Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on East Asia

The study of ports in supply chain systems is an emerging area of importance which has drawn more attention from researchers in recent years. This paper presents a new perspective in this research area by examining the calling patterns of container shipping services in order to understand the dynamics of port connectivity and inter-port relationships in the supply chains. Empirical evidence is drawn from four major ports in East Asia, namely Shanghai, Busan, Kaohsiung and Ningbo. The study identifies the shipping capacity, trade routes and geographical regions connected to the ports, shipping lines involved, and the extensity and intensity of inter-port relationships among the four container ports from liner shipping network’s perspective. The findings show that most of the shipping capacity employed on the major east–west trade routes became non-exclusive and involved calls at two or more of the four ports. Port planners, terminal operators and carriers could capitalise on opportunities through exploitation of complementary relationships that exist among the selected ports, such as offering a package for shipping lines to call at a portfolio of terminals owned by the same terminal operator. Policy and research implications as well as recommendations are discussed for various stakeholders concerned with port planning and regional development.     

The impact of terminal re-organisation on belly-hold freight operation chains at airports

While it is widely acknowledged that airport re-organisation from destination to dedicated airline group terminals makes passenger travel more seamless, more efficient and also more profitable for both airlines and airports, there is little known about the impacts of such change on freight and in particular belly-hold cargo chains. Our analysis includes data from all airports in Australia but focuses primarily on the proposed re-organisation of Sydney Kingsford Smith airport. This paper reveals a significant relationship between international freight volumes, terminal organisation and freighter operations. However, our interview results only confirm the volume/aircraft type relationship. The paper aims to contribute to the general discussion on the impact of passenger terminal organisation on belly-hold freight operations and more specifically to the consultation process around airport master planning.     

Understanding hinterland service integration by shipping lines and terminal operators: a theoretical and empirical analysis

In the present competitive environment of ports, the key determinant in port competition is the ability of a port to be integrated into the local maritime and hinterland transportation chain. Creating effective integrated hinterland chains requires the coordination of several actors both in port and the hinterland. By making use of insights from Transaction Cost Economics and Resource-based View, the paper helps to understand why and how shipping lines and terminal operating companies enlarge their scope in intermodal transport and in inland terminals. The paper discusses a number of cases from the Hamburg–Le Havre range, where shipping lines and terminal operating companies have changed their scope of activities in ports and hinterland networks. After the theoretical and empirical analysis the papers draws conclusions on the explanatory power of the theories in understanding hinterland service integration by shipping lines and terminal operators.     

Vessel and voyage determinants of tanker freight rates and contract times

The behavior of shipping freight (charter) rates and the timing of shipping contracts affect the transportation costs of charterers and the operating cash flows of shipowners. Although the literature has established macroeconomic determinants of shipping freight rates, there has been no systematic investigation of microeconomic determinants of freight rates and the delivery time of chartered ships (the laycan period) in the tanker market. Therefore, the aim of this paper is to investigate the importance of vessel and contract specific factors in the determination of tanker freight rates and laycan periods in shipping contracts. Individual tanker shipping contracts from January 2006 to March 2009 are used to estimate freight rates and laycan periods using a system of simultaneous equations. The estimation results suggest that the duration of the laycan period is an important determinant of the shipping freight rate and vice versa. Other determinants of freight rates include the vessel's hull type, fixture deadweight utilization ratio, vessel age, and voyage routes. Determinants of the laycan period include the former determinants as well as the Baltic Dirty Tanker Index and its volatility.     

An equilibrium price model of spot and forward shipping freight markets

We focus on non-storability, a characteristic of shipping freight that leads to an enormous gap between the widely-used no-arbitrage pricing theory and shipping freight derivative markets. Our main contribution is to modify and generalize the Bessembinder and Lemmon (2002) model. Equilibrium spot and forward price formulae are derived in a shipping freight market where shipowners, charterers, and speculators are non-homogeneous. From our formulae, we also obtain the properties of the forward risk premium and an optimal hedge ratio. In addition, we use the model to quantify the risk attitude of market participants.     

