Shipping and the Transfer of Technology†

This paper discusses and assesses the complex process of change that has occurred in East Europe over thc last five years, and attempts to relate these changes to the shipping sector. Conventional mathematical methods are discussed as inappropriate in analysing economic, social and political developments and the technique of conceptual modelling is used, borrowed from other disciplines including those of environmental appraisal and computer sciences. The main linkages are discussed with particular reference to the Polish shipping sector, with specific analysis of the legal, managerial, spatial, economic, political, social and organizational contexts. The dominant themes of change are drawn out in an attempt to predict the impact on the Polish shipping industry in general and the three main State companies–Polish Ocean Lines (Liner Shipping); Polish Steamship Company (Bulk/Tramp) and Polish Baltic Ferries– that dominate the market.     

East European shipping and economic change: a conceptual model

This paper discusses and assesses the complex process of change that has occurred in East Europe over thc last five years, and attempts to relate these changes to the shipping sector. Conventional mathematical methods are discussed as inappropriate in analysing economic, social and political developments and the technique of conceptual modelling is used, borrowed from other disciplines including those of environmental appraisal and computer sciences. The main linkages are discussed with particular reference to the Polish shipping sector, with specific analysis of the legal, managerial, spatial, economic, political, social and organizational contexts. The dominant themes of change are drawn out in an attempt to predict the impact on the Polish shipping industry in general and the three main State companies-Polish Ocean Lines (Liner Shipping); Polish Steamship Company (Bulk/Tramp) and Polish Baltic Ferries- that dominate the market.     

Comparative advantage and maritime transport in the Baltic States

Conventional wisdom has it that, because of locational and other advantages, transit trade and transport, especially maritime transport, could be expected to play a major role in the development process of the Baltic States which was expected to follow their renewed independence in 1991. This paper secks to evaluate this proposition. The first section of the paper provides a brief account of the present state of the shipping and port sectors in the three Baltic republics and offers some speculation about likely future developments. The following section considers whether there is any historical basis for the presumption in favour of transit trade. The paper concludes with a somewhat speculative discussion of whether the Baltic States might be expected to possess any long run comparative advantage in maritime transport. It is suggested that in this respect a distinction should be made between ports and shipping and that in a more prosperous future, shipping, in particular, might be expected to decline in importance.     

The commercialization of East European liner shipping: the experience of Poland

This paper will examine the impact of continuous and increasing change in the shipping sector of Eastern Europe with particular reference to the liner sector in Poland one of the more dynamic markets that has emerged since the political, economic and social changes of the late 1980s. Polish Ocean Lines, and in particular POL Levant, a relatively new, commercialized subsidiary operating in the private sector, are taken as case studies to assess the new structures that are emerging in the marketplace.     

The adaptation of the Polish shipping companies to market conditions

At the end of the eighties, fundamental changes took place in Polish shipping. Implementation of the market economy system was at first demonstrated in the introduction of the principles of self-dependence, self-government and self-financing of the shipping companies. Privatization performed a key role in the program of transformation of the centrally planned system into market oriented financially independent shipping organizations. The previous principle of the necessary participation of the home fleet in transporting domestic sea-borne trade has been mostly replaced by cross-trade. Many shipping services have left its basic ports in the country for a West European basis, securing alimentation of home and transit cargoes by feeder-service systems. Joint stock companies in shipping with substantial shares of foreign capital are welcomed, and the previously obligatory system of administrative methods of the state monopoly has been abolished. The principles of shipping policy represented in the past by Poland and also by UNCTAD in the 1960s have lost their impact and must be change and adapted to the new demands of the shipping markets.     

The adaptation of the Polish shipping companies to market conditions

At the end of the eighties, fundamental changes took place in Polish shipping. Implementation of the market economy system was at first demonstrated in the introduction of the principles of self-dependence, self-government and self-financing of the shipping companies. Privatization performed a key role in the program of transformation of the centrally planned system into market oriented financially independent shipping organizations. The previous principle of the necessary participation of the home fleet in transporting domestic sea-borne trade has been mostly replaced by cross-trade. Many shipping services have left its basic ports in the country for a West European basis, securing alimentation of home and transit cargoes by feeder–service systems. Joint stock companies in shipping with substantial shares of foreign capital are welcomed, and the previously obligatory system of administrative methods of the state monopoly has been abolished. The principles of shipping policy represented in the past by Poland and also by UNCTAD in the 1960s have lost their impact and must be change and adapted to the new demands of the shipping markets.     

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.     

