The Influence of supply chain relationships on empty container management

Abstract

Each trade zone in the world market has a different level of imports and exports, which results in the accumulation of empty containers in some areas and insufficient supply in other areas. This imbalanced flow of containerised cargo has become a challenge for shipping lines, which need to allocate empty containers from surplus areas (e.g., import-oriented countries) to fulfil exporters’ demands in areas with a shortage of containers (e.g., export-oriented countries). The current practices and perspectives of major parties in export-oriented countries can be a significant source of information for understanding this issue and how it may impact the global logistics system. This research offers an understanding of the relationship between shipping lines and shippers and other major parties regarding the challenge of container management, based on agency theory. Although previous studies have explored the problem of container management, few studies have addressed the relationship between shipping lines and shippers in export-oriented countries. This research also contributes to the understanding of logistics and supply chain management in regard to the problem of empty container management and offers a new approach for understanding empty container repositioning at the global scale. Finally, this research identifies the advantages and disadvantages of existing empty container management strategies, and contributes to the understanding of the bargaining power of shipping lines and shippers when empty containers become a critical issue, particularly in exported-oriented countries. Such information is useful for shaping the best practices to enhance information sharing and improve relationships in the shipping industry. A summary of the key issues involved and recommendations to shipping lines, shippers, relevant associations/federations and the public sector is provided.