• Journal of Distribution Science
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• v.16 no.10
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• pp.31-38
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• 2018

Purpose - The purpose of this paper is to seek some alternative to overcome difficult shipping situations for overcapacity pursuing economy of scale, which is widely spread in world shipping. Research design, data, and methodology - The research method to be adopted is first to review evolution of larger ships in terms of theoretical overview, and shipping market is examined, and it is studied some problems and solutions in relation to larger ship as field research aspects. Results - Supply and demand of shipping market is flexible and unpredictable nature of market. Sometime fierce competition has spread out the market, and shipowner may deploy mega ship in terms of economy of scale, etc., to overcome the difficult market situations. Both carrier and shipper have their own positions in this matter concerned. However, it causes some problems in the market including port matters, etc. Therefore, it is asked to solve this problems of larger ship employed in the markets, throughout shipping alliances, etc. Conclusions - Over tonnage done by larger ship has caused some problems in the shipping markets, forming monopolistic market by small number of larger shipping companies, destroying oligopolistic nature of shipping business, therefore, the answer is strategic alliance to collaborate each other.

• Journal of Navigation and Port Research
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• v.36 no.5
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• pp.409-418
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• 2012

Amid global economic crisis and skyrocketing oil prices, container shipping companies have raised a sustained series of efforts to reduce vessel operating costs. Under these circumstances, the Grand Alliance has decided to install the dedicated feeder instead of additional vessels in the CCX(Central China Express) and the NCE(North China Express) route. In other words, a vessel in a trunk route is transshiped by a dedicated feeder vessel in Busan port that is a transshipment port, rather than calling at Northen China port. In this study, the actual operating data of Grand Alliance container services were analyzed to determine the economic effect of transshipment through a dedicated feeder service. In this way, the Grand Alliance are saving vessel operating expenses in 'NCE' and 'CCX' routes, making the slow steaming of vessels possible in these trunk routes.

• Journal of Navigation and Port Research
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• v.33 no.7
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• pp.483-490
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• 2009

In recent years, shipping and ports industries are faced with enormous changes like globalization, market liberalization and borderless businesses. To cope with this competitive environment, a certain form of cooperation among ports is necessary to provide high quality of services and lower costs to establish their market power against shipping companies. The purpose of this study is to identify the motivation of the strategic alliances between ports and demonstrate the level of importance using Analytic Hierarchy Process(AHP). Among four motivations of the strategic alliances which are strategic motivation, economic motivation, operational motivation and marketing motivation, economic motivation is the most important factor for ports alliances than other factors. This is because economic motivation among strategic alliances allow ports in the same market to rationalize supply and demand, thus avoiding unnecessary over-supply and over-competition and also can reduce service costs by using comparative advantages of each partner which make costs cheaper.

• Korea Trade Review
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• v.44 no.6
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• pp.267-283
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• 2019

This study analyzes how the port connectivity network has changed with the restructuring of the liner shipping alliance and explores the impact of these changes on network characteristics using social network analysis (SNA). While due to economies of scale, the scale of ports and liner shipping has expanded, the goal of shipping companies has changed to achieve cost-effectiveness due to the diseconomies of scale. Such changes in the environment have greatly affected ports according to the strategies of major liner alliances, and port centrality has shifted in response to restructuring in strategic alliances. This research confirmed that port centrality has continuously changed, and the reason for this phenomenon was analyzed through the derived main network centrality indices. This finding provides significant implications for port authorities and terminal operators to consider different perspectives when planning for sustainable growth and management.

• Journal of Korea Port Economic Association
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• v.33 no.3
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• pp.105-120
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• 2017

This study analyzed changes in the competitive structure of the global shipping container market and the appropriate capacity of the container fleet in Korea from three perspectives. The competitive market analysis applied the market concentration ratio and Hirschman-Herfindahl index, while the appropriate capacity analysis was based on the following three aspects: (1) Fleet capacity to secure competitiveness in the global shipping alliance; (2) Fleet capacity to increase national fleet coverage of domestic import and export container cargo; and (3) Fleet capacity analysis through the panel model considering the characteristics of the major shipping countries. Analysis of the global shipping container market reveals an oligopoly industry, and Korea's container fleet capacity is insufficient across all three analyses.

• Journal of Navigation and Port Research
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• v.35 no.8
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• pp.691-699
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• 2011

The culture is a criteria of behavior and judgement for the member of the society and it also affects strategic alliance. The fail of strategic alliance between lines is affected more culture factors than financial factors and sales factors. Due to cultural factors impact on the strategic alliance partner for the failure of the most overlooked result of cultural differences so than most other factors, cultural factors should be considered for the first. Openness to cultural understanding and our partners, strategic alliances, consider the satisfaction of the members to perform successfully, can lead to strategic alliances.

