Maritime Supply Chains

286 Pages·2020·15.018 MB·English

by  Thierry Vanelslander (editor), Christa Sys (editor)

MARITIME SUPPLY CHAINS
MARITIME SUPPLY
CHAINS
Edited by
T V
HIERRY ANELSLANDER
ResearchProfessor,DepartmentofTransportandRegionalEconomics,UniversityofAntwerp,Belgium
C S
HRISTA YS
DepartmentofTransportandRegionalEconomics,FacultyAppliedEconomics,UniversityofAntwerp,Belgium
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Contributors
Benson Beidler Maritime Transportation, State Robert Hekkenberg Delft University of Tech-
University of New York Maritime College, nology,DepartmentofMaritimeandTransport
Bronx,NY,UnitedStates Technology,Delft,Netherlands
Philippe De Bruecker KU Leuven, Leuven; Katja Hoyer DevelopmentCentreforShipTech-
OdiseeUC,Brussels,Belgium nology and Transport Systems, Department of
Valentin Carlan Department of Transport and Hydrodynamics,Duisburg,Germany
Regional Economics, University of Antwerp, A.A. Kana Department of Maritime and Trans-
Antwerp,Belgium portTechnology,DelftUniversityofTechnology,
Stefano Carrese Department of Engineering, Delft,TheNetherlands
RomaTreUniversity,Rome,Italy Bart Kuipers Erasmus Center for Urban, Port
ChristopherClott GlobalBusiness&Transporta- andTransportEconomics,ErasmusUniversity
tion Department, State University of New York Rotterdam,TheNetherlands
MaritimeCollege,Bronx,NY,UnitedStates Hilde Meersman Department of Transport and
Francois Coppens National Bank of Belgium, Regional Economics, University of Antwerp,
Brussels,Belgium Antwerp,Belgium
EddyVandeVoorde DepartmentofTransport Eleni Moschouli Department of Transport and
and Regional Economics, University of Regional Economics, University of Antwerp,
Antwerp,Antwerp,Belgium Antwerp,Belgium
Marleen Easton Ghent University, Gent, Marialisa Nigro Department of Engineering,
Belgium; Griffith University, Brisbane, QLD, RomaTreUniversity,Rome,Italy
Australia Marco Petrelli Department of Engineering,
Benjamin Friedhoff Development Centre for RomaTreUniversity,Rome,Italy
ShipTechnologyandTransportSystems,Depart- John Preston Transportation Research Group,
mentofHydrodynamics,Duisburg,Germany TheFacultyofEngineeringandPhysicalSciences,
George Van Gastel National Bank of Belgium, University of Southampton, Southampton,
Brussels,Belgium UnitedKingdom
W.M.Groeneveld DepartmentofMaritimeand J.F.J.Pruyn DepartmentofMaritimeandTrans-
TransportTechnology,DelftUniversityofTech- port Technology, Delft University of Tech-
nology,Delft,TheNetherlands nology,Delft,TheNetherlands
Bruce Hartman Department of International AlessandraRenna DepartmentofEngineering,
Business&Logistics,CaliforniaStateUniver- RomaTreUniversity,Rome,Italy
sityMaritime,Vallejo,CA,UnitedStates TiagoA.Santos CentreforMarineTechnology
EdwinvanHassel DepartmentofTransportand and Ocean Engineering (CENTEC), Instituto
Regional Economics, University of Antwerp, Superior T(cid:1)ecnico, Universidade de Lisboa,
Antwerp,Belgium Lisboa,Portugal
ix
x
Contributors
C.GuedesSoares CentreforMarineTechnology Matthias Tenzer Development Centre for Ship
and Ocean Engineering (CENTEC), Instituto Technology and Transport Systems, Depart-
Superior T(cid:1)ecnico, Universidade de Lisboa, mentofHydrodynamics,Duisburg,Germany
Lisboa,Portugal Thierry Vanelslander Department of Trans-
Jongjoon Song Transportation Research Group, port and Regional Economics, University of
The Faculty of Engineering and Physical Antwerp, Antwerp, Belgium
