The performance effect of innovation in shipping companies

The aim of this study is to investigate how innovation contributes to company performance in Norwegian shipping and to extend our knowledge concerning what organizational and inter-organizational factors influence innovation in shipping firms. The study is based on a survey of 46 Norwegian shipping companies. We find that innovation contributes to firm performance. We also find that a conscious strategy, strategy involvement, external relationships, especially market relationships, and productivity slack have a significant positive effect on the degree of innovation. The results are dependent upon the companies' degree of differentiation and the type of innovation.     

Piracy off West Africa from 2010 to 2014: an analysis

Piracy is one of the most frequent maritime threats. However, despite the importance of how maritime piracy is to be reduced, it is substantially less investigated than maritime safety. Piracy off Somalia is the most investigated case of piracy, but those results are not necessarily generalizable. Piracy off West Africa has been shown to be more diverse, successful and dangerous. This study investigates and analyses piracy off West Africa with the aim to understand how different operations and security measures affect the consequences of piracy. This study has identified several different intents and shows that most attacks are relatively close to shore and correspond to areas of high ship density. Attacks with the intent of theft at night-time are generally performed close to shore, and more complicated attacks against ships under way are more common during daytime and farther from shore. Five types of measures are found to have high effectiveness if the attack is detected during approach; after boarding, only two measures have high effectiveness. Of the effective measures, it can be concluded that all but one are dependent on detecting the attack. Therefore, detecting the pirates is key but must be accompanied by a set of measures because no measure alone can protect a ship given the operational conditions off West Africa. The risks associated with piracy off West Africa are estimated to be of the same magnitude as the risks posed by Somali piracy at its peak.     

Some properties of international maritime statistics

This paper tests two fundamental hypotheses concerning international maritime statistics. The first one deals with the question of stationary of the maritime market statistics. The second hypothesis tested is the assumption that the international maritime statistical time series are not distributed according to a normal of Guassian probability law, but rather belong to the same family of distributions with distinctly different critical parameters. Through well documented statistical methods, the paper concludes that the international freight rates observed on a day to day basis are generated by a random walk process. The paper finds that the shipping industry's conventioal wisdom is essentially correct. 'Last done' is as good a forecast of tomorrow's freight rate as any other generated by more sophisticated forecasting methods. Furthermore, freight rates and secondhand tonnage prices fluctuate closely together. The freight rates are generated by stochastic processes fully described by the Paretian family of distributions. The critical parameters of these distribution, the characteristic exponents, are such that the risk conscious ship operator can indeed reduce his exposure to risk by securing a correct set of freight rate contracts.     

-statistic is the ratio between a normal (0,1) distributed variable and the square root of a centrally distributed chi-square variable divided by its expected value, i.e., its degree of freedom.

This paper evaluates empirically some very common theories of the freight rate generating process in the time charter markets. After a review of the most common assumptions made of the way time charter rates are set, the hypotheses are identified as follows: (a) the Zannetos Hypothesis, (b), the Lagged Zannetos Hypothesis, (c) the Koyck Lag Hypothesis, (d) the Rational Expectation Hypothesis, and (e) the Conventional Wisdom Hypothesis. These hypotheses are tested using statistical cointegration analysis that includes both an Augmented Dickey-Fuller (ADF), and a Johansen likelihood ratio test. Confronted with the data, hypotheses (a) and (b) are rejected outrightly. In the Koyck Lag case, the ADF statistic seem to confirm the hypothesis. A closer look at the numbers reveals that all of the impact on the time charter rates comes from the lagged dependent variable. Hence, the Koyck Lag Hypothesis is rejected. In the Rational Expectation case, the two tests conflicted. Based on the fact that the Rational Expectation Hypothesis includes the lagged dependent variable and that the Johansen test has been found to be a more robust test than the ADF test, the Rational Expectation Hypothesis is rejected. The fifth hypothesis is a reflection of the general bulk industry perception that the time charter rate is impacted by changes in the comparable spot rate and not much by the spot rate levels. In this case both the ADF and the Johansen test accepted the hypothesis for all markets. Thus, the paper concludes that the conventional market explanation of the time charter freight rate setting process is essentially correct-spot rate changes matter spot rate levels do not.     

