Hapag-Lloyd Center
for Shipping and Global Logistics (CSGL)

Hapag-Lloyd Center
for Shipping and Global Logistics (CSGL)

A KLU Research Center founded with the support of Hapag-Lloyd. 

The CSGL strengthens the position of KLU in Global Container Logistics, leveraging on the partnership with Hapag-Lloyd, promoting KLU as a leading university in this field and contributing to establish Hamburg as an international maritime knowledge hub.

Mission

To produce and disseminate evidence that promotes the evolution of a future competitive and sustainable (economic, social and environmental) shipping and port sector, and the adoption of policies, strategies, actions and programs that generate the conditions and capacities to be competitive in a digitalized world.

Vision

To be a platform for interdisciplinary research, collaboration and knowledge transfer, creating a point of reference for the community of researchers, professionals and public sector (in Germany/Europe/World) to promote the investigation of the future evolution and transformation of the maritime and port sector.

 

Selected Publications

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DOI: https://doi.org/10.1108/00251740911004718 

Abstract: Purpose – The purpose of this paper is to investigate the transferability of the open source principles of product development from the realm of software to the realm of physical products.Design/methodology/approach – Based on the inherent differences between software and physical products, a theoretical discussion of the challenges that face the implementation of open source principles in the physical world are provided. A multiple case study methodology is adopted to provide insights into the applicability of the open source concept in product development outside software.Findings – Many of the challenges identified theoretically are actually encountered in practice. To cope with these challenges effectively, hardware design activities can be translated into software development tasks, using programmable hardware. When dealing with open source projects in the physical realm, it is useful to distinguish between projects driven by commercial firms and those driven by individuals, as each project type can impose different conditions on successful implementation.Originality/value – Although much scholarly attention has been devoted to open source software, the issue of transferability of the identified principles to other industries has undergone little in‐depth research. This paper provides a solid foundation for further investigation of this topic based on theory and empirical case examples. It derives recommendations for industrial experts wishing to benefit from the open source model in new product development.

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DOI: https://doi.org/10.1016/j.ejor.2018.09.049 

Abstract: This paper considers an unsignalized intersection used by two traffic streams. The first stream of cars is using a primary road, and has priority over the other stream. Cars belonging to the latter stream cross the primary road if the gaps between two subsequent cars on the primary road are larger than their critical headways. A question that naturally arises relates to the capacity of the secondary road: given the arrival pattern of cars on the primary road, what is the maximum arrival rate of low-priority cars that can be sustained? This paper addresses this issue by considering a compact model that sheds light on the dynamics of the considered unsignalized intersection. The model, which is of a queueing-theoretic nature, reveals interesting insights into the impact of the user behavior on the capacity. The contributions of this paper are threefold. First, we introduce a new way to analyze the capacity of the minor road. By representing the unsignalized intersection by an appropriately chosen Markovian model, the capacity can be expressed in terms of the solution of an elementary system of linear equations. The setup chosen is so flexible that it allows us to include a new form of bunching on the main road that allows for dependence between successive gaps, which we refer to as Markov platooning; this is the second contribution. The tractability of this model facilitates studying the impact that driver impatience and various platoon formations on the main road have on the capacity of the minor road. Finally, in numerical experiments we observe various surprising features of the aforementioned model. (published online first)

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DOI: https://doi.org/10.1007/s11134-017-9531-4 

Abstract: We investigate the transient and stationary queue length distributions of a class of service systems with correlated service times. The classical MX/G/1 queue with semi-Markov service times is the most prominent example in this class and serves as a vehicle to display our results. The sequence of service times is governed by a modulating process J(t). The state of J(⋅) at a service initiation time determines the joint distribution of the subsequent service duration and the state of J(⋅) at the next service initiation. Several earlier works have imposed technical conditions, on the zeros of a matrix determinant arising in the analysis, that are required in the computation of the stationary queue length probabilities. The imposed conditions in several of these articles are difficult or impossible to verify. Without such assumptions, we determine both the transient and the steady-state joint distribution of the number of customers immediately after a departure and the state of the process J(t) at the start of the next service. We numerically investigate how the mean queue length is affected by variability in the number of customers that arrive during a single service time. Our main observations here are that increasing variability may reduce the mean queue length, and that the Markovian dependence of service times can lead to large queue lengths, even if the system is not in heavy traffic.

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DOI: https://doi.org/10.1109/COMSNETS.2016.7439951 

Abstract: This paper considers an unsignalized intersection used by two traffic streams. A stream of cars is using a primary road, and has priority over the other, low-priority, stream. Cars belonging to the latter stream cross the primary road if the gaps between two subsequent cars on the primary road is larger than their critical headways. Questions that naturally arise are: given the arrival pattern of the cars on the primary road, what is the maximum arrival rate of low-priority cars such that the number of such cars remains stable? In the second place, what can be said about the delay experienced by a typical car at the secondary road? This paper addresses such issues by considering a compact model that sheds light on the dynamics of the considered unsignalized intersection. The model, which is of a queueing-theoretic nature, reveals interesting insights into the impact of the user behavior on the above stability and delay issues. The contribution of this paper is twofold. First, we obtain new results for the aforementioned model with driver impatience. Secondly, we reveal some surprising aspects that have remained unobserved in the existing literature so far, many of which are caused by the fact that the capacity of the minor road cannot be expressed in terms of the mean gap size; instead more detailed characteristics of the critical headway distribution play a role.

