Liner Shipping strategies for supply chain management

It is recognised in the literature that Supply Chain Management (SCM) practices play key roles in the businesses of a growing number of manufacturer and retailers. SCM is having important effects on the nature and range of services needed from carriers and on the relationships among carriers and logistics service providers. However, little attention has been given to the strategies of shipping lines as they respond to the evolution of SCM practices. A few shipping lines have well-established logistics services, many are new to the business and some remain focused on shipping services. A blurring of the roles among lines, freight forwarders and other logistics service providers is occurring. The objective of this paper is to examine how liner shipping companies are re-engineering their services to meet the changing needs of shippers. The particular focus is on the strategies of lines to extend the range of services beyond port-to-port shipping services. After discussing the advantages and disadvantages of shipping lines pursuing strategies to achieve greater vertical integration, the paper identifies the strategies of various lines on the basis of a review of the current literature and interviews and communications with managers in shipping companies and freight forwarding. Implications for further research are outlined.