Positional change in the Polish liner shipping market: a framework approach

This paper examines the changing position of Polish Ocean Lines (POL) container shipping activities in the North Atlantic, in the light of social, political and economic changes occurring in Poland. An analysis is made of alternative ways of assessing company position—ranging from the qualitative to the quantitative—and that of a qualitative framework approach is selected. Application of this framework using POL as a case study provides an indication of positional change between 1988 and 1993 reflecting the period of major change in Eastern Europe.     

Shipping economics: where we are and looking ahead from an institutional economics perspective [1]

There have been significant changes in the nature of shipping services in recent years. These have been most notably in the liner segment, but other parts of the market have not remained static. Technology shifts have been responsible for some of the change, but there have also been developments in institutional structures and managerial approaches. The economic drivers behind the sector, however, remain relatively poorly understood, despite a copious literature on shipping. Managerial economics has tended to put emphasis on the emergence of more sophisticated logistics structures and the role of information to tighten the overall supply chain. Industrial economists have been concerned with technical change and in particular with its interaction with more liberal markets structures. Often tied with this has been interest in the underlying nature of shipping markets (e.g. competitive, monopolistic or contestable) and, depending on the outcome, whether there is price leadership, collusion, predatory behaviour or whatever. Much of this work has been aspatial, treating shipping as any other industry with distance between demand and supply ignored or incorporated in a very simplistic manner. Environmental economists have focused on matters of fuel efficiency and pollution. This paper takes a broad overview of shipping economics in the context of the larger institutional framework within which it operates. It seeks broader analysis within an institutional economics framework, but also highlights some of the problems of achieving this.     

Polish shipping and shipping policy

Following a period of about 120 years, when external political pressures prevented Poland from engaging in maritime commercial activities, the end of World War I marked an important epoch in Poland's maritime history. Although the Peace Treaties gave Poland access to the sea and the right to use Gdansk, it was not until 1926, when Poland's first shipping company was established and Poland's new port of Gdynia opened, that her new status as a maritime country was fashioned. This paper traces the development of Polish shipping from 1918 to the present time; discusses the factors related to Poland's problems in the sphere of international maritime transport; and outlines Poland's present shipping policy.     

Shipping economics: where we are and looking ahead from an institutional economics perspective [1]

There have been significant changes in the nature of shipping services in recent years. These have been most notably in the liner segment, but other parts of the market have not remained static. Technology shifts have been responsible for some of the change, but there have also been developments in institutional structures and managerial approaches. The economic drivers behind the sector, however, remain relatively poorly understood, despite a copious literature on shipping. Managerial economics has tended to put emphasis on the emergence of more sophisticated logistics structures and the role of information to tighten the overall supply chain. Industrial economists have been concerned with technical change and in particular with its interaction with more liberal markets structures. Often tied with this has been interest in the underlying nature of shipping markets (e.g. competitive, monopolistic or contestable) and, depending on the outcome, whether there is price leadership, collusion, predatory behaviour or whatever. Much of this work has been aspatial, treating shipping as any other industry with distance between demand and supply ignored or incorporated in a very simplistic manner. Environmental economists have focused on matters of fuel efficiency and pollution. This paper takes a broad overview of shipping economics in the context of the larger institutional framework within which it operates. It seeks broader analysis within an institutional economics framework, but also highlights some of the problems of achieving this.     

Polish shipping and shipping policy

Following a period of about 120 years, when external political pressures prevented Poland from engaging in maritime commercial activities, the end of World War I marked an important epoch in Poland's maritime history. Although the Peace Treaties gave Poland access to the sea and the right to use Gdansk, it was not until 1926, when Poland's first shipping company was established and Poland's new port of Gdynia opened, that her new status as a maritime country was fashioned. This paper traces the development of Polish shipping from 1918 to the present time; discusses the factors related to Poland's problems in the sphere of international maritime transport; and outlines Poland's present shipping policy.     

Predictability of the dry bulk shipping market by BIFFEX

When BIFFEX (Baltic International Freight Futures Exchange) came ijnto existence in 1985, many critics were perssimistic that it would have a successful future. In spite of the eight year's surival of BIFFEX, a recent empirical study shows that BIFFEX is not widely used a s a hedging tool ijn the shipping community, unlike the expectations and recommendations of many experts. one reason could be that BIFFEX may not be considered peredictive of the physical market and, therefore, investors might be suspicious of the hedging effect. The objective of this paper is to test this argument by exdamining the predicatability of BIFFEX in the dry bulk shipping market up to six months. Prior to the real situation, the explainable power ranges from 90% in a one-month advance to 23% in a six-month advance.     

