Dynamic Emission Reduction Strategy for Shipping Company Considering Shipper's Cancellation of Cabin Space

As a major carbon emitting industry, the shipping industry urgently needs to actively reduce emissions. This article introduces parameters such as the shipper's low-carbon preference coefficient, cabin cancellation rate, and compensation rate, considering the shipper's low-carbon preference and cabin cancellation behavior. Based on the state changes of shipping emission reduction, an optimal control method is used to construct a dynamic decision-making model for shipping companies to reduce emissions. The optimal emission reduction effort of shipping companies is solved to clarify the optimal dynamic trajectory changes of shipping emission reduction, shipping volume, and shipping companies' expected discounted profits. The impact of shipper's low-carbon preference and cabin cancellation on shipping companies' emission reduction operation strategies is also revealed. An important finding is that the cancellation of cargo space by shippers will reduce the enthusiasm of shipping companies to reduce emissions, while the increase in shippers' low-carbon preference coefficient can help improve the enthusiasm of shipping companies to reduce emissions and increase shipping emissions. Moreover, the dynamic emission reduction operation strategies of shipping companies will dynamically change over time. Finally, the effectiveness of the model was validated through numerical analysis

Strategic Management in the Function of Adjustment of Modern Shipping Companies to the Market

Under the influence of the global economic crisis, many shipping companies have been forced to sell their old and poorly prospective vessels and change their business strategy in order to survive on the market. The purpose of this scientific paper is to present a change in business strategy within shipping companies aimed at adapting to current needs of the trade market. The analysis of the role and features of strategic management in business operation of modern shipping companies is carried out in this paper with the aim of identifying and analysing those factors that affect the creation of business strategies and the need of shipping companies to adapt to the market. In the empirical part, business strategy of the largest Croatian shipping company, Tankerska plovidba d.d. (Plc.) of Zadar, has been explored and analysed, along with that of Stena Ltd., one of the largest global shipping companies, which represents a business sphere created through a multiple merger of shipping companies into one, with the purpose of increasing competitiveness on the market

A multi-stage approach for empty container repositioning under coordination among linear carriers

This paper studies the empty container repositioning (ECR) problem considering the exchange of slots and empty containers among liner shipping companies. It is common for an individual shipping company to seek an optimal solution for ECR and cargo routing to maximize its own benefits. To achieve cooperation among shipping companies, a multi-stage solution strategy is proposed. With the inverse optimization technique, the guide leasing prices of slots and empty containers among shipping companies are derived considering the schedule of vessels and cargo routing. Based on the guide leasing price, a cooperative model is formulated to minimize the total cost, which includes the transportation cost for laden containers, the inventory holding cost, the container leasing cost, and the repositioning cost. All the involved shipping companies are expected to follow the best solution of ECR and cargo routing to achieve a cooperative and stable optimum. A real-world shipping network operated by three liner shipping companies is used as a case study with promising numerical results

Green shipping networks as drivers of decarbonization in offshore shipping companies

Within the next 30 years, shipping companies must find their zero-emissions route. However, there is no consensus on which technologies and fuels are the most appropriate to decarbonize shipping. Shipping companies are now navigating the flows of trends and new technologies and fuels. At the same time, the “cluster trend” raises expectations that “green networks,” “green clusters” and “cleantech clusters” will aid sustainability transitions. This qualitative multiple case study of three Norwegian offshore shipping companies analyzes the drivers that shape the companies’ strategies to reduce greenhouse gas emissions, with particular focus on how the strategies are impacted by membership in green shipping networks. Process tracing is used to track the case companies’ approaches to emissions reduction from 2008 to 2020, the main drivers of emissions reduction, and whether changes in strategy are linked to network membership. This study finds that the main drivers have been initiatives by internal key persons, participation in voluntary programs, mandatory regulations, and customer demand. The analysis shows no major shifts in strategy after joining a green shipping network; however, it does show two ways that network membership may impact the way shipping companies work with emissions reduction. First, membership can lead to adjustments and smaller changes as shipping companies collect information about new trends and technologies. Second, one-on-one guidance and support for preparing funding applications from network administrations may lead to the adoption of zero-emissions technology or fuels.publishedVersio

Polar seaways? maritime transport in the Arctic : an analysis of shipowners' intentions II

Climate change in the Arctic is leading to the fast recession of the sea ice extent in the summer. This evolution leads several observers, scientists, media and government officials, to consider the possibility of developing new shipping routes along Arctic routes, as these routes are much shorter between Europe and Asia. The literature displays a strong interest for these potential shipping routes while the media often assume shipping companies nurture a sustained attraction for Arctic routes. This paper tackles with this idea and examines to what extent shipping companies, the ultimate economic agents, are really interested in Arctic shipping routes. The image the research portrayed is that only a minority of shipping companies are indeed interested, and those that are interested stress the destinational dimension of Arctic shipping, not transit shippin

Politic of Taxation to Promote National Competitiveness of Shipping Industry in Indonesia: Quo Vadis

