Shipping Companies Research Articles

Proposals on Effective Implementation of the Carbon Intensity Indication of Ships

The Carbon Intensity Indicator (CII) regulation is a short-term measure of IMO for reducing GHG emissions from ships. In addition, the 2023 IMO GHG Strategy describes that the CII regulation is anticipated to create a potential synergy effect with other measures. Accordingly, the CII regulation, which took effect in 2023, is forecast to increasingly impact international shipping and the commercial vessel market. However, efforts to improve energy efficiency and implement slow steaming for ships are insufficient to meet the CII regulation that is increasingly stringent over time. Therefore, there is a growing need for fundamental improvements in future response strategies. In this study, major causes of low CII ratings for ships were investigated from a recent consulting project that was conducted to support shipping companies in satisfying the regulation from operational and technical perspectives. Lastly, proposals to implement the CII regulation effectively and to reduce GHG emissions from ships fundamentally were made, taking into account the major causes derived from the consulting.

Comparative Analysis on the Effect of Bow Shapes on the Ship Resistance using CFD Simulation and Model Test

Shipping companies and ship owners are very concerned with reducing operating costs. One way to achieve this is by improving the hydrodynamic performance of ships, which can reduce fuel consumption by decreasing total resistance. Optimizing ship design, particularly the bow shape, is crucial for enhancing hydrodynamic performance, fuel efficiency, and operational costs. While CFD simulations have become a powerful tool in naval architecture, their accuracy and reliability in predicting hydrodynamic resistance for different bow shapes need validation through experimental data. This study employs computational tools using Fine/Marine NUMECA and model tests carried out in a towing tank. The primary objective is to compare the hydrodynamic resistance of axe bow and conventional bow shapes. Additionally, the contributions of different resistance components (residuary and friction) to each bow shape are identified and quantified. The study concludes that the axe bow shape offers notable improvements in reducing total resistance compared to the conventional bow, providing a reduction of up to 12.5%. Moreover, the residuary resistance component has a more significant effect on total resistance compared to friction resistance.

An Experimental Study to Explore the Effectiveness of a 3D Maritime Serious Game Prototype: Maritime Leaders at Sea

This paper conducts a comprehensive experimental study designed to investigate the effectiveness of a maritime serious game called Maritime Leaders at Sea (ML@S). The 3D cutting-edge prototype targets to enhance leadership and teamwork skills of undergraduate maritime students via engaging them in immersive gameplay scenarios reflective of real-world challenges at sea. Competing the ML@S sessions, the number of 76 students were included in the feedback assessment survey to assess their perceptions and attitudes on the simulated environment. The feedback is also linked to the learning analytics perspective to involve time and scoring data of players through different levels at operational scenarios. Preliminary analyses reveal promising results, suggesting a positive correlation between participation in ML@S, feedbacks after sessions, and improvements in leadership and teamwork as key competencies. It is anticipated that this study will make significant contributions towards game developers, technology start-ups, educational institutions, and global shipping companies. The implications of the study offer valuable insights for the development of future serious games aimed at enhancing essential skills of maritime human resources in dynamic and high-stakes environments.

Resource allocation choices in asset‐intensive industries

AbstractThe purpose of this study is to examine the determinants of tangible and intangible resource allocation in asset‐intensive organizations, by employing a qualitative and a quantitative study in the setting of the maritime shipping industry. First, the study employs seven in‐depth interviews to identify the firm‐specific factors that shape resource allocation decision‐making. Second, the study utilizes a unique panel dataset of public maritime shipping companies for the period 2010–2020 to empirically investigate the identified determinants of resource allocation choices. The results indicate that factors, such as firm's risk‐seeking profile, smaller size, limited cash liquidity, capability to access capital, lower cost of equity capital, higher cost of debt capital, lower level of insiders' ownership, younger CEO, and limited environmental‐related disclosures are positively affecting the number of tangible resources allocated. The findings, apart from enriching the body of literature, have some managerial implications that are discussed herein.

