An evaluation of web site services in liner shipping in Taiwan

This paper empirically evaluates web site services in the liner shipping industry based on the service requirements of the user firms, i.e., shippers. The results suggest that shippers perceive tracing to be the most important service attribute of a web site, followed by customs response, vessel schedules, and electronic document service. Based on the concept of market segmentation, we employed cluster analysis to classify users (shippers) of web site services provided by liner shipping companies into four segments, namely support and performance services oriented firms, equipment information oriented firms, performance information oriented firms, and transaction services oriented firms. Theoretical and practical implications of the research findings are discussed.     

Evaluating Key Resources and Capabilities for Liner Shipping Services

Abstract

This paper empirically evaluates key resources and capabilities in the liner shipping context. Based on a factor analysis, three resource dimensions are identified: marine equipment, information equipment, and corporate image; whereas seven capability dimensions are identified: purchasing, operation, human resource management, customer service, information integration, pricing, and financial management. The findings suggest that operation capability is perceived as the most important dimension, followed by customer service, human resource management, information integration, pricing purchasing, and financial management. Results indicate that four dimensions are found that significantly differ between shipping companies and agencies: marine equipment, information equipment, operation, and information integration. The theoretical and managerial implications of the research findings are discussed.     

Predicting electronic toll collection service adoption: An integration of the technology acceptance model and the theory of planned behavior

In order to reduce the number of vehicles stuck in congestion, especially for stop-and-go traffic at toll plazas, the establishment of electronic toll collection (ETC) systems has been a hot issue and dominant trend in many countries. Taiwan has joined the crowd, adding an ETC system to its toll roads in early 2006. However, despite the potential benefits for motorists, the utilization rate has been lower than expected during the introductory stage. The objective of this study is to advance our understanding on the critical antecedents of motorists’ intention of ETC service adoption by integrating both technology acceptance model (TAM) and theory of planned behavior (TPB) perspectives. Through empirical data collection and analysis from highway motorists who had not installed on-board units (OBU) for ETC service in Taiwan, we found that system attributes, perceived usefulness and perceived ease of use, indeed, positively engender motorists’ attitudes towards ETC service adoption. Moreover, results also reveal that attitude, subjective norm and perceived behavioral control positively influence the intention of ETC system adoption. Implications for practitioners and researchers, and suggestions for future research are also addressed in this study.     

Spreading distinctive insignia benefits from mobile service: evidence from a mobile application of transportation

ABSTRACT

Mobile commerce (m-commerce) faces a growing array of client devices for which applications are designed. Applications developed for general consumer use must be compatible with a wide range of devices. This research investigates how perceived usefulness and enjoyment affect intention to use a mobile application service (T-Express). In this study, we formulate a commitment model from the perspective of the social identity and technology acceptance perspective. Empirical data were collected by conducting a field survey of users of T-Express from Taiwan High Speed Rail Corporation (THSRC) stations in Taiwan. The main findings of the study are that wireless technology provides great value to businesses when it allows consumers to access real-time data to make timely decisions that either decrease costs or increase revenues; and to achieve a higher intention to use mobile applications, there should be a clear communication process between mobile application and passenger. Our findings indicate that one of the more overt illustrations of the power of packaging symbolism involves package design strategies that serve to provide a radical new upscale positioning for the THSRC brand.     

Effect of a speed reduction of containerships in response to higher energy costs in Sulphur Emission Control Areas

The objective of this paper is to explore the possible consequences of the future low-sulphur fuel requirements in Sulphur Emission Control Areas (SECA) on vessel speed, from the standpoint of the container shipping industry. Rational energy use, speed reduction, and revenues are closely related in the container shipping sector because speed reductions may provide substantial energy and cost savings. The operators could consider reducing their speed in SECA in order to save on fuel that will become relatively expensive. However, to maintain a weekly frequency without adding new ships, such a behaviour implies that the required speed at sea outside the SECA area increases. This paper aims to investigate if such a difference in speed is cost-effective, and if the increase in speed outside SECA may result in an increase in CO₂ emissions of the total cycle. We propose a cost model that estimates the cost-minimising combination of speeds inside and outside SECA, and the resulting CO₂ emissions of the liner service. Applying this model to representative liner services serving North Europe, we find that differentiating speed accordingly slightly decreases total costs and increases CO₂ emissions in a similar way. The results are sensitive to the price of low-sulphur fuels, the part of the cycle in SECA and the number of ships deployed in the service.     

