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.     

Is Somali piracy a random phenomenon?

This paper investigates whether Somali piracy is a random phenomenon. The investigation takes place in two distinct parts. Its statistical analysis spans over a period of 11 years, from 2000 until 2011 for the first part (flags), and 5 years, from 2007 until 2011 for the second one (crews). The reason is that although prior to 2007 there have been a substantial number of attacks (parameter used in the first part of the research), very few ships were practically pirated (parameter used in the second part) within the same period. Firstly, it is widely believed that Somali pirates select their targets at random and the decision on attacking a vessel registered under a particular flag is unrelated to the participation of the flag state in any of the naval forces operating around the Horn of Africa. The enquiry attempts to assess whether these two common beliefs are supported by historical data and to what extent. Secondly, this paper asks whether there are certain nationalities of crews which are for ethnic and/or cultural reasons more (or less) vulnerable to fall victims of pirates off Somalia. Such groups (if there are any) would in effect indirectly ‘support’ Somali piracy, and for this reason, they could be considered as ‘passively supportive crews’. The analysis focuses on the crew composition of the attacked vessels with special interest cast upon those ships (meaning the crews) which eventually succumbed to Somali pirates and were in the end seajacked.     

航运公司建立和运行SMS存在问题探讨

ISM/NSM规则的强制实施,进一步规范了航运公司安全与防污染管理活动,提升了航运公司安全与防污染管理水平。文中分析了当前航运公司安全管理体系建立和运行情况及存在的问题,剖析了航运公司建立安全管理体系的一些误区,同时对航运公司安全管理体系运行及维护中常见的问题进行了阐述,并针对航运公司建立及运行安全管理体系存在的问题,对航运公司及海事主管部门提出相应的解决措施及建议。     

Arctic routing: Challenges and opportunities

Responding to the world’s growing demand for oil and gas, Arctic resources have been given much attention by the energy and shipping industries. In addition, global warming has accelerated oil and gas development in the Arctic, particularly in its western region. Ice-diminishing Arctic has inspired the world’s shipping industry to explore the feasibility of the historical Arctic routes, the Northwest Passage and Northern Sea Route, as seasonal commercial sea lanes. The background aspects of the Passages and the main issues to be solved for their commercial openings are discussed in this paper. Challenges to an internationally agreeable Arctic regime, likely the Antarctic Treaty, are crucial for clean production and safe transport of the Arctic resources and the transit passages across the Arctic Ocean.     

Maritime security and seafarers’ welfare: Towards harmonization

This article examines the negative situation surrounding seafarers’ welfare in the post 9–11 shipping world. Its main focus is the denial of shore leave which has become a prime source of disharmony since the implementation of post 9–11 security measures. It discusses the implementation of these measures which has been at the expense of seafarers’ customary right to shore leave.     

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.     

Ballast water treatment ashore — Better for the environment and for seafarers

After a brief overview of the International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM Convention), 2004, the status of ratification and its applicability to ships the main methods for ballast water treatment required by the BWM Convention are introduced. Port-based reception and treatment facilities would offer many benefits compared to treatment of ballast water on board — shore-based facilities would be more efficient and provide both economical and environmental advantages. The choice to impose the ballast water treatment obligations on the ships and their crews may have been the solution of least resistance, but it may also be the solution, which represents the least efficiency and the greatest overall cost as well as a potential for negative consequences for the crew responsible for ballast water management.     

The 50<Superscript>th</Superscript> anniversary of container shipping the Admiral Sheldon Kinney (USN) lectures

The paper offers a historical overview of the container revolution. It starts from the origin more than 50 years ago, presenting how the pioneer Malcom McLean came to this idea that has changed the nature of Shipping. It then presents how and why container shipping was gradually accepted and what has been the main trends during the last 50 years: the increase in vessels’ and containers’ size and in vessels’ speed. Finally, the paper investigates what the future will bring and notably sheds light on the increase in containers’ size and on the improvements in terminal and rail services.     

