Showing papers in "International Journal of Shipping and Transport Logistics in 2012"

A study on the antecedents of supplier commitment in support of logistics operations

Abstract: Supplier inputs need to be delivered at the right time in the right quality and quantity to fully satisfy the operations requirements of buying firms. In achieving these performance goals, the importance of supplier commitment in managing the buyer-supplier relationship (BSR) should not be neglected in logistics operations. Due to organisational differences on operations priorities, it is a challenging task to manage a BSR which is inherently complex with many transactional and institutional aspects involved. This challenge is salient in logistics management with multiple upstream and downstream parties involved where the lack of concerted efforts can compromise performance of the entire logistics chain. For many enterprises, it remains unclear on how to nurture supplier commitment in support of their logistics operations. Considering this research void, we examine the antecedents of supplier commitment covering both transactional and institutional factors influencing supplier commitment in the BSR. Survey data collected from 358 suppliers of an international buying firm indicate that business uncertainty discourages supplier commitment, but the commitment can be reinforced with both explicit and implicit contracts used for governing the BSR.

Evaluation of the service quality of container ports by importance-performance analysis

Abstract: The present study applied importance-performance analysis (IPA) to investigate the relationship between the importance level and satisfaction of port service quality and to enable port authorities to draw port managerial and operational policies for improving service quality. This IPA approach is based on the port service quality characteristics drawn by the Kano two-dimensional quality model, and examines the Singapore, Shanghai, Hong Kong, Busan, and Kaohsiung ports from the viewpoints of 15 container shipping lines deploying container ships at the above ports. The results demonstrate that the shipping lines were most satisfied with the Singapore port, while the Shanghai and Busan ports had a lower satisfaction level than the others. The IPA matrixes of the five ports confirm that, from the viewpoint of resource allocation efficiency, resources should be shifted from quadrant D to quadrant A to improve overall performance of service attributes. Therefore, port managers have to 'keep up the good work' regarding these attributes. Terminal operators can use the results to develop port strategies improving port service quality, to design better service quality control systems, and to capture more container cargoes in the fierce inter-port competition in Asia.

Data mining in rail transport delay chain analysis

Abstract: Railway systems face the demand for efficient, reliable, and low-cost logistic services. Nevertheless, in many countries, punctuality of rail traffic plummet at a poor level. Even though high quality is pursued, there seems to be a lack of broad understanding when it comes to the concatenation of delays. However, understanding rail traffic delay chains is important for improving the performance of rail transport quality. Our research uses a data-mining approach for analysing rail transport delay chains, with data from passenger train traffic on the Finnish rail network. This study illustrates data mining is a useful tool for identifying and mapping the delay chains. It may be concluded that based on a deeper understanding of the delay concatenation, it is possible to develop rail traffic punctuality and the whole railway system. In medium and long-term planning, data-mining analyses of rail traffic can help to develop a more robust timetable structures, and provide tools for rail network planning.

Competencies required by port personnel in the new era: conceptual framework and case study

Abstract: Nowadays, ports have transformed from a purely ship-shore interface into logistical platforms where logistics-related activities occur, and are also important clusters of economic activities. The role of seaports is therefore essential since these transport nodes are important and indispensable for the effective and efficient management of flows of products and information in the supply chain. With this new role, it is critical that port personnel possess necessary competencies to contribute to port efficiency and turn the port into an effective supply chain partner. This research issue is explored through a conceptual model of competencies constructed based on thorough literature review and in-depth interviews and validated by a survey with port personnel both in Singapore and Vietnam. As a result, important managerial insights are drawn to the design and implementation of human resource development policy for ports.

South-South trade liberalisation and shipping geography: a case study on India, Brazil, and South Africa

Abstract: Freer South-South trade has been recognised as a vital engine for the developing countries to reap the maximum economic gains from multilateral trade liberalisation. One of the latest developments which draws considerable attention is the proposed free trade agreement among India, Brazil, and South Africa, namely IBSA, given the fact that the three countries are amongst the leading economies in the continents of South Asia, South America, and Africa, respectively. This paper applies a global computable general equilibrium model, Global Trade Analysis Project, and a converting approach to quantify the impacts of the IBSA trade liberalisation on seaborne cargo volumes. The major advantage of the GTAP model is that it can capture the effects of economy wide adaptation and asymmetric structure change in exports and imports caused by trade liberalisation. Based on our numerical results, removing high tariffs in the South-South trading routes reduces the significance of geographical distance in determining South-South trade patterns, and promotes distant trade with faraway countries.

