Maritime Logistics: A Guide to Contemporary Shipping and Port Management / edited by Dong-Wook Song, Photis M. 14 Port-Oriented Logistics in Concept and Practice 243 Nikolaos Valantasis-Kanellos and Dong-Wook Song Introduction 243.
LIST OF TABLES
NOTES ON THE CONTRIBuTORS
Rickard Bergqvist is a professor of logistics and transport management at the University of Gothenburg's Faculty of Business, Economics and Law. Funda Yercan is a professor of maritime transport and logistics at the Department of Logistics Management at Gediz University in Izmir, Turkey.
PREFACE TO THE 2ND EDITION
PREFACE TO THE 1ST EDITION
PART ONE
Background
Supply chain management involves the integration of all major business operations throughout the supply chain. In general, logistics and supply chain management are concerned with the coordinated management of the various functions charged with the flow of materials from suppliers to an organization through a number of operations across and within the organization, and then achieving it. consumers (Harrison and van Hoek, 2011).
Outline of the book
However, there is still one area that needs to be recognized and developed in the effort to improve maritime logistics: the role of the human element and the human-technology interface in the various human-machine systems in the global supply chain. The growth of the amount of dry bulk transported by sea and the change in the direction of flow are some of the most important phenomena.
The changes in the traditional role of ports place the responsibility on port authorities as governing bodies of port organisations. Panayides, P (2006) Maritime logistics and global supply chains: towards a research agenda, Maritime Economics and Logistics, 8(1), pp 3–18 Song, DW and Lee, P (2009) Editors: Maritime logistics in the world.
Introduction
Perhaps the biggest proponent of this idea was the United Nations Conference on Trade and Development (UNCTAD). This UN initiative started in 1964 with the ambition to change global trade by giving the poorer countries an independent role in trade and transport (Taylor and Smith, 2007).
Ports and shipping as facilitators of trade
An exception is the work of Hummels et al (2009), who investigate the effect of the market power of shipping companies on trade reduction. Continuing with this line of thinking, it may be that some of the unfavorable treatment of developing countries by shipping lines is transferred to developed countries as well.
The practice of international shipping
There are currently 11 Incoterms, ranging from one extreme where the seller takes care of everything (delivery duty paid) to the other extreme where everything is taken care of by the buyer (ex works). In cases where the buyer and seller are part of the same company, this process can be simplified.
International trade research and non-tariff barriers
This is common practice, for example, in the trade of fresh fruit originating from the southern hemisphere. In these cases, the seller may choose to limit free time for demurrage and detention in the port of destination, as it is expensive for him.
Definition of non-tariff barriers
In order to explore the extent to which this kind of thinking has been recognized in current efforts to measure non-tariff barriers to trade, we take a closer look at these measurement efforts in the next section. In order to expand our understanding of the way in which shipping-related restrictions are viewed as non-tariff barriers, the next section describes some recent efforts to measure trade and business barriers at the global level.
Global trade barrier measurement
Within the cross-border trade category of the index (right column of table 2.3), a great deal of attention is therefore paid to the customs-related impact on documents, time and costs. For international maritime transport, such indicators already exist – the UNCTAD Liner Shipping Connectivity Index and the Transhipment Connectivity Index – which are included in the ET Index.
Summary and conclusion
We also propose developing gap measures for pairs of countries based on LPI, GDB, or ET and using these gap measures as determinants for trade patterns or trade costs. In particular, gap measurements based on some detailed transport-related elements of the LPI should shed light on how transport quality between countries plays a role in explaining trade patterns or trade costs between those countries.
Notes
However, the index and ET Index data are still displayed at the individual country level. An extension of the UNCTAD Liner Shipping Connectivity Index seems to provide a good basis for this.
03 International
In order to achieve the above objectives, the methodology in this chapter includes a conceptual description of the interrelationship of international and maritime trade within global logistics services, using world economic data and an overview of developments in the global economy, of international maritime transport by cargo type and of liner shipping connection data. The overarching aim is to explain the background of international competitiveness in maritime trade routes and cargo types between countries in maritime networks.
Logistics and supply chain management
Parallel to developments in international trade, logistics and supply chain management can rapidly transform and develop businesses. Every link within logistics activities and supply chains must be integrated to face the challenge of globalization as well as to take advantage of market conditions at home and abroad.
