Optimizing shipping company operations using business process modelling

In order to identify the elements constituting quality in services, a business process modelling methodology has been applied in the case of a Greek liner shipping company. The company operations have been identified and analysed in order to assess the complete performance of service elements and thereafter identify how to match the service performance against the user requirements. A liner container service within Europe has to compete with the road transport which, in many cases, is an alternative to the sea transportation and not complementary to it. Thus, not only the ship has to be envisaged when aiming to improve quality in services but also the whole chain, namely port authorities, land transportation enterprises, subcontractors, agents, charterers and others. A set of potential improvements within this framework are thus suggested and time and cost (examined in a specific voyage scenario) are measured before and after the implementation of these measures. Very large time and cost savings are observed after the application of the technology improvements, allowing, in fact, the shipping company to even increase the number of round trips per year in the examined route. This indicates that very large benefits can be drawn by analysing and critically adjusting business processes in modern shipping companies.     

Port and terminal selection by deep-sea container operators

This paper deals with the importance of port choice and container terminal selection for deep-sea container carriers. The paper focuses on the research question: on what basis do deep-sea container operators select container ports (strategy) and container terminals (financial reasons) in the Hamburg–Le Havre range over others? In answering this research question, three dimensions are addressed in detail: the buying decision characteristics; port choice strategy; and terminal selection. The results show that strategic considerations at company level are important. For port choice the most important criteria from a carrier's perspective are: availability of hinterland connections; reasonable tariffs; and immediacy of consumers (large hinterland). In addition to these criteria, shipping lines attach great value to often neglected factors, such as feeder connectivity, environmental issues and the total portfolio of the port. The study reveals that port selection and terminal selection are not the same with terminal selection criteria mainly depending on: handling speed; handling costs; reliability; and hinterland connections. The analysis also brought forward that the decision making is different per container carrier, per trade and per port type, implying that a one size fits all approach is not relevant.     

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.     

On the nature and sorces of controversy in the economic analysis of the liner shipping industry†

The simulations performed show that demand for quality tankers has to increase by 30% for a two-tier tanker market to emerge. The two-tier freight structure will only last for 3–5 years due to contracting induced by higher freight rates. This means that OPA does not by itself result in higher freight rates for tankers that comply with the requirements. If Western Europe also closes their trades to substandard tankers, a two-tier market emerges and quality tankers obtain a premium. The paper presents a simulation model for international tanker markets. The non-linear complementary equilibrium model solves for a sequence of static equilibria in segmented tanker freight markets, shipbuilding and scrapping markets. Freight markets are segmented according to quality requirements for tankers. The model specifies three tanker classes and one—quality tankers—can operate both market segments.     

A combined tramp ship routing,fleet deployment,and network design problem

In this paper, a tramp ship routing model of fleet deployment in a hub-and-spoke network is presented. This model simultaneously determines the selection of hubs, the assignment of spokes to hubs, the deployment of feeder-containerships as well as containership routing between spokes and spokes, hubs and spokes, and hubs and hubs. Even though some parts have been studied, this complex combination of shipping problems has never been addressed. Because the problem is NP-hard, a genetic algorithm (GA) with local search is proposed. In the algorithm, a cut-off procedure is applied to fleet deployment in a sub-route strategy. A number of randomly generated problem instances are solved by both a mathematical program and the GA with local search. A simple but realistic heuristic algorithm is also developed. Both the GA with local search and the heuristic algorithm are used to solve a number of real case instances. A comparison of the results shows the efficiency of the GA with local search. The developed model can be used as a route-decision support tool for shipping companies that provide long-haul shipping services in a hub-and-spoke network.     

Wakes from Large High-Speed Ferries in Confined Coastal Waters: Management Approaches with Examples from New Zealand and Denmark

Large high-speed craft carrying passengers and vehicles produce wake waves that are different from both conventional vessels and smaller fast vessels. Wakes from these high-speed craft can cause environmental problems (such as beach change, ecological disturbance, and damage to structures and archaeological sites) and safety problems (for navigation and for users of the beach and nearshore) in confined waters. As a consequence of the higher speed, the vessel wakes also have a longer period than wakes caused by conventional ships and may lead to substantial wave action in shallow water environments. In both New Zealand and Denmark, issues relating to high-speed craft wakes were not addressed until after the vessels had begun operation, and complex coastal management issues with possibly broader application have had to be addressed. Emerging management strategies have involved regulation using speed and wave height criteria.     

Valuing Recreation and Amenities at San Diego County Beaches

Abstract

Policymakers and analysts concerned with coastal issues often need economic value information to evaluate policies that affect beach recreation. This paper presents economic values associated with beach recreation in San Diego County generated from a recreation demand model that explains a beach user's choice of which beach to visit. These include estimates of the economic values of a beach day, beach closures, and beach amenities.     

Characterization of Ship Traffic in Right Whale Critical Habitat

Collisions with ships are a significant threat to the endangered North Atlantic right whale. To reduce this threat, The National Oceanic and Atmospheric Administration's (NOAA) National Marine Fisheries Service (NMFS) and the U.S. Coast Guard (USCG) established the Mandatory Ship Reporting System (MSRS) in July 1999. Under this system, all commercial ships, 300 gross tons or greater, are required to report to a shore-based station when entering either of two areas surrounding designated critical habitat: one in waters off the northeastern United States and the other off the southeastern United States. Information reported to the system includes entry location, destination, intended route, and speed. Reporting ships receive an automated message indicating precautionary steps to be taken to avoid hitting whales. Ship tracks between sequential ship locations were estimated by using a geographic information system (GIS) and mapped to illustrate traffic patterns within the MSRS. In the northeast, 69% of all valid tracks transited right whale critical habitat areas. All but two southeastern tracks intersected critical habitat. “High-use” traffic corridors were identified within the system. The majority of ships (59%) traveled at speeds greater or equal to 14 kn, a reported speed at which large whales may be critically injured. This characterization provides a portrait of ship traffic in right whale aggregation areas that can be used to develop measures to reduce the threat of ship strikes to right whales.     

Spatial and Temporal Modeling of Beach Use: A Case Study of East Anglia,UK

As tourists are sensitive to weather conditions and changes to the environments they visit, it is likely that climate change will affect coastal recreation in the future. To understand these impacts, it is first important to quantify how visitor numbers are associated with beach characteristics and weather patterns. Using the East Anglian coastline, UK, as a case study, information on the spatial distribution of visitors recorded from aircraft flights is combined with beach characteristic data in a Geographical Information System. In addition, surveys are undertaken at two beaches to assess temporal variations in visitation. The study finds a diverse range of characteristics are associated with visitor numbers. These findings are evaluated alongside the anticipated effects of climate change and management policies. Although it is predicted that warmer weather will increase visitor numbers overall, sea-level rise may reduce numbers at wide sandy beaches, which are currently most preferred by tourists.