African Journal of Business Management
Subscribe to AJBM
Full Name*
Email Address*

Article Number - C1180A762199


Vol.10(23), pp. 576-584 , December 2016
DOI: 10.5897/AJBM2016.8173
ISSN: 1993-8233



Full Length Research Paper

Selection of ocean container carriers: One country's perspective



Peter Dzakah Fanam*
  • Peter Dzakah Fanam*
  • Department of Maritime and Logistics Management, Australian Maritime College, Maritime Way, Launceston, Australia.
  • Google Scholar
Hong-Oanh Nguyen
  • Hong-Oanh Nguyen
  • Department of Maritime and Logistics Management, Australian Maritime College, Maritime Way, Launceston, Australia.
  • Google Scholar
Stephen Cahoon
  • Stephen Cahoon
  • Department of Maritime and Logistics Management, Australian Maritime College, Maritime Way, Launceston, Australia.
  • Google Scholar







 Received: 16 August 2016  Accepted: 14 November 2016  Published: 14 December 2016

Copyright © 2016 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


The objective of this study is to identify the most influential factors that affect choice of ocean container carrier by freight forwarders. It identifies the most influential factors considered by them when selecting ocean container carriers by analysing data collected from a survey of 105 freight forwarding organisations in Ghana. Exploratory factor analysis is used to identify the underlying factors which influence the selection of carrier. The findings of the study indicate that service quality, document accuracy, freight rates, environmental issues, schedule reliability and quick handling are the most influential factors that guide freight forwarders when purchasing liner shipping service. This study provides a better understanding of these influential factors from the perspective of the freight forwarders themselves. The findings are important to ocean container carriers since they can enable liner shipping companies to channel resources appropriately in response to factors which are identified as determining freight forwarder carrier selection.

Key word: Freight forwarders, ocean container carriers, carrier selection factors.

Armstrong JS, Overton TS (1977). Estimating nonresponse bias in mail surveys. J. Market. Res. 14(3):396-402.
Crossref

 

Banomyong R, Supatn N (2011). Selecting logistics providers in Thailand: a shippers' perspective. Eur. J. Market. 45(3): 419-437.
Crossref

 

Ben-Akiva M, Bolduc D, Park JQ (2013). Discrete choice analysis of shippers' preferences. In: M. Ben-Akiva, H. Meersman, & E. Van de Voorde (Eds.), Freight Transport Modelling, First Edition ed.: 121-141. UK: Emerald Group Publishing Limited.

 

Brooks MR (1983). Determinants of shipper's choice of container carrier: a study of Eastern Canadian Exporters. University of Wales Institute of Science Technology.

 

Brooks MR (1985). An alternative theoretical approach to the evaluation of liner shipping Part II. Choice criteria. Maritime Policy Manage. 12(2):145-155.
Crossref

 

Brooks MR (1990). Ocean carrier selection criteria in a new environment. Logistics Transport. Rev. 26(4):339-355.

 

Brooks MR (1995). Understanding the ocean container market a seven country study. J. History Econ. Thought. 22(1): 39-49.
Crossref

 

Chung CC, Chiang CH (2011). The critical factors: An evaluation of schedule reliability in liner shipping. Int. J. Oper. Res. 8(4):3-9.

 

Chung CC, Chung YS, Tai AN (2011). An evaluation of key service attributes of ocean container carriers from the ocean freight forwarder's perspective. J.East. Asia Soc.Transport. Stud. 9(1): 605-620.

 

Costello AB, Osborne JW (2005). Best practices in exploratory factor analysis: Four recommendations for getting the most from your analysis. Practical Assessment Research Evaluation. 10(7):1-9.

 

Fanam PD, Nguyen HO, Cahoon S (2015). Analysis of liner operators' competitiveness: Methodological issues and framework. Paper presented at the IAME 2015 conference, Malaysia.

 

Fanam PD, Nguyen HO, Cahoon S (2016). An empirical analysis of the influential factors affecting ocean carriers competitiveness: Freight forwarders' perspective. Paper presented at the International Association of Maritime Economists, Hamburg, Germany.

