Container Shipping Companies Research Articles

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.

Performance measurement of international shipping companies before and during COVID‐19: A DEA Malmquist index and window analysis approach

AbstractFor the past several decades, the container shipping industry has grown rapidly. As a result, container shipping companies (CSCs) play a vital role in the global cargo transportation market. Thus, measuring the efficiency of CSCs is a primary concern of managers and practitioners. When the COVID‐19 pandemic broke out, the industry was severely disrupted and presented with unprecedented challenges. For this reason, evaluating how CSCs performed and learning the practices they took to achieve successful business results during this period have become necessary. To serve that purpose, this article used a hybrid method that combined data envelopment analysis Malmquist index with window analysis to analyze the world's nine leading CSCs' performance over time and their efficiency relative to each other, using data collected within a 5‐year period from 2016 to 2020. Our findings revealed different characteristics and trends in efficiency among these CSCs in terms of technical efficiency change, technological change, and total productivity change. Then, managerial implications were discussed to understand the best practices of successful CSCs as well as the circumstances in which some of them underperformed during this time. In closing, the study summarized a fact‐based guideline CSCs could take as management reference should a similar crisis occur.

LEGAL POSSIBILITIES FOR CREATING A SINGLE OPERATOR FOR THE TRANSPORTATION OF CONTAINERS BY RUSSIAN COMPANIES ALONG THE NORTHERN SEA ROUTE

Purpose of the research. This article discusses current issues of organizing the transportation of container cargo by a Russian operating company along the Northern Sea Route. The advantages of using the Northern Sea Route as an international transport and logistics corridor have been identified. The problems of organizing and implementing the transportation of containers along the Northern Sea Route have been identified. A scheme for legal regulation of the activities of a Russian operator for the transportation of containers along the Northern Sea Route has been developed. Results. It has been established that in the Russian Federation there is a necessary system of legal regulation of the functioning of the operator for the transportation of containers along the Northern Sea Route, which makes it possible to create a state-owned Arctic Container Shipping Company on the basis of the Rosatom, which will be a national operator for the transportation of containers and will be able to most successfully and efficiently establish a Unified a system for transporting container cargo along the Northern Sea Route.

The Impact Of Digital Trust On Customer Satisfaction And Loyalty (The Case Of Digitalization In Container Shipping Services In Indonesia)

The COVID-19 pandemic has driven digital transformation in many industries. Digitalization is also developing and affecting non-technology industries, including the cargo shipping industry with containers using ships in Indonesia which is experiencing digitalization changes in its services and operations. Indonesian container shipping companies have prepared strategies to maintain long-term relationships by increasing customer satisfaction and loyalty through digitalization. The purpose of this study was to determine how the effect of digital trust compared to service quality on customer satisfaction and loyalty. Qualitative data collection was conducted across 152 freight forwarding companies with respondents working in operations, customer service, sales, and marketing departments. The hypothesis is tested using a structural equation model (SEM). The research found that digital trust has no direct relationship with customer loyalty; But when mediated by customer satisfaction, digital trust affects customer loyalty. Service quality remains a determinant of customer satisfaction and loyalty. This research presents the influence of customer loyalty not only through traditional service quality but also digital trust in the modern era, which is still relatively new in the container shipping industry in Indonesia.

A Bayesian network model for container shipping companies’ organisational sustainability risk management

Serving as the backbone of the international trade, the shipping industry is transforming towards sustainability or environmental, social, and governance (ESG). However, this transformation towards sustainability can cause new and complex challenges and risks to the shipping companies given that the shipping industry is a traditional B2B industry. This research identifies 45 sustainability risks confronted by container shipping companies comprising economic, social, and environmental perspectives. A Bayesian network model is developed to assess the container shipping company’s overall sustainability performance. Mitigation strategies are also designed. Theoretically, this research establishes a customised evaluation and mitigation framework for container shipping companies’ sustainability risks considering a decision maker’s risk appetite. The five most influential risks are ‘weak organisational governance’, ‘insufficient seafarer training & education’, ‘weak social sustainability culture’, 'maritime accident', and ‘weak environmental sustainability culture’. Managerially, this research shows that the most cost-effective solution for container shipping companies is to implement or improve internal control mechanisms.