• 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 Korean Institute of Industrial Engineers
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• v.37 no.4
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• pp.311-322
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• 2011

The core of this research studies the strategic alliance of airlines, container shipping liners, and port operators that have shown successful results through the recent differentiated strategic Alliance Network, although a difference of scale exists between these firms and the small and mid-sized International Logistics firms, but because of the worldwide traditional Alliance Network of International Logistics firms, HTFN's(High Tech Forwarder Network) half hearted attitude and the small scale alliance of the small and mid-sized International Logistics firms organized in 1998 cannot breakthrough the present strenuous situation. And these results, creating an attempt to save our country's International Logistics Industry which have fallen into depression, suggests an awakening of a new strategy based on specialized nationals innovative IT-which does not exist in the world market-by categorizing our country's small and mid-sized International Logistics firms which are active worldwide.

• Journal of Navigation and Port Research
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• v.32 no.4
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• pp.287-294
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• 2008

Recently, amount of cargoes from main ports in Northeast Asia have rapidly increased and as well surplus port development in same region corresponded with the boom in external trade that resulted from successful export-oriented economics strategy by China, Japan and South Korea. To cope with this business circumstances, a certain form of port alliance is desperately needed to provide a suitable service to customer and establish their countervailing power against the shipping alliance. Nevertheless, Incheon seaport has not made a definite port alliance system with main ports in Northern China yet. Thus, the purpose of this study is to identify the key success factors to form a port alliance through examining previous studies. We have benchmarked previous studies which are related to main ports in global region and the questionnaire on customers of ports. By studying this, we are able to suggest a few strategies for forming successful port alliance to enhance Incheon port's capabilities in the long term plan. As a policy proposal, this study suggests Incheon port and main ports in Northern China should construct a logistics infrastructure through mutual investment and provide an incentive system when the ocean carrier makes port call to both ports.

• Journal of Distribution Science
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• v.14 no.6
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• pp.99-106
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• 2016

Purpose - The antecedent to the relationship between the effect of the characteristics of strategic alliances and the performance of container liner shipping companies has been investigated in this study as container liner shipping companies' strategic alliances. It affects positively and negatively home, partner, and the third parties' performance in container liner shipping companies. Extensive literature reviews on shipper's strategic alliances reveal that strategic alliances in financial and non-financial performance of container liner shipping companies show the performance such as economic effects, business performance, global supply chain management performance, customer satisfaction, and forward integration and backward integration performance. The purpose of this study is to test empirically that the relationship between the characteristics of strategic alliances and financial and non-financial performance in container liner shipping companies. Structured equation modeling and confirmatory factor analysis were used to test the hypothesis using AMOS statistics program. Most previous researches focused on the relationship between the characteristics of strategic alliances and alliance types. There are few empirical studies that focus on business performance data because it is difficult to collect data in container liner shipping companies. However, this research measures financial and non-financial performance differently compared with the previous researches focusing on the characteristics of strategic alliances and alliance types measurements. Research design, data, and methodology - The conceptual model for the study is based on the studies of Lim (2010), Chen & Zhen (2009), and Wang & Meng (2014). The model is built around the factors of characteristics of strategic alliances and business performance. Cost, marketing, and service factors are regarded as proxy for the characteristics of strategic alliances. The financial and non-financial performance are regarded as proxy for the performance of strategic alliances. Based on the analysis of one hundred cases such as forwarder, shipper, and liner shipping companies, this study uses structural equation modeling to verify the effects of the characteristics of strategic alliances on business performance. Conclusions - This study provides container liner shipping companies to get some policy and practical implications in terms of the characteristics of strategic alliances and business performance. First, the cost factor for alliances characteristics has a positively significant influence on the financial and non-financial performance of strategic alliances. The cost factor relationship between high and low performance group does not have a significant difference on the performance of strategic alliances. Second, the marketing factor of alliances characteristics has a positively significant influence on the financial and non-financial performance of strategic alliances. The high performance group's marketing factor has a great non-financial performance than low performance group, but the low performance group's marketing factor has a grater financial performance than high performance group factor does. Third, the service factor of alliances characteristics has a negative influence on the non-financial performance of strategic alliances. The high performance group's service factor has a great non-financial performance than low performance group. Based on the findings from this study, related implications and future avenues deserve to be discussed.