Maritime Challenges in Crisis Times

The world today is extremely well connected and heavily dependent on maritime trade. The shipping market is the result of global production and as such is subject to cyclical changes, incidents and expansions. As part of such a market, maritime transport is vulnerable to external factors, such as international trade, political situations, financial trends, technological developments and legislation, which may directly or indirectly affect demand in the sector or similar. The negative effects of these changes are reflected in lower freight rates, lower daily rental prices and reduced prices of new or used boats. Maritime crisis have significantly affected income, wages, number of employees and similar. In this regard, the crisis management process plays a key role in reorienting strategies and structural reorganization. In order to ensure the development of the maritime sector, it is necessary to constantly invest in the growth of transport capacities, deepen ports, build new terminals and modernize existing ones. It also requires the advanced transport development and application, technological, technical, economic, organizational and commercial measures, in order to adapt to the environment. The efficiency of the maritime sector generally strengthens the country’s international and political position, as its activities are linked to international economic cooperation, attracting foreign investment, membership in international organizations and other key factors

Smart Steaming: A New Flexible Paradigm for Synchromodal Logistics

Slow steaming, i.e., the possibility to ship vessels at a significantly slower speed than their nominal one, has been widely studied and implemented to improve the sustainability of long-haul supply chains. However, to create an efficient symbiosis with the paradigm of synchromodality, an evolution of slow steaming called smart steaming is introduced. Smart steaming is about defining a medium speed execution of shipping movements and the real-time adjustment (acceleration and deceleration) of traveling speeds to pursue the entire logistic system’s overall efficiency and sustainability. For instance, congestion in handling facilities (intermodal hubs, ports, and rail stations) is often caused by the common wish to arrive as soon as possible. Therefore, smart steaming would help avoid bottlenecks, allowing better synchronization and decreasing waiting time at ports or handling facilities. This work aims to discuss the strict relationships between smart steaming and synchromodality and show the potential impact of moving from slow steaming to smart steaming in terms of sustainability and efficiency. Moreover, we will propose an analysis considering the pros, cons, opportunities, and risks of managing operations under this new policy

UNPLUGGED CITY Escaping from Global Networks and Flows Trap? New Geographies of Logistics :: Urban and Regional Implications

The urban and regional influence of contemporary passengers, goods and information traffic within the new global economy based on knowledge and logistics, and the physical structures that shape the networks (harbours, airports, train stations, motorways) are assumed as capitally important. Nevertheless, so far, the impact of these dynamics is much more attached to hierarchical processes of socio-spatial fragmentation-segmentation-polarization rather than balanced re-distributive systems. Global connectivity has as much strengths as threats, and the integration within the new production, consumption and distribution geographies generates as much opportunities as irreversible mutations. Unplugged City is presented as an incursion on connectivity and accessibility, exploring the strengths and threats derived from the management of logistics and freight transport flows within the frame of the so-called “catch-up†economy. The Trans-European Transport Network Plan (TEN-T) will be on focus as the main policy-making framework behind the new geographical transformation in Europe. The importance of the exponential growing freight transport and logistic sector has been exposed as a key factor to understand the bases of current globalisation. The sharp changes generated by the dropping of transport cost in patterns of production-consumption-distribution geographies have to be contrasted with deep transformations of labour market, linkages between transport and industrial location and new network models. What is close is just what is cheap. Distances nowadays are no measured in kilometres or hours but in Euros, imposing a new logic for the global geographic structure. Regions with better access to locations of input materials and markets are assumed to be more productive, more competitive and hence more successful than more peripheral and isolated regions. But this hypothesis has to be urgently reformulated, contrasting transport policies with quantitative research and the appraisal of real socio-economic impact of the new transport geographies. The assumed idea of connectivity as pure benefiting will be critically discussed as a much complex phenomena. Corridors are fostering the survival of core regional centres meanwhile a growing regional imbalance is monitored; regions that still have to deal with environmental, budgetary and indirect issues derived from the management of these flows.

