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Developments in transport, communications, and information technology now permit dramatic improvements in intercontinental transport time, cost, and quality of service. At the same time, shippers and consignees require reduction or elimination of inventories at all steps of the supply chain to improve their ability to effectively respond to changing economic and market conditions. A major challenge is the reduction of uncertainty and risks in total trans-ocean supply chains to permit more effective control of time, cost, and quality of service. Emphasis must, therefore, be placed on reducing deviations in time and cost of the different links in the chain. The use of conditional stochastic simulation to model, design, and control complex trans-ocean supply chains is described and advocated. It is shown that reducing link uncertainties can achieve large improvements in trans-ocean supply chain costs and profitability, and increase the market in an increasingly globalized world.

In this article we estimate the economic impact of the Port of Cartagena on the economy of the Region of Murcia by using a regional input–output table, and by separating port activity related to freight traffic from that linked to passengers (cruises). In 2011, the Port of Cartagena generated an activity estimated at about 3.81 per cent of regional GVA, and 2.11 per cent of regional employment. In relation to 2000, these figures represent an increase of 1.1 per cent in GVA and 0.1 per cent in employment. Compared with the large economic impact of freight-related activities, the impact of cruise tourism expenditure is relatively low, suggesting the need of new business lines to be taken into account. Investments on cruise docks and terminals, or the possibility of transforming Cartagena into a home port might be a good chance to attract more cruise passengers and increase economic impact of the cruise industry.

A terminal is efficient if it produces a maximum output (container traffic in TEU) for given inputs (terminal superstructure). Traditional studies on container terminal efficiency tend to focus on partial productivity measures such as TEU per crane. These instruments do not assess the overall efficiency of terminal operations, as they only look at specific aspects of the terminal operation process. This paper presents an approach for the measurement of container terminal efficiency based on Bayesian Stochastic Frontier modelling. A Bayesian Stochastic Frontier Model is a stochastic and parametric method for analysing productive efficiency. The stochastic production function takes into account statistical noise (composed error) and models the level of inefficiency via a non-negative disturbance. As such, the level of (in)efficiency of different terminals can be compared. The model is tested using a sample of 36 European container terminals, supplemented with four Asian container ports. In general, north European container terminals attain a slightly higher degree of efficiency than southern terminals. Terminals located in hub ports on average are considered as more efficient than those in feeder ports.

Advances in ship technology must be demonstrably beneficial and profitable before shipowners invest. Since the capital costs are large, investment in new technology will tend to be incremental rather than radical and will be affected by the financial viability of the service in which the ship is employed. While operating costs depend on the technology used for a given freight task, revenue from operations depends on transit time, frequency of service, freight rates, and volume of containers carried. Although high speed vessels (40 knots+) carry small payloads over short distances, this disadvantage can be offset by the greater number of round voyages achievable over a given period. After examining factors influencing the demand for fast cargo services, a high speed cargo ship design is described along with appropriate cargo handling and terminal operations. Using a mixed integer programming approach, an optimisation model is used to determine the profitability of a short-haul hub and spoke feeder operation based on Singapore. The model is used to calculate the optimum number of ships required to meet the given distribution task, the most profitable deployment of the fleet and the profitability over the planning horizon.

Pollution from shipping is a major issue in the Straits of Malacca (SOM). Unless appropriate measures are taken, pollution may increase as traffic through the SOM grows. This paper examines alternative mechanisms to finance straits-wide, transboundary measures to prevent or control pollution from shipping in the SOM. Cooperative programs and various user charges for cost of services are examined, and issues and options for financing these services presented. The implications of financing alternatives are assessed in general terms using the criteria of economic efficiency, fairness, transaction costs, impact on behaviour, and political feasibility.

Liner shipping is a rather unique and idiosyncratic sector of the shipping industry. As such, it has attracted much attention from both researchers and policy makers. The purpose of this special issue of the International Journal of Maritime Economics is to investigate current thought in liner shipping economics and strategy. The papers included address what are and have been the major concerns of practitioners and academics, viz. market structure and regulation as well as vessel deployment and integration strategies. In an effort to induce research in another important direction, the aim of this paper is to address the issue of competitive advantage by considering the main themes that appear in the literature, viz. vertical integration and logistics strategy, strategic alliances, mergers and acquisitions, cost reduction, networks, economies of scale, regulation, pricing and shipper relationships. In so doing, this Editorial emphasises the importance of the firm as the unit of analysis and concludes by drawing attention to the need for the empirical investigation of the strategy–performance relationship.

While the importance of strategy to an organisation's competitiveness is gaining wide interest within the maritime industry, very little industry-based research has been conducted on the subject. Of what is available, most research focuses on Northern Europe and Northern America, with scant regard for the Asia-Pacific, which has become a major shipping power in recent decades. To address these gaps in the literature, a three-year study focusing on strategic choices by Asia-Pacific shipowners has been conducted. The study analyses the strategic choices made by Asia-Pacific shipowners at the corporate level and develops a conceptual model of corporate strategy selection for Asia-Pacific shipping. Data are collected through a mail survey, interviews and computer simulation. Results show a high degree of congruence with two primary findings emerging: there is strong support for the set of assumptions on corporate strategic choices, but the assumptions have to be modified to reflect a general tendency among Asia-Pacific shipowners to combine different strategies for greater strategic control.