The impact of US regularory practices on the productivity of ocean liner services?

This United States stands alone amongst the nations of the world in its attempt to unilaterally regulate transnational ocean linear services. The major reason for current US regularity policies with regard to scheduled ocean transportation lies in its fundamental distruct of any form of co-operation amongst competitors as demonstrated by its history of antitrust legislation.

The linear industry, because of its unique technical and economic charectersitics has given rise to the establishment of ocean conferences—co ordinating sgreements between the operators of linear vessels. Whilst ocean conferences are permitted—even encouraged—by the their most diluted form, the so-called 'open conferences.

This Paper offers a critical review of Successive US regulatory practices in maritime transport. It is argued that these practices result in excess costs in US trades to the order of $1 billion annually, and that the linear industry's efficient functioning is seriously impaired by these rules-rules imposed by a government administration which fails to recognize that the linear industry's technical efficiency is of far greater importance than its market performance.     

Out of sight is not out of mind: Public opposition to ocean incineration

Abstract

During the early 1980s, ocean incineration emerged as one of the hottest issues in the field of hazardous waste management. Ocean incineration involves the thermal destruction of liquid hazardous wastes on specially designed ships and was promoted by the Environmental Protection Agency and powerful industry groups as part of the solution to liquid hazardous waste disposal. Attempts to adopt ocean incineration led to heated debate and apparent defeat of efforts to introduce this technology. The arguments advanced by proponents and opponents are examined. Success of environmental groups opposed to ocean incineration is explained with reference to technical, environmental, socio‐political, and legal factors. Ocean incineration, promoted as a solution to “not‐in‐my‐backyard”; opponents, instead ran afoul of region wide opposition by coastal residents for whom the sea is a common backyard.     

Union rivalry and crew reform in shipping: A United States—Australia comparison

The national-flag fleets of most of the traditional martitime nations have, in virtually every case, been in decline in the 1980s and 1990s, despite the continued growth of ocean shipping. They have declined in terms of numbers of vessels and numbers of sea-going jobs, although not necessarily in terms of cargo carried. However, a number of those nations have responded to the changed technological and competitive conditions with some success by attempting to adjust crewing and work practices on vessels at sea. Neither the USA nor Australia has been in the forefront of such change. However, considerably more progress has been made in modernizing crewing practices and work rules in the Australian-flag fleet than in the US-flag fleet. There are a variety of reasons for this, inluding government policy. However, it is our argument that one of the principal reasons the US fleet lags behind the Australian fleet in the adoption of modern crewing practices and work rules is the much greater degree of union rivalry in the US shipping industry. In fact, while the degree of fragmentation and rivalry among unions in the Australian flag fleet has declined dramatically since 1980, their US cousins have continued, and in some ways expanded, their pattern of fratricidal behavior. First we shall discuss some of the technological and competitive imperatives that are driving human resource management practices in shipping and the crewing and industrial relations adjustments that are being made around the world to adjust to them. Then we shall indicate how the Australian and US fleets have responded to these challenges. This will be followed by a discussion of unionism in the Australian and US maritime industrics as it has devloped in the last two decades of the twentieth century. Finally, we shall draw conclusions about the impact of different patterns of unionization.     

The effects of US shipping regulation on specific aspects of liner conference operation

This paper is the first of two articles by J. E. Davies which seek to explore the incongruities of the USA's current regulatory system. The second paper will cover the overall economic impact of the USA's insistence on open conferences in its trades, whilst the first concentrates on the effects of US regulation on specific aspects of the operation of linear conferences.     

Some notes on structure and stability in liner shipping

Almost six years have elapsed since the passage of the Ocean Shipping Reform Act (OSRA), legislation that has led to significant changes in the structure of the US liner shipping industry. The European Union (EU) is poised to follow suit with the impending elimination of rule 4056/86, the block exemption from EU competition rules for liner shipping companies operating on European trades routes. The EU reform, however, is likely to go further than OSRA by prohibiting both conferences and discussion agreements on European trade routes. The outcome of such a policy is uncertain and the current review of it is several years old already. This paper is intended to provide some insight into the potential impact of regulatory reform in Europe, using the US experience as a benchmark. Specifically, the impact of OSRA with respect to industry structure, including its profitability, efficiency and what may be in store for the future is examined.     

