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Cost analysis of bulk cargo containerization

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  • Takuma Matsuda
  • Shinya Hanaoka
  • Tomoya Kawasaki

Abstract

Bulk cargo containerization (BCC) involves changes in the transportation mode of container shipping for cargo that uses bulk carriers without packing. This topic has recently attracted considerable attention as an alternative transportation method for container cargo. BCC is advantageous because it can address imbalances in the amount of cargo conveyed between the main and back hauls, thereby improving efficiency. A previous survey among companies involved in cargo shipping revealed that in addition to ocean freight, vanning and devanning, and customs clearance costs, consignees’ decisions were the key factor in selecting transport modes. The present study aims to clarify the cost competitiveness of container shipping and identify cost reductions that may increase the use of BCC. To quantitatively check the results of the survey employed in this study, we constructed a model based on consignees’ and container shipping companies’ costs to determine the choice of transport mode for back-haul trade, then examined the incentives for consignees and shipping companies. We found that BCC can be realized by cost reduction on the part of the consignee and profit improvement on the part of the container shipping company for some routes and goods. Although reducing the freight rate would effectively promote BCC, reducing other costs would not have the same effect.

Suggested Citation

  • Takuma Matsuda & Shinya Hanaoka & Tomoya Kawasaki, 2020. "Cost analysis of bulk cargo containerization," Maritime Policy & Management, Taylor & Francis Journals, vol. 47(6), pages 736-755, August.
    • Handle: RePEc:taf:marpmg:v:47:y:2020:i:6:p:736-755
    DOI: 10.1080/03088839.2020.1727036
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    Cited by:

    1. Huaming Xie & Tong Xu & Qianjiao Wu & Mengya Zhang & Ningning Tong & Ting Zhang, 2022. "Spatial and Economic Effects of Yangtze River-Huaihe River Water Transfer Project on the Transportation Accessibility of Bulk Cargo within Anhui Province, China," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    2. Feng, Xuehao & Song, Rui & Yin, Wenwei & Yin, Xiaowei & Zhang, Ruiyou, 2023. "Multimodal transportation network with cargo containerization technology: Advantages and challenges," Transport Policy, Elsevier, vol. 132(C), pages 128-143.
    3. Trang Tran & Hiromasa Goto & Takuma Matsuda, 2021. "The Impact of China’s Tightening Environmental Regulations on International Waste Trade and Logistics," Sustainability, MDPI, vol. 13(2), pages 1-14, January.

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