Maritime Economics & Logistics, 2006, 8, (318)

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Maritime Logistics and Global Supply Chains:

Towards a Research Agenda

P H O T I S M PA N AY I D E S 1

1
T h e C y p r u s I n t e r n a t i o n a l I n s t i t u t e o f M a n a g e m e n t , 21 A k a d e m i a s
Av . , A g l a n d j i a , P O B 2 0 3 7 8 , N i c o s i a , C y p r u s .
E-mail: photis.panayides@ciim.ac.cy

The derived demand for maritime transport has evolved from a demand for the
possession of goods to an integrated demand for the possession of goods that
have been added value, timely, reliably and cost-efficiently. This has given rise
to the concept of maritime logistics, which represents the theme of the special
issue of Maritime Economics and Logistics. This paper discusses the evolution
of the maritime logistics concept, reviews the contributions in maritime logistics
made by the best papers on the topic presented at the International Association
of Maritime Economists (IAME) 2005 Conference and highlights areas for
further research.
Maritime Economics & Logistics (2006) 8, 318.
doi:10.1057/palgrave.mel.9100147

Keywords: Maritime logistics; global supply chains; research.

INTRODUCTION

Conventional wisdom suggests that the demand for maritime transport is a

derived demand, in that it is derived from the demand for goods. This position,
however, is subject to further conceptualisation, as the demand for maritime
transport nowadays cannot be solely considered to be a derived demand
emanating from the need for products, but rather as an integrated demand
emanating from the need to minimise costs, improve reliability, add value, and
a series of other dimensions and characteristics pertaining to the transportation
of goods from the point of production to the point of consumption.
The nature of integrated demand for maritime transport gives rise to
another concept that of maritime logistics. Demand for maritime transport is
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Maritime Logistics and Global Supply Chains
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differentiated from demand for maritime logistics on the basis of the added
significance gained by specific dimensions and characteristics pertaining to the
transportation of goods by sea. Hence, nowadays it is not simply the possession
of products that is important, but rather the possession of products on time and
at least cost. In fact, integrated demand in maritime logistics goes further, to
demand for the possession of goods that have been transformed and have
improved in value through their supply chain journey, on time, at least cost in
the right quantity/level of quality and so on. This evolution in the
characteristics of demand regarding the possession of goods brought about by
globalisation in production, consumption, changing consumer needs and global
competition has opened up new areas for research in maritime economics and
logistics. This special issue of Maritime Economics & Logistics aims at
contributing to the emerging theme of Maritime Logistics and Global Supply
Chains by bringing together the best papers on the subject area presented at the
International Association of Maritime Economists (IAME) Conference 2005. The
aim of this paper is to introduce the concept of maritime logistics, to discuss the
facets of convergence between maritime transport and logistics and through a
review of the papers in this volume to contribute towards a research agenda for
the topic. The next section considers the underlying scope and characteristics of
the concept of maritime logistics. This is followed by a discussion of the
convergence of maritime transport and logistics facets and the gradual
evolution to maritime logistics as evidenced by research undertaken over the
last two decades. The review of the papers in this special issue provides ample
opportunity for understanding current research in the area and forming a basis
for future research directions.

W H AT I S M A R I T I M E L O G I S T I C S ?

