Can liner shipping companies become the integrator of the seas? (Operational management)

• Main Author: Muhammad Bazli Bin Abu Baker
• Other Authors: Chiu Sai Hoi, Benson
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2023
• Subjects: Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/172670
• Institution: Nanyang Technological University

This research paper delves into the intriguing prospect of liner shipping companies evolving into the integrators of the seas. The maritime sector has witnessed significant structural changes in the way sea transport is organized. Notably, there has been a growing endeavor to improve the management of logistics chains through vertical integration. The focal point of this investigation is the aspect of operational management, which plays a pivotal role in determining the feasibility of such a transformation. The literature review provides a comprehensive analysis of the maritime industry's shift towards integration and consolidation, particularly emphasizing the growing involvement of liner shipping companies across the supply chain. It highlights the complexities involved in this transformation and lays the foundational strategy for operational management in vertical integration. The focus was on port integration, which highlighted operational management of port activities through pure dedicated terminals and multi-user terminals, as well as hinterland integration in the supply chain network. To explore the intricacies of vertical integration and its operational management, a mixed-method research approach was adopted. Qualitative data from interviews with industry professionals were gathered, which was then complemented by a thorough review of existing literature, offering a holistic understanding of the challenges and opportunities associated with operational management in vertical integration. The interviews conducted revealed practical, day-to-day operational challenges to such endeavor which was lacking in existing literature. While it is indeed possible for liner shipping companies to take on the role of integrators, they must take a proactive approach to the operational complexities that lie ahead. Given the research findings, this paper recommends that liner shipping companies invest in enhancing their operational management capabilities, which revolves around three core aspects: operational dominance through asset control, operational expertise through knowledge transfer, and operational efficiency through advancement in technology. These interlinked components necessitate careful consideration to successfully manage the supply chain and underscored the novel role of liner shipping companies in managing the complex operations of vertical integration. Henceforth, while the journey towards becoming integrators of the seas is laden with operational intricacies, it is a path worth pursuing for liner shipping companies seeking to thrive in the evolving maritime landscape.