• Journal of Ship and Ocean Technology
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• v.11 no.2
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• pp.34-45
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• 2007

Environment of marine transportation market is changing rapidly. Due to globalization of world economy, marine transportation of cargos, especially trade using container boxes, is increasing dramatically. Fierce competition in the global market of container transportation forces the shipping industry to seek the economy of scale to reduce transportation cost, and drives the merge and alliance of liner shipping companies. Mega-sized container ships, having capacity over 10,000 TEU, were introduced, and appeared recently, in order to reduce the unit transportation cost. Korean shipping and shipbuilding companies are competitive, and have considerable market share in the global market. Even though both industries are inter-connected through ships and have many common interests in order to enlarge the global market share, inter-relation between two industries is surprisingly insignificant. In this paper current issues in the process of environmental change of marine cargo transportation are reviewed, and inter-relation of shipping and shipbuilding industries is discussed. Suggestions for inter-related development of Korean shipping and shipbuilding industries are given, and means for mutually beneficial collaboration are suggested.

• Journal of Korea Port Economic Association
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• v.31 no.4
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• pp.1-15
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• 2015

During global recessions, such as the 2008 financial crisis, Korean shipping companies have been undergoing a liquidity crisis that is comparably worse than other shipping companies worldwide. One of the reasons behind this repetitive vicious cycle can be the lack of ability to foresee the future by analyzing and understanding the volatile shipping market. Traditionally, in order to assimilate the shipping market, larger Korean shipping companies have been purchasing market reports published by Europe-based research companies and shipping brokers, leading to a digital divide by company size. To resolve this issue, the Maritime Exchange Information Center (MEIC) has been publishing shipping market reports that include essential shipping information such as freight rates by different routes; commodity trends for iron ore, grain, and coal; ship-building trends for new-building, second-hand, and demolition markets; as well as bunker price and port congestion. This research was conducted to analyze the effectiveness of four variables-information usefulness, market reflection, information composition, and latest information-on information satisfaction. If the information satisfaction was found to be adequate, the analysis of actual proof was used to determine if the customers would be willing to purchase MEIC's report when it is chargeable. All the four variables were found to have positive effects on information satisfaction. In particular, latest information was found to directly affect the intention to purchase. Furthermore, high information satisfaction was related to the intention to purchase.

• Journal of Navigation and Port Research
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• v.48 no.1
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• pp.62-77
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• 2024

In the maritime shipping industry, imbalance between supply and demand has persistently increased, leading to the utilization of blank sailings by major shipping companies worldwide as a key means of flexibly adjusting vessel capacity in response to shipping market conditions. Traditionally, blank sailings have been frequently implemented around the Chinese New Year period. However, due to unique circumstances such as the global pandemic starting in 2020 and trade tensions between the United States and China, shipping companies have recently conducted larger-scale blank sailings compared to the past. As blank sailings directly impact freight transport delays, they can have negative repercussions from perspectives of both businesses and consumers. Therefore, this study employed Poisson regression models and negative binomial regression models to analyze the influence of maritime freight rate determinants on shipping companies' decisions regarding blank sailings, aiming to proactively address potential consequences. Results of the analysis indicated that, in Poisson regression analysis for 2M, significant variables included global container shipping volume, container vessel capacity, container ship scrapping volume, container ship newbuilding index, and OECD inflation. In negative binomial regression analysis, ocean alliance showed significance with global container shipping volume and container ship order volume, the alliance with container ship capacity and interest rates, non-alliance with international oil prices, global supply chain pressure index, container ship capacity, OECD inflation, and total alliance with container ship capacity and interest rates.

• Journal of Korea Port Economic Association
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• v.37 no.4
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• pp.41-50
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• 2021

This study investigated what the general public thinks about the shipping industry and how important it is. As a result of the study, more than half of the respondents answered that they knew a little about the shipping industry or that they were normally knew about the shipping industry. Regarding the necessity of budget input to prevent bankruptcy of national shipping companies, it was found that more than half of the respondents answered that it was necessary or moderate. Regarding the necessity of maintaining a national shipping companies, 53% of respondents said it was necessary, and 23% of respondetns said it was normal. However, when asked if they thought that maintaining a national shipping companies would benefit me and my family, 39% of respondetns answered "normal" and 28% of respondetns answered "mostly". As for the cause of Hanjin Shipping's bankruptcy, 49% of respondents said that the owners' family members were immoral and incompetent, and 17.4% of respondetns said that the shipping market conditions deteriorated. Regarding the necessity of fostering the shipping industry, foreign currency acquisition and service balance improvement through export of shipping services accounted for 43.5%, and smooth transportation of import and export cargo accounted for 36.5%. When asked what kind of damage I suffered from Hajin Shipping's bankruptcy, 54.6% answered other (not much), and 14.5% said inflation. Abouve these results, this study gave implication in terms of public promotion and transparent business management.

• International Commerce and Information Review
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• v.13 no.2
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• pp.95-117
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• 2011

The Purpose of this study is to identify important factors in choosing liner shipping companies using the AHP. The Analytic Hierarchy Process(AHP), introduced by Satty T. L. in 1970, is a decision technique the has been applied to private and public sectors and to group decision problems. This paper will demonstrate the level of importance in 4 major factors: cost, service, transportation and promotion. In detail, the 4 major factors are divided into 14 sub-factors. In the present research, various service attributes for shipping lines were selected from previous studies and the observed data for 4 main service attributes were collected through a questionnaire survey from 26 concerned international freight forwarder experts. The conclusion of this study is as follows. First, it is found that the cost factor is the most important factor among the 4 main service attributes. It is very obvious that the cost factor directly affects the choosing the liner shipping company by international freight forwarders. Second, it is found that the second important factor in choosing the liner shipping company is the transportation factor and the third is the service factor. The promotion factor is underestimated, comparatively speaking. With the ever-increasing competition, liner shipping companies will need to study and understand the selection criteria of their clients(international freight forwarder), and apply the results to their daily and long-terms operations. In particular, liner shipping companies should establish a system to identify and sort the various selection criteria used by international freight forwarding companies.

