Risk assessment framework for exposure of cargo and ports to natural hazards and climate extremes

There is an increase in risks and catastrophic losses in maritime transport including ports and cargo. Significant losses have been associated with large scale natural hazards, such as earthquakes, tsunami, cyclones, and other extreme weather events. This paper identifies the main gaps in understanding maritime risks in transportation research. The gaps are attributed to insufficient empirical work available from the maritime transport and logistics research community to guide multi-risk and natural hazards impact assessment on seaport and cargo. In addition, disaster studies communities have barely made adequate efforts to understand and assess port and cargo risks arising from multi-hazards and disaster events. This paper examines existing conceptual frameworks concerning exposure and risk assessments of natural catastrophe’s impacts. Furthermore, the paper identifies trends and gaps in risk assessment frameworks in the field of disaster studies that can be beneficial for maritime risk research. The authors propose a new risk assessment framework that can guide future research and multi-hazard risk assessment processes at different scales of maritime risks.     

An interpretation of inter-container port relationships from the demand perspective

Container ports serve as important conduits to facilitate the efficient flow of containerized cargo. As part of value-driven chain systems that intersect between hinterlands, efficiency gains that are generated within the container port will have a direct impact on the competitive advantage of its users and affect the economic potential of both the origin and destination hinterlands. As such, the paper proposes the usage of indifference analysis propounded in microeconomic theory as a useful means to examine inter-container port competition and complementarity. The framework presented can also be combined with Porter's 'Diamond' model in order for inter-container port demand relationships to be quantified, measured and analysed in an holistic manner. Apart from analysing inter-port relationships from the standpoint of container ports, the framework can also be used to analyse inter-port relationships from the perspective of other key players in the value-driven chain system and modified accordingly to incorporate various indicators that are deemed to be relevant to these parties.     

Daily Maersk’s impacts on shipper’s supply chain inventories and implications for the liner shipping industry

The liner shipping industry has long been characterized by a weekly sailing frequency and schedule unreliability. This research is motivated by the launch of the revolutionary “Daily Maersk” service in late 2011, which introduced daily departures and “absolute reliability” in the Asia–North Europe trade lane. This article analyzes Daily Maersk’s impacts on a shipper’s supply chain inventories and profound implications for the liner shipping industry as a game changer. The quantitative analyses show that the impact of more frequent sailings is most significant on a shipper’s cycle stock, while improving schedule reliability substantially reduces safety stock and pipeline stock. Daily Maersk is most valuable for products that have high value density, high inventory holding cost ratio, low demand variability, and high service level (SL) requirement. These findings imply that the trend of liner alliance/merger/acquisition is likely to continue or even accelerate as shipping lines consolidate fleet capacity to offer more frequent sailings. Rival carriers may step up their involvement in terminal operations to improve schedule reliability. They also need to rethink about their SL targets and clearly define their preferred customer segments.     

Scenario analysis for supply chain integration in container shipping

Competition in the business world nowadays is largely between supply chains, rather than individual players only. The same situation exists in container shipping. The study looks into container shipping from an integrated perspective and investigates the nature and level of supply chain integration in container shipping. Based on empirical examinations of the world's top 30 container shipping lines, a scenario analysis is conducted. The paper aims to present the scenario analysis for examining supply chain integration in container shipping. It also aims to formulate strategic recommendations for liners to create and sustain competitive advantage. The scenario analysis is designed to allow more complete consideration of alternative possible outcomes and their implications on the research topic. It involves an evaluation of past and present events and provides a plausible discussion of what might occur in the future. It depicts four scenarios of supply chain integration in container shipping, namely, low integration, partner-focused integration, activity-focused integration and high integration. On the whole, research findings suggest that market situations favour those scenarios representing higher level of supply chain integration. Importantly, with reference to the scenario analysis, shipping lines should position themselves in an appropriate scenario and formulate strategic plans accordingly.     

Disruption risks and mitigation strategies: an analysis of Asian ports

The critical nature of a seaport is a connection point. In addition to the effect on port operations, a port disruption will be a strain on trade flows and the various parties concerned. Climate change, oil spill, security, social and political instability are increasing concerns over the years which would lead to higher risks. With significant growing trade volume in Asia, there is a pressing need for comprehensive studies to prepare ports for disruptions. This paper aims to analyse and categorise the disruptions that have occurred in Asian ports and estimate the likelihood of recurrence based on the data since the year 1900. Results reveal a rising trend of disruptive events. Natural disasters and labour strikes are the two main causes of port disruptions, while natural disasters lead to the highest severity in terms of cargo tons affected. Mitigation strategies proposed in terms of both preventive and reactive measures are specifically designed to reduce the likelihood and severity of the various types of port disruptions. The paper provides recommendations on risk mitigation for relevant parties.     

Structure, conduct and performance on the major liner shipping routes 1

Market concentration on the major container shipping routes has the potential to reduce contestability, impede effective competition and, as a consequence, inhibit the positive relationship between trade and economic growth. This development could also hamper the ability of economic regions to realize their respective competitive and comparative advantages. Within this context, the structure-conduct-performance (SCP) framework is used to analyse liner shipping dynamics in the transpacific, Europe-Far East and transatlantic trade routes. The analysis finds no conclusive evidence that either the increased concentration of slot capacity or the attempts by shipping lines to boost potential slot capacity (mainly through collaborative arrangements) lead to improved financial performance. The paper concludes that, despite high and increasing concentration among carriers on each of the trade routes analysed, these markets remain contestable.     

Structure,conduct and performance on the major liner shipping routes 1

Market concentration on the major container shipping routes has the potential to reduce contestability, impede effective competition and, as a consequence, inhibit the positive relationship between trade and economic growth. This development could also hamper the ability of economic regions to realize their respective competitive and comparative advantages. Within this context, the structure-conduct-performance (SCP) framework is used to analyse liner shipping dynamics in the transpacific, Europe–Far East and transatlantic trade routes. The analysis finds no conclusive evidence that either the increased concentration of slot capacity or the attempts by shipping lines to boost potential slot capacity (mainly through collaborative arrangements) lead to improved financial performance. The paper concludes that, despite high and increasing concentration among carriers on each of the trade routes analysed, these markets remain contestable.     

An interpretation of inter-container port relationships from the demand perspective

Container ports serve as important conduits to facilitate the efficient flow of containerized cargo. As part of value-driven chain systems that intersect between hinterlands, efficiency gains that are generated within the container port will have a direct impact on the competitive advantage of its users and affect the economic potential of both the origin and destination hinterlands. As such, the paper proposes the usage of indifference analysis propounded in microeconomic theory as a useful means to examine inter-container port competition and complementarity. The framework presented can also be combined with Porter's ‘Diamond’ model in order for inter-container port demand relationships to be quantified, measured and analysed in an holistic manner. Apart from analysing inter-port relationships from the standpoint of container ports, the framework can also be used to analyse inter-port relationships from the perspective of other key players in the value-driven chain system and modified accordingly to incorporate various indicators that are deemed to be relevant to these parties.