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Opportunities for increased profit and reduced cost and emissions by service differentiation within container liner shipping

Lindstad, Haakon; Asbjørnslett, Bjørn Egil; Strømman, Anders Hammer
Journal article, Peer reviewed
Accepted version
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URI
http://hdl.handle.net/11250/2463935
Date
2016
Metadata
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  • Institutt for energi og prosessteknikk [2687]
  • Institutt for marin teknikk [2405]
  • Publikasjoner fra CRIStin - NTNU [20804]
Original version
Maritime Policy & Management. 2016, 43 (3), 280-294.   10.1080/03088839.2015.1038327
Abstract
This paper investigates opportunities for increased profit and reduced emissions and cost by service differentiation within container shipping. Traditionally the strategy among the container lines has been profit maximization by utilizing economies of scale through the building of larger and faster vessels. In 2008, the financial crisis in combination with higher fuel prices put an end to this progress and in today’s market operators are basically trying to survive by providing standardized services at the lowest possible cost. This study investigates alternative strategies and the results indicate that container lines should provide two different services instead of one standardized service. A fast service to be more competitive versus air freight for fast-moving goods and a slow service to be more competitive versus traditional shipping types for transport of minor bulk, break bulk, liquid bulk and project cargo.
Publisher
Taylor & Francis
Journal
Maritime Policy & Management

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