From trade in terms of volume round the globe

From
the last decade, shipping lines are moving towards value added maritime
business. The business comprises on forward and backward integration of regional
or global supply chains system. Nowadays most of the shipping lines more or
less involved in this business. Many new trends are introduced in maritime
business from recent years. Companies want to make his company more efficient and productive at less and minimum expenditure.
Cost cutting and efficient time utilization make to this business more
productive and innovative, which brings co-operation amongst the carriers,
ports, freight forwarders, maritime logistic and others maritime related
activities. Port studies are belonging to localizationwhom have not coherence
and ports are emerging fields of study(Pallis et al 2010).

Research
Background

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Maritime
transport is very important as means of transfer of cargo and passengers.
Maritimetransports accounts for carry 90% of trade in terms of volume round the
globe and shipping routes at high seas, territorial waters and at exclusive
economic zones are easy to found, with the use of technology it is easy to
understand depth and width of different routes. Below mentioned figure is
showing some important sea routes of the world. Interest is diverted more after
Markove theory which elaborated that risk and cost is linked with machinery breakdowns
in container terminal(Mennis et al 2008). Increase in size of terminal and
decrease in ship size brought trade-off between the both, terminal size
increase a cost of operation (Musso et al 1999).

 

Source;thumbs.dreamstime.com/x/world
shipping- routes –map-29032068.jpg

Our
presented research is an extension of Ligou Wang, 2010/2011 research; our
research is in perspectives of Pakistan. Diaz et al 2005, introduced
multioutput cost model in which he calculated product economy of scale, economy
of scope and specific marginal cost, it help to identify cost advantage and price
setting of product.  The recorded cargo
transported through sea was 7843 ton at 2010( UNCTAD 2010) The cargo is
transported by using shipping routes mentioned in the above figure, Cargo
loading and unloading also held upon arrival of ships at different ports.
Terminal evaluation started in different phases concentration on planning
method, facilities utilization and their measurement and use of modelling(
Goodchild and Daganzo 2007, Laik and Hadjiconstantinous 2008, Wiegmans et al
2004)  These ports located on their
related shippingroutes provided loading and unloading in their own suitable operation
and according to their check of lists. Nowadays port function and operation is
extended beyond the loading and unloading. Ports are efficient and more productive
after adoption of new changes and technology. If the port become need of
shipping lines inorder to enhance logistic services the changes considered to
be acceptable change at port (Mangala 2004). Changing role of supply chain impressed
from previous literatureof Peters 2001, Carbone and De Martino 2003. Bichou and
Gray, 2005 focused on different management approachescomprised on strategic,
operational and organizational approaches of port management.

PROBLEM
STATEMENT

Shipping
companies are used different standards during the carriage of cargo for
selection of route, and discharging or loading port. Past research indicated
that shipping companies considered port draft, charges, and port handling capacity
during the selection of port of call. The port selection criteria are totally
changed in global supply chain. Port which is connected with hinterland is best
suited in higher cost as compare with not hinterland connected port at lowest
cost because it effect to overall supply chain cost of business. At the
hinterland multimodal transportation is available which reduced overall cost of
operation. Lot of research has done on global logistics and on maritime
logistic to conclude changes at port. We are trying to explore further in
perspective of global supply chain, according to shipping lines we stated
criteria for selection discharging and loading port. 

Port
choice and decision maker for port selection

The
parties which involved in selection of port for minimize the cost of operation
and maximize the overall benefit for whole supply chain process are indicated
by Ding  2007,that following  stakeholders are involved in selection of
port along the logistics chain, stakeholders are as follows,

·        
Shippers ,

·        
Consignees,

·        
Shipping lines,

·        
Port authorities,

·        
Freight forwarders,

·        
Logistic services provider,

SHIPPERS,

Shippers
and freight forwarders are same only difference is that shippers are less price
sensitive as compare to freight forwarders, which means that shippers are less price
elastic(Langen, 2007). Another definition of shipper according to the Glossary
of Maritime Terms 2001  is that” individuals or business who tender goods or
cargo for transportation-usually the cargo owners or their representatives and
not to be confused with the party issuing the bills of leading or the ship’s
operator who is the carrier shippers and freight forwarders”   (Glossary of Maritime Terms 2011).

CONSIGNEES

It
is an individual who make contract with carrier and actually receiver or
importer of cargo, it decides port of call according to feasibility and
availability of transport.

SHIPPING LINES

Shipping
line role in port selection is increasing day by day a team composed on three
or four freight forwarders decided to selection of shipping line and choose
port which served by selected shipping line( Tongzon, 2009). According to the
research of Tongzon and Sawant 2007, Chang et al 2008, and Lim et al 2010,
shipping line serve as media between freight forwarders, supplier, customer,
shippers and it is also media between ports in terms of port selection. Tongzon
and Sawant, 2007 referredthat shipping lines enhanced their business towards
logistic chain which is depend upon port services.

FREIGHT FORWADERS

By
sea transportation and carrier is hired and arranged by individual who is
called freight forwarder.  In selection
of port, location and charges are two main factors(Tongzon, 2009). Value added
goods and inland transport is more important but freight forwarders are
sensitive to port charges(D’Este and Meyrick, 1992).

