• Journal of Korea Port Economic Association
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• v.31 no.2
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• pp.23-40
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• 2015

This study measures how Korean shipping policies influence the expansion of the country's merchant fleet using system dynamics. It uses various indexes as factors influencing the gross tonnage of the Korean merchant fleet, such as the Baltic Dry Index, Howe Robinson Container Index, China Containerized Freight Index, and Worldscale Index, as well as the US dollar-Korean won exchange rate, world merchant fleet statistics, and the debt ratio of Korean shipping companies. After establishing the simulation model, the mean absolute percentage error is found to be less than 10%, confirming the accuracy of the model. Therefore, a sensitivity analysis is conducted to measure the influence of the selected shipping policies, including the gross tonnage of vessels registered under the Korean second registry system, loans of publicly owned financial institutions to shipping companies, ship investment fund, and the number of shipping companies participating in the tonnage tax scheme. The sensitivity analysis reveals that the influence of vessel tonnage and loans to shipping companies is the most significant, while that of the number of companies participating in the tonnage tax scheme is minimal.

• Journal of Korea Port Economic Association
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• v.30 no.2
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• pp.1-23
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• 2014

Although 'the International Ship Registration Act' has been enacted in Korea as of 1997, its effect is still in question to make shipowners and operators flag in or reflag because of insufficient incentives for them. Therefore, 'the Special Law for Jeju Free International City' has been established and the system of 'Special Ship Registration Zone' has also been enforced. Despite this, few studies were carried out to measure the relative importance of factors for Jeju International Ship Register yet. Against this backdrop, the purposes of this study are firstly, to investigate a relative importance of Jeju International Ship Registration System using AHP(Analytic Hierarchy Process) and secondly, to compare the characteristics of Flags of Convenience(FOC) with International Ship Register(ISR) which was adopted by several Far East Asia Countries(e.g., China, Hong Kong, Chinese Taipei and Japan). Moreover, this study aims to compare FOC with ISR in terms of shipping policy, ship management, and expenses and tax policy. In this paper, the factors were constructed with four high levels consisting of twenty one low levels to evaluate Jeju International Ship Register by utilizing Expert's brainstorming and AHP. According to the results, it is critical to expand the exemption and tax-related expenses, and also manage foreign-related systems systemically. This study provides important implications to maintain the tonnage tax system for ships effectively as well as to intensify the competitiveness of Jeju International Ship Register System.

• Journal of Korea Port Economic Association
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• v.29 no.2
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• pp.137-157
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• 2013

Korean shipping industry is ranked the fifth largest in the world in terms of deadweight tonnage after Greece, Japan, Germany and China with 55 million DWT as of year 2011, and its size of foreign exchange earning marked 30 billion US dollars. In respect of volume of seaborne trade, it has handled 99% of import and export cargoes. Korean shipping fleets have increased from 420 to 979 ships between year 2003 to year 2011. By reviewing through the relating literatures, it has been found that Shipping Funds under Ship Investment Company Act, and Tonnnage Tax System, worked as positive influences to increase the Korean shipping fleets. However, there is scant of research to examine the following two points: 1) weighing the decision making factors of ship investments for Korean shipping companies, and 2) weighing the influential factors of government shipping policies. In this respect, the aim of this study is to evaluate 8 decision making factors of ship investments for Korean shipping companies, and 8 influential factors of government shipping policies. For weighing the factors, the fuzzy methodology was adopted. As the results, for the side of decision making factors of ship investments, 'shipping market conditions and future prospects', 'ship's price and future prospects, and 'securing cargoes and future prospects' are ranked as top 3 factors. For government shipping policies side, 'shipping finance provided by lease companies', 'establishment of Korea Shipping Guarantee Fund', and 'establishment of Korea Shipping Finance Corporation' are verified as the important factors.

• Journal of Korea Port Economic Association
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• v.32 no.1
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• pp.17-28
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• 2016

This study examines the cruise course network structure in the Asian regions and the centrality of ports using social network analysis (SNA). For network analysis of Asian cruise courses, a data network of cruise courses was constructed using data on courses of cruise ships operating in Asian ports collected from the reports of the Cruise Lines International Associations.There are 249 nodes or ports of ship companies that provide cruise courses to Asia between from October 2015 to June 2016, and these nodes connect 545 ports. Density analysis based on ports where cruise ship companies operated cruise ships showed that, from October 2015 to June 2016, the density was 0.009, which was lower than the average of global port network density (2006 to 2011) and railroad network density. In addition, was calculated to be, which means that connection with all ports was possible through 2,180 steps. In the analysis of the Asian cruise course network centrality, Singapore ranked first in both out-degree and in-degree in connection centrality, followed by Hong Kong, Shanghai, Ho Chi Minh, and Keelung. Singapore also ranked first in the result betweenness centrality analysis, followed by Penang, Dubai, and Hong Kong. From October 2015 to June 2016, the port with the highest Eigenvector centrality was Hong Kong, followed by Ho Chi Minh, Singapore, Shanghai, and Danang. In the case of the domestic ports Incheon, Busan, and Jeju, connection centrality, betweenness centrality, and Eigenvector centrality all ranked lower than their competitor Chinese ports.