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.     

Assessment criteria for the sustainable competitive advantage of the national merchant fleet from a resource-based view

To determine the competitive advantage of the national merchant fleet, based on the resource-based view, we collect competitive advantage assessment factors from literature, and use the analytic hierarchy process methodology to compare the importance of assessment dimensions and variables. The article's conclusions include a recommendation that the government review the current allocation of resources and implement measures to reinforce the national merchant fleet. This study's findings can be summarized as follows: (1) Criteria dimensions are ranked in the order of competitive strength, organizational capability, tangible assets, and intangible assets. (2) Criteria variables can be ranked in the order of freight revenue, cargo loading ratio, accuracy of shipping schedule, dead weight tonnage, number of vessels, standard of customer service, reputation of shipping company, cargo transportation volume, gross tonnage, sailing frequency, shipping knowledge, fleet specialization, number of crewmen, and fleet technological level. (3) The government should review existing maritime regulations and measures in order to formulate specific and transparent policies, and seek to adopt optimal alternatives from other countries concerning such issues as tonnage tax, bilateral income tax reduction or exemption agreements, second-registration mechanisms and shipbuilding basis, etc.     

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.     

The seafaring labour market in Brazil

The most recent reports on the supply and demand for seafarers suggest that there is an increasing lack of officers for the expanding world's merchant fleet. With a focus on Brazil, this paper discusses a particular seafaring labour market highlighting specific challenges that need to be overcome. The paper looks into the current condition of the imbalance in Brazilian seafaring labour market as well as the prospects for merchant marine officers from the only two maritime schools in the country. Key issues on demand forecast and supply expectation, policy amendment, promoting maritime career, sea career commitment and maritime career empowerment are discussed to illustrate possible means to overcome the imbalance.     

The role of the Federal Government in US marine transportation

The United States meets the world shipping crisis of the 1970s with a high-cost merchant fleet and a national maritime policy which needs clearer articulation. This paper examines the objectives, rationale and methods of implementation of the Us maritime programme with attention, finally, to the question of governmental reorganization.     

The role of the Federal Government in US marine transportation

The United States meets the world shipping crisis of the 1970s with a high-cost merchant fleet and a national maritime policy which needs clearer articulation. This paper examines the objectives, rationale and methods of implementation of the Us maritime programme with attention, finally, to the question of governmental reorganization.     

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.     

Book review

According to the latest BIMCO and Drewry reports, there is a global shortage of officers for the worlds’ merchant fleet. This article focuses on the South African labour market for officers and examines some of the maritime education and training challenges facing these officers in accessing global labour markets. The paper argues that despite processes of globalisation, the nation state can still be an important actor in shaping global labour markets. Using a qualitative approach, interviews were conducted with 10 key informants in the maritime human resources management sectors in South Africa. Interview data was analysed and coded for themes using NVivo qualitative data analysis software (QSR International Pty Ltd., Version 10, London, UK). This was theoretically informed by Braun &; Clarke’s six-step method of thematic analysis. This was combined with a review of labour market statistics to demonstrate that the key challenges facing South African officers are the lack of training berth availability and the lack of South African ship ownership. The solutions adopted by the state includes a limited adoption of best practices adopted by global MET institutions in the United Kingdom, Australia, Singapore, Taiwan and Nigeria. The article contributes to filling the gap in empirical-based maritime studies that are located on Africa.     

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.     

Rethinking maritime privatization in Africa

While recognizing the need for increased participation of the private sector in the maritime industry of developing countries, there is a need to go beyond the call for privatization in terms of mere change of ownership from state to private sector as the only solution to the inefficiency of the maritime industry in developing countries. This limited understanding of the maritime problems of these countries abounds in the literature on maritime privatization. This study departs from this approach and focuses on the political economy of the maritime industry, and suggests that maritime privatization will not necessarily result in increased efficiency of the divested maritime enterprises. Rather, it argues that maritime problems in these countries have less to do with ownership than with the structural constraints in world shipping together with internal management and local ~olitics. The maritime industrv in West and Central Africa is used as a case studv. and recommendations such as selective privatization, 'programme contract', and most importantly, corporatization, are suggested as alternative strategies that could enhance maritime privatization and the development of the maritime industry in developing countries.     

Port state control versus marine environmental pollution

This United States stands alone amongst the nations of the world in its attempt to unilaterally regulate transnational ocean linear services. The major reason for current US regularity policies with regard to scheduled ocean transportation lies in its fundamental distruct of any form of co-operation amongst competitors as demonstrated by its history of antitrust legislation.