Improved Shipping Company Performance Created by Digital Business Transformation and Corporate Culture

The pace of digital business transformation is accelerating; digital transformation cannot be a one-time activity, so organizations must develop a continuous development mentality and culture of adapting services and systems faster and more frequently by incorporating new technologies and practices to meet customer expectations. The study aimed to analyze the effect of digital transformation on cultural transformation on the performance of shipping companies, with job satisfaction as a mediating factor. Data analysis in this study is SEM analysis with the analysis of moment structure (AMOS) program. Respondents in this study were all employees who handled ship arrival and departure permits at 39 shipping companies in South Kalimantan, totaling 367 people. Based on the Slovin formula, the number of samples used were 191. The results show that digital business transformation and corporate culture transformation can improve the quality, quantity, and reliability of shipping company performance with job satisfaction as a mediating factor. The results of the research on the performance of shipping companies that are influenced by digital business transformation and corporate culture transformation can broaden and deepen the development of the digital government readiness assessment theory of change applied in both developing and developed countries as a measuring tool for the economy of countries and companies. Keywords: shipping company performance, digital business transformation, corporate culture

Increasing maritime cybersecurity awareness through game-based learning

Abstract Increased connectivity, digitalization and emerging autonomous operations within the maritime sector are paving the road for new cybersecurity risks. Such risks are not just a technical concern, as effective awareness and training programs play an important role in increasing the knowledge of relevant cyberattacks and defences, thereby improving security practices among stakeholders. Serious games have emerged as an engaging method to train individuals, effectively communicate an understanding of emerging cybersecurity threats and promote cybersecurity culture and hygiene. This paper delves into the development process of an asymmetrical strategy game for the maritime sector. The game uses a red versus blue paradigm to educate players about critical assets of maritime operations and how they can be exploited. The novelty of this work has been to design a gameplay based on actual incidents that for instance shipping companies have been facing up until today and likely future events. We employ a design science research methodology to ensure problem relevance and utility for practitioners. The game has been designed towards a demography of students from maritime education and training institutions and professionals working in the maritime sector but should be appealing to others looking to expand their comprehension of the maritime cybersecurity intricacies as well. The game serves as a pedagogical learning tool for elevating cybersecurity awareness, preparedness and response in the maritime digitalization sphere.

Why does family motivation occur and matter? Evidence from hotel and cruise ship employees

Supporting one’s family can be a powerful motivator for employees to work hard. However, very few research has been done and has explored the reasons why family motivation matters and how it occurs. Drawing on prosocial motivation theory and action identification theory, we propose that family motivation positively influences employee resilience, particularly when intrinsic motivation and challenge stressors are low. Additionally, perceived organizational support for families enhances family motivation, which in turn bolsters employee resilience. We have collected data from hotel and cruise ship employees to test these hypotheses. Our findings suggest that family motivation significantly strengthens employee resilience, especially in the absence of intrinsic motivation and challenge stressors. Furthermore, perceived organizational family support plays a crucial role in fostering family motivation, which mediates its positive impact on employee resilience. Based on these insights, we recommend that hotel and cruise ship companies cultivate resilient employees by reinforcing family motivation and implementing family-friendly practices.

Analysis of Customer’s Continuous Use of Maritime Transportation Mobile Ticketing Application

With the rise of smartphones and internet connectivity, travellers have been increasingly seeking quicker and smoother purchasing processes. To address this behaviour, a passenger shipping company, launched their mobile ticketing app in 2018. However, despite closing offline ticketing booths in late 2023, the app adoption remains low. This research investigates factors influencing user adoption and usage of the app, employing a modified UTAUT model. A mixed-method approach utilizes questionnaires, data analysis using SPSS and PLS-SEM, and cluster analysis to identify user segments and pain points. The research analysis finds that only performance expectancy, social influence, voluntariness of use, system quality, and system quality with a moderating variable frequency of app use impact the user’s intention to continue using the app. These results are further clustered into four categories based on the DOI theory. These findings can be used by the company and other maritime transportation companies seeking to leverage mobile technology for improved customer experience and ticketing efficiency.

Toward green container liner shipping: joint optimization of heterogeneous fleet deployment, speed optimization, and fuel bunkering

AbstractContainer liner shipping companies, under the international shipping carbon reduction indicators proposed by the International Maritime Organization, must transform two key aspects: technology and operations. This paper defines a green liner shipping problem (GLSP) that integrates the deployment of a heterogeneous fleet, speed determination, and fuel bunkering. The objective is to achieve low‐carbon operations in liner shipping, taking into consideration the diversification of power systems, the use of alternative fuels in ships, and the continuous improvement of alternative fuel bunkering systems. For this purpose, we present a bi‐objective mixed integer nonlinear programming model and develop two methodologies: an epsilon‐constraint approach and a heuristic‐based multi‐objective genetic algorithm. We validate the effectiveness of our model and methods through a case study involving container ships of various sizes deployed on intra‐Asian short sea routes by SITC International Holdings Co., Ltd. The experimental results highlight the crucial role of dual‐fuel (DF) ships in the pursuit of low‐carbon strategies by liner companies, with liquefied natural gas and ammonia DF ships being the most widely used. Additionally, fuel cell (FC) ships, particularly those powered by ammonia and hydrogen, demonstrate significant carbon reduction potential. Furthermore, ships with larger container capacities have a greater cost advantage. For the GLSP, speed determination is an auxiliary decision, and the lowest speed is not necessarily the optimal choice. Decision‐makers must carefully balance competing economic and carbon emission reduction objectives, as deploying more alternative fuel ships may increase fuel bunkering and fuel consumption, resulting in a higher total operating cost.