Impact of service quality, image and relational aspects on satisfaction and loyalty in logistics outsourcing relationships

Abstract: This paper examines the links between service quality, customer satisfaction and loyalty in logistics outsourcing relationships. Besides service quality, also the moderating role of inter-firm relationships and service provider’s image are examined. A theoretical model is developed and tested with structural equation modelling using survey data from industrial companies in Finland. It is shown that perceived service quality influences the customer’s satisfaction which again affects loyalty. Inter-firm relationships and service provider’s image affect loyalty directly and indirectly through satisfaction.

The Effect of Environmental Management on Environmental Performance and Firm Performance in Taiwanese Maritime Firms

Abstract: This paper aims to empirically examine the impact of environmental management on environmental performance and firm performance in Taiwanese maritime firms. Three critical environmental management dimensions were identified based on factor analysis: environmental management practices, environmental management auditing, and environmental management investment. A structural equation modelling (SEM) was performed to examine the effects of environmental management on environmental performance and firm performance. The results indicated that environmental management had significantly positive effects on environmental performance and firm performance. However, environmental performance was not found to be related to firm performance in this study.

Economic Impact of a Port on the Hinterland: Application to Santander's Port

Abstract: This article studies the necessary techniques to determine the economic impact of a port infrastructure, not only on the region where it is located but also on its area of influence. In particular, the present study reflects the analysis carried out in order to obtain the economic impact of Santander’s Port on the economy of Cantabria and its hinterland in the year 2005. It is important to stress that for the first time the impact of a structure on the region where it is located and on the rest of its area of influence is calculated. The economic literature shows many examples of economic impact of a certain infrastructure but only on the region where it is located; therefore, the contribution of this article enriches the previous studies carried out since it quantifies the importance of ports regarding the companies of the area of influence for the generation of value and employment.

Maritime piracy: an analysis of attacks and violence

Abstract: Maritime piracy has become a core subject in maritime security and safety. Using ICC International Maritime Bureau data from 2002 to 2009, we use binary choice models to estimate the success/failure of pirate attacks as a function of vessel type, flag, vessel operation, number of pirates, boarding methods, and arms type. Rather than forecasting the piracy incidents, the binary models are used to quantify how pirate characteristics and behaviour determine the rate of success and degree of violence of piracy attacks. The results identify three major approaches for pirate attacks, with the different approaches being associated with different levels of violence and arms used and different targets. The study proposes managerial implications for maritime security.

Reverse channel design: the impacts of differential pricing and extended producer responsibility

Abstract: We study the design of reverse channels in a supply chain consisting of a manufacturer and a retailer The manufacturer makes a new product and sells it through the retailer in a previous period Used products are collected for remanufacturing at the end of the previous period In the current period, remanufactured products are sold at a lower price, together with the new products The used products can be collected either by the manufacturer or by the retailer A minimum percentage for remanufactured products is enforced by a government extended producer responsibility (EPR) policy We use game theoretic models to explore how the optimal reverse channel choice is influenced by the pricing difference on new and remanufactured products, and by the government EPR policy We find that the most effective way to collect used products is through the manufacturer In addition, the government EPR policy can benefit remanufacturing activities, promote sales of the remanufactured products, and increase supply chain profit We also show that the manufacturer benefits more when consumers are more willing to pay for a remanufactured product

A simple RFID cost model for the container shipping industry

Abstract: Radio frequency identification (RFID) refers to the use of a transponder or tag affiliated with an object for the purpose of identification and tracking using radio waves. While conceptual ideas and potential applications are widespread, its use within maritime shipping still needs to be advanced. That is, the shipping industry still seems to be hesitant regarding RFID investment decisions. This paper proposes a simple cost model, which is applicable for RFID investment decisions. We show that under reasonable assumptions RFID may provide moderately quick ROI and we discuss relevant factors to be used in business scenarios. In particular, the construction and the origin of these factors are explained, thus allowing an understanding that RFID usage may have real business impact in maritime shipping.

