Int. J. of Marine Engineering Innovation and Research, Vol. xx(x), Xxx. 20xx.
2088-2033 (pISSN: 0853-4098) 1
Global Maritime Market
Journals Review
Bagas Bimantoro1
I. INTRODUCTION1
I t has been already validated that agents in financial
markets take the linkage between financial and economic
activity as given and form their investment decisions
accordingly. Basically, investors' decision function
compares the expected and realized returns of the assets
they own. Among numerous endogenous factors
affecting investors' decision function, interaction
between different markets and asset classes is an
emerging and important issue both on macro and micro
levels. Every signal that contains information about the
possible interdependencies and spillovers between the
real economy and the capital markets will be valuable. In
that regard, interaction of stock markets and markets for
shipping freight by sea (i.e. maritime markets),
respectively as a benchmark for asset prices and a proxy
for assessing the path of real economic activity.
However, in this paper the discussion focusing on
maritime markets.
Over the last 50 years, containerization has grown
to account nowadays for roughly 70% of total deep sea
trade (by value) and it is now a key component of the
global economy[1]. The resulting standardization of
freight handling processes has enabled quick and
efficient cargo movements across transport modes and
has relied on the concept of transshipment to provide
global coverage. This involves the use of multiple
services to establish connectivity between ports that are
not otherwise served by direct maritime links. As such,
the global liner shipping network has adopted a hub-and-
spoke structure, whereby there is a strong incentive for
liner services to include visits to heavily connected ports
(such as Singapore, Rotterdam and Hong Kong) in their
rotations.
The maritime industry plays an essential role in
facilitating international trade and commerce in the
global economic system. Shipping companies as carriers
are indispensable actors in the system. In the era of
global supply chain management (SCM), shipping
companies face challenging circumstances with shippers
demanding supply chain solutions whilst expecting lower
freight rates. This leads to a higher degree of integration
along the maritime transport chain, thus the birth of
‘maritime supply chains’. With reference to Lam (2011,
p. 366), a maritime supply chain in the context of
container shipping is defined as ‘the connected series of
activities pertaining to shipping services which is
concerned with planning, coordinating and controlling
1
Author name is with Departement of …., University/Institution,
City, Postal Code, Country. E-mail:………………….
containerised cargoes from the point of origin to the
point of destination’[2]. A maritime supply chain aims to
add value to the goods transported. By providing place
and time utility, a maritime supply chain carries the
goods from a place (point of origin) where the goods are
valued at a lower level to a place (point of destination)
where the goods are to be valued at a higher level. In the
supply chain dimension, shipping companies have to
coordinate cargo, information, and financial flows along
the chain interfacing with various parties such as
shippers and ports. This leads to a highly complex
problem in managing maritime supply chains.
II. METHOD
In this paper, research methodology used are
argumentative literarture review and integrative literature
review. Argumentative literature review, as the name
implies, examines literature selectively in order to
support or refute an argument, deeply imbedded
assumption, or philosophical problem already established
in the literature. It should be noted that a potential for
bias is a major shortcoming associated with
argumentative literature review. However, Integrative
literature review reviews, critiques, and synthesizes
secondary data about research topic in an integrated way
such that new frameworks and perspectives on the topic
are generated. If your research does not involve primary
data collection and data analysis, then using integrative
literature review will be the only option. In this case, 14
journal related with maritime global market will be
reviewed.
III. THEORY
The role of maritime shipping in maritime policy
and in the overall development of every country is very
important. Its main task is to satisfy varying, by volume
changeable and by characteristic elastic, demand for
maritime transport.
From an economic point of view, every maritime
cycle is unique and to understand the state of the market
it is necessary to develop a systematic explanation of
how the cycles on the freight market are generalized. In
world practice, the supply and demand model is used for
that[3]. That technique is often used by economists to
analyze wide consumption on the market. The freight
rates are influenced by market flows depending on the
cargo being trade and they are expressed in the form of
indices for each different market segment.
Int. J. of Marine Engineering Innovation and Research, Vol. xx(x), Xxx. 20xx. 2088-2033 (pISSN: 0853-4098) 2

Figure 1. Shipping Market Model

(Stopford, M.: Maritime economics, Rutledge, Tavlor&Francis group, 2000, pg. 116.)