The linear industry, because of its unique technical and economic charectersitics has given rise to the establishment of ocean conferences—co ordinating sgreements between the operators of linear vessels. Whilst ocean conferences are permitted—even encouraged—by the their most diluted form, the so-called ‘open conferences.

This Paper offers a critical review of Successive US regulatory practices in maritime transport. It is argued that these practices result in excess costs in US trades to the order of $1 billion annually, and that the linear industry‘s efficient functioning is seriously impaired by these rules-rules imposed by a government administration which fails to recognize that the linear industry‘s technical efficiency is of far greater importance than its market performance.     

The growth of fleets registered in the newly-emerging maritime countries and maritime crises

This paper suggests the existence of a feedback relationship between the dynamic entrance of less-developed countries in shipping and the prolongation and deepening of maritime crises. The duration and extent of the transitional period of crisis depends also on the specific terms of the 'succession' procedure between fleets with different cost levels. During the last major maritime crisis, nations at a less advanced stage of development entered the maritime industry producing a service that had become—more or less—'standardized', following the Vernon product cycle more than all other cycles. The distribution of world tonnage among the different groups of countries underwent major changes as the effects of the economic crisis after 1973, which coincided with developments in the supply of tonnage, created favourable conditions for the rise of the lower cost fleets of developing countries, in a feedback relationship. The restoration of freight levels during the late 80s and early 90s, which was accompanied by a certain stabilization in the various groups of countries' shares in the world fleet, corroborates from the opposite direction the hypothesis of a close interrelationship between maritime crisis and changes in the international hierarchy in shipping.     

Russia's waterborne trade and transport: issues in market transformation

During the Soviet era most of the Union's international non-oil trade was transported over water. Following the former Soviet Union's break-up, the share of water transport in accomodating Russia's trade has become modest, as the railways carry most goods that are traded domestically or with the new republics of the Commonwealth of Independence States, which are now treated as foreign countries. Adjusting the Russian Federation's water transport industry and related infrastructure to the changed geo-political and regional economic conditions proves difficult. While the country inherited a fair share of the former Soviet merchant fleet, it is deprived of port assets which were originally built to serve all-Union trades but are now located in other republics of the Commonwealth of Independent States. Major reforms are required to streamline the provision of port services and the ports' commercial performance. The Russian Government took several steps in 1992 which effectively put the national water transport carriers on a commercial footing. The effect has been that many carriers chose to leave the national transport scence and engage in trades which do not include Russia. The Government is now confronted with the need to reduce dependence on foreign-owned vessels and to modernize the national merchant fleet. Difficult policy decisions have to reverse these trends so that national maritime industry asstes become more available to meet the country's needs.     

集装箱货运仿真模型在珠三角港港口投资方案评估(英文)

In the Pearl River Delta (PRD), there is severe competition between container ports, particularly those in Hong Kong, Shenzhen, and Guangzhou, for collecting international maritime container cargo. In addition, the second phase of the Nansha terminal in Guangzhou’s port and the first phase of the Da Chang Bay container terminal in Shenzhen opened last year. Under these circumstances, there is an increasing need to quantitatively measure the impact these infrastructure investments have on regional cargo flows. The analysis should include the effects of container terminal construction, berth deepening, and access road construction. The authors have been developing a model for international cargo simulation (MICS) which can simulate the movement of cargo. The volume of origin-destination (OD) container cargo in the East Asian region was used as an input, in order to evaluate the effects of international freight transportation policies. This paper focuses on the PRD area and, by incorporating a more detailed network, evaluates the impact of several infrastructure investment projects on freight movement.     

Canada and the Liner Code of Conduct: Consumerism and public policy

This paper focuses on the potential effects the UNCTAD Liner Code of Conduct's provisions for cargo reservation on consumers of shipping services, with special reference to Canada. It is clear that as more nations enact flag-discriminating legislation then fewer choices amongest distribution options will exist for the consumer. This will involve nations like Canada in a fundamental reassessment of their current shipping policy, since the rationale of 'free market' competition will no longer be valid: carrier and services options will be curtailed. In the light of this, Canada will be forced to examine the concepts of 'free trade' and 'private sector enterptise' and develope a considered response that protects the consumer interest.     