Green Perspective of General Container Service vs. Dedicated Container Service from Asia to Northern Adriatic

Intermodal transport is often touted as an environmentally sustainable mode of transport, especially when considering its share of the total supply chain. This article addresses the topical and sensitive issue of supply chain assessment in terms of the carbon footprint and energy efficiency of external transportation from the point of production to the customer. The long transportation distances overseas and the variety of operational sea container services result in significant variations in delivery times from Asian markets. In addition, disruptive events such as the Covid-19 pandemic and the Ukraine conflict have led to longer transportation times and lower reliability of various maritime services. The study examines the variety of existing direct container services from Asia to the Northern Adriatic. In addition to the two direct container services already established, another dedicated container service has been established primarily to serve a large retail chain in the European market. The “newly established” container service is characterised by its limited port coverage and the use of relatively small container ships with a maximum capacity of 5.500 TEU. The comparisons between the services highlight the differences in transport time and greenhouse gas (GHG) emissions, as well as the energy efficiency of container transport. The study empirically confirms the widespread assumption that larger and modern container ships offer environmental benefits, provided that cargo space is used efficiently and ship operators adopt slow steaming. However, the study also highlights the significant differences in GHG emissions between different services and emphasises the need for more comprehensive information and awareness among cargo owners to design sustainable supply chains

GLOBAL CONTAINER SHIPPING OPERATORS’ STRATEGIES AND THEIR IMPACT ON LOGISTICS SUPPLY CHAINS

The world economic and financial crisis that seriously hit the global economy and especially its trade and transport sectors in the years 2008-2009 also affected with significant force the global maritime container transport. This strategic maritime transport subsector is regarded as a driving force of smooth development of the global logistics supply chains and the backbone accelerating globalization processes. However, since 2010 effective demand and potential supply on the global container freight market are in constant state of disequilibrium, caused to a large extend by wrong tonnage investment strategies of container operators. Lack of ability to adapt the supply side to changes occurring on the demand side of the container market has brought numerous serious financial and economic consequences which not only affected the global container shipping operators but also hit other parties involved in the logistics supply chains spread within the global logistics space created in the contemporary global economy.Purpose: The main objective of this paper is to evaluate the dynamics of global maritime container market, especially its demand side which fluctuates vigorously, and assess the short and medium term strategies applied by the powerful shipping operators in terms of their multi-channel impact on the other parties of the global intermodal supply chain and the global logistics system as a whole.Methodology: The traditional method of maritime freight analysis was applied based on container freight and charter indices, such as SCFI or HFI. They reflect the amplitude of freight rate per TEU fluctuations in a certain period of time (e.g. quarter, week, etc.) which is congruent with the effective demand changes confronted with the existing potential supply. Growth of tonnage capacity, determined by the global container shipping operators’ strategies aimed for further development and better utilization of the existing transport potential of container fleet acting on the very competitive global freight market, has been assessed in terms of logistics efficiency and its effects have been estimated within the global value chain.Findings: The obtained results indicate that: 1/ global maritime container transport market is still significantly unbalanced and subject to high dynamics of demand fluctuations, and consequently freight rates, 2/ applied strategies of maritime global container operators in the operational and investment area fail to bring intended results, leading to strong capital horizontal integration in the sector of maritime container transport and vertical integration within the global logistic supply chains, 3/ the situation destabilizes the operations of global supply chains and consequently the global TSL sector, preventing forwarders and shippers from taking rational decisions on a medium and short term basis, 4/ this relatively long-standing situation (from 2010) shakes the foundations of transport and logistics order worldwide, 5/ the beneficiary of this situation on the market of maritime container transport and strategic decisions of global container operators is global economy as well as consumers of goods imported by sea in containers.Originality/value: The approach proposed by the author regarding the analysis of the effectiveness of freight market operations in the context of developed and implemented operational and investment strategies of maritime container operators with an attempt to assess the effects of such decisions within global logistic supply chains has not been the subject of research until now. The obtained initial results which require further detailed analysis, provide significant values, both theoretical (enrich the market theory) and practical (as regards taking rational decisions and effective management of global supply chain)

