Jurnal Internasional
International Journal Logistic Management: Supply-side strategic flexibility capabilities in container liner shipping
Purpose – The purpose of this paper is to explore the extent to which supply side flexibility tactics
are deployed by operators in the container liner shipping sector in 2009/200 to restrict supply in a
market which is characterised by over-supply (as well as under demand).
Design/methodology/approach – Taking a case study approach using the Far East-Europe trade
lane, secondary data are reviewed for each type of internal flexibility capability. This is supplemented
by a qualitative Delphi-based research method so that findings are iteratively verified with leading
practitioner personnel.
Findings – In 2009, directly after the severe imbalance between demand and supply emerged, liner
shipping providing companies were only partially able to exploit the flexibility tactics that were
available to them. This improved in 2010 and contributed to an upturn in performance.
Research limitations/implications – Ocean freight logistics provides a vital foundation for
contemporary international commerce. However, the viable provision of this service has become
significantly more challenging and this research examines why this is the case and what supply side
responses are being deployed. Taking a case study approach focussing on 2009/2010 restricts
the generalisability of the research that could now be examined on a longer time scale across the
whole sector.
Originality/value – This research is novel as there has been no previous research which has looked
at the deployment of supply side flexibility tactics in the container liner shipping sector. The findings
have considerable bearing on how the industry is run and understood by its providers, customers
and regulators.
Keywords Freight containers, Liners, Flexibility, Supply, Shipping, Horizontal integration
Paper type Research paper
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