Shipping and investment incentives: a trilogy

Governments may often try to stimulate investment in their own country by altering the climate in which such decisions are made. They achieve this by means of fiscal and financial regimes which may offer investment incentives for particular forms of investment and/or favourable financial arrangements to facilitate the purchase of particular assets. This paper discusses the form which such incentives might take and considers the literature to examine how such incentives have been perceived by businessmen whose actions they are intended to influence.     

Shipping and investment incentives: a trilogy Part 3. The effectiveness of investment incentives for shipping—the UK experience 1950-1987

This paper concentrates on the determinants of investment and examines both theoretical and empirical work on the investment function. The major determinants are considered and a case study of the United Kingdom shipping industry in the period 1963-1987 is undertaken. The analysis is unable to find any real link between the value of the investment incentives packages available to the UK shipping industry and the size of the UK fleet during this period. The conclusion follows that while financial factors (e.g. favourable credit arrangements) or individual components (e.g. investment grants) of fiscal packages may influence the decision to invest, the total package has not affected the level of shipping investment in the manner expected.     

Fleet deployment optimization for liner shipping Part 2. Implementation and results

We use linear programming (LP) for solving the problem of the optimal deployment of an existing fleet of multipurpose or fully containerized ships, among a given set of routes, including information for lay-up time, if any, and type and number of extra ships to charter, based on a detailed and realistic model for the calculation of the operating costs of all the ship types in every route and on a suitable LP formulation developed in earlier work of the authors. The optimization model is also applicable to the problem of finding the best fleet compostion and deployment, in a given set of trade routes, which may be the case when a shipping company is considering new or modified services, or a renewal of the existing fleet. In addition, two promising mixed linear-integer programming formulations are suggested.     

Economic incentives for maritime shipping relating to climate protection

This paper aims to analyze the various policy options for addressing greenhouse gas emissions from international maritime shipping, with an emphasis on the use of economic instruments. The economic incentives provided for the industry are categorized and examined with regard to their effectiveness for climate protection purposes. An analysis of the potential use of market-based mechanisms for the shipping sector follows alongside with the review and evaluation of the various proposals for a Maritime Emissions Trading Scheme that are submitted to the Marine Environment Protection Committee of the International Maritime Organization and are currently under consideration. The importance of the adoption of a maritime global cap-and-trade scheme for climate change mitigation is particularly emphasized. Within this context, it is also considered whether the possible introduction of economic incentive measures on a broader (regional or global) level may cause problems of implementation and how these obstacles can be overcome.     

Risk and investment decisions in non-liner shipping

The investment decisions of non-liner shipping firms based on their behaviour towards risk, stochastic demand for capacity, inelastic supply and foregone profits are discussed. These aspects are formalized in a simple stochastic model, which, together with definitions of two broad categories of risk behaviour, is then used to examine and contrast the investment decisions of the two different strategic groups. The analysis shows that the capacity expansions/investments sought by the risk averter and the risk lover will differ under 'normal' circumstances with the risk averter having significantly less capacity than the risk lover. The risk lover will have higher capacity in a volatile market than in a stable market situation. During periods of high capital costs, the investment decisions of the two risk groups tend to be indistinguishable.     

Emerging organizational values in shipping: Part 1. Crew stability

In this paper, Smith and Roggema examine the solutions emerging in answer to the growing concern in North European shipping companies to adapt to increasing competition and technological diversity and also to attract and retain suitably qualified seafarers. Part 1 describes a move from a situation of lack of stability of crew towards greater crew stability, whilst Part 2 discusses the redistribution of responsibility on board ship, encompassing a change from the caste-like division between officers and ratings and a more flexible division of functions and authority.     

The econometric testing of investment incentives: A cointegrated approach

Thie paper re-examines the link between shipping investment and investment incentives, first explored in this journal by Marlow, and subsequently developed by mcWilliams et al. in the July–September issue. Examination of the ststistical properties of the data reveals that some of McWilliams' results may be flawed. A modified version of the Marlow model is estimated. checking for statistical and economic consistency, using cointegration, checking for statistical and economic consistency, using cointegration techniques. The estimated model resolves marlow's original challenge, but does not appear to be as robust as could be wished.     

