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.     

Port reform in Australia: regulation constraints on efficiency

Privatization and corporatization of ports in Australia has meant the transfer of government-owned monopolies to privately owned monopolies. This has required the introduction of a regulatory regime to protect the interests of users as in some cases the privatized terminal owner or operator is also a customer of that facility. A complex regulatory regime for ports at the commonwealth and state government levels has, as a result, been created. This has meant that pricing policies and reinvestment strategies are constrained by the regulator. Inefficiencies and disruptions are likely to occur. This paper examines the regulatory regimes in place—the role of the state government regulator, the Queensland Competition Authority, and that of the Australian Competition and Consumer Commission, the national regulator. It will examine the impacts and constraints these have imposed on coal terminal expansion and operations. Recommendations have been made suggesting the transfer of state government ports to a single national regulator. This paper examines whether the proposed regulatory overhaul will resolve the dilemma of the Goonyella coal supply chain. It will argue that while regulation rationalization and overhaul will expedite the complex regulatory process, the solution lies with an integrated approach to the entire supply chain rather than the port focus.     

Port reform in Australia: issues in the ownership debate

Australia port reform initiatives have taken on a variety of forms — from out-right sale and transfer of ownership, to the sale of particular assets of infrastructure or services, or to long-term lease arrangements; or in some cases state governments, unable to relinquish control, have opted for corporatization or commercialization strategies. Reform is driven by the belief that ownership impacts on efficiency and efficiency is perceived to suffer if governments either retain ownership or direct control. As a result a major aim of reform is to either remove or distance governments from day to day port operations. The sale of ports removes government control outright and privatized ports are subject to identical regulatory constraints as any company in the private sector. But corporatization strategies are such that government ownership is retained and ports have been transformed into statutory state owned corporations. Effectiveness of this strategy requires legislation to be such that port corporations are free to operate like their private sector counterparts. To date this has not occurred and some serious impediments are emerging which are embedded in legislation and which, rather than reduce, have indeed, increased government control.     

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.     

Institutional reform in ports of developing countries: the case of Lebanon—part I: the plan

Upon the expiry of the concession contract signed between Lebanon and a private company for the Port of Beirut operation (in December 1990), the Government appointed a temporary commission to operate the port under the rules of the expiring concession. The legality of this measure has since always been questioned, while the temporary commission underwent three major personnel changes which clearly prevented any long-term thinking or planning. In 1998, the temporary commission entered into a 20-year joint venture for the establishment of a container terminal. Meanwhile, Lebanon's two main ports were facing major regional competition, while competing against each other to some degree. Thus, the need became urgent to end the temporary status and propose reforms to the entire sector. To that end, the Ministry of Public Works and Transport was commissed by the Government to propose a permanent institutional framework for the port of Beirut while assessing the need for a national maritime sector regulator. This paper presents the recommendations for the institutional reform of the Lebanese maritime transport sector.     

Fisheries Governance Affecting Conservation Outcomes in the United States and European Union

Abstract

Fisheries management in the USA, as governed by the Magnuson–Stevens Fishery Conservation and Management Act (MSA), has been decidedly more successful at meeting its conservation goals than has fisheries management in the EU, as governed by the Common Fisheries Policy (CFP). In an effort to explain the different outcomes in these two systems that share many management attributes, we evaluated them against a list of effective governance attributes gleaned from the literature. We also examined the distribution of rights and responsibilities within each system, and the resulting stewardship incentives. Five effective governance attributes are fully realized under the MSA but have historically been absent from the CFP system: adequate regulatory authority, effective enforcement mechanisms, science-based decision-making, conservation-oriented goals and clear objectives, and directives. These governance system gaps, along with uneven distributions of rights, responsibilities, and incentives, may be responsible for the observed difference in conservation outcomes.     

Inter-firm relationships and shipping services: the case of car carriers and automobile importers to the United States

This paper is an initial exploration of inter-industry relationships and linkages in the context of automobile imports to the United States. It is our contention that the nature and structure of the engagement between automobile importers and shipping lines is central to understanding the evolution of the car carrier trade. Building on the literature on transactions costs, and supply and value chains, we show that the regimes currently governing car carriage services range from markets to vertical integration via network forms of engagement. We illustrate this through a detailed discussion of Japanese inter-firm networks and an examination of automobile import data to the US from 1980 to 2000. The findings raise important questions for future research on the impact of inter-industry relationships in various strategic decisions of steamship lines, shippers and port authorities including port entry, port choice and routeing, technological and investment choices, and trajectories of supply chain development.     