长沙铁路枢纽货运集中化发展建议

在分析长沙铁路枢纽现状及存在问题的基础上,对长沙铁路枢纽货运集中化发展的可行性,及其货运集中化的发展对策进行了探讨。认为长沙铁路枢纽的货运集中化应将枢纽内货运站统一管理,确立中心货运站位置,优化站点配置;构建网上受理中心,集中受理、优化装车;建立仓储或配送中心,使仓储、配送、运输有专门部门负责,降低费用,提高服务质量。     

The rationale behind and effects of Bunker Adjustment Factors

The Bunker Adjustment Factor (BAF) system was first introduced following the oil shocks of the 1970s. The underlying justification for such a system was that shipping lines operating in freight conferences could not otherwise adjust their prices promptly enough to counteract the devastating effect of bunker price increases. Thirty years after its imposition, BAF has always been a bone of contention between carriers and shippers. Ocean carriers contend that it is a necessary evil to reduce their exposure to volatile bunker price, while shippers argue that this risk should either be considered as a normal commercial venture, or dealt with in a more transparent way. When bunker surcharges began to climb in 2003, BAF disputes became one of the main obstacles to the dialog between both parties. To settle the dispute over BAF, the Europe Commission (EC) called for the submission on the issue of surcharges.The European Commission banned carrier conferences on October 17th 2008. The shipping lines now set their own independent BAF rates, which are closely monitored by the EC to ensure no collusion. The fluctuation in oil price in 2008 means that the BAF rates are now coming down, but there are still some wide variations in application. During this period of dramatic change in shipping environment, it has become important to provide a theoretical framework for analyzing the BAF. This paper focuses on examining the rationale behind and effects of BAF. A microeconomic model is made to explore the underlying mechanism of BAF. By examining the trade routes of Asia to Europe and Asia to North America during the period 2003-2008, this study finds the practice of BAF cushions an ocean carrier from the negative effects of bunker price fluctuations, and provides shipping lines a powerful tool to change the incentive structure facing carriers. Despite engineers showing that reducing the speed of vessels can economize fuel consumption evidence shows there has been little change by major shipping lines in their transit time and sailing schedules during the recent period of skyrocketing fuel price. It is apparent they use the BAF as the cushion against the effect of rising bunker prices.     

Global change, local pain: intermodal seaport terminals and their service areas

The creation of global shipping alliances and the trend to post-Panamax container ships have put pressure on seaports to respond in such a way as to guarantee the continued success of intermodal terminals. This paper points out the globalisation that is taking place in container shipping and how ports are responding. Emphasis is put on terminal improvements in the form of post-Panamax cranes and on the nature of competition in the service areas of ports. Halifax and Vancouver are used as examples of ports trying to adapt in the new age of containerisation.     

Low cost airport terminal locations and configurations

The growth in the demand for low-cost airlines has coincided with the growth in the airport industry. One attempt by airports to attract such carriers has been to construct dedicated terminals called low-cost terminals. The ability of these to accommodate fast aircraft-operation time in airfields is heavily influenced by its configuration and location in the airport. Here we evaluate the location and configuration of the dedicated terminal by considering the aircraft taxiing distance and passenger walking distance. Result show a single pier to be preferable configuration for a low-cost terminal. Time and cost efficiency seem to be driven largely by the location of the terminal, rather than its configuration.     

Competition and horizontal integration in maritime freight transport

This paper models competition for freight transport between the road and maritime sectors. Operators offer differentiated services and there are economies of scale in the oligopolistic shipping line sector. Two types of integration between shipping lines are considered: in one of them the liners production processes remain separate (like in an alliance); in another economies of scale are further exploited. Typically maritime freight post-merger goes down. However, it may increase if the merger exploits further economies of scale, they are important and transport services are sufficiently differentiated. An empirical application to the routes Valencia–Antwerp and Valencia–Genoa is undertaken to confirm the predictions of the model. It is shown that, for both types of merger, user surplus increases when transport services are weakly differentiated and economies of scale are sufficiently small. These conditions also guarantee that a merger is socially beneficial.     

Regional policy issues for rail freight services

This paper presents some of the results of the shortlines research project for Ademe (French agency for the environment) and Predit (French support program for surface transport research). The paper focuses on France, and makes some comparisons with North America and Germany. It is organized in two parts. The first part analyses the notion of “short line” freight railways in the European context. We observe that to date, unlike short lines in North America, which have mostly sought cooperation with major railways, the new rail operators in Europe are competing with the majors. The second part discusses regional policies on rail freight transport. We observe that for some time, local governments in France have been afraid that the on-going reduction of regional rail freight services will increase truck traffic and environmental impacts. Today, however, these governments appear to be more reluctant to promote rail freight activities than they were a few years ago. The current conditions under which local lines operate in Europe and especially in France, including small capacity on the infrastructure and high cost of labor and low productivity, may explain this reluctance.     

