IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v32y2011i1p25-38.html
   My bibliography  Save this article

Strategic alliances in container liner shipping

Author

Listed:
  • Panayides, Photis M.
  • Wiedmer, Robert

Abstract

The economic crisis in the years between 2008 and 2010 has demonstrated the necessity for substantial adjustments on behalf of container lines. Capacities were shifted quickly to emerging and less affected markets allowing a faster recovery of globally organized companies. This paper illustrates the dynamics in the container shipping market. Alongside the main characteristics of the Top 20 ocean shipping companies, liner services are described. These services are classified by geographic coverage and vessel deployment. In addition, this paper provides a better understanding of the collaboration among service providers. Starting from a general framework of co-operative liner services, in-depth analyses of the global alliances in liner shipping are obtained. These formations – Grand Alliance, New World Alliance and CKYH Alliance – are compared with alternative forms of collaboration in the liner shipping industry. The analysis of alliance announcements which are related to operational and strategic changes indicates that the “global alliances” cannot be regarded as closed corporate-like entities. In effect, service agreements are not only negotiated with the focal members of the specific alliance. Instead, every service is arranged individually and under specific conditions. By understanding the dynamics within alliances, we are able to develop an assessment relating to the stability of collaborations. Ultimately, these insights direct us to several paths for future research.

