Value migration and profit pools in port-oriented freight systems: the implications for new patterns of efficiency

Rae Weston and Ross Robinson

Maritime Policy & Management, 2008, vol. 35, issue 3, 253-270

Abstract: Port-oriented supply chains and landside logistics marketplaces continue to be restructured and rationalized. Profit pools have rapidly changed and value has migrated, and is migrating, to new functionalities, creating tensions, new patterns of demand and new bases for efficiency in freight systems. Further, and critically, the new functionality of elements in supply chains underwrites new power relationships that effectively condition not only the ability of firms to deliver and capture value but also to impact on the level of integration within supply chains and the efficient outcomes that might be expected from such integration. This paper focuses on these issues. It explores the concept of value migration in selected industries in order to demonstrate underlying and generic principles, and then argues that these principles are no less applicable, and indeed they are exceptionally valuable, in demonstrating the nature of value migration in port-oriented freight systems and supply chains.

Date: 2008
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DOI: 10.1080/03088830802080233

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