Co-operative Stategies and Supply Chain Integration in Linear Shipping. The Case of Italian Firms



Co-operative Stategies and Supply Chain Integration in Linear Shipping. The Case of Italian Firms

Authors

EVANGELISTSA P and MORVILLO A, National Research Council, Italy

Description

This paper studies the cooperative relations developed by containerized freight shipping firms in recent years. Since the beginning of the 1990s, the sector of freight transport by sea, especiaUy the containerised freight market, has been charaetefised by

Abstract

This paper studies the cooperative relations developed by containerized freight shipping firms in recent years. Since the beginning of the 1990s, the sector of freight transport by sea, especiaUy the containerised freight market, has been charaetefised by increasingly widespread non-competitive relations between firms (Cooper, Browne, Peters, 1991; Kadar, 1996).

Although this is not a completely new phenomenon, it is having a considerable impact upon competitive dynamics within the sector. Traditionally, cooperation between firms in the above market had the main objective of fixing the freight rate (Drewry Shipping Consultants, 1991). Thus for many years inter-firm relations took the form of conferences or consortia of various types (Breit~aann, 1991).

By contrast, the alliances established in the last few years appear completely different. They are conceived to achieve several strategic objectives ranging from the attainment of a more rapid market expansion to supplementing internal competencies, spreading risk, achieving higher economies of scale, and raising the level of customer service (Damas, 1996).

In this regard, a significant contribution has come from the modem concept of integrated logistics in response to a series of environmental changes. Such changes inclode, above all the giohalisation of the economy and industrial relocation, the dissemination oftbe Just In Time approach, and the increasing outsourc'mg of activities deemed non-strategic by production firms.

Publisher

Association for European Transport