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Effects of port-shipping logistics integration on technical and allocative efficiency

Citation

Tongzon, JL and Nguyen, H-O, Effects of port-shipping logistics integration on technical and allocative efficiency, Asian Journal of Shipping and Logistics, 37, (2) pp. 109-116. ISSN 2092-5212 (2021) [Refereed Article]


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DOI: doi:10.1016/j.ajsl.2021.01.001

Abstract

Itis well known thatthe international logistics and supply chains are subjectto the domination of seaports and shipping lines each with increasingly significant market power. This implies that international supply chains, which typically involves sea transport as a key chain segment, could be subject to the double marginalisation problem. This means, chain operators are likely subject to both technical and allocative efficiency issues. The former is related to the use of inputs in production and distribution, and the latter is generally related to the market structure that affects resource allocation. The current study seeks to study the simultaneous relationships between three components, namely logistics integration, technical efficiency, and allocative efficiency in international container shipping. Exploratory factor analysis and structural equation modelling are conducted using data collected from a survey of global shipping lines. The analysis results show that logistics integration comprises of two main interrelated aspects, namely relational integration, and operational integration. It has significant effects on both technical and allocative efficiency. Technical efficiency and market contestability are affected by relational integration, while allocative efficiency and infrastructure capacity are affected by operational integration. Based on the analysis results, implications for port, terminals and stakeholders are also discussed.

Item Details

Item Type:Refereed Article
Keywords:liner shipping, logistics integration, technical efficiency, allocative efficiency, exploratory factor analysis, structural equation modelling
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation, logistics and supply chains
Research Field:Maritime transportation and freight services
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Industrial organisations
UTAS Author:Nguyen, H-O (Associate Professor Oanh Nguyen)
ID Code:145485
Year Published:2021
Deposited By:Maritime and Logistics Management
Deposited On:2021-07-22
Last Modified:2021-07-23
Downloads:0

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