In attempting to arrive at a better understanding and ultimately a definition of

maritime logistics, a starting point would be to consider the underlying scope
and characteristics of the two areas making-up the term, viz maritime transport
and, logistics and supply chain management. Maritime transport clearly
concerns the transportation of goods and/or passengers between two seaports
by sea. On the other hand, it has been more difficult to put a precise definition
on the terms logistics and supply chain management. In general, logistics is
the function responsible for the flow of materials from suppliers into an
organisation, through operations within the organisation and then out to
customers. A supply chain consists of the series of activities and organisations
that materials (raw materials and information) move through on their journey
from initial suppliers to final customers. Supply chain management involves the
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integration of all key business operations across the supply chain. The
distinction is made clear in the website of the Council of Logistics Management.
For supply chain management, the official definition adopted by the Council of
Logistics Management is: supply chain management encompasses the planning
and management of all activities involved in sourcing and procurement,
conversion and all logistics management activities. Importantly it also includes
co-ordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. In essence, supply
chain management integrates supply and demand management within and
across companies. On the other hand, the Council of Logistics Management
explicitly declares that logistics management is only part of supply chain
management: Logistics is that part of the supply chain process that plans,
implements, and controls the efficient, effective flow and storage of goods,
services and related information from the point-of-origin to the point of
consumption in order to meet customers requirements.
The convergence of maritime transport and logistics may be largely
attributed to the physical integration of modes of transport facilitated by
containerisation and the evolving demands of end-customers that require the
application of logistics concepts and the achievement of logistics goals. At the
centre of maritime logistics is the concept of integration, be it physical
(intermodal), economic/strategic (vertical integration, governance structure) or
organisational (relational, people and process integration across organisations).
The characteristics of logistics and supply chain management mean that
maritime logistics as a concept largely applies to the transportation of
containerised cargoes via a liner shipping service as opposed to the transporta-
tion of bulk cargoes say in a tramp shipping situation. There are instances, of
course, where maritime logistics concepts can apply to the transportation of bulk
cargoes, especially with regard to the integration of cargo owners and
shipowners via alliances and the focus on the achievement of logistics goals
such as timeliness, reliability, low cost, etc. This is beyond the scope of the
current discussion that will focus on containerised maritime transport.
In the transportation of containerised goods, what has become extremely
important is the door-to-door concept of transportation and factors such as cost,
efficiency, accessibility, service and reliability pertaining to this concept. Hence,
traditional customers of maritime transport firms have shifted their focus to
receiving a complete door-to-door service, sourced from a single service
provider and attained at the least cost and higher efficiency. In this respect,
inland distribution has become a very important dimension in the development
of global supply chains, whereas inland accessibility and other logistics
functions and characteristics have gained prominence in the achievement of
higher port performance and competitiveness.
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The goals of logistics have been mentioned earlier as instrumental in the

drive towards integration of maritime transport and logistics. This is because
the goals of logistics have converged with the goals of maritime transport. The
overall aim of logistics is to achieve high customer satisfaction by providing
a high-quality service with low or acceptable costs since the key task,
according to the Institute of Logistics and Transport, is the time-related
positioning of resources. Arguably the time-related positioning of resources is
also a key aim for liner shipping and maritime transport. Logistics adds value by
making products available in the right place at the right time. Logistics adds the
so-called place utility if it makes a product available at the place it is needed. It
adds time utility if the product is delivered at the right time. Maritime transport
and liner shipping in particular also aim for adding place and time utility
in performing their related operations. Logistics has a number of indicators
that measure the extent to which the broad logistics goals are achieved.
These include the management of demand and supply to avoid surpluses
and shortfalls, the full utilisation of resources, minimisation of losses in
transportation, cost reduction in transportation and storage, meeting customer
needs in order fulfillment and improving customer service and customer
communication. These are indicators that also apply in measuring the
performance of liner shipping operations.
It follows that the convergence of maritime transport and logistics has been
inevitable since there has been a convergence of goals, a convergence of
performance indicators, as well as the physical integration of transport modes.
The following section aims to review research indicative of the convergence of
maritime transport and logistics. The review focuses on the economic and
behavioural/managerial approaches of maritime logistics and global supply
chains, as opposed to the operations research perspective in line with the vast
majority of papers submitted at the IAME 2005.