The econometric testing of investment incentives: A cointegrated approach

Thie paper re-examines the link between shipping investment and investment incentives, first explored in this journal by Marlow, and subsequently developed by mcWilliams et al. in the July-September issue. Examination of the ststistical properties of the data reveals that some of McWilliams' results may be flawed. A modified version of the Marlow model is estimated. checking for statistical and economic consistency, using cointegration, checking for statistical and economic consistency, using cointegration techniques. The estimated model resolves marlow's original challenge, but does not appear to be as robust as could be wished.     

Emerging organizational values in shipping: Part 4. Decentralization—the redefinition of authority in shipping company organization

Decentralization is a major theme of organizational change in shipping. It is often seen as 'putting power back aboard ship'. However, the authors argue that this view is too simple. Decentralization poses fundamental questions about the entire management structure of the shipping company. The redistribution of authority necessary for decentralization is discussed in terms of the company organization structure.     

外资进入中国航运市场现状分析及应对策略

随着中国加入WTO,市场的不断开放,外资航运巨头加速了在中国的扩张,这给中国的航运企业很大压力和挑战,本文剖析了外资航运巨头进入中国航运市场的现状,从而提出我国航运企业的应对之策。     

Fleet deployment optimization for liner shipping Part 1. Background, problem formulation and solution approaches

The background and the literature in liner fleet scheduling is reviewed and the objectives and assumptions of our approach are explained. We develop a detailed and realistic model for the estimation of the operating costs of liner ships on various routes, and present a linear programming formulation for the liner fleet deployment problem. Independent approaches for fixing both the service frequencies in the different routes and the speeds of the ships, are presented.     

航运管理企业转型期创新薪酬激励模式的探索

当前,在航运企业整合转型的发展背景下,航运企业需要不断创新具有目标导向的薪酬激励机制,从而推动企业迅速适应改革发展的新要求.文章对如何创新薪酬激励模式提出了建议措施.     

Assessment of investment decision in the dry bulk shipping market based on real options thinking and the shipping cycle perspective

As the dry bulk shipping market seems to have been stuck in a trough period for a long time, investors need to pay more attention to their investment strategies to survive during this period. This study aimed to find a suitable model to assess dry bulk ship investment decisions in the tough and peak periods based on real options theories. Two options, involving an abandonment option and a deferrable option, were used to define investors’ responses to the uncertainty in investment processes such as stopping or selling vessels. The option valuation was solved by using a binomial valuation model, due to data limitations. In accordance with shipping cycle theories, different volatility parameters for the tough and peak periods were calculated using a generalized autoregressive conditional heteroskedasticity (GARCH) model. The application of the real options model to a case study involving secondhand ship trading indicated its viability. According to the results of the case study, the new model has advantages over the traditional net present value (NPV) method in uncertain investment environments. Thus, the results demonstrate that the real options model is a more suitable method for use in the current dry bulk shipping market.     

集装箱运输的发展及我国航运公司的发展策略

介绍了近几年国际集装箱班轮市场的发展情况及所呈现的趋势;然后分析了我国的集装箱班轮公司在国际海运市场竞争中的优劣;最后为我国航运企业的发展提出了几点建议。     

Short sea shipping: a Canadian perspective

Short sea shipping has begun to receive attention from governments worldwide, as they seek to reduce traffic congestion and greenhouse gases. Despite a long coastline and its interest in international maritime affairs, the Canadian government had, until 2003, placed greater emphasis on resolving the issues of other transport modes. In July 2003, Canada and the United States signed a Memorandum of Cooperation on Sharing Short Sea Shipping Information and Experience. Subsequently, the federal government embarked on an assessment of short sea shipping through a series of workshops. This paper explores the key issues with respect to further development of short sea shipping from a Canadian perspective. It examines the critical limitations and impediments to further growth of short sea services in Canada and trans-border trade with the USA, and identifies a number of questions Canadian policymakers need to answer.