Vertical integration and exclusivities in maritime freight transport

A key recent theme in maritime freight transport is the involvement of shipping lines in terminal management. Such investments are costly but allow liners to provide better service. Most of these new terminals are dedicated terminals but some are non-exclusive and let rivals access them for a fee. In this paper, we show that a shipping line that builds its own terminal finds it strategically profitable (i) to continue routing part of its cargo through the open port facilities, and (ii) to keep its terminal non-exclusive. In this way, the liner investor pushes part of the rival’s freight from the open to the new terminal. Besides, under non-exclusivities, the shipping lines offer a wider variety of services, total freight increases and the resulting equilibrium fares are higher than with a dedicated terminal.     

The potential of horizontal collaboration in airport ground freight services

Since the global economic crisis of 2007–2011, the increasingly dynamic and challenging air cargo market in Europe has forced freight forwarders to improve their performance. In addition to improving their internal transport efficiency, they have also started to look at previously unexplored opportunities for horizontal collaboration in landside airport transport. The aim of this study is to reveal the potential of air cargo transport collaboration on a horizontal level, i.e. between multiple freight forwarders within a single airport. Reviewing existing literature on horizontal collaboration, with a focus on the air cargo industry, we propose a conceptual framework for transport collaboration in the air cargo industry. Based on a comprehensive study on air cargo transport movements within Schiphol, using a simulation model based on company data of 10,747 shipments (6977 tons of cargo) for a period of 30 days, we find several interesting results. Our main finding is that horizontal collaboration can improve the transport performance, by maintaining a high frequency of transport movements and maintaining an acceptable throughput time for air cargo shipments, and at the same time reduce transport costs by up to 40%. For smaller freight forwarders, the frequency of transport deliveries can even increase, while still allowing them to improve the average load factor of transport movements.     

A meta-model for passenger and freight transport in Europe

On the basis of the outcomes of five disaggregate national models for passenger transport, four national models for freight transport and two European transport models, a fast and approximate meta-model for passenger and freight transport in Europe has been developed. The meta-model for passenger transport includes a detailed segmentation of the population, which makes it possible to investigate the impact of policies on many different groups of the population. The meta-model for passenger and freight transport has been applied for a reference scenario for 2020 and to simulate many elements of the European Commission's Common Transport Policy. These policy measures were also assessed in terms of the consequences on the internal and external cost of transport.     

The transport geography of logistics and freight distribution

Goods movement and freight distribution are widely underrepresented in regional science and geographical research. This is surprising since a large body of traditional spatial theory has been developed with respect to transportation costs or to trade areas: those aspects that were originally closely connected with the exchange of goods. Growing attention is being paid in geography to related subjects, such as the emergence of global production networks, to structural changes in retail or to the commodification of modern consumption. To a certain extent, these processes depend upon the efficient transfer of information, finance and physical goods. Yet, with a few exceptions, the freight sector appears to be neglected in contemporary research. This paper provides an overview of the emerging transport geography of logistics and freight distribution. It challenges the traditional perspective where transportation is considered as a derived demand with the idea that logistical requirements underline transportation as a component of an integrated demand. The paper provides an analysis of the evolution of logistics as it pertains to the core dimensions of transport geography (flows, nodes/locations and networks). The concept of logistical friction is also introduced to illustrate the inclusion of the multidimensional notion of impedance in integrated freight transport demand.     

On structural inelasticity of modal substitution in freight transport

At the European level there is an increasing focus on how freight transport can be moved from trucks on roads to more environmentally friendly modes such as rail and ship. A large proportion of the transport services between OD pairs, however, cannot be substituted since there is only one alternative available. The paper investigates the magnitude of this “structural inelasticity” of modal substitution in freight transport due to a sparser layout of rail and ship-based freight networks compared to road. In the analysis we use a recent Scandinavian freight demand model covering more than 800 zones. We find that the structural inelasticity is very significant - in particular for transportation over less than 500 km. Moreover, the inelasticity varies greatly with commodity groups and between OD pairs, and it depends strongly on the port and rail infrastructure. The results suggest that pure charging instruments (road pricing for trucks) in many regions will have limited mode substitution impacts. However, if combined with structural changes in terms of improved infrastructure for rail and ship, impacts may be greater.     

Dynamic cost functions and freight transport modal split evolution

The paper studies the characteristics of the evolution over time of modal split for a transport system in which various modes compete with each other and face the freight flow increase in different ways. It is shown that the modal split evolution is constituted by a sequence of time periods, in each of which the dynamic characteristics of the system are different. An equilibrium, stable or unstable, is reached after a transition phase, whose length depends on the characteristics of the system, and in some cases exceeds the length of the period, so that an equilibrium is not reached.     