T H E C O N V E R G E N C E O F M A R I T I M E T R A N S P O R T A N D L O G I S T I C S FA C E T S

Maritime transport and logistics have traditionally been viewed as separate

sub-disciplines and have been largely treated in this respect by researchers.
Research in maritime transport is focused on the sea-leg or on specific
operations concerning the sea-leg. The study of maritime transport dealt
with the analysis of shipping markets, ship investment and financing,
ship operations and ship management, corporate management of shipping
companies and public policy studies, in particular, related to liner shipping,
safety, flagging and fiscal treatment among others. Studies in maritime transport
were also port-focused and covered the relationship between ship and port
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operations as well as issues relating to port services, pricing, port efficiency and
performance among others. Maritime transport is essentially concerned with
port-to-port transportation and associated operations including underlying
market and corporate economics.
Logistics has evolved from physical distribution management and was
primarily concerned with the inland physical transportation and distribution
of cargoes. Logistics is essentially concerned with the flow of materials,
information and services along the vertical and horizontal value chain (or
supply chain) that seeks to coordinate the flows. The unit of analysis is
essentially the flow.
The distinct treatment of maritime transport and transport logistics is well
illustrated in the two edited volumes published recently on the respective
subject areas (McKinnon et al, 2002; Brooks et al, 2002). Although the editors
must have deliberately targeted the choice of different papers in putting together
the volumes, it is clear that the papers published in the period 19702001 (with
the majority of them in the 1990s) reflect the focus of research streams in the
respective subject areas at the time. In the context of transport logistics, the
main topics include freight transport and the modelling of freight movements
within the supply chain, intermodal systems, modal split and carrier selection,
vehicle routing, utilisation and network planning, outsourcing, just-in-time,
environmental impact, traffic congestion and city logistics, IT and deregulation
of freight transport. In the maritime transport context topics include, carrier
management and operations, competition policy and pricing largely in liner
shipping, finance, the fiscal treatment of shipping and flag of registry issues, law
and policy, shipping markets and structures and ports.
Areas of overlap and convergence between maritime transport and logistics
may be traced back to studies relating to freight mode choice (eg Gray, 1982;
Whyte, 1993), intermodalism (DEste, 1996; Hayuth, 1987) and determining the
criteria of satisfaction with ocean carriers by applying dimensions that were
traditionally part of logistics goals (eg Brooks, 1999). Intermodal transportation
has been an area of convergence between maritime transport and logistics since
the concept itself relates to the physical convergence between modes of
transport in the sea and land legs.
In addition to the above, changing customer requirements contributed to
the convergence of maritime transport and logistics. Frankel (1999, p. 10)
states, for instance: The time when shippers used an array of freight forwarders,
truckers, clearance agents, shipping companies, railway services, etc and various
financial, freight insurance and other institutions are gone. Today major
customers demand and get one-window integrated just-in-time and efficient
all-inclusive door-to-door service at a predetermined price. This is what the
market demands now. This has led to a greater interest by ocean carriers in
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inland transportation and the provision of a total door-to-door logistics package

to their clients. Other contributing factors include, trends in rationalisation and
liberalisation taking place in liner shipping, intense competition for market
share and depressed freight rates. Semejin and Vellenga (1995) succinctly
documented the benefits that may accumulate to ocean carriers adopting such a
strategic move.
Carriers have nowadays been transformed from product dispensers and
distributors to a critical element in supply chain service performance, hence
expanding the scope of their operations. Contemporary carriers need to play a
crucial role in supply chain integration and dissemination of information
(Wagner and Frankel, 2000). More attention is therefore being paid to and by
carriers concerning their own value and position within established networks
(Coyne and Dye, 1998). Shippers, customers, consignees and other stakeholders
are spending more time qualifying carriers who must conform to more stringent
criteria related to service performance and evaluation (Brooks, 1999, 2000).
More recently the convergence of maritime transport and logistics concepts
has been more distinct with the drive towards examining specific areas in liner
shipping and freight transportation/port integration (eg Heaver et al, 2000;
Notteboom and Winkelmans, 2001; Robinson, 2002), liner shipping logistics
services (eg Lu, 2000; Lu et al, 2005) and port and logistics integration (eg
Bichou and Gray, 2005; Carbone and De Martino, 2003).
In the area of liner shipping from the maritime firm perspective, it is clear
that there has been an evolution of practices and research from the traditional
approach of examining the sea-leg and maritime operations/economics towards
focusing on the creation of liner shipping networks, the value delivered to the
customer and application of logistics concepts. The creation of hub and spoke
systems, relay-type of networks, pendulum services and other alternative
network configurations are in effect based on the quest for improvement in
efficiency, transit time, scheduling and reliability in line with logistics goals.
Robinson (1998) argued that a system of hub ports as main articulation points
between mainline and feeder nets in Asia has been replaced by a hierarchical
set of networks reflecting differing cost/efficiency levels.
In the liner shipping context, the level of integration in inland transport and
logistics has been helped by a series of vertical and horizontal mergers,
acquisitions as well as the formation of alliances. Because of this many
previously independent distribution functions have passed to the control of a
single entity. Mergers and acquisitions facilitated the emergence of mega-
carriers that control many segments of the supply chain. Cooperative strategies
in liner shipping ranging from loose alliances to full vertical integration is an
area of maritime logistics that has also received attention in the past (eg Brooks,
2000; Evangelista and Morvillo, 1999, 2000; Heaver, 2002). The emerging theme
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is that such forms of cooperation are related to the development of global

