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Analyzing the impact of container shipping service reliability on global supply chain pressure: An asymmetric approach

Year 2023, , 40 - 50, 27.12.2023
https://doi.org/10.51756/marlife.1345168

Abstract

Delays in international trade negatively affect the global world economically, commercially, and politically. We aimed to empirically determine the asymmetrical effect of the delays experienced in the arrival of container shipping vessels to their destinations on the pressure on the global supply chain by using Global Schedule Reliability (GSR) and Global Supply Chain Pressure Index (GSCPI). The dataset covers the period between January 2017 and April 2023 and consists of 76 observations. The results show that the effect of delays on the supply chain is asymmetrical, while the increase in delays increases the pressure, the decrease in delays has no effect. This shows that the effects of delays on the supply chain are sticky and take a long time to clear from the system. In this direction, policies are recommended to minimize the effect of delays on international trade.

References

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  • Alola, A. A., & Uzuner, G. (2021). Testing the asymmetric causal nexus of housing-oil prices and pandemic uncertainty in four major economies. Environmental Science and Pollution Research, 28(43), 60550-60556. https://doi.org/10.1007/s11356-021-14992-2
  • Andriantomanga, Z., Bolhuis, M., & Hakobyan, S. (2023). Global Supply Chain Disruptions: Challenges for Inflation and Monetary Policy in Sub-Saharan Africa. IMF Working Paper, 2023/039, http://doi.org/10.5089/9798400235528.001
  • Bai, X., Lam, J. S. L., & Jakher, A. (2021). Shipping sentiment and the dry bulk shipping freight market: New evidence from newspaper coverage. Transportation Research Part E: Logistics and Transportation Review, 155, 102490. https://doi.org/10.1016/j.tre.2021.102490
  • Bandyopadhyay, A., & Rajib, P. (2023). The asymmetric relationship between Baltic Dry Index and commodity spot prices: evidence from nonparametric causality-in-quantiles test. Mineral Economics, 36(2), 217-237. https://doi.org/10.1016/j.tre.2021.102490
  • Başer, S. Ö., & Açık, A. (2019). The effects of global economic growth on dry bulk freight rates. Journal of International Trade and Economic Researches, 3(1), 1-17. https://doi.org/10.30711/utead.507566
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  • Kim, I., Li, Q., & Noh, S. (2023). Global Supply Chain Pressure, Uncertainty, and Prices. http://doi.org/10.2139/ssrn.4467352
  • Koukaki, T., & Tei, A. (2020). The geography of commodity flows: the bulk sector. In: Wilmsmeier, G., and Monios, J. (eds.), Geographies of Maritime Transport. UK: Edward Elgar Publishing. pp. 71-86.
  • Lei, Q., & Bachmann, C. (2020). Assessing the role of port efficiency as a determinant of maritime transport costs: Evidence from Canada. Maritime Economics & Logistics, 22, 562-584. https://doi.org/10.1057/s41278-019-00135-5
  • Lewis, B. M., Erera, A. L., & White III, C. C. (2006). Impact of temporary seaport closures on freight supply chain costs. Transportation Research Record, 1963(1), 64-70. https://doi.org/10.1177/0361198106196300109
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Konteyner Taşımacılığı Hizmet Güvenilirliğinin Küresel Tedarik Zincirindeki Baskıya Olan Etkisinin Analiz Edilmesi: Asimetrik Bir Yaklaşım

Year 2023, , 40 - 50, 27.12.2023
https://doi.org/10.51756/marlife.1345168

Abstract

Uluslararası ticaretteki gecikmeler küresel dünyayı ekonomik, ticari ve politik olarak olumsuz etkilemektedir. Çalışmamızda Küresel Çizelge Güvenilirliği (KÇG) ve Küresel Tedarik Zinciri Baskı Endeksi (GSCPI) kullanarak konteyner gemilerinin varış noktalarına varmalarında yaşanan gecikmelerin küresel tedarik zinciri üzerindeki baskıya olan asimetrik etkisini ampirik olarak belirlemeyi amaçladık. Veri seti Ocak 2017 ile Nisan 2023 arasındaki dönemi kapsamaktadır ve 76 gözlemden oluşmaktadır. Sonuçlar, gecikmelerin tedarik zinciri üzerindeki etkisinin asimetrik olduğunu, gecikmelerdeki artışın baskıyı artırdığını, ancak gecikmelerdeki azalmanın ise etkisinin olmadığını göstermektedir. Bu sonuçlar, gecikmelerin tedarik zinciri üzerindeki etkilerinin yapışkan olduğunu ve sistemden temizlenmelerinin uzun zaman aldığını göstermektedir. Bu doğrultuda, gecikmelerin uluslararası ticaret üzerindeki etkisini en aza indirecek politikalar önerilmektedir.