 

Fransoo JC, Lee CY (2013). The critical role of ocean container transport in global supply chain performance. Prod. Oper. Manage. 22(2):253-268.
Crossref

 

Frémont A (2009). Shipping lines and logistics. Transport Rev. 29(4):537-554.
Crossref

 

Gailus S, Jahn C (2013). Ocean container carrier selection in north western Europe-qualitative empirical research towards a discrete choice model. In T. Blecker, W. Kersten, & C. M. Ringle (Eds.), Pioneering Solutions in Supply Chain Performance Management: Lohmar: EUL Verlag. pp.69-88.

 

Gibson BJ, Rutner SM, Keller SB (2002). Shipper-carrier partnership issues, rankings and satisfaction. Int. J. Phys. Distrib. Logistics Manage. 32(8):669-681.
Crossref

 

Hsu WKK, Yu HF, Huang SHS (2015). Evaluating the service requirements of dedicated container terminals: A revised IPA model with fuzzy AHP. Maritime Policy Manage. 42(8):789-805.
Crossref

 

Kannan V, Bose S, Kannan N (2011). An evaluation of ocean container carrier selection criteria: an Indian shipper's perspective. Manage. Res. Rev. 34(7):754-772.
Crossref

 

Kent JL, Parker RS (1999). International containership carrier selection criteria: Shippers/carriers differences. Int. J. Phys. Distrib. Logistics Manage. 29(6):398-408.
Crossref

 

Lai KH, Cheng T (2004). A study of the freight forwarding industry in Hong Kong. Int. J. Logistics Res. Appl. 7(2):71-84.
Crossref

 

Lam JSL, van de Voorde E (2011). Scenario analysis for supply chain integration in container shipping. Maritime Pol. Manage. 38(7):705-725.
Crossref

 

Lam JSL, Yap WY (2011). Container port competition and complementarity in supply chain systems: Evidence from the Pearl River Delta. Maritime Econ. Logistics 13(2):102-120.
Crossref

 

Larson PD, Gammelgaard B (2001). Logistics in Denmark: A survey of the industry. Int. J. Logistics 4(2):191-206.
Crossref

 

Lin YK, Yeh CT (2013). Determine the optimal carrier selection for a logistics network based on multi-commodity reliability criterion. Int. J. Systems Sci. 44(5):949-965.
Crossref

 

Lu CS (2003). An evaluation of service attributes in a partnering relationship between maritime firms and shippers in Taiwan. Transport. J. 42(5):5-16.

 

Lu CS (2007). Evaluating key resources and capabilities for liner shipping services. Transport Rev. 27(3):285-310.
Crossref

 

Lun YV, Browne M (2009). Fleet mix in container shipping operations. Int. J. Shipping Transp. Logistics, 1(2):103-118.
Crossref

 

Luo M (2013). Emission reduction in international shipping the hidden side effects. Maritime Policy Manage. 40(7):694-708.
Crossref

 

Maloni M, Paul JA, Gligor DM (2013). Slow steaming impacts on ocean carriers and shippers. Maritime Econ. Logistics 15(2):151-171.
Crossref

 

Mohammaditabar D, Teimoury E (2008). Integrated freight transportation carrier selection and network flow assignment: Methodology and case study. J. Appl. Sci. 8(17):2928-2938.
Crossref

 

Murphy PR, Daley JM (1995). International freight forwarders: Current activities and operational issues. Int. J. Purchasing Mater. Manage. 31(2):21-27.
Crossref

 

Nir AS, Lin K, Liang GS (2003). Port choice behaviour from the perspective of the shipper. Maritime Pol. Manage. 30(2):165-173.
Crossref

 

Notteboom TE (2006a). Strategic challenges to container ports in a changing market environment. Res. Transport. Econ. 17(1):29-52.
Crossref

 

Notteboom TE (2006b). The time factor in liner shipping services. Maritime Econ. Logistics 8(1):19-39.
Crossref

 

Premeaux SR (2010). Motor carriers' and shippers' perception of the carrier choice decision. J. Transport. Res. Forum, 46(3):5-12.

 

Saldanha JP, Tyworth JE, Swan PF, Russell DM (2009). Cutting logistics costs with ocean carrier selection. J. Bus. Logistics 30(2):175-195.
Crossref

 

Salleh N, Riahi R, Yang Z, Wang J (2014). A proposed fuzzy Bayesian belief network model for evaluating the knowledge management capability of a liner shipping operator. Paper presented at the International Conference on Enterprise Systems, Accounting and Logistics (11th ICESAL), Greece.

