CONTAINER SHIPPING RISK MANAGEMENT: A CASE STUDY OF TAIWAN CONTAINER SHIPPING INDUSTRY

Whilst container shipping has become increasingly important over the past few decades due to its obvious advantages, container shipping companies have faced various risks from different sources in their operations. Systematic academic studies on this topic are few; and in light of this, this study aims to systematically explore and analyse the risks in container shipping operations and to examine the applicable risk mitigation strategies in a logistics perspective, including information flow, physical flow, and payment flow. This thesis uses Taiwan container shipping industry as a case study, and borrows four steps of risk management as the main method, which includes risk identification, risk analysis, risk mitigation strategies identification, and strategies evaluation. In order to ensure the analysis is inclusive and systematic, risk factors and risk mitigation strategies are identified through a related literature review and are validated through a set of interviews. Risk analysis is conducted through using questionnaires, and then through risk ranking, risk matrix, risk mapping, and P-I graph. Risk mitigation strategies are evaluated through classic AHP and fuzzy AHP analysis. A number of significant findings have been obtained. Firstly, 35 risk factors are identified and classified into three categories: risks associated with information flow, risks associated with physical flow, and risks associated with payment flow. After collecting and analysing the risk-factor survey, the results indicate that the risk associated with physical flow has the more significant impact on shipping companies’ operation. However, one risk factor associated with information flow, “shippers hiding cargo information”, has the most significant impact among the 35 risk factors. Secondly, 20 risk mitigation strategies are identified and classified into three categories: intra-organisational strategies, intra-channel strategies, and inter-channel strategies. After collecting the AHP survey and analysing through classic AHP and fuzzy AHP, the result indicates that “slot exchange, slot charter, joint fleet, ship charter with other container shipping companies” is the most important strategy. The main contributions of this thesis include: (1) based on the literature review, there have been no research on risk management in the context of container shipping operation from a broad logistics perspective, and this thesis is the first attempt to fill this research gap; (2) this thesis uses Taiwan shipping industry as a case study to apply the framework, which generates useful managerial insights; (3) the conceptual model of risk management developed in this thesis can be applied to container shipping operations in other countries and regions; (4) compared with several studies using secondary data, this thesis uses empirical data to conduct the risk analysis, and make the results more close to the reality situation in container shipping; (5) in terms of risk analysis, this thesis ranks the total 35 risk factors rather than only identify the most important one, this can be used to be generalised to the whole container shipping companies in Taiwan, or even to the whole world; (6) in terms of risk management, the previous studies usually analyse only the importance of strategies. However, this thesis analyses the results of AHP from three different angles: reducing financial loss, reducing reputation loss, and reducing safety and security incident related loss. This can provide different angles for the managers who are considering different aspects

An optimization model - preliminary selection of appropriate technology in wastewater treatment alternatives

This research is concerned with the use of techniques of system analysis / operations research in the selection of the optimal - or most appropriate - wastewater treatment techniques in any given situation. An extensive investigation of existing treatment system optimization models, applying techniques of linear programming, dynamic programming and non-linear mathematical programming, has been carried out. None of these existing models deals with the socio-cultural and environmental conditions but merely with the economy of treatment. In this work the more subjective or intangible factors are included in the proposed optimization model in which twenty parameters are identified. These parameters are considered to be most important in the selection of appropriate alternatives for treating municipal wastewater. They include technical, economic, environmental and socio-cultural factors. The model was developed to rank a definite number (n) of wastewater treatment alternatives (decision variables) by the evaluation of the twenty parameters [...continues]

The Analytic Network Process Applied in Supply Chain Decisions, in Ethics, and in World Peace

The Analytic Hierarchy/Network Process which was developed by Dr. Thomas Saaty “has revolutionized how we resolve complex decision problems” (INFORMS, 2008). The Analytic Network Process (ANP) is applied herein in the context of supply chain decision making; then as a tool to bridge the separation thesis between business and ethics and show that ethical decision and business decisions are interrelated and can and should be jointly considered; and finally to guide the G-2 powers in their efforts to improve relations. In the first supply chain model a Metrics Arrow of relevant performance metrics that follow the temporal flow of the product is presented and used to select a third party logistics provider. The ANP model also provides managerial insight into the interdependencies of the performance metrics. The second model deals with selecting which green supply chain initiative a company should implement. A generalized framework is developed and then customized and applied in a specific case study of a TV audio video producer’s supply chain. Two ethics cases are analyzed in the first chapter on ethics to demonstrate the benefits of using a rigorous prioritization process, the ANP, to make ethical decisions. This chapter is intended to act as introduction of the ANP to the ethics community and focuses on the benefits of using the ANP. Next, a complex model that uses a stakeholder theory approach is used to address the ethical issues of hydraulic fracturing. The benefits to the natural gas industry to participate in an integrative stakeholder approach are demonstrated. As another demonstration of the ANP a complex decision with a direct influence on peace and stability in the world is the relationship between the two superpowers the People’s Republic of China and the United States is analyzed. As improvements have been made in the relationship between the two countries there are critical decisions that must be faced in the near future. This model suggests which of five initiatives if addressed will be most beneficial to both countries. In the final chapter the main findings are summarized and future research is suggested

Multicriteria methodologies for the appraisal of smart grid projects when flexibility competes with grid expansion