Logistics and transport
Therefore, logistics and supply chain management not only coordinate the activities of finished goods, they also facilitate communication, information technology, humanities and social sciences. Based on the above, the next section examines the role of the shipping industry in international trade and global logistics services.
Global trade and the maritime industry
An increase in international trade positively affects the growth of international transport services – the second largest category of commercial services after the tourism sector – due to the movement and transport of goods from suppliers and manufacturers to customers as end users. Another was the 66.7 percent annual growth in container trade between North America and Asia.
Discussion and conclusion
In summary, maritime trade in the context of international trade and logistics services has always been directly influenced by the global economy, as the majority of internationally traded goods are transported and carried by sea. Wilmsmeier, G and Hoffmann, J (2008) Liner connectivity and port infrastructure as determinants of freight rates in the Caribbean, Maritime Economics and Logistics, 10, p. 130–51.
04 Defi ning
EON-SEONg LEE, hyuNg-SIK NaM aND DONg-wOOK SONg
As the main purpose of this chapter is to systematically clarify the current situation which is being thoroughly discussed in the shipping and logistics industry, this study is an exploratory research which is supported by a comprehensive literature review.
Maritime logistics in concept
Maritime logistics definition
Maritime logistics is the process of planning, implementing and managing the flow of goods and information involved in maritime transport. The focal point Maritime logistics deals not only with individual functions related to maritime transport, but also with efficient logistics flow as a systematic entity of a logistics integration system.
The process of maritime logistics
Therefore, the performance of maritime logistics activities inevitably affects the overall performance of physical distribution management. The concept of maritime logistics value and its effectiveness is discussed in the next section.
Maritime logistics value defined
Therefore, the frontier of maritime logistics will not be limited only to shippers or shipping companies. Instead, all units in the entire logistics flow should be included as customers in the maritime logistics system.
Strategic significance of maritime logistics value
As a result, the higher maritime logistics value can facilitate the higher performance of both the individual maritime operators and the entire logistics system. In that sense, improving maritime logistics value can be considered a significant strategic consideration that maritime logistics operators should take into account in their daily operations and management.
Concluding remarks
In conclusion, this study can provide a meaningful insight into what constitutes a maritime logistics system and maritime logistics value, and the question of how to increase maritime logistics value, by systematically defining those phenomena. Future studies will need to thoroughly analyze the validity of these concepts by collecting maritime logistics data and statistically testing their suitability.
05 Hinterland
Expansion of ports' hinterland and potential for more effective and efficient hinterland systems, associated with better cooperation and coordination between actors in the supply chain, gives hinterland logistics an obvious role in the design and management of global supply chains. In order to better understand the current inland logistics systems, a brief outline of the history of inland transport is necessary.
The container revolution
Following the conceptual framework, the inland transport system is described in three sections related to design, strategy and management. A case study follows the descriptions of the inland transport system related to the case of the Scandinavian Railway Port System.
Conceptual framework
The inland transport system can be described with the help of the conceptual model developed by OECD (1992). All three components must be developed simultaneously to ensure the overall efficiency and effectiveness of the system.
Hinterland transport systems and modes of transport
There are therefore significant differences between regions and countries when it comes to the use of the various modes of transport. However, the characteristics of the different modes of transport described in table 5.1 apply to all regions.
Hinterland transport system design
It also affects customer satisfaction when transit time is part of the waiting time for customers. Given the same example of the intermodal road-rail transport chain, there could be a direct parallel road-based door-to-door transport chain for transporting suitable volumes of shipments door-to-door.
Hinterland logistics: Strategy
The reason for linking different modes of transport is that the inherited advantages of the modes can be protected at the same time as the disadvantages are minimized. After completing the direct door-to-door mission, resources are used for pickup and delivery from the terminal to end customers.
Logistics service providers
For example, road-rail intermodal transport chains can achieve cost-effective and environmentally friendly transport over long distances, while road transport enables more flexible routes and final transport to the end customer. By doing this, an intelligent transport system design is created that applies the most suitable means of transport with respect to the characteristics of the transport link.
Openness and transparency
You can choose to open the system to other users or not. The risk of highly fluctuating costs/prices for catchment transport can be limited if the owner himself controls the system and the costs.