Rail-truck multimodal freight collaboration: a statistical analysis of freight-shipper perspectives

Due to the effects of congestion, capacity reduction of truck-freight carriers, growing freight transportation demand, and increasing social and environmental concerns, there is a critical need for freight shippers to improve shipping quality and reduce transportation costs. Rail-truck multimodal freight collaboration can potentially address this need. In this study, we explore freight-shipper perspectives relating to the factors that may foster or impede their usage of rail-truck multimodal freight collaboration services, and the correlations of their operational and behavioral characteristics with these factors. The study provides insights to rail and truck carriers on collaboration mechanisms that can address the needs of freight shippers, including adopting synergistic technology to improve in-transit visibility, accommodating non-containerized cargo, improving the transshipment process, designing service quality control strategies, and constructing investment and revenue-sharing plans.     

The contemporary motor carrier salesperson: An analysis of shipper and carrier perspectives

One of the continuing concerns of the motor carrier industry is the need to upgrade the knowledge and skills of its salespeople. The paper reports the findings of a study which attempts to identify the specific characteristics of salespeople that require upgrading or improvement. The study is unique in the sense it examines and compares the views of both shippers (i.e. “buyers”) and carriers (i.e. “sellers”) of trucking services. Overall, both the univariate and multivariate analysis indicate that shippers and motor carrier sales managers have very different perceptions regarding desirable salesperson attributes, with shippers advocating less emphasis on personal traits and more attention to service and knowledge-related attributes. This suggests that motor carriers, in general, have been slow to adapt their sales management policies and practices to the realities of the contemporary transportation environment.     

In Search of the Link between Ship Size and Operations

Abstract

Since 1990s the liner shipping industry has faced a period of restructuring and consolidation, and been confronted with a continuing increase in container vessel scale. The impact of these changes is noticeable in trade patterns, cargo handling methods and shipping routes, in short ‘operations’. After listing factors influencing size, growth in container ship size is explained by economies of scale in deploying larger vessels. In order to quantify economies of scale, this paper uses the liner service cash flow model. A novelty in the model is the inclusion of +6000-20-foot Equivalent Unit (TEU) vessels and the distinction in costs between single and twin propeller units on ships. The results illustrate that scale economies have been – and will continue to be – the driving force behind the deployment of larger container vessels. The paper then assesses the link between ship size and operations, given current discussions about the increase in container vessel scale. It is found that (a) ship size and operations are linked; (b) optimal ship size depends on transport segment (deep-sea vs. short-sea shipping, SSS), terminal type (transhipment terminals vs. other terminals), trade lane (East-West vs. North-South trades) and technology; and (c) a ship optimal for one trade can be suboptimal for another.     

Container liner fleet deployment: A systematic overview

Container liner fleet deployment (CLFD) is the assignment of containerships to port rotations (ship routes) for efficient transport of containers. As liner shipping services have fixed schedules, the ship-related operating cost is determined at the CLFD stage. This paper provides a critical review of existing mathematical models developed for the CLFD problems. It first gives a systematic overview of the fundamental assumptions used by the existing CLFD models. The operating characteristics dealt with in existing studies are then examined, including container transshipment and routing, uncertain demand, empty container repositioning, ship sailing speed optimization and ship repositioning. Finally, this paper points out four important future research opportunities: fleet deployment considering ship surveys and inspections, service dependent demand, pollutant emissions, and CLFD for shipping alliances.     

Selection Criteria of Transportation Mode: A Case Study in Four Finnish Industry Sectors

Abstract

This paper takes a closer look at the very basics of logistics and it analyses the selection criteria of transportation services from the industrial point of view as the main research problem. It also tries to establish a better understanding of which industrial sectors are using which mode of logistics services and why. According to the analysis, the high value and especially high price/kg ratio of products, short life cycles and worldwide markets are typical reasons to use rapid modes of transport. The high price/kg ratio of products and the short life cycles, for example in the electronics industry, cause high price erosion and support selecting transport based on speed, as proportional transport costs remain small, even when using expensive transportation modes. Based on the results, some of the future logistics needs were identified, and the aim is to help logistics service providers offer the exact services needed, providing better competitiveness for Finnish shipping companies operating in global markets. Logistics service providers are, for example, expected to have more powerful supply chain management capabilities than a single‐service provider can typically offer. Additionally, logistics service providers should have compatible operating systems with different parties of various supply chains to enable deliveries to different customer groups according to their industry’s required speed.     