Sciences, University of Southampton, Wouter Verheyen Erasmus School of Law,
Southampton,UnitedKingdom Erasmus University Rotterdam, Rotterdam,
MartijnStreng ErasmusCenterforUrban,Port TheNetherlands;KULeuven,Leuven;Univer-
andTransportEconomics,ErasmusUniversity sityofAntwerp,Antwerp;OdiseeUC,Brussels,
Rotterdam,TheNetherlands Belgium
Christa Sys Department of Transport and
Regional Economics, University of Antwerp,
Antwerp,Belgium
C H A P T E R
1
Integration of the maritime supply
chain: Evolving from collaboration
process to maritime supply chain
network
Christa Sys, Thierry Vanelslander
Department of TransportandRegionalEconomics,University ofAntwerp, Antwerp, Belgium
1 Setting the scene
Themainthemeofthebookfocusesontheintegrationofthemaritimesupplychain.Themar-
itimesupplychain(MarSC)isunderstoodasthe“connectedseriesofactivitiespertainingto
shippingserviceswhichisconcernedwithplanning,coordinatingandcontrolling(contain-
erized)cargoesfromthepointoforigintothepointofdestination”(LamandVanDeVoorde,
2011, pp. 366–367). Next to cargo and financial flows, liner carriers need to coordinate
information and communication flows along the maritime supply chain, interfacing with
stakeholderssuchasportoperators,terminaloperators,shippingagents,logisticservicepro-
viders,freightforwarders,customsauthorities,andshippers.BasedonLaLondeandMasters
(1994),here,theintegrationofthemaritimesupplychainreferstoallstakeholdersalongthe
maritime supply chain entering into a long-term agreement and connecting, including the
sharing of relevant data. As opposed to general supply chain integration (a.o. Bowersox
et al., 1999; Christopher, 1992; Mentzer et al., 2001; Rai et al., 2006), the literature regarding
maritimesupply chain integration is rather limited.
Globalization, deregulation, liberalization, and increased competition highlighted that sup-
plychainintegrationisanimportantresearchtopicinthemaritimeandporteconomies.First,
leadinglogisticscompaniesunderstoodtheimportanceofsupplychainorientation,drivenby
costreduction,customervalue,andcompetitiveadvantage(Christopher,1992;Mentzeretal.,
1
MaritimeSupplyChains #2020ElsevierInc.Allrightsreserved.
https://doi.org/10.1016/B978-0-12-818421-9.00001-X
2
1. Integrationofthemaritimesupplychain
2001).Second,inthemaritimebusiness,theshipmanagementandshipbuilding industries
soon recognized supply chain partnerships in their corporate strategy (Kumar and Hoff-
mann,2002).Last,regardingthemaritimesupplychain,Heaver(2001)andDeSouzaetal.
(2003) explored managing maritime transport and logistics as an integrated chain. These
authors reviewed the strategy of shipping lines in relation to terminal operating compa-
nies, intermodalservices, and logistics services. Robinson(2002)and Manganetal. (2008)
focused on theeffective integration of ports and terminals when delivering value to ship-
persandthird-partylogisticsserviceproviders.CarboneandDeMartino(2003)employed
ananalyticalmodeltostudytheactors’behaviorinthesupply-chainrelationshipbetween
aport(LeHavre)andashipper(Renaultautomotive).Panayides(2006)discussedtheevo-
lutionofthemaritimelogisticsconcept.SongandPanayides(2008)focusedontheimpact
oftheintegrationofportsinthesupplychainonportcompetitiveness.Theirmodelshows
a “positive relationship between parameters of supply chain integration such as use of
technology,valueadded,anduser’srelationshipsandparametersofportcompetitiveness
such as cost, quality, reliability, responsiveness, and customization.”
