Evolution and research trends of container shipping

The shipping industry was transformed by the expansion of international trade and technological innovation, notably containerization, since the 1960s. Accordingly, this was followed by a significant increase in research addressing different aspects of container shipping. Despite such availability, important questions have remained unanswered: what are the major contributions that the research community has made to the container shipping industry, global and regional economies? Have their contributions been skewed towards particular themes, directions, and geographical areas? What can the shipping research community learn from the evolution and trends of container shipping research so that they can continue to contribute to the well-being of the global and regional economies? To address these questions, the paper undertakes a critical review and analysis on the evolution and trends of research in container shipping in the past four decades, based on a collection of 282 papers investigating different topics in container shipping featuring in major scholarly journals between 1967 and 2012. The study enables the shipping research community to enhance self-understandings and identifies major gaps for further research.     

Connectivity analysis of the global shipping network by eigenvalue decomposition

ABSTRACT

Maritime shipping necessitates flexible and cost-effective port access worldwide through the global shipping network. This paper presents an efficient method to identify major port communities, and analyses the network connectivity of the global shipping network based on community structure. The global shipping network is represented by a signless Laplacian matrix which can be decomposed to generate its eigenvectors and corresponding eigenvalues. The largest gaps between the eigenvalues were then used to determine the optimal number of communities within the network. The eigenvalue decomposition method offers the advantage of detecting port communities without relying on a priori assumption about the number of communities and the size of each community. By applying this method to a dataset collected from seven world leading liner shipping companies, we found that the ports are clustered into three communities in the global container shipping network, which is consistent with the major container trade routes. The sparse linkages between port communities indicate where access is relatively poor.     

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.     

Scenario analysis for supply chain integration in container shipping

Competition in the business world nowadays is largely between supply chains, rather than individual players only. The same situation exists in container shipping. The study looks into container shipping from an integrated perspective and investigates the nature and level of supply chain integration in container shipping. Based on empirical examinations of the world's top 30 container shipping lines, a scenario analysis is conducted. The paper aims to present the scenario analysis for examining supply chain integration in container shipping. It also aims to formulate strategic recommendations for liners to create and sustain competitive advantage. The scenario analysis is designed to allow more complete consideration of alternative possible outcomes and their implications on the research topic. It involves an evaluation of past and present events and provides a plausible discussion of what might occur in the future. It depicts four scenarios of supply chain integration in container shipping, namely, low integration, partner-focused integration, activity-focused integration and high integration. On the whole, research findings suggest that market situations favour those scenarios representing higher level of supply chain integration. Importantly, with reference to the scenario analysis, shipping lines should position themselves in an appropriate scenario and formulate strategic plans accordingly.     

集装箱航运服务组合拍卖模型研究

根据运输的“范围经济性”原理,阐述了集装箱航运服务组合拍卖的适用性,围绕价值因素和价值评价因素,分析了集装箱航运服务组合拍卖的比较优势,结合集装箱航运服务的特点,以拍卖者效用最大化和投标者总估值最大化平衡为目标,设计出了组合拍卖的机制和运作程序;针对组合拍卖中的竟胜标问题,建立了集装箱航运服务组合拍卖的一般优化模型,并通过引入集装箱航运服务质量属性参数和运量限制等约束条件,对其进行了改进。从而为实现集装箱航运服务在线拍卖提供理论支持和计算平台。     

Vulnerability analysis of global container shipping liner network based on main channel disruption

The Malacca Strait, the Suez Canal and the Panama Canal play an important role in the global container shipping. To study the impact of main channel interruption on the container shipping, we analysed statistical data on all routes operated by the top 100 global container liner companies and constructed a network model. We selected four topological metrics to measure the network’s connectivity and used the network weekly total shipping capacity and average shortest shipping time to measure the network’s transportation capacity and transportation time. The interruption of the main channel is simulated, and the changes in the metrics are analysed. The results indicated that the network’s vulnerability is sensitive to main channel interruption. If the Malacca Strait is interrupted, the network’s prosperity degree fall by almost half and the network’s transportation time increase by more than a quarter if the Suez Canal is interrupted. In addition, East Asian and European container liner shipping have more than 50% dependence on the Malacca Strait and the Suez Canal. Moreover, the container transport time between ports in East Asia, Europe, and North America and the rest of the world increases by an average of 4–9 days in the main channel interruption.     