The severe consequences expected due to the increased frequency and intensity of extreme weather events call for improving the environmental sustainability of our society. The electricity sector is pivotal in the path toward a climate-neutral society. Nowadays, the massive use of renewable energy sources requires that electricity demand follows energy production. Demand has to be flexible, as well as the renewable generation and the grid infrastructures. The power system has to assume a decentralised structure and integrate the transportation and cooling and heating sectors. All customers connected to the electrical grid have to contribute to the power system management and participate in the related markets. The power system has to become smart; all technical and market processes have to be digitalised to enable new functionalities and services. The power system transformation requires rethinking planning and operation practices to accommodate the changes and take advantage of the related opportunities. The novel features and services available in the active and flexible power system will influence the customers' daily habits; therefore, the impacts generated by planning initiatives will cross the power system borders by impacting society as a whole. Since the power system will be operated closer to its technical limits, it is crucial to enhance the management of uncertainties by the increased accuracy of load and generation forecast. This thesis addresses the ongoing power system transformation by focusing on the distribution system, which will face unprecedented changes. This thesis concerns novel approaches for appraising the project initiatives based on the use of the users' flexibility connected to the grid. Traditional appraisal tools are no longer effective; therefore, decision-makers have to be supported with tools capable of capturing the complexity of the future power system in which flexibility measures compete with grid expansion. In this thesis, an assessment framework for smart grid initiatives which combines the cost-benefit analysis and the multi-criteria analysis proposed. Based on international guidelines, this framework allows for a systematic and simultaneous assessment of tangible and the intangible impacts considering conflicting criteria. To complete the assessment framework, a novel methodology which combines Regret Theory and multi-criteria analysis is proposed. The proposed methodology represents one of the main contributions of this dissertation. It supports the decision-maker to identify the most valuable option by decomposing the complex decision-making problem of smart grid planning and rejecting personal biases by avoiding the need for defining the evaluation criteria relevance. However, the stakeholders’ perspective can be included in terms of constraints for the minimax optimisation problem. In conclusion, the contribution of the thesis is to provide decision-making support tools for strategical power system planning. The research activities described in this document have been aimed at supporting system operators and regulatory bodies by providing tools for smart grid project appraisal and improving the accuracy of power system studies considering the novel context features

Strategic change management in ship design and construction

Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Ocean Engineering, 1998.Includes bibliographical references (p. 315-329).by Matthew P. Tedesco.Ph.D

Methodology and Software for Interactive Decision Support

These Proceedings report the scientific results of an International Workshop on "Methodology and Software for Interactive Decision Support" organized jointly by the System and Decision Sciences Program of IIASA and The National Committee for Applied Systems Analysis and Management in Bulgaria. Several other Bulgarian institutions sponsored the workshop -- The Committee for Science to the Council of Ministers, The State Committee for Research and Technology and The Bulgarian Industrial Association. The workshop was held in Albena, on the Black Sea Coast. In the first section, "Theory and Algorithms for Multiple Criteria Optimization," new theoretical developments in multiple criteria optimization are presented. In the second section, "Theory, Methodology and Software for Decision Support Systems," the principles of building decision support systems are presented as well as software tools constituting the building components of such systems. Moreover, several papers are devoted to the general methodology of building such systems or present experimental design of systems supporting certain class of decision problems. The third section addresses issues of "Applications of Decision Support Systems and Computer Implementations of Decision Support Systems." Another part of this section has a special character. Beside theoretical and methodological papers, several practical implementations of software for decision support have been presented during the workshop. These software packages varied from very experimental and illustrative implementations of some theoretical concept to well developed and documented systems being currently commercially distributed and used for solving practical problems

Advanced risk management in offshore terminals and marine ports

This research aims to propose a Risk Management (RM) framework and develop a generic risk-based model for dealing with potential hazards and risk factors associated with offshore terminals' and marine ports' operations and management. Hazard identification was conducted through an appropriate literature review of major risk factors of these logistic infrastructures. As a result in the first phase of this research a Fuzzy Analytical Hierarchal Process (FAHP) method was used for determining the relative weights of the risk factors identified via the literature review. This has led to the development of a generic risk -based model which can help related industrial professionals and risk managers assess the risk factors and develop appropriate strategies to take preventive/corrective actions for mitigation purposes, with a view of maintaining efficient offshore terminals' and marine ports' operations and management. In the second phase of the research the developed risk-based model incorporating Fuzzy Set Theory (FST), an Evidential Reasoning (ER) approach and the IDS software were used to evaluate the risk levels of different ports in real situations using a case study. The IDS software based on an ER approach was used to aggregate the previously determined relative weights of the risk factors with the new evaluation results of risk levels for the real ports. The third phase of the research made use of the Cause and Consequence Analysis (CCA) including the Fault Tree Analysis (FTA) and Event Tree Analysis (ETA) under a fuzzy environment, to analyse in detail the most significant risk factors determined from the first phase of the research, using appropriate case-studies. In the fourth phase of the research an individual RM strategy was tailored and implemented on the most significant risk factor identified previously. In the last phase of the research and in order to complete the RM cycle, the best mitigation strategies were introduced and evaluated in the form of ideal solutions for mitigating the identified risk factors. All methods used in this research have quantitative and qualitative nature. Expert judgements carried out for gathering the required information accounted for the majority of data collected. The proposed RM framework can be a useful method for managers and auditors when conducting their RM programmes in the offshore and marine industries. The novelty of this research can help the Quality, Health, Safety, Environment and Security (QHSES) managers, insurers and risk managers in the offshore and marine industries investigate the potential hazards more appropriately if there is uncertainty of data sources. In this research with considering strategic management approaches to RM development the proposed RM framework and risk based model contribute to knowledge by developing and evaluating an effective methodology for future use of the RM professionals