Exploring how transnational environmental governance and the operation of global value chains (GVCs) intersect is key in explaining the circumstances under which mandatory disclosure can improve the environmental footprint of business operations. We investigate how the governance dynamics of the tanker shipping value chain (a major emitter of greenhouse gases) limits the effectiveness of the European Union (EU) monitoring, reporting, and verification (MRV) regulation, which mandates the disclosure of greenhouse gas emissions for ships calling at EU ports. Although MRV seeks to help shipowners and ship managers save fuel and reduce emissions, it does not address the complexity of power relations along the tanker shipping value chain and currently cannot disentangle how different actors influence the design, operational, commercial, and ocean/weather factors that together determine fuel consumption. In particular, the EU MRV neglects to reflect on how oil majors exert their power and impose their commercial priorities on other actors, and thus co-determine fuel use levels. We conclude that, in its current form, the EU MRV is unlikely to lead to significant environmental upgrading in tanker shipping. More generally, we argue that regulators seeking to facilitate environmental upgrading need to expand their focus beyond the unwanted behaviors of producers of goods and providers of services to also address the incentive structures and demands placed on them by global buyers.
The regionalization process promoted by the EU's Common Fisheries Policy (CFP) enabled the formulation of a new governance arrangement at the sub-national regional level of the Northern Adriatic Sea (NAS). Given the potential for dominating narratives to foster simplified solutions for fishery management, the article sought to analyze discourse formations across Italian Regional Fishery Departments (RFDs) of the NAS. A discourse analysis based on the Discursive Agency Approach (DAA) delineated the discursive strategies, while a weak vs strong sustainability narrative was adopted to broadly group stakeholders into discourse coalitions. The results showed the presence of a dominating narrative in RFD settings, prioritizing the economic growth of the fishery sector - particularly the trawling industry - over current environmental concerns. The study points to a possibly increasing dominance of weak sustainability narratives in the Italian NAS and invites for stakeholders' representation to significantly broaden and diversify, enabling the development of multifaceted solutions to the NAS crisis.
The literature on liner shipping includes many models on containership speed optimization, fleet deployment, fleet size and mix, network design and other problem variants and combinations. Many of these models, and in fact most models at the tactical planning level, assume a fixed revenue for the ship operator and as a result they typically minimize costs. This treatment does not capture a fundamental characteristic of shipping market behavior, that ships tend to speed up in periods of high freight rates and slow down in depressed market conditions. This paper develops a simple model for a fixed route scenario which, among other things, incorporates the influence of freight rates, along with that of fuel prices and cargo inventory costs into the overall decision process. The objective to be maximized is the line’s average daily profit. Departing from convention, the model is also able to consider flexible service frequencies, to be selected from a broader set than the standard assumption of one call per week. It is shown that this may lead to better solutions and that the cost of forcing a fixed frequency can be significant. Such cost is attributed either to additional fuel cost if the fleet is forced to sail faster to accommodate a frequency that is higher than the optimal one, or to lost income if the opposite is the case. The impact of the line’s decisions on CO2 emissions is also examined and illustrative runs of the model are made on three existing services.
The decarbonisation of shipping has become a high priority on the environmental and political agenda. The prospect of implementing an Emissions Trading System (ETS) for shipping has come to prominence as a proposed mechanism for speeding up the decarbonisation of the industry, with the EU taking proactive action to include shipping within the EU ETS by 2023. This paper analyses and provides a qualitative review of the historical development of the discussions and actions taken at both global level (by the International Maritime Organization (IMO)) and at regional level within the EU. A SWOT analysis of the potential implementation of an ETS for shipping is then presented. The paper concludes that an ETS for shipping can incentivise greater investment in, and deployment of, green technologies that will have the effect of reducing the carbon footprint of the shipping industry. However, the speed and significance of this effect will depend upon the specific shipping market segment and the relative stage in shipping market cycles over time. It is further concluded that despite the imminent unilateral introduction of shipping into the EU ETS, it is important that the IMO continues its work to develop a global ETS that promotes a ‘level playing field’ for competition within the sector and eliminates the risk of carbon leakage.