Management and labour in shipping: A role for co-operatives

The employment and management policies of the shipping industry are in legal and administrative confusion. The shipping industry is struggling with an unworkable global governance based on flag state sovereignty and a sanctionless international regulatory regime. Seafarers suffer most from this state of affairs, but so do the shipping industry’s public image. Few co-operatives of maritime workers exist in national or international shipping. A new employment theory is long overdue. Human centred management policies can only attain their full potential through co-operative or mutual associations. This paper describes the application of enlightened and socially conscious management principles to the shipping industry. Seafarers’ co-operatives are the future organisational building blocks of the shipping industry. Co-operatives can rescue maritime workers from developing countries from exploitation and the debilitating effects of casual labour by providing “all in one” seagoing and shore based professional careers. Seafarers’ co-operatives can solve the shipping industry’s maritime training and education problems. The seven universal principles of co-operative management will guide shipping management in setting human centred objectives that command respect of those who come in contact with the shipping industry.     

The impact of US regularory practices on the productivity of ocean liner services?

This United States stands alone amongst the nations of the world in its attempt to unilaterally regulate transnational ocean linear services. The major reason for current US regularity policies with regard to scheduled ocean transportation lies in its fundamental distruct of any form of co-operation amongst competitors as demonstrated by its history of antitrust legislation.

The linear industry, because of its unique technical and economic charectersitics has given rise to the establishment of ocean conferences—co ordinating sgreements between the operators of linear vessels. Whilst ocean conferences are permitted—even encouraged—by the their most diluted form, the so-called 'open conferences.

This Paper offers a critical review of Successive US regulatory practices in maritime transport. It is argued that these practices result in excess costs in US trades to the order of $1 billion annually, and that the linear industry's efficient functioning is seriously impaired by these rules-rules imposed by a government administration which fails to recognize that the linear industry's technical efficiency is of far greater importance than its market performance.     

Occupational mortality among British merchant seafarers (1986-1995)

The decline of the British merchant fleet in recent years has led to an increasing proportion of British seafarers taking employment in flags of convenience and other foreign-registered vessels. It is then a matter of some importance as to whether the British seafarers who serve in foreign ships are at greater risk of mortality and, when fatalities do occur, whether the deaths are appropriately investigated. Using information obtained from files at the Registrar General for Shipping, the Marine Accident Investigation Branch and many Coroners, it is evident that British seafarers serving in foreign vessels were, during the study period 1986-1995, at greater risk of mortality through work-related accidents, suicides and unexplained disappearances at sea. Those serving in the British fleet, however, died more frequently through illnesses, and through off-duty accidents and drowning. When fatalities occurred in the British fleet, the relevant log book extracts were routinely deposited with the appropriate British authorities; for deaths in FOC vessels these documents were rarely forthcoming. While the deaths of British seafarers were investigated in the large majority of cases, foreign flag state authorities seldom conducted inquiries; it was the British authorities who usually conducted the investigations.     

A decision-making solution to ship flagging out via administrative maritime strategies

The choice of flag is one of the main strategic/critical decisions for shipowners in the initial stage of maritime enterprises. On the other hand, flagging out has a great influence on the prestige and economic benefits for traditional maritime countries. To address this issue, this paper proposes a Multiple Criteria Decision Making (MCDM) approach using a Primarily Strategic Action Plan (PSAP) in a short-run period and a Secondary Strategic Action Plan (SSAP) for a long-term perspective. The case is demonstrated with respect to the flagging out issue in Turkish shipping fleet. It measures the decision-making tendencies of shipowners using Turkish National Shipping Registry (TNSR), Turkish International Shipping Registry (TISR), and Open Registries (ORs) as potential shipping registry alternatives. The model outcomes originally contribute to Turkish maritime policy, especially in terms of strengthening and reinforcing of TNSR procedures.     

Making the Australian flag fleet efficient: dysfunctional policy processes and the 'play of power'

In 1997 the Australian government introduced reform measures aimed at improving the efficiency and cost effectiveneess of the Auistralian maritime sector. These measures are part of an ongoing reform programme initiated in the early 1980s; but despite concerted efforts by a succession of governments and the payout of high labour redundancy costs the problems of inefficiency, high costs and low profitability persist. This paper focuses on the structure and mechanism of the policy making processes that have attempted to deal with the problem of making the Australian national flag fleet efficient and competitive. It does so because it is a fundamental tenet of the paper that it is the process of policy making that so frequently—if not invariably—determines policy content and outcomes.