Some notes on structure and stability in liner shipping

Almost six years have elapsed since the passage of the Ocean Shipping Reform Act (OSRA), legislation that has led to significant changes in the structure of the US liner shipping industry. The European Union (EU) is poised to follow suit with the impending elimination of rule 4056/86, the block exemption from EU competition rules for liner shipping companies operating on European trades routes. The EU reform, however, is likely to go further than OSRA by prohibiting both conferences and discussion agreements on European trade routes. The outcome of such a policy is uncertain and the current review of it is several years old already. This paper is intended to provide some insight into the potential impact of regulatory reform in Europe, using the US experience as a benchmark. Specifically, the impact of OSRA with respect to industry structure, including its profitability, efficiency and what may be in store for the future is examined.     

The implications of MARPOL Annex V on the management of ports and coastal communities

Abstract

The passage of the Marine Plastics Pollution Research and Control Act of 1987 (MPPRCA), which codified Annex V of the International Convention for the Prevention of Pollution from Ships (MARPOL), has encompassed every commercial and recreational shipping and boating facility in the United States. As a group, these ports, harbors, and marinas form a significant, although proportionately small, portion of the coastline of the country. More important, the economic benefits derived from the complex shoreside infrastructures required for international ocean trade, commercial and recreational fishing, and pleasure boating indicate just how critical it is for these facilities to be in conformance with effective and prudent coastal zone and environmental management practices.     

国际海事组织A类理事国提交提案情况统计分析

向国际组织会议提交提案是表达一个国家立场主张和利益诉求的基本手段,提案也反映出一个国家科技术水平和软实力。当选国际海事组织理事国,特别是A类理事国,是一个国家在国际航运界影响力的重要体现。文中通过对国际海事组织A类理事国近年来提交到各次会议的提案统计数据的比较和分析,揭示了A类理事国参与国际海事组织工作的现状,并进一步提出今后加强我提交提案工作的建议。     

The competitive environment of liner conferences

Although liner conferences are traditionally assumed to possess effective monopoly power, such a view ignores many important aspects of their competitive environment. This article examines some of these neglected competitive features and shows how they may decisively influence conference pricing strategies.

In the analysis of linear shipping, the notion that conferences are effective monopolists lies at the root of many of the grievances of the conference system. It has also become an integral part of the conventional wisdom of shipping economies, to such an extent that the monopoly power of conferences is virtually regarded as a matter of established fact rather than what it really is-namely a postulated assumption open to testing and refutation.

It is the purpose of this paper to explore the competitive conditions of the industry in which liner conferences operate and to try and establish the extent and limitations of their market power. This will involve an analysis of hte bariers to entry which conferences may be protected by, the manner in which the relevant industry should be defined, the possibility and consequences of new entry, and the response of conferences to their competitive environment.     

State ocean policy initiatives in Florida

Abstract

A territorial sea comprising 6.7 million acres of offshore lands extending three geographic miles into the Atlantic Ocean three marine leagues (nine geographic miles) into the Gulf of Mexico makes Florida the second largest “oceanowning”; state in the contiguous United States. Florida's history, climate, economic development, and worldwide reputation have evolved from the state's relationship with the sea. The state is now becoming aware that aggressive management of its ocean resources is necessary to preserve the future of that relationship. The purpose of this article is to present some of Florida's recent legal and policy initiatives that have been directed toward better understanding and management of ocean resources and uses.     

The opinions and attitudes of Louisiana's Coastal Zone residents toward outdoor recreational development: A perspective for planning and management

Abstract

In 1967, a new road facilitated access to a number of small, impoverished, rural communities in a marshy region along Mexico's Pacific coast. One of these—the only one situated on the Pacific shore—began to be visited by an increasing stream of tourists. This article discusses the severe sociocultural problems which the initial phase of tourism development caused in Teacapán, and argues that these are part of a syndrome which is manifest in similar situations worldwide. By anticipating this syndrome before tourism development gets underway, planners and managers of coastal tourism development in Third World nations would be better prepared to mitigate most of its severe effects.     

