Analysis of factors considered by shipping lines in initiating new container liner services

Abstract

The global maritime transport sector is a vital component that acts a key role in facilitating international trade, ensuring the reliable and efficient transportation of cargo all over the world. The level of competition in this industry is extremely high, and shipping companies are always observing ways to improve their networks by either modifying existing networks or building new networks. To achieve this, shipping lines make strategic decisions about initiation of new container liner services. This research examines the key factors considered by shipping lines when launching these services, aiming to shed light on their decision- making process and recognize potential future trends in container liner shipping. Secondary data synthesis and expert interviews were done to identify the factors that shipping lines consider when initiating new container liner services. Then Analytical Hierarchical Process was used to evaluate the relative importance of those identified factors. Demand-side factors, supply-side factors and services specific factors were the main three criteria, and 13 sub criteria were categorized under these three. Data for the AHP analysis was gathered through a questionnaire survey with industry professionals and pairwise comparisons were done within all the main criteria as well as sub criteria using a 9-point semantic differential scale. Results show that demand-side factors are the most influential factors when initiating new container liner services and main two sub criteria are trade volume and growth, customer requirements. By understanding these priorities, stakeholders can develop services that are not only commercially successful but also minimize environmental impact, optimize resource allocation, and promote social responsibility within the industry.