Week 2: Shipping perspective

Question 1

Global Value Chains (GVC) + drivers

Answer 1

Each task is done where cost-to-value ratio is lowest, dispersed value chain, trade and transport
Drivers: coordination costs, transportation costs, import duties, production costs

Question 2

Actors in global supply chain

Answer 2

Distribution: transport / warehousing
Transactions: paperwork

Question 3

Carrier vs merchant haulage

Answer 3

Carrier: shipping line takes responsibility for inland transport
Merchant: freight forwarder

Question 4

Reasons for competition (supply chain actors)

Answer 4

Economies of scale
Horizontal integration (alliances/acquisitions)
Vertical integration (scope extension: developing/acquiring new capabilities)
New market entrants

Question 5

Strategies port operators

Answer 5

Financial assets
Managerial expertise
Gateway access
Leverage
Traffic capture
Global perspective

Question 6

Implications for ports (of vertical integration)

Answer 6

Larger call sizes lead to peak volumes, pressure on infrastructure, land side has to adopt to economies of scale on seaside
Disadvantage: volatility of cargo, “winner takes all”