Can liner shipping companies become the integrator of the seas? (Shipping climate)

• Main Author: Fazlur Rahman Bin Akbar
• 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/10356/172671
• Institution: Nanyang Technological University

The maritime industry today is at a point where Liner Shipping Companies are pushing for change and aiming to redefine the industry by acquiring more and more parts of the supply chain. This tactic known as vertical integration has been employed by several companies, with others looking into the possibility of it as well. Thus, this report aims to study if it is indeed possible for these liner shipping companies to fully become integrators of the seas. This report reviewed several journals and articles the study is broken down into three aspects, namely shipping climate, strategic planning and operational management. The main focus of this report lies in the nature of the shipping climate, the status of the maritime industry today with regards to the incorporation of vertical integration. The literature was able to uncover the challenges faced from this strategy, how the strategy was used in other industries for comparison, how monopolization can result from the approach, and the regulatory authorities’ views on the subject. However, they failed to highlight if vertical integration could possibly address supply chain disruptions, with liner shipping companies acting as the main point of contact for all queries. Thus, the primary research concentrates on finding answers and solutions, with a comparison between the primary and secondary research conducted in the discussions section. The primary research consists of responses from seven interviewees from liner shipping companies whereas the secondary research comprises journals, articles and online sources. Further recommendations were also provided on how these companies can develop and grow while keeping the company in check while pursuing vertical integration. One such recommendation would be having proper risk management, which would allow the companies to be wary and not overcommit in this new venture. Additional sustainability efforts was another recommendation, which includes renewable energy technology and waste management, increasing LSCs appeal to customers with forward sustainable thinking. Overall, more research can still be done to address challenges faced in disruptions, with vertical integration possibly being the answer. A one-stop shop can be formed as a result, and with the processes being streamlined, there is little room for error. Hence, this report envisions a future whereby liner shipping companies become the main driving force in the transformation of the industry and to become integrators of the sea.