The effects of the Chinese fiscal system in shipping: a comparison with the UK regime

Assessing the effects of fiscal systems on investment in shipping by using the discounted cash flow technique has recieved much attention over a number of years. This paper examines the recent change in the business environment of Chinese shipping companies and argues for the relevance of using the same technique in the Chinese context. The technique which has been developed over the years is outlined and the current Chinese and UK fiscal systems applied to shipping are described. Based on the comparison and analysis of the effects of the two systems, some policy implications are made.     

The effects of the Chinese fiscal system in shipping: a comparison with the UK regime

Assessing the effects of fiscal systems on investment in shipping by using the discounted cash flow technique has recieved much attention over a number of years. This paper examines the recent change in the business environment of Chinese shipping companies and argues for the relevance of using the same technique in the Chinese context. The technique which has been developed over the years is outlined and the current Chinese and UK fiscal systems applied to shipping are described. Based on the comparison and analysis of the effects of the two systems, some policy implications are made.     

Improving the coexistence of offshore wind farms and shipping: an international comparison of navigational risk assessment processes

The continued growth and evolution of the offshore wind industry, and the emergence of other novel marine uses such as wave and tidal generators, have upped the ante for spatial planners, as well as consenting and approval authorities in various coastal states. These stakeholders rely on processes such as navigational risk assessments (NRAs) to balance safety and efficiency requirements and to make optimal decisions over use of space. Given the increasingly complex and crowded seascape, however, there are some apprehensions about potential shortcomings in these NRA processes. There is also some concern that these inadequacies may lead to unsafe or inefficient marine spatial use. To understand how NRA processes can be improved further, a literature review is conducted, followed by a survey of respondents who are involved in the planning, consenting and/or approval of offshore wind farms across seven different countries. A summary of the NRA processes in these seven countries is presented, and several shortcomings are identified. Based on the findings of the survey, a list of recommendations is presented to enhance existing NRA processes—and to improve the coexistence of shipping and offshore wind farms (OWFs).     

A cause of oversupply and failure in the shipping market: measuring herding behavior effects

ABSTRACT

The shipping market is volatile. In general, the shipping market cycle shows four stages, through—recovery—peak—collapse, while a upward trend lasts for 7~8 years and a downward trend for another 7~8 years. So the market’s bubble is not sustainable but always ends in a recessionary trend. The economic cycle is common knowledge and an axiom of the shipping industry, but many ship-owners take no account of it. Previous study stated that ship-owners’ fears, triggered by a violently changeable market, make them mimic the crowd mind or herd mentality, following market sentiment. This study aims to measure the effects of herding behavior (HB), triggered by market sentiment, on the shipping market. We attempt to address two research questions: (1) How does HB arise, and what course does it follow? (2) How many vessels (or how many tons) were purchased under the influence of HB? We estimate that 50.5% (227.8 vessels) of the total vessels or 30.4% (3,670.2 tons) of the total tonnage were purchased under the influence of HB. Looking at international finance, we found that ship investment HB is a very strong factor of the recent shipping market, at least in Korea.     

IAME 2001: Contemporary research in global shipping and logistics

The establishment and implementation of a training programme requires a training needs assessment (TNA). Without this approach, more often than not, training programmes have failed to succeed and to make such an assessment the instructional designer, i.e. the person in charge for this work, needs to follow a methodology. Unlike the other industries, the port industry has neglected the use of these methodologies, which is shown by the lack of research work published in academic journals. With a view to fill the existing gap, the paper proposes a five-step TNA methodology to be used in the port industry and applies its first three steps to investigate the port training situation in the new European Union member states. To achieve this objective, the paper is structured in the following way: Section 1 puts the research work into context; section 2 addresses the role of ports; section 3. presents a port TNA methodology; section 4. explains research methodology; section 5 addresses port training issues in the new European-member states; and section 6 presents conclusions and further comments.     

Ports and shipping in Mozambique: current concerns and policy options

This paper explores the current state of ports and shipping in Mozambique, and reviews it in the context of a past history of civil war followed by radical macro-economic adjustment, and more recent concerns and debates around the deregulation and privatization of the transport industry. More specifically, it addresses the key issue of the relationship between shipping and both broader and local economic development, taking account of the needs of major industry and the need to sustain local livelihoods. It reveals that the situation in Mozambique is a product of both local and global pressures, moulded by economic and political forces. It further indicates that, while there are now positive opportunities for coastal shipping, the capacity for developing inland shipping appears to be very limited. Future growth consequently depends on local participation, training and skills development and the broader social, economic, and transport infrastructure.     

