Maritime Economists Research Articles

Introduction

We'd like to remind you there is still time to submit manuscripts for the themed issue of the Transportation Journal (Winter 2015 issue), Transportation and Supply Chain Relations. Manuscripts for this themed issue should clearly demonstrate the roles and impacts of transportation in contemporary logistics and supply chain management. Topics for consideration include: Efficient management of transportation companiesTransportation and corporate social responsibility (e.g., environmental, societal, economic)Transportation stressors (e.g., congestion, security, energy costs)Global transportation issuesTransportation and economic development (e.g., public-private partnerships)Collaborative transportation managementTechnology in transportation management (e.g., new applications of information technology and innovations in equipment).Manuscripts for the themed issue should be submitted no later than May 31, 2014, for consideration. Please refer to www.editorialmanager.com/TransJour for author and submission guidelines. We very much look forward to your contributions, including Industry Notes, to this special themed issue of the Transportation Journal.We would like to welcome Dr. David Cantor as a new member of the Editorial Review Board. Dr. Cantor is the Dean's Faculty Fellow and Associate Professor of Supply Chain Management at the Iowa State University.The Spring 2014 issue of Transportation Journal features an array of articles examining diverse matters of motor-carrier safety enforcement, infrastructure management, and supply chain relationship management. In the first article, Corsi, Grimm, Cantor, and Wright report the economic value of regulatory safety enforcement of truck vehicles ranging in weight from 10,001 lbs to 26,000 lbs (weight classes 3 through 6). Specifically, the authors compare the costs of enforcement with the expected savings accrued from crash avoidance. Their analysis shows a positive net savings amounting to $8.86 in benefits for each dollar incurred by the Federal Motor Carrier Safety Administration in program costs. This analysis proves timely in light of the debate surrounding the enforcement of carriers operating in these weight classes in the United States. In the second article, Sweeney, Campbell, and Sweeney examine the issue of increasing congestion in the Upper Mississippi River (UMR). Through discrete event simulation analysis, the authors model shippers' responses to heightened levels of congestion in inland navigation. The work not only examines the congestion that might influence shippers to choose alternative modes of transportation or to influence changes in destinations, but also offers insights toward distinct congestion mitigation measures. The third piece, written by Grawe, Autry, and Daugherty, explores the premise of organizational implants employed by logistics service providers (LSPs), and the innovations their presence yields for customers. Their study of LSP-customer dyads reveals that logistics innovation is enhanced in relationships distinguished with implants. The innovations are attributed to heightened levels of relational social capital and knowledge exchange in relationships with implantation. In the fourth article, Gligor and Holcomb take a deeper look at the concept of integrated logistics capabilities. In particular, they measure the influence of key behavioral antecedents to logistics integration among supply chain members. In turn, logistics integration shows a positive effect on operational and relational performance among their sample of mid- and upper-level managers of North American companies.Industry Notes in this issue focuses on the maritime industry. In their article, Zhang and Lam address the effect of schedule reliability and sailing frequency in liner shipping. Using Daily Maersk as their case study, the authors show that multiple benefits result from these two actions including the substantial reduction of supply chain inventories. Even more important, these moves by Maersk have increased the service dimension of this competitive industry. The second industry note is the final paper that was selected from the 2012 International Association of Maritime Economists Conference (IAME), which was held in Taipei, Taiwan, during September 5–8, 2012, with Professor Paul T.-W. Lee of Soochow University serving as conference chair. In the paper, Wang, Cullinane, and Hu use the Gini coefficient to identify the key contributors of shipping feeding services to port development in China.The book Full Upright and Locked Position: Not So Comfortable Truths about Air Travel Today by Mark Gerchick is reviewed by Transportation Journal book reviewer Mitch Kostoulakos.

