Chinese Shipping Research Articles

China-Myanmar Bilateral Relations: An Analytical Study of Some Geostrategic and Economic Issues

Myanmar's geopolitical and geostrategic position is very important for China and India, the two regional powers in East Asia and South Asia. Myanmar is the main connecting hub for South Asia, East Asia, and Southeast Asia, and it is also connected with the Bay of Bengal and the Indian Ocean. Myanmar is connected with the two corridors of China's ambitious projects, Belt and Road Initiative (BRI), and Bangladesh, China, India, Myanmar Economic Corridor (BCIM). Chinese ships have to navigate at the Malacca Strait, especially in the case of fuel oil imports and exports to global markets, which are, both times consuming and strategically risky. But, using the Rakhine state's Kyaukpyu port will reduce China's dependence on the Malacca Strait and expand trade. Due to the US presence in the Indian Ocean, the recent Sino-Indian conflict, and Myanmar's geostrategic position, Sino-Myanmar relations are now one of the topics of study. This article will analyze the geostrategic and economic issues of Sino-Myanmar relations. The study has found that both China and Myanmar have greatly been benefitted through the establishment of strong bilateral relationship based on trade and investment, connectivity, constructions of ports and special economic zones. The main objective of this study is to find a diplomatic way to improve the Bangladesh-Myanmar relations based on the results of the strong relationship of China and Myanmar. This study is a major contribution to the field of China–Myanmar bilateral relations in the context of some geostrategic and geo-economic issues. The study has been carried out based on secondary data with some primary data of border survey and focus group discussions. At the conclusion of this study, there has been provided with some policy recommendations to improve the geostrategic and economic relations between the two neighboring countries.

Role and potential of the circular economy in managing end-of-life ships in China

China's circular economy has made notable progress since the 21st century and shaped various industry segments. Among these, ship recycling has been particularly outstanding as it evolved exceptionally fast and assumed an internationally leading role. In this article, we present field survey findings on recycling standards and recovery capacities regarding the material flows at Chinese shipbreaking yards, which overall perform comparatively sustainable. However, recent policy and market developments have induced the sector's decline, which at present seems to threaten the very fundamentals of circular economic management for obsolete vessels in China. Given these limited prospects for traditional recycling approaches in the near future, the article proceeds to evaluate alternative circular economy management options for Chinese ship recycling facilities to manage end-of-life vessels. Based on quantifications of hidden potentials in ship supply, value and material contributions to the domestic circular economy, technical and market specific conditions for material recovery as well as other circular economy practices, we find that ship repair and refurbishment may offer the most promising alternative to recycling for Chinese shipbreaking yards.

The Maritime Rung on the Escalation Ladder: Naval Blockades in a US-China Conflict

What options do great powers have to end future conflicts over limited political objectives without resorting to nuclear threats? This article examines a naval blockade as an option for militarized coercion that has been largely overlooked in existing scholarship on the conflict escalation ladder for great-power war in the nuclear era. Some US scholars have recommended a naval blockade of Chinese merchant shipping to coerce Beijing in a future war scenario. US leaders might select this blockade option because they believe it poses a lower risk of nuclear escalation than conventional strikes on the Chinese mainland and lower costs than directly engaging Chinese air and naval forces off China’s shores. Neither China nor the United States might be willing to risk nuclear war to achieve their limited political aims in future conflicts over Taiwan, North Korea, or disputed maritime territories. Existing literature has not sufficiently scrutinized the feasibility of a blockade and China’s military plans to respond to it, despite raising doubts about the effectiveness of a blockade to force a change in Chinese behavior. This article argues that an interception-style blockade at the Southeast Asian straits designed to minimize escalation risks is feasible. But the campaign would place severe demands on US naval forces and require extensive support from other countries. Chinese-language materials suggest China could respond militarily to that campaign with intentional escalation using nonnuclear weapons, which may be preferable to inadvertent nuclear use that could result from a US attack on the Chinese mainland.