supply chains, indicative of the fact that integration is a central tenet in any
discussion on maritime logistics.
In the liner shipping context, Lu (2000) examined the importance of
logistics services and strategic dimensions in Taiwanese maritime firms. The
results revealed that the most important strategic dimensions were value-added
service, followed by promotion, equipment and facilities as well as speed and
reliability. Lu et al (2005) went further to empirically evaluate web site services
in the liner shipping industry based on the service requirements of the user
firms, that is, shippers. They found that shippers perceive tracing to be the most
important service attribute of a web site, followed by customers response,
vessel schedules, and electronic document service. It is evident that customers
themselves demand logistics services (and to that extent high-quality logistics
services) from their ocean carriers and, ocean carriers are evaluated on
performance criteria that have traditionally been linked to logistics goals.
Lai et al (2004) examine and compare supply chain performance across
three transport logistics sectors, viz air and sea transport, freight forwarding
and third-party logistics service providers. They found that all sectors are
mature attaining a certain degree of sophistication in their supply chain
practices, although firms in third-party logistics seemed to attain higher levels
of supply chain performance than firms in the other sectors.
A body of literature has examined the causes, patterns and implications of
the integration of logistics, maritime transport and ports (eg Heaver et al, 2000;
Notteboom and Winkelmans, 2001; Robinson, 2002). Logistics integration and
the changing role of port authorities in the new logistics-restructured
environment is addressed by Heaver et al (2000) and Notteboom and
Winkelmans (2001). Robinson (2002) places the role of seaports within a new
paradigm of ports as elements in value-driven chain systems.
The integration of ports in the concept of logistics and supply chain
management is well argued by Bichou and Gray (2005). They examine the
validity of the conventional terminology for classifying seaports, questioning
the assumption that ports should be conceptualised as separate markets and
distinct operational and business ventures. Bichou and Gray (2005) conceptua-
lised the role of ports from three perspectives. Firstly from a logistics channel
perspective, the port serves as a node in the intermodal/multimodal transport
intersection and operates as a logistics centre for the flow of cargo/passengers.
Secondly from a trade channel perspective, the port is a key location whereby
channel control and ownership can be identified and/or traded. Thirdly from a
supply channel perspective, the port not only links outside flows and processes
but also creates patterns and processes of its own. In this context, ports can act
as networking sites bringing together other members of the supply chain.
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Notteboom and Rodrigue (2005) also examine the implications of spatial

distribution in freight distribution and network creation and introduce a port
regionalisation phase in port development. It is argued that the regionalisation
phase and associated hinterland concepts demand new approaches to port
governance and a functional focus that goes beyond the traditional port perimeter.
Traditionally, port performance has been measured to a large extent by
quantification of efficiency and competitiveness (eg Cullinane et al, 2002;
Tongzon and Heng, 2005). More recently the advent in intermodal transporta-
tion and the consideration of ports as nodes in the supply chain led to a logistics
and supply chain management approach in measuring port performance
(Bichou and Gray, 2004). Bichou and Gray (2005) state that port performance
should be analysed valued and assessed in terms of a ports contribution to the
overall combined channel added value; and thus port competition will shift
from the institutional, functional and/or spatial levels to the channel manage-
ment level. Marlow and Paixao (2003) and Paixao and Marlow (2003) introduce
the logistics concepts of leanness and agility to the investigation of port
performance. Paixao and Marlow (2003) suggested that ports ought to introduce
agility in order to compete more efficiently. Agility implies flexibility and the
structure to enable quick response to changes in customer demand. Marlow and
Paixao (2003) discuss the need for ports to be lean in their operations by
performing their functions in alignment with market demand while eliminating
waste. It is obvious that the concepts have been applied from the logistics
literature where pull systems through determining demand and consequent cost
reduction and waste elimination have been practiced for some years.

FUTURE RESEARCH DIRECTIONS

The papers presented at the IAME 2005 Conference and in particular those
selected and published in this issue served as a guide in the attempt to decipher
the major areas for further research in maritime logistics. Although neither the
areas proposed, nor the implied/suggested approaches, conceptualisations and
methodologies are exhaustive of the possibilities available, they may serve as a
spur for further conceptualisation and synthesis.