Introduction

The Transportation Journal editorial staff and the American Society of Transportation and Logistics are pleased to announce that a Best Paper Award has been established for the Transportation Journal. The 2012–13 Best Paper is “The Power and Centrality of the Transportation and Warehousing Sector within the US Economy: A Longitudinal Exploration Using Social Network Analysis” by Deepak Iyengar, Central Washington University; Shashank Rao, Auburn University; and Thomas J. Goldsby, The Ohio State University. The article can be found in the Fall 2012 (51.4) issue of the journal. A Second Place award was given to the article “Risk Management in Global Sourcing: Comparing the Business World and the Academic World” by Ila Manuj, University of North Texas. This paper can be found in the Winter 2013 (52.1) issue of the journal. A Best Editorial Review Board Award was also established. The 2012–13 Best Editorial Board Reviewer Award was given to Professor Tom Corsi, Michelle E. Smith Professor of Logistics and Co-Director, Supply Chain Management Center, University of Maryland. We congratulate all the inaugural award winners.In this issue of the journal we present articles spanning a variety of topics relevant to transportation, logistics, and supply chain management. In the first article Ke, Dresner, and Yao test location theory and inventory premises in their analysis of fuel costs and inventory levels and distribution. They empirically analyze how fuel prices impact inventory levels and dispersion in the United States for the period 1994–2006 and discuss managerial and policy implications.The lack and uncertainty of highway funding in the United States poses future threats to having an effective transportation system on which to move freight. A vehicle-mile-taxation policy is an approach that has been widely discussed as a solution for highway funding. In the second article, Krishnan et al. use qualitative research methods to analyze how public transportation agencies can inform and communicate with the general public about new transportation funding methods.Those who work in the transportation and logistics areas of supply chain management are familiar with government regulatory requirements. However, not all regulations are specifically transportation regulations. For example, legislation such as the Sarbanes-Oxley Act can have an impact on transportation and logistics operations. In this issue's third article, Srinivasan and Chandra examine the effects of Sarbanes-Oxley on the logistics industry. They discuss managerial implications for logistics companies and their trading partners.The final paper in this Winter issue is the second paper that was selected from the 2012 International Association of Maritime Economists Conference (IAME), which was held in Taipei, Taiwan, on September 5–8, 2012. Professor Paul T.-W. Lee at Soochow University in Taiwan was conference chairman and administered the review that led to the three best papers being selected for publication in the Transportation Journal. In this paper, Kim and Chang conduct an analysis of intermodal transportation in Korea with an emphasis on environmental aspects. They extend their model to incorporate various externalities arising from inland transport modes such as air pollution, congestion, accidents, noise pollution, and wear and tear, as well as compliance with carbon taxation and emission trading schemes.As for book reviews, Abbey Maggied reviewed Logistics Clusters by Yossi Sheffi, and Bruce Hartman reviewed Changing Lanes: Visions and Histories of Urban Freeways by Joseph F. C. DiMento and Cliff Ellis. The issue concludes with an index of articles published in the volume 52 issues of the journal.Looking ahead, the Winter 2015 issue of the journal will be a themed issue. The theme will be “Transportation and Supply Chain Relations.” Manuscripts for this themed issue should clearly demonstrate impact of modern supply chain dynamics on logistics and supply chain management. Topics for consideration include: Efficient management of transportation companiesTransportation and corporate social responsibility (e.g., environmental, societal, economic)Transportation stressors (e.g., congestion, security, energy costs)Global transportation issuesTransportation and economic development (e.g., public-private partnershipsCollaborative transportation managementTechnology in transportation managementManuscripts for this themed issue should be submitted no later than May 31, 2014, for consideration. Please refer to http://www. editorialmanager.com/TransJour for author and submission guidelines. More information will be forthcoming.