A two-stage algorithm for the extended linehaul-feeder vehicle routing problem with time windows

Abstract: In this paper, an extended linehaul-feeder vehicle routing problem with time windows (ELFVRPTW) is addressed. The objective is to minimise the total fixed cost, travel cost, manpower cost and waiting cost for all vehicle routes. In the ELFVRPTW, vehicles are divided into two types (large and small vehicles) according to size and capacity. Small vehicles deliver goods within time windows to the customers that are located on narrow roads. When the load of a small vehicle en route is empty or near-empty, it may reload goods from a large vehicle residing at one virtual depot or directly from the physical depot. As compared with its earlier version, called the linehaul-feeder vehicle routing problem (LFVRPTW), the ELFVRPTW is more realistic, because several large vehicles and capacity limitation of large vehicles are taken into consideration. To solve this difficult combinatorial problem, a two-stage solution heuristics is developed. The test results show that the ELFVRPTW is advantageous over the LFVRPTW with respect to the average objective value and the average number of used vehicles.

Smart Containers and the Public Goods Approach to Supply Chain Security

Abstract: This paper will review the state of technology related to smart containers; discuss their role in the drive to securing global supply chains; and use the economics of public goods to help explain the strategic decisions faced by government, shippers and carriers. The US Bureau of Customs and Border Protection has offered to give ‘green lane’ treatment to any smart container arriving at a US port of entry. Promised benefits would be no inspection and immediate release at the port. The problem is that there is no smart container currently in use; nor is the nature of a smart container yet agreed to by industry and government. The economics of public goods, as developed in this paper, help to clarify the role of the importer, the carrier, the foreign vendor and the US regulatory agencies. Essentially, the issue is how to manage the trade-off between efficient trade flows and security across international supply chains. It will be shown that some of these players have incentives to under-provide expenditures devoted to such security. But this creates a further opportunity for smart containers to mitigate that situation.

Quality management for seaports integrated in supply chains

Abstract: Over the years, seaports have evolved through various generations to become an integral node in supply chains. Continual reforms have been required for seaports to change their organisational structure and management practice to provide higher quality of service whilst maintaining lower costs to ensure long-term sustainability. To achieve this, a framework of quality management practices for modern day seaports integrated in supply chains is proposed. Based on the framework, the practices and attributes for seaport quality management are conceptually developed and empirically tested through a postal survey of senior seaport managers in Vietnam. The findings show that eight internal and four external quality practices are recognised by senior managers as being important conditions for quality management in seaports, however, further investigation of the external practices is recommended as seaports and supply chains become further integrated and dependent on a global scale.

Factors influencing the use intention of port logistics information system by ocean carriers

Abstract: This study empirically investigates factors influencing ocean carriers’ use intention toward a port logistics information system (PLIS). Data collected from a survey of carriers in Taiwan were used to test a structural equation model examining the relationships among top management support, cost of adoption, perceived benefit, perceived complexity, security concern, and use intention. The results indicate that top management support, cost of adoption, perceived benefits, and perceived complexity are the dominant factors explaining the use intention of PLIS by carriers. However, the influence of security concerns on use intention was not shown to be significant in this study. Theoretical and managerial implications of the research findings are discussed.

Efficiency assessment of Chinese logistics firms using DEA

Abstract: This paper proposes data envelopment analysis (DEA) to evaluate the operational efficiency of three categories, and a total of 36 listed logistics firms in China. DEA-CCR, BCC, NIRS and SUP models, including two groups of financial and non-financial input and output measures, are used to discover the level and sources of efficiency and inefficiency of sample firms. The empirical results show that there are only one third of them with DEA efficiency value of 1, indicating that the overall efficiency of Chinese logistic industry is relatively low. And among three categories of service offerings, efficiency value of transporting firms is less than the average of logistic industry, with the lowest value for port firms, which can be attributed to scale inefficiency, mainly stemming from decreasing returns to scale (DRTS). Finally, the feasibility of DEA method of evaluating efficiency of logistic firms is demonstrated, and the related suggestions for efficiency improvement of Chinese logistic industry are also presented.

Using non-parametric technologies to estimate returns to scale in the Iberian and international seaports

Abstract: Unlike most studies of performance evaluation in the literature of the seaport industry, this paper intends primarily to investigate if the technology or production frontier is overall constant returns to scale (CRS) or variable returns to scale (VRS) by applying a set of statistical tests and only then estimating the appropriate efficiencies. According to the results, the technology of the sample studied, comprised by 36 of the most important worldwide seaports and 21 Iberian seaports, is characterised by overall CRS for the year 2008. Based on this technology, we found inefficiency levels of about 67.6%. On average, excluding the ports of Singapore and Australia, the northern European seaports are the most efficient ones. It is also shown that in this case study an efficiency analysis by continent would be biased if one had taken a VRS technology, thus demonstrating the importance of investigating primarily the seaport technology.