When a Consulting Case Study meets Emerging Theories: Broadening the Vision of Chinese Technology

Through a consulting case study of a Chinese shipping company, this research finds that social media is preferred to ERPs for communications in supply chain IS. It was proposed that the theories of liquid communication, ubiquitous teamwork, fluid organizing and transactive memory systems explain the effect of social media compared to corporate information systems in corporate settings. Findings suggest that social media support liquid communication, the ease of shifting smoothly between multiple topics and the time allocated to communication, particularly in terms of lower time constraints. They suggest, too, that social media support teamwork, but that organization, rather than being fluid, remains structured. Most importantly, results find that social media support transactive memory systems, the understanding that each team member comes to the team with particular knowledge and skill sets and that the group trusts each team member to have those skills and to act on them. In the complexity of supply chain IS, therefore, this study shows that social media support teamwork goals and functions.

Lean production of ship-pipe parts based on lot-sizing optimization and PFB control strategy

PurposeWith an increasingly fierce competition of the shipbuilding industry, advanced technologies and excellent management philosophies in the manufacturing industry are gradually introduced to domestic shipyards. The purpose of this study is to promote the lean management of Chinese ship outfitting plants by lean production strategy.Design/methodology/approachTo promote the lean implementation of Chinese shipyards, the lean practice of ship-pipe part production is highlighted by lot-sizing optimization and strategic CONWIP (constant work-in-process) control. A nonlinear programming model is formulated to minimize the total cost of ship-pipe part manufacturing and the particle swarm optimization (PSO)-based algorithm is designed to resolve the established model. Besides, the pull-from-the-bottleneck (PFB) strategy is used to control ship-pipe part production, verified by Simulink simulation.FindingsResults show that the proposed lean strategy of the programming model and strategic PFB control could assist Chinese ship outfitting plants to leverage competitive advantage by waste reduction and lean achievement. Specifically, the PFB double-loop control strategy shows better performance when there is high productivity and the PFB single-loop control outperforms at lower productivity scenarios.Practical implicationsTo verify the effectiveness of the proposed lean strategy, a case study is performed to validate the formulated model. Also, simulation experiments realized by FlexSim software are conducted to testify results obtained by the constructed programming model.Originality/valueLean production management practice of the shipyard building industry is performed by the proposed lean production strategy through lot-sizing optimization and strategic PFB control in terms of ship-pipe part manufacturing.

Impediments to free movement of Chinese seafarers in the maritime labour market

With economic reform, in China, labour turnover of seafarers became more possible. However, little attention has been paid to its consequences. A limited literature indicates that Chinese seafarers may leave state-owned enterprises to become freelance seafarers, working in the global labour market for better wages and employment conditions. There have been predictions of a substantial increase in seafarer export, with China becoming the top labour supplier to the global maritime industry. However, such expectations have been largely unmet. Through 157 qualitative interviews with seafarers and managers in Chinese ship crewing agencies, we explore some reasons why this may be so. The findings suggest that Chinese seafarers are in fact limited in their willingness and ability to leave their companies. This is due to a complex mixture of organisational, regulatory, infrastructural and personal contexts that are their everyday experience of work in China. Analysis further suggests that the underdevelopment of a national regulatory infrastructure and welfare support mechanism for seafarers, along with poor implementation of the Maritime Labour Convention 2006, combine to limit the extent of the reform of the Chinese seafaring labour market. Together, these factors help to explain why China’s seafaring labour export has been far lower than anticipated. JEL Codes: D40, E24, F66, J61, J83

A game theory analysis of China’s maritime cross-border insolvency policy: from the perspective of Hanjin shipping’s bankruptcy case

ABSTRACT Financial difficulties experienced within the shipping industry have caused an increasing number of maritime cross-border insolvencies. The UNCITRAL Model Law on Cross-Border Insolvency (the Model Law) is designed to assist countries in equipping their insolvency laws with a modern framework that more effectively addresses cross-border insolvency proceedings. This paper discusses whether China should adopt the Model Law, using the method of strategic game theory based on the Hanjin Bankruptcy case. Our results show that, from the perspective of a mathematical evaluation, China should not adopt the Model Law, since Hanjin declared bankruptcy with South Korea’s adoption already having taken place. Even if the Model Law is adopted, its application in China will be very limited due to the structure of Chinese shipping enterprises.