Introduction

The manuscripts in the Fall 2013 issue of the Transportation Journal have an underlying global theme. In the first article by Xue, Maltz, and Villalobos, the researchers evaluated and validated a freight forecasting model on an important trade corridor between the United States and Mexico. The study helps to fill the need for better forecasting of freight movement in cross-border ports of entry, and the study's findings can aid planners in making infrastructure investment decisions.In the second article by Leon, Szmerekovsky, and Tolliver, the researchers explored a new approach to airline seat allocation to global markets. While the research focused on passenger seat allocation, improving the financial strength of the global airline industry is critical in maintaining a viable global air cargo network as well.Manuj, Omar, and Yazdanparast developed a conceptual framework for interorganizational learning (IOL) in the third article of this issue. They reviewed literature and theories in logistics, supply chain management, operations, and strategic management. Given the participation of multiple organizations in supply chains, IOL has much potential for application in supply chain management.In the fourth article, Jang, Marlow, and Mitroussi explored the role of logistics service quality in generating shipper loyalty in the container shipping industry. The researchers utilize structural equation modeling to analyze the relationships among key variables. This article is the first of a series of articles from the 2012 International Association of Marine Economists Conference that will be published in the Transportation Journal.The 2012 International Association of Maritime Economists Conference (IAME), which was held in Taipei, Taiwan, September 5–8, 2012, provided a unique global conference for academics, key industry practitioners, and policymakers from diverse backgrounds and interests to meet, discuss, and debate critical and challenging issues. The conference theme of “Clustering Logistics with Ports and Shipping Services in the Time of Free Trade Era” underscores the critical interface between ocean and inland surface transportation, a theme reiterated in the selected articles. The cohosts and co-organizers of the conference, Shipping, Port, and Logistics Research Center of Kainan University, Jungseok Research Institute of International Logistics and Trade of Inha University in Korea, and Chinese Maritime Research Institute in Taiwan, attracted more than 240 delegates from 35 countries. Professor Paul T.-W. Lee at Soochow University in Taiwan was the conference chairman and administered the review that led to the three best papers being selected for publication in the Transportation Journal.In the book review section, two books were reviewed. Ralph Sees reviewed Guide to Supply Chain Management: How Getting It Right Boosts Corporate Performance, which was authored by David Jacoby, and John Spychalski reviewed Territorial Implications of High-Speed Rail—A Spanish Perspective, which was edited by José M. de Ureña.

Forecasting short-term freight rate cycles: do we have a more appropriate method than a normal distribution?

General economists, as well as Maritime economists, assume that the time series they forecast follow normal distribution, and data is independently and identically distributed around the mean. This paper contests this assumption with the aid of three sets of time series: (1) The Dry Cargo Freight Index, 1741–2005: in this series the data deviate from the mean by more than three standard deviations on no fewer than six occasions, and exhibited “fat tails”; (2) The time charter freight rates for a 10-year-old, 80 000 dwt vessel from 6 January 1989 to 26 December 2008: this series also exhibits skewness and kurtosis in a leptokurtic distribution; and (3) The Dry Cargo Time Charter Index from 1971 to 2004: this series diverged from the normal distribution four times. Next, we searched more recent data for short-term cycles using the V-statistic. One cycle was found to last 4 years (2005 to 2008), which is in accordance with theory. This cycle started on 29 July 2005 and ended when it reached the (lowest) level of $4000 on 1 December 2008. A new 4-year cycle started on 1 December 2008 and is forecast to last until the end of 2010. Short-term forecasting of the cycle using V-statistic is theoretically confirmed by the theory advanced by Hampton [1990, published in 1989, ‘Analysis and shipping cycles I and II’, Seatrade Journal, 19–23. Long and Short Shipping Cycles: The Rhythms and Psychology of Shipping Markets, Monograph, 2nd ed. (Cambridge: Cambridge Academy of Transport), March, p. 66].

Maritime policy, management and research: role and potential

This special issue of Maritime Policy and Management includes a collection of the best papers presented at the recent conference of the International Association of Maritime Economists (IAME) 2005. On the basis of a review and conceptual synthesis of the six papers selected for the special issue, this paper provides a discussion of the role and potential of research in informing managerial decision-making and policy-making in the context of the maritime industry and makes recommendations for elevating the discipline-related credentials of the maritime area as a field of study.

Maritime Logistics and Global Supply Chains: Towards a Research Agenda

The derived demand for maritime transport has evolved from a demand for the possession of goods to an integrated demand for the possession of goods that have been added value, timely, reliably and cost-efficiently. This has given rise to the concept of maritime logistics, which represents the theme of the special issue of Maritime Economics and Logistics. This paper discusses the evolution of the maritime logistics concept, reviews the contributions in maritime logistics made by the best papers on the topic presented at the International Association of Maritime Economists (IAME) 2005 Conference and highlights areas for further research.