Shipping industries are important pillars to develop Indonesia into a global maritime axis. However, the current tax policies formulated by the government for shipping industry show lack of support to the national shipping companies. The formulated policies tend to benefit international shipping companies more than national shipping companies. Some of these policies are among others: a) no VAT levies for use of containers by international shipping companies, b) non-equal VAT treatment on port services, and c) presumptive scheduler taxation rates based on old Income Tax regime which has relatively high income tax rates. The main objective of this research is to evaluate tax policy on the shipping industries in Indonesia. In addition, this research also does a comparative analysis aiming to increase the productivity of national shipping companies – using South Korea tax policy as a comparison. The final goal of this research is to provide a policy outline for the government in formulating or reconstructing tax policies aimed to develop national shipping industry. State of the art of this research is to make the taxation politic as a new paradigm in analyzing problems. The benefit of this paradigm is in its ability to dissect the root causes on taxation substantial aspects, because actually a policy is a political product. The analysis results show absence of political platform (which should be clear and unequivocal) in the current taxation policies on shipping industry – which tend to be reactively constructed, is not supportive to the development of, or even in some instances discriminatory against, national shipping industries. It is recommended that the government immediately formulate the politic of taxation which is favoring national shipping industry. And, distorting taxation policy need to be revised in order not to impede competitiveness in the shipping industry.     Keywords: shipping, maritime, tax policy, value added tax, national competitivenes

Influence of Organizational Resources on Strategy Execution in Shipping Companies in Kenya

Current research shows that more attention is given to strategy development but less to strategy execution. This study therefore sought to bridge this pertinent gap in literature by establishing the influence of organization resources on strategy execution in shipping companies in Kenya. The study reviewed relevant literature and theoretical underpinnings to identify the determinants of strategy execution. The study adopted a cross-sectional survey research design. The population of the research consisted of the 38 shipping companies in Kenya as at 2015. The unit of analysis were the employees in charge of strategic management matters in the shipping companies in Kenya. The study adopted purposive sampling and used primary data which was gathered using structured questionnaires which were pre-tested before being administered. The respondents comprised of the chief executive officer, chief operations officer, chief finance officer, chief information officer and the business development officer who were purposely selected due to their level involvement in strategy execution matters. Therefore the target population was 190 officers from the shipping companies in Kenya. Statistical Package for Social Sciences was used in data analysis where both descriptive and inferential statistics were applied. Regression results indicated that organization resources and organization culture was statistically significant in explaining strategy execution in shipping companies in Kenya. From the study, it is possible to conclude that the shipping companies in Kenya are not fully putting into maximum use the resources available in order to execute their strategies. The study recommends that the shipping companies should support all relevant strategy execution initiatives in their companies and the managers should efficiently use any combination of the available resources in order to execute strategy. Keywords:  Organization Resources, Shipping, Strategy Execution Practices, Strategy

Liner Companies’ Container Shipping Efficiency Using Data Envelopment Analysis

The liner shipping industry moves products around the world. There are thousands of container ships circling the globe at all times, making the global economy possible. Liner shipping companies ship anything that can fit into a cargo container. The standard containers measure 20 feet in length by 8 feet in width or 40 feet in length by 8 feet in width. According to Alphaliner (2015), there are at least 100 linear shipping companies in the world. This study will evaluate the efficiency of different-sized liner shipping companies using Data Envelopment Analysis: it will consider operational aspects and will only include revenue as a financial output. The study predicts that companies with the best fleet utilization will have the highest efficiency scores even when their overall revenue may be less than other companies

Liberalization and Deregulation in the Domestic Shipping Industry: Effects on Competition and Market Structure

The author, at the outset of her study on shipping transport, rightly states the importance of this industry in an archipelagic country. However, the industry remains inefficient, despite policy reforms enacted in the 1990s which aimed at liberalizing and deregulating the industry. Though these reforms did improve services through increased competition and the entry of new service providers, this occurs on only a fraction of routes and the largest handful of companies effectively dominate the bigger part of the market, and, in the process, show indications of cartel behavior. The author stresses that the next steps for reform include preparing local shipping firms for the global competition that full liberalization will bring, and which stands to yield hoped-for efficiencies and improvements.competition, liberalization, shipping industry, deregulation, interisland liner shipping industry

Liberalization and Deregulation in the Domestic Shipping Industry: Effects on Competition and Market Structure

The author, at the outset of her study on shipping transport, rightly states the importance of this industry in an archipelagic country. However, the industry remains inefficient, despite policy reforms enacted in the 1990s which aimed at liberalizing and deregulating the industry. Though these reforms did improve services through increased competition and the entry of new service providers, this occurs on only a fraction of routes and the largest handful of companies effectively dominate the bigger part of the market, and, in the process, show indications of cartel behavior. The author stresses that the next steps for reform include preparing local shipping firms for the global competition that full liberalization will bring, and which stands to yield hoped-for efficiencies and improvements.competition, liberalization, shipping industry, deregulation, interisland liner shipping industry