• Journal of Navigation and Port Research
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• v.26 no.4
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• pp.391-398
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• 2002

The question of how to make strategic alliances work successfully is becoming increasingly important as more and more firms regard cooperative relationships as a means of improving their competitive position. The objectives of this research are to determine whether certain liner shipping alliance forms are more successful than others, whether the relative importance of reasons for successful liner shipping alliance varies with the different reasons, and whether the relative importance of reasons for alliance success varies with the form liner shipping alliances. The research findings have shown that the majority of liner shipping alliance forms, utilised by respondents in this survey, experienced a relatively high level of success. However, success was shown to be dependent upon a variety of factors and the reasons for successful alliance varied with the form of alliances.

• Journal of Navigation and Port Research
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• v.38 no.3
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• pp.307-315
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• 2014

This paper aims to empirically examine how shipping companies can effectively acquire knowledge from their strategic alliance partners. This paper adopts cooperative network embeddedness mechanism, such as network density and tie closeness, as a channel through which to acquire more knowledge for shipping participants within a strategic alliance network. This study also examines the moderating role of competition between alliance partners in reinforcing the effectiveness of the cooperative relationships on the knowledge acquisition. Based on the literature, hypotheses to predict the aforementioned associations between cooperative network embeddedness and knowledge acquisition and the moderating role of competition in facilitating that association are established. A quantitative research method using survey data conducted in the Korean shipping industry was employed in order to empirically test the presented hypotheses. The results show that if players in a shipping alliance network are embedded in a dense network and have close relationships with their alliance partners, this helps to facilitate a greater degree of knowledge acquisition from the partners; and the impact of network density on the knowledge acquisition would be intensified with the higher level of competition between shipping companies.

• Journal of Navigation and Port Research
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• v.48 no.1
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• pp.62-77
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• 2024

In the maritime shipping industry, imbalance between supply and demand has persistently increased, leading to the utilization of blank sailings by major shipping companies worldwide as a key means of flexibly adjusting vessel capacity in response to shipping market conditions. Traditionally, blank sailings have been frequently implemented around the Chinese New Year period. However, due to unique circumstances such as the global pandemic starting in 2020 and trade tensions between the United States and China, shipping companies have recently conducted larger-scale blank sailings compared to the past. As blank sailings directly impact freight transport delays, they can have negative repercussions from perspectives of both businesses and consumers. Therefore, this study employed Poisson regression models and negative binomial regression models to analyze the influence of maritime freight rate determinants on shipping companies' decisions regarding blank sailings, aiming to proactively address potential consequences. Results of the analysis indicated that, in Poisson regression analysis for 2M, significant variables included global container shipping volume, container vessel capacity, container ship scrapping volume, container ship newbuilding index, and OECD inflation. In negative binomial regression analysis, ocean alliance showed significance with global container shipping volume and container ship order volume, the alliance with container ship capacity and interest rates, non-alliance with international oil prices, global supply chain pressure index, container ship capacity, OECD inflation, and total alliance with container ship capacity and interest rates.

• Journal of Navigation and Port Research
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• v.30 no.7
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• pp.579-583
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• 2006

The purpose of this paper is to study a relationship between alliance success factors and performances of strategic alliance. In order to achieve the purpose of this research, factor analysis, reliability and validity and regression method are used. In conclusion, alliance success factors can be divided as mutual complementarity and information sharing factor, sharing and mutual agreement of vision and goal factor, performance management factor and culture and organization factor. According to regression results, all of four factors affects significantly dependent variables. Among them, mutual complementarity and information sharing mostly affects each dependent variable.

• Journal of Korea Port Economic Association
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• v.27 no.3
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• pp.247-272
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• 2011

Because of operating and ordering vessels over 10,000 TEU, the strategic alliance between liner shipping companies will be diversified and activated more briskly to secure cargo quantities, minimize costs, secure profits, improve service quality and manage stable business. Many of prior studies concerning strategic alliance are carried out to clarify success factors, motives or to explain how to select a good partner for success. But over 70% of strategic alliance has been resulted in failure. Because failures of strategic alliance occur much more frequently than success, negative effect factors in strategic alliance have to be measured and be adapted to changing conditions in the shipping market. To improve negative effect factors, shipping companies should make an effort to establish reliable relationships between partners and suppress claims by clearing off imprecise contract terms. And it is necessary to increase satisfaction of each individuals and minimize complexity occurred due to the exterior relationships for the successful strategic alliance.