Hinterland logistics: Management
The development of integrated inland transport has been extensive in Scandinavia over the past decade. Currently, the domestic transport system consists of 24 direct rail shuttles to domestic terminals in Scandinavia (see Figure 5.8).
PORT OF GOTHENBURG RAIL SYSTEM
In 2012, the Port of Gothenburg handled about 900,000 TEU, which means that the inland rail transport system has a market share of about 45 percent. The Port of Gothenburg expects the volumes and market share of the rail transport system to grow even further.
Hinterland logistics and its influence on global supply chains
As seaport competition does not recognize country-specific boundaries, and inland transport has become a larger part of seaport competition, there is a clear risk that the inland regulatory framework will affect the competitive interface and competitive parity between seaports.
Conclusions
Cullinane, K and Wilmsmeier, G (2011) The Contribution of the Dry Port Concept to the Extension of Port Life Cycles, in Handbook of Terminal Planning, ed JW Böse, Springer, New York. Jensen, A and Bergqvist, R (2013) Seaport strategies for preemptive market share defense under changing performance of the hinterland transport system, International Journal of Shipping and Transport Logistics, Vol 5, No. 4/5, pp 432-48.
06 Human elements
Due to the extent of the damage, the long-term restriction limited the berth's capacity from 165,000 to 100,000 deadweight. Cargo handling in ports is considered one of the most dangerous jobs (HSE, 2008; AV, 2011) and work-related mortality among seafarers remains among the highest of any occupation (Roberts and Marlow, 2005).
The human element in science and theory
The area for potential improvement in shipping systems is also indicated by the fact that despite significant work changes - where many manual and physically demanding tasks have been replaced by more monitoring and operation of automated systems and machinery and more administrative work - maritime field. still suffers from a high level of accidents at work. The Titanic, Herald of Free Enterprise, Estonia and Erica are just a few of the disasters that have resulted in mandatory measures, mainly in the area of ship design and equipment.
The areas of ergonomics
The term 'socio-technical system' refers to the interrelationship of social and technical aspects when an organization is viewed as an open system. To help the manager - or any operator of a system - it is important to design tasks and machines to highlight the perceptual cues and minimize the cognitive load, but also to ensure adequate training and work schedules.
Effects on system performance and well-being
In 2008, deficiencies were reported in 58 percent of inspections within the Paris Memorandum of Understanding and the detention rate reached 4.95 percent. A major category of deficiencies was related to working and living conditions, representing almost 12 percent of deficiencies (Paris MoU, 2009).
Human element issues relevant for the maritime domain
TABLE 6.1 Human factors issues and their effects from a maritime perspective Human factors issues Causes and effects. Many human elements issues related to the physical environment and physical loads are believed to be best resolved if addressed early in the planning and design phase of a vessel, ensuring that the workplace design matches the tasks, abilities and limitations of the users expected.
Economic outcomes at company level
MAIB (2006) Report on the investigation into the engine failure of the Savannah Express and its subsequent contact with the moorings at Southampton Docks, 19 July 2005, Marine Accident Investigation Branch, Southampton. SHK (2007) Report on the investigation into the loss of control of the product tanker Prospero and its subsequent heavy contact with a wharf at SemLogistics Terminal, Milford Haven 10 December 2006, Stockholm, Swedish Accident Investigation Board.
PART TWO Shipping
Due to containerization, maritime transport has been connected with land, which has led to the provision of efficient intermodal transport. Finally, the outlook and future issues are addressed by reviewing and predicting the development factors affecting intermodal transport.
Characteristics of intermodal transport
Intermodal transport, which connects factories and warehouses in many parts of the world in a door-to-door manner, has become a key service for shippers such as multinational manufacturing companies operating worldwide. The third section presents typical global intermodal transport services with some examples in North America, Europe and Asia, followed by a section explaining the role of intermodal transport connectors and their services.
Definitions of multimodal transport
Definition of intermodal transport
Intermodal transport can be defined as those integrated movements involving at least two different modes of transport under a single transit rate. In this chapter, intermodal transport is defined as seamless door-to-door operations that use at least two different modes in an integrated manner.
Components of intermodal transport
In recent years, however, the term intermodal transport has been widely used, aiming at the integration of systems. There is a special type of intermodal transport that combines air and sea transport that has distinctive characteristics.