Implementing green supply chain practices: an empirical investigation in the shipbuilding industry

ABSTRACT

Environmental concerns have become important in the shipbuilding industry. Governmental expectations about environmental and social performance are much higher than in the past. Public authorities penalize companies that do not comply with the rules. Shipbuilding companies face these challenges by introducing new technologies into their business processes. They do not only start initiatives to green their own business processes but also those of their supply chain partners. This form of environmental management is called Green Supply Chain Management (GrSCM) and its importance is increasingly recognized. Although GrSCM is growing, companies are experiencing difficulties engaging suppliers in environmental activities.

This empirical study analyses drivers for supply chain participation of suppliers in the shipbuilding industry. We explain the participations of suppliers in GrSCM practice by investigating influencing factors including governmental involvement in greening the supply chain, customer requirements towards green issues, feeling of social responsibility, competitive advantage by going green, and GrSCM readiness. Hypotheses are tested with partial least squares, using survey data of 93 suppliers of two leading shipbuilding companies. We found GrSCM readiness, competitive advantage, and social responsibility to be significant drivers in supplier participation. No significant support was found for governmental involvement and customer requirements.     

Linking ocean container carrier capabilities to shipper–carrier relationships: a case study

ABSTRACT

As outsourcing and offshoring continue to expand, the ocean container industry serves a critical and still increasing role in supporting global trade. Yet, perceived commoditization and intense price competition among ocean container carriers limit opportunities for competitive advantage and formation of long-term shipper–carrier relationships. This environment ultimately yields an unhealthy industry that threatens the stability of global supply chains. Extant literature provides limited insight into how carriers can build strong relationships with shippers to overcome the short-term, transactional-orientation of the industry. Examining a case study of a major ocean container carrier, we apply structural equation modeling to shipper survey data to explore how carrier operational, service, and pricing capabilities influence the strength of the long-term shipper–carrier relationship. Furthermore, we identify unique clusters of shipper needs, helping the carrier understand when and how to promote a particular portfolio of capabilities to customers.     

Summary

This study comprises four major sections. Section A presents the reader with a broad view of liner conference operations, covering the origin of the conference system, its internal organization, achievements and the problems and inefficients generated in trades with the US by FMC regulation. Section B explores the legal aspects of conference operation and is especially concerned with the implications and legality of the USA's policy of unilateral regulation of conferences through national legislation. Section C investigatees the economic environment in which conferences operate, postulates a new economic models applied to liner shipping. Section D consistes of a and illustrates the failures of that Report.     

The Ocean Shipping Reform Act: the trans-Atlantic cares

For many years, economists have pressed for the deregulation of the shipping industry, with studies purporting to show constant returns to scale in motor transport, and staggering losses inflicted on the economy by regulation. Deregulation is now the order of the day in the US, but during the deregulation process, the Federal Maritime Commission (FMC) struggled with strong pressure to remove anti-trust immunity historically enjoyed by ocean shipping conferences.

However, instead of entirely removing this anti-trust immunity, the US Congress passed the Ocean Shipping Reform Act (OSRA) in 1998. OSRA, which came into effect on 1 May 1999, represents a logical continuation of the trend toward deregulation established by the Shipping Act of 1984. Although the Act (OSRA) maintains anti-trust immunity, its creation also established confidential service contracts between shippers and individual lines.

Because the actual effect of this Act has yet to be researched and reported in the transportation literatures, this paper assesses the impact of OSRA on the market structure of the container shipping industry. Three major east- and westbound arterial routes, as determined by Drewry Shipping Consultants and Containerisation International, are examined in this study to ascertain whether the markets are competitive or not 1, 2. The trade imbalance existing in all three trade routes (trans-Atlantic, trans-Pacific, and from Asia to northern Europe) provides a basis from which to investigate the pricing structure in the container shipping market. The changing tariff structure of the trans-Atlantic lane in 1999 provides the foremost evidence of the impact of the Act to evaluate the new law's impact on the maritime industry. By examining the traffic volume and freight rates of inbound and outbound trades, this paper found that before the second quarter of 1999, the trans-Atlantic lane's market structure was non-competitive, but it became competitive after the third quarter of 1999. This paper concludes that OSRA did have substantial influence on the market structure of the trans-Atlantic lane since the Act came into effect on 1 May 1999. The Act laid a solid legal framework upon the industry that forced the carriers in the trans-Atlantic trade route to operate competitively.     

