Modeling just-in-time arrival effects on short sea shipping

Vangelis Tsioumas, Dimitrios V. Lyridis, Peter J. Stavroulakis and Stratos Papadimitriou

Maritime Business Review, 2025, vol. 10, issue 3, 282-295

Abstract: PurposeThis study aims to explore the impact of just-in-time (JIT) arrival systems on the attractiveness and economic viability of short sea shipping (SSS), particularly in the feeder containership sector. Specifically, it quantitatively examines how the optimization of sailing speeds (occurring from the application of JIT systems) may influence the competitiveness of SSS, especially in terms of cost.Design/methodology/approachWithin a vector error correction model framework, we conduct scenario analysis to assess the influence of speed optimization on freight rates. The dataset includes the Intra-Asia Container Freight Index, average speed and fleet development of feeder ships.FindingsThe results suggest that the implementation of a JIT arrival policy leads to moderate freight rate reductions, ranging from −0.18% to −4.39%. Beyond the cost benefits, speed optimization through virtual arrival policies enhances the overall competitiveness of SSS in terms of transit time, service reliability and environmental footprint.Originality/valueTo the best of our knowledge, this study is the first to investigate the impact of JIT arrival systems on the competitiveness of SSS while also providing empirical evidence. The findings suggest that policymakers and relevant stakeholders should embrace JIT systems to render SSS a more competitive and sustainable mode of transport.

Keywords: Just-in-time arrivals; Short sea shipping; Containerships; Freight rates; Feeders (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:mabrpp:mabr-01-2025-0011

DOI: 10.1108/MABR-01-2025-0011

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