Integration
It has been mentioned that a central tenet in maritime logistics is integration,
particularly of modes and organisations along the global supply chain. In
addition, one has to consider the performance implications of any integration
strategies, particularly in the achievement of maritime transport and logistics
goals (time and place utility at least cost).
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Although the practical aspects of mode integration have been examined, the
economic and organisational aspects of integrating organisations under
different governance mechanisms (eg ranging from arms length transaction to
relational mechanisms to full vertical integration) offer scope for further
empirical investigations. For instance, would a long-term partnership arrange-
ment between a liner shipping company and an inland transport provider be as
effective as a full vertically integrated governance structure (eg merger)
between two entities? In addition, what are the performance implications of
such governance structures?
Integration can contribute to agility, which involves being proactive
along supply chains, facilitation of intermodal integration, as well as
organisational integration and partnership. Despite the well-articulated
importance of the issues, the lack of a comprehensive and reliable operational
measure of the concept is a constraining factor to empirical investigations that
would give rise to generalisable implications to guide practice and further
research on the topic.
Although a lot has been written on the importance of integration across the
supply chain (between liner companies, port operators, logistics providers,
suppliers, etc) little has been offered in terms of conceptualisations and
empirical evidence of what really is meant by integration in the supply chain,
how such integration can be measured and quantified as well as the extent to
which different organisations along global supply chains are integrated and
performance implications arising thereof. A previous study by Panayides and So
(2005) focused on logistics service provider-client relationships. There is
definitely scope for investigation of dyadic and supply chain relationships
between other parties in the maritime logistics chain.
A key question in maritime logistics is how, say a liner shipping company
becomes integrated with a port operator, what are the mechanisms of
integration, how different are they under different structures of port governance
and what are the implications of this in the context of port/terminal and supply
chain performance. Integration requires on the part of the port operator
communication, the adoption/use of advanced information and communication
technologies, relational capabilities (inter-organisational relationships, trust,
commitment, adaptation) facilitation of inter-modal integration, provision of
value-added services and planning for the efficient and effective operation of
the supply chain as a whole and not solely the port/terminal, that is, the extent
to which the port/terminal plans/organises and seeks to identify the most
efficient routes for cargoes passing through it. Successful integration should
result in more efficient operations for liner shipping companies as well as
terminal operators. However, most of the evidence up to now is anecdotal or
company-specific (eg Carbone and De Martino, 2003).
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Liner shipping performance

Liner shipping companies have been traditionally evaluated using certain
measures of performance that involved primarily the port-to-port leg. In the era
of logistics and supply chain management and the increased involvement of
liner shipping companies in inland transportation, probably there is a need to
incorporate additional measures of performance. The performance goals of liner
shipping companies are related to issues of reliability, time, cost, space utility
and customer satisfaction. A key issue is the selection and evaluation criteria for
liner shipping services as well as the effectiveness of liner shipping companies
in serving their clients in terms of scope/extent of their services and service
performance attributes. In fact, Durvasula et al (2001) identified that service
interfaces and encounters between ocean freight shipping lines and their
customers ultimately determine the level of satisfaction clients have with the
service and the concomitant perceived quality.
Notteboom (2005) examined the time factor in the context of liner shipping
services, which relates to the time utility goal of logistics. Based on the fact that
waiting times and delays are responsible for logistics costs to the customer due
to schedule unreliability, the analysis highlights the wide array of measures and
planning tools available to shipping lines for maximising schedule reliability.
The fact that port congestion has been found as probably the main source of
schedule unreliability is additional evidence to the need for greater integration
between ocean carriers and ports in the quest to achieve mutual goals. Since
one of the goals of supply chain management is time compression (lessening
the period of time between ordering and final delivery) it follows that maritime
transport and liner shipping in particular, being part of the global supply chain
has an influence on time compression. In this context, one has to consider the
time factor in liner shipping and the implications of that in terms of delay costs
for cargo. Obviously, areas for further research may emanate from the analysis
herewith, which includes the integration of the liner shipping-related time
factor in the overall door-to-door transit time from a supply chain perspective as
well as identification of ways by which such delays can be minimised at least
cost. In addition, the implication of including supply chain inputs and
performance outputs in liner shipping studies is evident.

