Liner maritime

transport
Learning contents 2

 Concept and characteristics of liner shipping

 Development of liner shipping and types of
cooperation
 Types of liner shipping services and changes in the
environment
 Characteristics and types of container
transportation
 Forms and procedures for transportation of
containers
 Definition and characteristics of multimodal
transportation
 Functions of intermodal freight forwarders
The concept of liner 3

shipping
 What is liner shipping?
- A form of providing transportation services on a regular
basis by applying a fixed schedule and a pre-announced
freight tariff on a fixed route
- As container transportation becomes more common,
liner ships are divided into general cargo ships and
container ships.
- Today, most regular cargo is being converted to
container transport.
Characteristics of liner 4

shipping
 Repeated operation: Regular and repeated operation to a
given port according to a set schedule
 common carrier: Transporting an unspecified number of
cargoes
 Standard contract: A standardized bill of lading serves as a
contract of carriage.
 High-value cargo: High-value cargo uses liner shipping, and
freight rates are also higher than tramp shipping.
 Large organization: The size of the headquarters and branches
is much larger than that of the tramp
 Capital-intensive industry: A high-risk business that requires a
large amount of capital and requires many ships and a large
organizational scale.
 Development of liner 5

shipping industry

Division Before 1970s 1970s 1980s 1990s to present

The era of Container

conventional Introduction to transportation Era of service
era
cargo container completion differentiation
transportation transportation period
Conventional Container Container Logistics
main
liner transportation door-to-door additional
services
transportation between ports service services
Types of cooperation in 6

liner shipping
 Liner Maritime Alliance ( Shipping
Conference)
 Slot Chart
 Codeshare Consortium
 Joint Benz
 Pooling Agreement
 Strategic Alliance
 Mergers and Acquisitions
maritime alliance( Shipping 7
Conference)
 The oldest form of cooperation
 The introduction of steamships in the 1800s led to an
oversupply of ships.
 Falling freight rates due to excessive competition
 Formed a maritime alliance to maintain stable freight rates,
provide regular services, and increase the number of
service operations.
Slot Charter (Space 8

Charter)
 Widely used among container shipping
companies
 Each contracting party maintains its commercial
name
 The shipping company improves the loading rate
of its own vessels
 Minimizing investment in ships
 Further expansion of service areas
 Effect of increasing the frequency of service
operations
Pooling Agreement/Pooling 9
System
 Increase market share and distribute profits equally
to pooling Agreement member shipping
companies
 Cargo Pool: Each member company has a set
number of operation or a set amount of cargo
transportation.

 Financial Pool: A certain percentage of the total

fare income earned by all member companies is
allocated to each member company.
Joint Service 10

 A form of cooperation with partner carriers to provide

services on new routes or to provide independent navigation
services.
 Each shipping company in a code-sharing operation routes
ships on the same route according to the code-sharing
schedule and exchanges slots with each other.
 Sometimes, some shipping companies provide code-sharing
services through slot charts without wiring their ships.
Consortium 11

 With the development of container transportation in the

1960s, shipping companies formed consortiums on major
liner shipping routes.

 Investment cost reduction and risk reduction effect due to

introduction of container ships.

 Meet demand for operation frequency and increased

service area.
Joint Venture 12

 The most binding form of cooperation in terms of being

an independent and legally autonomous enterprise

 Similar to the background of the creation of the

consortium, many shipping joint ventures have been
established between liner companies in the era of
containerization.

 Reduce the burden of investing in container ships, learn

navigation skills, and enter new markets
Global Alliance 13

 Key features of global partnerships between shipping

companies
- Provide frequent services on a global scale
- Not only alliance members but also non-aligned
members join the alliance.
- Enlargement of vessels owned by affiliated shipping
companies and introduction of vessels of various sizes
- Increase utilization of overall assets and reduce
operating costs through joint operation of ships, slot
sharing, etc.
- Partner shipping companies are in competition with
each other in shipping sales and marketing.
Mergers and acquisitions 14

(M&A) of liner companies

 Strengthening competitiveness
 Realizing economies of scale
 cut down the money
 Pioneering new markets
 Building a global network
 Easy to secure a vessel
 Increase market share
Types of Global Liner 15
Shipping Services
1) Round –the- world service
A service in which a specific vessel travels around the world by
sailing in one direction.
2) Pendulum service
A navigation service that connects routes by operating
different ships on different routes around a specific area and
repeatedly operating between the axis and the starting
3) Central port/peripheral port services
A service in which large container ships only call at ports
located on trunk routes, and cargo is transported through a
feeder service using small vessels between domestic or nearby
foreign ports that are far from ports of call on trunk routes.
Environmental changes in 16
liner shipping services
Expansion of niche shipping services market Premium service cargo

자료: Stopford, 2000.

1. Please list the names of the world's 10
major container shipping companies and
their fleet ownership status.

2. Please write down the current status of

global shipping alliances.

3. please write downs the types of global

liner shipping services.