An analysis of decision-making processes in multicultural maritime scenarios

With three research studies recently carried out the pros and cons of multicultural, multilingual crews have given a 'second' food for thought:

• The Seafarers' International Research Centre (SIRC): 'Transnational Seafarer Communities' and the research, 'Finding a balance: companies, seafarers and family life', linked to this [1]. The latter presented in Maritime Policy & Management, no. 1, January-March 2003.
• The Swedish National Maritime Museum (SNMM): Isolde av Singapore [2]. This research and sociological documentation will be reviewed in a later issue of Maritime Policy & Management.
• Horck, J., 'A culturally mixed student body; the WMU experience in fostering future decision makers' [3].

There is a growing conviction among seafarers and persons working in the land-based sector of the maritime industry (including ex-seafarers) that staff onboard and on shore should be prepared to work with crews and groups whose members come from different countries and cultures and speak different languages. The problem, though, is which culture will have to surrender and which will dominate? Will a third culture become the norm for common survival? Perhaps to understand oneself and be knowledgeable about others is a better way to avoid eventual conflicts.

There are nearly no research findings on how a programme should comprise the aims of facilitating comprehension and appreciation of influences, from differences in cultural backgrounds, on group performance and decisions.

This paper reports on the research carried out on students in the Shipping Management and the Maritime Education and Training courses at World Maritime University (WMU). How do post-graduate students holding unlimited certificates of competency, as well as holders of university degrees with experience in the maritime industry and maritime administration, come to a consensus decision?

The findings in this research are discussed in balance with the results from both the SIRC and the SNMM research which is interesting because the results, in some significant issues, are not the same.

A phenomenographic approach has been used to find out that a multicultural group is not free from working problems. Can cultural differences, perhaps, be developed from an assumed hindrance into a catalyst for stimulating national appreciation and cooperation? Perhaps the opposite is true; it might be a bottleneck for improvements in safety as formulated in the STCW95 and the ISM Code.     

The enforcement of shipping standards under UNCLOS

This article discusses the enforcement of shipping standards, with a particular focus on Part XII of UNCLOS. Section 6 of Part XII contains the only comprehensive set of vessel-related enforcement provisions in the Convention, but the Part’s scope is limited to “the preservation and protection of the marine environment.” Therefore, not all shipping standards fall clearly within Part XII’s ambit, including those centered on safety, security, and crewing considerations. The enforcement provisions of Section 6 are favorable to flag states and their vessels, and Section 7 contains a number of safeguards for their benefit, so it is in the interests of these parties to have coastal state enforcement governed by Part XII. However, the ability of coastal states to establish and enforce shipping standards that apply within the territorial sea extends to more than just environmental matters. The result is that different standards give rise to different enforcement powers, depending on the maritime zone in which a vessel is located, even if those standards arise from the same international agreement. It is suggested that to remedy these problems, UNCLOS would need to be amended in order to provide a comprehensive enforcement regime for the enforcement of shipping standards.     

Cultural diversity, manning strategies and management practices in Greek shipping

The present paper examines the way Greek shipping companies and Greek seafarers perceive culture, and how this affects their approach to crew management and operation of the ships. The analysis focuses on the manning strategies employed by the companies, on the operational problems that might occur on-board, and on any possible disturbance of the relation between the ship, the office at shore and third parties. Finally, a number of management practices which, when implemented, help to overcome these problems is also examined. The research methodology includes a review of the existing literature and interviews conducted by means of questionnaires filled in by crew managers and seafarers. Results show that some of the predominant problems encountered aboard, as far as communication with multicultural crews is concerned, are rooted in cultural and linguistic incompatibility, as well as in inadequate and inappropriate training. Furthermore, crew managers and seafarers lack both a clear perception of culture, and share opinions on the implementation of manning strategies. The present paper concludes that culture management can enhance crew team cohesion, upgrade communication at all levels, and, finally, improve the quality of the working environment, the safety of the workplace and the overall performance of the team.     