• Journal of Korea Port Economic Association
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• v.33 no.1
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• pp.11-30
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• 2017

In addition to recession, world shipping companies are undergoing restructuring due to excess of "World Container Cargo volume" per "World Containership capacity" (in TEU terms). This excess is attributed to the absence of standard index of calculating the "World Containership capacity" (in TEU terms) for "World Container Cargo volume." The purpose of this study is to develop indices and terms: "World Containership capacity (in TEU terms) Standards Index; WCSI" and "World Containership capacity (in TEU terms) Expected Index; WCEI." The comparison between "WCSI" and "WCEI" made in this study is presented below. WCSI (Average voyage 9.3) > WCEI Excess shipping (in TEU terms) WCSI (Average voyage 9.3) = WCEI Optimum shipping (in TEU terms) WCSI (Average voyage 9.3) < WCEI Short shipping (in TEU terms) WCSI=HRCI $1000{\pm}150$ Value approx. The study shows that it is possible to predict "optimal supply of the world's containership capacity" (in TEU terms), "excess or shortage of shipping" (in TEU terms), "order time of container-ship capacity building" (in TEU terms), "order quantity of containership capacity" (in TEU terms), and "stable of World Shipping Companies" by "WCSI" and "WCEI." The development of "WCSI" and "WCEI" aim to help overcome the crisis of recession by establishing effective business strategies for world shipping companies and their supporting companies.

• Journal of Korea Port Economic Association
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• v.39 no.3
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• pp.123-140
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• 2023

Maritime transportation is one of the oldest means of transportation utilized by mankind, and it has significantly contributed to the advancement of civilization by efficiently transporting bulk cargo at a low cost. The study aim to identify the factors influencing the selection of shipping companies in the bulk shipping market and provide insights for improving the competitiveness of shipping-related companies. To achieve this goal, the Analytic Hierarchy Process (AHP) was employed. For the empirical analysis, previous research, interviews, and a pilot test were conducted to identify five top-level factors such as companies, vessels, operations, services, and transaction factors. Each top-level factor has four sub-factors. The results of the analysis, based on 80 valid questionnaires, are as follows: Firstly, in the selection of shipping companies, the priority of factors influencing the choice of shipping companies was as follows: vessel factors were the most important, followed by company, operations, relationship, and service factors. Secondly, when investigating the priority of sub-factors, the availability/appropriateness of vessels was the most crucial factor, followed by company characteristics, financial soundness, and the company's reputation in order. The implications of these findings suggest that shipowners should focus on securing more suitable vessels and enhancing their reputation in response to shippers' demand. Shippers, on the other hand, should consider maintaining a healthy financial structure as a crucial task in securing competitive shipping service providers.

• The Journal of shipping and logistics
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• v.34 no.4
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• pp.615-635
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• 2018

Using data from 2008 to 2017, this study analyzed the financial characteristics of offshore freight shipping companies in Korea, categorized by vessel type, and their impact on business performance. The analysis showed an upward trend in the overall debt ratio of offshore freight transport companies and differences in the financial characteristics of each vessel type as well as the major factors affecting business performance. In particular, the significant factors affecting the ROA performance of the business are the size of business and debt ratio in the LPG line; the growth rate in the bulk line; the size of business, debt ratio, and year in the general freight line; and the size of business, growth rate, entertainment expense rate, debt ratio, and year in the full container line. Therefore, each shipping company needs to recognize differences in key financial factors affecting its performance based on vessel type, implement proactive measures, and diversify its vessel portfolio.

• Journal of Navigation and Port Research
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• v.36 no.4
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• pp.291-298
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• 2012

Working onboard large ocean-going vessels is one of many industries that is by its very nature extremely error-provoking. In industries such as aviation, nuclear power, healthcare and transport, the need for mental preparedness and professionalism are amongst the qualities essential for the management of complex hazardous systems. Recruiting, training, and more importantly retaining the right people to work in these industries is of paramount importance if safety is to be continuously improved and economic benefits realized. Through consideration of extant empirical literature this paper will explore the need for enhancing collaboration between shipping companies and maritime training insitutes in order to provide the industry with those most capable for the job. It will be concluded that by providing a strong maritime foundation from the outset of training, maritime academies in South Korea can provide shipping companies with a wealth of highly qualified, motivated officers who will contribute to safety and remain valuable assets within the industry for years to come.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2012.06a
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• pp.35-37
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• 2012

Working onboard large ocean-going vessels is one of many industries that is by its very nature extremely errorprovoking. In industries such as aviation, nuclear power, healthcare and transport, the need for mental preparedness and professionalism are amongst the qualities essential for the management of complex hazardous systems. Recruiting, training, and more importantly retaining the right people to work in these industries is of paramount importance if safety is to be continuously improved and economic benefits realized. Through consideration of extant empirical literature this paper will explore the need for enhancing collaboration between shipping companies and maritime training institutes in order to provide the industry with those most capable for the job. It will be concluded that by providing a strong maritime foundation from the outset of training, maritime academies in South Korea can provide shipping companies with a wealth of highly qualified, motivated officers who will contribute to safety and remain valuable assets within the industry for years to come.