Market structures in coastal shipping: what to expect in Canada following the Comprehensive and Economic Trade Agreement with the European Union?

After several years of negotiation between Canada and the European Union, the Comprehensive and Economic Trade Agreement (CETA) was ratified in early 2017. The regime set out by the Canadian Coasting Trade Act that reserves shipments of cargo between Canadian ports to Canadian vessels remains mostly untouched under CETA. Minor, yet potentially significant, changes to the regime are introduced by the trade agreement. Provisions are made to liberalize the repositioning of empty containers within Canada. The liberalization of public markets now allows European firms to compete in the Canadian dredging market. Finally, EU vessels can undertake some transshipment activity in Canada but this is limited to international cargo on the specific Montreal-Halifax route. The paper attempts to highlight some possible CETA’s consequences for domestic Canadian shipping markets. It uses industrial economics analytical tools drawn from a Structure-Conduct-Performance (SCP) paradigm. From a literature review, it reconstructs different cases of deregulation that occurred internationally. The observed transformations are then characterized in terms of the SCP model. The paper identifies some common impacts which occurred in different transportation industries after a deregulation process. Using these findings, it concludes by discussing potential impacts for domestic shipping markets in Canada.     

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.     

Towards a common ports policy? EU-proposals and the ports industry's perceptions

This paper discusses the European Union's (EU) proposals to improve the efficiency and infrastructure of European ports, and investigates the extent to which these proposals are welcomed by the ports industry. On the one hand, the analysis of the recent EU policy developments makes apparent that the EU is increasingly impinging upon the port industry's life. On the other hand, the findings of the semi-structured interviews with the industry's representatives suggest that although port authorities and port operators remain in principle against a coherent common EU ports policy, the industry believes that certain EU initiatives can enhance the competitiveness of the maritime transport system.     

Port-centric logistics,dry ports and offshore logistics hubs: strategies to overcome double peripherality?

Scotland's low accessibility is reflected in the limited share of Scottish unitised freight traffic coming through Scottish ports. This paper will discuss site development strategies to overcome Scotland's double peripherality (i.e. both physically and institutionally) by restructuring transport chains of large shippers through new corridors. Three competing logistics concepts will be discussed, beginning with the existing load centre terminal that provides direct access to the distant main ports. Second, port-centric logistics based at Scottish ports, and finally, offshore port-centric logistics utilising maritime links to a port-based distribution centre in Zeebrugge. The paper has two interlinked aims. First, to provide a firm theoretical grounding for recent maritime transport geography concepts, which has been lacking in the literature. This will be achieved by examining peripherality and responses to this by states at different scales, thus exploring how the three concepts in this paper can be viewed as attempts at spatial fixes of mobile capital. The second aim develops out of the first, and will explore how the perspective of space is treated in maritime geography as compared with other areas of geography. As a result, the paper pursues a cross-disciplinary approach by utilising theory from economic geography and political geography.     

Institutional reform in ports of developing countries: the case of Lebanon−part I: the plan

Upon the expiry of the concession contract signed between Lebanon and a private company for the Port of Beirut operation (in December 1990), the Government appointed a temporary commission to operate the port under the rules of the expiring concession. The legality of this measure has since always been questioned, while the temporary commission underwent three major personnel changes which clearly prevented any long-term thinking or planning. In 1998, the temporary commission entered into a 20-year joint venture for the establishment of a container terminal. Meanwhile, Lebanon's two main ports were facing major regional competition, while competing against each other to some degree. Thus, the need became urgent to end the temporary status and propose reforms to the entire sector. To that end, the Ministry of Public Works and Transport was commissed by the Government to propose a permanent institutional framework for the port of Beirut while assessing the need for a national maritime sector regulator. This paper presents the recommendations for the institutional reform of the Lebanese maritime transport sector.     

