Alliances in Liner Shipping: an Instrument to Gain Operational Efficiency or Supply Chain Integration?

This paper explores how shipping lines are responding to the changing environment, with particular reference to the diffusion of a supply chain management view, by using alliances. It reports the results of a survey conducted on a sample of alliances concluded by a number of firms in recent years. First, the implications for transportation providers with the adoption of the supply chain management approach by shippers are discussed. Then a literature review on the key driving forces effecting shipping line alliances is presented. The findings of this indicate that most of the alliances examined are concentrated in the maritime transport phase rather than in inland transport and logistics services activities. They chiefly achieve objectives of internal efficiency and meet user logistical needs specifically in supplying higher service frequency and broader geographical coverage. Several implications for shipping line alliance strategies and supply chain management are suggested.