Private maritime security company (PMSC) in the Strait of Malacca

Recently, maritime security issues in the Strait of Malacca have been in the limelight. Statistics highlighting the risk of piracy faced by shipping in the Strait of Malacca and the possibility of a terrorist attack have led to an enhanced awareness of the need for heightened security. The declaration by Lloyd’s Joint War Committee (JWC) of the Strait as a “war risk area” has strengthened the perception that the littoral states have not done enough to make the Strait secure for international trade.     

The impact of low sulphur fuel requirements in shipping on the competitiveness of roro shipping in Northern Europe

Annex VI of the MARPOL Convention aims for a reduction in sulphur oxide emissions from ships. The limits applicable at sea in Emission Control Areas (ECAs) were reduced from 1.5% to 1% in 2010 and are planned to be further reduced to 0.1%, effective from 1 January 2015. This paper analyses the impact of the International Maritime Organization’s Tier II/III standards introduced by Annex VI amendments adopted in October 2008 on costs and prices of roro (roll on/roll off) traffic in the ECAs in North Europe and on the competitiveness of roro shipping in the ECAs compared to trucking. We demonstrate that the new Annex VI agreement may be quite costly for the participants in the shipping industry and will result in higher freight rates. Based on a detailed price analysis on modal competition between the roro/truck option and the ‘truck only’ option on thirty origin–destination routes linked to the ECAs, we conclude that the use of low sulphur fuel is expected to increase the transport prices particularly on the origin–destination relations with a medium or long short sea section. The paper also presents the results of a survey among leading short sea operators in the ECAs in view of providing more insight on expected modal shifts and price elasticity in the short sea market.     

Evaluation of risk attitude in the shipping freight market under uncertainty

ABSTRACT

The main purpose of this study is to examine how market participants take risks, in other words, what their risk attitude/preference is, and how their risk attitude could be related to the shipping freight and other markets. To address them, we calibrated the risk attitude of participants in shipping freight markets from 2007 to 2013, and provided an example of the application of risk attitude. For market participants, risk attitude/preference has an important role in understanding shipping freight markets and managing risks under uncertainty. However, risk attitude is not directly observable. To achieve this, we applied a framework that consists of structural model and calibration with market data. We interpreted risk attitude and confirmed that a structural break occurred around 2008 for the calibrated risk attitude parameter. The average risk attitude of market participants tended to be more risk-averse after 2010. We conducted an additional analysis to provide an example of the application of calibrated risk attitude, using structural equation modeling to calculate a latent variable that reflected other commodity markets. We compared the risk attitude parameter and the latent variable, and clarified the relationship between the risk attitude parameter and commodity markets.     

A citation network analysis of sustainability development in liner shipping management: a review of the literature and policy implications

ABSTRACT

Based on an analysis of 253 related papers drawn from the Web of Science database, this study examines holistic sustainability research in liner shipping management literature using a citation network analysis (CNA) approach followed by a qualitative analysis of findings. We identify four major research domains, namely shipping performance, port selection and management, shipping markets, and environment, as well as related sub-domains of shipping performance. We discuss the current research trends and focal issues in these domains with a focus on their implications for policy development. Our results indicate that while the sustainability discourse in the literature has developed and matured significantly over the last decade, generating valuable insights for practitioners and regulators alike, it still struggles with blurry terminology and a lack of holistic frameworks jointly addressing the different aspects of sustainability: Economic considerations of liner shipping are still the main concern, while environmental and social issues are less regarded in the academic discourse. Furthermore, we identify a dearth of studies rooted in managerial or economic theory. In this regard, our study provides insights on the scope of the holistic sustainability discourse in liner shipping management, its contributions to theory and practice, and its implications for the further development of policies addressing sustainability in liner shipping management. We advocate further construct development for sustainability in liner shipping, as well as empirical tests of the antecedents of sustainability practice adoption in the industry for future research.     

