Christa Sys

In Search of the Link between Ship Size and Operations

Abstract Since 1990s the liner shipping industry has faced a period of restructuring and consolidation, and been confronted with a continuing increase in container vessel scale. The impact of these changes is noticeable in trade patterns, cargo handling methods and shipping routes, in short ‘operations’. After listing factors influencing size, growth in container ship size is explained by economies of scale in deploying larger vessels. In order to quantify economies of scale, this paper uses the liner service cash flow model. A novelty in the model is the inclusion of +6000-20-foot Equivalent Unit (TEU) vessels and the distinction in costs between single and twin propeller units on ships. The results illustrate that scale economies have been – and will continue to be – the driving force behind the deployment of larger container vessels. The paper then assesses the link between ship size and operations, given current discussions about the increase in container vessel scale. It is found that (a) ship size and operations are linked; (b) optimal ship size depends on transport segment (deep-sea vs. short-sea shipping, SSS), terminal type (transhipment terminals vs. other terminals), trade lane (East-West vs. North-South trades) and technology; and (c) a ship optimal for one trade can be suboptimal for another.

Digital innovation in the port sector: Barriers and facilitators

Digital innovation changes industry as a whole, and gradually also the port sector. The present article examines in detail 32 information and communications technology (ICT) innovation cases collected between autumn 2013 and spring 2015. Leading actors along the maritime supply chain were asked to indicate the importance and to assess the degree of the success achieved in each ICT innovation initiative, to identify the driving forces behind the adoption of innovation and to denote the associated costs and benefits. This input allows identifying the barriers of digital innovation from initiation through to implementation, as well as assessing the impact of facilitators of ICT innovation. To do this, the present research combines four quantitative instruments. The added value of this combined approach is a deeper understanding of the digital innovation process within the port sector. The research firstly indicates that alignment exists between company strategies and success degrees in the port sector, in contrast to non-ICT initiatives. The ICT innovation initiatives are also profit driven. Secondly, the port sector should be more open to disclose cost and benefit information and should conduct more such analyses. Next, there are conditions that improve the degree of success. Overall, terminal alignment with the right ICT infrastructure proves key. However, too many divergent interests among the stakeholders entail that digital innovation challenges the ability to cooperate. An important finding is regulation was not identified as a barrier nor as a facilitator.

A non-structural test for competition in the container liner shipping industry

This study examines the competitive conditions of the Containerized Liner Shipping Industry (CLSI). The degree of competition prevailing in this industry will be assessed using the Panzar and Rosse H-statistic. The properties of this non-structural methodology (e.g. using firm level data, robustness in small samples, no need to specify a relevant market, etc.) make it an excellent framework for assessing the degree of competition in the CLSI. The empirical specifications are based on an unbalanced panel of data regarding a sample of 18 major liner operators covering the period 1999 to 2008. A significantly positive unscaled value of the H-statistic has been found. This means that the hypothesis can be rejected that the CLSI market structure corresponds to a neoclassical monopoly, a collusive oligopoly or a conjectural variations short-run oligopoly.

Competition and the container liner shipping industry

The general objective of this chapter is to assess the competitive conditions of the container liner shipping industry. To do this, it takes a closer look at four key issues in container liner shipping: pricing as an indicator of competition, market concentration, product development and differentiation, and (de)regulation. Despite the existence of cooperation agreements, the container liner shipping industry is typically a competitive environment where supply grows stronger than demand, resulting in declining freight rates. Knowledge about the degree of competition is obtained by the calculation of two indicators (i.e. an indicator of concentration and an indicator of market share instability). The research shows that the container liner shipping industry has no need for new regulatory initiatives for the time being. What is required is adequate monitoring of the market evolution and the significant variables.

A road map for explorative scenario creation on Belgian rail freight transport development

The starting point of this article is the weak usage of rail freight in Belgium and Europe, both as a sustainable mode of land transportation in itself as well as a part of the intermodal chain. The results are obtained by transversal research on rail freight transport in Belgium, taking into account the European context. This interdisciplinary research develops a road map for the creation of three integrated scenarios: a best case, medium case and worst case scenario for rail freight development, based on a detailed SWOT (strength, weakness, opportunities, threats) analysis. It includes the most probable future developments for rail freight transport and hinterland connections. These developments are obtained from literature review and discussions with a heterogeneous panel of experts in the fields of (i) optimal corridor and hub development, (ii) macroeconomic impact, (iii) sustainability, (iv) effective market regulation and (v) governance and organization for a well-functioning intermodality. The Delphi approach is used in combination with a survey analysis. Frequency tables and the H-index allow defining a ranking and selection of SWOT elements. The obtained scenarios allow future research to quantify and measure the impact of future developments and decisions towards the Belgian rail freight market.