Cost analysis of bulk cargo containerization
Takuma Matsuda,
Shinya Hanaoka and
Tomoya Kawasaki
Maritime Policy & Management, 2020, vol. 47, issue 6, 736-755
Abstract:
Bulk cargo containerization (BCC) involves changes in the transportation mode of container shipping for cargo that uses bulk carriers without packing. This topic has recently attracted considerable attention as an alternative transportation method for container cargo. BCC is advantageous because it can address imbalances in the amount of cargo conveyed between the main and back hauls, thereby improving efficiency. A previous survey among companies involved in cargo shipping revealed that in addition to ocean freight, vanning and devanning, and customs clearance costs, consignees’ decisions were the key factor in selecting transport modes. The present study aims to clarify the cost competitiveness of container shipping and identify cost reductions that may increase the use of BCC. To quantitatively check the results of the survey employed in this study, we constructed a model based on consignees’ and container shipping companies’ costs to determine the choice of transport mode for back-haul trade, then examined the incentives for consignees and shipping companies. We found that BCC can be realized by cost reduction on the part of the consignee and profit improvement on the part of the container shipping company for some routes and goods. Although reducing the freight rate would effectively promote BCC, reducing other costs would not have the same effect.
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
http://hdl.handle.net/10.1080/03088839.2020.1727036 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:marpmg:v:47:y:2020:i:6:p:736-755
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TMPM20
DOI: 10.1080/03088839.2020.1727036
Access Statistics for this article
Maritime Policy & Management is currently edited by Dr Kevin Li and Heather Leggate McLaughlin
More articles in Maritime Policy & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().