Benefit segmentation of the container shipping market in Turkey

ABSTRACT

Marketing policies have gained more importance in container shipping as the industry experiences challenges arising from commoditization. Market segmentation is fundamental to marketing policies, yet it needs a detailed analysis in container shipping. Accordingly, this paper aims to explore homogenous customer groups in container shipping by conducting a segmentation analysis, which can help container lines apply more efficient marketing policies. A survey study is conducted on 356 shippers in Turkey. The study develops five reliable and valid selection criteria factors and applies cluster analysis based on the selection criteria factors. The cluster analysis produces a total of six benefit segments which are differentiable. The segments are significantly identified by the demographic characteristics of shippers. The paper suggests several implications for the marketing policies of container lines.     

Weekly container delivery patterns in liner shipping planning models

This paper addresses a fundamental question related to nearly all container liner shipping planning models: whether the implicit assumption of identical container delivery pattern every week is valid in a situation of identical shipping services and identical cargo demand every week. We prove that when the number of containers transported from one port to the next is formulated as a continuous variable, the resulting mathematical model with an identical container delivery pattern is equivalent to the model with general container delivery patterns which can be different in different weeks. When the number of containers transported is formulated as an integer variable, the model with an identical container delivery pattern is not equivalent to the model with general container delivery patterns. However, the difference between the optimal objective values of the two models is negligible for practical applications. In sum, little, if not nothing, is lost by assuming an identical container delivery pattern in liner shipping planning models.     

An equilibrium-based network model for international container flows

The liner shipping industry is a highly complex system and is extremely sensitive to rapid changes in the environment. To facilitate decision-making in response to endogenous and exogenous shocks, this research develops a strategic network model based on equilibrium principles to analyze the international marine liner shipping network according to port charge, congestion level at the port, and load factor of the ship and estimates the possible container flows under different scenarios in the long run. The distribution model of container flows is extended from Beckmann's transformation. To calibrate the parameters employed in the model so that it offers greater fidelity in predicting container flows, we devise a descent direction-based heuristic. The proposed framework is empirically applied to various scenarios to validate the model and predict the flow pattern after significant events. By identifying these events’ potential impact on the maritime network, the presented model can help relevant stakeholders reduce uncertainty when shaping maritime policies so that they can seize opportunities to increase their competitiveness and maintain their advantage in the maritime market.     

Dynamics of liner shipping service scheduling and their impact on container port competition

Container ports provide the primary interface where physical exchange between buyers and sellers of containerised shipping capacity can be consolidated and realised. Consequently, ports that are able to complement and add value to the objectives of shipping lines and shippers will become focal points for containerised cargo flows. To evaluate container port competition, the authors propose a practical and direct approach based on revealed preferences of shipping lines with respect to container shipping service dynamics. The container shipping networks are generated as carriers formulate their service schedules to capitalise on opportunities that are presented by evolving container trade patterns along trade routes and relative changes in the competitive profile of the ports of call. Empirical results showed that this approach offers a deeper understanding on the workings and evolution of competitive dynamics between ports, which may not be obvious from observations of port performance at the aggregated level. Benefits of the approach also include raising awareness that policy makers should be aware of the need to understand the nature, extensity and intensity of competitive relationships between ports as they craft and implement policies to correct for the actual or perceived market failures in the industry.     

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.     

The impacts of maritime piracy on global economic development: the case of Somalia

This paper investigates the impacts of maritime piracy on global economic development. Calibrated with data between 2003 and 2008, we model shipping demands and competition in the Far East-Europe container liner shipping service and investigate the economic welfare loss effects due to reduced volumes of trade and shipping, as well as efficiency loss due to geographical re-routing of shipping networks which would be otherwise uneconomical. The substantial economic loss simulated from our model indicates that, even from purely the perspective of economic interests, more efforts from the international community should be dedicated to tackle maritime piracy.     