An application of non-linear methods to the prediction of future freight rates, 2006–2008

Abstract: The paper deals with the major question whether freight rate derivatives are the most accurate indicators of future freight rates. The paper proves that predicting future freight rates using non-linear models one obtains more accurate estimates. Derivatives proved to give underestimates of the actual spot freight rates within the sample. The paper goes one step further to show that the failure outlined above is due to the existence of black and pink noise in the time series. This is so as models so far assume white noise even when tests for normality, excess skewness and kurtosis are significant much above their critical values. The data covered 694 working days for 2006–2008 for derivatives and spot rates for a dry cargo vessel of 85 000 dwt. The Hurst exponent found 0.90 for spots and 0.80 for derivatives. The paper’s predictions were below 10% of the actual for ten steps ahead. Derivatives were away by 28%.

Origin and Impact of Supply Chain Risks Affecting Supply Security

Abstract: Cargo flows in the Gulf of Finland have grown substantially since the fall of the Soviet Union. The high growth of traffic density in the narrow and shallow shipping lanes has been the centre of attention for some time, and researchers have produced numerous reports warning about the risks involved. Many of these reports have not, however, considered the viewpoint of the practitioners of business life. Therefore, this paper is contributing to this gap by presenting the risks identified affecting the supply chains from their perspective. The study was conducted by interviewing organisations acting as part of a focal supply chain. The main risks identified by the interviewees were the port functions and the sea lanes and land routes near the port. The recognised risks varied significantly between the companies and persons depending on their position in the supply chain.

Data mining for the development of a global port-to-port freight movement database

Abstract: The difficulty of integrating data from multiple transportation data sources has been an ongoing challenge for researchers who study the movement of freight across the globe. The difficulty is due to the data sources using different units, scales, data frequencies and commodity codes. This paper proposes a three-step data mining model to select and integrate data sources for freight transportation applications, with a special focus on global port-to-port freight movement between the USA and other countries. The data filtration step is developed to select the relevant data sources from a set of original data sources, and then identify the most efficient subset of the selected relevant data sources. The data integration step implements some specific integration techniques to build a new database for a given freight transportation research. The data interaction step investigates data applications of the newly built database in a variety of application domains. The approach is demonstrated by establishing a database in studying the global containerised freight movement for the USA.

Appraising shipping service quality: case of Vinalines

Abstract: In shipping service realm, service quality of a carrier has been increasingly discerned as a crucial factor behind the attainment of its competitive edge and market superiority, not merely since its high service quality will increase its customers’ satisfaction, but also since its high service quality can create new values for its customers. As a result, there emerges a need for a service quality instrument with which a carrier can gaze at themselves. A question is whether the SERVQUAL instrument developed for other services’ industries can be utilised to gauge service quality perceptions and expectations in shipping. Predicated on a survey of 152 respondents from Vinalines’s customer companies, the study reveals that customers’ expectations of Vinalines’s shipping services were impacted by three factors: ‘reliability’, ‘empathy and responsiveness’, and ‘assurance’.

Practical Approaches towards Enhanced Security and Visibility in International Intermodal Container Supply Chains

Abstract: Nowadays, main participants in international container supply chains require better transparency for their shipments across their extended supply chains Since the tragedy 9/11 another challenging issue ‘assuring of container chains’ has a powerful impact on the management of international supply chains Concurrently, the facilitation of global trade is a crucial element of customs agencies’ mission This objective can be achieved by eliminating duplication and delays in international supply However, the process of simplification should also adequately reflect the requirements of increased security This paper demonstrates practical approach based on the experience obtained from two EU-funded research projects: INTEGRITY and CHINOS The project CHINOS is dealing with optimisation of visibility and security, and uses innovative IT technology like RFID and automatic damage documentation in order to support transport and terminal operators Based on the existing tendency to secure global trade from industry and customs authorities’ sides, the project INTEGRITY developed and implemented an IT system serving both issues at the same time by creating supply chain visibility The main goal and the main benefits of both projects CHINOS and INTEGRITY are to make door-to-door transport chains more secure and visible

The cost-benefit model for secure container network

Abstract: The container industry has proved to be a remarkably efficient commercial system, designed to move goods through the international supply chain in the fastest way. The main drivers of the system are speed and low cost. The existing trend demonstrates the importance of development and implementation of new security detecting technology, like RFID e-seals in container transportation to achieve international secure and efficient global trade. In this paper, we propose a model for cost-benefit analysis to estimate potential costs and direct benefits through the implementation and use of RFID container electronic seals in global secure container network.