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

Abstract

Global container shipping is integral to international trade, and a nuanced understanding of the role of strategic alliances and market concentration is crucial for the continuous and secure functioning of global logistics across different trades. We investigate the spatio-temporal evolution of alliance deployment and market concentration in the container shipping industry. This study introduces an innovative methodological approach - clustering trade routes using Dynamic Time Warping (DTW) based on alliance deployment and market concentration metrics rather than relying on predefined geographic boundaries. The approach uncovers previously unexplored structural relationships between alliance strategies and market dynamics, providing a more nuanced understanding of the container shipping industry's competitive landscape and potential vulnerabilities. We address important questions on how alliance deployment, market concentration, and inequality correlate or differ across global trade lanes and the implications for a potential threat of market power or collusive behavior for international trade and market accessibility. Our findings reveal that extensive alliance deployment does not inherently lead to a heightened market concentration or inequality. On major East-West trade routes, high levels of alliance deployment correspond with relatively low market concentration and inequality, indicating competitive environments where multiple carriers actively compete for market share. Conversely, niche markets exhibit higher market concentration and inequality, with increased potential for collusive behavior, especially where alliance deployment is minimal or absent. Our results underscore the need for regulatory bodies to foster fair competition, mitigate anti-competitive practices under a differentiated approach, and enhance market accessibility in the context of global trade flows. Finally, our research reveals the risk of power imbalances between regulators of small countries and leading global shipping lines.

Abstract

The port governance literature has charted the trend towards devolution of port services to the private sector, also showing how the increasing influence of external private actors such as shipping lines and global terminal operators affects decisions on expansion and service provision, producing a more multifaceted and polycentric kind of port governance. In this paper we extend these notions to cover both mitigation of and adaptation to climate change. A growing body of literature on green ports discusses the various actions that can be taken to limit emissions in the port area, while another body of literature is growing on climate change adaptation measures, including the uncertain risks and rewards. Both mitigation and adaptation actions are partly linked to the commercial decisions of port actors but also partly driven by external actors (e.g. society, government, regulators). The analysis produces an updated conceptualisation of port governance under climate change, based on four stakeholder groups (public policy, commercial actors, indirect actors and international shipping governance) and produces three key conclusions. First, concession contracts and commercial relationships will need to change, with a more integrated vision and approach to sharing future (sometimes undefined or uncosted) costs and benefits between the port authority and commercial partners. Second, diversification of the port business model will see a larger focus on energy production and provision, requiring the more explicit inclusion of external stakeholders, particularly energy companies, in port governance. Third, port governance will see a return to prominence of the public dimension, both in terms of national decarbonisation plans and particularly regarding adaptation to an uncertain and turbulent future. As ports are both commercial activities and national infrastructure, these different identities will need to be united in a joint vision.

Abstract

Quantifying greenhouse gas (GHG) emissions of logistics hubs such as warehouses, transshipment sites or terminals enables understanding the use of resources and improving the efficiency of operations. Thus, it supports decision-makers on their roadmap to climate neutrality and within the transformation towards sustainable logistics hubs. This research provides an overview of relevant indicators that can be used for measuring the sustainability performance of hubs, along the full life cycle from construction, operation, through to renovation and end-of-life management. Current approaches for the quantification of embodied and operational carbon are summarized. Results of the international market study on energy efficiency and GHG emissions at hubs are outlined and an initial set of GHG emission indicator values for European hubs provided.

Abstract

This case study addresses the problem of empty container repositioning (ECR) in the Colombian context at a regional scale. The research was motivated by the massive empty container congestion in 2022 in specific nodes of the logistics network. A Mixed methods approach is proposed in this research applying qualitative and quantitative methods that aim to clarify the causes of inefficiency in empty repositioning and to formulate improvement strategies. Street-turn has proven to be a strategy to increase the efficiency in the ECR system. A matching algorithm is developed to pair empty containers in inland destinations with export loads, to achieve a more efficient utilization of trucks in the network. Despite the significant container trade imbalance, the optimization model results confirm significant cost savings and reduction of empty trips of up to 50% for RFT between Colombia's two main ports and their principal hinterland regions. The research also identifies that the actors involved in the ECR system lack incentives to deepen their collaboration, which represents a significant barrier to the implementation of street-turn.