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Posted: February 28th, 2022

Importance of Logistics management in maritime industry

Importance of Logistics management in maritime industry
Transportation and Logistic Management in the Maritime Industry
The importance of logistics management in the maritime industry cannot be overstated.

International trade is facilitated primarily through the use of the maritime transportation industry, which accounts for the majority of all cargo handled through seaports worldwide. One of the most pressing issues facing this industry is the efficient management of logistics, particularly of containers, so that transportation can be made more cost-effective while also improving the performance of shipping companies (Ismail, 2009).

The most recent trend is the outsourcing of logistics to logistics service providers (LSPs) or third-party logistics (3PL) service companies, which assist organisations in ensuring that their logistics function is managed efficiently and effectively (Lun, Lai & Cheng, 2010). To gather data for this particular study, an analysis of ten research publications is carried out in order for the information to be included in the study.

The ten articles were evaluated in detail.

Authors’ last names

The research’ primary focus and scope

Methods of Investigation



Bourlakis and Melewar are two of the most talented musicians in the world (2011)

The purpose of this study is to introduce the concept of marketing perspectives for the purpose of improving the performance of logistics service providers. There must be a general introduction to the notion of outsourcing, with a particular emphasis on logistics outsourcing, which is associated with 3PL (third-party logistics) companies.

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It is a conceptual article that is based on an analysis of relevant literature, as well as results and discussion of those findings.

This topic requires further investigation in order to determine whether or not outsourcing is a viable option. It even serves to demonstrate the usefulness of the current body of literature on the subject.

To evaluate the effectiveness of the recommendations stated in the conceptual paper, additional empirical testing should be conducted on a larger sample size.

Cariou and Wolff are two of the most well-known names in the world of literature (2012)

Investigating the expansion of the trend of outsourcing the vessel management function in the maritime industry to organisations that are in charge of ship management.

There were 39,925 vessels in the sample, which belonged to 4.049 different ship owners, according to the study’s findings. Each of them had at least two fleets for the purposes of operating. The influence of the owner on the final decision was the most important aspect investigated. An analysis method called mixed logit regression was used to determine the influence of vessel characteristics on the outsourcing process.

The key finding of the study was that the size of the company, evaluated in terms of the number of vessels and the types of vessels, had an impact on the likelihood of the company deciding to outsource.

Other aspects, such as the information accessible from the owners, the differentiation between outsourcing businesses such as 3PL and shipping management organisations, and the range of solutions available on the market, were not taken into consideration in the article.

Chen is a chinese proverbial narrator (2008)

The emphasis is on developing and recommending a methodology for evaluating the performance of logistics service providers that is both customer-oriented and objective-based (LSPs).

A customer-oriented and objective-based model of LSP is developed on the basis of conceptual considerations. The investigation is conducted on the basis of its implications for a Taiwanese manufacturing company.

Because the ratings were accurate, effective, and sensitive, the model produced favourable results and was more effective than past models in comparison to previous models.

It has only been tried in an industrial organisation. It is necessary to conduct further testing in other types of organisations as well.

Grawe Grawe Grawe Grawe Grawe (2009)

The study’s goal is to develop a model for logistics innovation on the basis of existing literature on container logistics, as well as to identify areas for further investigation.

A review of articles from journals such as the International Journal of Logistics Management, the Journal of Business Logistics, the International Journal of Physical Logistics Management, the International Journal of Physical Distribution and Logistics Management, and Transportation Research was conducted in order to extract relevant information.

Only a little amount of study is being done on innovation in container logistics at this time. The pre-requisites and results for this area have been established, but only a limited amount of empirical testing has been conducted.

Only the most prestigious journals are included in the survey. Validation of the findings necessitates their application in the real world.

Kroes and Ghosh are two of the most well-known names in the world of fashion (2010)

The study’s primary goal is to comprehend the significance of aligning outsourcing decisions with a company’s overall strategy in order to maximise the efficacy of the organization’s performance.

The study comprised a sample of manufacturing companies that were based in the United States. To collect data, a survey was conducted first, and then structural equation modelling and cluster analysis were used to analyse the results.

It is dependent on five variables to determine a company’s competitiveness: cost, flexibility, quality, timeliness, and innovativeness. For the company strategy to be properly aligned, it is critical to consider all of these considerations.

There have been no studies conducted on the strategic alignment between a company’s competitive priorities and its outsourcing decisions.

Both Lau and Zhang have a lot of experience with computers (2006)

Identifying the elements that are driving outsourcing initiatives in China and the difficulties that corporations are encountering when compared to Western countries is the goal of this study.

