Inside the box: assessing the competitive conditions, the concentration and the market structure of the container liner shipping industry

The container liner shipping industry has been facing a period of restructuring, particularly over the past decade. It was a period of significant merger and acquisition transactions. These successive waves of consolidation may have influenced the degree of concentration. Next, fundamental changes such as the deployment of ultra large container vessels and the abolishment of the block exemption might affect competition. Reviewing scientific literature as well as, various maritime reports and discussion groups, yielded no univocal answer regarding the market structure and revealed that assessing competition has remained insufficiently unexplored for the container liner shipping industry. The evolution of industrial organisation theory towards the new empirical industrial organisation modelling is an extra incentive to examine the degree of competition for the container liner shipping industry. In light of these developments, the doctoral thesis assesses the competitive conditions, the concentration and the market structure of the container liner shipping industry. The doctoral thesis addresses two research questions: [RQ1] Is there an oligopoly in the container liner shipping industry? and [RQ2] If the container liner shipping industry is concentrated, does the concentration affect the liner operators’ performance?. The present thesis has employed both ‘Structure-Conduct-Performance’ tests (i.e. indicators of concentration, indicator of market share instability) and ‘New Empirical Industrial Organisation’ models (i.e. the Panzar-Rosse model and the Boone indicator) to address the research questions. The importance of the (unobservable) threat of entry is also recognized in this study. A dynamic view of competition, known as the ‘Persistence of Profit’ approach makes it possible to capture the unobservable threat of entry. Last, the economies of scale in deploying larger vessels are quantified by using a liner service cash flow model. The latter two studies searched for an explanation for the obtained results, and hereby, complete the competition analysis

Optimization in container liner shipping

We will give an overview of several decision problem encountered in liner shipping. We will cover problems on the strategic, tactical and operational planning levels as well as problems that can be considered at two planning levels simultaneously. Furthermore, we will shortly discuss some related problems in terminals, geographical bottlenecks for container ships and provide an overview of operations research methods used in liner shipping problems. Thereafter, the decision problems will be illustrated using a case study for six Indonesian ports

Supply Chain Risk Management in the Container Liner Shipping Industry from a Strategic Point of View

One of the most significant current discussions in the container liner shipping industry (CLSI) is supply chain risk management (SCRM). In recent years, there has been an increasing interest in managing risk and reliability in the container supply chain from many viewpoints. This paper reviews the significant literature related to SCRM in the CLSI from a strategic point of view. By integrating the concept of the CLSI, the planning levels of container liner shipping and the concept of SCRM, questions have been raised about risk and uncertainty arising from the external environments (i.e. country-limited scope) and how can these factors influence the organisational reliability and capability of liner shipping operators (LSOs). Another question concerns how uncertain environments can influence the punctuality of containerships. So far, however, no research has been found that answered these questions which make further research is meaningful. For future research, this paper recommends an extensive assessment of a business environment-based risk and an evaluation of organizational reliability and capability of LSOs from the strategic point of view. Finally, it is worth mentioning that there is a research gap in both industry and academia on how to analyse and predict the punctuality of containerships (i.e. arrival and departure) under uncertain environments. Keywords: supply chain risk management, container liner shipping industry, business-environment based risk, organisational reliability and capability, punctuality

The Role of the Coastal Container Liner Shipping within the Maritime Transport System

Promjene koje su u posljednjim desetljećima prisutne na pomorskom kontejnerskom tržištu rezultat su kretanja na svjetskom tržištu roba i usluga, otvaranja novih tržišta te tehnoloških rješenja u prijevozu i prekrcaju kontejnera. Obalno linijsko kontejnersko brodarstvo najčešće je prvi i posljednji segment u ciklusu proizvodnje pomorske transportne usluge unutar pomorskog kontejnerskog prijevoza. Poslovni i tehnološki procesi prijevoza kontejnera morem postali su ustaljena praksa te se stoga svaka odstupanja od uobičajenog, u pravilu, odražavaju na poslovanje pomorskog brodara u obalnom linijskom kontejnerskom brodarstvu.Changes that have occurred in the container shipping market over the last few decades have resulted from trends present in the international markets of goods and services, as well as from newly introduced markets and new container transportation and/or loading/unloading technologies. Coastal container liner shipping usually represents the initial and the terminal segment in the container liner shipping cycle. Operational and technological processes in the maritime container shipping have become a common practice and any deviation from the usual practice consequently affects shipowners’ operation in the coastal container liner shipping