Cruising to Success: Unveiling the Financial Harmony of Container Shipping Firms through Total Quality Management and Service Excellence

Background: This paper revolves around a meticulous exploration aimed at discerning the impact of total quality management (TQM) and service quality (SQ) practices upon the financial performance (FP) of firms within the container shipping industry. Our pursuit extends further, delving into the intricacies of SQ as a potential mediating factor in the TQM–FP relationship. This distinctive study investigated six TQM practices in conjunction with five SQ factors, analyzing their impact on firm FP. Methods: This study used a quantitative research approach. Data were collected through a structured questionnaire from logistics specialists and experts in the shipping field. Results: The findings were interesting and showed that two TQM practices—managerial leadership and employee involvement—have a significant positive effect on SQ levels, and one SQ dimension, namely responsiveness, has the biggest and most significant effect on the FP of container shipping companies. Furthermore, SQ mediates the relationship between TQM and FP. Conclusions: This study provides a theoretical contribution by developing a conceptual model that elucidates the correlation between TQM practices and the degree of SQ on the FP of container shipping firms. Moreover, this study provides managers with a tool for identifying, prioritizing, and improving key TQM and SQ practices that contribute significantly to financial success.

DETERMINANTS OF FINANCIAL EFFICIENCY IN CONTAINER SHIPPING INDUSTRY

The purpose of this study is to identify the industry-specific factors affecting the return on sales ratios of 11 leading container shipping companies that are partners in the growing global trade. The study analyzes the financial data of non-publicly traded container shipping companies for the years 2010–2021 using panel data methodology. The data used in the analysis were obtained from the annual financial reports published by each company on its corporate website. The results show that, in contrast to the leverage and operating size factors, the fixed asset ratio, EBIT, and receivables turnover ratios have a positive effect on the return on sales ratios of container shipping companies.

A longitudinal study of seaport selection: the perspective of container shipping companies

PurposeCompetition among seaports is rapidly increasing due to various factors such as the global recession, resurgence of COVID-19, tight environmental regulations of IMO, sharp rise in ocean freight charges, increasing global uncertainties and growth in ship sizes. It is essential to have precise knowledge of shipping companies' port selection factors to secure the competitive advantage of seaports. This study aims to empirically analyze recent changes in the importance of port selection factors.Design/methodology/approachBy employing a longitudinal study, this study conducted the t-test analysis. The first survey was conducted from January 2005 to April 2005. Then, the second survey was conducted in May 2021.FindingsFirst, the importance of port facilities (berth length and the number of berths, shed and terminal areas, possession of adequate equipment and maximum berth size) increased significantly. Second, while ship and cargo safety were the critical port service factors in previous studies, speed, flexibility and reliability for handling cargo and berthing schedule were found to be crucial in this study. Third, the importance of ship arrival/departure frequency, route diversity and ship arrival/departure information systems increased when shipping companies selected the port.Originality/valueThis study has academic significance in that it reveals the changing importance of port selection factors in the 2020s and has taken the form of a longitudinal study on the importance of port selection factors from 2005 to 2021, moving beyond the cross-sectional approach. This study can provide valuable insights into and implications for port policymakers and managers when developing and formulating port policies and strategies.

Efficiency analysis technique with input and output satisficing approach based on Type-2 Neutrosophic Fuzzy Sets: A case study of container shipping companies

This work tries to discuss and evaluate the advantages and superiorities of the extended Efficiency Analysis Technique with Input and Output Satisficing (EATWIOS) method based on Type-2 Neutrosophic Fuzzy Numbers (T2NFNs). The suggested model is maximally stable and robust by considering sensitivity analysis results which demonstrates a new performance analysis approach based on T2NFN sets. The proposed model deals with the input and output criteria and considers existing uncertainties arising from insufficient information and the dynamic structure of the industries. The model's basic algorithm has a unique structure compared to the previous performance analysis technique, and it does not require applying additional weighting techniques to identify the criteria weights. To the best of our knowledge, the extended version of the EATWIOS technique based on the T2NFN set is presented for the first time. The developed model provides reasonable and logical results to practitioners because it deals with satisfactory outputs instead of optimal outputs. This model is an immensely strengthened version of the EATWIOS technique, as the T2NFN sets treat predictable and unpredictable uncertainties. The suggested T2NFN-EATWIOS is then applied to a real-world assessment problem in the container shipping industry. The obtained results are pretty reasonable and logical. Moreover, the results of a comprehensive sensitivity analysis with three stages approve the robustness of the suggested model.