 

Setamanit SO, Pipatwattana A (2015). Criteria for ocean freight carrier selection: A perspective of Japanese automotive company in Thailand. ASBBS E-Journal. 11(1):89-96.

 

Shang KC, Lu CS (2012). Customer relationship management and firm performance: An empirical study of freight forwarder services. J. Marine Sci.Technol. 20(1):64-72.

 

Tang LC, Low JM, Lam SW (2011). Understanding port choice behavior a network perspective. Netw. Spat. Econ. 11(1):65-82.
Crossref

 

Tongzon JL, Sawant L (2007). Port choice in a competitive environment: From the shipping lines' perspective. Appl. Econ. 39(4):477-492.
Crossref

 

Tovar B, Hernández R, Rodríguez-Déniz H (2015). Container port competitiveness and connectivity: The Canary Islands main ports case. Transport Pol. 38(1):40-51.
Crossref

 

van den Berg R, De Langen PW (2014). Assessing the intermodal value proposition of shipping lines: Attitudes of shippers and forwarders. Maritime Econ. Logistics, 17(1):1-20.

 

Vernimmen B, Dullaert W, Engelen S (2007). Schedule unreliability in liner shipping: Origins and consequences for the hinterland supply chain. Maritime Econ. Logistics 9(3):193-213.
Crossref

 

Voss MD, Page Jr, TJ, Keller SB, Ozment J (2006). Determining important carrier attributes: A fresh perspective using the theory of reasoned action. Transport. J. 45(3):7-19.

 

Wen CH, Huang JY (2007). A discrete choice model of ocean carrier choice. J. East. Asia Soc. Transportat. Stud. 7(1):795-807.

 

Wen CH, Lin WW (2015). Customer segmentation of freight forwarders and impacts on the competitive positioning of ocean carriers in the Taiwan–southern China trade lane. Maritime Policy Manage. 43(4):420-435.
Crossref

 

Wu HJ, Dunn SC (1995). Environmentally responsible logistics systems. Int. J. Phys. Distrib. Logistics Manage. 25(2):20-38.
Crossref

 

Yang CC (2012). Assessing the moderating effect of innovation capability on the relationship between logistics service capability and firm performance for ocean freight forwarders. Int. J. Logistics Res. Applic. 15(1):53-69.
Crossref

 

Yang CC, Tai HH, Chiu WH (2014). Factors influencing container carriers' use of coastal shipping. Maritime Policy Manage. 41(2):192-208.
Crossref

 

Yong AG, Pearce S (2013). A beginner's guide to factor analysis: Focusing on exploratory factor analysis. Tutorials in Quantitative Methods Psychol. 9(2):79-94.
Crossref

 

Yuen KF, Thai VV, Dahlgaard-Park SM (2015). Service quality and customer satisfaction in liner shipping. Int. J. Qual. Serv. Sci. 7(2/3):1-16.
Crossref

 

Zhang A, Lam JSL (2014). Impacts of schedule reliability and sailing frequency on the liner shipping and port industry. Transportation J. 53(2):235-253.
Crossref

 

Zsidisin GA, Voss MD, Schlosser M (2007). Shipper-carrier relationships and their effect on carrier performance. Transportation J. 46(2):5-18.

 


APA Fanam, P. D., Nguyen, H., & Cahoon, S. (2016). Selection of ocean container carriers: One country's perspective. African Journal of Business Management, 10(23), 576-584.
Chicago Peter Dzakah Fanam, Hong-Oanh Nguyen and Stephen Cahoon. "Selection of ocean container carriers: One country's perspective." African Journal of Business Management 10, no. 23 (2016): 576-584.
MLA Peter Dzakah Fanam, Hong-Oanh Nguyen and Stephen Cahoon. "Selection of ocean container carriers: One country's perspective." African Journal of Business Management 10.23 (2016): 576-584.
   
DOI 10.5897/AJBM2016.8173
URL http://academicjournals.org/journal/AJBM/article-abstract/C1180A762199

Subscription Form