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Abstract: This paper examines the role of ports in the economy of Sardinia by means of the employment generated by port and port-related industries. The subject is important since Sardinia and other Mediterranean islands suff er from chronic unemployment and poor economic performance. The increase of the Europe-Asia commercial fl ows, the European Union enlargement and the renewed centrality of the Mediterranean have induced optimistic expectations on the development opportunities that may be created for the island communities by the maritime and port sectors. The employment generated by the maritime and port industry is an essential, although partial, measurement of the development impact of ports. Therefore its quantifi cation is indispensable in order to correctly estimate the impacts that a more central role of the Mediterranean might have on the local island economies. In the case of Sardinia, ports generate approximately three percent of the total island employment, and over eight percent on average of the employment of the single municipalities. This result adds to the vital role that ports have to play as transportation nodes and in creating value added.

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DOI: https://doi.org/10.1504/IJDSRM.2011.046151 

Abstract: The last decade has witnessed an increase in the consideration of environmental factors in global transportation and shipping, mostly as a consequence of regulation and media attention. Policy measures and the threat of public indictment have acted as powerful incentives for transport operators to green their global supply chains. It can be argued though the effective environmental measures are those that are embedded in the company business thinking, and not those only imposed by law. The present paper is the attempt to operationalise this idea in the context of global container transport. In particular, the paper argues that in order to integrate environmental factors in global logistics processes it is necessary to link them to the concept of value delivery through adequate pricing mechanisms. The paper also discusses how non-traditional forms of pricing are a valuable method to integrate the environmental dimension in container shipping and logistics value propositions.

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DOI: https://doi.org/10.1504/IJSTL.2011.041133 

Abstract: Containerisation has transformed ocean shipping in a relatively standardised process. Possibilities to differentiate services exist nonetheless as a result of route densities, cargo and customer types, and shipment time sensitivity among other factors. Although yield management and product differentiation models have been extensively discussed in the airline sector, the topic has been the subject of relatively little investigation in liner shipping economics. This paper proposes a liner service differentiation model based on advance booking and explains in what cases two different classes of booking may be profitable. The paper structure is as follows: Section 1 introduces the topic; a review of the literature on pricing in liner shipping is presented in Section 2; this is followed by the explanation of how carriers may effectively price discriminate; Section 4 presents a simple model that accounts for advance booking and two classes of services; and Section 5 concludes.

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DOI: https://doi.org/10.1016/j.ajsl.2013.08.005 

Abstract: Few topics in the area of port economics have attracted so much attention from the side of the academic community as port pricing. The impact of such literature has been quite tangible in terms of policy development and the adoption of cost-based charging practices by many ports. Nonetheless as the port sector changes, new areas of research emerge and the academic community needs to look beyond the traditional theories to provide research that matters. This manuscript provides a review of the existing literature on port pricing with a specific focus on the literature of the last decade. In the paper the author carried out a systematic analysis of the main maritime and port economics journals and highlighted the current literature gaps and the areas that can benefit from academic attentions. Among the most interesting ones there are charging practices aiming at reducing externalities, the development of all inclusive port charges and the application of revenue management for port infrastructure utilization.

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DOI: https://doi.org/10.1504/IJSTL.2014.059570 

Abstract: In the last few years, sulphur emissions to air from shipping have been of heightened interest to policymakers and the media, and more stringent regulation is on the way. Various alternatives are available in the shipping industry to comply with emission regulation and minimise impacts on shipowners' bottom-line. New regulation is adding complexity to managerial decision-making, so that advanced decision support tools can provide useful contributions to management processes. The present paper presents an analysis of the options available to shipowners taking into consideration the value of deferring the investment decision vis-à-vis the advantages obtainable from the exploitation of fuel price differentials. The model shows that there is a trade-off between low LNG prices and LNG capital expenses. While in most cases it would not be recommended to invest in LNG as early as today, the model shows that investment in LNG can make economic sense as early as 2015. This is highly dependent on the capital costs necessary for retrofitting ships with LNG engines and the difference between LNG prices and distillates prices.

