| Preface | 5 |
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| Contents | 8 |
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| Chapter 1 International Trade and Shipping | 15 |
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| 1.1 The Importance of Shipping | 15 |
| 1.1.1 Why Is There a Demand for Shipping? | 16 |
| 1.1.2 What Is a Shipping System? | 16 |
| 1.1.3 Who Are the Actors in the Shipping Business? | 17 |
| 1.2 Freight Market | 18 |
| 1.2.1 Tramp Market | 18 |
| 1.2.2 Liner Market | 19 |
| 1.3 World Economic Development and Shipping | 19 |
| 1.4 Sea Transport System | 20 |
| 1.4.1 Shipping Intensity | 21 |
| 1.4.2 Concept of Parcel Size Distribution | 22 |
| 1.5 International Trade Pattern | 23 |
| 1.5.1 World Output and World Trade | 23 |
| 1.5.2 Overall Seaborne Trade | 24 |
| 1.6 International Maritime Passages | 26 |
| 1.6.1 The Panama Canal | 26 |
| 1.6.2 The Suez Canal | 27 |
| 1.6.3 The Strait of Malacca | 27 |
| 1.6.4 The Strait of Hormuz | 27 |
| 1.6.5 The Strait of Magellan | 28 |
| 1.6.6 The Cape of Good Hope | 28 |
| 1.7 Conclusions | 28 |
| References | 29 |
| Chapter 2 Freight Rate Mechanism | 30 |
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| 2.1 Demand for Sea Transport | 30 |
| 2.1.1 Political Factors | 31 |
| 2.1.2 World Economy | 32 |
| 2.1.3 Seaborne Trade | 32 |
| 2.1.4 Average Haul | 32 |
| 2.1.5 Transport Cost | 33 |
| 2.1.6 Shipping Demand Curve | 33 |
| 2.1.7 Elasticity of Demand | 34 |
| 2.2 Supply of Sea Transport | 35 |
| 2.2.1 Shipping Supply Curve | 37 |
| 2.2.2 Short-run and Long-run Shipping Supply | 38 |
| 2.2.3 Rigidity of Supply | 40 |
| 2.3 The Freight Rate Mechanism | 40 |
| 2.4 Shipping Cycle | 41 |
| 2.4.1 Characteristics of Shipping Cycles | 42 |
| 2.4.2 What Causes the Shipping Cycle? | 42 |
| 2.4.3 Recent Developments in the Shipping Market | 42 |
| 2.4.4 Managing the Shipping Cycle | 43 |
| References | 29 |
| Chapter 3 Bulk Shipping Market | 46 |
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| 3.1 Introduction | 46 |
| 3.2 The Shipping Market | 48 |
| 3.2.1 New Buildings | 49 |
| 3.2.2 Second-hand Vessels | 50 |
| 3.2.3 Demolition Vessels | 51 |
| 3.2.4 Freight Rate | 52 |
| 3.2.5 Seaborne Trade | 52 |
| 3.3 The Empirical Model | 53 |
| 3.4 Determinant of Fleet Size of Bulk Shipping | 55 |
| 3.5 Discussion and Conclusions | 57 |
| Appendix | 58 |
| References | 29 |
| Chapter 4 Container Shipping Market | 61 |
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| 4.1 Introduction | 61 |
| 4.2 Industrial Organization in Container Shipping | 62 |
| 4.3 Capacity Adjustment in the Container Shipping Market | 63 |
| 4.3.1 Seaborne Trade | 63 |
| 4.3.2 Freight Rate | 64 |
| 4.3.3 Capacity Adjustment | 64 |
| 4.3.4 An Empirical Model of the Container Shipping Market | 65 |
| 4.4 The Determinant of Fleet Size in Container Shipping | 66 |
| 4.5 Discussion and Conclusions | 68 |
| Appendix | 58 |
| References | 29 |
| Chapter 5 Business Strategy in Shipping | 72 |
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| 5.1 Introduction | 72 |
| 5.2 Strategy for Shipping | 74 |
| 5.2.1 Corporate Strategy | 75 |
| 5.2.2 Business Strategy | 76 |
| 5.2.3 Functional Strategy | 76 |
| 5.3 Market Orientation in Shipping | 76 |
| 5.3.1 Customer Focus | 77 |
| 5.3.2 Competitor Intelligence | 77 |
| 5.3.3 Cross-functional Coordination | 78 |
| 5.3.4 Performance Implications | 78 |
| 5.4 Operational Effectiveness Versus Competitive Strategy | 78 |
| 5.4.1 Variety-based Positioning | 79 |
| 5.4.2 Needs-based Positioning | 79 |
| 5.4.3 Access-based Positioning | 79 |
| 5.5 Development Process of Shipping Strategies | 80 |
| 5.5.1 Strategic Analysis | 80 |
| 5.5.2 Formulation of Strategies | 81 |
| 5.5.3 Implementation and Control | 81 |
| 5.6 Structural Options for Shipping Companies | 81 |
| 5.6.1 Organic Growth | 82 |
| 5.6.2 Acquisitions | 82 |
| 5.6.3 Joint Ventures | 83 |
| 5.6.4 Alliances | 83 |
| 5.6.5 Networks | 84 |
| References | 29 |
| Chapter 6
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