Maritime liner shipping and the stevedoring industry: market structure and competition strategies

Globalization, liberalization, competition and spatial interaction are significant factors affecting the transformation of manufacturing industries worldwide. In the transportation and logistics industry, however, cooperation is becoming even more critical than competition in determining firms' efficiency. Cooperation has always characterized the liner sector in which strategic alliances, mergers and acquisitions have generated twin effects: notable increases in ship size and falls in freight rates. Meanwhile, the stevedoring industry is undergoing privatization-driven consolidation and the emergence of global pure terminal operators. This article focuses on vertical integration between global carriers and terminal operators. We address the following key current issues:

• dedicated terminals as a strategy for cutting costs and controlling integrated transport chains;
• the struggle for supply chain control, involving global carriers versus global terminal operators, driven by financial power and technical and managerial capability.

We close analysing one of the core problems of the market, namely the evolving role of the dedicated terminals. For the pure stevedores they represent an opportunity to secure a cargo, while in the hands of the liners they enable cost stability and the possibility to put pressure on pure terminal operators.     

Investment strategies in market uncertainty

The nature of the global economy is one of dynamic change. Shipping is a service industry with its demand related to changes in international trade levels and patterns. As a consequence shipping is subject to sometimes unpredictable swings in demand so that the operator is required to make strategic planning decisions while navigating through boom or bust environments. While boom economies generate rising freight rates which are welcomed and encourage investment, ship operators may also have to face falling freight demand and declining freight rates that may have significant impact on profitability, often falling to uneconomic levels for extended periods. In such a period of uncertainty and declining profitability management will make operational decisions to reduce costs. However, shipping lines operate in a market environment so any decisions made to rationalize the trade may have significant long-term competitive implications. For example, traditional micro economic theory might suggest that the prudent strategy to adopt would be to close down the operation and reopen when the market conditions improve. In a world of certainty or when costs of taking this action are zero, this would be a valid strategy. However, because of fear of competitors taking up a line's market share if the shipping company exits, even temporarily, this strategy cannot be valued simply in terms of shut-down and start-up costs. A further consideration is the fact that standard capital budgeting techniques, such as Net Present Value (NPV), cannot incorporate the flexibility to respond to new information and strategic responses explicitly into their investment analysis. This paper will demonstrate the use of Real Option Analysis (ROA) to provide guidelines for decisions about closing operations in adverse market conditions.     

Longhaul feeder services in an era of changing technology: an Asia-Pacific perspective

Traditional liner carriers, operating in the highly competitive commercial environment of the last few years, have attempted to lower the marginal cost of each box carried. Technological improvements in both construction and propulsion systems have led to a steady growth in carrying capacity. Ships of 600+ TEUs are now in service and, as a result of this trend, have displaced 'smaller' ships from the major east-west trades. The more competitive environment of these trades has in turn led to a redeployment of ships in the 2500+ TEU range to the north-south trades. The result has been a rapid increase in north-south capacity, including feeder services and falling freight rates. Despite the current excess supply in shipping and historically low freight rates, significant developments in technology have created opportunities for new fast containerships. The paper analyses the key economic factors in the differentiation of the new fast ship technology from the traditionally designed containerships and demonstrates the potential financial viability to owners of these new 'greyhounds'.     

Assessment of diesel combustion noise overall level in transient operation

Combustion noise in passenger cars powered with direct injection (DI) diesel engines is frequently the main reason why end-users are reluctant to drive this type of vehicle. Thus, the great potential of diesel engines for environment preservation — due to their lower CO₂ emissions — could be missed. This situation worsens with the current design trends (engine downsizing) and the emerging new diesel combustion concepts (Homogeneous Charge Compression Ignition-HCCI, Premixed Charge Compression Ignition-PCCI, etc.), which are intrinsically noisy. This negative feature can be even more critical in transient operation due to the contribution of the temporal changes of both source and transmission path on engine noise. Therefore, combustion noise must be considered as an additional essential factor in engine development, together with performance, emissions and driveability. Thus, suitable evaluation procedures that can be integrated into the global engine development process in a timely and cost-effective manner are imperative. Regarding the evaluation procedures, most of the work available in the literature addressed combustion noise at steady operation. To surpass this limitation, two possible approaches — adapted from the classical and multiple regression methods — for the overall level assessment of combustion noise in transient conditions are evaluated in this paper.     

Development of an intelligent CAE system for auto-body concept design

The concept design phase is a critical step in auto-body design, as it has a great effect on later design work. This paper describes the implementation of an auto-body structure design in the early stages of a new auto-body developing program. In order to reduce the long design period and analysis error that plagues traditional auto-body concept design, an intelligent CAE system has been successfully developed and implemented based on the UGS NX/API opening platform. This system, the so-called ACD-ICAE (Auto-body concept design-intelligent computer aided engineering) System that means concept design-intelligent computer aided engineering system, employs a fully parametrized template method to build the conceptual auto-body geometry model and FEM model quickly and easily. It also integrates auto-body modeling, analysis and optimization on only one CAD platform via a parametric variables database. Moreover, all parametric variables are shared and updated in different phases of the ACD-ICAE System. A wizard User Interface (UI) based on knowledge of auto-body engineering was developed and used in this system. The procedures implementing the functional diagram of the ACD-ICAE system are also provided. A typical example of a car body concept design with four doors shows that the ACD-ICAE system is efficient and accurate.     

Automobile Directional Characteristics and Driver Steering Performance

Driver steering performance in a simple circular lane-keeping task, as dependent on the directional response characteristics of the vehicle, was measured. Response Surface Methodology models of steering performance are presented. Several canonical variables describe the drivers responses to vehicle changes. Clear-cut optimum vehicle characteristics cannot be determined, but certain combinations of vehicle characteristics are seen to be undesirable for various reasons related to theoretical mechanisms of driver steering control.     

Vehicle rollover avoidance by application of gain-scheduled LQR controllers using state observers

Many researches have been conducted in the area of control applied to vehicle dynamics, aiming at reducing the possibility of the occurrence of the type of accident known as rollover. In this research, based on a common nonlinear model and its linearisation, a method for properly selecting matrices for solving the Riccati equation considering different speeds was proposed. The method showed in which ways speed really influences the choice of controller gains. By developing the dynamic equations for the yaw- and roll-coupled motions and modelling of controllers and state observers, it is possible to compare the efficacy of this control strategy using both linear and nonlinear simulations using Matlab. Significant results were obtained regarding the reduction of the rollover coefficient for a double-lane change manoeuvre at different speeds, thus indicating advantages of using this controller in practical cases.