Segment-based alteration for container liner shipping network design

Container liner shipping companies only partially alter their shipping networks to cope with the changing demand, rather than entirely redesign and change the network. In view of the practice, this paper proposes an optimal container liner shipping network alteration problem based on an interesting idea of segment, which is a sequence of legs from a head port to a tail port that are visited by the same type of ship more than once in the existing shipping network. In segment-based network alteration, the segments are intact and each port is visited by the same type of ship and from the same previous ports. As a result, the designed network needs minimum modification before implementation. A mixed-integer linear programming model with a polynomial number of variables is developed for the proposed segmented-based liner shipping network alternation problem. The developed model is applied to an Asia–Europe–Oceania liner shipping network with a total of 46 ports and 11 ship routes. Results demonstrate that the problem could be solved efficiently and the optimized network reduces the total cost of the initial network considerably.     

Liner container assignment model with transit-time-sensitive container shipment demand and its applications

This paper proposes a practical tactical-level liner container assignment model for liner shipping companies, in which the container shipment demand is a non-increasing function of the transit time. Given the transit-time-sensitive demand, the model aims to determine which proportion of the demand to fulfill and how to transport these containers in a liner shipping network to maximize the total profit. Although the proposed model is similar to multi-commodity network-flow (MCNF) with side constraints, unlike the MCNF with time delay constraints or reliability constraints that is NP-hard, we show that the liner container assignment model is polynomially solvable due to its weekly schedule characteristics by developing two link-based linear programing formulations. A number of practical extensions and applications are analyzed and managerial insights are discussed. The polynomially solvable liner container assignment model is then applied to address several important decision problems proposed by a global liner shipping company.     

Estimation of the perceived value of transit time for containerized cargoes

This paper proposes a novel method for estimating the perceived value of transit time of containers by shipping lines. The key idea is that a shipping line’s published schedule is the optimal decision that minimizes the sum of fuel cost and time-associated costs of the containers adopted by the shipping line. Using the proposed method, we find that the adopted values of transit time for nine trans-Pacific services operated by Orient Overseas Container Line and five trans-Pacific services operated by Maersk Line are between US$5/TEU/day and US$30/TEU/day. We further demonstrate how the adopted value can be used for designing the optimal transit times between ports, analyzing the viability of slow-steaming, checking whether ships should speed up to catch up to connecting ships on other services, and helping to predict the market share of less polluting fuels in view of rules on air emission.     

Reversing port rotation directions in a container liner shipping network

Reversing port rotation directions of ship routes is a practical alteration of container liner shipping networks. The port rotation directions of ship routes not only affect the transit time of containers, as has been recognized by the literature, but also the shipping capacity and transshipment cost. This paper aims to obtain the optimal port rotation directions that minimize the generalized network-wide cost including transshipment cost, slot-purchasing cost and inventory cost. A mixed-integer linear programming model is proposed for the optimal port rotation direction optimization problem and it nests a minimum cost multi-commodity network flow model. The proposed model is applied to a liner shipping network operated by a global liner shipping company. Results demonstrate that real-case instances could be efficiently solved and significant cost reductions are gained by optimization of port rotation directions.     

A decision support system for port selection

Abstract

A number of studies have been carried out on the factors determining port choice, derived from the perspectives of shippers, carriers or both. Recently, some studies using multi-criteria analysis, more specifically Saaty's analytical hierarchy process (AHP), have been undertaken to address port competitiveness and port selection by shipping lines. Based on a review of the literature on port selection, this article proposes a decision support system (DSS) for port selection using AHP methodology. The proposed DSS is web-based and thus it can be accessed by more decision makers and data collection can be carried out faster. Moreover, AHP addresses the issue of how to structure a complex decision problem, identify its criteria, measure the interaction among them and finally synthesise all the information to arrive at priorities, which depict preferences. AHP is able to assist port managers in obtaining a detailed understanding of the criteria and address the port selection problem utilising multi-criteria analysis. This article presents the architecture and the port selection procedure of the web-based DSS, and then illustrates three different cases. It shows how technology advancement can bring positive effects of strategic planning to shipping firms.     