波罗的海干散货运价指数波动性研究

为把握国际干散货市场运价指数的波动特征,规避航运经营风险,建立基于广义的自回归条件异方差(GARCH)的运价指数波动模型.选取四种船型的波罗的海干散货运价指数BCI、BPI、BHI、BSI作为研究的样本数据.利用EVIEWS软件,通过分析样本数据的基本统计特征和ARCH效应检验等,对四种船型分别建立了GARCH(1,1)模型.实例验证表明模型能很好地反映波罗的海干散货运价指数波动的敏感性和持续性规律,从而可为航运经营提供决策支持.     

National-flag shipping: An appraisal of policy options from a Canadian perspective

In this paper the author reviews recent developments in Canadian government policy with regard to national-flag shipping. In response to criticism from various marine interest groups that successive governments have done little to encourage the development of national-flag shipping, federal administrations have taken a more active part in the debate. This has been manifest in several reports produced under the auspices of Transport Canada, which discuss the desirability of using selective tax or fiscal incentives to promote investment in Canadian shipping. The author outlines the arguments for expanding national-flag shipping, relating these to the greater question of what effect these proposed financial measures might have on the use of capital and other resources. He concludes that selective preferential taxation may be justified by the repatriation of shipping activities now offshore and avoidance of further shifts of manpower and capital offshore.     

Liner shipping between East and West Europe: competitive developments in the Poland-United Kingdom trade

This paper provides an analysis of the development of the liner route between the UK and Poland and the activities of the two main operators—EuroAfrica of Poland and United Baltic Corporation of London. The most significant factors driving the development of this trade are analysed using a combination of an industrial survey and government statistics for the route, before going on to examine the threat to the trade presented by the growth of the trucking mode.     

Liner shipping between East and West Europe: competitive developments in the Poland–United Kingdom trade

This paper provides an analysis of the development of the liner route between the UK and Poland and the activities of the two main operators—EuroAfrica of Poland and United Baltic Corporation of London. The most significant factors driving the development of this trade are analysed using a combination of an industrial survey and government statistics for the route, before going on to examine the threat to the trade presented by the growth of the trucking mode.     

A conceptual application of cooperative game theory to liner shipping strategic alliances

Since its advent, the liner shipping industry has been characterized by fierce competition and cooperation amongst the member carriers. In recent years, almost all the liners have sought extensive cooperation with others, as reflected mainly by the formation of strategic shipping alliances. Despite this, there are still some liners who prefer the 'go-it-alone' policy and have achieved relative success. It seems that cooperation is not always necessary for a liner company's success. It follows that a study that aims to find the rationale behind liner cooperation (or non-cooperation) is of great significance. Over many years of development, game theory has proved to be a useful tool in the study of economics. It is analytically applicable in this market. With these arguments in mind, this paper aims to apply cooperative game theory to analyse co-operation among members of liner shipping strategic alliances. This will involve: (i) presenting a detailed and systematic analysis of liner shipping strategic alliances: (ii) a concise overview of the development of game theory with specific focus on cooperative game theory, and (iii) deducing a conceptual framework through the application of cooperative game theory to liner shipping strategic alliances. The accomplishment of the aforementioned objectives will enhance understanding of inter-organizational relationships and decision-making behaviour in the liner shipping sector.     

A conceptual application of cooperative game theory to liner shipping strategic alliances

Since its advent, the liner shipping industry has been characterized by fierce competition and cooperation amongst the member carriers. In recent years, almost all the liners have sought extensive cooperation with others, as reflected mainly by the formation of strategic shipping alliances. Despite this, there are still some liners who prefer the ‘go-it-alone’ policy and have achieved relative success. It seems that cooperation is not always necessary for a liner company's success. It follows that a study that aims to find the rationale behind liner cooperation (or non-cooperation) is of great significance. Over many years of development, game theory has proved to be a useful tool in the study of economics. It is analytically applicable in this market. With these arguments in mind, this paper aims to apply cooperative game theory to analyse co-operation among members of liner shipping strategic alliances. This will involve: (i) presenting a detailed and systematic analysis of liner shipping strategic alliances: (ii) a concise overview of the development of game theory with specific focus on cooperative game theory, and (iii) deducing a conceptual framework through the application of cooperative game theory to liner shipping strategic alliances. The accomplishment of the aforementioned objectives will enhance understanding of inter-organizational relationships and decision-making behaviour in the liner shipping sector.