Liner alliances in the globalization era: a strategic tool for Asian container carriers

There has been an increased interest recently in alliances as successors of the large consortia that used to operate in the context of the conference system. Today, having become a common means and term of co-operation in a variety of other industries, alliances are posited as the response of the supply side of liner shipping to important changes on the demand side; alliances have, thus, become predominant in the most important routes for container cargoes. In recent years, however, the list of major container traffic generators and the list of major carriers of containerized cargoes have begun to contain more common entries, generally originating from the Asian region. Asia is, however, a large continent and the entrance of Asian carriers into liner shipping has not been simultaneous; the position, strategies and co-operation strategies of Asian companies have more differences than they share common features. Nevertheless, this paper suggests that alliances are a distinct form of co-operation in liner shipping and the empirical evidence based on a survey in the region supports this hypothesis. The similarity of attitudes of the major Asian container carriers vis a vis alliances is in this way revealing in terms of the range of motivations for participating in the alliance system in a globalized transport environment.     

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.     

Case study analysis of the impacts of electronic commerce on the strategic management of container shipping companies

Despite the prevalence of its use, very little is understood about the role of electronic commerce (EC) practice on the strategic management of container shipping companies. Four case studies were undertaken to assess the main uses, motivations, barriers and strategic relevance of EC in the container shipping industry between 1992 and 2002. The cases studies included one large, one medium and one small deep-sea container line, and one medium-sized feeder line. The research found that despite pressing technical and managerial barriers, the need to improve internal economies provided the most fertile grounds for EC use in 1992 and EC was seen as a tactical tool to achieve these goals. By 2002, customer-oriented motivations became critical to the increased relevance of EC and to its perception as a business necessity.     

Case study analysis of the impacts of electronic commerce on the strategic management of container shipping companies

Despite the prevalence of its use, very little is understood about the role of electronic commerce (EC) practice on the strategic management of container shipping companies. Four case studies were undertaken to assess the main uses, motivations, barriers and strategic relevance of EC in the container shipping industry between 1992 and 2002. The cases studies included one large, one medium and one small deep-sea container line, and one medium-sized feeder line. The research found that despite pressing technical and managerial barriers, the need to improve internal economies provided the most fertile grounds for EC use in 1992 and EC was seen as a tactical tool to achieve these goals. By 2002, customer-oriented motivations became critical to the increased relevance of EC and to its perception as a business necessity.     

Reposition of empty containers of different life stages integrated with liner shipping network design

ABSTRACT

This paper integrates empty container reposition with container shipping network design considering the container life stages. A mixed-integer linear programming model is built to determine the liner shipping network, the initial launch ports of new containers, the ports for scrapping obsolete containers, the empty container reposition scheme and the containers of different life stages being used for a specific voyage. A case study is done by taking liner shipping among China, Japan and South Korea, Southeast Asia, Europe and the US as an example. The results show that over 93% of new containers are put into use in China while 63% of old containers are scrapped in Europe or the US, and 73% of containers used for packing cargoes from China to the US are those at the Decline Stage or the Exit Stage.     

东亚港口集装箱运输发展前景

东亚地区正在建设或规划建设大量的集装箱码头,这是否适应本地区未来港口集装箱运输发展形势值得关注.介绍英国海运咨询有限公司的相关研究成果.     

Green shipping management capability and firm performance in the container shipping industry

This study empirically identifies crucial green shipping management capability and examines its impact on firm performance using survey data collected from container shipping firms, including shipping companies and agencies. Exploratory and confirmatory factor analysis is performed to identify three critical green shipping management capability dimensions, namely, greener policy, greener ships, and greener suppliers. In this study, firm performance is categorized into environmental performance and financial performance. The results indicate that a greener policy has a direct and positive influence on both the greener ships and the greener suppliers factors. Greener ships and greener suppliers are found to have an indirect and positive influence on financial performance through environmental performance. Accordingly, this study suggests that container shipping managers could focus on organizational green shipping management capability, specifically regarding policies, ships, and suppliers, to improve their environmental and financial performance. The theoretical and practical implications of the findings for container shipping firms have been discussed.     

集装箱船舶大型化对上海港发展的影响和机遇

在集装箱航运市场中,由于超大型集装箱船优良的经济性能及全球集装箱航运结构的重组,并且在全球国际集装箱运输呈增长的趋势背景下,大批超大型集装箱船投入运营,对上海港的运营和发展形成一定的影响,但同时也给上海港的发展带来了机遇。上海港要应对国际航运市场的这种变化,就必须采取相应的策略。随着长三角经济圈的发展和洋山深水港一期、二期工程的完工,进一步巩固了上海港的国际集装箱枢纽港地位,上海港应抓住新的发展机遇,为上海早日建成国际航运中心奠定更加坚实的基础。