Regional integration and maritime connectivity across the Maghreb seaport system

Models and empirical studies of port system evolution dominantly focus on land-based dynamics. Hence, it is traditionally recognized that such dynamics condition the evolution of ports and their relations as well as wider regional integration processes. The Maghreb region (Algeria, Morocco, and Tunisia), which is currently responsible for no less than one-third of all African port throughputs, offers a fertile ground to test the possibility for regional integration to occur through maritime linkages despite limited trade integration and land-based transport connectivity. Main results highlight the increase of trans-Maghreb maritime connectivity but this occurs mostly at the periphery of the system based on transit flows. Logistical integration versus trade integration is discussed in light of the recent evolution of Maghreb ports and of the region in general.     

The dynamics of modal split for freight transport

The paper presents a dynamic model of modal split in a multimodal freight transport system, which supposes that the evolution over time of transport demand is accompanied by a corresponding evolution of transport modes, and that users react with delay to cost variations. Starting with these hypotheses, and following the paradigm of random utility, a recursive equation is obtained, whose iterated application furnishes the sequence of the demand fractions on the various transport modes in the successive epochs of the time period during which the evolution of the transport system is studied and enables forecasting the future modal split evolution.     

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.     

Integration of small freight flows in the intermodal transport system

This paper explores the possibility of implementing innovative bundling models and new-generation terminals as a means to integrate small flows, mainly from outside the economic core areas, in the intermodal transport system. Any integration of these small flows would increase the transport volume that is potentially suitable for intermodal transportation, and could therefore add to the modal shift from road to rail. To illustrate this concept, it will be applied to the proposed terminal in Valburg in the Netherlands. The theoretical and practical results of this example will be discussed in the context of the more general research on innovative intermodal transport.     

Interregional trade network analysis for road freight transport in Greece

This paper suggests a flexible decision support framework for the strategic planning of a freight transport hub network in Greece. The proposed methodology treats practical aspects related to the optimal number, location and geographical covering of hubs, through the network analysis of interregional trade, based on original survey data for road freight flows during 2004–2012. The results offer insights into the hierarchical structure of the network and related investment priorities, as the hub role of a prefecture is found to be strongly influenced by high population densities and manufacturing specialization, and its location along highway corridors.     

Urban growth and freight transport: From sprawl to distension

This paper aims at discussing the effects of the urban growth on freight mobility through the analysis of urban activities localisation. Thanks to the results of this work, we lay the basics of an original concept that synthetizes logistics sprawl and other localisation dynamics taking into principal consideration the mobility of freight in general: the logistics distension.Through the spatial analysis of activities and population localisation between 1982 and 2012 in Lyon's urban area, we show the evolution of the socio-economic morphology and evolution of the freight landscape. Through freight movements modelling, we show the evolution of freight mobility in the conurbation of Lyon with regard to the modifications of the urban fabric.     

New SP-values of time and reliability for freight transport in the Netherlands

This paper discusses the methods used in a study on the values of time and reliability in freight transport in the Netherlands. SP surveys were carried out among more than 800 shippers and carriers. A novel feature is that both for the value of time and reliability two additive components are distinguished: a transport cost and a cargo component. Specific instructions were given to make sure that the carriers provide the former and shippers that contract out the latter component. The resulting values that will be used in CBA in The Netherlands are presented and compared against the international literature.     

European intermodal freight transport network: Market structure analysis

The analysis of market structure and concentration measures for the Intermodal Freight Transport (IFT) market is important to avoid market failure and to find the areas for policy making to promote IFT market share. This analysis can be performed for separate segments, for example, the market for transshipment service or the market for main-haulage service. However, due to the multistage characteristic of IFT service, the segmental analysis gives an incomplete view of the IFT market at the network level. In a previous paper (Saeedi et al., 2017), we present the Intermodal Freight Transport Market Structure (IFTMS) model to conduct a network-based study of the IFTMS in which distinctive actors (i.e., pre/post haulage operators, terminals, rail/barge operators, transport chains, and corridors) are competing at different levels inside distinctive markets to deliver an integrated IFT service. There are two main challenges in the application of IFTMS model in real cases, for example, the European IFT network. First, the definition of the geographical and spatial border of the transshipment market areas is needed to determine which actors are potentially competing for a specific service demand. The second challenge is the lack of disaggregated data and the consistency of existing data in nodes (i.e., the transshipment areas) and links (i.e., the rail and barge operators). To cope with these challenges, we develop a four-step methodology in which a model-based approach is used to define the geographic boundaries of the transshipment submarkets and provide detailed and consistent data for market analysis. We also apply the IFTMS model to study the market structure of European intermodal network. Our analysis shows that the majority of transshipment markets as well as main-haulage markets are highly concentrated markets. The corridor markets – which include the IFT chains – are unconcentrated markets. Furthermore, the majority of corridors in the European Union are inside highly concentrated origin-destination markets.     

