Container Shipping Companies Research Articles

Cultural differences and job performance in container shipping: a social exchange theory perspective

ABSTRACT Drawing on the social exchange theory, the objective of this study is to examine employees’ perceptions of cultural differences of container shipping companies and its impact on job performance. We also examined the role of the leadership in the relationship between cultural differences and job performance. Survey data collected from 740 employees of container shipping companies in six different countries including UK, Germany, Belgium, Netherlands, Mainland China, and Taiwan. A hierarchical regression analysis was conducted. Results indicated that transformational leadership and national cultural differences with respect to uncertainty avoidance, collectivism, and long-term orientation positively influenced job performance, whereas national cultural differences with respect to power distance and masculinity negatively influence job performance. Specifically, this research finds that transformational leadership plays a moderating role on the relationships between national culture differences and job performance. Implications for theory and practices were discussed.

Identify determinants of container ship size investment choice

ABSTRACT In one of the most capital-intensive industries in the world, the investment decisions of container shipping companies, especially concerning new ships, are crucial to the success of companies. This study investigates shipowners’ ship choice decisions and ship size preference through multinomial logit models using a dataset compiled by Clarkson Research Services Limited. The model incorporates the factors that affect ship size choice from three aspects: the internal traits of companies (company trait), the environment of the shipping market (market-driven strategy) and the performance of rivals (competition strategy). Different factors have different influences on shipping companies’ ship choice behaviour and ship size preference in different market situations. From a market-driven perspective, the high new-built ship price makes companies choose small ships. In a prosperous market, when freight rates are high, medium-sized vessels are preferred, and investment in large vessels is less likely. From the company attributes perspective, the empirical estimation shows that larger container ships are preferred by larger shipping companies. When it comes to competitive strategy, shipping companies will be more inclined to choose larger ships when they see capacity expansion among their competitors. These results confirm the nature of an oligopolistic market structure of the container market.

Exploring and Validating Container Operational Risk Scale in Container Shipping: The Case of Ethiopian Shipping and Logistics Service Enterprise

The risk associated with container shipping has been a major concern in recent decades. This study presents three major risk frameworks to systematically and inclusively explore and validate container operational risk scales based on risk factors derived from the extant literature. The three risk frameworks identified are risks related to information flow, risks related to physical flow, and risks related to payment flow. Each risk factor is grouped into sub-factors (dimensions), three factors for information flow, two factors for physical flow, and two factors for payment flow. The study uses Ethiopia as a case study and employed both qualitative and quantitative research methods. An interview survey was conducted to explore additional risk factors and validate the identified risk factors in container shipping, and a questionnaire survey was then accompanied to collect the relevant data. A pairwise comparison chart (PCC) was employed to rank the risk dimensions. The results showed that the container operational risk model is satisfactory by employing exploratory and confirmatory factor analysis. Furthermore, the PCC result indicates that risk of loss or damage of goods/assets, payment delay, and decrease in or total loss of payment were ranked first, second, and third, respectively, and consequently the most significant dimensions of the risk factors. This study provides a reliable and valid scale for measuring container operational risk in container shipping companies. It also unlocks future works for using the identified risk factors as guidelines for researchers and experts to design and develop container operational risk dimensions.

Liner sailing speed optimization considering wind and waves

This paper proposes a new sailing speed optimization problem considering sea conditions such as wind and waves for a container shipping company. Since wind and waves, as exterior factors, can reduce speed, more power is employed as compensation to maintain regular service frequency and avoid delay, resulting in additional bunker consumption and higher cost. Hence, it is necessary to optimize the sailing speed according to the wind and waves. A power model was built to determine the reduced speed caused by the wind and waves for quantifying the speed reduction. On the basis of the proposed model, we developed a mixed-integer nonlinear programming model for a sailing speed optimization problem considering the wind and waves. In view of the complexity of the function for determining the speed reduction, a discrete method is proposed to transform the proposed mixed-integer nonlinear programming model into a mixed-integer linear programming model. Finally, a numerical experiment was conducted to verify and validate the applicability.