Flagging options for the future: A turning point in Korean shipping policy?

The issues surrounding the future of Korea's shipping policy have been heavily debated since 1990 because the Korean shipping industry has been facing rising crew costs and difficulties in recruitment of qualified crew, an adverse taxation system, very limited access to foreign capital markets, and an inflexible government regulatory environment. Consequently, this has contributed to the deterioration of Korea's compectitive edge. This paper aims to provide both an account of the current adverse situtation in Korean shipping business and proposals to alleviate the plight of shipping enterprises. Within the context of that adversity, two solutions are suggested to improve the current situation, by either establishing a Korean second register or flagging out. The paper explores the advantages and disadvantages of each solution. Because ship management is closely interrelated to flagging strategies, the paper also discusses areas of co-operation between Korean shipping or ship management companies and advanced foreign ship management companies.     

A survey of short sea shipping and its prospects in the USA

Purpose: based on the known in the literature difference between expected and perceived quality, this study examines the factors and the ways that influence the passenger to select a ferry operator.

Methodology/approach: the research attempts to shed some light on the importance of every selection determinant by employing multinomial logistics analysis which identify that the convenience determinant is pivotal when selecting a service.

Findings: the main findings of the study indicate that among six different combinations of factors—models—perceived service quality together with price and convenience (satisfaction determinants) best describe the choice procedure followed by the passenger. The evidence is drawn from a survey performed in the Greek coastal shipping sector.

Originality/value of the paper: to survive in a competitive market, organizations must continuously strive to understand their customers’ wants and needs. Although this is a highly recognized issue in the marketing agenda little or no research has been done on passenger satisfaction and the subsequent selection of a ferry operator.

Practical implications: by using the findings of this work, ferry operators may deeply and timely understand their customers’ purchasing behaviour and adapt their marketing policies especially in a competitive and fast-changing environment.     

Stability and competition in intermodal container shipping: finding a balance

This article considers the perennial topic of how to acheive an equilibrium balance between stability and competition in intermodal shipping. It argues that competition is becoming destructive, but that the imbalance is difficult to correct in a climate where competitive pressures are strog everywhere and restraints on competiiton are unfashionable. In this context, pricing of intermodal services, the emergence of multi-trade alliances, the revelance of contestable market theory and developments in regulatory policies are all examimned. Some points towards restoring an equilibrium balance are offered.     

经济复苏路漫漫，海运业重现动荡——2010年国内外航运市场回顾与2011年展望

在各国史无前例的经济政策刺激作用下．2010年年初全球经济基本走出金融危机阴影,但在经济复苏的道路上仍充满动荡和风险：上半年美国GDP连续两季下滑,引起全球对美国经济探底的担忧;紧接着欧洲主权债务危机漫延,引发资本市场剧烈波动;接下来是关联储“二次量化宽松货币”,大宗商品价格应声上涨,全球通胀预期扩散。     

Shipper's councils: role and responsibility—a western view

Traditionally, liner markets have been seen as dominated by conferences on the seller side, facing small, unorganized shippers onn the buyers' side. This perceived asymmetry has greatly influenced conference legislation in North America (and more recently in the E.U.) and it has been deemed essential that government should regulate conference activities in order to curb any abuse of 'conference power'. In this view, shipowners and shippers are adversaries engaged in a zero-sum battle over transport costs rather than potential or actual partners in global distribution systems. This paper suggests that in today's global markets much can be achieved by cooperationn in the development of logistics systems and that shipowners and shippers may have much to gain from such cooperative alliances. A survey of shippers' councils in 1991-1992 demonstrates the diversity and increasing sophistication of many national shippers' councils, which devote themselves to the task of improving markets through education and the legislative process. The situation in the U.S.A. is different: for legal reasons, conventional shippers' councils do not exist. Instead, 'shippers' associations' play a commercial role in liner markets. It is suggested that European style shippers' councils can and should play an important role in the development and formulation of policies for internatinal liner markets. Such participation requires a cooperative industry environment quite different from the traditional adversarial approach, which is ill suited to global trade and logistics alliances.