Purpose: A service production system has a structure composed of task execution, agents performing tasks and a resulting service output. The purpose of this paper is to understand how such a service production system changes as a consequence of offshoring.Design/methodology/approach: Drawing on practice theory, the paper investigates how offshoring leads to reconfiguration of the service production system. Through a multiple case methodology, the authors demonstrate how agents and structures interact during reconfiguration.Findings: The paper analyses the reconfiguration of components of a service production system in response to change ignited by offshoring. The authors find recurring effects between structures that enable and constrain agents and agents who shape the structure of the production system. Research limitations/implications: The paper offers a novel contribution to the service operations management literature by applying practice theory. Moreover, the authors propose a detailed, activity-driven view of service production systems and service offshoring. The authors contribute to practice theory by extending its domain to operations management.Practical implicationsService production systems have the ability to self-correct any changes inflicted through offshoring of the systems, which helps firms that offshore.Originality/valueThe paper is aimed at service professionals and offshoring managers and proposes a novel presentation of the service production system with a description of how it responds to offshoring. The authors contribute to theory by applying practice theory to the fields of service operations management and offshoring.
This chapter examines the role of industry self-regulation in relation to international maritime law. While multilateral intergovernmental agreements are important to encouraging regulatory harmonisation, private actors have an essential role in industry, both in developing norms and in making rules and standards effective to ensure safe and secure shipping on clean oceans. Nonetheless, private actors are often overlooked and yet to be placed in the context of international maritime law and especially the United Nations Convention of Law of the Sea (UNCLOS). This chapter does so by analysing industry self-regulation in relation to UNCLOS, flag states and the International Maritime Organization (IMO) respectively.
There is a gradual but clear transition towards a circular economy (CE) that will potentially have significant impacts on ports, both in their function as transport nodes and as locations for logistics and manufacturing activities. A rough appraisal of new investments in circular manufacturing activities in ports in Europe drawn from organizational reports and official webpages illustrates the (slow) development of circular activities in ports. This paper is to our knowledge the first paper which deals with the implications of CE for the business model of the port development company. We assess if and how the circularity transition affects the role and business model of port authorities as developers of port clusters. We outline a framework for analyzing the consequences of CE on the business model of the port authority. We then apply this framework to get a detailed understanding of the emerging CE ecosystem in the Port of Amsterdam, which is clearly a frontrunner in the transition, and the role of the government-owned Port of Amsterdam port development company (PoA) in developing this ecosystem. In Amsterdam, a CE 'business ecosystem' has emerged and continues to evolve with three types of synergies between the companies in this ecosystem: logistics infrastructure and services synergies, input-output synergies and industrial ecology synergies. We find that the spatial scale of the CE value chains in the port varies between segments and that they are generally less international than 'linear' value chains. The development of CE activities occupies a central place in PoA's strategy, and PoA assumes new and active roles in advancing the circular business ecosystem, most notably through developing industrial ecology synergies and nurturing and attracting new, innovative CE companies. Finally, the circularity transition leads to changes in PoA's business model, with an increasing focus on new services that create synergies, and a decreasing importance of the share of port dues in the total revenue mix.
This article discusses the role of private regulators within the international legal framework of Arctic shipping. The role of private actors has been acknowledged both in legal scholarship and policy papers; but it has not yet been placed in the centre of attention. This article does so by analysing the role of private actors under the Polar Code and three types of private regulation — guidelines of classification societies, requirements of insurance industry and private contracting. It concludes that private actors have an essential role both in developing and effectuation of public international law and thus in achieving sustainable Arctic shipping.
This paper discusses how public interests in seaports can be secured in the corporatized model. This corporatized model, in which port authorities engage in port development on a commercial basis, is increasingly used. We discuss in detail an important question that so far has not received attention in the literature on port governance: how can the public shareholders use their influence as shareholders of port authorities to achieve public policy goals. We advance the theoretical body of knowledge by applying insights from regulatory economics to the port industry. As an empirical illustration, we analyse the current practices of the public shareholders of the four large Dutch port authorities, based on policy documents and interviews. All of them have explicit shareholder policies. However, some of these policies are too broad to provide sufficient direction for the management team and supervisory board of the port authority involved.