Journal Search Engine
Search Advanced Search Adode Reader(link)
Download PDF Export Citaion korean bibliography PMC previewer
ISSN : 2233-4165(Print)
ISSN : 2233-5382(Online)
Journal of Industrial Distribution & Business Vol.10 No.1 pp.19-27
DOI : http://dx.doi.org/10.13106/ijidb.2019.vol10.no1.19

Studies on Supply and Demand Paradox in Shipping Market

Jin-Hwan Kim**
** Professor, Dep't of International Trade, Korea National Open University. S.Korea. Tel: +82-2-3668-4682, E-mail: jhkimkp@knou.ac.kr
December 09, 2018. December 31, 2018. January 05, 2019.

Abstract

Purpose – The purpose of the paper is to examine disconnection between supply and demand shipping market, which means shipowner has determined to raise capacity in bust period.
Research design, data, and methodology – The research method to be applied is first to look into conceptual theory about shipping market, and then to study imbalance of supply and demand situations in shipping on crisis, and next, to analyses paradoxical aspects traced.
Results – Shipping market is a volatile and cyclic characteristics, and its situations have to be examined very carefully. Since financial crisis has broken up in 2008, it is natural to think that world trade volumes has reduced rapidly, which means demand for shipping service has fallen, and accordingly, tonnage should be stagnated as well. However, shipping companies have put capacity into market as unexpectedly. This is because of economy of scale and time lag. Here, this can be explained in terms of paradox that is proved in this paper.
Conclusions – From careful research in this paper, it is found that supply and demand are not always got along with market situations, in other words supply side could be working well, in spite of depression time of demand situations in world shipping markets.

JEL Classifications: D40, L90, L91, R40, R41.

초록


    Korea National Open University

    Figure

    Table

    Reference

    1. Biyik, C. A., & Tanyeri, M. (2018). Pricing Decisions in the Liner Shipping Industry: A Study on Artificial Neural Networks. Journal of Marketing and Marketing Research, 21, 125-150.
    2. Gouvernal, E., & Slack, B. (2012). Container Freight Rates and the Shaping of Global Economic Space. TRB 2012 Annual Meeting (Transportation Research Board Paper 12-0786), 1-15.
    3. Hoffmann, J. (2010). Shipping Out of the Economic Crisis. The Brown Journal of World Affairs, 16(2), 121-130.
    4. Immers, L. H., & Stada, J. E. (2007). Basics of Transport Economics, Course H 111 Verkeerskunde Basis. Faculty of Engineering. Department of Civil Engineering, Section Traffic and Infrastructure, 6-25.
    5. Jugović, A., Komadina, N., & Hadžić, A. P. (2015). Factors influencing the formation of freight rates on maritime shipping markets. Multidisciplinary Scientific Journal of Maritime Research, 29(2015), 23-29.
    6. Kalgora, B., & Christian, T. M. (2016). The Financial and Economic Crisis, Its Impacts on the Shipping Industry, Lessons to Learn: The Container-Ships Market Analysis. Open Journal of Social Sciences, 4, 38-44.
    7. Kalouptsidi, M. (2014). Time to Build and Fluctuations in Bulk Shipping. American Economic Review, 104(2), 564-608.
    8. Kang, H. W., & Kim, Y. M. (2017). Measuring the Efficiency of Maritime Transport Companies. Journal of Distribution Science, 15(11), 59-72.
    9. Laszlo, G. (2016). Maritime Transport is in Crisis. PAGEO, 1-2.
    10. Lun, Y. H. V., Lai, K. H., & Cheng, T. (2010). Chapter 2, Freight Rate Mechanism. Shipping and Logistics Management, 17-32.
    11. Stopford, M. (2003). Supply, Demand and Freight Rates. Maritime Economics (3rd ed., pp.113-149). Abingdon- on-Thames, England: Routledge.
    12. NPTEL (2018). Travel Demand Modeling, Transportation Planning, Transportation Engineering I (Web), Civil Engineering. National Programme on Technology Enhanced Learning (India) (pp.1-8).
    13. OECD (2017). Consequences of Oversupply and Overcapacity. Imbalances in the Shipbuilding Industry and Assessment of Policy Responses (pp.26-34).
    14. OECD/ITF (2015). Mega-ships and maritime transport. The Impact of Mega-ships (pp.21-31). International Transport Forum.
    15. Opitz, S., Seidel, H., & Szimayer, A. (2015). The Shipping Crisis Starting in 2008. Hamburg Financial Research Center (HFRC Working Paper Series, No.14), 2-7.
    16. Porter, M. E. (1980). Competitive Advantage, Creating and Sustaining Superior Performance. The Free Press, 1-35.
    17. Potluri, R. M., & Tejaswi, S. P. (2018). Challenges of Transport Sector in India: A Dynamic Perspective. Journal of Asian Finance, Economics and Business, 5(3), 95-102.
    18. Rodrigue, J. (2017). Transport Supply and Demand, Chapter 7, Transportation, Economy and Society. The Geography of Transport Systems (4th ed., pp.1-440), New York, NY: Routledge.
    19. UNCTAD (2017). Freight Rates and Maritime Transport Costs. Review of Maritime Transport, 43-59.
    20. Viatkina, T. (2014). Strategic Resource Initiative of Enterprise. East Asian Journal of Business Management, 4(4), 5-11.