Logistics Technology Adoption and Delivery Performance of Shipping Companies in South-West Nigeria

This study explored logistics technology adoption and delivery performance of shipping companies in South-West Nigeria. The study used a positivist research philosophy and correlational design to analyse data from 65 shipping companies in South-West Nigeria, with 20 managers selected purposefully and a structured questionnaire used as the primary instrument. The data collected were analysed using descriptive statistics while the Pearson Product Moment Correlation Coefficient (PPMCC) was used to test the formulated hypotheses. SPSS software program version 24 was used to perform the bivariate analysis. The findings revealed that Artificial intelligence adoption has a significant relationship with on-time delivery of shipping companies. The study showed a significant correlation between the adoption of Artificial intelligence, transportation technology, and warehouse automation, as well as the on-time delivery of shipping companies. The study concluded and recommended that adopting logistics technology can significantly enhance the delivery performance of shipping companies in South-West Nigeria.

Deportation at all costs? Adapting US migration policies to the First World War

ABSTRACT The 1917 US Immigration Law marks a significant turning point in migration governance as a whole. More specifically regarding deportation, it shifted from a means of border control to become a post-entry tool of social oversight. Scholars stress that this transition was not sudden and developed gradually during the pre-war decades, yet they overlook how deportation was carried out during the war years immediately preceding the reform. This article discusses how the First World War disrupted deportations to Europe, the pressures this set on migration governance and the solutions the immigration authorities came up with. Apart from legal and humanitarian aspects, the article draws attention to the logistical and financial considerations shaping formal deportation policies and how these were put into practice. It does so from the perspective of an important but much neglected go-between in migration governance: the transatlantic shipping companies. Before 1917 they carried most of the legal, logistical and financial responsibility for executing deportations. In the article I argue that under the new law, shipping companies continued to function as an essential actor in immigration enforcement. Yet, by granting more leeway to the immigration authorities to carry out deportations independently, the law marked a crucial turning point in reducing the responsibility of transport companies for migration governance.

Sustainable investing and ownership structure in international shipping companies

ABSTRACT Sustainable investing has been gaining momentum in recent years. This paper investigates the relationship between ownership structure, sustainability performance, and financial performance using a structural equation modelling (SEM) approach in the shipping sector by utilizing 56 listed shipping companies’ financial and Environmental, Social and Governance (ESG) ratings information. The results provide evidence that institutional ownership is positively associated with ESG scores, particularly from firms listed in the U.S. suggesting these investors’ consciousness in ESG investments in shipping stocks. Conversely, family ownership is negatively related to ESG ratings, while public ownership is more financially performance-driven, but not ESG-conscious. Additionally, firms with larger market capitalization tend to achieve higher ESG scores. However, this study finds no statistically significant relation between sustainability and financial performance. This research enhances the understanding of the investment behavior in the international shipping sector and has implications for investment strategy, investor relationship and policy development.

Prepare for the sustainability era: A quantitative risk analysis model for container shipping sustainability-related risks

Environmental, social, and governance (ESG) issues have attracted global stakeholders' attention, reflecting the focus of sustainability development in this sustainability era. Container shipping is confronted with a wide spectrum of sustainability-related risks during the ESG transformation. Theoretically, this research identifies 36 sustainability risks of container shipping, establishes a customised evaluation framework for container shipping sustainability risks, and quantifies the risks regarding their threatening levels. The five most threatening risks are ‘reinforcement of international emission control policy’, ‘global climate change’, ‘shipping equipment failure’, ‘fuel price volatility’, and ‘ship violates the emission control policy in port area’. The results show that the long-term likelihood as well as environmental and profit impacts of sustainability risks are the most important criteria. Managerially, this research shows that environmental risks are generally the most prioritised risks, while social risks are not significantly impactful to container shipping companies. However, among the social risks, seafarer-related risks are worth paying attention.