System Reliability Analysis for a Stochastic Liner Container Shipping Service with Stochastic Terminals

In the container shipping industry, a company could have an advantage over its competitors while its liner container shipping system (LCSS) can successfully transport the requested demand. However, some uncertainties such as unstable sea state, terrible weather, sailor’s negligence, and the condition of vessels would affect the number of slots on the vessel to place containers when shipping on different legs. Thus, that number should be regarded as stochastic. At the container terminal, containers are loaded from and unloaded to the vessel ship by the quay cranes. The number of available quay cranes at each terminal is also stochastic because of the reservation of other competitors. Therefore, this study proposes an algorithm that constructs an LCSS as a stochastic liner container shipping network (SLCSN) model to analyze the network reliability. Network reliability is defined as the probability that all vessels in the SLCSN can satisfy the demands within the time threshold. For an executive of the liner container shipping company, the network reliability can be utilized as the performance indicator to make an appropriate managerial decision.

Prediction of Operation Time of Container Ship at Berth under Uncertain Factors Based on a Hybrid Model Combining PCA and ELM Optimized by IPSO

With the rapid development of global trade, the turnover of shipping containers has increased rapidly. How to use port resources reasonably and efficiently has become one of the main challenges that ports need to deal with when planning for the future. In order to develop scientific and efficient berth plans to improve operational efficiency and service level, this paper proposes a hybrid prediction model based on Principal Component Analysis (PCA) and Extreme Learning Machine (ELM) optimized by Improved Particle Swarm Optimization (IPSO), namely, the PCA-IPSO-ELM model. After assessing the uncertain factors influencing the operation time of the container ship at berth, this work reduces the dimensionality of the investigational data by the PCA method. Aiming to solve easy premature convergence of the traditional particle swarm algorithm, this paper introduces an improved particle swarm optimization algorithm via dynamic adjustment of nonlinear parameters. This improved particle swarm algorithm is mainly used to optimize the weights and thresholds of the extreme learning machine. Thus, a PCA-IPSO-ELM model which aims to forecast the operation time of a container ship at berth, is constructed. Using the historical operation data of the Tianjin Port Container Shipping Company as the prediction sample, this PCA-IPSO-ELM model is compared and assessed with traditional models. The results show that compared with other models, the PCA-IPSO-ELM prediction model has the characteristics of high prediction accuracy, fast running rate and strong stability, and it has a higher coefficient of determination and a better fitting degree.

Evaluating Global Container Shipping Companies: A Novel Approach to Investigating Both Qualitative and Quantitative Criteria for Sustainable Development

The COVID-19 pandemic has implications for the container shipping industry and global supply chains. Measuring the efficiency of major international container shipping companies (CSCs) is an important issue that helps them make strategic decisions to improve performance, especially in the context that all businesses and governments are adapting to build back better the post-pandemic world. This paper develops a new integrated approach using both a qualitative assessment tool and a performance assessment tool as a systematic and flexible framework for evaluating the container shipping industry. This new methodology is implemented in two phases to consider both qualitative and quantitative criteria for assessing the performance of CSCs based on efficiency. In the first phase, qualitative performance evaluation is performed using spherical fuzzy analytical hierarchical process (AHP-SF) to find criteria weights and then the grey complex proportional assessment methodology (COPRAS-G) is used to find the ranking of CSCs. Qualitative variables are converted into a quantitative variable for use in the data envelopment analysis (DEA) model as an output called an output variable called expert-based qualitative performance (EQP). Then, DEA is performed to identify efficient and inefficient CSCs with the EQP variable and other quantitative parameters (i.e., capacity, lifting, expenses, revenue, and CO2 emissions). The efficiency of 14 major global CSCs is empirically evaluated, and the scores for CSCs’ efficiency in all dimensions are measured and examined. The results show that the average cargo efficiency of the CSCs is lower than their eco-efficiency performance, revealing the operational disruption caused by the pandemic. Moreover, by identifying efficient and inefficient CSCs, our findings provide practical implications for decision-makers in the maritime field and assist in modifying applicable policies and strategies to achieve sustainable performance.

Slot allocation and exchange for container shipping alliance under profit-sharing agreement and uncertain demand

Shipping alliance has become a prevalent cooperation form among major container shipping companies in recent decades. By forming an alliance, shipping companies can exchange their container slots to better satisfy the shipping demand and improve capacity utilization. This paper considers the slot allocation and exchange for a shipping alliance with consideration of profit-sharing agreement and uncertain demand. The profit-sharing agreement indicates the profit segmentation that should be kept by each alliance member among the total alliance profit. To tackle this problem, a two-stage stochastic programming model is subsequently developed to maximize the total profit of the alliance and minimize the deviation of the profit percentage of each member from the prescribed value indicated in the profit-sharing agreement. In the first stage, the number of slots allocated and exchanged within the alliance is determined. In the second stage, after the uncertain shipping demand is realized, each alliance member separately determines their container shipping plan to obtain profit. A tailored pattern-search-based solution algorithm is developed to solve the model. A series of numerical experiments demonstrate the applicability of the programming model and deliver several interesting managerial insights.

