Crucial factors influencing international logistics operations for African landlocked countries – A case study of Burkina Faso

ABSTRACT

This study aims to evaluate the crucial factors influencing international logistics operations for African landlocked countries. To this end, a case study and a questionnaire survey were conducted. A total of 147 usable responses from container shipping firms were obtained as a result of the questionnaire survey. The results of factor analysis revealed that transportation capability, external risks, information integration, logistics infrastructure, local agents’ logistics capability, and national law and policy were crucial factors influencing the logistics operations of African landlocked countries. Specifically, local agents’ logistics capability was perceived by respondents to be the most important factor. Moreover, the results of the study also indicated that the highest factor mean values of small shipping companies were related to transportation capability, external risks and the local agents’ logistics capability, whereas container shipping companies that arranged trucks for inland transportation paid more attention to the external risks, logistics infrastructure, the local agents’ logistics capability, and national law and policy.     

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.     

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 performance effect of innovation in shipping companies

The aim of this study is to investigate how innovation contributes to company performance in Norwegian shipping and to extend our knowledge concerning what organizational and inter-organizational factors influence innovation in shipping firms. The study is based on a survey of 46 Norwegian shipping companies. We find that innovation contributes to firm performance. We also find that a conscious strategy, strategy involvement, external relationships, especially market relationships, and productivity slack have a significant positive effect on the degree of innovation. The results are dependent upon the companies’ degree of differentiation and the type of innovation.     

Corporate social responsibility and service quality provision in shipping firms: financial synergies or trade-offs?

This study examines whether the implementation of corporate social responsibility (CSR) and provision of service quality (SQ) to satisfy shippers result in financial synergies or trade-offs for shipping firms. To address this question, a contingency framework was introduced in this study. The literature was first reviewed for hypotheses development, followed by interviews with eight industry practitioners. Subsequently, an internet survey was administered to 156 shipping firms in Singapore, and the obtained data were analysed using path model analysis and simple slope analysis. The results indicate that CSR complements SQ and provides additional but modest financial contribution to shipping firms via customer satisfaction. In addition, synergistic interactions between SQ and CSR were found. Although there are financial synergies from the implementation of CSR and provision of SQ, the analysis reveals that CSR should only be engaged when a shipping firm is fairly competent at delivering quality shipping services. This paper contributes to both theory and practice by framing business decisions on implementing CSR under contingency theory and offering a strategic approach to managing SQ as well as CSR of shipping firms.     

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.     

Shipping's fourth wave: ship management and Vernon's trade cycles

This paper considers the question whether the present recovery of shipping means a return to pre-crisis conditions with hegemony of OECD shipping or whether shipping has irrevocably changed. Shipping is losing its national character as ship management firms contribute towards the fragmenting of traditional ship-owning firms into separately managed activities, making shipping more footloose as an industry and facilitating relocation in least cost factor markets. Trade cycles may be at work in shipping like those observed in many industrial markets, beyond the scope of any single government's ability to control. The dispersion of shipping and shipping firms away from the historical concentration in a few traditional maritime powers towards low-cost countries must be seen as a manifestation of a secular trend, giving rise to a profound reorganization not only of shipping markets but of shipping itself.     

Meta-frontier function approach to operational efficiency for shipping companies

ABSTRACT

This study uses a meta-frontier function approach to estimate operational efficiency and technology gaps for shipping companies. Researchers have evaluated the relative efficiency of shipping firms with the assumption that shipping firms operate under one frontier technology. However, the assumption of one frontier technology is being argued by efficiency literature. Therefore, this study estimates relative efficiency of shipping firms in different market segments (dry bulk, liquid bulk, and containerized cargo), possibly operating with different technologies and, hence, under different frontiers. This study uses a meta-frontier function approach that allows us to distinguish separate frontiers for different groups and decompose efficiency scores relative to the meta-frontier. Data used in this study is collected from Thomson One Banker from 2001-2013 in the form of unbalanced panel data. Empirical results suggest that dry bulk firms’ production technology is more advanced than others and the production frontier is the closest to that of the meta-frontier. In addition, efficiency scores are all low, but containerized cargo firms achieve higher technological efficiency than the other two groups. It is also suggested that containerized cargo and liquid bulk firms should prioritize improvements in their production technology and dry bulk firms should prioritize improving group efficiency.     

