TDEO - Maritime Business and Strategy

The financial performance of shipping companies is closely related to their chartering strategies. Shipowners assess the alternative contracting options that are available to them and choose the ones that can potentially maximise their financial performance. There are two main forms of shipping contracts: the voyage charter and the time charter, with the latter comprising short and medium/long-term charters. In theory, from a shipowners' point of view, spot contracting prevails when freight rates are high, while long-term time charters are preferred when a market decline is expected. However, in practice, the chartering practices in the shipping markets may differ from the ones traditionally expected. Specifically, there are shipowners who systematically display a preference towards a certain type of charter contract over another, regardless of market conditions, or they prefer a specific type of charter in specific segments of the market, i.e. for different types of commodities.
In this study we investigate some of the considerations that affect chartering practices and their potential impact on the company's profitability, using the principles of transaction costs theory.

The liquefied natural gas (LNG) shipping sector is crucial in the global energy supply chain, with Greek and Norwegian shipowners representing two of the most influential stakeholders. This research provides a comparative analysis of these LNG fleets, analyzing their characteristics, and shipowners' competitive positioning. We employ data from Clarkson's Shipping Intelligence Network and AXS Marine, to examine fleet composition, vessel age, orderbooks, classification societies, and flag selection. We measure market concentration with the N-firm Concentration Rate, the HHI, and the Gini Coefficient to assess the degree of competitiveness. Our results indicate that Greek owners tend to acquire larger LNG vessels, leveraging economies of scale for long-haul routes. Greek shipowners join the market when spot and short-term charter rates are low, capitalizing on cyclical market opportunities while the Norwegian maintain a steady fleet expansion strategy. Moreover, classification society and flag selection reflect different business strategies. The Greeks prefer open registries such as the Marshall Islands and Malta, while Norwegians favor national and European flags. The study's findings offer valuable insights into the structural dynamics of LNG shipping, informing investors, policymakers, and industry stakeholders navigating the evolving market landscape.

This research provides a comparative analysis of the business strategy in the LNG maritime sector. We employ cross sectional data from Clarkson's Shipping Intelligence Network and AXS Marine, to examine fleet composition, trading routes, classification societies, and flag selection. Our results indicate that Greek shipowners have more diversified fleet. There are few publicly listed companies and the available data about the fixtures corresponds to 58% of these companies' fleet. Most of these vessels are occupied under contracts with duration from 2 to 10 years. The majority of the fleet is occupied in the route from North America to Europe. Both Greeks and Norwegians employ the majority of their vessels in routes departing from North America. They also diversify their flag and Classification Society choice within the same route. The Greeks operate the 45% of their own fleet while the Norwegians the 34%.

This study explores the strategic decision-making processes of liner shipping companies regarding vessel chartering within and outside their alliances, utilizing game theory as the analytical framework. In the context of evolving market conditions and alliance structures, such as the dissolution of the 2M Alliance and the formation of new partnerships, this research aims to uncover the factors influencing chartering strategies among major players like Maersk, MSC, and Hapag-Lloyd. By developing game theoretical models, the study simulates cooperative and non-cooperative interactions, examining scenarios where companies choose between chartering from alliance members or non-members. The analysis considers the impact of market competition, charter rates, and external factors on strategic choices, providing insights into equilibrium outcomes and potential shifts in industry dynamics. Through case studies and scenario analysis, the research highlights the implications of alliance restructuring on ship chartering behaviours and offers policy recommendations for industry regulation and governance. This study contributes to a deeper understanding of the complex interplay between strategic alliances and chartering decisions in the liner shipping industry, paving the way for future research on digitalization and environmental regulations.

Container yards are fundamental elements of container terminal operations as they mainly act as a buffer between maritime and inland circulation systems. The research investigates the yard characteristics of a large global sample of more than 676 container terminals. Each terminal is categorized according to the yard stacking technology, which involves linear or block layouts. Results underline that the side-loaded RTGs account for 60% of all global container yards, mainly because they can be adapted to a wide range of terminal footprints. There are also significant regional variations, such as for Western European ports that rely more extensively on straddle carriers than the rest of the world.

This paper examines the key drivers, barriers, and implementation challenges of corporate sustainability strategies in the shipping sector, focusing on firm capacity-particularly financial limitations and weak green management practices-and their interaction with regulatory requirements. The study highlights the critical role of financial and managerial factors in shaping shipping companies' sustainability strategies and investment decisions. Using econometric techniques, including panel data models, difference-in-differences, and instrumental variable approaches, the study shows that financing constraints and inadequate green managerial capacity significantly lower firms' likelihood of investing in green ships, sustainable technologies, sustainability and ESG reports. However, a well-structured regulatory environment can mitigate these constraints by fostering financial stability and strengthening green management practices. The paper further explores the strategic options and best practices of shipping companies to enhance corporate sustainability by strengthening their capacity for green investment, improving operational efficiency, and aligning with evolving regulatory frameworks coming into force by IMO and regional-level initiatives.