Container vessel selection for maritime shipping companies by using an extended version of the Grey Relation Analysis (GRA) with the help of Type-2 neutrosophic fuzzy sets (T2NFN)

Contrary to expectations, based on occurring changes in customer behaviours related to consuming and shopping triggered by the pandemic, the global container shipping market has continued to grow during COVID 19. Experts estimate that these increases will continue in the future due to changing consumption habits. However, container shipping companies (CSCs) may soon encounter many troubles and challenging situations. They have an extremely fragile structure and may be entirely unprotected when they encounter unexpected situations sourced from external factors. (i.e., due to grounding of a ship, complete blockage of the Suez channel for three weeks can be given as a clear example of that). Hence, selecting an appropriate container vessel type can help construct a healthier container shipping system less influenced by adverse conditions for decision-makers and practitioners. Besides, it can provide a more effective and productive maritime transportation environment for all stakeholders. However, selecting a proper container vessel type is a complicated decision-making problem since many conflicting criteria and complex ambiguities exist. The current paper proposes an extended version of the GRA technique with the help of type-2 neutrosophic fuzzy sets (T2NFN) for capturing and processing uncertainties better than the traditional MCDM frameworks. According to the obtained results, C6, container carrying capacity, is the most influential criterion and the type of post-Suezmax container vessel is the best option for the CSCs, as it provides advantages at a satisfactory level for almost all criteria than others. After the proposed model was applied, a comprehensive sensitivity analysis (SA) was performed to test the validity of the T2NFN GRA approach. The results of SA approve the applicability, effectivity, and robustness of the model.

Strategic Crisis Response of Shipping Industry in the Post COVID-19 Era: A Case of the Top 10 Shipping Lines

Shipping has played a pivotal role during the epidemic, ensuring that the global logistics functions without disruption. COVID-19 hit various industries around the world, and shipping was no exception. How the shipping industry responds to the crisis and simultaneously shoulders its respective responsibility in the world’s battling the crisis is thus worth exploring in depth. This study takes the top 10 global container shipping capacity liners, which account for 84.7% of the worldwide capacity, as research objects. A corpus for text analysis was constructed collecting press releases and advisories issued on official websites of these 10 container shipping companies from January 2020 to July 2021. Comparison studies were made horizontally among ten shipping companies and longitudinally for crisis evolution patterns into three sub-corpora of Pre/early-Crisis, Crisis-in-Progression, and Post-COVID-19-Era. Quantitative findings were explored and elaborated further under a comprehensive theoretical framework integrating crisis management and communication, corporate social responsibility (CSR), and maritime management (MM). The extracted positive and negative keywords revealed textual characteristics and emergency response strategies on the part of shipping lines in the Pre/early-Crisis, Crisis-in-Progression, and Post-COVID-19-Era. The inclusion of the themes of pursuing sustainability in the shipping lines’ responses to such worldwide crisis as COVID-19 is out of the common knowledge of crisis management but reveals the commitment and strategies on the part of the industry. The findings provide a reasonably comprehensive picture of the efforts made by large container shipping companies to respond to COVID-19 and the measures taken to soothe stakeholders. This paper extends and relearns crisis management, CSR, and MM theories through integrating the fulfilling of cooperate social responsibilities in maritime management as the cooperate crisis responses, thus proposing the integrity of the three topics. Moreover, management recommendations are provided for shipping company management, IMO, and port authorities.

A methodological framework for quantitative risk analysis in container shipping operations

PurposeContainer shipping is a crucial component of the global supply chain that is affected by a large range of operational risks with high uncertainty, threatening the stability of service, manufacture, distribution and profitability of involved parties. However, quantitative risk analysis (QRA) of container shipping operational risk (CSOR) is being obstructed by the lack of a well-established theoretical structure to guide deeper research efforts. This paper proposes a methodological framework to strengthen the quality and reliability of CSOR analysis (CSORA).Design/methodology/approachFocusing on addressing uncertainties, the framework establishes a solid, overarching and updated basis for quantitative CSORA. The framework consists of clearly defined elements and processes, including knowledge establishing, information gathering, aggregating multiple sources of data (social/deliberative and mathematical/statistical), calculating risk and uncertainty level and presenting and interpreting quantified results. The framework is applied in a case study of three container shipping companies in Vietnam.FindingsVarious methodological contributions were rendered regarding CSOR characteristics, settings of analysis models, handling of uncertainties and result interpretation. The empirical study also generated valuable managerial implications regarding CSOR management policies.Originality/valueThis paper fills the gap of an updated framework for CSORA considering the recent advancements of container shipping operations and risk management. The framework can be used by both practitioners as a tool for CSORA and scholars as a test bench to facilitate the comparison and development of QRA models.