The link between transportation industry and transportation cryptocurrencies – A comparison among airline, rail, and shipping industries

This work examines the link between some of the most important transportation companies’ stock performance with the corresponding transportation cryptocurrencies. To do so, airlines, rail, and shipping companies’ stocks are investigated, examining for a probable link with the transportation cryptocurrencies, and also investigating the attributes of this link. The variable-Lag time-series causality is employed to test the channel of causality (if such exists), and the multifractal detrended cross-correlation analysis is utilized to investigate the relationship’s attributes. According to the results, the three transportation industries differ in the way they relate to transportation-related cryptocurrencies. More precisely, the transportation industries differ in the way they relate to transportation cryptocurrencies since airlines, and railway companies affect the price of the cryptocurrencies related to transportation, and cryptocurrencies also affect in a similar magnitude these fields. On the other hand, the shipping companies have a greater effect on the cryptocurrencies, while the cryptocurrencies in very few cases affect these stocks. Finally, a long-run relationship is identified, implying that transportation companies and the corresponding cryptocurrencies are positively and long-term related. The results important because they unveil a link between the transportation companies and the corresponding cryptocurrencies, with this link differing among these industries. This finding should be taken into account in the adoption of relevant technologies from the transportation field.

Capital Destruction—What is the Cost of Carbon-Neutrality in Shipping Competition?

Abstract The shipping sector must reduce its greenhouse gas emissions. Consumers demand green travel and transport services, but shipping is still to a large extent powered by fossil fuels. One of the key factors affecting the released emissions onboard the ship is the type of fuel utilized. Technological development is making new kinds of engines running with carbon-neutral fuels available. However, the new build and retrofit projects encountering the green transition have to be planned in detail. We analyze future cash flows of ropax ships operating with different types of fuel systems on an identical route. We base our findings on calculated asset values and internal rates of return. Based on our analysis of the given scenarios, the transition to carbon-neutral fuels comes with a cost for the shipping companies. In the forthcoming shipping competition, ships using fossil fuels will be more likely than their less polluting counterparts to be categorized as stranded assets.

Uncovering the multiplex network of global container shipping: Insights from shipping companies

Shipping companies are key drivers of maritime trade and crucial in the development of container shipping networks. Each company's strategy shapes differences in port services and shipping routes, creating a complex and interconnected global container shipping network that is difficult to analyze using single-layer or aggregated models. This paper introduces a novel multiplex network modeling approach that leverages a very large set of AIS data and applies a series of structural indices to reveal the unique characteristics and multiple key roles of various shipping company networks. By applying methods such as overlap ratio analysis, HITS analysis, and community detection, the study identifies differences in overlap between ports and routes, hub and authority properties of individual ports, as well as local and regional patterns within the global network. Furthermore, it examines structural differences between the multiplex network, the aggregated network, and individual layers, highlighting the importance of multiplex container networks in understanding ports' roles on both regional and global scales. The findings clarify how different shipping companies shape shipping network patterns, enhance the multiplex network's functional roles, and provide a better understanding of the complex structure of the Global Container Shipping Network (GCSN). Finally, it provides authorities with valuable insights on how to better understand maritime shipping networks.

Analysis of the Liner Shipping Network Structure of the Asia–Europe Main Trunk Route Using Social Network Analysis

Due to COVID-19, the shipping market has faced uncertainty, and the possibility of changes in port routes has increased. The purpose of this study was to analyze the network of container liner shipping routes between Asia and Europe. In particular, this research focused on a global risky situation—the COVID-19 pandemic. The data examined encompassed Asia–Europe route schedules from January 2018 to October 2021, which exhibited significant fluctuations due to the COVID-19 pandemic originating in 2019. To access this problem, utilizing concepts of centrality from social network analysis (SNA), namely degree centrality and betweenness centrality, this analysis incorporated route capacity as a weighted factor. The findings revealed that the port of Rotterdam held the highest degree of centrality in 2018, 2019, and 2021, while Shanghai claimed the highest degree of centrality in 2020. Singapore exhibited the highest betweenness centrality. Asian ports wielded greater influence during the COVID-19 pandemic compared to European ports. Furthermore, Singapore emerged as a pivotal mediator in the Asia–Europe routes, playing a significant role within the global supply chain. Results showed that the port could be put into an unstable situation. Therefore, the managers of port and shipping companies should be ready to minimize risk. From an academic perspective, it is difficult to integrate and analyze container liner schedules as they are monthly updated. This study therefore analyzed continuous schedules to examine dynamic changes in schedules. By adopting SNA, we presented changes in connectivity over multiple periods. This study addressed questions stakeholders may have had about route changes during the global crisis, contributing to sustainable container transportation. This study provides a general understanding of Asia–Europe container scheduling for decision makers. Using market schedules, this research analyzed the connections, and evaluated and compared each port.