Sustainability at Spanish ports specialized in liquid bulk: evolution in times of crisis (2010–2015)

In Spain, 28 Port Authorities of general interest moved more than 168 thousand tonnes of liquid bulk (34% of overall traffic) in 2015. Almost 82% of this amount corresponded to eight ports (G-8) that have a refinery within their facilities. This unique degree of specialization and concentration makes this set of ports an ideal sample to analyse the evolution of their sustainability levels, particularly during the crisis started in 2008 and onwards. A proprietary methodology based on Multidimensional Synthetic Indices has been used. The comparison of the findings obtained for 2010 and 2015 allows a diagnosis of the evolution of port sustainability measured through the economic, institutional, environmental and social dimensions to be established, as well as a study of the patterns of behaviour that each port has followed in this issue.     

The privatization of Polish ports—the present situation and outlook for the future

The Polish economy is going through fundamental changes from a central planning to a market economy. The main aim of this transition is the privatization process which has to change the structure of Polish economy. Privatization has to establish more favourable ways of utilizing the productive capacity of state enterprises and create better conditions to compete on the market. The Privatization process for Polish state enterprises was defined in the Act on the Privatization of State Enterprises of 13 July 1990. According to this Act state enterprises can be privatized in capital or liquidation methods. The capital method has been applied to the privatization of Polish ports. In 1991 the major Polish ports were transformed into a State Treasury shareholder company. The holding company was used in the first stage of privatization. Gdynia was the first port which started this process building the real model of holding. Another important element connected with the structural transformation of Polish ports is the separation of operational and management roles. According to the Act on Ports, the Port Authority is also responsible for the development of the commercial, industrial and distribution services. This Act will also enable Poland to adapt economic and legal regulations which are similar to those in the European Union ports.     

Evaluating determinants of attractiveness and their cause-effect relationships for container ports in Taiwan: users’ perspectives

The attractiveness of ports is usually a pre-requisite and necessary condition for ports to achieve competitiveness, as well as the springboard to explore the competitive advantages of ports. To determine whether a port is competitive, it is necessary to explore whether it boasts certain factors that make the port attractive to users. The main purpose of this article is to apply the Analytic Hierarchy Process (AHP) method and the Decision Making Trial and Evaluation Laboratory (DEMATEL) technique to evaluate key determinants of attractiveness and their cause/effect relationships for container ports in Taiwan. The empirical results showed that: (1) Top six determinates of attractiveness for container ports are ‘ample cargo sources,’ ‘favorable port charges,’ ‘dense ship network and routes,’ ‘low transshipment costs,’ ‘efficient wharf operations,’ and ‘adequate wharfs and back-line land,’ respectively. (2) Among the above six determinants of attractiveness, ‘ample cargo sources’ is the cause determinant. Three determinants of port attractiveness, ‘favorable port charges,’ ‘dense ship network and routes,’ ‘low transshipment costs,’ which are the effect determinants. They are affected by the determinants of attractiveness of ‘ample cargo sources’. In addition, this study discusses the above findings and expects to provide the study results to Taiwan’s port authorities for reference.     

Transport decision-makers speak: the Seaport Development in the European Communities Research Project†—Part II

This paper, in two parts, reports on the Seaport Development in the European Communities Research Project wherein forty interviews with decision-makers were held in European seaports, and another forty were held with shipowning organizations. This part of the paper reports on analysis of the open-ended tape-recorded responses of the interviewees to six separate sets of propositions they were shown. The first major conclusion is that decision-makers in the ports and shipping industries have a great deal to offer in helping to shape future EC policies about seaports. The second is that these decision-makers on the whole agree with students of the subject, but outside the industries, that a step-by-step approach is possible towards a Common Seaports Policy. Indeed, without prompting, some respondents even confirmed a previously published suggestion for the first stage of this process—the necessity for an agreed standard basis for ports' accounts. It is believed that a small secretariat within the Brussels Commission could weld representatives of the industries into a working group which could make real progress by consulting their colleagues through interviews similar to those successfully conducted for this project.     