Digitalizing Maritime Containers Shipping Companies: Impacts on Their Processes

Key analysts are emphasizing the importance of the digitalization especially of the supply chain. This work aims to improve maritime shipping companies by introducing digitalization in their operations. This objective is achieved analyzing the impact of maritime container shipping companies’ digitalization. This analysis requires as input the Business Process Model (BPMo) and an inventory of digital applications to verify how the BPMo changes when deploying the applications, define the prerequisites necessary for this deployment, and identify the key performance indicators (KPIs) to track it. The impact of the deployment of the applications has been quantified by using four performance dimensions: Costs, Time, Quality, and Flexibility. The results show that the impacts are different per application, with changes in the processes, the addition of new ones, and the decommissioning of others. The impact of digitalization is high when trying to deploy all the applications at the same time. Companies can leverage this work, which requires reviewing the documented impacts in their processes and the applications’ prerequisites as well as updating their existing balanced scorecard, incorporating the application’s KPIs. A list of 10 applications has been identified as “quick wins”; then, applications can be the starting point for digitalizing a company.

Holistic risk assessment of container shipping service based on Bayesian Network Modelling

Container shipping makes significant contribution to the global economy and is confronted with various hazards and risks especially during the COVID-19 pandemic. These risks can disrupt resilient container shipping service, leading to further deterioration of the global economy. Hence, it is vital to develop resilient container shipping service, which is associated with being on-time, safe, and hassle-free. Theoretically, this research identifies 28 root risks using the PESTLE framework, conducts risk assessment using a hybrid method comprising failure modes and effects analysis, evidential reasoning, and rule-based Bayesian network. A three-hierarchy Bayesian network model is established. The results reveal that economic, political, and technical risks are the most threatening risks affecting resilient container shipping service. Moreover, the holistic container shipping risk is most sensitive to environmental risks. Managerially, this research provides container shipping companies with guidance of drafting risk mitigation plans with economic risks and political risks as priorities.

Monopoly in the container shipping market: an econometric approach

PurposeSince the 2010s, market conditions for container shipping companies have been deteriorating owing to decreasing container cargo trade and increasing supply capacity. This study aims to contribute to the empirical literature on the container shipping industry market structure. Specifically, this study aims to investigate the extent of market competition.Design/methodology/approachThis study analyzes the market structure and evaluates the market power of shipping companies through a non-structural test.FindingsThe H-statistic for the entire period of 2004–2018 was 0.37, which is significantly different from zero. This indicates the absence of monopoly pricing throughout the entire period. For the time-phased estimates, the H-statistic between 2004 and 2008 is 0.15, which is not significantly different from zero. On the other hand, the H-statistic from 2009 to 2018 was 0.40, which differs significantly from zero.Originality/valueAs the Far East Freight Conference had released tariffs and charge rates by item for container shipping routes, monopolistic pricing is said to have appeared until the European Union abolished the European Economic Community (No. 4056/86) in 2008, before the economic crisis. However, this study indicates that pricing in the container shipping industry has been distinctly non-monopolistic; further, competition seems to have intensified since 2008. Industry competitiveness is of interest not only to academics but also to practitioners, including policymakers, especially when considering competition policies.

Intelligent container shipping sustainability disclosure via stakeholder sentiment views on social media

Sustainability disclosure has been an integral part of stakeholder management by informing a company’s stakeholders of its efforts toward sustainability. The United Nations announced 17 sustainable development goals (SDGs), which the container shipping industry shall seek to achieve. This research aims to examine stakeholders’ perceived importance of SDGs based on their reaction to and sentiment toward container shipping companies’ sustainability disclosure on Twitter and Facebook. This research reveals that in the container shipping industry, ‘clean water and sanitation’, ‘gender equality’, ‘life below water’, ‘sustainable cities and communities’, and ‘decent work and economic growth’ are the most important as perceived by stakeholders. Theoretically, this research proposes a method combining sentiment analysis and grey relational analysis to gain insights on enhancing stakeholder engagement and perception through sustainability disclosure using social media data. Managerially, this research provides guidance to container shipping companies on using social media to engage their stakeholders via sustainability disclosure.