SUPPLY CHAIN

The
management system begins from raw material and ends at final consumer who
received prepared or finished product, system operates with co-operation other
companies (Council of Supply Chain Management Professionals). 

RESEARCH OBJECTIVE

My
research comprises on port selection in global supply chain perspective and
stated new criteria for port selection, through the research we redefined a
link between port selection criteria and global supply chain. Criteria of port
selection focuses on some factors including port location, port hinterland,
suitable draft, technology, handling charges, cargo volume, research is an
extension of Ligou Wang research in the perspectives of Pakistan. We redefined
in perspective of global logistics and shipping lines. The research assesses
the effect of existed criteria on competitiveness of regional ports.

RESEARCH QUESTIONS

We
answered to three basic questions in this study. The questions are organized to
make the research more detailed and interesting in this specific field of
maritime and shipping business. We figure out some factors through the answer
of these questions. One main question of the study which deals in whole
research and two sub questions are also included to research deeply.

QUESTION
1; does container shipping change due to its involvement into global supply
chain?

QUESTION
2;how do shipping lines react to these changes and respond to new challenges in
the business of shipping and maritime management?

QUESTION
3; how these changes criteria effect to performance of container shipping
lines.

METHODOLOGY OF RESEARCH

First
at all we review previous literature to investigate and conclude previous
results with the aim of compare previous and new criteria for port selection in
the perspective of global supply chain perspective. Previous results also
support to empirical research in context of new results and model.AHP (Analytic
Hierarchy Process) model will be used to prove the research and data collected
by use of questionnaires to targeted peoples related to this business. The
results which are collected through AHP model analysed again by average,
quartile (statistical techniques), Implication of results will also assessed,
acceptances for changes of criteria for port selection.

SIGNIFICANCE OF THE STUDY

The
research will help to policy maker of different countries in selection of most
efficient and favourable port for business. It also provides benefit and
opportunities for several stakeholders in global supply chain, introduce new
innovation in selection criteria. Previous researchers also concluded but day
by day advancement change the selection criteria for ports which we tried to
covered through AHP model. Port selective criteria in this research composed on
feeder services and intermodal connection, port draft, port efficiency and IT
ability, port location, size of hinterland, volume of cargo and cargo volume.
Four main ports are used to prove weighted model and ports are Hamburg,
Rotterdam, Antwerp and Le Havre. Port of Rotterdam and Hamburg are ”must call”
ports for several shipping lines (Notteboom, 2008)

SCOPE OF THE STUDY

One
of the scopes of research is to provide best suited criteria of port selection
for shipping lines which are operating in global supply chain. Vertical
integration is best option to enhance business which provides advantages in
different ways like enhancing market power and visibility, cost reduction and
demand complementarities (Heaver, 2002). The research covers to port charges in
detail including the THC (Terminal Handling Charges), port dues and also counts
least factors in port selection criterion.

FURTHER RESEARCH

We
recommended  influential criteria for
further research which is about the consignee who operate with poor or less
knowledge about the ports e.g. Rotterdam and Antwerp are two ports customer
will consider and influence by Rotterdam due to good reputation but unaware
about the criteria of selection. Another recommendation is about the category
selection among the variables discussed in this research, the research will be
more precise and better for competitiveness. Port logistics efficiency is
another recommendation which provide benefits for all involved stakeholders.

RESEARCH LIMITATION

We
used three hierarchies in this research which is most basic hierarchy’s structure.
The structure is not fully optimized due to time limitation. This is also
recommended for further research in this context which will reduce complexity
of selection criteria. The research have vast domain and different stakeholders
involvement from port authorities, government regulatory, port statutory
bodies, so realistic data is not possible and some assumptions are made for
valid conclusion.

THESIS STRUCTURE AND ORGANIZATION

Structure
and organization of thesis is defined properly in policy of NCMPR Bahria
University Karachi Campus, as per policy thesis comprised on 6 chapters, each
chapter perform stair step for completion of task

Chapter
one comprises on introduction to criteria of port selection in global supply
chain perspective, background of the problem and statement about the reason of
research. Chapter one also describes scope of research, significance of
research, limitation and questionnaire of research, purpose further research in
the relevant field.

Chapter
two covers to literature review about previous research, chapter also discuss
pros and cons of proposed criteria of port selection in global supply chain,
also assessed implication of proposed port selection criteria. We introduced
previous research into groups of port selection criteria, port competition and
liner shipping market.

Chapter
three describes to research method used for collecting and analysing the data,
mainly AHP is briefed in detail, questionnaire design, and analysis of factors
for selected criteria. The chapter also about research methodology adopted for
completion of thesis.

Chapter
four incorporated to data analysis and empirical finding at Northwest European
ports Le Harve and within Hamburg. Companies will be examined from various
factors and we will implement AHP model to produce best result and conclusion.
Test of the questionnaire and results are presented in the chapter four.
Interpretation of result and performed AHP model results are indicated.

Chapter
five comprises on comparative analysis of results and findings, results are
analysed by competition point of view and port development, some new concepts
will be introduced in this chapter and existing issues in selection of port
criteria discussed in detail. Implication of criteria selection and port
development are included in this chapter.

Chapter
six covers to recommendations and conclusions which based on model result.