Freight forwarders speak: the Perception of Route Competition via Seaports in the European Communities Research Project. Part 1

This paper, in two parts, reports on the Perception of Route Competition via Seaports in the European Communities Research Project wherein a total of 72 interviews were held in 11 European countries. Respondents were also asked to fill in a questionnaire, and it is these questionnaire findings that are reported in this first part of the paper. These is a perhaps surprisingly widespread belief that frequency of shipping service is a main reason for choice of seaport in cargo movement. Time on the route and labour problems at ports are major concerns of freight forwarders whose minds are powerfully imbued with the spirit of free enterprise(absence of governmental or other planning agency intervention). Among other major conclusions are a preference for 'delivered price' consignments and the belief in the importance of port charges in route determination (see table 2 for summary of major conclusions).     

Transport decision-makers speak: the Seaport Development in the European Communities Research Project†—Part II

This paper, in two parts, reports on the Seaport Development in the European Communities Research Project wherein forty interviews with decision-makers were held in European seaports, and another forty were held with shipowning organizations. This part of the paper reports on analysis of the open-ended tape-recorded responses of the interviewees to six separate sets of propositions they were shown. The first major conclusion is that decision-makers in the ports and shipping industries have a great deal to offer in helping to shape future EC policies about seaports. The second is that these decision-makers on the whole agree with students of the subject, but outside the industries, that a step-by-step approach is possible towards a Common Seaports Policy. Indeed, without prompting, some respondents even confirmed a previously published suggestion for the first stage of this process—the necessity for an agreed standard basis for ports' accounts. It is believed that a small secretariat within the Brussels Commission could weld representatives of the industries into a working group which could make real progress by consulting their colleagues through interviews similar to those successfully conducted for this project.     

Transport decision-makers speak: the Seaport Development in the European Communities Research Project —Part II

This paper, in two parts, reports on the Seaport Development in the European Communities Research Project wherein forty interviews with decision-makers were held in European seaports, and another forty were held with shipowning organizations. This part of the paper reports on analysis of the open-ended tape-recorded responses of the interviewees to six separate sets of propositions they were shown. The first major conclusion is that decision-makers in the ports and shipping industries have a great deal to offer in helping to shape future EC policies about seaports. The second is that these decision-makers on the whole agree with students of the subject, but outside the industries, that a step-by-step approach is possible towards a Common Seaports Policy. Indeed, without prompting, some respondents even confirmed a previously published suggestion for the first stage of this process—the necessity for an agreed standard basis for ports' accounts. It is believed that a small secretariat within the Brussels Commission could weld representatives of the industries into a working group which could make real progress by consulting their colleagues through interviews similar to those successfully conducted for this project.     

Transport decision-marks speak: the Seaport Development in the Europena communities Reasearch Project —Part I

This paper, in two parts, reports on the Seaport Development in the European Communities Research Project wherein forty interviews with decision-makers were help in European seaports, and another forty were held with shipowning organization. Respondents were also asked to fill in a questionnaire, and it is these questionnaire, and it is these questionnaire findings that are reported in this the first part of the paper. Expected contrasts between planning philosophies in Britain, Ireland, and Denmark on the one hand and the rest of the EEC on the other were confirmed, and regularity of cargo on offer appears generally belived as the most important factor in route planning of ships. Among other major conclusions (see table 5) are the view that ship congestion at ports is a more scute problem than the over-provision of berths and that short-term low operating costs are considered more important than the security offered by mediumterm plans.     

Competitiveness between short sea shipping and road freight transport in mainland port connections; the case of two Greek ports

While road freight transport is essential to any modern economy, short sea shipping (SSS) offers a competitive alternative mode of freight transport in terms of private and social costs, when applied in the connection of mainland ports. This mainly stems from the fact that within the context of the latter costs, accidents and environmental impacts in many road links constitute undesirable externalities with which road freight transport is heavily burdened. This paper compares the aforementioned economics of road and sea transport with reference to the connection of the port of Patra (the main western freight gate of Greece) with West Attica (the biggest Greek industrial centre), aiming at providing a viable solution towards the promotion of SSS in the transport chain between mainland ports.     

Cooperation among freight forwarders: Mode choice and intermodal freight transport

The objective of this paper is to compare vertical and horizontal cooperation among freight forwarders. The paper analyses three freight forwarders (‘players’) with two different means of transportation. The first two players are truck-operating freight forwarders. The third player is a freight forwarder with its own ship. For the purposes of analysis, the paper applied a two-stage game. The results revealed that the best form of cooperation is the one in which the large truck-operating company would establish a coalition with the ship-operating company; that is, vertical cooperation. This cooperation would generate better payoffs in the form of profit, not only to the members of this coalition, but also to the player that has not joined the coalition. However, user surplus is negative in all coalitions, which shows that the establishment of these kinds of cooperation is not beneficial (in terms of prices) for the users of these service providers.     

Conference-shipper loyalty contacts: Time for a re-think?

