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Strategies for capacity utilisation in short sea shipping

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  • Linda Styhre

    (SSPA Research, Chalmers Tv&aauml;rgata 10, Göteborg 400 22, Sweden.)

Abstract

In waterborne transportation, an increase in fleet size involves long-term planning and heavy investments. Institutional features; trade imbalances and demand variations; and customer demands for high frequency create a situation where liner shipping companies tend to operate with a high level of unutilised vessel capacity. This paper examines vessel capacity utilisation and is based on a study of seven RoRo services in Northern Europe. The purpose is to analyse capacity utilisation strategies and examine measures aimed at enhancing vessel capacity utilisation. Capacity utilisation strategies are influenced by route specific characteristics, such as trade imbalances and demand variations, competitive situation, state of the market, and types of customers and cargo. The analysis here concludes that two extreme strategies are followed: (a) Cut peaks, that is, to keep capacity limited so as to increase short-run revenue per transported unit, and (b) Never say no, which allows a higher level of unutilised capacity in order to maintain a high service level, good flexibility, and the possibility to grow in the market. This paper also describes long-term and short-term measures to enhance vessel capacity utilisation.

Suggested Citation

  • Linda Styhre, 2009. "Strategies for capacity utilisation in short sea shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(4), pages 418-437, December.
  • Handle: RePEc:pal:marecl:v:11:y:2009:i:4:p:418-437
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    Citations

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    Cited by:

    1. José I. Castillo-Manzano & Juan P. Asencio-Flores, 2012. "Competition Between New Port Governance Models on the Iberian Peninsula," Transport Reviews, Taylor & Francis Journals, vol. 32(4), pages 519-537, January.
    2. Tiago A. Santos & C. Guedes Soares, 2017. "Methodology for ro-ro ship and fleet sizing with application to short sea shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(7), pages 859-881, October.
    3. Anastasia Christodoulou & Kevin Cullinane, 2021. "Potential for, and drivers of, private voluntary initiatives for the decarbonisation of short sea shipping: evidence from a Swedish ferry line," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(4), pages 632-654, December.
    4. Merkel, Axel & Lindgren, Samuel, 2022. "Effects of fairway dues on the deployment and utilization of vessels: Lessons from a regression discontinuity design," Transport Policy, Elsevier, vol. 126(C), pages 204-214.
    5. Inge Vierth & Victor Sowa & Kevin Cullinane, 2019. "Evaluating the external costs of trailer transport: a comparison of sea and road," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(1), pages 61-78, March.
    6. Tiago A Santos & C Guedes Soares, 2017. "Modeling transportation demand in short sea shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(4), pages 695-722, December.
    7. Anastasia Christodoulou & Kevin Cullinane, 0. "Potential for, and drivers of, private voluntary initiatives for the decarbonisation of short sea shipping: evidence from a Swedish ferry line," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-23.
    8. Chia-Nan Wang & Thanh-Tuan Dang & Tran Quynh Le & Panitan Kewcharoenwong, 2020. "Transportation Optimization Models for Intermodal Networks with Fuzzy Node Capacity, Detour Factor, and Vehicle Utilization Constraints," Mathematics, MDPI, vol. 8(12), pages 1-27, November.
    9. T. A. Santos & G. Lopes Santos & P. Martins & C. Guedes Soares, 2022. "A methodology for short-sea-shipping service design within intermodal transport chains," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(1), pages 138-167, March.
    10. Anastasia Christodoulou & Zeeshan Raza & Johan Woxenius, 2019. "The Integration of RoRo Shipping in Sustainable Intermodal Transport Chains: The Case of a North European RoRo Service," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    11. Merkel, Axel & Lindgren, Samuel, 2022. "Effects of fairway dues on the deployment and utilization of vessels: Lessons from a regression discontinuity design," Working Papers 2022:3, Swedish National Road & Transport Research Institute (VTI).

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