By conducting in-depth interviews with six different companies in China, the case study method was employed to gather information.

When it comes to underlining the necessity of outsourcing, the economic component is the most important factor, followed by strategic considerations and environmental concerns. Poor management, a scarcity of high-quality service providers, a lack of adequate infrastructure, and a lack of post-outsourcing monitoring are the most significant challenges faced by Chinese enterprises.

There is a scarcity of performance measurement methods that may be applied to the evaluation of the success of logistics outsourcing services.

Sanches-Pedregosa, Gonalez-Zamora, and Machuca are three of the most talented players in the world (2011)

There are several aspects of the study that are particularly noteworthy. The primary focus is on the evaluation of logistics outsourcing in the maritime transport industry.

In order to evaluate the research papers published in the last fifteen years that were relevant to the topic, an analysis of the research papers published in the last fifteen years relevant to the topic was conducted and performance measures were extracted.

Despite the abundance of theory-based models and indicators available for performance measurement, there is a dearth of evidence of their application in practise.

The concepts and frameworks are present in the literature but their implementations have not been examined in the logistics business.

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Sanches-Pedregosa, Gonalez-Zamora, and Machuca are three of the most talented players in the world (2010)

The primary focus of the research is on determining the significance and effectiveness of the decision to outsource container logistics.

The examination of past research articles related to this topic was carried out in order to determine the essential features and the implications of these factors for the success of the organisation.

The selection of a company is based on the company’s business requirements as well as the wants of its consumers. The success of outsourcing is heavily contingent on its contribution to the improvement in the performance of the company.

When it comes to evaluating the efficacy of outsourcing initiatives, there is a lack of an appropriate conceptual framework.

Thai is a language spoken in Thailand (2008)

The primary goal of this research is to build a new conceptual model for expanding service quality knowledge so that it can be defined and managed in connection to container transportation in the maritime industry.

Approximately 197 freight forwarders, port operators, and shipping corporations were included in this study for the purpose of data collecting. More than 120 questionnaires were completed via postal survey, and 25 in-depth interviews were done as part of the study. The data was analysed using the SPSS statistical software and theme analysis.

The service quality is comprised of six elements, which are outcomes, process, image, resources, social responsibility, and management. Outcomes are the most important dimension. It was discovered that customer happiness is the most important area of concentration, and that this has improved the overall quality of the logistics organisation.

It is the first step of a comprehensive topic of research, and it was limited to only service providers in its scope.

Yang and Wei are a couple from China (2013)

The empirical analysis of the key dimensions of security management in the shipping industry of Taiwan, namely in container logistics, as well as the assessment of the impact of these elements on security performance is the primary emphasis of this work.

It was decided to use the questionnaire method for this investigation. The exploratory factor analysis was carried out in order to identify the dimensions that are critical in the shipping industry for container transportation. In parallel, a multiple-regression analysis was carried out to determine the effectiveness of security management in terms of the performance of the security system.

The four primary components of security management identified were the management of cargo and facilities, the prevention of accidents, the management of partner relationships, and the management of information technology. Information technology management and partner relationship management both had a substantial impact on the operation of the safety and customs clearing departments.

Essentially, it is concerned with security management and the impact that it has on security performance. Further research can indicate the obstacles and motivators that must be overcome in order to ensure compliance with supply chain security.

Results of the investigations and their implications for the business research topic

The quality and efficiency of container logistics, as well as the effectiveness with which all of its five aspects are managed, are critical factors in determining the significance of container logistics. According to the findings of many articles and studies published in research journals, it is clear that there are a variety of models and frameworks available that can be used to improve container logistics (Blecker, Jahn & Kersten, 2011). This aspect, however, must be appropriately aligned with the business operations in order to ensure that the overall corporate strategy is effective and yields the required results.

An explanation of the significance of logistics in the maritime industry

Because containers are the primary components used in the transportation of raw materials, finished goods, and cargoes, only those businesses will be able to survive in today’s challenging business environment if they implement a well-integrated and efficiently coordinated framework for container logistical operations (Cariou & Wolff, 2012). Initially, enterprises relied on shipping companies with expertise in maritime transportation, but the recent trend is to outsource container logistics to shipping companies or third-party logistics (3PL) providers who assist their clients in reducing expenses.