Investigating the impact of demand amplification on freight transport

Despite freight transport operations being influenced by supply chain dynamics, there has been only a very limited investigation into the impact of demand amplification on this function, with almost no analytical research. This paper aims, through spreadsheet simulation of a generic production control system, to quantify the impact of demand amplification on transport performance. Performance measures evaluated include both transport cost and efficiency. The results in general find a negative relationship between transport performance and demand amplification. It is also found that the ratio of vehicle capacity to average demand affects these results.     

Analysis of greenhouse gas emissions of freight transport sector in China

Due to the increasing commercial activities in China, the rapid growth of energy consumption and greenhouse gas (GHG) emissions in the freight transport sector has alarmed the Chinese central government. However, there is a lack of standard measure for evaluating GHG emissions generated from freight transport operations. To improve this situation, Chinese policy makers need to evaluate GHG emissions for energy saving and pollution reduction. This background leads us to examine the GHG emission trajectories and features of Chinese freight transport patterns in the last decade, i.e. between 2000 and 2011. In this study, we examine different regions’ freight turnover and energy consumption by various transport modes (i.e. railway, highway, waterway, aircraft, and oil pipeline) in China. Our results show that the total amount of GHG emissions caused by the Chinese freight transport sector reached 978 million tons in 2011, indicating an average annual growth of 74 million tons CO₂e for the last decade. Shandong, Anhui, and Henan are the main provinces producing GHG emissions, representing 11.7%, 10.3%, and 10% of total emissions generated from the freight transport sector in China, respectively. This study also compares the regional GHG emissions from different freight transport modes including railway, highway, waterway, air transport, and oil pipeline. Based on the findings, policy implications are provided on how to mitigate freight transport emissions among different Chinese regions.     

Competing institutional logics and institutional erosion in environmental governance of maritime transport

This paper explores the process of deinstitutionalization of maritime transport governance due to competing institutional logics. The sector continues to operate with a business-as-usual logic while simultaneously paying lip service to a logic of sustainability. The key regulator of the sector, the International Maritime Organization (IMO), attempts to bring in stricter environmental legislation, but the dominant logic will not allow these developments. At the same time, the sustainability logic driven by peripheral actors cannot achieve domination. This leads to an ongoing erosion of the legitimacy of the institution of maritime transport governance and a state of inertia with no new institution able to emerge. This stagnation is, in some ways, worse than a decline because current issues cannot be addressed, leading to a loss of trust in the system, further stagnation and impasse, and no action on GHG emissions.     

Differential pricing strategies of air freight transport carriers in the spot market

The single pricing approach fails to reflect different demand changes in response to its cargo space prices at different sales periods. This might be an obstacle to maximize the cargo space revenue of air freight carriers. This paper conducts the empirical analysis on pricing strategies in the spot market for two competitive air freight transport carriers operating on the same segment. It concludes that two carriers gain more revenues with the optimized differential pricing approach than with the single pricing approach. In theory, the research enriches the current literature in terms of pricing strategy optimization under the competition of two parties. In practice, it provides references for air freight transport carriers in their decision-making of applying the differential pricing strategy.     

Comparing maritime containers and semi-trailers in the context of hinterland transport by rail

The purpose of this article is to investigate why rail is used to move semi-trailers to and from seaports to lesser extent than it is used to move maritime containers, and which actions can foster an increase of semi-trailer transport by rail. The two types of load units are obviously used in quite different logistics settings. The two transport segments are compared in terms of the transport markets they serve, the competition they face and the operational and technological principles upon which they operate.The empirical setting is the transport of general cargo in load units between Scandinavia, Continental Europe and the UK, although the container segment is analysed as an element of deep-sea liner shipping. Empirical findings are drawn from the case of the Port of Gothenburg and its Scandinavian hinterland. Sustained double-digit annual growth has led to a situation where most of the potential market for the hinterland transport of maritime containers has already been realised. The challenge for further growth is now to capture the semi-trailer segment.Not surprisingly, this analysis shows that rail is more competitive for the hinterland transport of containers than of semi-trailers, but there are still significant opportunities for reaping the benefits of rail transport of semi-trailer transport in the hinterlands of European ports. An increased integration of rail transport and Roll-on/Roll-off shipping will not only require, but also encourage, changes in the overall system design as well as its competitiveness compared to all-road and all-rail services.