Shipping Supply Research Articles

Who canvasses for cargos? Incentive analysis and channel structure in a shipping supply chain

Ocean shipping (OS) and inland shipping (IS) are vertically complementary services in the shipping supply chain. In practice, we have observed that both OS and IS companies canvass for cargos. In addition, we have observed that more and more IS companies are forming alliances to obtain a better price from the OS companies by hiring a negotiation agent. We solve the strategy matrix based on the following questions: “Who canvasses for cargos?” “Should a negotiation agent be hired?” We find that when an OS company canvasses for cargos, a negotiation agent can raise the IS service price; however, when IS companies canvass for cargos, a negotiation agent can weaken an OS company's monopolistic advantage. We show that there exists a win–win situation when an OS company canvasses for cargos without a negotiation agent and that this win–win situation is Pareto-optimal for all shipping supply chain parties. Interestingly, by comparing the equilibriums under optimal strategies and equilibrium strategies, we identify a lose–lose situation. That is, a classic Prisoner's Dilemma occurs when IS companies canvass for cargos and a negotiation agent is hired. We find that the shipping supply chain's overall profit and social welfare are maximized when an OS company canvasses for cargos and IS companies do not hire a negotiation agent.

Fuzzy Time Series Theory Application for the China Containerized Freight Index

China has evolved into one of the world’s largest trading nations. China has adequate supply for imports and exports, and therefore, major shipping companies from various countries around the world all joined this market to perform freight transport. Currently, the main method of transporting goods is via shipping. China’s containerized freight index (CCFI) is mainly used as a reference to evaluate the current freight tariffs standard. This study uses fuzzy time series to predict the CCFI. The results of our analysis found the following: 1. CCFI yield series has a volatility-clustering characteristic (the mean of the current yield is negative); 2. the R.M.S.P.E. (root mean square percentage error) value is 0.078%, indicating that the goodness-of-fit of the model is quite good; 3. future CCFI will be maintained at a low point of around 893.557, which is an optimistic long-term indication for freight; 4. currently, the supply of ships outweighs the demand, causing a long-term low CCFI. These four conclusions are hoped to serve as references for relevant policymakers in the future.

Flood risk management in Flanders: from flood risk objectives to appropriate measures through state assessment

In compliance with the EU Flood Directive to reduce flood risk, flood risk management objectives are indispensable for the delineation of necessary measures. In Flanders, flood risk management objectives are part of the environmental objectives which are judicially integrated by the Decree on Integrated Water Policy. Appropriate objectives were derived by supporting studies and extensive consultation on a local, regional and policy level. Under a general flood risk objective sub-objectives are formulated for different aspects: water management and safety, shipping, ecology, and water supply. By developing a risk matrix, it is possible to assess the current state of flood risk and to judge where action is needed to decrease the risk. Three different states of flood risk are distinguished: a) acceptable risk, where no action is needed, b) intermediate risk where the risk should be reduced by cost efficient actions, and c) unacceptable risk, where action is necessary. For each particular aspect, the severity of the consequences of flooding is assessed by quantifiable indicators, such as economic risk, people at risk and ecological flood tolerance. The framework also allows evaluating the effects of the implemented measures and the autonomous development such as climate change and land use change. This approach gives a quantifiable assessment of state, and enables a prioritization of flood risk measures for the reduction of flood risk in a cost efficient and sustainable way.

부산항국제선용품유통센터를 활용한 선용품 공동물류 운영방안에 관한 연구

The Korean Ship Supply market scale estimated at 5.7 trillion won in 2014. Much activated and related 400 of companies located in Busan, Ulsan near Busan area. But there have many companies had lower average revenue like a 2 billion won, Also the economic slump of world maritime port industry and low priced ship supply manufacture like as China and Other developing countries, those things made a gloomy situation in domestic industry. Therefore, in this study focused on Ship Supply Common Logistics for activation plan of Ship Supply Industry. And also determine which factor is most important to Ship Supply Common Logistics and analyzed AHP and IP analysis on 16 factors based on literature review. The result, most important factor was cost for Ship Supply Common Logistics.