Sustainability disclosure for container shipping: A text-mining approach

Due to the increasing focus on green consumerism, sustainability disclosure—company informing its stakeholders of its involvement in sustainability—is an integral part of stakeholder management. Nevertheless, the sustainability reports published by container shipping companies exhibit unique structures and content. Existing sustainability disclosure frameworks are generic and do not cater to B2B industries, such as container shipping. Moreover, limited studies have been conducted to explore the sustainability disclosure framework of the container shipping industry. With a hierarchical unsupervised text-mining method, the latent information of major listed container shipping companies' sustainability reports has been explored. A unified framework is produced comprising three primary dimensions: employee training and management, sustainable business management, and sustainable shipping operation. Each primary dimension has three secondary sub-dimensions. Theoretically, this research uncovers themes and patterns on how container shipping companies disclose sustainability. Managerially, this research guides container shipping companies on preparing and organizing sustainability disclosure. For regulators, policymakers, and global investors, this research also provides implications on evaluating container shipping companies’ sustainability performance and serves as a benchmark against broader sustainability goals such as sustainable development goals (SDGs).

Financial and Economic Indicators of Shipping Companies in 2010-2019 Years

Financial and Economic analysis of shipping companies conducted based on main maritime industry segments - Crude Oil, Products, Liquefied Natural Gas (LNG), Dry bulk commodities and Container cargo. Each of them is represented as one or several companies, which are the leaders in these business sectors. The revenues of shipping companies specialized in crude oil and product transportation have been increased significantly in 2010-2019 years, which was a result of increasing ship quantities and tonnage as well as income from time-charter. Stability can be seen in the revenues of liquefied natural gas shipping companies. The growth rate of container shipping company income was comparatively low. Moreover, the share of voyage costs have been increased in bulk commodities transportation in 2010-2019 (From 8% to 25%), decreased operating expenses, amortization of assets, charter and general costs. In the cost structure of liner shipping companies’ transportation and terminal expenses have been increased (From 10% to 26%), while the share of fuel, charter and logistics costs have been decreased. The high and stable profitability incurred in liquified natural gas transportation field as well as in oil shipping transporation with modern, new and large size oil tankers. The dry bulk and liner shipping companies were characterized with sharp unsteadiness and comperatively low profitability. The crude oil and product shipping companies had positive financial results in 2014-2016 and 2019 years, in other years they reported loss. The liquified natural gas transportation companies had a stable profit. Within the same period, dry bulk shipping companies were characterized with the lower or even unprofitability. Container shipping companies had unsteady financial results, in particular their net profit was peaking in 2010, 2014 and 2018 years and ended up with loss in 2011 and 2016 years. Keywords: The revenues of shipping companies, voyage costs, operational costs, charter costs, bunker costs, terminal costs, intermodal costs, port costs.

Talent management related concepts and debates in container shipping industry by an emerging market perspective

Talent management (TM) is referred as a young and developing field and it is claimed to be require more contribution from the different industry and country perspectives. Because of the highly dynamic and competitive nature of the container shipping industry, possession of valuable and unique human capital assets is evaluated as a substantial necessity to achieve business objectives and sustained competitive advantage by container shipping companies. Accordingly, TM is considered to be an essential factor contributing the accomplishment of these goals and the successful implementation of corporate strategy. Therefore, this study aims to contribute the development of TM field by investigating and evaluating TM related concepts and debates in Turkish container shipping industry. Through this extent, a combined method of content analysis with in-depth interview, has been organized to analyse TM oriented subjects in container shipping industry.

