• Journal of the Korean Institute of Navigation
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• v.21 no.3
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• pp.1-18
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• 1997

From the beginning of 1990s , also in the shipping industry, especially liner shipping industry competition has been more intensive and difference of the service quality among shipping companies has been learned . On the other hand, a shipping company has some limitations to do its international mission for itself just by broadening service area. For this reason, the necessity for the global strategi alliance among the shipping companies, which is orginally aimed at sharing of facilities and organixation, has been developed. Through strategic alliance, liner shipping companies do not need to input the additional capitals to increase the material assets such as vessel capacity and spread the risk by the enlargement of the market. Also, they can secure the competitive edge through efficient utilizaton of assets. The purpose of strategic alliance of Hanjin Shipping Ltd., can be summarized as follows ; broadening of service area, cost reduction through vessel sharing, realization of rationalized shipping service by terminal and equipment or facilities sharing. Liner strategic alliances are agreement among liner companies to pol their equipment , andterminals for joint operations and services in which each alliance partner continues to serve its market using jointly operated or used inland feeders,inland terminals, port terminals, and mainline fleets of ship as well as joint pools of containers and equipment. Strategic alliances are generally more formal agreements than consortia and impose longer term and far reaching obligation on their members. It also acts as one in developing and advancing the strategic aims of the alliance members. The most important objective for liner strategic alliances is cost reduction and improvement in capital asset utilization. Main aims of strategic alliance drawn in this paper, can be enumerated follows : 1. improvements in service frequency and quality : 2. improvements in vessel and equipment utilization and thereby reductions in fixed and variable cost ; 3. improvements in market shares and high value cargo booking ; 4. reductions in intermodal storage and port terminal throughput costs ; 5. improvements in negotiating powers with ports and feeder transport providers ; 6. reduction in financial and other fixed costs such as insurance; 7. coordination and integration of MIS and EDI systems and service for greater efficiency and market penetration ; and, 8. improvements in logistic chain management and economic of scale by equipment depot, terminal, and vessel sharing.

• Journal of the Korean Institute of Navigation
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• v.23 no.2
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• pp.11-22
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• 1999

This paper is concerned with the development of a tractable model to assist liner shipping companies in the decision-making of empty container repositioning and leasing. A hybrid methodology is presented which properly accounts for the specific characteristics of empty container management. For this mathematical models are developed based on dynamic network models, covering both land and marine segment. Then a stochastic method is presented to deal with the uncertainty of the future demand and supply. Especially, the concept of opportunity cost has been introduced in order to explain interactions between the variation of the future demand and supply and the stock level at each depot.

• Journal of Navigation and Port Research
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• v.28 no.9
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• pp.775-781
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• 2004

This study aims at helping Chinese container liners keep constant competitiveness in the heated competition Analytic Hierarchy Process (AHP), a mathematics-based, multi-criteria decision analysis methodology is applied in the study to the performance evaluation on the three biggest Chinese container liners: COSCON, CSCL, and Sinolines. Through the final results of AHP model, we completely learn the current situation of Chinese liners, therefore they are able to enhance the competitive advantage from modifying operation strategy and competition strategy in accordance with the shipping market.

• Journal of Navigation and Port Research
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• v.46 no.4
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• pp.375-384
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• 2022

The shipping industry is cyclically impacted by complex variables such as various economic indicators, social events, and supply and demand. The purpose of this study was to analyze the operating profit of 13 Korean liner companies over 30 years, including the financial crisis of the late 1990s, the global financial crisis of the late 2000s, and the COVID-19 global pandemic. This study was conducted to also identify factors that impacted the profit ratio of Korea's liner shipping companies according to economic conditions. It was divided into ocean-going and short-sea shipping, reflecting the characteristics of liner shipping companies, and was analyzed by hierarchical multiple regression analysis. The time series data are based on the Korean International Financial Reporting Standards (K-IFRS) and comprise seaborne trade volume, fleet evolution, and macroeconomic indicators. The outliers representing the economic downturn due to social events were separately analyzed. As a result of the analysis, the China Container Freight Index (CCFI) positively impacted ocean-going as well as short-sea liner shipping companies. However, the Korean container shipping volume only impacted ocean-going liners positively. Additionally, world and Korea's GDP, world seaborne trade volume, and fuel price are factored in the operating profit of short sea liner shipping. Also, the GDP growth rate of China, exchange rate, and interest rate did not significantly impact both groups. Notably, the operating profitability of Korea's liner shipping shows an exceptionally high rate during the recessions of 1998 and 2020. It is paradoxical, and not correlated with the classical economic indicators. Unlike other studies, this paper focused on the operating profit before financial expenses, considering the complexity as well as difficulty in forecasting the shipping cycle, and rendered conclusions using relatively long-term empirical analysis, including three economic shocks.

• Journal of Navigation and Port Research
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• v.33 no.2
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• pp.135-141
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• 2009

The circumstances surrounding world ports have changed rapidly and port competition to attract cargoes has been increasing fiercely. Specifically, deploying large container vessels resulted fewer port visits and strategic alliance among liner shipping companies. Recently, many studies have worked for improving port competitiveness. However, these studies were limited to evaluation of only port competitiveness and few studies suggested strategies for reinforcing port competitiveness. Although implications of these previous studies are practically available to build policies for port, there have been very few academic studies such as identifying port competitiveness and port selection with related attributes for reasonable evaluation and analysis. Therefore, this study aims to classify the existing studies, which dealt with port selection problem, based on basic structure that was suggested by Murphy (1992). Furthermore, the conceptual definition will be carried out by comparison analysis in terms of time of study, type of data and methodology and decision factor of each study.