Research on the Status Quo of China’s Shipping Economy Development and Enterprise Transformation Strategy

With the decline of the world economy, the world shipping market is facing a series of crises such as the reduction of supply, and these crises are also the dilemma faced by Chinese shipping companies. Through the analysis of the important index BDI of the international shipping market, this paper realizes the trend of the international shipping market since the crisis of financial integration, and based on this, forecasts the international shipping market. At the same time, we analyze the important index of China’s shipping industry, China’s coastal bulk freight index (CCBFI) and China’s export container freight index (CCFI), which gives us a clearer understanding of the domestic and international shipping market situation. The business model is already suitable for the current shipping market and has reached the edge of change. Finally, based on market analysis, this paper analyzes the advantages and disadvantages of China’s shipping companies, and puts forward targeted development and transformation opinions on the disadvantages.

The Role of Sodium-alkali Waste Gas Washing and Desulfurization Technology in the Exhaust Gas Treatment of Marine Diesel Engines

to reduce the concentration of sulfur oxide in the exhaust gas of marine diesel engines, the application of sodium-alkali waste gas washing and desulfurization technology in the exhaust gas treatment of marine diesel engines is explored. First, the reaction mechanism of sodium-alkali wet washing desulfurization technology is introduced, including the absorption process model of sulfur oxide, the absorption rate equation, the equation for absorbing sulfur oxide in aqueous solution, and the process of dissolving and absorbing sulfur oxide in sodium hydroxide solution. Then, a method to improve the absorption rate of sulfur oxides is proposed. Finally, the influence of load and pH of washing solution on desulfurization efficiency is discussed. The results show that the sodium-alkali waste gas washing and desulfurization technology has a good desulfurization efficiency. The desulfurization efficiency under different loads is more than 99%, and the maximum is 99.7%, which meets the desulfurization requirements of the national heavy oil exhaust gas treatment system. The higher the pH of washing solution, the more obvious the desulfurization efficiency. The results of this research provide a theoretical basis for the development of Chinese ships.

Comparison of perceived fatigue levels of seafarers and management approaches in fatigue mitigation: Case studies from two Chinese and two European shipping companies

There is a substantial literature on fatigue among seafarers, but very little comparison of the experiences and perceptions of seafarers working for different companies and, in particular, those working for companies based in developed and developing countries. Using data from 880 questionnaires to seafarers and 60 interviews conducted with seafarers and managers, from two Chinese and two European shipping companies, this study takes a first step to addressing this gap. It reveals perceptions of higher fatigue, and poorer working and employment conditions, among seafarers working for Chinese as compared with European shipping companies. This difference was related to a relative lack of commitment from the Chinese shipping companies' managers to fatigue mitigation and a participatory approach. Overall, the findings suggest that although the merchant shipping industry has internationally regulated working and on-board living conditions, management practices and compliance standards within companies in different countries vary. International regulatory arrangements, therefore, do not result in a level playing field – which has potentially serious consequences both for seafarers' safety, health and wellbeing, and for the safety of the world's fleets and marine environments. The findings also indicate that, despite differences in degree, fatigue continues to be a significant problem across the shipping industry. Finally, ways are suggested in which stakeholders could contribute to improving fatigue mitigation and management.

Small and Medium-sized Ship Exhaust Heat Recovery Device Based on Vortex Tube Effect Verification

With the continuous development of China’s economy, the number of Chinese ships has increased year by year. The problem of low utilization rate of waste heat energy of diesel exhaust in existing small and medium-sized ships has become increasingly prominent, and the distillation method in marine desalination has high energy consumption and large equipment volume. Reverse osmosis is a serious pollution. Based on this, we designed a small and medium-sized ship exhaust heat and lightening device based on vortex tube effect. Compared with the traditional lightening technology, the design advantages of this work are reflected in the following three aspects: 1) designing the vortex tube cold and heat separation effect, achieving the step utilization of the exhaust air, reducing the power consumption; 2) the device is small in size and can save The internal space of the ship; 3) The desalination process is simple, there is no influent pretreatment process, and the environmental pollution of the chemical agent is reduced; 4) The device can provide a negative pressure environment for the exhaust port of the diesel engine, reduce the exhaust back pressure of the diesel engine, and improve the working efficiency of the diesel engine.