Since the global financial-economic crisis of 2009, particularly in the container shipping in-
dustry, overcapacity resulting in low freight rates has put pressure on market players else-
where along the maritime supply chain. The literature shifts its focus from (backward or
forward) integration between two stakeholders (e.g., liner carriers and terminal operators,
liner operators and shippers, etc.), which might lead to suboptimization (Lin et al., 2014)
toward covering an entire supply chain.
Ingeneral,therearedifferentlevelsofsupplychainintegration;thehighestlevelisvertical
integration.a Here, vertical integration refers to collaboration agreements between subse-
quentstakeholdersofthesameMarSC.Inthisway,thecompetitionchangesfromanindivid-
ualfirm-to-firmleveltowardcompetitionbetweenentiresupplychains.Verticalintegration
isgovernedbystakeholderswhoaimtohavecontroloverasupplychainbyincreasingtheir
market power (Lipczynski et al., 2005; Besanko and Braeutigam, 2010). In shipping,
Meersman et al. (2010) analyzed the role of the various chain actors toward ports applying
aregionalinput-outputapproach.Theauthorsconcludethat“allpartiesbelongingtoagiven
maritimelogisticschainhaveoneinterestincommon:toensurethattheirchainisthemost
attractive, i.e. that it isthe most efficient andthe cheapest.”
LamandVanDeVoorde(2011)presentedascenarioanalysisforexaminingthenatureand
levelofsupplychainintegrationincontainershipping.Wooetal.(2012)assessedtheintegra-
tionofportsintothesupplychainusingastructuralequationmodel.Lam(2013)foundthat
individualism is a major obstacle to supply chain integration. Van de Voorde and
Vanelslander(2014)statedthatcooperationisatrendinthedevelopmentoffuturemaritime
supplychains.Horizontalbutespeciallyverticalintegrationhappenstoalargeextent,orig-
inating from shipping companies, but more recently also by terminal operators. Attention
aHorizontalintegrationisbeyondthescopeofthepresentchapter.
3
2 Aimofthebook
therebyshiftstothehinterland,asconnectionstothehinterlandhavebecomethecrucialcost
determinantinmaritimesupplychainsanddeterminethestrengthofaport.Theroleofthe
latter port authority evolves from being a landlord to being a reliable actor in the supply
chain, whose only remaining trump cards are concessions and the potential to lobby with
governments for more capacity investment, also inthe hinterland (Verhoeven,2015).
Afterthis,thefocusofrecentresearchhasshiftedtotopicssuchasthesecurity(Banomyong,
2005;Yang,2011),sustainability(Lam,2015),andresilience(ChristopherandHolweg,2011;
Christopher, 2016; McKinnon, 2018) of the maritime supply chain. These developments
contribute to increased complexity of the maritime supply chain. In order to manage the
end-to-endintegrationofmaritimesupplychainprocesses,eachstakeholderneedstocontrol
its maritimesupplychain (reduceuncertainty) andcreate valuefor everyactor involved in
the sustainableecosystem with the aim of serving their customersin a better way.
2 Aim of the book
Thisbookprovidesananalysisofthemostfrequentlyencounteredproblemsinmaritimesup-
plychainshamperingthemovetowardnetwork.Itfurthermoreprovidessolutionsforhan-
dlingthoseproblems.Thoseareofinteresttoscientistsasthechaptersareattheforefrontof
methodologicaldevelopmentsintheirrespectivefields.Also,thechaptersareofimmediate
relevancetobusiness practitionersatthemanageriallevel aswellaspolicymakers,asthey
provide answers to key operational issues. Finally, the book is useful for any supply chain
course allovertheworld. Students,minimallyatamaster’slevelorhigher, cantakeuseful
lessons from the book.
Thebooktacklesproblemsandchallengesthroughoutmaritimesupplychains.Thepartsof
thebookarealsobuiltupinthatway.Thefirstpartdealswiththemaritimesection. Those
chaptersareofinteresttoshippingcompanies,marketanalysts,andshipbuilders,butindi-
rectly also to port authorities and terminal operators. The second part deals with the port.