This paper examines the purposal by the British Shipper's Council (BSC) and the UK government to place a statutory limit, by means of a regulations implementing the EEC rules for competition, upon the proportion of a shipper's cudstom that may be demanded in a loyalty agreement with a liner conference.

The development of 70% loyalty is traced through the following the various drafts of the EEC competition rules for sea transport; the department of trade investigation which found freight rate disparities that were caused partially by the less competitive environment in the UK than on the Continent; and evidence given on 70% loyalty beforew the house of Lords Select Commitee on the European Communities.

By considering the precise proposals, as suggested by the BSC, and means of enforcing them, 70% loyalty is found to be eminently practicable. the short-term consequences of its introduction are unlikely to be great, considering the shippers' needs for a good quality service; but in time the additional competition fostered by a less-than-100% tie would cause radical changes; conferences would have to aopt limit-pricing and respond to competition loyalty ties might be restricted to service contracts with large shippers. These effects would be felt far more in the UK since the continental environment is in any case more competitive.

It is concluded that 70% loyalty should be imposed upon conferences by means of the EEC Regulations in order to enhance the competitive environment of linear shipping.     

The value of options for time charterparty extension: an artificial neural networks (ANN) approach

The most frequently associated options in the physical shipping market are options to extend the charter period on time charters and additional shipment options on contracts of affreightment. The value of freight options, in practice, is estimated mostly by referring to forward curves. An option on freight has different properties from its financial counterparts, and the straightforward adoption of theoretical models does not produce promising results. In this paper, extension options, which have the property of options on futures, were transformed into regular European options before the application of the Black-Scholes model (BSM). The efficient market hypothesis, which justifies the parity of the performance of a long-term charter to that of repetitive short-term charters, worked as the basis for the transformation. The option values determined by the BSM were compared with actual realized values. Additionally, the artificial neural networks (ANN) was employed to derive the option values. This study is meaningful as the first-time application of both the closed-form solution and the ANN to the valuation of physical freight options. The research results can contribute to the quality of chartering decisions. The results could also be used in quantifying credit risk, as extension options tend to be granted to charterers with more creditability.     

The container terminal community

Over the past 30 years, technological developments have not only affected the design and operation of the port function, but also the organizational and institutional relationships within the port community. Two inter-organizational interaction models are presented, drawing on the findings of over 200 in-depth interviews with senior managers representing terminal operators, shipping lines, feeder operators, ship agents, road hauliers, freight forwarders and shippers serving the UK?Far East trade. The first model represents a breakbulk berth of the 1960s and the second a modern container terminal community. In comparing the models, it is shown that containerization has transformed the fragmented breakbulk operation of the 1960s into the cohesive container terminal community that today facilitates port operations. The paper concludes by examining trends in key inter-organizational relationships in the community and the emergence of eBusiness.     

Monetary values of transport service attributes: land versus maritime ro-ro transport. An application using adaptive stated preferences

The objective of this work is that of illustrating a methodology to derive, in terms of trade-offs, the relative values of transport service attributes for logistics operators. In particular, the analysis yields insights on the preferences for time-savings, frequency and reliability of the transport service in terms of price, of a sample of freight forwarders located in the South of Italy. The data is gathered using an Adaptive Stated Preference application and the estimates are obtained through a Tobit ML estimator on both company specific data and pooled data. The results show that frequency is the most highly rated characteristic of the service together with reliability. The value of time is significantly lower in both cases. The outcome is consistent across estimations and, substantially in line with the outcome of previous studies carried out on operators active at different levels of the transport-logistic chain. Until now, in fact, studies have been carried out uniquely on carriers or producers. The selection of freight forwarders allows to shed light on a segment of the market that accounts for more than half of the transport-related decisions. Furthermore, the present study focuses on a comparison between all land transport and maritime ro-ro alternatives, in line with the growing interest on the integration among transport modes. The output signals both the absence of any a priori preclusion for ro-ro maritime services and the extremely important role that frequency of service assumes for the development and the establishment of maritime services as realistic alternatives to all land transport.     

Impact of information technology on the methods and working systems of the freight forwarding industry

Freight forwarding fulfils the role of information processor. The past decade has seen considerable change in the information industry. Combine these two facts and we can begin to explain why freight forwarders have a vested interest in using computer based information systems to their full. Many organizations have tried, some with considerable success, but in others a lack of real commitment and professionalism has cost considerable sums. In this paper the background to the industry is reviewed together with an analysis of the reasons for the poor implementation of successful systems.     

定期租船合同中租金的确定

船舶营运中,船舶经营人以期租方式将船租给承运人时,运价的确定是租船合同中一项重要的内容。从船舶经营人的角度出发,通过分析船舶营运成本,将上述复杂的计算编制成简明的EXCEL计算程序,以期对船舶经营人有所裨益。     

Changes in the external costs of freight surface transport In Spain

This paper studies the external costs of surface freight transport in Spain and finds that a reduction occurred over the past15 years. The analysis yields two conclusions: trucks have experienced a reduction in external costs, and rail has lower externalities. The external costs of road freight transport decrease between 1993 and 2007 (44%). The external costs of rail freight increase by 12%. During this period, the external costs of road freight related to climate increase by 16%, oppositely than those from air pollution and accidents (51 and 44%). The external costs of rail related to pollutant emissions and climate increase by 4% and 43%. Oppositely, the external costs related to accidents decrease by 27%. Road freight generates eight times the external costs of rail, 2.35 Euro cents per tonne kilometre in 2005 (5.6% accidents, 74.7% air pollution and 19.7% climate) vs. 0.28 (13.4% accidents, 53.9% air pollution and 32.7% climate).     