Fixed‐route taxi system: route network design and fleet size minimization problems

This paper introduces the taxi route network design problem (TXRNDP) for a fixed‐route taxi service operating in Iran and, in similar form, in various other developing countries. The service operates fairly similar to regular transit services in that vehicles are only permitted to follow a certain predetermined route on the network. The service is provided with small size vehicles and main features are that vehicles only depart if full and that there are no intermediate boarding stops. In Iran the service attracts a high modal share but requires better coordination which is the main motivation for the present study. We develop a mathematical programming model to minimize the total travel time experienced by passengers while constraining the number of taxi lines, the trip transfer ratio and the length of taxi lines. A number of assumptions are introduced in order to allow finding an exact rather than heuristic solution. We further develop a linear programming solution to minimize the number of taxis required to serve the previously found fixed‐route taxi network. Results of a case study with the city of Zanjan, Iran, illustrate the resulting taxi flows and suggest the capability of the proposed model to reduce the total travel time, the total waiting time and the number of taxi lines compared to the current taxi operation. Copyright © 2016 John Wiley & Sons, Ltd.     

Some properties of international maritime statistics

This paper tests two fundamental hypotheses concerning international maritime statistics. The first one deals with the question of stationary of the maritime market statistics. The second hypothesis tested is the assumption that the international maritime statistical time series are not distributed according to a normal of Guassian probability law, but rather belong to the same family of distributions with distinctly different critical parameters. Through well documented statistical methods, the paper concludes that the international freight rates observed on a day to day basis are generated by a random walk process. The paper finds that the shipping industry's conventioal wisdom is essentially correct. ‘Last done’ is as good a forecast of tomorrow's freight rate as any other generated by more sophisticated forecasting methods. Furthermore, freight rates and secondhand tonnage prices fluctuate closely together. The freight rates are generated by stochastic processes fully described by the Paretian family of distributions. The critical parameters of these distribution, the characteristic exponents, are such that the risk conscious ship operator can indeed reduce his exposure to risk by securing a correct set of freight rate contracts.     

A process-centric ship design management framework

As the concept of concurrent engineering has emerged along with support for optimization techniques, lots of endeavors have been made to apply optimization techniques to real design problems for holistic decision-making. Even if the range of design problems to which optimization is applicable has been extended, most ship designs use an iterative and manual approach due to the difficulties of seamless integration of all related design activities. This paper proposes a process-centric management framework for the preliminary ship design process depending on these approaches. Requirements for the framework are generated based on the features of the ship design process first. The proposed framework consists of both process scheduling and process management parts. Each of these modules is divided into submodules, and the modules and their interactions are elaborated to reflect actual design practice. The designed framework is embodied within a workflow system and its usefulness examined through a pilot project.     

Regulating CO2 emissions of transportation in Europe: A CGE-analysis using market-based instruments

This paper analyzes the use of market-based emission regulation instruments to address the carbon dioxide emissions of transportation. Simulations with a static multi-region computable general equilibrium model show that including transportation into the European emission trading system is superior to a closed emission trading system for transportation or a tax-based approach. Furthermore, we show that exempting transportation from emission regulation is the most favorable approach in terms of welfare. This counterintuitive result is due to a large tax-interaction effect caused by high pre-existing fuel taxes in the transport sector.     

Environmental benefits analysis of electric vehicles in the Czech Republic

The article evaluates the environmental benefits of electric vehicles using well-to-wheel analysis in the Czech Republic. The power consumption per kilometer is determined from the combined cycle of the New European Driving Cycle. Using information from the integrated registry of polluters and mandatory disclosures of the CEZ company the specific harmful emissions production per 1 kW h of electricity is determined. The combination of electricity consumed and the production of harmful emissions per 1 kW h of electricity determine the indirect harmful emissions of an electric vehicle per kilometer. Computer simulation of the indirect production of harmful emissions is performed on the Mitsubishi MiEV engine, typical for an electric vehicle.