Speed Optimization and Environmental Effect in Container Liner Shipping

The optimization models concerning the container shipping industry, either indirectly or directly, take into account a fixed transport demand hence fixed revenue. Such a conjecture excludes the freight rate’s influence upon the model’s results. In order to consider a model in which the influence of the freight rate can be evaluated, this paper consider the required service frequency for the involved route as a variable. Moreover, the model can also assess the inventory costs’ influenc

Business Environment-Based Risk Model for the Container Liner Shipping Industry

Container liner shipping is a risky industry. There are many unexpected risks and uncertainties in extended journey around the world which can be the result of external events such as political actions, economic situation and natural disasters. The impact of these external risks can be devastating. In this paper, a new business environment-based risk (BEBR) model for prioritising and assessing the external risk criteria in the CLSI, is developed. The term BEBR can be defined as a wider scope of external risks including political risks, economic risks, social risks and natural hazards that directly or indirectly influence the business performances in the CLSI. An analytic hierarchy process (AHP) approach is employed to prioritise the importance of risk criteria and is adapted into a deterministic weight factor in the context of risk impact level. So far, no study has been found that developed this model for the CLSI which highlights a significant research gap to be fulfilled. Based on the test case, the result has shown that economic risks are the most significant main criteria in the BEBR model, followed by political risks, natural hazards and social risks. For future research, this paper recommends a quantitative risk analysis for assessing the targeted or whole risk criteria in the BEBR model. Keywords: business environment-based risk (BEBR), container liner shipping industry (CLSI), analytic hierarchy process (AHP), prioritisation

TECHNOLOGY-BASED RISK IN COASTAL CONTAINER LINER SHIPPING

U obalnom linijskom kontejnerskom brodarstvu, brodari svoje poslovanje zasnivaju na različitim tehnologijama prijevoza i prekrcaja od kojih svaka za sebe ima svoje prednosti i nedostatke te u poslovanje brodara unosi izvjesne prednosti, ali i prijetnje koje mogu dovesti do određenih materijalnih i nematerijalnih posljedica. Poslovno-tehnološki rizik specifičnost je poslovnih subjekata koji se u svom poslovanju koriste tehničkim sredstvima i tehnologijama značajne materijalne vrijednosti. Poslovno-tehnološki rizik kod obalnog linijskog kontejnerskog brodara uvjetovan je donošenjem poslovno-tehnološke odluke koja se odnosi na izbor tehnološkog rješenja o kojem ovisi rezultat poslovanja. U radu je objašnjen pojam poslovno-tehnološkog rizika te odnos poslovno-tehnološkog rizika i poslovno-tehnološke odluke. Nadalje, prikazani su čimbenici koji utječu na vrijednost poslovno-tehnološkog rizika u obalnom linijskom kontejnerskom brodarstvu.In coastal container liner shipping (CCLS) operators use different technologies of transport and cargo handling, each of which, having its advantages and disadvantages, brings about certain benefits for the shipping operator as well as hazards which might have direct or indirect consequences. Technology-based risk is always present in business where tools and technologies of substantial value are used. In coastal container liner shipping, technology-based risk derives from a technology-based decision-making regarding the choice of technology that business results depend on. The paper deals with the term technology-based risk as well as with the relationship between technology-based risk and technology-based decision. It also deals with the factors which influence the value of technology-based risk in coastal container liner shipping

Structural changes in the container liner shipping influencing shipping agent’s role

The article presents structural changes in liner shipping sector, as many global Container shipping lines are opening their own agencies and many independent shipping agents are consecutively closing down their activities, either via takeovers or by going out of business completely. The process of horizontal and vertical integration in shipping industry is re-shaping the entire logistics industry. Such changes put pressure on shipping agents to redefine their market role and develop services with added quality, and relationships with actual and new principals. They are forced to seek for new ways to make income therefore they are forced to perform additional roles, in order to satisfy carriers on one hand, and usually just a few clients, on the other. A market analysis in Slovenia has been performed among companies offering ship-port services, with focus on comparison between independent agents and Container Line offices. It has been ascertained that independent shipping agents must implement the new strategy which is closer to a forwarder’s mentality and market role