References

  • Açık, A., & Başer, S. Ö. (2018). An analytical study on the likely causes of the minor bubbles in the Baltic dry index. International Journal of Logistics Economics and Globalisation, 7(4), 353-365. https://doi.org/10.1504/IJLEG.2018.097478
  • Adland, R., Cariou, P., & Wolff, F. C. (2016). The influence of charterers and owners on bulk shipping freight rates. Transportation Research Part E: Logistics and Transportation Review, 86, 69-82. https://doi.org/10.1016/j.tre.2015.11.014
  • Alizadeh, A. H., & Talley, W. K. (2011). Microeconomic determinants of dry bulk shipping freight rates and contract times. Transportation, 38, 561-579. https://doi.org/10.1007/s11116-010-9308-7
  • Alola, A. A., & Uzuner, G. (2021). Testing the asymmetric causal nexus of housing-oil prices and pandemic uncertainty in four major economies. Environmental Science and Pollution Research, 28(43), 60550-60556. https://doi.org/10.1007/s11356-021-14992-2
  • Andriantomanga, Z., Bolhuis, M., & Hakobyan, S. (2023). Global Supply Chain Disruptions: Challenges for Inflation and Monetary Policy in Sub-Saharan Africa. IMF Working Paper, 2023/039, http://doi.org/10.5089/9798400235528.001
  • Bai, X., Lam, J. S. L., & Jakher, A. (2021). Shipping sentiment and the dry bulk shipping freight market: New evidence from newspaper coverage. Transportation Research Part E: Logistics and Transportation Review, 155, 102490. https://doi.org/10.1016/j.tre.2021.102490
  • Bandyopadhyay, A., & Rajib, P. (2023). The asymmetric relationship between Baltic Dry Index and commodity spot prices: evidence from nonparametric causality-in-quantiles test. Mineral Economics, 36(2), 217-237. https://doi.org/10.1016/j.tre.2021.102490
  • Başer, S. Ö., & Açık, A. (2019). The effects of global economic growth on dry bulk freight rates. Journal of International Trade and Economic Researches, 3(1), 1-17. https://doi.org/10.30711/utead.507566
  • Beenstock, M., & Vergottis, A. (1989). An econometric model of the world tanker market. Journal of Transport Economics and Policy, 23(3), 263-280.
  • Benigno, G., di Giovanni, J., Groen, J. J. J., & Noble, A. I. (2022). A New Barometer of Global Supply Chain Pressures. Liberty Street Economics 20220104, Federal Reserve Bank of New York.
  • Branch, A. E., & Robarts, M. (2014). Branch’s Elements of Shipping, Ninth edition. New York: Routledge. Cariou, P., Ferrari, C., Parola, F., & Tei, A. (2019). Slow steaming in the maritime industry. In: Panayides, P. M. (Ed). The Routledge Handbook of Maritime Management. New York: Routledge. pp. 140-153.
  • Carrière-Swallow, Y., Deb, P., Furceri, D., Jiménez, D., & Ostry, J. D. (2023). Shipping costs and inflation. Journal of International Money and Finance, 130, 102771. https://doi.org/10.1016/j.jimonfin.2022.102771
  • Chi, J. (2016). Exchange rate and transport cost sensitivities of bilateral freight flows between the US and China. Transportation Research Part A: Policy and Practice, 89, 1-13. https://doi.org/10.1016/j.tra.2016.05.004
  • Clark, T., Foster, L., Sloan, L. & Bryman, A. (2021). Bryman's Social Research Methods. UK: Oxford University Press.
  • Dickey, D. A., & Fuller, W. A. (1981). Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root. Econometrica, 49(4), 1057–1072. https://doi.org/10.2307/1912517
  • Durmuş, A. N. (2023). The Intersection Between Law and Technology in Maritime Law. In: Noussia, K., Channon, M. (eds.), The Regulation of Automated and Autonomous Transport. Switzerland: Springer. pp. 107-166. https://doi.org/10.1007/978-3-031-32356-0_5
  • Enders, W. (2004). Applied Econometrics Time Series. New York: John Wiley.
  • Erdogan, S., Ahmed, M. Y., & Sarkodie, S. A. (2022). Analyzing asymmetric effects of cryptocurrency demand on environmental sustainability. Environmental Science and Pollution Research, 29, 31723–31733. https://doi.org/10.1007/s11356-021-17998-y
  • Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 37(3), 424-438. https://doi.org/10.2307/1912791
  • Hatemi-J, A. (2012). Asymmetric causality tests with an application. Empirical Economics, 43(1), 447-456. https://doi.org/10.1007/s00181-011-0484-x
  • Hoffer, E. (2015). The Context of Global Supply Chain Security, In: Thomas, A. R., Vaduva, S. (Eds.), Global Supply Chain Security: Emerging Topics in Research, Practice and Policy. New York: Springer. pp. 1-16. https://doi.org/10.1007/978-1-4939-2178-2_1
  • Hupka, Y. (2022). Leverage and the global supply chain. Finance Research Letters, 50, 103269. https://doi.org/10.1016/j.frl.2022.103269