The connection between the market balance
and the freight is one of the most important economic
connections in the shipping model and is controlled
by the shipowners who decide how to react in a
certain situation[3] . This model gives the cycles on
the shipping market a characteristic pattern of uneven
ups and downs.
The following are some of the factors that can
influence the need for maritime transportation in the
maritime shipping market :
a) World Economy
The world economy has the most important
influence on the shipping demand because it creates
the most demand for maritime transport by
importing raw materials for production or trade of
ready products. Globalization and information
technology, rapid and substantial changes in the
environment require both from individuals, as well
as from companies and the whole society to change
their business philosophies and orientation towards
their core business while at the same time outsource
some other activities. In accordance with that,
understanding of trends on the shipping market
requires an excellent knowledge of developments in
the world economy[3].
b) International Maritime Trade
International maritime trade is a very important
com- ponent of the shipping market and is a result
of the overall trends in the world economy. In
modern times it is most- ly the result of demand,
especially from larger and more powerful
Int. J. of Marine Engineering Innovation and Research, Vol. xx(x), Xxx. 20xx. 2088-2033 (pISSN: 0853-4098)
consumers, i.e. countries with higher ranking in
economic scales. The maritime market is very
sensitive and reacts to any change in any direction
of world trade. The volume of world trade is
oscillating; therefore, the de- mand for shipping
space has to adjust to those oscillations[4]. Well
organized and therefore relatively cheap
maritime transport is a moving force of the
world economy and world trade and the role of
ship- ping companies are therein enormous and not
easy at all[5].
The structure of the world merchant fleet according
to basic ship types, size and age, and its changes,
give a better picture of the dynamic and the state of
supply on the ship capacity market [6]. The
structure of the merchant fleet arises from the
structure of seaborne cargo, modern transport
technologies, business strategies and market
conditions.
Even though every business is different, there are
four types of changes to watch out for. Those types
of changes are: changes in demand for certain
goods, changes in the source where the suppliers
acquire goods, changes caused by a change of
location of the facility development, which can
have a direct influence on the volume, i.e. the
quantity of seaborne cargo and on the type of
required ship, and changes in the shipper’s
transport policy.
c) Profit
The demand for maritime transport depends on
the distance over which the cargo is shipped, and
that distance is normally referred to as the “average
profit” of maritime trade. When analysing changes
in the average profit, the commodities trade can
be very complex, demanding informa- tion in the
shape of detailed merchant matrices. Oftentimes the
important question is the one about the balance
be- tween long-term and short-term supplier profit.
d) Policy and Politics
Particular characteristics of political development
regarding the shipping market are those which
when they appear, they can lead to sudden and
unexpected changes in the demand on the market.
More precisely, they are capable of turning the
shipping market upside down. The term “political
events” refers to events such as revolutions,
political nationalizations of foreign properties, local
or global wars and strikes from other country.
Every insight into the balance of the development
of shipping markets must take into consideration
the potential of important facts of political nature,
while the facts speak for themselves in prediction
of the importance of changeable behavior of the
shipping demand.
The good example is the “Trade War” between
USA and China that influence global maritime
market. Because of this trade war continues
between the world’s two biggest economies, there
will be a huge impact on both countries and also on
other countries. In USA, majority of US bonds are
in the hands of China. If China start selling these
3
bonds, there will be a huge negative impact on US
economy, and dollar value may fall. Increase of
taxes on China goods means people in USA have to
pay higher prices for the goods that were hitherto
available for cheaper prices. Middle classes are at
loss here[7].
However, China also had problem because US is
one of the biggest importers of Chinese goods.
Several countries including Japan, South Korea
suffered patent and trademark violations by China.
China has a rule that foreign companies that
operates in China must share their technology with
Chinese companies. And then Chinese companies
are violating patents and manufacturing the similar
products for cheaper prices. US is highlighting this
issue these days. Many more countries may join
this fight and thereby China may face pressure from
WTO. Asian stock markets faced many fluctuations
due to this trade war[8]. In many Asian countries
stock markets fell. Trade war between two biggest
economies of the world is not at all good for
International economy.
IV. JOURNAL REVIEW
In a review of the journal, the discussion will be
divided into three clusters. This division aims to make a
more objective review because the journals that are
reviewed have a focus on different problems despite
having the same theme, namely the global maritime
market. These clusters include: Maritime Market,
Maritime Supply and Maritime Economic Strategy.
The following is a discussion of each cluster and
related journal review:
a. Maritime Market
Maritime market is primarily related to commercial
or mercantile activities, and few other names this
industry could be known by is for the work and
services it provides include shipbuiliding, shipping
line operations and management, shipyard services,
maritime cargo services, marine repairs and freight
forwarding services. Maritime market activities
support a number of enterprises and businesses
including logistics companies, shipyard companies,
loading and unloading ships, that is longshoremen
or stevedores, import-export companies,
shipbuilding companies, vessel equipment and
components OEMs, metallurgy companies, steel
mills, commodity terminal companies, energy
terminal and transportation companies such as
pipeline hubs, and various service industries and
companies.
The global maritime industry has an influence on
many other industries worldwide, which are reliant
on maritime trade to transport goods and raw
materials. According to Koncept Analytics, the
maritime industry is the leading transport sector in
terms of size. Huge capital is required to support
the global shipping sector. The industry also relies
on a vast workforce and technology innovation.
Global economic growth fuelling global trade is the
main factor affecting the shipping industry. While
traditionally the EU region has dominated the
shipping sector, there has been a shift in recent
years by which Asia has overtaken Europe
Int. J. of Marine Engineering Innovation and Research, Vol. xx(x), Xxx. 20xx. 2088-2033 (pISSN: 0853-4098) 4