Opening up the Chinese shipping market 1988–2018: The perspective of Chinese shipping companies facing foreign competition

Abstract Chinese shipping industry has experienced a rapid growth in the past three decades. With the analysis of the Chinese fleet capacity and the evolution of its market share in Chinese freight market, this paper reveals that foreign shipping companies took a majority share of ocean shipping while Chinese state-owned shipping companies have the upper hand in coastal and river shipping markets. Chinese private shipping companies were squeezed to either be a subcontractor or be confined in a niche market. This paper collects data from Chinese official shipping report and Chinese academic publications. It reveals that the prosperity of China's shipping market has not enabled the emergence of strong and very competitive Chinese shipping companies when facing foreign competitors.

ANALISA RESPON INDONESIA TERHADAP MILITERISASI TIONGKOK DI LAUT CHINA SELATAN MASA PEMERINTAHAN PRESIDEN JOKO WIDODO 2014-2019

This study discusses how China is trying to assert ownership claims over some areas in the South China Sea by militarizing some areas in the South China Sea. This paper will explain how the threats from the militarization of the South China Sea carried out against the maritime security of Indonesia and how the Government of Indonesia responds to these activities. This study uses a literature study method using the concept of Conventional Detterence and Security Dilemma. This research has found that there is an impact caused by militarization conducted by China in the form of many Chinese ships entering Indonesia illegally and conducting confrontational maneuvers. The Indonesian government responded to this impact by building a military base and supporting facilities aimed only at defending the region without any maneuvering that could trigger an escalation of conflict between the two countries. Keyword: China, South China Sea, militarization, Indonesia, Natuna

Weapons Used Aboard Ming Chinese Ships and Some Thoughts on the Armament of Zheng He’s Fleet

Abstract Zheng He’s fleet fought several battles during his seven voyages to the Indian Ocean. The ships thus had to be equipped with powerful weapons. Unfortunately, the sources directly related to Zheng He’s voyages do not mention in detail the armament of Zheng He’s ships. More general information on the armament of Ming ships is, however, abundant. By examining military writings such as Qi Jiguang’s Jixiao xinshu and Mao Yuanyi’s Wubeizhi, as well as archaeological data in the form of weapons excavated from shipwrecks, this article aims to trace the development of the equipment on ships during the Ming dynasty. The article shows that ships carried a patchwork of gunpowder and non-gunpowder weapons composed of old technology alongside new technology. The use of non-gunpowder weapons also developed during the mid-Ming, with weapons specialized for naval warfare appearing and javelins replacing bows as the primary non-gunpowder weapons for long-range attacks. The article also reviews the few sources available about the weapons used on Zheng He’s fleet.

Organisational support and safety management: A study of shipboard safety supervision

AbstractShipping is a safety critical industry where operational errors may lead to maritime accidents involving property damage, loss of lives and environmental pollution. As part of the trend towards self-regulation, the International Maritime Organisation has adopted a worldwide International Safety Management Code which made ship managers responsible for workplace health and safety. This study, based on interviews in two Chinese shipping companies, examines how ship managers use ship visits to monitor shipboard safety management. Interviews with managers from company offices and crew members indicated that managerial ship visits mainly take the form of inspections that focus on low-trust surveillance and disciplinary action rather than genuine support, being based on the safe person rather than the more effective safe place approach. From the perspective of crew members, because the managers visited ships only occasionally, they were unlikely to have sound knowledge of the specific situations and work routines on their ships. Consequently, managers’ interventions for safety compliance were seen by crew members as failing to address real risk factors, and leading instead to increased workloads, psychological pressure and fatigue, the very antithesis of safety management. Meanwhile a coherent, supportive system for reducing risk remains underdeveloped in the shipping industry.

