• Journal of Korean Society of Transportation
• /
• v.28 no.6
• /
• pp.133-146
• /
• 2010

The objective of this study is to develop a supply chain-based freight distribution channel choice model considering shippers' logistics behaviors which will be used for freight demand estimation. For this purpose, this study utilized the distribution channel data of the petrochemical and automobile industries collected by KTDB center. The distribution channel choice models for these industries were developed by including transport mode, time, cost, and shipment size. It was found that the multinomial logit model with transport cost, time and shipment size is the best, and as shipment increases, bigger transport mode is preferred. Generally direct distribution channel with small truck was preferred over the one using distribution center and/or big truck.

• Journal of Navigation and Port Research
• /
• v.40 no.6
• /
• pp.459-468
• /
• 2016

The decreasing number of import and export containers is causing a problem with container circulation. In particular, this problem has reached a serious level in the Gyeongin area. Empty containers are accumulating in the Gyeongin container yard, where most of the returned containers are stored. In order to improve the empty container return problem at Gyeonhin, this study analyzes the actual situation and the empty container return process. A preference survey was conducted to suggest solutions from the perspective of users rather than shippers. A logistics company's data was analyzed to identify the inefficient cost structure in the Gyeongin area. The results show that the empty container return problem in Gyeongin is becoming more and more serious. To solve this problem, this paper proposes reestablishing functions at the Incheon Port, and securing a third new storage terminal in the Gyeongin area. Finally, an efficient empty container circulation system is presented. It will also be necessary to prepare laws and institutions to ensure these solutions.

• Journal of Distribution Science
• /
• v.11 no.6
• /
• pp.31-40
• /
• 2013

Purpose - The Northeast Asian Logistic Hub strategy was established to create a national competitive advantage in northeast Asia. Countries in this region are competing fiercely to become the central base distribution port as the volume of container shipping continues to increase due to the northeast Asian (especially Chinese) economic growth. The primary method by which shippers are improving their customer service and distribution is enhancing profits by minimizing call ports on the key route through strategic affiliations and the use of large vessels. Each nation is planning large-scale investments in the construction of sea ports that can accommodate large vessels. This paper proposes ways by which the logistical strategies of domestic corporations can keep pace with changes in government policy concerning the Northeast Asian Business Hub policy. It examines the logistics system in the Northeast Asian region, analyzes the government's Northeast Asian Business Hub policy, and suggests logistical strategies for domestic corporations through an analysis based on a questionnaire designed to grasp domestic firms' needs and goals. Research design, data and methodology - The purpose of this study is to determine how shipping companies establish partnerships with third-party logistics providers and draws out the implications of the results. The survey methods used were personal interviews and questionnaires distributed to a sample population through e-mail, fax, mail, and telephone. A total of 600 questionnaires were distributed, of which 165 were returned. Among these, ten were excluded due to insufficient content; ultimately, 155 were used for the sample. The statistical data collection process was analyzed through data coating and a statistical package program. Results - This study argues that greater flexibility in policies, administration, and systems will be needed to significantly improve established business practices. In this dissertation, we primarily identify that in order to become a center of northeast Asian logistics, Korea must adopt a new paradigm and abandon the existing systems that are based on the economic and social systems that have stemmed from bureaucracy, inflexibility, chauvinism, and equalitarianism. Flexible policies, administration, and systems will be necessary to improve business practices. Domestic corporations must establish a strategic logistics hub and related network while simultaneously pursuing value-added logistics businesses by increasing their manpower and building a logistics information system. This will strengthen their competitive edge and lead to system improvements. Conclusions - Domestic corporations must adopt a new paradigm and use more reasonable business laws, systems, and policies that are based on market-driven flexibility and transparency. Moreover, social norms and regulations should be established to help ensure political and social security. Korea must also develop a culture of tolerance for foreign companies. Finally, the paradigm defining the policy governing the development of the capital city and its satellite cities in this context must be changed.