Maritime logistics value

Robinson (2002) introduced the concept of value networks in the port
environment and argued that competition takes place along value chains as
opposed to between individual ports. In the IAME 2005 Conference, Robinson
(2005) explored further the notion of value by focusing on landside logistics and
arguing that value in ports migrates into the landside logistics markets. The author
indicates that the analysis goes beyond the spatial implications and explicitly
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recognises the migration of value towards functional integration, the delivery and
capture of value in chain pathways and the critical role of corporate power in
chain integration. A logical extension of the conceptual work of Robinson (2005)
would be the quantification of value along the chain networks described.
Although this is not an easy task to accomplish, however, it is a necessary pre-
condition for further research in the area. There exist various conceptualisations of
what makes-up value in maritime logistics networks. The next step is to provide
an organising framework of value that includes all main conceptualised variables
and to quantify those variables in order to assess their significance in contributing
to value. Key questions include how companies add value in maritime logistics
context and what are the characteristics of those organisations that can add higher
value. A measurement scale of value can be used to examine empirically a
number of permutations including the contributions of value to supply chain
performance as well as the relationship between value and issues pertaining to
port governance and port characteristics. In addition, with the quantification of
value there would be scope for ranking and comparing value networks.

Port performance
In the IAME 2005 Conference and in this issue, Wang and Cullinane (2005)
investigate the efficiency of Europes container terminals within the context of
global supply chain management. The study defines efficiency from the supply
chain perspective as the ability of the port to reduce its costs through efficient
use and utilisation of infrastructure, the use of sophisticated equipment and
efficient information technology. In addition, the output variable is defined as
container throughput, following the conventional selection of variables for port
efficiency studies. The study presents an attempt to link supply chain
management to port and terminal objectives and outputs. Of course, there is
a need to model and investigate other variables that may be related to the
adoption of supply-chain-related characteristics as well as the achievement of
supply-chain-related performance goals. For instance, port performance in the
supply chain era may encompass other inputs such as provision of value-added
services, facilitation of inter-connectivity/inter-operability with other modes of
transport, hinterland accessibility, as well as the extent to which the port
authorities plan for the smooth/cost-effective flow of cargoes through it by
taking into account transportation flow beyond the ports boundaries. The
relationship between the port authority/operator and the customers (liner
shipping companies) may also form the basis of input measures into port
performance. In addition, ports in the supply chain era apart from cargo
throughput may have other measures of performance, like for instance,
leanness, agility, time compression as well as the performance of other parties
in the supply chain.
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Transport geography
An emerging stream that merits further research is related to the broader
concept of transport geography and relates to the physical geography aspects in
the transportation flows and nodes. This area of transport geography deals with
issues of location and spatial distribution, the formation of transportation
corridors and distribution networks as well as creation and location of
distribution hubs. The topic has been reviewed and analysed by Ferrari et al
(2005) with particular reference to Southern European Ports. The authors argue
that the advent of inland distribution is a very important development in the
global transport system and the creation of a borderless market area in the EU,
led to the rationalisation of forms network and to the concentration of national
distribution centres in European Distribution Centres (EDCs). EDCs are defined
as transnational logistics platforms that seek to manage the distribution of
goods in a continent as a whole thanks to a hub and spoke structure. The paper
clearly indicates the significant change taking place in the context of
distribution centres in Europe and opens up a series of lines of enquiry. For
instance, research may be carried out into identifying the underlying reasons
and parameters influencing the evolution, creation and location of distribution
centres. Such parameters include direct port investment, the handling and
distribution of cargo by shipping lines and distributors or potential influences of
powerful manufacturers.
Another issue for further research is the extent to which ports can act as
collaborative intermodal hub networks where they can decrease logistics cost and
maintain logistics service levels by shifting consolidated flows to modes that are
better suited for handling large volumes (rail, road, inland/coastal shipping). The
situation will arise when product flows of different shippers can be consolidated
and shipped via the port/terminal instead of transporting unconsolidated
individual shipments with the consequent reliability and cost-efficiency draw-
backs due to frequency and size changes. The concept is described by
Groothedde et al (2005) and offers scope for further research from a number of
perspectives including operations research, spatial distribution and organisa-
tional perspectives where the focus would be integration in the supply chain.

