Title: Management Outsourcing in the Maritime Transport Industry
Abstract: This article reports on the use of management outsourcing in the maritime transport industry, focusing on the likelihood that shipping companies will outsource the management of their vessels to dedicated shipping management companies. The authors applied a mixed-logit regression model to a dataset of 39,925 vessels belonging to 4,049 different ship-owners (each owner must be operating at least two vessels). They were interested in determining the components of the decision to outsource ship management, taking into consideration both the characteristics of the owners as well as the vessels’ characteristics. The results showed that only certain types of owners outsource and owners only outsource the management of vessels with specific characteristics. For example, an owner with many similar vessels will outsource only some of these vessels in order to benchmark its own management performance and to attain greater flexibility. Another approach, dubbed the “mixed strategy,” leads to the in-house management of young and old vessels, and of reefer and roro vessels, while middle-aged, dry cargo ships, offshore vessels, and tanker vessels may be outsourced. A final section briefly considers the impact of security concerns on outsourcing habits.
Publication Year: 2012
Publication Date: 2012-06-01
Language: en
Type: article
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