Optimizing freight rate of spot market containers with uncertainties in shipping demand and available ship capacity

Liner container shipping company satisfies container shipping demand from both long-term contracts and spot market. Different from the shipping demand from long-term contracts whose freight rate is usually negotiated between the shipping company and the customer, the freight rate of the spot demand is usually determined by the shipping company itself. This paper thus focuses on how to determine the optimal freight rate of spot containers for each origin and destination (OD) pairs of a shipping network to maximize the total profit. To further reflect industry practice, two types of uncertainties are considered, i.e., the uncertain spot demand volume due to stochastic slot booking arrivals and cancelations, and the uncertain remaining ship capacity for the spot demand after satisfying other demand types with higher priority (e.g. delayed containers). This problem is first formulated as a two-stage stochastic nonlinear and nonconvex programming model. A tailored spatial branch-and-bound-and-Benders algorithm is then developed to obtain the global optimal solution of the model. Numerical experiments also demonstrate the efficiency of the solution algorithm and the applicability of the proposed model in improving the profit from the spot shipping demand.

An empirical investigation of green shipping practices, corporate reputation and organisational performance in container shipping

This research examined the effects of green shipping practices on corporate reputation and organisational performance amongst container shipping firms. Structural equation modelling was employed in this study using survey data collected from 130 container shipping firms in Taiwan. Results indicated that green shipping practices are positively associated with organisational performance, and corporate reputation positively influences organisational performance. This research also found that corporate reputation mediates the effects of green shipping practices on organisational performance. This study suggests that container shipping companies could enhance their environmental responsibility to improve their corporate reputation and organisational performance. The implications of the findings are discussed.

An empirical investigation of green shipping practices, corporate reputation and organisational performance in container shipping

This research examined the effects of green shipping practices on corporate reputation and organisational performance amongst container shipping firms. Structural equation modelling was employed in this study using survey data collected from 130 container shipping firms in Taiwan. Results indicated that green shipping practices are positively associated with organisational performance, and corporate reputation positively influences organisational performance. This research also found that corporate reputation mediates the effects of green shipping practices on organisational performance. This study suggests that container shipping companies could enhance their environmental responsibility to improve their corporate reputation and organisational performance. The implications of the findings are discussed.

Applying Sociotechnical Systems Theory to Examine the Values of Lean Practices in the Context of Container Shipping

Research at the nexus of maritime management and operational performance suggests that lean management may benefit from sociotechnical systems theory (STS) in terms of long-term business performance. The purpose of this study is to examine the extent to which lean management practices can improve operational performance. This study aims to assess the relationships between lean policy, lean practices, operational performance, and business performance in the context of container shipping. The examined data are acquired from 212 respondents in Taiwan, and a structural equation model is employed to evaluate the hypotheses. The results show that lean policy and practice positively impact both lean social practices and lean technical practices. Lean social practices and lean technical practices are positively related to operational performance. Operational performance is associated with business performance. In particular, lean policy has a direct relationship with operational performance. Based on lean policy is easily able to directly improve its lean social practices and lean technical practices, proving lean policy can strongly push organizations towards further enhanced performance. Although it will be ups and downs along the way in terms of business performance, improving long-term business value and cost advantage is very importance. Thus, this article contributes to a more nuanced understanding of the effect of lean practices and discusses practical implications for container shipping companies.

Subjective and Objective Analysis of Schedule Delaying Factors for Container Shipping Lines

The shipper selects a suitable shipping route and plans for a voyage in order to import and export cargo on the basis of published sailing schedules. The reliability of the sailing schedule will influence the shipper’s logistics expense, which means that the logistics costs will depend on the reliability of schedules published by container shipping companies. Therefore, it is important to consider factors which can cause delays would for container ships sailing on sea routes. The reliability of published sailing schedules can be affected by a number of different factors. This study adopts the multi-criteria decision making (MCDM) method to estimate the importance of the delaying factors in a sailing schedule. In addition, the consistent fuzzy preference relations (CFPR) method is applied to identify the subjective importance (weights) of the delaying factors. The entropy weight method combined with the actual performance of the container shipping company are both used when estimating the objective importance (weights) of the delaying factors. According to the analysis results, the criteria can be divided into four quadrants with different management implications, which indicate that instructions for chase strategy, sailing schedule control, fleet allocation, transship operation arrangement and planning for ports in routes are often ignored by container shipping companies. Container shipping companies should consider adjusting their operational strategies, which would greatly improve their operational performance.