• Journal of Navigation and Port Research
• /
• v.30 no.6 s.112
• /
• pp.471-481
• /
• 2006

This paper aims to provide strategies to attract container cargoes for the Incheon port by analysing O/D of the container cargoes with the year-2004 export and import data from. The Korean customs service. O/D analysis was carried out with establishing optimal zones, which are defined as City, Gun, Gu(Korean administrative districts) to which the export-import service can be provided from a certain port with minimized freight(or transport) cost and stevedoring fee. For the Incheon port, 35 administrative districts including Seoul and Incheon in Kyunggi-Do and Kangwon-Do are recognized as the optimal zones, and approximately 25.50% of around 2.02-million-TEU per year of the cargoes from the zones are exported and imported through the port. The strategies to attract container cargoes was suggested by comparing the Incheon port to supposed-competitive ports. The Busan port(64.89%), Guangyang port(4.46%) and Pyeongtaeck port(3.35%) are supposed as the competitive ports which have a large proportion of handling the cargoes from the optimal zones. When comparing the Incheon port to these ports. The Incheon port requires a distinctive cost strategy, providing incentives to attract shipping companies and cargoes, improving efficiency related to loading-unloading at the port, and reinforcing Feeder-Network and advertisements about cost-saving to the shippers(the owners of goods) in the national capital region Consequently, the mentioned requirements are suggested as the strategies to attract cargoes for the Incheon port.

• Journal of Navigation and Port Research
• /
• v.41 no.3
• /
• pp.137-148
• /
• 2017

Port service level is a metric of competitiveness among ports for the operating/managing bodies such as the terminal operation company (TOC), Port Authority, or the government, and is used as an important indicator for shipping companies and freight haulers when selecting a port. Considering the importance of metrics, we developed software to objectively define and manage six important service indicators exclusive to container and bulk terminals including: berth occupancy rate, ship's waiting ratio, berth throughput, number of berths, average number of vessels waiting, and average waiting time. We computed the six service indicators utilizing berth 1 through berth 5 in the container terminals and berth 1 through berth 4 in the bulk terminals. The software model allows easy computation of expected ship's waiting ratio over berth occupancy rate, berth throughput, counts of berth, average number of vessels waiting and average waiting time. Further, the software allows prediction of yearly throughput by utilizing a ship's waiting ratio and other productivity indicators and making calculations based on arrival patterns of ship traffic. As a result, a TOC is able to make strategic decisions on the trade-offs in the optimal operating level of the facility with better predictors of the service factors (ship's waiting ratio) and productivity factors (yearly throughput). Successful implementation of the software would attract more shipping companies and shippers and maximize TOC profits.

• Journal of Navigation and Port Research
• /
• v.44 no.1
• /
• pp.10-19
• /
• 2020

Port Gyeongin was developed as a multi-functional port equipped with container and general port facilities and could be linked with nearby tourist attractions. However, it has experienced difficulties from the limitation of being a small port, duplicating functions, and lacking an interlink with nearby ports. Nonetheless, resident companies that need logistics facilities in Port Gyeongin or nearby ports process specific import and export goods such as wood, steel, and industrial products through Port Gyeongin because of the characteristics of the port. From this perspective, it is critical to establish a measure to promote Port Gyeongin through utility analysis of the stakeholders in Port Gyeongin. In this regard, the purpose of this study was to analyze the preference of stakeholders in Port Gyeongin using conjoint analysis and propose a difference in the preference of the stakeholders. Study results show that the terminal group, shippers, and tenant companies considered the berthing capacity, incentive scale, and port logistics cost as the most critical matters, respectively. The stakeholders in Port Gyeongin should recognize the difference in critical matters, and be equipped with shipper discovery and institutional arrangement according to the characteristics of Port Gyeongin such as cooperation with related institutions and inter-collaboration between operating companies to promote Port Gyeongin.

