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Global Container Shipping Operators’ Strategies Under the Extremely Turbulent Market Dynamic Environment: An Analytical Approach

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  • Andrzej S. Grzelakowski

Abstract

Purpose: The purpose of the article is to identify and initially assess the effects of short and medium term strategies applied by global leading maritime container shipping operators during the Covid-19 pandemic crisis. The research questions have been as follows: 1. what enabled the global container carriers adoption of such aggressive pro-fiscal strategies aimed at maximizing their revenues and profits, 2. what have been the consequences of implementing these strategies within the global supply chains? Design/Methodology/Approach: There were applied such methods, as: critical literature review, desk research and data exploration as well the factors analysis (FA). Moreover, there were conducted interviews with shipping operators and forwarders in form typical for the Delphi method. Findings: The research clearly shows that the strategies of global container operators applied during the pandemic crises in the phase of rapidly growing demand for container carriage were strongly oriented on maximal exploring such an exceptional market opportunity. They have enabled the container carriers gaining huge revenues and profits to the detriment of other companies what caused serious deepening of already existed supply chains’ disruptions. Practical Implications: The findings and proposed recommendations may support the position of global shippers and forwarders in their complaints to international regulators against the block exemption of container consortia from general competition rules. They should also facilitate other actors of the global supply chains the proper evaluation and reaction on the choice of business models and operational strategies of leading container carriers. Originality/Value: Updated approach to the container shipping market's analysis, enabling: 1. better understanding of the functioning regulatory mechanisms in this shipping sector, 2. identification and elimination the contradictions existed between the public international regulatory system and the market one, 3. creation of a platform for efficient collaboration among actors in the global supply chains, aimed at restoring their full visibility and resilience.

Suggested Citation

  • Andrzej S. Grzelakowski, 2022. "Global Container Shipping Operators’ Strategies Under the Extremely Turbulent Market Dynamic Environment: An Analytical Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 682-696.
    • Handle: RePEc:ers:journl:v:xxv:y:2022:i:3:p:682-696
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    References listed on IDEAS

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    1. Theo Notteboom & Thanos Pallis & Jean-Paul Rodrigue, 2021. "Disruptions and resilience in global container shipping and ports: the COVID-19 pandemic versus the 2008–2009 financial crisis," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(2), pages 179-210, June.
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    Cited by:

    1. Andrzej S. Grzelakowski, 2023. "Costs and Benefits of the Disruptions Caused by the Pandemic Crisis and the Container Shipping Market’s Turbulences and their Allocation within the Global Supply Chains: An Analytical Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 133-151.
    2. Andrzej S. Grzelakowski, 2023. "Global Maritime Container Carriers' Mid-term Strategies as a Tool for Change Management in the Post-Covid Era," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 737-754.

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    More about this item

    Keywords

    Global container market; container operators’ strategies; freight and charter indices.;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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