The slippery slope of lot consolidation in the Santa Monica Mountains: A program assessment

Abstract

The authors present an assessment of the Coastal Conservancy's efforts to consolidate small, substandard lots in the Santa Monica Mountains. Emphasis is placed on the ‘ ‘lessons learned’ ‘ by the Conservancy in its project experience as those lessons may be applicable to related efforts elsewhere. Finally, alternative means of lot consolidation are suggested. This assessment should be of relevance to other programs nationwide to address the problem of antiquated subdivisions.     

Environmental awareness and practice concerning maritime air emissions: the case of the Greek shipping industry

One of the most urgent environmental problems facing the shipping industry today is the reduction of Greenhouse Gas (GHG) emissions from its operations and the possible cost-effective ways in which this reduction could be accomplished. Various technical and operational measures have been proposed as well as market-based instruments for the achievement of the compliance of marine industry with these measures. This paper investigates the levels of environmental awareness of the Greek shipping companies and their views and practices on the proposed policies for the reduction of GHG emissions from their ships. A survey was carried out using a questionnaire distributed to Greek shipping companies of different sizes, involved in different segments of the marine industry, so that the survey's results not only represent a large part of the Greek shipping industry but also reveal the different environmental attitudes and practices on maritime GHG emissions among the shipping companies. Given the size and the importance of the Greek shipping industry in the international maritime field, this paper's results present a special significance as they could be further analyzed and taken into account for the achievement of the compliance of marine industry with any future policy instrument for the reduction of maritime GHG emissions.     

Coastal zone management from an administrative perspective: A case study of the san francisco bay conservation and development commission

Abstract

Competent administration of the Coastal Zone Management Act of 1972 (CZMA) must proceed on an informed understanding of the organization styles and capacities of agencies presently dealing with similar problems. One such agency, the San Francisco Bay Conservation and Development Commission (BCDC), the forerunner of the California model of coastal management, is analyzed here to shed light on where we are headed and what we can expect administratively as the CZMA becomes an operation reality.

The major administrative insights offered fall into the areas of: (1) effectiveness assessment‐the BCDC's success is systematically defined and measured, and a discussion of what effectiveness evaluation implies in the area of coastal resource management is undertaken; (2) understanding organizational success—the BCDC's administrative style is analyzed in terms of the synergy which has been created between its organizational structure and decision‐making process; and (3) implications of agency success—which of the BCDC's lessons are most valuable and how these can be applied to other situations are shown.     

Key criteria influencing the choice of Arctic shipping: a fuzzy analytic hierarchy process model

As Arctic sea ice shrinks due to global warming, the Northern Sea Route (NSR) and the Northwest Passage (NWP) offer a substantial reduction in shipping distance between Asia and the European and North American continents, respectively, when compared to conventional routes through the Suez and Panama Canals. However, Arctic shipping routes have many problems associated with their use. The main objective of this paper is to identify the key criteria that influence the decisions of shipping operators with respect to using Arctic shipping routes. A multi-criteria decision-making methodology, the Fuzzy Analytic Hierarchy Process, is applied to rank four potential categories of criteria (‘economic’, ‘technical’, ‘political’ and ‘safety’ factors) and their sub-criteria.

The results of the analysis suggest that, on aggregate, ‘economic’ is the most important category of influential factors, followed by ‘safety’, ‘technical’ and ‘political’ factors. The paper concludes, however, that the most influential specific sub-criteria relate to risks that lie mainly within the ‘safety’ and ‘political’ domains and that, especially in combination, these overwhelm the importance which is attached to ‘economic’ factors such as reduced fuel use. Finally, the implications of these findings for the future development of Arctic shipping are addressed at a strategic level.     

Cost and User Profile of a Coastal Ocean Observing System

Fundamental to sustaining the financial support of a coastal ocean observing system is an intimate knowledge of users and their decision-making processes in order to maximize the worth of ocean observations to them. This article explores the evolving mission of GoMOOS (the Gulf of Maine Ocean Observing System), its costs of providing near real-time observations and observing products, possible methods to assess the benefits of an ocean observing system, and a method for indexing the importance—and thus, potentially, the economic value—that users attach to these observations and products.