• Journal of Korea Port Economic Association
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• v.21 no.3
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• pp.115-148
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• 2005

In the liner market, a strategy is hard to sustain as competitors can easily imitate the strategy. For examples, when a number of shipping companies pursue this space exchange strategy in a liner market, their competitors are likely to build a cooperative alliance, following similar strategic pattern without any difficulty. Such strategic imitations are universal in international liner market. Therefore, the success of global alliance requires following critical considerations. First, the strategy of global alliance should be designed the way it gives the liner operators an economy of scale, which could be a key advantage in the competitive market. Second, thorough global alliance the lines should be able to improve their transport service through the reduction of operating costs and the business rationalization. The international alliance today is characterized by a strategic cooperation among a limited number of 'mega-carriers'. Such cooperation between the large-sized operators has come in many different forms. However, the trend has been towards the space exchange agreement, where a carrier on a route offers to another carrier a fixed number of spaces for a fixed period of time. the major carriers have been entered into groupings by integrating their services structures to increase market power. With reference to the above, this study has the following primary objectives: (1) to explore the present status of global alliance in liner shipping industry, (2) to prospect the future trend of the global alliance.

• Journal of Distribution Science
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• v.15 no.12
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• pp.31-39
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• 2017

Purpose - The purpose of the paper is to examine shipping markets exposed on severe competition after Lehman Brothers crisis in 2008, and look for some alternatives to get it over. Research design, data, and methodology - The research method to be applied is first to look into world economic situations, and then to investigate supply and demand of shipping markets, and strategic alliances as alternatives, which lead to some implication and lessons. Results - After the fierce world economic situations after Lehman Brothers crisis in U.S, it has shown that world economic output and growth is not like that of previous years. It is periods of new normal. Then, shipping has been influenced by less trade volumes and, however, shipping capacity has reached to overcapacity in supply terms. Therefore rates down is clear, and it should be needed new way of getting it over market situations. In this sense, strategic alliance is answer for overcoming difficult markets. Conclusions - From the careful look at all situations, such as world economic situation, supply and demand of shipping market, deep understanding for strategic alliances of shipping, it has reached to conclusion that strategic alliance is only answer for difficult shipping markets.

• Journal of Navigation and Port Research
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• v.48 no.4
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• pp.284-293
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• 2024

As the importance of container ships in maritime transport grows, the demand and supply for such vessels have been increasing. To reduce costs and improve operational efficiency, container shipping lines have formed shipping alliances, engaging in joint operations and vessel-sharing arrangements. Since the establishment of these alliances in 1995, they have evolved in various forms. In 2024, Maersk and Hapag-Lloyd announced the formation of a new shipping alliance, the 'Gemini Cooperation,' set to begin in February 2025, signaling a potential realignment of shipping alliances. This shift will significantly impact operations of ports like Busan. In the case of Busan Port, the inability of a single terminal to accommodate large shipping alliance vessels has led to an increased reliance on multiple terminals, which in turn has caused an increase of inter-terminal transportation cost and a decrease in operational ef iciency. Therefore, this paper aimed to examine changes in shipping alliances since 2012, analyze the current usage of container terminals at Busan Port, and propose strategies for efficient port operations in response to expected realignment of shipping alliances.

• 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 Korea Trade
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• v.23 no.6
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• pp.145-158
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• 2019

Purpose - Alliance members have constantly revised market strategies over time by withdrawing membership from a current alliance, joining another alliance, or constructing a new alliance. From the perspective of the signaling effect, the purpose of this study is to analyze the impacts of partner volatility (new member, old member, and new group) on firm value. Design/methodology - To analyze the impact of partner volatility on firm value, companies in strategic alliances are classified into the three groups of new partner, existing partner, and new alliance, and the effects on company value are verified through an event study and the signaling effect analysis. Findings - This study proved that new partners and newly formed strategic alliances have higher expectation effects than old partner company groups, and have a more positive effect on the relevant firms' stock prices. In addition, the result of the study showed the same valid results as the alliance levels, and showed that investors' expectations were higher with new partners and new alliances than with old partners. Research Implications - A new perspective on the signaling effects of strategic alliances among shipping lines was presented in this study by grouping alliance types including new member, old member, and new group. The results provide useful insights for selecting partners and firm values of alliance announcement times. Originality/value - This study analyzed partner volatility on relevant companies' stock prices from the perspective of investors from the global shipping conference reorganization in 2017. Strategic alliances were classified into the three categories of new partner, old partner, and new alliance, and the effects on firm value were verified.