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DOI: https://doi.org/10.1016/j.enpol.2014.04.013 

Abstract: Ports are characterised by the geographical concentration of high–energy demand and supply activities, because of their proximity to power generation facilities and metropolitan regions, and their functions as central hubs in the transport of raw materials. In the last decades the need to better understand and monitor energy-related activities taking place near or within the port has become more apparent as a consequence of the growing relevance of energy trades, public environmental awareness and a bigger industry focus on energy efficiency. The uptake in the port sector of innovative technologies, such as onshore power supply, or alternative fuels, such as LNG, and the increasing development of renewable energy installations in port areas, also calls for more attention to energy matters within port management. So far, however, few port authorities have actively pursued energy management strategies. The necessity for port authorities to actively manage their energy flows stems from their efforts to plan, coordinate and facilitate the development of economic activities within the port, and as a consequence of the heavier weight that sustainability is given within the port management strategies. Through the analysis of the experiences of two European ports, Hamburg and Genoa, that have already attempted to coordinate and rationalise their energy needs, this paper will argue that for the ports of the future active energy management can offer substantial efficiency gains, can contribute to the development of new alternative revenue sources and in the end, improve the competitive position of the port.

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DOI: https://doi.org/10.1080/03088839.2014.932926 

Abstract: Environmental sustainability in the port industry is of growing concern for port authorities, policy makers, port users and local communities. Innovation can provide a solution to the main environmental issues, but often meets resistance. While certain types of technological or organisational innovation can be satisfactorily analysed using closed system theories, in the case of seaports and in particular in the area of environmental sustainability, more advanced conceptual frameworks have to be considered. These frameworks need to be able to account for the multiple stakeholder nature of the port industry and of the network and vertical interactions that environmental sustainability calls for. This article investigates successful innovations improving environmental sustainability of seaports. The proposed framework builds in part on research concepts developed in the InnoSuTra EU FP7 project. From a methodological perspective, this article develops a method for quantifying the degree of success of innovation with respect to a set of specific objectives. Several case studies are used to test the framework against real innovation examples, such as onshore power supply, or alternative fuels. In this article, we argue that only those innovations that fit dynamically port actors’ demands and the port institutional environment stand a chance to succeed.

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Abstract: There is evidence that the shipping industry could achieve energy efficiency gains through the implementation of new technologies, with considerable reductions of fuel costs and emissions to air in the sector. Although the cost reducing effects of some new technologies are well established, companies appear reluctant to innovate despite the financial and societal benefits, as a result of what is referred to as the energy efficiency gap. The global emission impacts of the shipping industry, most notably of greenhouse gases, sulphur and nitrogen oxides are increasingly attracting the attention of regulators, non-governmental organisations and the media, and shipping companies are under pressure to find new ways to reduce their emission footprint. Understanding the determinants of the energy efficiency gap in shipping is then critical in improving the environmental profile of the industry. This paper presents the results of a survey among Norwegian shipping companies aimed at gaining a better understanding of the barriers to implementation of new cost saving technologies. The paper assesses the technical barriers that have traditionally been indicated as the main cause of the energy efficiency gap in shipping. The paper results indicate that next to technical factors, important barriers are constituted also by managerial practices and legal constraints.

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DOI: https://doi.org/10.1080/03088839.2020.1737335 

Abstract: Innovation is identified as one of the main avenues to maintain competitiveness and its importance is well established in business studies. Along maritime logistics chains, innovation is being increasingly recognized as a determinant of success. However, beyond the naval architecture literature, little attention has been given to the role that innovation plays in maritime business. Notwithstanding the increasing number of innovation efforts that can be traced in the industry, little is known of the processes and mechanisms that make innovation successful, with the result that initiatives are often uncoordinated, unfocused, poorly managed, and do not deliver the expected results. In order to improve innovation processes, better insight is needed into what motivates innovation along maritime supply chains, in particular for ocean carriers, (inland) terminal operators, port managers, and hinterland transport operators. To this end, the paper proposes an index-based approach using data collected for 59 innovation cases to capture the degree of alignment between innovation strategy and outcomes in various maritime logistics business sectors. Substantial misalignment exists between company strategies and innovation success, and efforts should be made to improve the strategic processes that lead to collaborative innovation in maritime supply chains.

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The CSGL Team

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Prof. Dr. Gordon Wilmsmeier

Associate Professor for Shipping and Global Logistics, Director of the Hapag-Lloyd Center for Shipping and Global Logistics (CSGL)

Kühne Logistics University - KLU

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Lara Pomaska

PhD Candidate

Kühne Logistics University - KLU

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Dr. Cristiam Gil

Senior Researcher

Kühne Logistics University - KLU

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Richard Borggreve

PhD Candidate

Kühne Logistics University - KLU

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Associated Members

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Prof. Dr. Michele Acciaro

Associate Professor, Department of Strategy and Innovation

Copenhagen Business School (CBS)

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Prof. Pierre Cariou, PhD

Senior Professor in Shipping and Port Economics

KEDGE Business School

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Prof. Dr. Hanno Friedrich

Associate Professor of Freight Transportation - Modelling and Policy

Kühne Logistics University - KLU

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Prof. Dr. André Ludwig

Professor of Logistics Information Systems

Leipzig University

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Prof. Alan C. McKinnon, PhD

Professor of Logistics

Kühne Logistics University - KLU

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Prof. Dr. Sandra Transchel

Professor for Supply Chain and Operations Management

Kühne Logistics University - KLU

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