In recent years, the technological area has evolved dramatically, and the most up-to-date methods for efficient management of commercial operations have been developed (Theofanis & Boile, 2009). A comprehensive system in place, which takes into account all critical factors required for improving the logistical framework of their clients, is one of the most successful solutions provided by 3PLs and logistics service providers (LSPs). These specialised companies make certain that their customers receive high-quality services in order for them to be able to regulate their expenses, apply flexible production patterns, take advantage of logistics innovation, and be freed of their concerns about inventory warehousing (Lau & Zhang, 2006).

Container logistics has evolved throughout time.

As manufacturing organisations increasingly rely on logistics outsourcing to meet their needs, they are on the lookout for suppliers that can assist them in providing high-quality products and services at competitive pricing. This is the primary goal of these outsourced service providers: to ensure that organisations are spared of the problems associated with inventory and container security (Brown & Wilson, 2005; Kreowski, Scholz-Reiter, & Thoben, 2011). The majority of enterprises are concerned about the security management of the containers since they want to be able to gain access to the containers in a simple and convenient manner (Rushton, Croucher & Baker, 2011).

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Clients expect a seamless path to access their containers, according to Yang and Wei (2013), and hence the performance of container logistics is judged in terms of security management. Firms prioritise service excellence over all other considerations, including security measures and compliance. Only those shipping firms who are able to provide prompt and effective service to their consumers will be able to develop their customer base. According to the findings of Thai (2008)’s study, there are six important criteria that must be met in order for service quality to be considered mandatory in the maritime industry.

When the service quality is improved, businesses are able to save significant amounts of money, boost the turnover rate of their inventory, and make more effective use of their flexible system. On the other hand, the maritime industry is subject to a number of strict rules and regulations that have been implemented by the governments of different countries. Because the individual governments are attempting to provide assistance to their local firms rather than foreign companies, these regulations have proven to make sea transportation a costly alternative.

For example, the EU government has constructed an outstanding intermodal infrastructure for its local manufacturing enterprises, which enables them to take advantage of chances to increase output within their own borders (Thore & Ionanne, 2010). However, companies must weigh the pros and cons of various market alternatives, such as whether to outsource the logistics function to third-party service providers or whether to upgrade the existing logistics management system.

Areas of particular importance for the investigation

In the majority of container and general logistics studies, it is clear that the firms must ensure that their logistics framework is developed in accordance with the nature of their business. When evaluating how important an efficient logistic framework is for the organization’s performance enhancement, it is necessary for the organisation to consider the importance of an efficient logistic framework for the organization’s ability to make effective use of the opportunities that are available in the maritime transport industry.

One significant area of concern for any organisation is the performance assessment criteria; there is dearth of literature about the indicators that can be applied for analysing the effectiveness of the container logistics (Grawe, 2009; Thai, 2008). (Grawe, 2009; Thai, 2008). Despite the fact that Chen (2008) attempted to develop a model for performance measurement, it must be implemented and further modified in order to ensure that the entire business strategy is backed by data (Sanches-Pedregosa, Gonalez-Zamora & Machuca, 2011; ).

In addition to service quality and cost-effectiveness, there are a number of other considerations that must be taken into consideration while evaluating container logistic management (Polansky & Waller, 2011). Each organisation should evaluate its level of requirement for logistics efficiency, the desired results that must be achieved, ensure proper alignment between outsourcing logistics and the organization’s overall business strategy, and establish a performance criterion for the evaluation of the container logistics effectiveness prior to outsourcing logistics services.

Justification for the investigation

The conclusions of the research emphasise the need of comprehending the significance of logistics strategy, which must be supplemented with the firm’s specific objectives. Clear understanding of the essential variables that will be used to ensure cost-effectiveness, development of a well-integrated IT network architecture, efficient transportation and warehousing facilities, and enhancement of the total logistics required for container shipping are required (Kroes a& Ghosh, 2010).

Because the primary focus of the study is on increasing the efficiency of container logistics and building a performance measurement framework for evaluating its efficacy, the variable related to service quality and outsourcing will ensure that container logistics is conducted efficiently. This study will examine in depth all critical elements affecting corporate operations, including network architecture, cost, inventory management, transportation, warehousing, and the ability to adapt to changing conditions. It will ensure that the study objectives of the paper are met, and it will make a significant addition to the field of logistics research as a whole.


Analysis of the body of literature on the maritime transport sector was carried out in depth to help researchers better grasp how the container logistics industry operates. It also shed light on the variables that must be severely examined in order to ensure that containers are managed efficiently and that clients receive outstanding service quality. With the help of these studies, it will be possible to construct a performance monitoring model for evaluating the effectiveness of the container logistics system. As a result, the conclusions of the study will provide enough and valuable information to businesses who are experiencing difficulties as a result of logistics outsourcing.


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