Again, market analysts can draw useful insights from the provided chapters, just like port
authoritiesandterminaloperators.Indirectly,shippingcompanies,ascustomersoftheport,
canalsobenefit.Thethirdparttouchesuponthehinterland.Landtransport(road,rail,and
inlandwaterway)operatorscandirectlyprofitfromthefindingsoftheresearchthathasbeen
carried out. But due to the increased involvement from other chain players (shipping com-
panies, (inland) terminals, shippers) in land haulage, those can also enjoy useful lessons
andrecommendations.Thefinalpartconsistsofatransversalchainanalysis.Here,thefocus
isondigitalinnovationgraduallychangingthemaritimechain.Morespecifically,thepoten-
tial of blockchain—as a technology that has the potential to fundamentally alter the way
supply chains are operating and who is active in them—is addressed. The last chapter is
anoverviewofthekeyissuesandhowtohandlethem.Theoutcomeconcernsageneraldis-
cussioncoveringthefurtherintegrationofthemaritimesupplychainsandputsforwardsome
scenarios as to how the industry should evolve from bilateral partner collaboration to a
maritimesupply chain network.
4
1. Integrationofthemaritimesupplychain
Theissuesdealtwithgenericallyconcerntheoperator’sstrategicrolesinchainsandmarkets,
pricingfeatures,infrastructureinvestment,andregulatorydevelopmentsandneedsaswell
as technological items, including IT. The reader will find for each of those topics the latest
developments as wellas strategiesthat can befollowed to copewith emerging challenges.
3 Features of the book
Thisbookhasanumberofparticularfeatures.Firstofall,itisthefirstbookinthewiderfield
oftransportandlogisticsthattakesatransversallookthroughoutthemaritimesupplychain,
notstayingatthehigherlevelofchainanalysis,butbreakingthechaindownintoitscompo-
nents but always keeping thewiderintegrated chain perspective.
Second,thebookgroupsthekeyissuesincurrentmaritimesupplychains.Hence,whatever
therole of thereader inthemaritimesupplychain,oreven outside asascientistormarket
analyst,the readerwillhave avery complete overview of the decision items that matter.
Third, the book serves scientists, who have a rather methodological perspective, as well as
business practitioners. Methodologically, the chapters apply cutting-edge scientific
techniques. For practitioners, the latest state of developments in business practice as well
as recommendations can be found inthe book.
4 Contents of the book
The book contains 12 chapters and is structured around four themes: shipping, ports and
terminals, thehinterland, and transversal issues.
Theintroductorychaptertothebookaddressestheredlinethatrunsthroughthebook,soas
toidentifywherethekeyissuesareinthechain.Thelastchaptercomestooverarchingcon-
clusionsandreflectionsfromtheintegratedchainperspectivebycombiningthefindingsfrom
the preceding chapters.
Under the shipping section (Part I), the contribution by Santos and Guedes-Soares in
Chapter2providesanintegratedmethodologyfortheeconomicassessmentofpossiblealter-
nativeshort-seashipping(SSS)routesusingroll-on/roll-off(Ro-Ro)ships.Thismethodology
has been applied in a case study, which considered different destination ports in Northern
Europe,namelyAntwerp,Rotterdam,LeHavre,andHamburg,tocharacterizethemaritime
transportationdemandforintermodaltransportationbetweenPortugal(portofLeixo˜es)and
theseports.Theanalysistakestheperspectiveoftheusersoftransportation,theirdecisions
beingbasedoncostandtransittimeconsiderations,withoutandwithexternalcostsincluded.
Thepracticaluseoftheseresultsistwofold.Ontheonehand,theymaysupportasecondstep
of the evaluation process, this time taking the perspective of the shipping company, which
will determine if each pair of maritime freight rate and ship speed is technically and