The potential role of public–private partnerships in the upgrade of port infrastructure: normative and positive considerations

There is a broad consensus on the need for the major expansion of many ports. Traditionally, ports and related facilities have involved significant levels of direct or indirect government ownership or some degree of government financing. Most governments, however, are reluctant to either borrow money to fund the needed additional capital infrastructure or to fund it directly. Public–private partnerships (P3s) are thus an attractive potential option. But are they the answer? This article examines the normative rationales for P3s and presents a positive theory perspective that focuses on the conflicting goals of public and private partners. It argues that the major government impetus for P3s is likely to be for physical port infrastructure with moderate levels of market failure, such as small to medium sized ports, and not for intangible port activities. Furthermore, small to medium sized port P3s are likely to be successful in terms of having relatively low transaction costs and lower total social costs than alternative provision mechanisms. Nonetheless, even in this situation, the different goals of public and private partners may give rise to conflict. Drawing on the global empirical evidence on P3s, this article proposes some institutional design features that will help to ensure P3 success.     

Leadership and Commitment in the Royal Navy ☆

What is proposed here is a relatively simple procedure by which a fleet manager may select the best mix of ships to provide a given transport service. The method is confined to non-liner trades and assumes the availability of more than enough suitable ships. It further assumes that unneeded ships can be placed in idle status (or returned to owner if chartered in) without penalty.

The objective of the procedure is to select the mix of available ships and sea speeds that can perform the required service at maximum profitability to the owner.     

CO2 air–sea disequilibrium and preformed alkalinity in the Pacific and Indian oceans calculated from subsurface layer data

This work estimates new regionalized empirical parameterizations for preformed alkalinity (A_T^o) and the CO₂ air–sea disequilibrium (?C_dis). Both are key terms for the computation of anthropogenic CO₂ in the back-calculation methods. Data from the subsurface layer (75–180 m depth range) covering an area from North to South and from 19°E to 67.5°W (Pacific and Indian oceans) were taken from GLODAP (The Global Ocean Data Analysis Project) database. The subsurface layer is proved as a reliable reference for representing the main characteristics of the different water masses of the oceans. Besides, handing data from the two ocean basins altogether makes the new parameterizations of A_T^o and ?C_dis to be more globally consistent. Nevertheless, each ocean basin, at least in some regions, has different oceanographic characteristics based on its proper dynamical processes and water masses formation. In order to maintain each ocean basin ‘identity’ the whole domain was divided in six different regions (two of them sharing waters from Pacific and Indian oceans) and parameterizations in each region for both terms were obtained. Previously, data were transformed into a grid of 4°lat. × 5°lon. and the results obtained from the parameterizations were visualized and compare with pCO₂ climatologies. From the comparisons with previous ?C_dis estimations good results are obtained showing the reliability and robustness of the new regionalized empiric parameterizations.     

Maritime security in the European Union—empirical findings on financial implications for port facilities

To address the maritime security issue, the IMO Diplomatic Conference adopted in December 2002 the International Ship and Port Facility Security (ISPS) Code. The European Union fully agreed with its contents; Regulation (EC) No. 725/2004 transposes in Community Law the associated rules, which came into force on 1 July 2004. Interesting questions from an EU-policy point of view are then: What are the additional costs associated with the implementation of security regulations by port facilities (here in particular terminals) in EU-member states? Moreover, how are these additional costs being recovered by port facilities? Another inter-related question is: are there any subsidies involved in the cost recovery? The present paper addresses these questions with the presentation of the main results of an explorative empirical study on maritime security-related costs and their financing in EU-member states. Furthermore, a number of topics are recommended for further study on maritime security costs and financing and associated (EU) regulations.     