Public policy and security

There are other areas of potential research in the context of integration of
maritime transport, logistics and global supply chains. A potential emerging
theme is that of public policy and its evolution in the context of vertical
integration of liner shipping companies in inland transport and logistics. One of
the most highly debated issues in maritime policy is the regulation of liner
shipping operations. The issue has received widespread attention on a global
scale for many years. The advent of maritime transport and the evolution of
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maritime logistics, as well as the concomitant vertical integration of liner

shipping companies into logistics and supply chain management has widened
the stakeholders in maritime and inland transportation each pursuing their own
interests and thus opening up new areas for debate and regulation. It follows
that this is an area where future research may assist in the debate and the
regulation of the markets to ensure efficiency, competitiveness and satisfaction
of stakeholders and customers.
Brooks and Button (2005) approach the issue of security and public policy
by discussing market structures in the context of achieving security in the
maritime industry and in particular liner shipping. Security issues are not just
important for higher security per se, but also because additional measures may
hinder the supply chain and adversely affect the effectiveness of supply chains
and ultimately global competitiveness. Brooks and Button (2005) contend that
the development of public policy pertaining to security is difficult in that there is
no single market, but rather a number of overlapping markets and no consensus
on the underlying structure of most of these markets. Barnes and Oloruntoba
(2005) suggest that the complexity of interaction between ports, maritime
operations and supply chains create vulnerabilities that require analyses that
extends beyond the structured requirements of security initiatives (eg the
International Ship and Port Security Code) and creates significant management
challenges. Wilson et al (2003) argued that burdensome customs and
regulatory/security measures may hinder port and maritime security supply
chain efficiencies, which in turn leads to a contraction in trade and overall
efficiency. Brooks and Button (2005) suggest that integrated structures within
liner shipping (eg cartels, consortia) have the potential to facilitate security
enforcement. As liner shipping companies become more integrated into
logistics, this may have implications for security in inland transportation.
Barnes and Oloruntoba (2005) highlight the need for enhanced crisis manage-
ment capabilities within ports as part of a standard management repertoire and
suggest a new classification scheme for mapping vulnerability within ports and
across supply networks. It follows that in terms of supply chain maritime
security, there is scope for further research into identifying structures and
measures for enhancing security as well as performance of the supply chain
from the implementation of such measures.

CONCLUSION

Obviously, there are other areas for further research in the context of maritime
logistics and this paper primarily aims to initiate systematic thinking into
maritime logistics research as opposed to exhaustively describe a research
framework. On the basis of the papers in this special issue however, and
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Maritime Logistics and Global Supply Chains
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previous attempts to investigate the integration between maritime transport and

logistics management, the paper provides an indication of how far the facets
have converged and what has been the recent work in the area as well as how
this work may be carried further.
The major implication emanating from this paper is that scope for further
research definitely exists, especially research that is empirical and includes
qualitative as well as quantitative approaches. It seems that as opposed to the
operations research (OR) perspective, in the organisational/economic perspec-
tive there is work to be done in empirically examining the variables and inter-
relationships purported to be at work in the maritime logistics context.
Indicative is the recent issue of Transportation Research E (volume 41, issue 6)
entitled Global Logistics, where the majority of the papers reported empirical
research largely focusing on the supply chain and adopting an OR perspective as
opposed to an economic or behavioural perspective. This is indicative of the
opportunities for research using the behavioural and economic perspectives in a
maritime logistics context.
As a general comment it must be stated that although there have been
numerous conceptualisations and descriptions of developments in the area of
maritime logistics, those have not been met with at least a proportionately equal
volume of empirical investigations. Without a doubt conceptual papers and
anecdotal evidence are valuable, especially at the early stages of concept
development, however, the time has matured for hard core empirical
investigations that may include case studies as well as quantitative studies.
Researchers must move on towards defining key variables and seeking their
valid and reliable quantification to enable accurate examination of inter-
relationships. It is only then that theory can be built and the implications to
policy makers and managers would be effective.

Acknowledgements
I thank the referees of this special issue of MEL as well as those of the
International Association of Maritime Economists Conference 2005. For the
specific papers they include:
Alfred Baird, Napier University
Mary Brooks, Dalhousie University
Kevin Cullinane, University of Newcastle-upon-Tyne
Peter de Langen, Erasmus University Rotterdam
Sophia Everett, University of Melbourne
Trevor Heaver, University of British Columbia
Sashi Kumar, Maine Maritime Academy
Photis M Panayides, Cyprus International Institute of Management
Ross Robinson, University of Melbourne
Eddy Van de Voorde, University of Antwerp
Teng-fei Wang, University of Plymouth

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