Contributions to maritime economics—Zenon S. Zannetos, the theory of oil tankship rates

This paper discusses the importance of Zannetos’ 1966 book for the development of maritime economic thought. The main contributions of the book are recounted, and the empirical work in the book is reviewed. The analysis of the present paper is a citation research on the maritime economics literature that refers to the book. Of the 42 papers in the set, about one-third refers to the book in general. A total of 35 papers refer to one or more elements of the book, with an equal number of references to: (1) the term structure of freight rates; (2) the empirical findings on the form of the supply curve; and (3) on the verification of his results. The general conclusion of the citation analysis is that, apparently, a number of elements of his work are still very valid for current maritime economics thinking, while maritime economists have disregarded several other elements. The latter seems unjustified for some of the business structure observations that are made in the book, such as the notion that the ship is the firm, and the elasticity of expectations. The former observation is the basis for virtually all empirical work in maritime economics that is based on individual contract data (all freight rate analysis is of this nature), and the second is the basis for the analysis of investment behaviour in shipping, investigations of cyclicality and so on. Zannetos can definitely be seen as the initiator of the important field of term structure analysis in maritime economics. In addition to this, there are several topics in the 1966 book that are as yet unexplored, and deserve empirical scrutiny.

Impact of Transport Costs on International Trade: The Case of Spanish Ceramic Exports

This paper aims to investigate the determinants of maritime and overland transport costs and the role they play in deterring trade across countries. We estimate a transport cost function using data on maritime and overland transport of the ceramic sector (tiles) obtained from interviews held with Spanish logistics operators. We also study the relationship between transport costs and trade and estimate an import demand model for ceramic products. Additionally, we present a discussion on the sensitivity of trade flows and transportation costs to the existence of back-hauling, special conditions for transport and number of reloads.1 The study of modal transport (overland versus maritime) and its differential characteristics are of relevant interest for maritime economists and should be taken into account in economic policy-making. Furthermore, the proven impact of infrastructure on transport costs and trade points towards the importance of investing in new port infrastructures as a way of fostering trade and income. Our results from the transport cost estimation show that higher distance and poor partner infrastructure lead to a notable increase in transport costs. Inclusion of infrastructure measures improves the fit of the regression, thus corroborating the importance of infrastructure in determining transport costs. The distance coefficient remains significant and with similar magnitude when we add infrastructure variables. Our results from the trade equation estimation show that importer income, as expected, has a positive influence in bilateral trade flows. Higher transport costs significantly deter trade, and distance does not appear to be a good proxy for transport costs in the ceramics sector.

The Economics of Container Transhipment in Northern Europe

Traditionally, maritime economists, ports and shipping lines have considered container transhipment to be more expensive than direct call services, mainly by virtue of the extra feeder costs and container lift charges involved. This seems contrary to ongoing industry developments, with transhipment hubs now quite common in most major regions. Here, modelled costs for transhipment in northern Europe have been estimated and compared with an alternative multiport service. The conclusion is that transhipment can offer substantial operating and capital cost advantages compared with multiport direct call services. The explanation for transhipment advantages relates to diseconomies both at sea and in port associated with multiport style itineraries, coupled with container handling cost and productivity advantages pertaining to pure transhipment terminals, added to enhanced feedership economies of scale. In line with a move towards hub–hub shuttles and associated feeder services, these results indicate that further developments might be expected in regard to offshore transhipment hub terminals being provided as low-cost container transfer points for very large vessels. Policy makers need to be aware of the net benefits, both ecological and economic, resulting from increased use of offshore transhipment terminals as an alternative to continued artificial development (and duplication) of big ship container terminal capacity within constrained traditional port locations, and any requirement for support thereof.

International association of maritime economists 1997 international conference 22–23 September 1997 London, United Kingdom

International association of maritime economists 1997 international conference 22–23 September 1997 London, United Kingdom

Economic problems of shipbuilding and the state

† Presented to the Maritime Economists Conference 1 April 1985 at City of London Polytechnic.

National Maritime Economists Conference

(1983). National Maritime Economists Conference. Maritime Policy & Management: Vol. 10, No. 2, pp. 123-123.

National Maritime Economists Conference 24–25 May 1982 at Ealing College of Higher Education, London

National Maritime Economists Conference 24–25 May 1982 at Ealing College of Higher Education, London