Effects of the ‘Belt and Road’ initiative on the wine import logistics of China

China’s Belt and Road (BR) initiative is expected to facilitate international trade between the countries involved. In this study, we review the special requirements of wine logistics and the market growth potential of wine consumption in China. A model minimizing generalized logistical costs is developed and applied to wine imports in China, so that the best candidate cities in which to locate transport gateways and distribution centers can be identified. Our analysis suggests that the most preferred gateways are Shanghai, Tianjin, Guangzhou, and Hong Kong, which all have similar delivery costs. In comparison, Beijing and Chongqing have much higher delivery costs, mainly because they do not have good access to marine transport and/or efficient domestic distribution networks. For long-distance intercontinental transport of large volumes of wine, marine shipping remains the only viable delivery mode. However, wine distribution within China extensively uses air, road, and water transport. Therefore, cities with excellent multi-modal transport services are better positioned to become wine logistics gateways. Our study also highlights the importance of value-added services and good government support, which are important factors that influence distribution costs and quality.     

The impact of the Panama Canal expansion on Panama’s maritime cluster

The Panama Canal is currently in the process of a major expansion effort. After the new set of locks is opened in 2016, significantly larger ships can traverse the Canal. The current lock system has been in place for over 100 years, even though the size of ocean-going vessels has expanded considerably. One impact is on Panama’s maritime cluster. It is expected that the expansion will result in greater demand for many of the goods and services provided by the cluster. This article examines the economic impact of the Canal expansion on Panama’s maritime cluster. Clusters of economic activity can result in economies of agglomeration and supply chain network effects. Without these economies and network effects, clusters would not have a competitive advantage over businesses that are not in a cluster. It is expected that with a larger cluster, both agglomerative economies and network effects will increase. But, which cluster components will grow and which will not be affected to a great extent? To what extent will bottlenecks appear? These are some of the questions that this article addresses.     

Emergence of ‘new professionalism’ among Chinese seafarers: empirical evidence and policy implications

In this paper some of the factors that were influential in establishing a Canadian shipping policy position à proposissues raised by the UNCTAD V meeting are examined. The first of these issues was the question of early ratification and entry in force of the Conventin on a Code of Conduct for Liner Conferences. The second involved the relationship between flages of convenience and fleet expansion in the developing countries (LDCs). The third concerned LDC participation in the carriage of bulk cargoes. The author concludes that Canada's stance was determined by the fact that she was a major user of shipping withouta significant fleet of her own, and shows how she attempted to balance her sympathy with Third World aspirations with the demands of her own national interests.     

Development of an IoT-based container tracking system for China’s Belt and Road (B&R) initiative

To ensure the successful implementation of China’s Belt and Road (B&R) Initiative, it is essential to enable the real-time monitoring of containers’ locations, prevent theft during cargo delivery, ensure more efficient logistics management and reduce carbon emissions. For this, it is vital to have an economic and effective system to track and control containers across multiple countries. However, this requirement cannot be met by today’s container tracking systems because they are either limited within the borders of each country or expensive to employ internationally. This study thus presents a framework for an IoT-based container tracking system that enables users not only to grasp the international flow of container movement with one check but also to achieve smooth cross-border procedures. To verify the system’s performance, an empirical test was made for an actual container shipped from Korea to Poland. The test results showed that the system could successfully track the location of the container in real time across international borders. Last, this study discusses the policy development and international cooperation that should take place to enable the introduction of this container tracking system.     

‘Only work and sleep’: seafarers’ perceptions of job demands of short sea cargo shipping lines and their effects on work and life on board

Previous research on job demands in seafaring has focused on the effects of workload and circadian disturbance on seafarers’ health and fatigue. Taking a more comprehensive approach, this study identifies job demands of short sea cargo shipping lines and explores their effects on work and life on board. Data came from 54 interviews with officers and crew on five cargo ships. Findings revealed job demands related to characteristics of the schedule, ports, and sea voyages; these were not only associated with workload and circadian disturbance, but also with the difficulty of the work, the ability to plan ahead, and intrusions from third parties. Job demands affected outcomes through two interconnected processes. First, job demands had direct and indirect effects on fatigue and the working climate on board. Second, potential positive effects of job demands (i.e. interesting work and pay) were related to motivation and, together with a good working climate, could reduce turnover. Connecting the two processes, a good working climate was pivotal in counteracting negative emotions and supporting motivation and collaboration. In this way, it functioned as a key resource. External constraints could either buffer or reinforce these effects.     

The UN’s 2030 Agenda for sustainable development and the maritime transport domain: the role and challenges of IMO and its stakeholders through a grounded theory perspective

In September 2015, the United Nations (UN) officially adopted the 2030 Agenda for Sustainable Development together with 17 sustainable development goals (SDGs) (UN, 2016). The attainment of the SDGs requires a strong commitment by all UN Member States, not least by the Member States at the International Maritime Organization (IMO). This empirical research aims to identify the role and challenges of stakeholders at IMO, when implementing the UN’s 2030 Agenda in the international maritime transport domain using a grounded theory approach. This paper describes the methodology and the analytical process undertaken and presents the main findings based on empirical data. The results are presented as a set of six propositions. The first proposition presents the phenomena engulfing Member States at IMO stemming out from lack of knowledge and policy incoherency on the 2030 Agenda at national level. The other five propositions suggest how these challenges could potentially be best alleviated through an IMO-led strategy on sustainable development within the context of the 2030 Agenda, supported by an appropriate governance structure that sees the introduction of strategic actors for coordinating the implementation of the SDGs at national level. With the support of a Task Force, and by also making use of the IMO Member State Audit Scheme (IMSAS), to create more awareness and ownership, the strategic actors could work towards balancing the three dimensions of sustainable development—the economic, the environmental, and the social dimensions—which were found to be imbalanced in the international maritime transport domain.     