• Journal of Korea Port Economic Association
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• v.25 no.3
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• pp.321-338
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• 2009

This study looks at the reasons behind the termination of container transportation between Busan and Incheon in terms of costs structure, the division of profit, and the economic limitation faced in the domestic shipping market. The operation costs have been examined in relation to the components of logistic system of container shipping and the cost function has been estimated. The distribution proportion of operation revenue has been also investigated, considering the different components of logistics activities. In addition, the average revenue of container vessels of 144TEU and 215TEU has been calculated. Economic limitation can be analysed through the optimisation behaviour of shipping companies which tries to maximize profit or minimize loss. In conclusion, domestic short sea shipping can get the economy of scale only by transporting vessels' maximum capacity. It is also vulnerable to trucking market's fluctuation. Without the subsidy for operation, the liner in domestic short sea shipping will stop the service in order to minimize the loss.

• Management & Information Systems Review
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• v.33 no.5
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• pp.85-95
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• 2014

This paper suggested an efficient mathematical model for strategic alliance of liner shipping companies. Even though a few previous research papers proposed the mathematical models for container slot chartering and allocation under liner shipping, those models were nonlinear and very difficult to solve. So their models had limits to apply them to real world problems. On the other hand, the model suggested in this paper is easy to solve and apply to real world problems because it is a integer linear programming model. This paper tried to apply the model to the same example problem as used in existing research paper. Excel add-in program, Premium Solver Platform was used to solve the problem and the optimal allocation and slot chartering for containers were able to be found easily. The result also showed that the total container shipping cost for applying the strategic alliance model was reduced compared to non-strategic alliance model.

• Journal of the Korean Institute of Navigation
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• v.24 no.1
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• pp.73-84
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• 2000

Shipping industry continues to face dramatic changes in its environment ranging from development in containerization, computerization and telecommunications to the emergence of global marketplace. Perhaps the most significant trend - representing both a threat and opportunity - is the increasingly competitive nature of shipping service market. In order for the shipping companies to cope with those improvements and challenges, they should analyze and clarify customer's DM(decision making) process for the purchase of container shipping service. The major research findings from the study were found as follows; 1) The degree of shipper's involvement in purchasing shipping services was found to be a discriminating variable affecting the information sources consisting of personal and non-personal information sources. 2) The positive relationship was found between the experiences on shipping services and non-personal information sources. 3) It was observed that as people had more experience searching for information, the more in depth their searches became. 4) There existed a positive relationship between knowledges on shipping services and information search. 5) According to the SEM analysis, the shipper's information search on shipping services was also found to have a great influence on the shipper's purchasing behavior. The shipper's search was resulted in positive customer satisfaction.

• Journal of Korea Port Economic Association
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• v.32 no.4
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• pp.1-13
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• 2016

This study attempts to establish a precise forecast model for the container inventory demand of shipping companies through forecasts based on equipment type/size, ports, and weekly system dynamics. The forecast subjects were Shanghai and Yantian Ports. Only dry containers (20, 40) and high cubes (40) were used as the subject container inventory in this study due to their large demand and valid data computation. The simulation period was from 2011 to 2017 and weekly data were used, applying the actual data frequency among shipping companies. The results of the model accuracy test obtained through an application of Mean Absolute Percentage Error (MAPE) verified that the forecast model for dry 40' demand, dry 40' high cube demand, dry 20' supply, dry 40' supply, and dry 40' high cube supply in Shanghai Port provided an accurate prediction, with $0%{\leq}MAPE{\leq}10%$. The forecast model for supply and demand in Shanghai Port was otherwise verified to have relatively high prediction power, with $10%{\leq}MAPE{\leq}20%$. The forecast model for dry 40' high cube demand and dry 20' supply in Yantian Port was accurate, with $0%{\leq}MAPE{\leq}10%$. The forecast model for supply and demand in Yantian Port was generally verified to have relatively high prediction power, with $10%{\leq}MAPE{\leq}20%$. The forecast model in this study also had relatively high accuracy when compared with the actueal data managed in shipping companies.

• Journal of Korea Port Economic Association
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• v.24 no.4
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• pp.71-96
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• 2008

The purpose of this study is to suggest the new strategies for West coast ports, especially Mokpo Port development. This paper also analyzes the recently evolving change of shipping environment such as upsizing of vessels, horizontal and vertical integration strategies in the liner shipping industries through the mergers and acquisitions or strategic alliances, establishment of dedicated terminal and surging bunker charge. With shipping environment is rapidly changing, we examine how to cope with the current situation and suggest the solutions how to tackle shippers' and shipping companies' request. As a result of an empirical study, we found out that Mokpo Port suffers from the shortage of container cargo, container imbalance, insufficient forwarders and inland trucking service providers and hinterland transportation network system. With these obstacles settled, the number of container cargo can be induced to Mokpo Port and the regular container services between Mokpo and Chinese ports and Japanese ports loops were found to be competitive.