Procedure of calculation of the characteristics of the ship supply

The algorithm of the calculation of the characteristics of the ship supply is considered with the use of the statistical data on the ships of different types, such as a bulk carrier, tanker, general-purpose cargo ship, container ship. This value has a substantial impact on the ship weight load. Consequently, determination of the characteristics of the supply plays an important role in the ships design. The aim of the study is to make the algorithm of the calculation of the characteristics of the ship supply on the basic of the statistical data. The algorithm of the determination of the characteristics of the ship supply includes the following: the algorithm of the calculation of the height from the summer waterline to the upper edge of the deck plating of the highest deckhouse and the algorithm of the calculation of the sail area. The error in the calculation of the sail area with the use of this algorithm is also determined. The results of the studies are recommended for specialists in the area of ship design, graduate students and undergraduate students of senior courses of the shipbuilding faculty.

Defining the characteristic of ship supply based on statistical data

The more precise definition of the description of ship supply by means of the statistical data on the ships of different types and depending on the transported cargo is discussed, because the description of supply has a significant influence on the weight loading under the ship design. Consequently, the analysis of the statistical data and empiric formulas which are composed on the basis of these data enable more precise definition of the supply description. The aim of the study is to build the empiric dependences which enable to define the values of the supply description components on the basis of the statistical data. The statistical analysis with the usage of the least-squares method is carried out for the following parameters: the height from the summer deep-water line to the overhead edge of the deck plate of the highest deck-house, the sail area within the limits of the ship length, considering from the summer deep-water line, etc. The empiric dependences for the ship supply description calculation are found. The results of the study are recommended for specialists in the field of the ship design, post-graduate students and students of the senior courses of the Shipbuilding Faculty. The program of the definition of supply description is drawn up using the empiric formulas.

Impact of transportation lead-time variability on the economic and environmental performance of inventory systems

Storage and transportation of goods within global supply chains is a major cause of environmental damage in modern value added processes. Thus, in the past, theory and practice developed several approaches in order to decrease these negative environmental impacts that frequently counteract the traditional efficiency-oriented ambitions. However, in many cases the economic and environmental performance can be improved at the same time. As many activities in logistics and inventory management are related to the treatment of potential uncertainties in the system by establishing redundancies, the reduction of uncertainty has equally a positive impact on both performance measures. To investigate the interrelation between uncertainty and the economic and environmental performance of supply chains, a serial inventory system consisting of a manufacturer who works with overseas suppliers and a carrier is considered, whereas the carrier is able to reduce lead time uncertainty. The relationships between uncertainties and the economic and environmental performance of the considered inventory system are highlighted by a simulation study based on empirical data from an international container shipping supply chain.

Towards a normative model for managing container shipping supply chains

This paper aims to propose a normative model and derive hypotheses for managing container shipping supply chains, with the goal to better synchronise the processes and the partners involved in practice. Formulation of the research approach follows a scientific and systematic research design, particularly conceptual theory building. A more integrated supply chain approach is useful in exploring ways to increase the competitiveness of container shipping. Total cost concept, economies of scope, demand complementarity, market power theories and obstacles to integration are applicable in explaining the evolutions in container shipping in the supply chain context. The study leads to better conceptualisation and contributes to the scant literature in an important and emerging research topic. It amalgamates, enhances and simulates multidisciplinary supply chain research. This paper contributes by developing an original normative model for managing container shipping supply chains which can serve practical and research purposes in planning, execution, monitoring and benchmarking.

Coordinated Drop Shipping Commitment Contract in Dual-Distribution Channel Supply Chain

It is a general trend for retailers to develop dual channel to serve different customers. Engaging in internet and drop shipping has raised serious awareness and attention in the retailing field. Retailers are competing for dominance from suppliers using terminal position in many industries like appliance and fast moving consumer goods. In this paper, the authors examine such supply chain context and propose the commitment contracts for the drop shipping supply chain. In a drop-shipping model, the retailer focuses on marketing and customer acquisition, so it has more customer demand information than the supplier. To optimize profit, the retailer usually sends over-estimated demand information to the supplier. On the contrary, the supplier has to design a contract to control such a behavior of the retailer. Their study is to optimize the profit of the supplier and the whole supply chain using the commitment contract that can coordinate the retailer and the supplier in dual-channel and drop-shipping supply chain. If the retailer’s order quantity achieves centralized level, the profit of the supply chain can be maximized.