Full scale ice sea trials of Korean ice breaking research vessel ‘Araon’ on the big floes near Antarctica

A speed sea trial was performed in the Amundsen Sea in February and March of 2012. The Korean ice breaking research vessel “Araon” was used to check speed performance on the big floes. Two of ice trial cases were carried out. We describe the time history of location, the engine power, and the revolutions per minute during the ice trial, and the trajectory of the ship. Additionally, the measured ice properties are considered and discussed. The ice trial results were analyzed according to variation in ice thicknesses, ice strength, propulsion power, and the speed level of the ship. Our analysis results are compared to model test results and ice trial results. A correction to the target ice thickness was used to compare the power and speed relation in the same ice thickness because it is easy to know the relative speed performance of the ship. The Hamburgische Schiffbau-Versuchs Anstalt method was applied for the correction. The speed of Araon in big floes was higher than the speed in level ice. The speed after the correction at 10 MW of power and 103 cm of ice thickness was 5.4 knots based on analysis results.     

An investigation of forecast horizon and observation fit’s influence on an econometric rate forecast model in the liner shipping industry

This paper evaluates the influence of forecast horizon and observation fit on the robustness and performance of a specific freight rate forecast model used in the liner shipping industry. In the first stage of the research, a forecast model used to predict container freight rate development is presented by exploring the relationship between individual company’s rates and aggregated market rates, and thus assists in dealing with uncertainty and market volatility for a given business situation. In the second stage, a design of experiment approach is applied to highlight the influence of the forecast horizon and observation fit and their interactions on the forecast model’s performance. The results underline the complicated nature of creating a suitable forecast model by balancing business needs, a desire to fit a good model and achieve high accuracy. There is strong empirical evidence from this study; that a robust model is preferable, that overfitting is a true danger, and that a balance must be achieved between forecast horizon and the number of observations used to fit the model. In addition, methodological guidance has also been provided on how to test, design, and choose the superior model for business needs.     

Westward moving waves or eddies (Storms) on the Subtropical/Azores Front near 32.5°N? Interpretation of the Eulerian currents and temperature records at moorings 155 (35.5°W) and 156 (34.4°W)

Three Argos buoy-years of Lagrangian data in westward-moving cyclonic eddies, or Storms, near 32.5°N, together with hydrographic measurements, have shown that Storms move westward at nearly 3 km day⁻¹. Water in eddies can be trapped and moved westward by advection within the eddy or by phase propagation of the eddy pattern, so we cannot say that the flow field (or Eulerian mean) is 3 km day⁻¹ westward. Two moorings (155 and 156) deployed in the Storm Corridor have provided a further 8 instrument-years of Eulerian data. The temperature and current records confirmed that two Storms a year passed each mooring over the 2-year measurement period. As expected, there is a lag of 1.3 month at mooring 155 (which is 102 km to the west of mooring 156) with respect to conditions at mooring 156. The progressive vector diagrams (PVDs) derived from the current meter records exhibit fairly regular X (east or zonal) and Y (north or meridional) displacement scales that repeat with semi-annual periodicity (SAP). The dominant current signal is the north component of the SAP, which reaches an amplitude of 18 cm s⁻¹ for the upper layer or near surface current record (242-m depth). The geostrophic north component values derived from altimetry were in good agreement with the upper layer current meter measurements. The large north component amplitude was not interpreted as evidence for Rossby Waves but rather due to the passage of nine eddies (eight complete) of alternate sign (cyclonic, anticyclonic) passing the mooring rigs during the 2-year deployment period. The Y scale shows that the near surface characteristic or mean maximum azimuthal speed is about 35 cm s⁻¹ for cyclonic eddies or Storms, and that this value is reduced to 4 cm s⁻¹ at 1400-m depth. The residual or mean Eulerian currents range from 8 cm s⁻¹ for the upper layer currents to 1 cm s⁻¹ for the deeper currents at 1400-m depth and are predominantly westward. Simple theoretical considerations and idealised numerical simulations show that the mean westward Eulerian current depends markedly on whether the eddy centres pass to the north or south of the rigs. This raises the question as to what do we mean by Eulerian residual currents, even for relatively long records (2 years). It is shown that the strong near surface westward current (6 km day⁻¹) measured at mooring 155 is largely due to a westward-moving eddy field with variable centre offsets. The magnitude of the near surface east–west component of flow was estimated as eastward at 2 cm s⁻¹. The north–south component of mean flow was southward at 2 cm s⁻¹. The deeper records gave a weak westward flow of 1 cm s⁻¹ but did not show a significant southward component for the mean Eulerian flow field. 7.4 float-years of Lagrangian ALACE data in the Subtropical Front region near 740 dbar gave mean east–west flows that were <0.5 cm s⁻¹. Overall, it is shown that the eddy structures propagate westward mainly by phase propagation (i.e. a westward-moving pattern with no westward advection for the current meter to measure), though plane Rossby Wave dynamics appeared inappropriate. Theoretical and modeling considerations show that a speed of 3-km day⁻¹ westward is too large a value for the self-advection of eddies due to the beta effect.