An stated preference analysis of Spanish freight forwarders modal choice on the south-west Europe Motorway of the Sea

This paper aims to contribute towards the design of effective freight transport policy by means of empirical analysis. In order to do so, a stated preference survey is undertaken to model the modal choice between door-to-door road transport and short sea shipping in the Motorway of the Sea of south-west Europe. The proposed analysis will provide policymakers with the necessary tool to identify the critical areas that should be addressed by future policy action in order to boost short sea shipping on Spain's Mediterranean coast. By applying the proposed method, we will be able to obtain estimates of the subjective values of transport attributes – value of time, value of reliability and value of frequency – in freight transport, values for which barely any empirical evidence on a national scale exists. Quantifying such values is a key part of the cost benefit analyses performed when evaluating transport projects.     

关于铁路枢纽联络线与疏解线的设计分析

铁路联络线和疏解线是铁路路网不可缺少的组成部分，线路不长但用途很大，在新线设计尤其是枢纽设计中经常遇到。联络线的标准一般应与相邻线的标准一致；疏解线的标准由于其特殊性．在设计规范中规定了最小曲线半径和最大纵坡。站场设计手册对枢纽的疏解方式做了一些归类与分析，但设计者只知道这些还远远不够。随着枢纽引入线路的增多，联络线与疏解线会越来越复杂，既涉及到如何节省工程投资，更涉及到运输安全、质量与效率。分析铁路枢纽联络线与疏解线的设计方法，以便更好地设计这类线路。     

Port choice and freight forwarders

In light of the growing supply chain power of 3PLs and very limited empirical studies on port choice from the freight forwarders’ perspective, this paper tries to evaluate the major factors influencing port choice from the Southeast Asian freight forwarders’ perspective, their decision-making style and port selection process and draw out some policy implications for port operators and authorities. Efficiency is found to be the most important factor followed by shipping frequency, adequate infrastructure and location. Their selection process is complex and a two-stage process and supports the new approach that models ports within the framework of a supply chain.     

Intermodal containerized shipping in foreign trade and regional accessibility advantages

Intermodalism has become one of the most significant transformations of freight transportation in the United States over the past two decades. The coupling of shipping modes has enabled shippers to more fully realize the respective time and costs advantages of respective modes. The opportunity to take advantage of intermodalism when shipping manufactured goods overseas may provide an essential competitive edge to a company or to an entire region engaged in world commerce. The change in the freight accessibility map of the United States to foreign markets that can be ascribed to intermodal infrastructures and operations has so far not been studied. With the help of a geographic information system, this paper analyzes this transformation in the United States by mapping integral place accessibility measures of five-digit zip code areas with respect to gateways for export of manufactured goods, especially containerized freight. The performance of the intermodal freight network is evaluated by comparing accessibility measures based on the highway network and on the intermodal network, respectively, for all North American container ports, as well as for subgroups of container ports on the Eastern Seaboard, the Western Seaboard, and the Gulf Coast of North America. The paper discusses regional winners and losers in the new national freight transportation system.     

Consequences of logistics sprawl: Order or chaos? - the case of a parcel service company in Paris metropolitan area

Logistics sprawl is the phenomenon driving warehouses and freight terminals further and further away from city centers, for reasons that are mostly dependent on urban planning, field price and economies of scale. In the past, studies have already described logistics sprawl in Paris Metropolitan area. These studies have concluded that logistic facilities far from Paris city center increased the distance travelled, and by extension, CO₂ emissions. This study does not question logistics sprawl in Paris metropolitan area but questions its consequences.This study presents a point of view on the location of cross-docking terminals. One main parcel service carrier was studied through a database strong of 600,000 inputs including pick-ups and deliveries for two months in the Paris metropolitan area. This study is not intended to be representative of all merchandise flows but makes it possible to understand the running of one significant actor. This project aims at determining the optimum terminals location according to two criteria: minimization of the total distance as calculated by the Euclidean distance (as the crow flies) between terminals and points of pick-up/ delivery, and the number of authorized terminals. The number of terminals is modified to study its relationship with the spatial distribution of its clients.Interestingly, we found that optimized locations for this parcel service carrier are located outside of Paris city center. Those locations minimize the total distance to the clients, and thus, are the best places to limit pollution. The reason is that the carrier manages this perimeter through a polycentric organization. Paris Metropolitan area is viewed as several sectors and not as a whole for this carrier. It is therefore unknown how the carrier's performance has evolved over time, but its current organization is close to the optimal situation.     

