• Journal of the Korean Society of Marine Environment & Safety
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• v.26 no.1
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• pp.39-46
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• 2020

Accident prevention is more important than follow-up, which is based on Heinrich's law. The marine incident system is a very meaningful system that can prevent similar accidents, and was introduced in 2010 in Korea in accordance with the enforcement of the Code for the Investigation of Marine Casualties and Incidents (CI Code). Based on the CI Code, ship owners or ship operators are required to notify the Central Chief Inspector using the designated notification form in the event of a marine incident, but the number of voluntary notifications is still small. In this regard, this study intends to provide a direction for improvement by conducting an in-depth analysis focusing on the lack of notification procedures and forms of the marine incident system. To this end, we analyzed related regulations, cases of excellent overseas shipping countries such as the United Kingdom and Singapore, cases of similar domestic transportation systems such as aviation and railways, and marine incident notification procedures and forms of leading shipping companies. Major improvements in the notification process include the transition of the marine incidents to voluntary reporting, the expansion of the reporting subjects, and the identification of the security of the informer's identity. The main contents of the notification form revision include the use of the term "reporting" instead of "notification," the content of the identity guarantee in the notification form, and the increase in statistical value through the expansion of optional entries.

• Journal of Navigation and Port Research
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• v.37 no.5
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• pp.519-526
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• 2013

In managing shipping business, the concept of seaworthiness of the vessel has developed in accordance with the development of the shipping industry. However, despite of the development of the vessel's seaworthiness, marine accident has continuously occurred at sea. International Maritime Organization(IMO) has paid attention to the research and investigation of Human Error in shipping operations in addition to physical seaworthiness of the vessel. In 1994, IMO adopted the "International Management Code for the Safe Operation of Ships and for Pollution Prevention(ISM code)" of "SOLAS 1974" Annex, to take countermeasure against this human error. In 1999, Korea adopted the 'ISM Code' and then enacted the Maritime Safety Act (previously Maritime Traffic Safety Act). The Maritime Safety Act regulates necessary qualifications of the Human Resources of shipping companies for establishment and implementation of the safety management system. However, there has been a discrepancy between shipowners and ship management companies in interpreting the legislative texts, finally causing confusion. In this paper, I would like to examine the deficiencies in the regulation on the standard of qualifications of the Designated Person under the Maritime Safety Act and thereby suggest any possible improvements in it.

• Journal of Korea Port Economic Association
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• v.32 no.2
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• pp.123-135
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• 2016

This study uses Data Envelopment Analysis(DEA) to investigate the management efficiency of Korean shipping companies based on business administration costs such as corporate entertainment, advertisement, and labor costs. We analyze shipping enterprises listed on the Korean stock market of the period of 2010-2014. Corporate entertainment, advertisement and labor costs are used as input variables and sales and net income are used as output variables. We use technical efficiency, pure technical efficiency, scale efficiency and returns to scale to propose a plan to improve the efficiency of inefficiency decision-making units (DMUs). The results of the efficiency analysis show that six of the DMUs in the technical efficiency of CCR model and eight of the DMUs in the pure technical efficiency of BCC model are in efficient state. In terms of return to scale, six of the DMUs(24% of all DMUs) show increasing returns to scale, while 13 DMUs(52% of all DMUs) showdecreasing returns to scale. Because multiple efficient state for DMUs exist in the technical efficiency analysis, we conduct a super efficiency analysis. The results show that the efficient state of the twomost efficient DMUs are 1.314 and 1.243, respectively. This implies that these DMUs could maintain their current levels of the efficiency if they increase the amount spent on advertisements, corporate entertainment and labor costs by 31.4% and 24.3%. respectively. We conclude this study by providing the efficiency states of each DMU and target for improving the inefficiencies in each case.

• Journal of Navigation and Port Research
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• v.42 no.6
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• pp.529-538
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• 2018

The port industry is an important national industry which significantly affects Korea's imports and exports which are centered on economic structure. For instance, the Port of Busan, which handles 75% of domestic container freight volume, is expected to become increasingly critical for container liner routes. For this reason, there have been continued efforts to expand freight service to attract international freight volume. This study analyzes the structural characteristics of the port network connected to the Port of Busan by analyzing the pattern of the container liner route from 2012 to 2016 by using social network analysis. According to the Port of Busan's liner route network, the port with the highest degree of centrality, closeness centrality, and betweenness centrality was found to be the Port of Singapore. The comparison of Busan's annual container handling rank by countries and the port center network analysis of Port of Busan rank was found to be different. As a result, it was established that China's East Port, which occupies a high percentage of the volume of cargo handled by Port of Busan, is not a hub port of Busan when viewed on the Busan's container terminal liner network. In addition, even if the number of Port of Busan container liner service increases, it is estimated that the vessels to be added to the fleet will be limited to small to medium sized, or that Busan port has characteristic of a feeder port for the Port of Singapore, according to the network.

