The rapid growth of e-commerce applications has promoted the establishment of shipping e-commerce channels by many liner companies in addition to their existing traditional Non-vessel operating common carrier (NVOCC) channel. Unlike NVOCC channels, shipping e-commerce channels guarantee shippers the availability of contracted container slots. However, some problems arise, including the competition with NVOCC channels, shipping slot sales’ risk, and the increasing liner companies’ costs. Therefore, this paper addresses optimal sales strategy selection in the liner transportation industry, including a single traditional NVOCC channel (TN) strategy, and a dual channel with both e-commerce and NVOCC channels (EN) strategy. Two contract scheme models are constructed considering the channel competition on canvassing ability, overselling behavior, demand fluctuation, and the limited liner vessel capacity. Findings show that the impact of overselling behavior on the profit under the EN and TN is not always negative, which is related to the shipping capacity and probability of the high canvassing ability. Comparative analyses reveal that the EN is dominant if the unit overselling compensation cost varies small. Meanwhile, the TN is profitable if the unit overselling compensation cost increases and the canvassing cost of e-commerce channel exceeds a certain value. Otherwise, the selection of sales strategy relies on the arrival rate, the canvassing cost of the e-commerce channel and shipping capacity. The results offer new insights to both theoretical research on container slot sales and the practical selection of sales strategy since shipping e-commerce has changed the slot selling mode in the container shipping industry, which could also enhance the competitiveness of liner companies in the container shipping industry.
The accelerated melting of the Arctic ice leads to the navigation of the Northern Sea Route (NSR) linking Asia and Europe, shortening transport channel between China and the European Union (EU). This has a significant impact on the China-EU bilateral trade which is analyzed in the present study. We present a framework based on a general equilibrium model for analyzing the impact of the NSR on the trade and the economies of China and the EU. Different fuel cost scenarios, consisting of fuel prices and sailing speeds on ice, are also considered. Specifically, we measure the changes in shipping costs between China and the EU, brought about by NSR navigation. These are used as a basis to quantify changes in transport technology. The Global Trade Analysis Project (GTAP) model is used to predict the trade and economic impacts. The results show that the NSR can save 0.98% in shipping costs and generate an increase in the exports of China and the EU in the order of 14,986 and 8,228 million US dollars, respectively. Among these exports, the mining industry shows the fastest growth, while the electronics industry experiences the largest increase in trade volume. Our findings reveal the potential of the NSR as an alternative route and its positive impact on bilateral trade between China and the EU. The results can provide a basis for shipping companies and governments to make decisions regarding the use of Arctic routes.
The authors revisit the literature on the use of expatriates and specifically Boyacigiller (1990) and examine whether OW Bunker, a Danish bunker oil trader, filled positions at its foreign units with traders transferred from its other units (expatriates). The authors test the generalizability and robustness of past findings on this topic by using a different dependent variable, sample, and methodology. Design/methodology/approach: By searching the traders' LinkedIn profiles and consulting secondary sources, the authors obtain data on current and previous positions and work location and type of customer handled (global or local). Using qualitative comparative analysis (QCA), the authors analyze 236 hiring decisions made between 1983 and 2014. Findings: The authors find that OW transferred expatriates, principally home-country nationals, to handle global customers in its large foreign subsidiaries located in high-income countries. In another clear pattern, expatriates were used to start new foreign subsidiaries. These results generally confirm those of Boyacigiller. However, and contrary to her findings, none of our scenarios for internal transfers feature expatriates being sent to culturally and institutionally distant subsidiaries unless it is to serve global customers, casting doubt on the idea that a major reason for using expatriates is to remedy a local shortage of skills or to handle political risk. Originality/value: The authors test the generalizability of Boyacigiller’s (1990) findings and confirm a large part of it. They extend her study by demonstrating that MNEs deploy expatriates not only to distant countries but also to close ones.
Once known as an example of state collapse, Somali territories today see a number of competing public administrations, which, as this book argues, depend on a dynamic trade sector for revenues. Riffing on Tilly’s idea that ‘war makes states,’ the authors argue instead that ‘trade makes states,’ that the facilitation and capture of commodity flows have been instrumental in making and unmaking state-projects across the Somali territories. The volume draws on multi-sited research of everyday economic life along trade corridors in Somali East Africa, including parts of Kenya and Ethiopia. It examines how government officials, informal traders, militias, local businessmen, international investors, and donors feed into systems of regulatory control in ports, at marketplaces, and along transport corridors. Contributions to the volume draw attention to the ingenuities of transnational Somali trade and the ‘politics of circulation,’ providing important insights into contemporary state formation on the margins of global supply chain capitalism.