Transnational corporations; problems for study in the new international order of maritime shipping

This paper examines what is becoming the new order of maritime shipping, the transnational corporation. By combining the flags of convenience with crews of convenience, these corporations have become entiitcs with an existence above and beyond the nation-state in which they operate. Factors contributing to and problems resulting from this maritime structure are discussed. Possible resons for scholarly neglect of this area in the U.S.A. are suggested.     

“Blue” social capital and work performance: anthropological fieldwork among crew members at four Danish international ships

One outcome of globalization is an increasing number of seafarers, who seldom are members of the same crew two voyages in a row and must cooperate with seafarers from many countries (Progoulaki and Roe WMU J Marit Affairs 10:7–23, 2011). This situation challenges the level of social capital on board, i.e., the resources inherent in network cooperation associated with norms of reciprocity and trust (Putnam 2000: 19). Fragmentized “blue” social capital should, however, be restored, as work performance depends on the quality of cooperation among crew members horizontally, as well as between crew members and the shipping company vertically. Drawing on anthropological fieldwork data from four Danish international ships, the purpose of this paper is to offer a new theoretical framework for analyzing cooperation among crews. Our inductive empirical findings suggest that a balance between three types of social capital—bonding, bridging and linking—is needed to achieve a high-performing work system (Gittell et al. Organ Sci 21(2):490–506, 2010). Hence, the main actors within the shipping sector should take “blue” social capital into account to increase work efficiency and economic performance.     

Maritime piracy in the Indo-Pacific region – ship vulnerability issues

This paper describes the current situation with piracy and armed robbery at sea in the Indo-Pacific region, particularly off the Horn of Africa and in Southeast Asia. This situation may be aggravated due to the downturn in international shipping following the global financial crisis. This has led to surplus shipping capacity, crews paid off, lower profits, and ship owners seeking to cut costs. Many ships are laid up in anchorages prone to sea robbery, and there is a risk that ships might be less well maintained and operated. This paper also explains how some ships are more vulnerable to attack than others. Sub-standard ships are more likely to be successfully attacked than quality vessels. Issues are identified that might be addressed by the shipping industry and ship owners, as well as by the International Maritime Organization (IMO). In addition to being a victim of piracy, the shipping industry could be adding to the problem by laying up ships in vulnerable areas, reducing wages and sizes of crew and employing sub-standard ships. This situation could be symptomatic of wider problems in international shipping that throw doubt on the effectiveness of current regimes for ship safety, security and marine environmental protection.     

How can stakeholders promote environmental and social responsibility in the shipping industry?

The highly globalized and competitive nature of the shipping industry poses serious governance challenges. Recently, the use of voluntary measures, such as corporate social responsibility (CSR) initiatives, has been explored in terms of moving towards environmentally and socially responsible as well as safe shipping industry practices. Limited attention has been paid on the role of stakeholders such as consumers, employees, NGOs, and academia in pressuring the shipping industry towards greater environmental and social responsibility. Here, by applying stakeholder theory and drawing on examples of already materialized stakeholder actions and multi-stakeholder initiatives, we study the potential ways that stakeholders can promote CSR in the shipping industry: we explore the resource dependencies between stakeholders, the stakeholder influence strategies, and the importance of multi-stakeholder pressure. We show that stakeholders can gain more power by using indirect strategies such as working via and/or in alliances with NGOs, trade unions, banks and financers, and/or different national or international regulatory bodies, as well as with the industry itself. Our results reveal the potential of multi-stakeholder pressure and action to promote the adoption of CSR activities, support the transparency, legitimacy, and enforcement of the practices, as well as widen the scope and focus of CSR initiatives and practices by focusing on a broad range of social and environmental issues. Finally, stakeholder pressure can push towards improved regulations. The study suggests that increased attention needs to be paid on the multi-stakeholder demands, especially considering the accentuated importance of effective maritime governance in the future.