PolyU IR Collection: LMS Conference Papers & Presentations

Scale diseconomies and efficiencies of liner shipping

Sat, 01 Jan 2011 00:00:00 GMT

Title: Scale diseconomies and efficiencies of liner shipping

Authors: Yip, T. L.; Lun, Venus; Lau, Yui Yip

Abstract: In the context of liner shipping, carrying capacity can be seen as a key resource to strive for better firmperformance. The liner shipping market nowadays has entered a phase in which liner shipping companies(LSCs) reap economies of scale. The concept of economies of scale has led the industry to grow byenlarging its capacity and firms allocate more ships to offer shipping services in the worldwide market.However, the results of enlarged capacity may be uncertain. By examining empirical data (from 1997 to2008), this paper investigates the relationship between capacity and firm performance in the liner shippingindustry and attempts to use an S-curve to describe their relationship. The findings suggest that the S-curve isrobust. Furthermore, this study attempts to provide theoretical basis for shipping lines to determine theoptimal carrying capacity.

Port spatial development and theory of constraints

Sat, 01 Jan 2011 00:00:00 GMT

Title: Port spatial development and theory of constraints

Authors: Chan, Wing Yee Tracy; Yip, T. L.

Abstract: Ports in different regions look for further developments to improve their ports to compete with others and deal with the demand of sea transport. A common way to deal with the increasing demand of sea transport and competing with adjacent ports is to expand the port. Due to the lack of structural guidance on this concentration-deconcentration issue, this paper aims at proposing a decision framework to determine whether a port development should be at the original site or a new site. In particular, a port spatial development model is developed based on Bird’s Anyport Model and the Theory of Constraints (TOC). A framework of decision making is further formulated by considering major constraints (geographical, economic, and supporting constraints). In a systematic manner, the framework includes four steps for making decisions of port spatial development: port planning, site consideration, analysis, and decision making. Using Taiwan’s Keelung and Taipei ports as case studies, the paper investigates the conditions in deciding whether port development would spatially concentrate or de-concentrate. The case studies suggest that the framework developed in this paper provides guidance for port spatial development decisions. The decision framework is readily expanded and modified to include other important constraints on port development.

Evolution of global container operator efficiency: a DEA approach

Wed, 06 Oct 2010 00:00:00 GMT

Title: Evolution of global container operator efficiency: a DEA approach

Authors: Yip, T. L.; Sun, Xinyu; Liu, John J.

Abstract: Improving port efficiency can therefore have a significant impact on the whole maritime economy. Recognizing this fact, many governments have consistently prioritized the ports as a central element of infrastructure to promote regional economic growth. This paper treats container terminal operators as the Decision Making Unit, which represents a divergence from previous port efficiency studies. We compile a panel data of 141 global container terminal operators from 1997 to 2005 to study the efficiency of container operator production. We use the Data Envelopment Analysis (DEA) to compute efficiency scores. We add country and port characteristics into our model except output/input. We examine the contribution of productivity to operator output based on the long time series. The efficiencies of different operators in same port are showed to investigate the core sources of productivity growth.

Culture effects on vessel detention

Thu, 07 Oct 2010 00:00:00 GMT

Title: Culture effects on vessel detention

Authors: Bao, Lingyan Stella; Yip, T. L.

Abstract: This paper applies Hofstede’s cultural dimensions into the shipping industry and analyzes the culture effects on vessel detention. All ships have their own nationality but the flag control is manageably sophisticated. Substandard ships are aware of high risks, and quality control of ships is critical to the maritime safety and security. It has been proved that the detention rate depends on the flag of registry together with ship age, inspecting authority, type of ship, and recognized organization influencing. Previous research has focused on the performance of individual flag of registry in terms of casualty and detention rate. This study considers the collective characteristics of flags according to culture effects and their influences on ship quality. Based on Hofstede’s five‐dimension culture theory, we map the flag states on culture dimensions. From 12,635 detention records of the Tokyo MOU region from 2000 to 2009, we determine the effect of culture dimensions against the vessel detention. The findings can be summarised in two aspects. First, the power distance index has little influences on the detention rate. Second, more importantly, the individualism, uncertainty avoidance index and long‐term orientation have positively impacts on the number of detentions. Our findings show that culture indeed has an effect on the vessel detention taken by different Port State Controls. A further look on the flag of registry is that the performance of individual flags may be better illustrated if individual flags are classified according to culture dimensions. This paper is organised as follows: Section 1 introduces the background; Section 2 discusses related literature; Section 3 considers the data collection and methodology; Section 4 concerns the findings; and Section 5 addresses conclusions and further research.