Purpose: In the shipping industry, both sales and purchases of second-hand ships and freight transport services are prevalently tailor-made and traded with intense bilateral negotiations. Price bargaining is the key step of this negotiation process and plays a crucial role in determining mutually agreed prices. Despite its cruciality and applicability, the price bargaining has yet received due conceptual and/or theoretical attention in the shipping literature. This paper attempts to conceptually examine the role of bargaining in shipping transaction prices and subsequently puts forward directions for future research. In doing so, the paper focuses on two types of transactions taking place in shipping markets: asset market trading of second-hand vessels and service market trading shipping freights.
Design/methodology/approach: The paper begins with a systematic literature review of price bargaining in the field of economics and management disciplines from a game-theoretic perspective. This approach does logically lead to the establishment of a conceptual framework for price bargaining in shipping sub-markets as a step toward having taken into consideration a variety of heterogeneities commonly present in trading activities and market dynamics.
Findings: A set of research areas has been consequently identified where price bargaining and mechanisms for the shipping freight and asset markets could be further explored and analyzed in a way to make better pricing decisions under a more tangible framework.
Research limitations/implications: One of the critical challenges when using bargaining mechanisms to make a decision on pricing shipping services and assets is how to operationalize the study for empirical investigation as some of the factors are internal information of the players and are not adequately revealed to externals: that is, an imperfect information sharing case. The current study aims, however, not to conduct an empirical analysis but to initiate a conversation among maritime economists by bringing their attention to this not-yet fully explored and potentially impactful field of research and by asking them to treat bargaining from a perspective for pricing shipping assets and services. It is claimed that, by doing so, one could better understand price differences between individual contracts.
Originality/value: This study would be considered the first in its kind to provide a detailed survey of the bargaining theory and models from a game theoretical perspective as a theoretical lens to understand its importance and relevance in pricing shipping assets and services. It also provides a simplified operational case on utilizing bargaining in practically pricing freight services.
The Ghana National Single Window has become the focus of attention over its potential to move goods swiftly. However, since its inception in 2002, the controversies surrounding the implementation suggest issues beyond trade facilitation. The Information Systems literature primarily ascribes the controversies to resistance to technology. By adopting the Soft Systems Methodology (SSM) as a learning process for understanding port stakeholders' relations and attitudes, we explore the controversies to determine the meanings port stakeholders attribute to them. We combined SSM with interviews, media content analysis and focus groups made possible by snowballing. The responses were analyzed using rich pictures and validated through a conceptual model. The results reveal a fragmented government where ministries, agencies, and personalities assert power in single window implementation through I.T. vendor contracts. The situation results in a high cost of doing business at the port for shippers due to non-transparent and questionable contracts. The public's attitude towards the controversies reflects fears, hopes and expectations and legitimate concerns about important political and social goals. Using SSMs focus on relations and attitudes, we can document how controversies attributed to new technology is not a question of technology but of perceived political interference.
The world is witnessing a growth in economic nationalism, especially in countries like the United States and United Kingdom, where this would scarcely have been predicted a few years ago. These developments threaten the internationalization of services and gains made through various global trading arrangements. Moreover, there are concerns that the COVID-19 pandemic will further undermine supranational forms of governance and nurture the trend towards protectionism and economic nationalism. We undertake a systemic literature review on economic nationalism and services internationalization to identify research themes. The findings of the study have implications for policymakers, and we provide directions for future research.
What is the role of the sea in globalized capitalism? In their new book Capitalism and the Sea: The Maritime Factor in the Making of the Modern World, Liam Campling and Alejandro Colás explore this question through a historical and geographical lens. In this book, the authors track the larger history of maritime commerce and pursue new understandings of the role of the sea in the global economy. In doing so, they illuminate the understudied maritime spaces, systems, and flows that underpin the global economy and create the foundations of global material circulation.
Just as containerized goods appear to flow seamlessly across the planet's oceans, internationalized and standardized certificates present seafaring labor as uniform and seamless. But underneath these certificates are the intimate and unequal entanglements of local masculinity norms, age, and kinship ties that sustain the maritime labor supply chain. In this article, we follow how three young, male seafarers from eastern India find ways to contain piracy risks at work and poverty risks at home, and their sense of obligation as men, sons, husbands, and fathers. By delving into the unequal conditions for industrial male workers from the Global South, this article demonstrates how containerized maritime labor commodities are not uniform but are dependent upon economic inequality and intimate kinship ties to be productive.