Activation Strategy for the Ship Supply Industry at the Port of Busan

This study evaluates how activation plans presented by previous research are perceived by employees in the ship supply industry by sample surveys. Another objective of this study is to also assist in the selection of effective activation plans. It is becoming more and more difficult for the Port of Busan to strengthen its competitiveness in the ship supply industry by maintaining the status quo. Much research extending the scope of research subjects in the port logistics industry indicates that the development of the port logistics industry is very important for creating new value for the Port of Busan. The results shows that improvement in the retail structure and government support had a significantly positive correlation between the importance and necessity of the ship supply industry activation.

Analysis on the Generation Operation of the Three Gorges Reservoir during the Experimental Operation Period

The operation of the Three Gorges power station is of the most complex feature in China and even in the world, for it involves many factors such as flood control, power generation, shipping and water supply. This paper takes the experimental reservoir impoundment in 2008 for example, demonstrated its impact on power grid operation, meanwhile, put forward suggestions on impoundment time, impoundment target, impoundment and fluctuating process and adjusting mechanism building, etc.

Cruise ship supply chain: a field study on outsourcing decisions

The aim of this research is to investigate the supply chain of cruise companies and more specifically the factors that determine a company’s decision to outsource. For the purposes of this research, a small deluxe cruise company that offers specialised programmes and a larger mass cruise company were selected for comparison. In the first case, the company decided to outsource specific departments of their supply chain, instead of maintaining and expanding an internal corporate system while growing. In the second case the company developed its own supply chain. The results of the study revealed that cost is the top driver for outsourcing for both companies, with a clear difference between the two companies regarding the sub-criteria. This paper fulfils an identified need to study the factors that influence supply chain management criteria as well as the gravity of sub-criteria on a cruise company’s decisions.

Recent Movements in the Baltic Dry Index

T he Baltic Dry Index (BDI) is an index published daily by the Baltic Exchange in London, the leading global marketplace for brokering shipping contracts. Exchange members include companies from the international bulk-shipping industry, shipbrokers, freight derivative brokers, trading houses, shipowners, and other cargo interests.1 Every day, the Baltic Exchange asks brokers around the world the cost of booking cargo of various sizes to move raw materials across various ocean routes. The exchange uses this information to compute the BDI—an indicator of maritime transportation costs for major raw materials. The BDI has generated interest as a leading indicator of economic activity because manufacturers increase their demand for raw materials to meet expected increases in the demand for finished products.2 Likewise, a slowdown in economic activity reduces the demand for raw materials when manufacturers detect increases in unsold inventory. The BDI can be viewed as the equilibrium price of shipping raw materials, determined by the supply of cargo ships and the demand for transporting raw materials by ship. First, the supply of cargo ships is inelastic relative to demand because cargo ships are costly and time-consuming to build. In contrast, companies can simply stop booking cargo ships when demand drops. Second, the index is sensitive to changes in the price of crude oil. Fuel and port-related charges are significantly large components of the total cost of maritime shipping.3 Although port-related expenses such as dockage charges are relatively stable, oil prices are notoriously volatile. As a result, the BDI is sensitive to changes in the demand for raw materials and oil price changes. Movements in the BDI can be traced to changes in global demand for manufactured goods. In addition, this demand affects the price of crude oil, which in turn affects the cost of maritime shipping. Between January 2006 and October 2007, the BDI increased more than 400 percent, from 2,081 to 10,656 points (see chart). This steady rise was largely due to the significant growth in the global economy for manufactured products. The growth rate of total industrial production (excluding construction) for member countries of the Organisation for Economic Co-operation and Development (OECD) and six major non-members (Brazil, China, India, Indonesia, Russia, and South Africa) was more than 6 percent per annum from March 2006 to October 2007. Movements in this data series closely mirror the (lower) growth rate of industrial production of manufactured goods in the United States. Such high growth rates of industrial production around the world are likely to have also contributed to a surge in crude oil prices, which increased from $67 per barrel to $95 per barrel during the same period, thereby exacerbating the rise in the BDI. Recent Movements in the Baltic Dry Index

Global service supply chains: An empirical study of current practices and challenges of a cruise line corporation

This research paper examines solutions to the complexity of global cruise ship supply chain management through a field study of a large Florida-based global cruise company's practices in re-supplying ships globally. This field study focuses on the key characteristics of a cruise ship supply chain and the best practices in managing that global service supply chain. The methodology used for this study is a 24-month field study equally divided between time on cruise ships and time at the head office, complemented by 19 formal semi-structured interviews of directors and managers within the supply chain management department of the cruise company. The findings of this study have implications for the management of complex global service supply chains in such settings as humanitarian/emergency supply chains, and resort/tourism supply chains.

