RIRDC - Research Compendium 1993

Rural Industries
Research & Development Corporation

Research Compendium 1993 - 1994

Research Project

GLOBALISATION OF LINER SHIPPING

Objectives

To review the developments in hub/feeder liner shipping operations in the East and Southeast Asian regions.
To assess the likely impacts on Australia's foreign trade shipping and ports and the implications for Australia's rural exports.

Background

International liner shipping through the 1970s and 1980s came under significant cost pressures, and cost rationalisation has meant the emergence of new shipping networks and land transport arrangements. Particularly, container vessels now commonly hub on major ports and link inland destinations by rail and road.

These developments have significant implications for Australian export movements generally and for large volumes of high-value rural exports particularly. Will direct shipping services between Australia and Europe, for example, continue to be a dominant pattern? Or will there be a trend to hubbing on one of the major hubs? The project focused on these issues.

Research

Researchers carried out detailed analysis of container shipping operations to and from Australia. Computer analysis of ship movement data provided insight into the structure of present networks and assessment of liner shipping capacity and operations was made from a number of databases.

Outcomes

Four hypothetical scenarios were suggested:

a 'minimum change' scenario . Despite far-reaching changes in the Northern Hemisphere Australian exports continue to be handled by direct services;
'Feeder' scenario . The Asian feeder networks extend into Australian services with major trades handled via Asian hubs;
'Megacarrier' scenarios. One or more of the megacarriers links Australia into Round-the-World or Pendulum services; and
'Hybrid' scenario . In the short and medium term Australian trades are served by two or more types of service.

Currently, Australian liner shipping is in a state of flux. Feeder services are actually operating Fremantle-Singapore; Brisbane is focusing treaded volumes via Singapore and/or Hong Kong; trans-Pacific trades are increasingly hubbing on Singapore; but no megacarrier yet hubs on an Australian port and direct services continue.

Implications

Rural and other exporters can find significant new flexibilities for cargo routing in the 1990s and must be aware of the new opportunities afforded by intermodalism and hub-feeder operations.

RIRDC Project No: UWO-3A

RESEARCHER: A/Professor Ross Robinson

ORGANISATION: Centre for Transport Policy Analysis

University of Wollongong

Locked Bag 8812

SOUTH COAST MAIL CENTRE NSW 2521

PHONE: 042 21 3683

FAX: 042 26 4257

PUBLICATIONS:

Centre for Transport Policy Analysis, 1991, The Globalisation of Liner Shipping: Implication for Australia, Proceedings of a Seminar, August.