Port facilities and the international coal market

This study examines the relationship between the increased demand for U.S. coal in the early 1980s, and the coal pier congestion that accompanied and hampered it. We find an export price elasticity for U.S. coal of -16.7, and a port service price elasticity of -0.8, suggesting deadweight losses of approximately $4 million per month. We then separate the short-term from the long-term changes in the demand for U.S. coal exports. The long-term demand estimates predict increases of 77% in U.S. coal exports, compared to the actual 83% increase in shipping capacity provided by coal shippers.     

Centralized versus distributed feeder ship service: The case of the Maasvlakte harbour area of Rotterdam

Coastal and inland feeder shipping is a critical factor for intercontinental container transport. The question is whether each intercontinental terminal should be equipped with its own service stations for feeder shipping, or whether pooling of the facilities would be more effective. For this paper, the service station examined for the service of feeder ships is equipped with two quay cranes operating in parallel supported by a small active quay stack. The centre for this feeder service consists of several of these stations. Simulation shows that a crane productivity of 96% is feasible with an average vehicle waiting time of 1 min, that a central service requires fewer service stations than a distributed service and that the quay transport for central and distributed transport requires the same number of terminal vehicles. The analysis shows that a centralized service is preferable, attracting 70% of the market potential.     

Mobile taxi booking application service’s continuance usage intention by users

The long-term development of a mobile booking taxi application service depends on the continued use of its passengers. The aim of this study is to investigate the determinants of the mobile taxi booking application service’s continuance intention, using the technology continuance theory by including the perceived risk and subjective norms. The data were collected by surveying 387 users of the mobile taxi application service. The data were analysed by applying the partial least squares technique. The analysis showed that the technology continuance theory has extensive power to explain the continuance intention to use the mobile booking taxi application. Subjective norms also have a significant effect on the attitude of mobile booking taxi application users which represents an important contribution to technology continuance theory extension. The theoretical and practical significances of the study have been discussed.     

What drives people to accept automated vehicles? Findings from a field experiment

This field study aims at understanding the influence of direct experience of an automated vehicle (AV, Level 3) and explaining and predicting public acceptance of AVs through a psychological model. The model includes behavioral intention (BI) to use self-driving vehicles (SDVs, Level 5), willingness to re-ride (WTR) in our AV (Level 3), and their four potential determinants, namely perceived usefulness (PU), perceived ease of use (PEU), trust related to SDVs, and perceived safety (PS) while riding in our AV. The last two determinants are largely ignored, but we consider them critical in the context of AVs. Three-hundred students were invited as participants (passengers) to experience the AV. The trust, PU, PEU, and BI of the participants were recorded prior to their experiencing the AV; after this experience, all the constructs of the psychological model were recorded. The participants’ experience with the AV was found to increase their trust, PU and PEU (but not BI), the consistency between PU/PEU and BI, and the explanatory power of BI. The model explained 55% of the variance in BI and 40% in WTR. PU, trust, and PS were found to be steady and direct predictors of both the acceptance measures; PEU predicted BI only after the participants’ AV experience. Mediation analysis showed that trust also can indirectly affect AV acceptance through other determinants. Out-of-sample prediction confirmed the model’s predictive capability for AV acceptance. The theoretical contributions and practical implications of the findings are discussed.     

Sulphur abatement globally in maritime shipping

In 2016, the International Maritime Organization (IMO) decided on global regulations to reduce sulphur emissions to air from maritime shipping starting 2020. The regulation implies that ships can continue to use residual fuels with a high sulphur content, such as heavy fuel oil (HFO), if they employ scrubbers to desulphurise the exhaust gases. Alternatively, they can use fuels with less than 0.5% sulphur, such as desulphurised HFO, distillates (diesel) or liquefied natural gas (LNG). The options of lighter fuels and desulphurisation entail costs, including higher energy consumption at refineries, and the present study identifies and compares compliance options as a function of ship type and operational patterns.The results indicate distillates as an attractive option for smaller vessels, while scrubbers will be an attractive option for larger vessels. For all vessels, apart from the largest fuel consumers, residual fuels desulphurised to less than 0.5% sulphur are also a competing abatement option. Moreover, we analyse the interaction between global SO_X reductions and CO₂ (and fuel consumption), and the results indicate that the higher fuel cost for distillates will motivate shippers to lower speeds, which will offset the increased CO₂ emissions at the refineries. Scrubbers, in contrast, will raise speeds and CO₂ emissions.