Advantages of intermodal transport
The intermodal transport route can be significantly shorter than the sea transport route depending on geographical location. This differs from other forms of intermodal transportation because conventional transportation equipment is not used.
Containerization and intermodal transport
If the transport distance is sufficient enough to achieve a saving that is more than the rail terminal cost (TCr), then switching from road/sea/road to a combination of road/sea/rail/road becomes more economical.
Introduction of ISO container
The first full container ship in the late 1950s could only carry 166 35ft long containers. In the late 1970s, the maximum size of full container ships became the Panamax container ship - the maximum ship type that can navigate the Panama Canal.
ISO containers on the road
In the second half of the 1980s, the maximum ship size became the 4400 TEU class, which could not navigate the Panama Canal. Container dimensions generally used today are 8 ft wide by 8 ft high from 8.5/20/40 ft long containers.2 It can be noted that securing an international standard in the early stages is one of the main reasons why containerization was developed so soon after.
Development of intermodal transport
Japan's road infrastructure at the start of containerization lagged behind that in the United States, and vehicle standards were smaller and lighter. However, high quality highways have gradually been developed for larger trucks loading an ISO container, and transit became possible with the installation of domestic customs areas and other improvements in the customs clearance system.
North America
MLB is a service that transports cargo to the US East Coast using transcontinental rail after it has been transported to various US West Coast ports by container ships. Each shipping company implements an exclusive summer time that matches a particular ship and competes by reducing transshipment and transportation times (Ocean Commerce, 2009).
Europe
At the port of Rotterdam, which is the largest port in Europe, 200 ship services per week arrive and depart from/to various parts of Europe, including Eastern and Central Europe, and 11 percent of the containers handled are transported by rail. In the Port of Rotterdam, river transport using the Rhine has been lively and inland water transport accounts for 30 percent of the containers handled.
Asia
In other major container ports located at the estuaries of rivers, inland navigation has become an important intermodal mode of transport. Intermodal transportation on the Yangtze River has become an important mode of transportation for the inland businesses.
Combined transport operators and their services
Its applicability is particularly high in the Yangtze River and the Pearl River Delta, and the provision of container terminals in inland areas is promoted. However, the demand for intermodal transport in the region is expected to increase due to the regional integration of Asia and the industrialization of inland areas in the future, although industries have been concentrated in the coastal areas until now.
Intermodal transport facilitators
The Chinese government concentrates on container transport using railways, arranges the container stations throughout the country, provides five fixed freight trains (with fixed arrival and departure stations, railway routes, operation numbers, arrival and departure times and fares) and builds railway infrastructure along the main routes. NVOCC is a business concept born out of deregulation in the United States, which allows the sale of ocean transportation services to shippers even if the ship is not owned.
Logistics services
The main feature of this arrangement is to meet the shippers' needs by flexibly combining the transport services of the shipping company and the land transport company. It is difficult for even large shipping companies with inland transport subsidiaries to meet all the shippers' complex needs only through the transport services that the group companies could provide.
Towards the innovative intermodal transport
Development factors of intermodal transport
The future of intermodal transport
Nittsu Research Center (2008) Logistics in China, Taiseido (in Japanese) Ocean Trade (2009) International Transport Handbook (in Japanese) OECD (2002) Benchmarking of Intermodal Freight Transport, Paris. Ono, K and Fukumoto, M (2008) Strategy and vision of trans-Asian transport network establishment, Review of Transport Policy Studies, No 41 (in Japanese) Slack, B (2001) Intermodal Transport, Handbook of Logistics and Supply Chain.
Introduction: Background on liner shipping
The chapter then provides a global view of the world liner shipping network based on vessel movement data. The changing geographic distribution of key inter-port connections is explored in light of recent reconfigurations of liner shipping networks.
Configuration and design of liner shipping services
Third, we zoom in on the position of seaports in liner shipping networks with reference to concepts of centrality, hierarchy and selection factors. The chapter concludes by elaborating on the interaction and interdependence between seaport development and liner network development, particularly under the current economic changes.
The configuration of liner shipping services and networks
Most liner services are bundled routes connecting between two and five ports of call scheduled in each of the main markets. Line bundling service Northern Europe-Far East Regional feeder services (end-to-end or line bundling).
The process of designing a liner service
A shipping company can insert time buffers in the liner service to cope with the risk of delays. The frequency of service and the total vessel round-trip time determine the number of ships required for the service.
