An empirical analysis of the influential factors affecting ocean carriers’ competitiveness: freight forwarders' perspective

This empirical paper identifies the critical factors influencing ocean container carriers’ selection and examines the impact of the influential factors on the competitiveness of ocean carriers from the freight forwarders’ perspectives. Data for the study was collected from 105 freight forwarding organisations. The significant factors influencing the competitiveness of ocean carriers were identified using structural equation modelling. Results indicated that the factors affecting the competitiveness of ocean carriers are schedule reliability, document accuracy, service quality, freight rate, quick handling and environment.

This paper also proposes a model that shows the direct effects of the influential factors on the competitiveness of the ocean carriers. The model validates the competitiveness of ocean carriers from the freight forwarders’ perspective. To the best of authors’ knowledge, this study is the first of its kind that measures the competitiveness of ocean carriers from the freight forwarders’ perspective. This model can become a basis for other empirical studies to be built on to examine competitiveness of carriers.

The understanding of the factors that the freight forwarders’ employed when making ocean carriers’ choice is paramount to the liner shipping companies because it shall enable the liner shipping companies to formulate relevant strategies to attract freight forwarders in patronising their shipping services.