Determinants of cargo and eco-efficiencies of global container shipping companies

PurposeThis study aims to evaluate cargo and eco-efficiency of global container shipping companies (CSCs) and explore the determinants of the CSCs' efficiencies. While the former is derived from the CSCs' operational perspective, the latter highlights environmental issue related to carbon emission reduction.Design/methodology/approachIn the first stage, a two-stage double bootstrap approach of data envelopment analysis (DEA) is applied to derive bias-corrected cargo and eco-efficiency of the top ten global CSCs under the variable returns to scale assumption. In the second stage, ordinary least squares and truncated regression are applied to examine determinants of the CSCs' efficiencies.FindingsThe DEA results reveal that the cargo efficiency of the CSCs is higher than their eco-efficiency by about 2.6% under variable returns to scale in DEA. However, the bias-corrected results show that the difference is 2.9%. The overall average efficiencies suggest that the CSCs can improve their cargo (eco) efficiency by 6.9% (10.8%). In the second stage, the regression results show that the numbers of ship, return on assets and asset turnover ratio are significantly related to both cargo and eco-efficiencies, whereas the total fleet capacity positively affects cargo efficiency.Research limitations/implicationsThe results of this study can help the inefficient CSCs make strategic decisions to improve their performance. For example, their business experience and capacity may be contributing to their efficiencies. However, this study only focuses on the container market among the three main markets, namely, dry bulk, wet bulk and container.Originality/valueThis study highlights an environmental issue in the shipping industry. While CSCs are operating their cargo efficiently in general, they should also put green initiatives into their business operations for the long-term sustainability.

Exploring the cargo and eco‐efficiencies of international container shipping companies: A network‐based ranking approach

This study aims to evaluate the cargo and eco‐efficiencies of international container shipping companies (CSCs) for the period 2013–2017 for benchmarking purposes. An integration of two‐stage network directional distance function and network‐based approach in data envelopment analysis is utilized to distinguish the efficient operators. Results show that most CSCs are highly ranked in the cargo efficiency stage but lowly ranked in the eco‐efficiency stage and vice versa. This study emphasizes the strengths and weaknesses of each factor of every CSC. Results can help the inefficient CSCs find the areas for improvement by learning from their peers.

IMO 환경규제에 따른 저유황 연료유 사용이 국적 컨테이너 선사에 미치는 영향

본 연구는 IMO 2020 시행에 따른 국내외 선사의 대응전략을 살펴보고, 선사의 주요 대응방안인 저유황유로 연료를 전환할 경우 국적선사가 부담해야 할 추가비용과 그것이 선사의 수익성에 미치는 영향을 시나리오별로 분석하였다. 분석결과, 저유황유 사용 시 국적선사는 상당한 추가 비용이 발생하게 되고 이로 인해 모든 시나리오에서 영업이익 적자를 기록하는 등 수익성이 악화될 것으로 분석되었다. 이러한 결과는 대화주 운임교섭력이 약한 근해선사의 경우 연료유 가격에 탄력적으로 적용할 수 있는 합리적인 BAF 설정 기준이 필요하며, 또한 정유사, 화주, 선사 간 상호협력을 통해 상생할 수 있는 방안을 모색할 필요가 있음을 시사한다.