• Journal of Navigation and Port Research
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• v.42 no.6
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• pp.546-554
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• 2018

The Bulk market, unlike the line market, is characterized by stiff competition where certain ship or freight owners have no influence on freight rates. However, freights are subject to macroeconomic variables and economic external shock which should be considered in determining management or chartering decisions. According to the results analyzed by use of ARIMA Inventiom model, the impact of the financial crisis was found to have a very strong bearing on the BDI index. First, according to the results of the VEC model, the libor rate affects the BDI index negatively (-) while exchange rate affects the BDI index by positively (+). Secondly, according to the results of the VEC model's J ohanson test, the order ship volume affects the BDI index by negatively (-) while China's economic growth rate affects the BDI index by positively (+). This shows that the shipping company has moved away from the simple carrier and responded appropriately to changes in macroeconomic variables (economic fluctuations, interest rates and exchange rates). It is believed that the shipping companies should be more aggressive in its "trading" management strategy in order to prevent any unfortunate situation such as the Hanjin Shipping incident.

• Journal of Korea Port Economic Association
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• v.35 no.1
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• pp.139-162
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• 2019

In the case of Korea, policy support for shipping companies is limited, and the financial support should address the scale and period of support. Comprehensive measures are needed to boost the chances of reviving the industry. In order to secure competitiveness, the shipping companies need to make continuous efforts, prepare for the future by strengthening environmental regulations, and ensure that they have the ability to be flexible in their responses. The shipbuilding industry witnessed some improvement last year amid severe recession, but reforms are needed to address external and internal structural problems; further, to gain the characteristics of future leading industries, it is necessary to secure core technologies, as well as differentiated and specialized industrial competitiveness among rival countries through joint government intervention and joint R&D investment. Taking these steps will ensure that it has environment-friendly vessels and economic shipbuilding capabilities. The competitiveness of Busan Port should enable the utilization of the geopolitical characteristics of East Asia and contribute to: regional economic revitalization; development of its status as hub port; and securing the position of developed countries in East Asian logistics. For this purpose, it is necessary to establish a strategy to: expand the usability of shipowners/carriers; improve the quality of port operations; improve the portability of the smart system; expand the port of mega-ocean carriers; speed up port operations; and create low-cost ports. The establishment of a network of four countries will also require long-term global linkages. For example, there is a need to establish a logistics network between Eurasia and the European region, which will use the Russian Land Bridge System, as well as that of China.

• Journal of Korea Port Economic Association
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• v.36 no.4
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• pp.75-92
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• 2020

Currently, shipping and port industries are mainly concerned with securing a competitive advantage through scale expansion. Reflecting this trend, domestic ports and container terminals also emphasize efficiency through dock integration. This study identified factors that facilitate cooperation between container terminal operators, as the smallest unit of port operation, and analyzed their effects. These factors included sharing of resources, clarity of purpose, mutual trust, and influence of government policies. In addition, factors related to effectiveness included operational effectiveness of the terminal, improved service to shippers and shipping companies, and bargaining power with the government. The empirical analysis revealed that, among the factors that facilitate cooperation, sharing and purpose affected operational effectiveness, while sharing of resources affected service improvement of shippers and shipping companies. Finally, policy factors affected port bargaining power.

• Journal of Navigation and Port Research
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• v.32 no.5
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• pp.387-394
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• 2008

The cost of domestic container transportation is higher than international sea transportation and it cannot meet the needs of customers either. However, domestic carriers try hardly nothing to improve the carriage system. Especially, the inland transportation connecting Busan port is not receiving a careful study in spite of the importance and urgency now. This paper reviews intention of forwarders, shipping companies, and transport companies conducting a questionnaire and analyse the preferences of transportation modes amongst existing highway, railway, coastal shipping and inland waterway. Its aim is to analyse which factors affect freight agents to choose particular mode.

• Journal of Korea Port Economic Association
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• v.30 no.3
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• pp.187-207
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• 2014

The purpose of this paper is to examine the business performance difference based on the ownership structure type in the aspect of profitability and stability. In order to conduct this analysis in two aspects, the ship financial institutions have been classified into two groups: state-owned banks and private-owned banks. First of all, the difference of ROE and ROA between private and public ship financial institutions is statistically significant, but no difference has been shown in terms of stability measured through BIS capital adequacy ratio. Second, to test the business performance difference according to the ownership structure types before and after the global financial crisis, we examined the outcome difference in the ship financial institutions in terms of profitability and stability. However, in the event that the analysis was conducted with public and private financial institutions, the business outcome difference before and after the global financial crisis has been shown in the sector of private financial institutions, but has not been shown in the sector of public financial institutions. It is meaningful that this study is the first work which examined the difference of the operating performance by the ownership structure types of ship financial institutions. However, it is noted that small sample for this empirical study is a limitation of this thesis.

• Journal of the Korean Society of Marine Environment & Safety
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• v.19 no.1
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• pp.52-58
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• 2013

Operation Abstract : Operational cost required for navigating a ship may differ from according to type, scale, economic speed, navigation area and other factors. However, it is known that the fuel oil price ratio takes 50~60 %. It is the current trend because of the use of poor quality fuel and it is reviewed even for small to medium sized ships to save the operational costs due to the recent rise of international oil price. Furthermore, ocean carriers are taking action to low speed navigation as the alternative method of reducing fuel consumption. Hence, in this study, fuel consumption of main engine was measured by using actual operating ship data compared with sea speed at sea. It was suggested that the area of M/E's load(70 %) lower than NCR is the optimal navigating condition through the relation between speed and fuel consumption compared with advance ratio together with the load.