• International Commerce and Information Review
• /
• v.15 no.2
• /
• pp.261-283
• /
• 2013

ISBP745 has new provisions about sea waybill, road, rail or inland waterway transport documents which ISBP681 did not have provisions about. The main revisions of ISBP745 which were not existent or different from ICC Opinion are as follows: First, where B/L is required when multimodal transport is used as a modes of transport, the revisions stipulates that it is subject to UCP600 article19. this differs from previous ICC Opinion. Second, when a credit requires a transport document to indicate the name, address and contact details of a delivery agent, for the place of final destination or port of discharge, the address need not be one that is located at the place of destination or port of discharge or within the same country as that of the place of destination or port of discharge. Third, in case there exist a number of shippers and a consignee, multiple transport documents are issued. This rule has a clear stipulation on this case. Transport industry regards the indication of "LCL/FCL" or "CFS/CY" common in this case as that requiring multiple transport documents. However, ISBP745 does not regard it the case as that requiring multiple transport documents. This may cause some confusion in examination of documents. Forth, when partial shipment is allowed, and more than one set of original transport documents are presented as part of a single presentation made under one covering schedule and incorporate different dates of shipment, the earliest of these dates is to be used of the calculation of an presentation period.

• Journal of Korea Port Economic Association
• /
• v.36 no.3
• /
• pp.75-98
• /
• 2020

This study explores the incentive system in Korean ports to become a global logistics hub in Asia or to be competitive among Korean ports as a regional hub. First, we identified the types of port incentives in Korea and in overseas ports. We selected potential incentives applicable to Korean ports and compared whether they were meaningful, efficient, and effective in the short and long term. We selected IPA (Importance-performance Analysis) as an analytical method and surveyed users and experts. The results show that it is necessary and effective to provide incentives for new shipping companies, both export and import shippers, while setting criteria for reasonable incentives. Factors needed for improvement included simplifying and calculating the incentive request process, incentives for terminal operators, and new incentives, in addition to existing incentives. Policy-making organizations will also need to collect feedback on institutional improvements and raise awareness among users. Key factors for improvement include providing incentives for existing shipping companies. In particular, in order to actively manage systematic and efficient policies, incentive criteria for existing shipping companies need to be reconsidered.

• Journal of Korea Port Economic Association
• /
• v.23 no.1
• /
• pp.115-148
• /
• 2007

Under the influence of ever-globalized world economy, Yangsan Port of Shanghai, a central hub of Chinese economy, was opened up on Dec. 1, 2005 in the expectation of heart of northeast Asian harbor logistics. It has triggered severer competitions among northeast Asian ports. In an effort to keep robust standing as a central port of northeast Asia, Korea has still built additional new ports and opened up 3 docks in Nov. 2005. Amid these changing port environments, it is foremost to take the competitive edges of new ports in advance of major rival ports in the interest of preoccupying the standing of those new ports as the central hub of northeast logistics. According to the developmental strategies of new ports can be summed up as follows: First, it is required to separate port development from marketing as a part of separating developmental entity from management/maintenance entity. Second, it is required to develop dedicated port for feeder vessels along with new ports to save more time and cost spent by shipping companies. Third, the attraction of jumbo shipping companies to port development needs differentiated countermeasures for each shipping company, and those measures should be taken in advance before jumbo shippers decide their own shipping strategies in future. Fourth, in terms of incentives for attracting jumbo shipping companies, it is required to offer the incentives to them in using new ports in connection with Busan ports. Fifth, it is critical to set up a benchmark of competitors(ports) for establishing one-stop automatic administration process system upon developing ports. Finally, it is required to prepare a plan for using rearward lands in connection with ports for more efficient use of development complex behind port.

• Journal of Korea Port Economic Association
• /
• v.28 no.2
• /
• pp.129-153
• /
• 2012

Even though logistics service outsourcing becomes widespread in manufacturing and service industries, logistics service providers encounter fierce competition and lower profit. Decreased profit has negative impact on service providers' competitiveness, which in turn threats successful relationship with shippers. In this paper, we investigate the factors which influence the performance of service providers. Factors related to service contract are examined and we test an effect of concreteness and fairness of service contract. PLS (Partial Least Square) modeling method is applied and validated using data from logistics service providing companies in Korea. In the model, service contract clauses are classified into two categories including cost and risk sharing terms. PLS analysis shows that partnership and performance of service relationship is improved when contract clauses are specified in detail. This study will contribute in providing an operational direction in effectively establishing a positive relationship between the logistics service provider and the shipper.