Table 4.1 Maritime Market Cluster Journal Review

No. Content
Title Author
1 2 3 4
1. Bulk trade and maritime transport Nils-Gustav Lundgren
costs- The evolution of global markets
2. Periodicity of world crude oil maritime Jihong Chen et al
transportation Case analysis of
Aframax Tanker market
3. Dynamics of the co-movement Oral Erdogan et al
between stock and maritime markets
Content:
1. History of Maritime Market
2. Trends of Maritime Market
3. Market Characteristics
4. Prediction Future Market

All of the reviewed journals explain about history
of maritime market for their cases. Journal 1
explain very comprehensive about bulk trade
history. It shows some cases happened in the past
and the situation. However, both of journal 2 and 3
only give brief explanation about their cases
history. This might be because the writer wants to
focus on the issues discussed and because of the
limitation on the number of pages the publisher
allows. The history of each case should be
explained to provide an overview of market
conditions in each period.
Related to the content of Trend of Maritime
Market, journal 1 and journal 2 explain in detail
how the market trends from time to time. In journal
1, the data is presented in the form of graphs, tables
and descriptions of trends in each period.
Presentation of data like this makes it easy for
readers to understand the information provided. In
journal 2, data is only displayed in graphical form,
but it is quite easy to understand. While in journal 3
does not discuss trends from the maritime market.
In the Market Characteristics content, Journal 1 and
Journal 3 explain the market characteristics in the
cases they examine and the correlation between
factors that affect the market. Based on these
factors, it can be taken into consideration if you
want to design a maritime economic policy. On the
other hand, in Prediction Future Market content,
journals 1 and 2 discuss this content while journal 3
does not. This is because Journal 1 and Journal 2
focuses on market trends that allow making
predictions of future events while Journal 3 focuses
on the relationship of the stock market with
maritime markets
b. Maritime Supply Chain
Supply Chain is the whole granddaddy process
comprising of all aspects in a product cycle, for
example from picking of the fruit at a farm in Point
A to delivering the fruit to the shelf at a store in
Point B using all of the above-mentioned industries.
Supply chain involves a network of suppliers,
transporters, warehouses, distribution centres,
shipping lines, logistics services providers all
working together from the creation and sale of a
product till its delivery to customer.
Supply chain management is the management of all
the supply chain activities in developing and
running the supply chain as effectively and
efficiently as possible.
This management may involve product
development, sourcing, production, logistics, and
all the system required to coordinate and delivery
these activities. A simple supply chain may be
made up of few different processes that are linked
to the movement of products along the chain.. A
typical supply chain starts and ends with the
customer.