Economic feasibility of the Northern Sea Route container shipping development

Masteroppgave i bedriftsøkonomi - Høgskolen i Bodø, 2010From year to year the traffic of goods between Europe and Asia rises, the need for a new route for transportation becomes more and more obvious. The new route should be competitive to the others and has its own competitive advantage. Nowadays an extra day of transportation can increase costs dramatically for trade companies, so it is necessary to develop a route, which have a short transportation period as the main advantage. The Northern Sea Route is the challenging candidate. The research corresponds studying of major advantages and disadvantages of international transportation through the NSR. The case study, provided in the research, has a target to estimate costs of establishing a permanent transportation line along the NSR between East and West; calculation of the operating costs for the line and the comparison to the route through Suez Canal. The main aim of the research is to find out, if it is feasible for shippers to use the NSR for transit container shipping. The empirical part of the research is devoted to the collection data about the current state of the NSR development, interested parties of this development and the legal framework for NSR use. The data gathered from different sources, which include interviews with representatives of companies and organizations, interested in further NSR development, official guidelines and researches, based on similar topics. Analysis and further discussion revealed that the NSR can be competitive with comparison to the route through Suez Canal in the nearest future, if the work on solving current problems is successfully performed. During the research it was concluded, that the use of the NSR is not feasible nowadays, but the changes in legal framework, fees and global climate can bring the condition of the NSR closer to competitive level

An Empirical Study of Corruption in Ports

We generate an original dataset on bribe payments at two competing ports in Southern Africa that allows us to take an unusually close look at the relationship between bureaucratic organization, bribe-setting behavior and the costs corruption imposes on users of public services. We find that the way bureaucracies are organized can generate different opportunities for bureaucrats to engage in "collusive" or "coercive" types of corruption. We then observe how firms adjust their shipping and sourcing strategies in response to different types of corruption. "Collusive" corruption is cost-reducing for firms, increasing usage of the corrupt port, while "coercive" corruption is cost-increasing, reducing demand for port services. Our findings therefore suggest that firms respond to the opportunities and challenges created by different types of corruption, organizing production in a way that increases or decreases demand for the public service.Corruption; Transport; Trade Costs; Firm Behavior

The Impacts Of The War On Terrorism On Maritime Shipping

The terrorist acts that destroyed the World Trade Center and part of the Pentagon have, of course, changed much of the world in many ways since September 2001. Among those effects has been a pronounced and noticeable shift in airport and aircraft security.  Much less noticeable to most Americans has been the impact of added security and changed priorities on maritime transportation systems.  But maritime security actually has a far greater impact on commerce than does air security because most cargo moves worldwide via commercial ocean-going vessels.  Security requirements and wartime priorities are compelling the world’s governments to more closely monitor and inspect all vessels and cargo entering their nation’s ports.  The US Coast Guard’s inspections are forcing tremendous delays upon entering vessels.  The consequences of losing millions of dollars daily both for shipping companies and cargo interests create severe economic and logistical problems that impact all transportation modes.  The new US embargo on 24 small countries may force them into bankruptcy unless they comply with US requests to end terrorism.  These countries depend on exports and imports for a large portion of their GDP, which will be dramatically reduced unless they join the war against terrorism. This paper examines five impacts on the US and world shipping industry caused by the war on terrorism--those on:  1) vessel and port security; 2) transportation- and trade-related communications; 3) trade levels; 4) marine insurance; and 5) maritime and related freight rates.  Then the authors draw some conclusions regarding possibilities of reflagging of ships and effects on the status of the US merchant marine industry

Global and International Logistics

This book contains 10 reviewed papers published as a Special Issue “Global and International Logistics” in the journal Sustainability, edited by Prof. Dr. Ryuichi Shibasaki, Prof. Dr. Daisuke Watanabe, and Dr. Tomoya Kawasaki. The topics of the papers contain the impact of logistics development under the China’s Belt and Road initiative (BRI) by using the improved gravity model, strategies against barriers to the BRI from a logistics and supply chain management perspective, the dynamic interaction between international logistics, and cross-border e-commerce trade, the effect of China’s restrictive programs on the international trade of waste products, the empty container repositioning problem of shipping companies with foldable containers, port capacity and connectivity improvement in the hub and feeder network in Indonesia, GHG emission scenarios for the maritime shipping sector using system dynamics, incorporating a shipping and shipbuilding market model, the emission inventory and bunker consumption from a LNG fleet from an automatic identification system database, the factors that can help select between land transport and maritime shipping in long-distance inter-regional cross-border transport, and container transport simulations in Myanmar with the global logistics intermodal network assignment model including both maritime shipping and land transport in the land-based Southeast Asia region. Some papers are related to the 8th International Conference on Transportation and Logistics (T-LOG 2020) which was held online on 6–7 September 2020 hosted by Universitas Internasional Semen Indonesia