  • Janic, M. (2022). Resilience, Robustness, and Vulnerability of Transport Systems: Analysis, Modelling, and Practice. Switzerland: Springer. https://doi.org/10.1007/978-3-031-13040-3_1
  • Karakitsos, E., & Varnavides, L. (2014). Maritime economics: A macroeconomic approach. Springer. https://doi.org/10.1057/9781137383419
  • Kavussanos, M. G. (2003). Time varying risks among segments of the tanker freight markets. Maritime Economics & Logistics, 5(3), 227-250. https://doi.org/10.1057/palgrave.mel.9100079
  • Kim, I., Li, Q., & Noh, S. (2023). Global Supply Chain Pressure, Uncertainty, and Prices. http://doi.org/10.2139/ssrn.4467352
  • Koukaki, T., & Tei, A. (2020). The geography of commodity flows: the bulk sector. In: Wilmsmeier, G., and Monios, J. (eds.), Geographies of Maritime Transport. UK: Edward Elgar Publishing. pp. 71-86.
  • Lei, Q., & Bachmann, C. (2020). Assessing the role of port efficiency as a determinant of maritime transport costs: Evidence from Canada. Maritime Economics & Logistics, 22, 562-584. https://doi.org/10.1057/s41278-019-00135-5
  • Lewis, B. M., Erera, A. L., & White III, C. C. (2006). Impact of temporary seaport closures on freight supply chain costs. Transportation Research Record, 1963(1), 64-70. https://doi.org/10.1177/0361198106196300109
  • Li, J., Wang, Y., Song, Y., & Su, C. W. (2023). How resistant is gold to stress? New evidence from global supply chain. Resources Policy, 85, 103960. https://doi.org/10.1016/j.resourpol.2023.103960
  • Liu, Z., & Nguyen, T. L. (2023). Global Supply Chain Pressures and US Inflation. FRBSF Economic Letter, 2023(14), 1-6.
  • Ljung, G. M., & Box, G. E. (1978). On a measure of lack of fit in time series models. Biometrika, 65(2), 297-303. https://doi.org/10.1093/biomet/65.2.297
  • Lun, Y. H. V., Lai, K-H., Cheng, T. C. E., Yang, D. (2023). Shipping and Logistics Management. Switzerland: Springer. https://doi.org/10.1007/978-3-031-26090-2
  • MacFadyen, A. J. (2015). Beliefs in Behavioral and Neoclassical Economics. In: Altman, M. (eds.), Handbook of Contemporary Behavioral Economics: Foundations and Developments. New York: Routledge. pp. 183-201.
  • Magirou, E. F., Psaraftis, H. N., & Bouritas, T. (2015). The economic speed of an oceangoing vessel in a dynamic setting. Transportation Research Part B: Methodological, 76, 48-67. https://doi.org/10.1016/j.trb.2015.03.001
  • Michail, N. A., Melas, K. D., & Cleanthous, L. (2022). The relationship between shipping freight rates and inflation in the Euro Area. International Economics, 172, 40-49. https://doi.org/10.1016/j.inteco.2022.08.004
  • New York FED, (2023). Global Supply Chain Pressure Index (GSCPI). Retrieved on August 15, 2023, from https://www.newyorkfed.org/research/policy/gscpi#/overview
  • OECD, (2023). Economic Outlook for Southeast Asia, China and India 2023: Reviving Tourism Post-Pandemic. Paris: OECD Publishing.
  • Phillips, P. C. B., & Perron, P. (1988). Testing for a Unit Root in Time Series Regression. Biometrika, 75(2), 335–346. https://doi.org/10.1093/biomet/75.2.335
  • Plomaritou, E., & Papadopoulos, A. (2018). Shipbroking and chartering practice. USA: Informa law from Routledge.
  • Porter, M. E. (1990). Competitive Advantage of Nations. New York: The Free Press.
  • Qin, M., Su, C. W., Umar, M., Lobonţ, O. R., & Manta, A. G. (2023a). Are climate and geopolitics the challenges to sustainable development? Novel evidence from the global supply chain. Economic Analysis and Policy, 77, 748-763. https://doi.org/10.1016/j.eap.2023.01.002
  • Qin, M., Su, C. W., Lobonţ, O. R., & Moldovan, N. C. (2023b). Does global supply chain pressure motivate the gold market?. Economic Research-Ekonomska Istraživanja, 36(3), 2183229. https://doi.org/10.1080/1331677X.2023.2183229
  • Qin, M., Su, C. W., Wang, Y., & Doran, N. M. (2023c). Could “digital gold” resist global supply chain pressure?. Technological and Economic Development of Economy, 1-21. https://doi.org/10.3846/tede.2023.18557
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There are 67 citations in total.

Details

Primary Language English
Subjects Maritime Transportation and Freight Services
Journal Section Research Articles
Authors

Abdullah Açık 0000-0003-4542-9831

Early Pub Date December 14, 2023
Publication Date December 27, 2023
Submission Date August 17, 2023
Acceptance Date September 28, 2023
Published in Issue Year 2023

Cite

APA Açık, A. (2023). Analyzing the impact of container shipping service reliability on global supply chain pressure: An asymmetric approach. Marine and Life Sciences, 5(2), 40-50. https://doi.org/10.51756/marlife.1345168

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