Robert J. McCalla

Strategic alliances in the container shipping industry: a global perspective

This paper examines developments in container shipping in light of the formation of strategic alliances by many of the leading companies. It focuses on three features: the transformation of services, the evolution of the fleet, and the adjustments made to the ports of call. These elements are analysed on a global basis for 3 years: 1989, 1994 and 1999. Some of the changes wrought by the alliances are identified, including the spread and intensification of services, and the deployment of the largest vessels on alliance routes. While the individual companies that have come together in alliances are serving many more ports than before, it is also demonstrated that the total number of ports served by the industry has remained constant. The results are interpreted in the context of globalization that is tending to impose greater standardization on the container shipping industry.

GLOBAL CHANGE, LOCAL PAIN: INTERMODAL SEAPORT TERMINALS AND THEIR SERVICE AREAS

Abstract The creation of global shipping alliances and the trend to post-Panamax container ships have put pressure on seaports to respond in such a way as to guarantee the continued success of intermodal terminals. This paper points out the globalisation that is taking place in container shipping and how ports are responding. Emphasis is put on terminal improvements in the form of post-Panamax cranes and on the nature of competition in the service areas of ports. Halifax and Vancouver are used as examples of ports trying to adapt in the new age of containerisation.

The Caribbean Basin: Adjusting to Global Trends in Containerization

Positioned strategically between major east–west and north–south trading routes, the Caribbean basin has become a locus of new service configurations in container shipping. Over the last decade global shipping lines have been restructuring their service networks in the region in order to integrate local services with the newly rationalized intercontinental connections. By comparing service network structures in 1994 and 2002 at three levels of organization—local, regional and global—we are able to show that although Caribbean ports are well connected to the global system, and while the total number of services has declined between the two years, those mounted by members of global alliances have increased. Moreover, services of the global carriers at the local and regional levels are on the increase. As much as the alliances are reshaping Caribbean networks, the smaller carriers are still playing a role, but at a reduced spatial scale. Parallel with the modifications to network configurations are the changes in the port system. Essentially, traffic of the most important ports in the north and western part of the basin has grown at slower rates than the ports in the south and east. These traffic changes are only partly related to network changes. It is the growth of transshipments that is driving the most important developments in port traffic and bringing to the forefront the development of hub ports. The most important are: Colon, Panama (southwest), Freeport, Bahamas (north), Port of Spain, Trinidad and Tobago (southeast), Kingston, Jamaica and Rio Haina, Dominican Republic (middle), and Cartagena, Colombia and Puerto Cabello, Venezuela (south).

An Investigation into Site and Situation: Cruise Ship Ports

Cruise ports have specific site and situation requirements. Exactly what they are will vary according to whether they are home ports, ports of call or hybrid ports. This article suggests initially that port situation should dominate port site in explaining cruise port success. Two sources of information are used to explore this thesis. First, a content analysis is applied to cruise port advertising abstracts which appeared in the 1995 Directory of the Seatrade Cruise Shipping Convention. Second, a questionnaire was sent to those ports represented at the convention asking them to rank the importance of factors considered to be site and situation related. Results from both show that ports recognise the importance of their site and situation in their promotion and operations. However, it is not universal that one factor is seen as more important than the other; although there is a tendency for situation-related factors to dominate. For example, of the 30 ports responding to the questionnaire, 19 ranked situation-related factors highest. Ports of call especially stress their situation.

From St. John's to Miami: Containerisation at Eastern Seaboard Ports

The North American Eastern Seaboard is one of the major container handling regions of the world. However, since 1975 it has declined relative to the world development of containerisation. Whereas in 1975, 20.4% of the worlds containers passed through Eastern Seaboard ports, in 1995 the figure was 7.2%. In the period 1975 to 1995, ports in Canada and the Mid Atlantic range have held their own relatively in the proportion of containers handled in the Eastern Seaboard. Ports in the North East, primarily New York, have lost ground; ports in the South have gained. Rank size analysis and the Gini coefficient show a deconcentration of container handling away from New York to middle ranked ports, especially Hampton Roads, Charleston, SC and Montreal. Global factors – universal adoption of containerisation, changing trade routes brought about by post-Panamax ships and intermodality, and cargo sharing among alliances – explain the relative decline of the Eastern Seaboard ports as a group. Individual port development is largely accounted for by how well ports respond to the global factors.