Liner shipping industry sets sail with full speed

The article presents the past and current trends in liner shipping and stresses that in a near future, the market will benefit from five main factors: the robust shipping surrounding from international trade; the structural change in industrial relocation; the China factor; the increase in ship-owners’ profitability and lastly the liberalisation of markets and of the shipping industry that will generate new opportunities. At the same time, the article also sheds light on factors that could put limits to the growth in the short run: the expected decrease in freight rate, the increase in bunker costs and in port dues combined with the strengthening of imbalance in trades are identified as the main elements that could put limits on the vitality of liner shipping business.     

Containerization, inter-port competition, and port selection

This paper explores the criteria shippers employ in the port selection process. By focusing on the containerized traffic between the North American Mid-West and Western Europe, the factors considered by exporters and freight forwarders are examined. The findings suggest that decision-makers are influenced more by price and service considerations of land and ocean carriers than by perceived differences in the ports of entry and exit. Port infrastructures do not appear to play an important role in the routeing decisions made by an important group of independent businesses involved in the North Atlantic container trade.     

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.     

Do port security quality and service quality influence customer satisfaction and loyalty?

ABSTRACT

This study uses Kaohsiung Port as a case study to evaluate the relationships between port security quality, port service quality, customer satisfaction, and customer loyalty. For this purpose, a survey was conducted with shipping companies and freight forwarders in Taiwan. The results indicate that port security quality has a direct and positive impact on both port service quality and customer satisfaction; port service quality has a direct and positive impact on both customer satisfaction and customer loyalty; and customer satisfaction has a direct and positive impact on customer loyalty. However, the impact from port service quality is more significant than that of port security quality. Accordingly, this study suggests that Kaohsiung Port should concentrate on improving its service quality in order to enhance customer satisfaction and customer loyalty.     

The impact of dry port operations on container seaports competitiveness

The concepts of intermodal logistics and distribution networks have made integration of the inland freight distribution system essential for an efficient container seaport system. Inland components, such as dry ports, which exist within the seaport system, have become important in shaping the performance and competitive strategies of container seaports. Owing to the importance of interdependence between dry ports and container seaports, this paper aims to investigate the impact of dry port operations on container seaport competitiveness. It conducted an empirical study in Malaysia through 120 online surveys to key stakeholders of dry ports, including freight forwarders, shippers, seaports, rail operator, shipping lines, and haulers. The data collected were analysed using exploratory factor analysis (EFA). The results from EFA show that Malaysian dry port operations have impacts on seaport competitiveness. These include enhancing seaport performance, increasing service variations for seaports, improving seaport-hinterland proximity, increasing seaport trade volume, and enhancing seaport capacity.     

The external cost of speed at sea: An analysis based on selected short sea shipping routes

According to the mid-term review of the EU White Paper on Transport, Short Sea Shipping (SSS) is expected to grow at a rate of 59% (metric tonnes) between 2000 and 2020. If we consider that the overall expected increase in both freight exchanges and volume is 50%, sea transport is one of the most feasible alternatives to reduce traffic congestion on European roads. Maritime transportation may compete with road transport as far as certain traffics are concerned, but only when assuming external costs. This paper analyzes several intermodal transport chains involving a sea leg by comparing the effect of pollutant emissions from different ship types and road transport in terms of potential external cost savings. The translation of these emissions into environmental costs shows, for certain conditions, savings in the case of sea transport that would justify the use of an environmental bonus to promote the sea option.     

Methodology for ro-ro ship and fleet sizing with application to short sea shipping

A novel methodology is developed for determining the characteristics of a cargo roll-on/roll-off (ro-ro) ship and the fleet size required for a given short sea shipping route. The ship and required fleet size to satisfy the transportation demand (for each pair of speed and freight rate) are determined using a database of existing cargo ro-ro ships to obtain the main technical characteristics of the most suitable ship. The time charter, voyage costs and revenue are then calculated considering the technical characteristics of each ship. Fuel costs are corrected for the actual ship speed and loading condition. A number of restrictions in the transportation problem are considered leading to the exclusion of unfeasible solutions. The maximum profit over the period of a year is identified among the feasible pairs of speed and freight rate. This general methodology is applied in a case study that considers the route between Leixões (Portugal) and Rotterdam (Netherlands). The study allows the identification of the most suitable ship and fleet sizes for different market penetration levels and quantifies the impact on shipping company profit of changes in parameters such as fuel costs, time charter costs, emission control area, installed propulsion power and stacking factor.