The performance effect of innovation in shipping companies

The aim of this study is to investigate how innovation contributes to company performance in Norwegian shipping and to extend our knowledge concerning what organizational and inter-organizational factors influence innovation in shipping firms. The study is based on a survey of 46 Norwegian shipping companies. We find that innovation contributes to firm performance. We also find that a conscious strategy, strategy involvement, external relationships, especially market relationships, and productivity slack have a significant positive effect on the degree of innovation. The results are dependent upon the companies' degree of differentiation and the type of innovation.     

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.     

Vertical integration and its implications to port expansion

ABSTRACT

Over the years many shipping lines have established terminal operation companies, with some set up as independent firms. However, port authorities and local governments have not always welcomed external investment and control with open arms. The economic implications and each stakeholder’s best strategies remain unclear. This study develops an analytical model in order to study the effects of vertical integration, with a focus on shipping lines’ investment in ports’ capacity. Modelling results suggest that vertical integration between terminal operator and a shipping line leads to higher port capacity, port charge, market output and consumer surplus. It also reduces delay costs. All these results suggest that vertical integration can be an important source of synergy for the maritime industry. Although vertical integration increases the participating carrier’s output at the expenses of non-integrating rival shipping firms, our numerical analysis suggests that the overall social welfare is likely to increase. Preliminary empirical tests confirm that vertically integrated ports handle more traffic volumes and are associated with better infrastructure and equipment. Therefore, port authorities and government regulators should carefully review the market competition status as well as port expansion plans.     

Strategic groups in Taiwanese liner shipping

Liner shipping is normally viewed as being oligopolistic in nature with firms competing on the basis of service offered. Since shipping services are easily copied by competitors, if shipping firms want to gain a competitive advantage, it is essential to identify the competitors' strategies. This paper uses the analytical concepts of strategic groups theory to explore the strategic differences in the Taiwanese (the Republic of China, ROC) shipping industry. Cluster analysis is used to classify shipping companies, shipping agencies and ocean freight forwarders into four strategic groups on the basis of the key strategic factors obtained from the factor analysis. The results of multivariate analysis of variance (MANOVA), analysis of variance (ANOVA) and the Scheffe test showed that strategies among the strategic groups are significantly different.     

Multi-criteria analysis of decision-making by international commercial banks for providing shipping loans

This research investigates the underwriting attitude of international commercial banks in lending shipping loans. By adopting the analytic hierarchical process methodology, the underwriting attitude is captured to understand how bankers would deal with shipping loans in response to the current lengthy recession. We find that bankers focus on the criteria of corporate recourse (CR) in their decision-makings. Of the CR factors, the financial strength of shipowner is the most important factor, followed by the shipowner’s business history and the bank–firm relationship. With the current underwriting attitude, the shipping sector may have limited access to shipping loans of international commercial banks due to low corporate ratings caused by the long recession and the nature of industry itself: volatility, fragmentation, capital intensity, high leverage, etc.     

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.     

Factors influencing container carriers’ use of coastal shipping

Coastal shipping is one of the most sustainable and economically competitive modes of transportation. This study employs the analytic hierarchy process (AHP) method to determine the importance of various factors influencing container carriers’ use of coastal shipping. A three-level hierarchical structure with the 17 attributes is proposed and tested. A previous AHP survey in Taiwan has indicated that port policy and infrastructure is the most critical factor influencing the coastal shipping by container carriers followed by operational cost, operational strategy and operational efficiency. Overall, the results indicate that the five most important attributes influencing the use of coastal shipping are simplified customs procedures; leasing a dedicated terminal; transhipment time; a favourable port charge system and efficient terminal operations.     