Suggested Citation

  • Panayides, Photis M. & Wiedmer, Robert, 2011. "Strategic alliances in container liner shipping," Research in Transportation Economics, Elsevier, vol. 32(1), pages 25-38.
    • Handle: RePEc:eee:retrec:v:32:y:2011:i:1:p:25-38
    DOI: 10.1016/j.retrec.2011.06.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885911000187
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2011.06.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ranjay Gulati, 1999. "Network location and learning: the influence of network resources and firm capabilities on alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 397-420, May.
    2. HEAVER, T. & MEERSMAN, Hilde & MOGLIA, F. & VAN DE VOORDE ,Eddy, "undated". "Do mergers and alliances influence European shipping and port competition?," Working Papers 2000001, University of Antwerp, Faculty of Business and Economics.
    3. Kim, E Han & Singal, Vijay, 1993. "Mergers and Market Power: Evidence from the Airline Industry," American Economic Review, American Economic Association, vol. 83(3), pages 549-569, June.
    4. Ross Robinson, 2006. "Port-Oriented Landside Logistics in Australian Ports: A Strategic Framework," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 40-59, March.
    5. Photis M Panayides & Xihe Gong, 2002. "The Stock Market Reaction to Merger and Acquisition Announcements in Liner Shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 4(1), pages 55-80, March.
    6. Michael Fusillo, 2006. "Some notes on structure and stability in liner shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 33(5), pages 463-475.
    7. Renato Midoro & Alessandro Pitto, 2000. "A critical evaluation of strategic alliances in liner shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 27(1), pages 31-40.
    8. Claudio Ferrari & Francesco Parola & Marco Benacchio, 2008. "Network economies in liner shipping: the role of home markets," Maritime Policy & Management, Taylor & Francis Journals, vol. 35(2), pages 127-143, April.
    9. Kathryn Rudie Harrigan, 1988. "Joint ventures and competitive strategy," Strategic Management Journal, Wiley Blackwell, vol. 9(2), pages 141-158, March.
    10. D. K. Ryoo & H. A. Thanopoulou, 1999. "Liner alliances in the globalization era: a strategic tool for Asian container carriers," Maritime Policy & Management, Taylor & Francis Journals, vol. 26(4), pages 349-367, October.
    11. Prashant Kale & Harbir Singh, 2007. "Building firm capabilities through learning: the role of the alliance learning process in alliance capability and firm‐level alliance success," Strategic Management Journal, Wiley Blackwell, vol. 28(10), pages 981-1000, October.
    12. Meifeng Luo & Lixian Fan & Liming Liu, 2009. "An econometric analysis for container shipping market," Maritime Policy & Management, Taylor & Francis Journals, vol. 36(6), pages 507-523, December.
    13. Angela S Bergantino & Albert W Veenstra, 2002. "Interconnection and Co-ordination: An Application of Network Theory to Liner Shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 4(3), pages 231-248, September.
    14. Lei, Lei & Fan, Chunxing & Boile, Maria & Theofanis, Sotiris, 2008. "Collaborative vs. non-collaborative container-vessel scheduling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(3), pages 504-520, May.
    15. Brian Slack & Claude Comtois & Robert McCalla, 2002. "Strategic alliances in the container shipping industry: a global perspective," Maritime Policy & Management, Taylor & Francis Journals, vol. 29(1), pages 65-76, January.
    16. T. Heaver & H. Meersman & E. Van De Voorde, 2001. "Co-operation and competition in international container transport: strategies for ports," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(3), pages 293-305, July.
    17. Williamson, Oliver E, 1981. "The Modern Corporation: Origins, Evolution, Attributes," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1537-1568, December.
    18. Heaver, T. & Meersman, H. & van de Voorde, E., 2001. "Co-Operation and Competition in International Container Transport Strategies for Ports," Research Papers 24173, University of Antwerp, Faculty of Applied Economic Sciences.
    19. T. Heaver & H. Meersman & F. Moglia & E. Van De Voorde, 2000. "Do mergers and alliances influence European shipping and port competition?," Maritime Policy & Management, Taylor & Francis Journals, vol. 27(4), pages 363-373.
    20. Ross Robinson, 2002. "Ports as elements in value-driven chain systems: the new paradigm," Maritime Policy & Management, Taylor & Francis Journals, vol. 29(3), pages 241-255.
    21. Pietro Evangelista & Alfonso Morvillo, 2000. "Cooperative Strategies in International and Italian Liner Shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 2(1), pages 1-16, March.
    22. Pirrong, Stephen Craig, 1992. "An Application of Core Theory to the Analysis of Ocean Shipping Markets," Journal of Law and Economics, University of Chicago Press, vol. 35(1), pages 89-131, April.
    23. Czerny, Achim I. & Mitusch, Kay, 2005. "Cooperation and competition in the cargo liner shipping industry," Discussion Papers 2005/3, Technische Universität Berlin, School of Economics and Management.
    24. Heaver, T. & Meersman, H. & Moglia, F. & van de Voorde, E., 2000. "Do Mergers and Alliances Influence European Shipping and Port Competition?," Research Papers 24175, University of Antwerp, Faculty of Applied Economic Sciences.
    25. Jasmine S. L. Lam & Wei Yim Yap & Kevin Cullinane, 2007. "Structure, conduct and performance on the major liner shipping routes 1," Maritime Policy & Management, Taylor & Francis Journals, vol. 34(4), pages 359-381, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Ghorbani & Michele Acciaro & Sandra Transchel & Pierre Cariou, 2022. "Strategic alliances in container shipping: A review of the literature and future research agenda," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(2), pages 439-465, June.
    2. Daniele Crotti & Claudio Ferrari & Alessio Tei, 2020. "Merger waves and alliance stability in container shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 446-472, September.
    3. Roso, Violeta & Woxenius, Johan & Lumsden, Kenth, 2009. "The dry port concept: connecting container seaports with the hinterland," Journal of Transport Geography, Elsevier, vol. 17(5), pages 338-345.
    4. Van de Voorde, Eddy E.M., 2005. "What Future the Maritime Sector: Some Considerations on Globalisation, Co-Operation and Market Power," Research in Transportation Economics, Elsevier, vol. 13(1), pages 253-277, January.
    5. Y. H. Venus Lun & Kee‐Hung Lai & T. C. Edwin Cheng, 2008. "A Descriptive Framework for the Development and Operation of Liner Shipping Networks," Transport Reviews, Taylor & Francis Journals, vol. 29(4), pages 439-457, August.
    6. Alexander M. Goulielmos, 2017. "“Containership Markets”: A Comparison with Bulk Shipping and a Proposed Oligopoly Model," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 67(2), pages 47-68, April-Jun.
    7. Dung-Ying Lin & Chien-Chih Huang & ManWo Ng, 2017. "The coopetition game in international liner shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(4), pages 474-495, May.
    8. Monios, Jason & Wilmsmeier, Gordon, 2013. "The role of intermodal transport in port regionalisation," Transport Policy, Elsevier, vol. 30(C), pages 161-172.
    9. Wilmsmeier, Gordon & Monios, Jason & Lambert, Bruce, 2011. "The directional development of intermodal freight corridors in relation to inland terminals," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1379-1386.
    10. Monios, Jason & Wilmsmeier, Gordon, 2012. "Giving a direction to port regionalisation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1551-1561.
    11. Monios, Jason, 2011. "The role of inland terminal development in the hinterland access strategies of Spanish ports," Research in Transportation Economics, Elsevier, vol. 33(1), pages 59-66.
    12. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    13. Alexandrou, George & Gounopoulos, Dimitrios & Thomas, Hardy M., 2014. "Mergers and acquisitions in shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 212-234.
    14. Almotairi, Badi & Flodén, Jonas & Stefansson, Gunnar & Woxenius, Johan, 2011. "Information flows supporting hinterland transportation by rail: Applications in Sweden," Research in Transportation Economics, Elsevier, vol. 33(1), pages 15-24.
    15. Eon-Seong Lee & Dong-Wook Song, 2010. "Knowledge management for maritime logistics value: discussing conceptual issues," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(6), pages 563-583, November.
    16. Evangelos Kounoupas & Angeliki Pardali, 2015. "Adding some context to port marketing: Exploring the content and measurement of market orientation in the port industry," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 65(1-2), pages 3-26, january-m.
    17. Cullinane, Kevin & Talley, Wayne K., 2006. "Introduction," Research in Transportation Economics, Elsevier, vol. 16(1), pages 1-10, January.
    18. Heaver, Trevor, 2006. "The Evolution and Challenges of Port Economics," Research in Transportation Economics, Elsevier, vol. 16(1), pages 11-41, January.
    19. Antoine Fremont & F Parola & Martin Soppe, 2007. "Vertical adjustments between liner shipping and container handling industry on the global scale: divide et impera ?," Post-Print hal-02123048, HAL.
    20. Cheng-Hsien Hsieh & Hui-Huang Tai & Yang-Ning Lee, 2014. "Port vulnerability assessment from the perspective of critical infrastructure interdependency," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(6), pages 589-606, November.

    More about this item

    Keywords

    Liner shipping; Strategic alliance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:32:y:2011:i:1:p:25-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.