental attitudes and practices on maritime GHG emissions among the shipping companies. Given the size and the importance of the Greek shipping industry in the international maritime field, this paper's results present a special significance as they could be further analyzed and taken into account for the achievement of the compliance of marine industry with any future policy instrument for the reduction of maritime GHG emissions.     

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 relative efficiency and financial risk assessment of shipping companies

Since shipping companies are highly competitive, we ask whether financial risk assessment tools impact company performance and, therefore competitiveness and efficiency. Stochastic Frontier Analysis (SFA) is used in the evaluation. Based on distinct features of the risk-return relationship, three cargo segments in the shipping industry are studied—dry bulk, liquid bulk, and containerized cargo. The influence of the risk assessment indicators on market and operational efficiency is subsequently determined using a panel regression to determine whether different asset allocation and risk management techniques improve the performance of shipping companies. In this analysis, 79 international shipping companies listed in Bloomberg Shipping Indices are included in the data collected from Thomson One for the period of 2001–2010. Efficiency estimation from the SFA shows that containerized cargo firms have better performance in both market and operating efficiencies. Operating efficiency performance is achieved by lowering liquidity. Market efficiency is improved by well-managed leverage level.     

基于SEEMP的船舶营运能效评价指数的开发及应用:韩国某案例研究（英文）

The CO_2 emission reduction policy of the International Maritime Organization(IMO) recommends that the operation of ships,managed by maritime transport companies, should be energy-efficient. An evaluation method that can determine how successfully a ship implements the energy efficiency plan is proposed in this study. To develop this method, the measures required for energy-efficient ship operations according to the Ship Energy Efficiency Management Plan(SEEMP) operational guidelines were selected. The weights of the selected measures, which indicate how they contribute to the energy-efficient operation of a ship, were derived using a survey based on the analytic hierarchy process(AHP) method. Consequently, using these measures and their weights, a new evaluation method was proposed. This evaluation method was applied to shipping companies in South Korea, and their ship operation energy efficiency indices were derived and compared. This evaluation method will be useful to the government and shipping companies in assessing the energy efficiency of ship operations.     

The perception and image of shipping

The image of the shipping industry plays a vital role in developing maritime transport as a major future, sustainable transport alternative. In particular, it is crucial to understand the image the shipping industry has among young people and the anatomy of the concept in order to be able to effectively promote careers in shipping, to cultivate shipping as an attractive labour market and to develop attractive educational programmes. The focus of this paper is the image of the shipping industry. This study reports on the findings of a large-scale survey of the image of shipping- and image-related concepts among upper secondary school pupils in Sweden, Norway and Greece. We define and analyse empirically by means of multivariate statistical analysis the anatomy of the image concept. We identify various image dimensions, estimate how young people rate the shipping industry along these dimensions and estimate their relative importance to young people who are planning their future careers. The results from this study can be used as a base for describing and explaining the images that young people have of the shipping industry. Such knowledge is fundamental for deriving and developing constructive strategies to promote careers in shipping, to adapt shipping to the expectations of young people and to develop creative and relevant educational programmes. Finally, understanding the image of shipping among young people is important not only for the shipping industry, but for other stakeholders as well, such as ship-owners associations, trade associations, labour unions, transport authorities and administrations and policy makers at the national and supra-national level.     

A qualitative analysis of reintroducing cabotage onto New Zealand's coasts

This paper provides a qualitative analysis of the proposal to 'reintroduce cabotage' onto New Zealand's coasts. New Zealand's coastal shipping trade was opened up to international competition in 1995. The analysis is principally based on a stakeholder analysis of the 83 submissions received by the Shipping Industry Review team, as part of the Government's study to identify ways to increase participation in New Zealand's shipping industry. The stakeholders included New Zealand and international shipping companies, unions, industry associations, freight service providers, manufacturers and producers. The main conclusion drawn from the stakeholder analysis was that to reintroduce cabotage onto New Zealand's coasts would appear to have an overall net negative impact on the New Zealand economy at this stage. However, the Shipping Industry Review team 'was divided on the implementation of cabotage', and a force-field analysis was undertaken subsequently based on the author's stakeholder impact analysis and the Review team's list of pros and cons of reintroducing cabotage. This force-field analysis also supported the author's earlier conclusion. However, the almost 'complete absence of statistics' relating to the commercial activities of the shipping industry in New Zealand places severe limits on the analysis.