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

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Tongzon, JL and Nguyen, H-O ORCID: 0000-0002-9167-0143 2021 , 'Effects of port-shipping logistics integration on technical and allocative efficiency' , Asian Journal of Shipping and Logistics, vol. 37, no. 2 , pp. 109-116 , doi: 10.1016/j.ajsl.2021.01.001.

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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 Type: Article
Authors/Creators:Tongzon, JL and Nguyen, H-O
Keywords: liner shipping, logistics integration, technical efficiency, allocative efficiency, exploratory factor analysis, structural equation modelling
Journal or Publication Title: Asian Journal of Shipping and Logistics
Publisher: Korean Association of Shipping and Logistics,Han-guk Haeun Mullyu Hakoe
ISSN: 2092-5212
DOI / ID Number: 10.1016/j.ajsl.2021.01.001
Copyright Information:

© 2021 Production and hosting by Elsevier B.V. on behalf of The Korean Association of Shipping and Logistics, Inc. This is an open access article under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

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