The role of geomatics engineering in establishing the marine information system for maritime management

Maritime management encompasses the employment and manipulation of human resources, financial resources, technological resources and natural resources that relate to the sea, maritime navigation, shipping, port development and coastal protection. It contributes to the economic growth, price stability, transportation of cargoes and passengers, and business activities of shipping organizations. The efficient management of resources, operations and activities relies on a modern marine information system (MIS) whose information is provided by geomatics engineers and IT professionals, among others. This paper first introduces the role of the geomatics engineer as geodesist, engineering surveyor, land boundary surveyor, cartographer, hydrographer, photogrammetrist and geographic information system (GIS) engineer since all these fields are related to maritime trade, supply chains and development of ports and airports. It then describes the principal components of a web-based MIS and the important role of geomatics engineers in surveying data. This includes collecting data from electronic nautical charts (ENC) and raster nautical charts (RNC), by applying high resolution light detection and ranging (LIDAR), satellite platform sensors and GIS.     

The role of geomatics engineering in establishing the marine information system for maritime management

Maritime management encompasses the employment and manipulation of human resources, financial resources, technological resources and natural resources that relate to the sea, maritime navigation, shipping, port development and coastal protection. It contributes to the economic growth, price stability, transportation of cargoes and passengers, and business activities of shipping organizations. The efficient management of resources, operations and activities relies on a modern marine information system (MIS) whose information is provided by geomatics engineers and IT professionals, among others. This paper first introduces the role of the geomatics engineer as geodesist, engineering surveyor, land boundary surveyor, cartographer, hydrographer, photogrammetrist and geographic information system (GIS) engineer since all these fields are related to maritime trade, supply chains and development of ports and airports. It then describes the principal components of a web-based MIS and the important role of geomatics engineers in surveying data. This includes collecting data from electronic nautical charts (ENC) and raster nautical charts (RNC), by applying high resolution light detection and ranging (LIDAR), satellite platform sensors and GIS.     

Short-term liner shipping bunker procurement with swap contracts

The bunker price fluctuations in recent years have severely threatened the stability of liner shipping companies’ operations. As an efficient countermeasure, the swap contract is widely adopted throughout the liner shipping industry to hedge the procurement risk resulting from the bunker price fluctuation. This paper looks at the short-term liner shipping bunker procurement problem with swap contracts (BPPSC), aiming to optimally plan the amount of bunker purchased from the spot market and the amount hedged by the swap contract for several months ahead. This BPPSC is first formulated as a bunker procurement cost mean-variance minimization (MVM) model, and is subsequently solved using a tangible two-step approach developed in this study. In the first step, the movements of the swap contract price and the spot market price of the bunker are described using a calibrated multivariate generalized autoregressive conditional heteroskedasticity (mGARCH) time series model. In the second step, the MVM model is approximated and solved by a price scenario tree constructed from the mGARCH time series model. A numerical example shows that the risk hedging strategy obtained can simultaneously control the bunker procurement cost as well as the procurement risk from price fluctuations. This article is a revised and expanded version of the abridged eight-page paper entitled ‘Optimal hedging for liner bunker procurement’ presented at ‘2015 International Conference on Logistics and Maritime Systems (LOGMS 2015)’, Hong Kong, 27–29 August 2015.     

我国集装箱班轮运输市场垄断程度研究

从市场集中度指数、市场力量和垄断行为3个方面考察我国国际集装箱班轮运输市场的垄断程度，显然高于将全球作为“一个”市场的程度。从市场集中度指数可以认为我国班轮运输市场已经达到中型寡头垄断程度。我国远洋班轮航线的勒纳指数高于0．6，甚至接近于1，说明班轮公司市场力量之强大。而我国现行的法律法规中没有为班轮运输市场的买方预设运价谈判和利益诉求机制，则使运输需求快速增长的中国外贸企业明显处于弱势地位。     

索马里海盗现状及应对策略

索马里海盗劫持船舶行为给世界航运市场带来了巨大考验,造成了船期的巨大浪费、营运成本的大量增加和船员生命安全的严重威胁。如何提高船舶抵御海盗袭击、劫持的能力成为当今一项极为紧迫的课题。文中介绍了索马里海盗的现状特点并阐述了国际社会应对索马里海盗的策略。