Table 4.2 Maritime Supply Chain Cluster Journal Review

No Content
Title Author
. 1 2 3 4
1. Designing a sustainable Jasmine Sieu Lie
maritime supply chain- A hybrid Lam
QFD–ANP approach
2. Evaluating value creating factors Chandra Prakash
in greening the transportation of Garg et al
Global Maritime Supply Chains
(GMSCs) of containerized
Int. J. of Marine Engineering Innovation and Research, Vol. xx(x), Xxx. 20xx. 2088-2033 (pISSN: 0853-4098) 5

freight
3. Risk management abilities in Jyri Vilko et al
multimodal maritime supply
chains- Visibility and control
perspectives
4. The impact of flexible Konstantinos
environmental policy on Zavitsas et al
maritime supply chain resilience
Content :
1. Literature Study
2. System Modelling
3. Case Study
4. Implication of Supply Chain Design

framework for drawing conclusions from

In the Literature study content, journals 2 and 3
show the literature supporting their argumentation
and research. The authors of these two journals
make a review of various previous studies where
this will reinforce the ideas of the authors. In
journal 2, a review of the previous research was
delivered in detail and comprehensively while in
journal 3 only a description. On the other hand,
journals 1 and 2 do not display literature studies at
all.
In journal 4 a system modeling is done where the
other journals are not carried out. This modeling
aims to analyze the system that is made so that it
can be known what factors are considered so that
the analysis will be more accurate. In journals 1 and
3 system modeling was not carried out because the
research method used did not require system
modeling (QFD-ANP approach and Visibility
Control Perspectives). In journal 2 it was also not
done because the journal evaluated the events that
already existed so no modeling was needed.
All journals that have been reviewed carry out case
studies, where the analyzed problems are different
for each journal. It aims to investigate a
phenomenon in the context of real life. Case study
research can mean single and multiple case studies,
can include quantitative evidence, depend on
various sources of evidence, and benefit from the
prior development of theoretical propositions.
Case studies should not be misinterpreted only for
qualitative research, but can be based on a mixture
of quantitative and qualitative research evidence.
Single-subject research provides a statistical
quantitative case study data. Case studies may
involve qualitative and quantitative research
methods.
In Implication content, only Journal 4 does not have
implications. Though the implications are highly
recommended so that the ideas conveyed by the
writer can be realized. In journals 1 and 2 only
emphasize the practical implications, whereas in
journal 3 explain the research and practical
implications.
c. Maritime Economic Strategy
Over the last 50 years, containerization has grown
to account nowadays for roughly 70% of total deep
sea trade (by value) and it is now a key component
of the global economy[1]. The resulting
standardization of freight handling processes has
enabled quick and efficient cargo movements
across transport modes and has relied on the
concept of transshipment to provide global
coverage. This involves the use of multiple services
to establish connectivity between ports that are not
otherwise served by direct maritime links. As such,
the global liner shipping network has adopted a
hub-and-spoke structure, whereby there is a strong
incentive for liner services to include visits to
heavily connected ports (such as Singapore,
Rotterdam and Hong Kong) in their rotations.
Based on these problems, it is necessary to have a
special strategy to increase profits from the
company and minimize transportation costs.

