The relationship between port choice and terminal involvement of alliance members in container shipping: Fid-Bau Portal

The relationship between port choice and terminal involvement of alliance members in container shipping

Notteboom, Theo E. / Parola, Francesco / Satta, Giovanni / Pallis, Athanasios A.

AbstractThis paper examines in which ways the changing organizational routines of shipping (i.e., alliance formation and vertical integration in container terminal operations) are affecting the selection of ports of call in intercontinental liner service networks. It first provides a conceptual analysis of the interplay between changes (a) in the organizational routines of shipping lines as part of alliances, (b) the organizational routines at the level of terminal operations (i.e. direct carrier equity involvement in terminal operations) and (c) in port calling patterns. The empirical part examines the relationship between port choice of alliance members and the direct involvement of shipping lines in container terminals in North-West European ports. It does so using binary and non-binary data on the evolution of calling patterns on the North Europe-Far East trade from 2006 to 2017. In addition, the changes in both alliance formation during that period and in the container terminal involvement of carriers in North West European ports are addressed. By examining the relationship between port calling patterns of alliances and the terminal interests of alliance members, the paper addresses an under-researched theme in the extant literature on port choice/selection by carriers. The paper is also of value to port managers and shipping professionals in view of port strategy and planning decisions, as well as shipping strategy formulation.

Highlights•The relationship between port choice & terminal involvement of alliance members is analysed.•Two methods are proposed using binary and non-binary data.•The model is applied to calling patterns on the North Europe-Asia trade.•The findings show a complex relation between port choice and terminal involvement.