This paper examines if eco-rating schemes improve environmental outcomes in the context of the
international shipping industry. Shipping faces global environmental challenges and has recently
witnessed the introduction of several eco-rating schemes aiming to improve the environmental
performance of ships. Extending the private environmental governance literature into a mature
service industry with global operations, the paper shows that concerns about eco-rating schemes’
effectiveness also have relevance here. Shipping eco-rating schemes fall short of best practices for
design and governance, and this hampers improvement efforts. The study has policy implications for
the achievement of improved environmental outcomes in the shipping industry.
In this article, we examine the relations between global value chain governance and environmental upgrading in maritime shipping. Drawing from interviews with global shipping companies and major buyers of shipping services (cargo-owners), we reveal the key issues and challenges faced in improving the environmental performance of maritime transportation. Contributing to the Global Value Chain (GVC) literature, we compare and analyze the influence of three main external drivers on environmental upgrading in the tanker, bulk and container shipping segments: regulation, cooperation and buyer demands. Our findings suggest that environmental upgrading is more likely to occur when global value chains are characterized by unipolar governance and where the lead firms are consumer-facing companies with reputational risks. Furthermore, environmental upgrading in shipping is not likely to materialize without clear and enforceable global regulation and stronger alignment between regulation and voluntary sustainability initiatives.
To mitigate climate change due to international shipping, the International Maritime Organization (IMO) requires shipowners and ship technical managers to improve the energy efficiency of ships’ operations. This paper studies how voyage planning and execution decisions affect energy efficiency and distinguishes between the commercial and nautical components of energy efficiency. Commercial decisions for voyage planning depend on dynamic market conditions and matter more for energy efficiency than nautical decisions do for voyage execution. The paper identifies the people involved in decision-making processes and advances the energy-efficiency literature by revealing the highly networked nature of agency for energy efficiency. The IMO’s current energy efficiency regulations fail to distinguish between the commercial and nautical aspects of energy efficiency, which limits the ability to mitigate climate change through regulatory measures. Policymakers should expand their regulatory focus beyond shipowners and technical managers to cargo owners to improve energy efficiency and reduce maritime transport emissions.
Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that container carriers operate differently and follow different paths in their internationalisation development. Additionally, the degree of internationalisation, measured on the basis of sea-oriented operations, differs from that measured according to land-oriented front-end marketing and sales activities. The purpose of this study is to further examine the internationalisation patterns of shipping lines. An examination of the front-end activities and the structures of leading container-shipping companies is conducted. The sales office networks of the sector’s 20 largest companies worldwide (by twenty-foot equivalent unit capacity) are analysed as key indicators. The numbers of sales offices are measured by analysing the websites of the sample (20 companies), as well as annual reports and other publicly available data sources. The findings show that not all shipping companies are international, by virtue of the industry. While it is difficult to observe differences in the overall patterns of the sales networks at a macro level, some companies differ in their activities. The data set also shows that market share and total capacity are not necessarily good indicators of a carrier’s worldwide presence. This research is based on secondary data. Other important transactional and market-oriented considerations should be examined before drawing conclusions about the internationalisation of container-shipping companies and of the industry. This paper contributes to the relevant existing research, particularly by adding its view on the demand-oriented criteria as suggested by Dunning and Lundan (2008).
Maritime transport carries around 80% of the world’s trade. It is key to the economic development of many countries, it is a source of income in many countries, and it is considered as a safe and environment friendly mode of transport. Given its undisputed importance, a question is what does the future hold for maritime transport. This chapter is an attempt to answer this question by mainly addressing the drive to decarbonize shipping, along with related challenges as regards alternative low carbon or zero carbon marine fuels. The important role of maritime policy making as a main driver for change is also discussed. Specifically, if maritime transport is to drastically change so as to meet carbon emissions reduction targets, the chapter argues, among other things, that a substantial bunker levy would be the best (or maybe the only) way to induce technological changes in the long run and logistical measures (such as slow steaming) in the short run. In the
long run this would lead to changes in the global fleet towards vessels and technologies that are more energy efficient, more economically viable and less dependent on fossil fuels than those today. In that sense, it would have the potential to drastically alter the face of maritime transport in the future. However, as things stand, and mainly for political reasons, the chapter also argues that the adoption of such a measure is considered as rather unlikely.
This chapter discusses European policies as regards short sea shipping (SSS) and intermodality. To that effect, a broad perspective is mainly taken, as recently there have been numerous policy initiatives in Europe that deal directly or indirectly with both sectors. The chapter takes stock at the situation as regards European ports and SSS and discusses challenges and prospects for the future. The analysis looks into both ports and SSS in a strict sense and other factors that are related, directly or indirectly, and that may have important ramifications. These other factors include EU port deregulation, the role of rail transport, environmental regulations, sulphur regulations, port security, and others. The chapter tries to explain the causes of current problems, investigates cross-linkages and makes suggestions for possible improvements.
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.
This article seeks to provide a sociological understanding both of the logistics service field and of the impact the COVID-19 pandemic has had on this field. To address this issue, we analyze the case of logistics services used by the shipping industry to manage maritime safety, namely statutory and classification services. These services verify the compliance of shipping vessels with private and public safety norms. We develop the Bourdieusian concept of nomos, according to three dimensions: A normative framework, a legitimate vision, and structural divisions. The findings highlight a complex set of industrial and regulatory norms which give rise to complementary and sometimes overlapping obligations. Nomos materializes as some actors, typically IACS member societies, benefit from an uncontested legitimacy to deliver such services, whereas other actors are excluded for a variety of reasons.
In 2018 the International Maritime Organization (IMO) agreed to cut the shipping sector’s overall CO2 output by 50% by 2050. One of the key methods in reaching this goal is to improve operations to limit fuel consumption. However, it is difficult to optimize speed for a complete liner shipping network as routes interact with each other, and several business constraints must be respected. This paper presents a unified model for speed optimization of a liner shipping network, satisfying numerous real-life business constraints. The speed optimization is in this research achieved by rescheduling the port call times of a network, thus, the network is not changed. The business constraints are among others related to transit times, port work shifts and emission control areas. Other restrictions are fixed times for canal crossing, speed restrictions in the piracy areas and desire for robust solutions. Vessel sharing agreements and other collaboration between companies must also be included. The modeling of the different restrictions is described in detail and tested on real-life data. The scientific contribution of this paper is threefold: We present a unified model for speed optimization together with numerous business constraints. We present a general framework for handling routes with different frequencies. Moreover, we present a bi-objective model for balancing robustness of schedules against fuel consumption. The tests show that the real-life requirements can be handled by mixed integer programming and that the model finds significant reductions of bunker consumption and cost for large-scale real-life instances.
Major liner shipping companies offer pre- and end-haulage as part of a door-to-door service, but unfortunately pre- and end-haulage is frequently one of the major bottlenecks in efficient liner shipping due to the lack of coordination between customers. In this paper, we apply techniques from vehicle routing problems to schedule pre- and end-haulage of containers, and perform tests on data from a major liner shipping company. The paper considers several versions of the scheduling problem such as having multiple empty container depots, and having to balance the empty container depot levels. The influence of the side constraints on the overall cost is analysed. By exploring the fact that the number of possible routes in the considered case is quite limited, we show that the model can be solved within a minute by use of column enumeration. Alternative constraints and problem formulations, such as balancing empty container storage level at depots, are considered. Computational results are reported on real-life data from a major liner shipping company.