Cost analysis of bulk cargo containerization

ABSTRACT Bulk cargo containerization (BCC) involves changes in the transportation mode of container shipping for cargo that uses bulk carriers without packing. This topic has recently attracted considerable attention as an alternative transportation method for container cargo. BCC is advantageous because it can address imbalances in the amount of cargo conveyed between the main and back hauls, thereby improving efficiency. A previous survey among companies involved in cargo shipping revealed that in addition to ocean freight, vanning and devanning, and customs clearance costs, consignees’ decisions were the key factor in selecting transport modes. The present study aims to clarify the cost competitiveness of container shipping and identify cost reductions that may increase the use of BCC. To quantitatively check the results of the survey employed in this study, we constructed a model based on consignees’ and container shipping companies’ costs to determine the choice of transport mode for back-haul trade, then examined the incentives for consignees and shipping companies. We found that BCC can be realized by cost reduction on the part of the consignee and profit improvement on the part of the container shipping company for some routes and goods. Although reducing the freight rate would effectively promote BCC, reducing other costs would not have the same effect.

Social media usage in container shipping companies: Analysis of Facebook messages

The importance of social media is increasing rapidly in the business world as in the lives of individuals. However, business-to-business (B2B) markets have difficulties in adapting to the newest 21st-century forms of communication. This study evaluates the current social media behaviors of container shipping companies to help practitioners increase their engagement in relation to the algorithms of these platforms. After identifying container shipping companies that use social media most actively, this study analyzed their Facebook messages in terms of branding, message appeals, direct-sales, and information cues, drawing on WOM psychological motivation theory and dual process theory. The study reveals that most companies do not use social media technology, and lack clear, generally accepted social media strategies. The analysis indicates that the inclusion of emotional appeals increases the engagement level of the messages but direct-calls-to-purchase decreases. Video and photo contents produce better engagement while video content increases virality. Finally, the number of fans of these companies no longer directly affects the engagement rate of posts with Facebook's changing News Feed algorithm. This means that the current engagement rate calculation methods in the literature have become obsolete. It is recommended that practitioners closely follow the ever-changing algorithms of social media channels and should not hesitate to use social media advertising.

Empty container repositioning with foldable containers in a river transport network considering the limitations of bridge heights

Abstract River–sea intermodal transport is becoming increasingly popular for container repositioning in hinterland areas, owing to its cost-efficiency and low energy consumption. However, bridge heights and water depths may restrict the sailing of container vessels on rivers, which presents a challenge for the wider implementation of river–sea intermodal transport. In this study, we investigate the potential of foldable containers to improve empty container repositioning in river–sea intermodal transport, with consideration of bridge height and water depth constraints. A mathematical model is developed to minimize the total cost. Numerical experiments based on near-practical instances on the Yangtze River in China are conducted to test the effectiveness of the model and the efficiency of foldable containers. The results show that introducing foldable containers into empty container repositioning along a river can utilize vessel space more effectively and decrease the total cost for container shipping companies. The joint impacts of bridge heights and foldable containers on the overall performance are analyzed to obtain managerial insights. Finally, policies are suggested to facilitate the implementation of foldable containers for river–sea intermodal transport.

The Effect of Information Service Quality of Container Shipping Company on BSC Supply Chain Performance

The Effect of Information Service Quality of Container Shipping Company on BSC Supply Chain Performance

Voyage-based statistical fuel consumption models of ocean-going container ships in Korea

ABSTRACTAccurately estimating fuel consumption of ships is crucial for shipping companies, port authorities, and environmental protection agencies. The bottom-up approach is becoming increasingly popular because it can estimate ship fuel consumption by accounting for ship activity conditions, such as changes in voyage speed, time, and distance; however, its use is still limited when estimating ship fuel consumption. Ship-specific information, such as the daily fuel consumption rate for main and auxiliary engines for every vessel, is expensive to gather, and generally not collected from private shipping companies. To address this research gap, we develop simplified and composite ship fuel consumption models for ocean-going container ships by size using a regression model. To estimate the fuel consumption models for container ships, we rely on ship activity data, including average speed and sailing time, distance, and actual fuel consumption for main and auxiliary engines. This information is obtained from a major container shipping company in Korea. We estimate and validate the parameters associated with fuel consumption for five different container ship sizes, all of which are smaller than the Post-Panamax container ship (15,000 TEU and above).