Cost Effectiveness Analysis in Short Sea Shipping: Evidence from Northeast Asian Routes

Nowadays, roll-on/roll-off (Ro-Ro) is an important mode for short sea shipping (SSS) due to its advantages of fast and convenient load and unloading system. Despite the advantages, the market share of Ro-Ro is insignificant compared with lift-on/lift-off (Lo-Lo) in the Northeast Asian region that is geographically suitable for fostering SSS. Therefore, it is of utmost importance to have a better understanding of the effectiveness or Ro-Ro and Lo-Lo in the regional SSS market. For this purpose, this paper develops a model to estimate the total logistics cost of the two transportation modes. The total logistics costs of Ro-Ro and Lo-Lo are calculated on three major SSS routes between Korea and Japan. The results show that Lo-Lo outperforms Ro-Ro on most routes in terms of the cost effectiveness, and Ro-Ro is competitive only for high-priced and time-sensitive cargo. However, it is also documented that Ro-Ro transport has a significant impact on reduction in the total logistics costs when companies integrate the supply chain and improve the cooperative relationship to a high level.

The Impact of the Internalization of External Costs in the Competitiveness of Short Sea Shipping

This paper applies a methodology for computing external costs in an intermodal transport network that includes short sea shipping to explore the impact of external costs in its competitiveness. The network, which includes roads, freight railways, maritime and inland waterway connections, considers the specific characteristics of different transport alternatives and vehicle types, providing a fair comparison of the various modes. A case study focused on freight transportation between Northern Portugal and 75 destinations (NUTS2 regions) in north-western Europe is presented. The potential of different intermodal routes that include short sea shipping is assessed, including not only internal costs and times but also external costs per mode and unit of cargo. The impact of the different cost approaches in each country of transit is shown along with the progress that has been made in the integration of external costs, using the most recent EU estimates on marginal costs coverage ratios per country for freight transport modes. The results support the modal shift from road to sea in this corridor, providing means for modal comparison and for the development of short sea shipping’s image as a sustainable mode of transportation.

Numerical Modeling of Air Pollutants and Greenhouse Gases Emissions in Intermodal Transport Chains

This paper discusses the most attractive emission compliance options (emission abatement technologies and cleaner fuels) in intermodal transport chains that include short sea shipping. Most studies on emissions-based transport chain comparisons have estimated high levels of nitrogen and sulfur oxide emissions in maritime transportation, decreasing its competitiveness. However, the consequences of regulatory and technological developments and the integration of maritime transport in intermodal transport chains have not yet been considered in detail. In order to address this research gap, a numerical model for computing emissions from different transport modes in an intermodal transport network, under the effect of these developments, is presented that is based on bottom–up emission factors that depend on the fuel type, engine type, and operational profile of each vehicle. Different emissions scenarios are chosen for specific unimodal and intermodal routes (short sea shipping-based) between Portugal and northwestern Europe. Conclusions are drawn on estimated values of air pollutant emissions and greenhouse emissions, in CO2-eq per unit of cargo, in each scenario. These results allow the identification of the most environmentally friendly transport chains, thus supporting the development of adequate transport policies.

Market structure of short sea shipping in northeast Asia

Purpose Short-sea shipping (SSS) plays an important role in regional transportation networks by supporting regional trade and improving inter-modality. In particular, countries in north-east Asia, such as China, South Korea and Japan have been served well by local SSS services. While SSS markets in Northeast Asia (NEA) have been developed by bilateral routes with sub-markets, the market structure of each sub-markets varies depending on concentration and competition levels as well as government intervention. The purpose of this paper is to analyse the market structure of SSS markets in the Northeast Asia. Design/methodology/approach Herfindahl–Hirschman Index (HHI) and concentration ratio are adopted to measure the market concentration from 2013 to 2017 for SSS markets in NEA. Additionally, the balance between supply and demand is investigated by measuring the capacity utilisation factor (CUF) based on slot capacity. Findings The market structure in the NEA SSS markets is influenced by firms’ behaviour under different levels of governmental intervention. Shipping firms in a market with more governmental intervention in market entry tend to focus on balancing supply and demand rather than increasing market share, whereas firms in a market with less intervention (and more competition) tend to increase their market share by pursuing efficient capacity management. Research limitations/implications The period of data set is limited to 2013–2017. Furthermore, prices or revenue for specific routes are not available. Originality/value This paper sheds light on the market structure and behaviour of players in SSS market. In addition, the work has value to measure capacity utilisation based on slot capacity.