Exploring seafarers' knowledge, understanding, and proficiency in SEEMP: A strategic training framework for enhancing seafarers' competence in energy-efficient ship operations

With 2.89 % of global carbon emissions caused by human activity, the maritime industry faces an imminent challenge in curbing its carbon footprint despite regulatory initiatives. As the shipping sector expands, the industry faces a projected increase in carbon emissions. Recognizing the key role of seafarers in emission reduction, this article introduces a comprehensive training framework designed to enhance awareness, knowledge, understanding, and skills for implementing energy-efficient ship operations. This study utilizes structural equation modeling to assess the effectiveness of seafarers' training on energy-efficient operation of ships (EEOS) by surveying 144 seafarers across 42 shipping companies worldwide and using structured questionnaires. This study found significant positive correlations between implementing the Ship Energy Efficiency Management Plan (SEEMP) and the training programs initiated by the International Maritime Organization (IMO) and shipping companies. The results of this study indicate that traditional institutional and specialized training programs on EEOS are relatively ineffective for seafarers in implementing SEEMP onboard ships. Furthermore, the study argues that computer and simulator-based training facilitates knowledge, understanding, and proficiency of SEEMP among seafarers more effectively than the onboard training provided by the ship's master and the chief engineer. The proposed training framework emphasizes the importance of initial training using the IMO E-Learning course and IMO “Train the Trainer” programs, followed by shipping companies' in-house training by classification societies, company project teams, and simulator-based training by service providers. The study proposes a strategic training framework that encompasses in-house training conducted by shipping companies in collaboration with partners, simulator-based training provided by specialized training providers, and ongoing onboard training facilitated by the vessel's master and chief engineer, with integration of computer-based training (CBT). This strategic approach intends to improve seafarers' competence in energy-efficient ship operations to meet predetermined carbon intensity targets, which aligns with the broader goal of leading the maritime industry toward a future of net-zero emissions.

Peranan PT IMC Ship Management Selaku Auditor Internal Terhadap Safety Management System di MV. Dewi Shinta Manggala

Internal audit activities are carried out to meet and implement the Safety Management System (SMS) rules so that safety on board ships is implemented in accordance with the ISM Code. In addition, an internal audit conducted by a shipping company can minimize the findings of an external audit of the Safety Management System (SMS). The purpose of this research is to find out the implementation process, obstacles and solutions for the implementation of MV internal audit. Dewi Shinta Manggala. The method carried out in this study is qualitative descriptive. Data collection was carried out by in-depth interviews, observations, and documentation. The results of the study show that the obstacles faced in the obstacles experienced in the internal audit process are the unsuitable time between the ship's schedule and the auditor resulting in delays, crew ratings that are not optimal in implementing the Safety Management System (SMS), and the crew's understanding of the Safety Management System (SMS) on board the ship which is considered to be still lacking. So that the efforts that must be made, namely the company's internal parties communicate well with each other, the company gives strict sanctions to crews who do not optimally implement SMS, the company requires crews to attend SMS training.

Motivation and Performance Analysis of Spin-offs and Listings: A Case Study of Ningbo-Zhoushan Port

Spin-off and listing is one of the means of contractile asset operation. This paper takes Ningbo Zhoushan Port (hereinafter referred to as Ningbo Port), the first case of "A split A" of China's port and shipping enterprises, as the research object, explores the motivation of Ningbo Port's spin-off and listing of Ningbo China Ocean Shipping(Group) Company (COSCO), and analyzes the risks of the spin-off to enterprises and market investors based on some financial indicators of the parent and subsidiary before and after the spin-off. The results show that from the perspective of the overall spin-off effect, the spin-off effect of Ningbo Port is not significant. From the perspective of the realization of specific motivations, the spin-off of Ningbo COSCO by Ningbo Port conforms to the external development trend and the characteristics of the enterprise in its own mature stage. From the perspective of market reaction, the market is not optimistic about the prospect of this spin-off, and the stock price of Ningbo Port has fallen before and after the spin-off. At the same time, after Ningbo Port spun off Ningbo COSCO and listed, Ningbo Port's control over Ningbo COSCO has declined, which also makes investors worried. This study hopes to provide a reference for the spin-off and listing of Chinese port enterprises in terms of broadening financing channels and reducing market information asymmetry.