An analysis of the pricing system in the Greek–Italian coastal routes

Price discrimination is practiced by oligopolistic coastal shipping companies in the ‘unregulated’ Greece–Italy routes in the year 2002. Investigation has been carried out ‘per route’—in a doctoral thesis—instead of ‘per market’ which was the so-far erroneous approach of shipping economists. This is so for a host of differentiating factors play a considerable and non-negligible role (like geography, distance, demand, seasonality and others). Service—and price-discrimination—in coastal shipping is affected also by the predetermined ship design which thus is a special feature—but not exclusively—in coastal shipping. Companies in the Adriatic Sea try to extract the greater possible value of the user's willingness to pay, peak and off-peak, group and ungrouped, for social groups (clubs, families and students). Marketing and economics interfere in a complicated—far from the nice world of theory—situation, where maximization of revenue and profit, capacity utilization, intense seasonality and high fixed cost (common and joint costs as well) are a few of the factors that interplay. This paper can be considered as a case study for applied pricing. Excess capacity is also a strategic factor affecting pricing. It is our opinion that the analysis here gives for the first time a complete theoretical and practical account—based on the price lists of the companies—of the pricing policy of the ferry boats running in the Adriatic Sea belonging to coastal shipping companies connecting Italy with Greece and Greece with the European Union (EU). We believe this work to be useful for maritime Europe.     

Full-scale fatigue tests of ship structures to validate the S–N approaches for fatigue strength assessment

Ships belong to those welded structures which are prone to fatigue due to high cyclic loads. Different approaches exist for the fatigue strength assessment which are varying between the industrial sectors. Therefore, deeper fatigue strength investigations were performed in Germany within an industry-wide joint research project aiming at the harmonization of the approaches. Regarding ship structures, two types were selected for full-scale tests. The first concerned web frame corners being typical for roll-on/roll-off ships (ro/ro) ships, from which three models were tested under constant amplitude loading. The second type was the intersection between longitudinals and transverse web frames, which recently showed fatigue failures in containerships. Five models were tested, three under constant and two under variable amplitude loading. All tests showed a relatively long crack propagation phase after first cracks had appeared, calling for a reasonable failure criterion. For the numerical analysis, the structural hot-spot stress as well as the effective notch stress approach have been applied. The latter allows the consideration of the weld shape which could partly explain differences in the observed and calculated failure behaviour. Another factor is the distribution of welding-induced residual stresses, which obviously affected the failure behaviour in the web frame corner as well. Insofar the investigations give a good insight into the strength behaviour of complex welded structures and into current problems and opportunities offered by numerical analyses.     

Overseas trade vis-a-vis overseas shipping: Growth and performance in India (1999–2009)

Maritime trade has been and even continues to account for about a lion's share of India's total cargo volumes. Despite the growth of multimodal transport (by land, water and air), shipping still continues to be the major mode of transport in the bulk carriage of country's overseas trade. In view of this vital role of shipping, in the first four decades of independence, under the initiative of planned development and active government support, India's shipping and port sector saw dramatic growth in their performance to build adequate national fleet, in keeping up with the transport of overseas cargo. However, the onset of economic liberalization in 1991 has given rise to many new dimensions in the development of the shipping and port sector of the country with a significant redefinition of shipping and port services, in response to the new global trend patterns. For instance, it has also established the new era of containerization in the mode of cargo delivery from the dominance of the era of bulk and break-bulk trade during the decade of sixties and seventies. Moreover, as global competition increases, in response to this emerging trade patterns within this country, India's volume of traffic growth also increases manifold. So, India's shipping and port sectors need, significantly, to build up and furnish their capacity by increasing the frequency of this mode of transport i.e. the growth of the national overseas fleet to meet this surging demand. This paper, therefore, have focused on this role of shipping in such rising overseas trade, with a view to examine the shipping performance (the growth of overseas fleet) in response to the growing overseas trade at all ports of India during the period (1999–2000 to 2008–2009), in terms of both a mathematical model and a graphical representation. Finally, it concludes that the absolute overseas trade, being highly import dependent, have led to a more or less stagnant performance in overseas shipping, owing to the lack of the adequate growth of absolute overseas exports during this period.     

