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The impacts of strait and canal blockages on the transportation costs of the Chinese fleet in the shipping network

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  • Tianhang Gao
  • Jing Lu

Abstract

Straits and canals have always served as key nodes in shipping networks. The blockage of a strait or canal will lead to ship deviations and increased transportation costs. To measure this impact on the Chinese fleet, our study develops a mathematical model that is based on a programming formulation. Each strait or canal is assumed to be blocked in turn, and the increased transportation costs for the Chinese fleet in different scenarios are calculated and compared using the proposed programming formulation in order to measure the impact of the blocked strait or canal on the Chinese fleet. Larger increases in transportation costs have greater impacts on the fleet. The results show that a blockage of the Strait of Hormuz would have the greatest impact of all straits and canals; it would cause the Chinese fleet to lose a portion of its import and export market, and such a blockage cannot be addressed through ship deviations. Based upon increased transportation costs, the four straits or canals that would have the greatest impact if blocked are the Mandeb Strait, the Suez Canal, the Sunda Strait and the English Channel.

Suggested Citation

  • Tianhang Gao & Jing Lu, 2019. "The impacts of strait and canal blockages on the transportation costs of the Chinese fleet in the shipping network," Maritime Policy & Management, Taylor & Francis Journals, vol. 46(6), pages 669-686, August.
    • Handle: RePEc:taf:marpmg:v:46:y:2019:i:6:p:669-686
    DOI: 10.1080/03088839.2019.1594423
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    Cited by:

    1. Baode Li & Jing Li & Jing Lu, 2019. "Research on the Coupled Risk of Key Nodes in Maritime Transport Based on Improved Catastrophe Theory," Sustainability, MDPI, vol. 11(17), pages 1-21, August.
    2. Stanisław Gucma & Rafal Gralak & Bartosz Muczynski & Mateusz Bilewski, 2021. "Navigational Risk of Ships Proceeding Through a Fairway," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 811-832.
    3. Mendez, Alvaro & Alden, Chris, 2019. "China in Panama: from peripheral diplomacy to grand strategy," LSE Research Online Documents on Economics 101599, London School of Economics and Political Science, LSE Library.
    4. Desogus, Eleonora & Grosso, Daniele & Bompard, Ettore & Lo Russo, Stefano, 2023. "Modelling the geopolitical impact on risk assessment of energy supply system: The case of Italian crude oil supply," Energy, Elsevier, vol. 284(C).
    5. Zeng, Qingcheng & Lu, Tingyu & Lin, Kun-Chin & Yuen, Kum Fai & Li, Kevin X., 2020. "The competitiveness of Arctic shipping over Suez Canal and China-Europe railway," Transport Policy, Elsevier, vol. 86(C), pages 34-43.

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