The document discusses collaborative behavior among shipping lines with respect to container interchange. It proposes that container repositioning costs, which total $20 billion annually, could be reduced by 19% through a virtual container pool (VCP). The VCP would involve multiple carriers pooling information on empty container stocks and borrowing or lending containers to address shortages and surpluses. While equipment interchange agreements exist among carrier alliances, the feasibility of broader collaboration is examined. A survey found carriers agree collaboration could help address empty container imbalances. Hypothetical models showed collaboration savings from a VCP of $17.5 billion annually, or a 19.29% reduction in repositioning costs. However, some container types may face barriers to interchange

1. Thefactorsthatinfluencethe
CollaborativeBehaviourofShipping
LineswithRespecttoContainer
Interchange
Lalith E.; Jin Z.;Wijeratne

2. Preamble to
the topic
 Container re-positioning cost accounts for USD 20 billion annually
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• Container re-positioning
cost accounts for USD 20
billion annually
• WE PROPOSE THIS COST
CAN BE REDUSED BY
19%THROUGH VCP
©

3. What is
Collaboration
inShipping?
 Virtual Container Pool has lesser boundaries
 Multiple carriers pool themselves and ,
1. Share the information of present and future empty container
stocks
2. Offer the excess containers to those who are deficit
3. Borrow containers from others who are excess when in shortage
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4. Is this feasible?
 Slots and containers are complementary service components in
shipping
 If the “slots” can be shared between alliance partners why not
“containers” ?
 Slots-Intangible >> tangible
 Containers < tangible>
 Will carriers be interested……….
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5. 6/7/2019 Dalian Maritime University Transportation Management College 5
Likewise many
Alliance
agreements……
…

6. Allianceagreementsthatprovideprovisions forequipmentinterchange -Transpacific
Tradefor2006through2010
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Carrier World
ranking*
TEU* Share* Name of Alliance Agreement/s
NYK 12 501,856 2.7% The Grand Alliance II
OOCL 11 506,179 2.8% The Grand Alliance II
HL
6 746,057 4.1%
The Grand Alliance II
APL/HLAG Space Charter Agreement
APL 10 581,422 3.2% APL/HLAG Space Charter Agreement
KLine 17 359,865 2.0% COSCO/KL/YMUK/ HANJIN/Senator Worldwide Slot Allocation
& SailingAgreement
YangMing 14 419,625 2.3%
Hanjin 8 591,946 3.2%
Cosco 5 799,851 4.3%
HYMM 15 384,924 2.1% HMM/MOL Space Charter Agreement
MOL 9 583,066 3.2%
CMA CGM
3 1,586,134 8.6%
CMA CGM/Maruba Cross Space Charter, Sailing And Cooperative
Working Agreement
CMA CGM/CSCL Cross Space Charter, Sailing And CWA-Central
China/USWest Coast,YangTse/
Maruba NA NA NA CMA CGM/Maruba Cross Space Charter, Sailing And Cooperative
Working Agreement
China
Shipping 7 658,702 3.6%
CMA CGM/Maruba Cross Space Charter, Sailing And Cooperative
Working Agreement
CMA CGM/CSCL Cross Space Charter, Sailing And CWA-Central
China/USWest Coast,YangTse/
Total 42.10%
*World ranking, Vessel Capacity in TEUs, and share as per 18 July 2014
Source: (alphaliner.com, 2014)

7. Do carriers
interchange?
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8. Thenumberofrespondentsbasedontheoccurrenceofempty
containerproblems
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9. Therespondents’agreeability/disagreeabilityto collaboration

10. The Matrix of
intra-port
Collaboration
(Hypothetical
case)
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11. The Matrix of
inter-port
Collaboration
(Hypothetical
case)
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12. Examine the
variables that
influence
container
exchange
between
carriers
 Business culture and external environment
 Organizational structure; task; and policies
 Marketing rational of organization and competitor tactics
 Complexity of inventory management and control
 Stakeholders’ interests
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13. Our findings
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Container
Type& Size
Imbalance
when Work
alone
Imbalance when
Collaborate
reduction of
empty
reposition
Savings from
VCP USD
Saving as %
of reposition
cost
20'GP 158221 156285 1936 672,953.60 1.22
40'GP 10486 794 9692 5,506,025.20 92.43
40'HC 44586 27842 16744 9,512,266.40 37.55
45'HC 2155 101 2054 1,166,877.40 95.31
20'&40'RF 5975 4791 1184 672,630.40 19.82
Total 221423 189813 31610 17,530,753.00 19.29
1. Interchange is feasible
2. But some features of containers will have
barriers

14.  Thank you
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