Shipping routes, network patterns and port centrality
The distribution of container fl ows
Fast growth (over 250 percent): Latin America-Southern Europe, Latin America-Africa, Latin America-South and East Asia, Southern Europe-. Middle East, Africa-South Europe, North America-South and East Asia, South and East Asia-North Europe, North America-North Europe.
Topology and the role of distance
Overall, it could be calculated that the top 100 direct inter-port links in terms of traffic volume represented no less than 52 percent and 39 percent of global container traffic in 1996 and 2006 respectively, thus confirming a trend of deconcentration due to the multiplication of links. Shipping logistics 140 . two nodes) than other transport networks such as airlines, Ducruet and Notteboom (2012) underlined an increase in efficiency between 1996 and 2006, which is attributed to the expansion of the network as well as to the emergence of new hub ports.
The centrality of container ports
Another important trend topologically is the decreasing hierarchical structure of the network, as observed by Ducruet and Notteboom (2012) globally and by Ducruet et al (2010a, 2010b) in Northeast Asia and the Atlantic regions. Another possibility for future research would be to test the impact of the global financial crisis on the overall structure of regional and global liner shipping networks, as well as on the position of individual container ports, which would complement the classical view of shipping based on aggre. - closed freight flows between major trade routes.
09 Supply chain
Referring to the theoretical literature on supply chain management, the first section explains the concept of supply chain integration. An empirical study is then conducted to test the relationship between supply chain integration and shipping companies' performance.
Supply chain integration in the maritime shipping industry
The purpose of this chapter is to theoretically explain the importance of vertical integration in the supply chain by maritime companies and to examine the performance results of integration through an empirical study between supply chain integration and business value. The chapter then focuses on the benefits of supply chain integration, with particular reference to the performance results of shipping companies that have taken steps towards greater supply chain integration through case studies.
Supply chain integration
Supply chain integration is a key component of supply chain management and therefore an internal-external perspective is necessary to understand it (Chen et al, 2009). Their study describes an integrated supply chain model that includes information systems (management of information and financial flows), inventory management (management of product and material flows) and supply chain relationships (management of relationships between trading partners (Power, 2005).
Challenges for integrated maritime logistics systems
A key feature of supply chain integration is the presence of integrative information technologies that increase the flow of relevant information among process participants to facilitate the integration of processes that cross functional and firm boundaries (Bowersox and Daugherty, 1995; Lewis and Talalayevsky, 1997). The literature recognizes that the higher the degree of integration across the supply chain, the better a firm performs (Narasimhan and Jayaram, 1998; Johnson, 1999; Frohlich and Westbrook, 2001), while there are dangers if suppliers and customers are not fully is not integrated. in terms of their business processes (Armistead and Mapes, 1993; Lee and Billington, 1992; Frohlich and Westbrook, 2001).
The benefits of maritime supply chain integration
More precisely, the degree of integration of business processes and the effectiveness of inter-firm alliances and agreements is a contributor to a company's value chain. In many cases, to provide such door-to-door services, subsidiaries are mandated to integrate the transportation chain under the supervision of the shipping line.
Supply chain integration of shipping companies and performance outcomes
ZESCO (ship repair yard)Samol Co. renewable energy) 10CSCL China Shipping Container Lines ShanHai Puhai Shipping Xiang Zhu. In 2008, more than 40 percent of the container terminal capacity of the top 12 operators was managed by shipping companies.
The impact of supply chain integration on shipping firm performance
Concept
Dataset
Market value is the sum of the market value of equity (equal to share price at the end of the fiscal year multiplied by the number of shares outstanding) and the book value of debt. EV, in this setting, is the natural logarithm of the ratio of the company's market value to its imputed value and measures the gain or loss of supply chain integration.
Empirical results
EV compares a firm's market value to its imputed value if each of the business segments operated as a single-segment company. SCI-2 should better capture the change of supply chain integration (multi-segment firm) relative to SCI-1.
Conclusion and further research
Chen, H, Daugherty, PJ, and Landry, TD (2009) Supply chain process integration: a theoretical framework, Journal of Business Logistics 30, pp 27-46. Evangelista, P and Morvillo, A (1999) Alliances in liner shipping : a tool to gain operational efficiency or supply chain integration.
10 Logistics