CANADIAN CONTAINER PORTS: HOW HAVE THEY FARED, HOW WILL THEY DO? /

Between 1980 and 1989 container TEUs handled at all world ports increased by a factor of 2.11. On the East Coast of North America, the growth factor was only 1.69; on the West Coast, 2.23. These growth factors, when multiplied by the 1980 TEU volume at individual North American ports, give 1989 expected performance levels for the ports. Comparing the expected performance to the actual, it is found in the Canadian context that the big winner is Vancouver; the big loser is Saint John. Halifax and Montreal have outperformed their nearest US East Coast rivals but have not performed as well as southern ports on the Altantic Seaboard. These and other comparisons are made in order to describe how Canadian container ports have performed in the decade of the 1980s. The paper then speculates on how the ports will do in the future, based on a discussion of five factors: port facilities; inland transportation connections; shipping lines serving the ports; demand for container shipping; and legal arrangements between ...

The geographical spread of free zones associated with ports

Abstract Free economic zones, national and subnational areas with relaxation of laws or regulations to attract investment and create employment, are found throughout the world. The best examples of such zones are those associated with ports in the form of free ports, free trade zones, foreign-trade zones and export processing zones. The first part of this paper attempts to classify free zones by type and function. The second part focusses on the historical-geographical development of port free zones in the periods pre 1900, 1900–1949, 1950–1969 and 1970–1986. Particular stress is put on Hamburg, Hong Kong, Kaohsiung and Shannon as models for port free zone development. The growth of the U.S. foreign-trade zones and the activities of the United Nations International Development Organization are also emphasized. This paper concludes with a look to the future, stating that the continued development of a global economy and the existence of barriers to international trade there will continue to be the need for free zones, especially those associated with ports.

SPECIALIZATION AND ECONOMIC IMPACT OF THE PORTS OF MONTREAL, QUEBEC, SAINT JOHN, AND HALIFAX

Specialization in cargoes and forelands is defined for the ports of Montreal, Quebec, Saint John, and Halifax using a variation of the location quotient. Economic impact is also defined using the location quotient. All ports are shown to have some degree of specialization; whereas, Saint John and Halifax have relatively greater economic impact. It is suggested that the four ports should be encouraged to develop their specializations. However, are the benefits to the shipping industry in following such a policy outweighed by the losses to the local economies because investment in certain ports does not take place?

Candian port administraion: its future structre

The administration, management and development of ports in Canada is a Federal government responsibility. This centralist control of ports has been the subject of criticism by many for a variety of reasons, not the least of which is that it is not responsive enough to the affairs of the local level. This problem, along with others, has resulted in the introduction in the Canadian Parliament of proposed legislation over the past five years to alter port administration and development in Canada. The proposals culminated in the recent passage of the Canada Ports Corporation Act which, among other things, will see the abolition of the National Harbours Board. A review of the administrative structure the new Act replaces, along with a review and assessment of the Act itself and the proposed legislation which predated it, forms the basis of this paper. It will be seen that because of the new Act the centralist approach to port administration is maintained, but greater local autonomy and financial self-sufficien...

Response to 'Critique: The Caribbean Basin'

We welcome the opportunity to respond to the issues raised in your critique to our paper. We take the comments as an indication of the interest the paper has sparked. Not often is shipping in the Caribbean a subject of academic concern and we are pleased to keep it in the spotlight. Let us deal with the issues in the order that they are raised.