Liner shipping service optimisation with reefer containers capacity: an application to northern Europe–South America trade

Increasing the number of vessels in a container liner service while reducing speeds, known as slow steaming strategy, has been a short-term response since 2008 to the challenges of over-capacity and the rise in bunker prices faced by shipping lines. This strategy, which reduces the fuel cost per voyage but increases the operating costs as more vessels are added to the service, is difficult to sustain when the transit time significantly affects the transportation demand. This article proposes a model applied to this situation, referred to as a case of optimal speed under semi-elastic demand, for which containerised perishable product transport is sensitive to time, while frozen and dry products are not. It investigates if slow steaming is still optimal when working to maximise the total profit on the cycle. In order to demonstrate the proposed model, a numerical application is carried out for a direct Northern Europe to East Coast of South America container service, a route selected due to the high volume of fresh products. For this application, the speed that maximises the total profit with inelastic and semi-elastic demand is then estimated for several bunker fuel prices.     

Dealing with uncertainty and volatility in the port industry network: social and instrumental antecedents of “clique” survival

The recent proliferation of inter-firm collaborative linkages within the container port industry is progressively shaping a complex architecture of voluntary ties among terminal operators, i.e. an inter-organizational network. Within the overall industry network, some stable groups of densely interconnected firms emerge suggesting the existence of “cliques” where firms repeatedly cooperate with each other and develop strong and durable ties. The growing pressure exerted by economic uncertainty and market volatility on clique stability stimulates a fruitful academic debate on clique survival and its determinants. The present contribution investigates social and instrumental antecedents of clique survival, focusing on equity joint ventures engaged by terminal operators in a 10-year time frame (2002–2011). For this purpose, this study introduces a longitudinal network analysis of inter-firm relationships. Research hypotheses are tested performing binomial logistic regression analysis. In line with network theory assumptions, the outcomes corroborate the explanatory role of a number of social (i.e., cultural similarity and organizational mismatch) and instrumental (i.e., the presence of core firms within the clique and clique equality) antecedents in the survival of cliques. The results, indeed, bring valuable implications for both academics and practitioners.     

Return lead–lag and volatility transmission in shipping freight markets

This study investigates the return lead–lag and volatility transmission between dry bulk shipping and container shipping freight markets over the period before, during and after the 2008 financial tsunami. Both cointegration analysis and the Granger causality test are applied to explore the lead–lag relationship between the Baltic dry index (BDI) and the China containerized freight index (CCFI). Besides, in the study we employed GARCH–BEKK model, which allows for transmission in freight volatility. On the whole, the empirical results show that the BDI reflects the economic climate earlier than the CCFI during the financial tsunami, whereas the CCFI leads the BDI after the financial tsunami. The price formation hypothesis could well explain the relationship. Moreover, volatility spillovers are found in most subperiods. The dynamics of the conditional volatilities differ, but causality links in the variance are found to be strong and bidirectional in normal periods, and unidirectional during the financial tsunami. Therefore, the occurrence of the financial tsunami could be regarded as an interference factor.     

A numerical study of nonlinear wave interaction in regular and irregular seas: irrotational Green–Naghdi model

The irrotational Green–Naghdi model for nonlinear wave propagation in deep water is developed to simulate the irregular sea surface of a given directional wave spectrum. The model is derived from Hamilton's principle with a depthwise approximation to the flow field. The nonlinear boundary conditions are exactly satisfied on the actual free surface, and the continuity equation is satisfied exactly within the fluid domain. The ‘level’ of approximation in the depthwise direction is optimally chosen to simulate a given wave spectrum accurately with minimum computational effort. Several numerical techniques also are introduced to cut the computational cost further. Numerical results for two-dimensional nonlinear waves are presented.