The ship routing and freight assignment problem for daily frequency operation of maritime liner shipping

To cope with excess capacity and improve service quality, maritime international liner carriers have recently adopted a new operational model known as daily frequency. In this new model, carriers provide daily pickup and delivery service to customers at major ports along the Pacific Rim. We investigate the ship routing and freight assignment problem for daily frequency operation of liner shipping. A solution procedure that incorporates a Lagrangian relaxation technique and local search was proposed. The numerical results show that Shanghai, Hong Kong and Singapore are ports that are ideal for carriers in establishing daily frequency operations along the Pacific Rim.     

Spatial,temporal and institutional characteristics of entry strategies in inland container terminals: A comparison between Yangtze River and Rhine River

Recent decades have brought a growing commitment of investors in the (co-)funding and management of inland terminals, particularly container terminals. However, the actors involved, the forms of third-party entry and the emerging partnerships in inland terminals have only been investigated on a fragmented basis in inland port research. To complement existing inland port research on governance, management and spatial development, this paper analyses entry strategies of actors in inland container terminals on the Rhine and Yangtze in terms of their spatial, temporal and institutional characteristics. The unit of analysis in this paper is the inland container terminal, not necessarily the entire inland port (which might have more than one terminal). The entry strategies and the drivers behind these strategies are examined using a conceptual framework focused on five questions, i.e. who, where, when, why and which way. The empirical application is based on a large dataset of all container terminals on the Rhine and Yangtze. Our findings suggest clear differences between the two rivers in terms of the type of operators, the sequence of inland port development and also the major actors shaping the inland terminal landscape. Despite these differences, there is also some level of similarity, including a low presence of international players, the absence of deepsea (landlord) port authorities and observed waves of single acquisition, multiple-site acquisition, and capital entry in the terminals. Government policies, institutional frameworks and the nature of shipping network development are determinants of inland port investment and the entry strategies adopted by relevant actors. The findings contribute to a better understanding of the drivers and contextual environment guiding entry strategies in inland ports and can help policy makers and port operators in inland rivers to assess and benchmark their strategy. The paper adds to existing literature by considering spatiotemporal aspects of terminal ownership and the strategic considerations of and institutional drivers and impediments to the inland terminal strategies of the corresponding actors.     

The dynamics between freight volatility and fleet size growth in dry bulk shipping markets

This paper studies the relationship between the time-varying volatility of dry bulk freight rates and the change of the supply of fleet trading in dry bulk markets. An abundance of research has been done to understand the time-varying characteristics of freight rate volatility, yet few have discussed the determinants of freight volatility. We therefore examine freight volatility against the changes in fleet size and other shipping market variables over January 1973–October 2010. The study employs a two-step model specification. The first step is the measurement of freight rate volatility through an AR-GARCH model; the second step is the analysis of the relationship between freight rate volatility and fleet size growth through a GMM regression. We confirm similar findings in the literature that freight rate volatility is time varying. Furthermore, the results reveal that the change in fleet size positively affects freight rate volatility, while the spot rate volatility of Capesize dry bulk exhibits a stronger reaction to the change in fleet size. The results of this study contribute in a general sense to understanding the systematic risk of shipping markets.     

Migration of container terminals as their natural process of evolution: Case study of Gdańsk and Gdynia ports

The paper proposes a theoretical model of container terminals and container port development, based on the life cycle theory, threshold theory and catastrophe theory, and in references to Kuznets' swings (interpreted as waves of infrastructural investments), and Kondratiev long economic waves.The aim of this model is to explain the development process of a container terminal and a port within one technological generation, as well as in intergenerational configuration, and relate it to the migration process of container terminals in the scale of a port-city urban area. Then, the applicability of this model was checked in the case of the container ports in Gdynia and Gdańsk (Poland). The analysed evolution process of ports of Gdynia and Gdańsk conforms with the proposed theoretical model, proving that the migration of container terminals within these ports is a part of their natural process of evolution, being a consequence of their threshold development and location splitting.Considering the physical location of development investments within the container ports of Gdańsk and Gdynia, it was noticed that there are two basic directions of migration of container terminals. One is the migration of the port's main container activity (core terminal or terminals), being a result of a generational change taking place after overcoming the maturity point. The second type of migration is connected with dispersion of port development investments in the increasingly distant port hinterland, caused by the need of the life extension of terminals within one technological generation.In an analogy to the processes of development of living organisms, we can treat the migration of terminal outsourced functions as a “vegetative” increase, being an attempt to extend the life of the terminal, while the migration of the core terminal within the port area (erecting a new generation terminal) can be treated as “generative” growth.