Table 4.3 Maritime Economic Strategy Cluster Journal Review

Content
No. Title Author
1 2 3 4
Strategic maritime container service Panagiotis
1
design in oligopolistic markets Angeloudis et al
Strategic Maritime Container Transport Panagiotis
2
Design in Oligopolistic Markets Angeloudis et al
Marine policy basis of Indonesia as a Yety
3 maritime state The importance of Rochwulaningsih et
integrated economy al
The communicative competence of
Chinese seafarers and their employability
4 Lidong Fan et al
in the international maritime labour
market
Int. J. of Marine Engineering Innovation and Research, Vol. xx(x), Xxx. 20xx. 2088-2033 (pISSN: 0853-4098)
Content:
1. System Modelling
2. Quantitative Method
3. Qualitative Method
4. Strategy Design Offered
Basically journal 1 and 2 is similar journal with
same authors. They just rebranding it.I In both journals a
system modeling is done where the other journals are not
carried out. This modeling aims to analyze the system
that is made so that it can be known what factors are
considered so that the analysis will be more accurate. In
this paper both of them modelling the system in
monopolistic market and duopolistic market. By using
these two models, the strategy for dealing with trade
competition in the maritime market has more choices.
Both of journal 1 and 2 using quantitative
method. In analyzing the problem, the authors do system
modeling in which this model will be tested theoretically
and numerically. The results of testing these two models
will be the basis for determining economic policies and
strategies.
However, in journal 3 and 4 using qualitative
method to deal the problem. In journal 3, the authors
prioritize the opinions of experts to strengthen the
arguments presented without using quantitative or
qualitative research. It can also be said that the writer
only uses literature studies as his research method. In
journal 4, the author uses a survey method in which
qualitative data will be processed into graphs and tables.
In the content of the strategies offered, all
journals offer strategies to overcome problems in the
maritime market. This strategy can be used as a
consideration for making a regulation, policy and
business strategy.
IV. RECOMENDATION
Questions like what determines the freight on the
ship- ping markets or how are the average profits
going to be spent or will the average be enough to
pay off the new ship are of great importance to all
investors who reason- ably want to know what to expect
in long-term conditions, taking one cycle after another.
Precisely for these reasons it is important to
understand the complete state of the maritime
6
shipping market as well as the state of the world
economy in general, because success in this game of
mari- time cycles demands nothing else but life
experience in the maritime industry, understanding of
connections be- tween the world economy and politics
and a sharp eye for conclusion of favourable contracts.
The fact is that the whole world and the overall
world trade, in maritime and in other sectors, spins
around the supply and demand and prices on the
market. Precisely for this reason it is important to
understand their inter- connection and other internal
and external factors which influence the conditions on
every market, including the shipping market. Therefore
the aim of this paper is to indi- cate the importance of
these very influential factors.
REFERENCES
[1] Panagiotis Angeloudis et al, “Strategic maritime container service
design in oligopolistic markets,” Transportation Research Part B
90, pp. 22–37, 2016. ELSEVIER
[2] J.S.L. Lam, “Patterns of maritime supply chains: slot capacity
analysis,” J. Transp. Geogr. 19 (2), pp. 366–374, 2011.
[3] Alen Jugovic et al, “Factors influencing the formation of freight
rates on maritime shipping markets,” Scientific Journal of
Maritime Research 29, pp. 23–29, 2015.
[4] Mitrovic, F., Kesic, B., Jugovic, A., “Management in shipping and
ports”, Split: Faculty of Maritime Studies; Euroakma,
[5] Zelenika, R., Zanne, M., “Business policy on the function of
increase of competitiveness shipping companies”, Naše more,
55(3–4), University of Dubrovnik, 2008.
[6] Dundovic, C., Rudic, D., “Guidelines and Dynamics of Croatian
Maritime Shipping Industry Adjustment Conditions Created by the
World to Seaborne Trade Market”, Naše more, 48(2001), pp. 171–
181. 2001
[7] Thebalance.com, “US Trade Deficit With China and Why It's So
High”, June 22 2019.
[8] Independent.co.uk, “Trump’s trade war with China will affect all
of us – this is how”, Tuesday September 18 2018 13:45.