An Analysis into Speed and Schedule Stability for Container Liner Services

The rate at which vessels are loaded and unloaded has a bearing on turnaround time and therefore on the required size of the fleet. This paper shows that the loading rate also has a bearing on schedule reliability. When schedules are unstable vessel bunching can occur, leading to less frequent services operated by bunches of vessels. This greatly affects the average inventory throughout the shipping supply chain network. It is shown that schedule stability requires the loading rate to be at least twice the rate at which containers to be loaded accumulate in the yard. Analytical expressions are derived for the arrival headways variance at the second and third ports of call. This paper extends on previous work on this topic by considering both loading and unloading of containers. Countermeasures to restore schedule stability are considered.

Probability-based predictive self-healing reconfiguration for shipboard power systems

The electric power systems in US Navy ships supply energy to sophisticated systems for weapons, communications, navigation and operation. During battle, various weapons may attack a ship causing severe damage to the electrical system on the ship. This damage can lead to de-energisation of critical loads which can eventually decrease a ship's survivability. It is very important therefore to maintain the availability of power to the loads that keep the power system operational. There exists technology for ships that can detect incoming weapons. This knowledge can be used to determine reconfiguration actions which can be taken before the actual hit to reduce the damage to the electrical system when the weapon hits. Then reconfiguration for restoration can be performed after the hit to reconfigure loads de-energised by the damage from the hit. A new automated probabilistic predictive self-healing methodology to determine such reconfiguration control actions is presented. Implementation of these actions will lead to less damage caused by a weapon hit and can considerably improve a ship's chances of surviving an attack. This probabilistic approach entails three major functions: weapon damage assessment, pre-hit reconfiguration before a weapon hit for damage reduction and reconfiguration for restoration after a weapon hit to restore de-energised loads. A case study is presented to illustrate the new methodology.

The policy implications of market failure for the land-based jobs market for British seafarers

People with seafaring experience and skills are employed in the maritime sector of the UK economy in land-based jobs as well as in seagoing ones. This paper examines the balance of supply and demand in the land-based jobs market. It then considers the likely effects of a shortfall in the supply of British ships’ officers to fill net vacancies in jobs ashore, including the policy implications of this and the consequences for the economy's maritime skills base if the Government fails to act decisively now to correct market failure.

Expert-system method for automatic reconfiguration for restoration of shipboard power systems

The electric-power systems in US Navy ships supply energy to sophisticated systems for weapons, communications, navigation and operation. Faults in a shipboard power system (SPS) may occur owing to material casualties of electrical components or widespread faults owing to battle damage. These faults may interrupt the supply of electrical energy to loads that are not faulty or damaged. To enhance survivability of naval ships and meet reduced manning requirements, automatic reconfiguration for service restoration may be performed to restore the de-energised loads. The paper presents an automatic rule-based expert-system method for reconfiguration of electric-power systems on naval ships which determines the control operations necessary to restore power supply to de-energised loads after battle damage or cascading faults. A case study is presented to illustrate the effectiveness of the proposed method.

Is Liner Shipping Supply Fixed?

Liner shipping firms have long argued that the task of providing adequate service to shippers while earning reasonable rates of return on capital requires at least some form of limited antitrust immunity. Carriers contend that because scheduling requirements unique to liner shipping firms constrains their ability to adjust capacity to meet market conditions, liner shipping capacity is essentially fixed in the short term while demand is variable. And because individual firms have incentive to minimise unit costs by maximising capacity utilisation on every voyage, the threat of destructive price wars looms large. Consequently, carriers have advocated that governments leave them free to form collusive arrangements called conferences in which members are free to meet to discuss and fix prices. But how rigid is liner shipping capacity? Because of a lack of useable data on prices and capacity, this question has never been resolved empirically. But recently, new data have become available from public and industry sources that permit researchers to look more deeply into this issue. In this paper, those data are used to estimate a partial adjustment, distributed lag supply function for liner shipping services in US trade lanes. The results reveal that, on the major US import trade lanes, liner shipping supply curve exhibits more flexibility than the ‘stylised facts’ of the industry would suggest.

Chapter VIII: THE COSMOPOLITAN PERIOD: SINCE 1898

C<scp>hapter</scp> VIII: THE COSMOPOLITAN PERIOD: SINCE 1898