Ownership of Assets in Chinese Shipping Funds

As the importance of Chinese financial schemes in maritime business increases, and many issues on the ownership of the assets under the current Law remain obscured for international investors, this work argues that a streamlining to international practice is required; therefore, the ownership of the trust property under the shipping fund in China should be transferred to the trustee from the client. The trustee shall possess, employ, benefit, and dispose the trust property in his/her own name, which links up with China’s current property legislation, ship registration, and ship arrest regulations. The trust property under the shipping fund in China is independent of the fixed property or other management property of the trustee, the beneficiary, and the custodian. This gives full play to functional advantages of the trust system of the shipping fund, contributes to the expansion of financing channels in the shipping industry in China, guarantees the specialization and flexibility of shipping investment activities and the diversity of the investment subject, promotes development of China’s policies about the shipping industry and financial innovation, and boosts the realization of “The Strategy of National Revitalization Based on Marine Industry Development” and “The Belt and Road Initiatives” and construction of Shanghai International Shipping Center and International Finance Center.

Volatility spillover and co-movement among Chinese shipping sector stock index, oil futures price, ocean freight charge and exchange rate

This study aims to analyze the co-movement and volatility spillover among four stock markets consist of Chinese shipping sector stock index, oil futures, shipping freight and currency market. We estimate dependence among these four markets using the multivariate copula model. Then we use the VAR model and impulse response function to investigate the volatility spillover among them. The empirical results show that the Gaussian copula is the most appropriate dependence mode as the AIC and BIC of this copula are the lowest when compared to other candidate copula models. The dependence correlation coefficients show a weak volatility dependence among these four markets. In addition, the results of the VAR suggest a spillover effect from shipping stock and oil to freight market.

Motivation and Acquisition Premium: Evidence from Chinese Shipping Industry

Chen, W. and Cui, Y., 2019. Motivation and acquisition premium: Evidence from Chinese shipping industry. In: Gong, D.; Zhu, H., and Liu, R.(eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 447–454. Coconut Creek (Florida), ISSN 0749-0208.This paper studies influencing factors of acquisition premium for shipping industry in China with aspects of inner drive, inducement and success probability. It is based on acquisition theories and achievement theories, departing from earlier studies. Under the guidance of M&A Motivation, 379 acquisitions from 2010 to 2016 are empirically verified. The results indicate that the majority of higher premium in shipping industry in China are paid for promoting better enterprises development, and it is not highly correlated with agency motivation. The relationship between M&A motivation and acquisition premium revealed by the paper could contribute to a reasonable price bargain for the acquirer; meanwhile, the innovative consideration of inducement extends the set of influencing factors for acquisition premium.

The Game Theoretical Model for the “Go Global” Strategy of Chinese Ship Building Industry

Ding, S., 2019. The game theoretical model for the “go global” strategy of Chinese ship building industry. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 416–421. Coconut Creek (Florida), ISSN 0749-0208.This paper studied the “go global” strategy of ship building industry in China. This paper proposed two game models to analyze the situation faced by the ship building industry in China. The paper first considered the “country selection” problem (CS problem) to shed light on the situation when trying to find a right partner to fulfill the “go global” strategy. The results showed the conditions that guarantee the go global cooperation becomes a dominant strategy Nash Equilibrium. Then, the paper considered the “product or technology” problem (POT problem) to discuss the “go global” mode, i.e. what should be exported to the other country. The results showed that even technology export may generate more payoffs to China, the more likely cooperation mode will be the product export. Based on the results of the paper, some practical suggestions have been made to the “go global” strategy. As far as we know, this paper is the first paper which studies the “go global” strategy of Chinese ship building industry by game theory.

중국 선박금융 시장 연구를 통한 국내 선박금융 활성화

중국 선박금융 시장 연구를 통한 국내 선박금융 활성화