Sea Shipping Advantages & Disadvantages Essay

Pages: 4 (1304 words)  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: Master's  ·  Topic: Management  ·  Written: September 29, 2018

SAMPLE EXCERPT:

[. . .] 167) and vessel shipping can facilitate that smooth transfer so long as the ports are open, the vessels are sea-worthy, and the risks are contained. However, in times of political uncertainty and economic instability, vessel shipping can be more difficult to fit into one’s logistics, which makes it only a semi-complementary mode of transportation.

At the same time, the from a logistics point of view, the advantages of vessel shipping can be enormous: lower costs, higher capacity for shipping, and safer shipment of cargo over trusted routes (McMahon, 2018). The shipping industry can facilitate the various business industries that utilize its services and help to develop an overall healthier economic outlook for the global economy. Supply chain relationships can facilitate business growth long-term and when vessel shipping is protected by Acts like the Jones Act, business industries in turn can be protected (McMahon, 2018). There is, in other words, a mutually beneficial relationship that can develop from relying on vessel shipping. This is advantageous for supply chain managers, as they can better plan the logistical aspects of supply and demand and negotiate contracts that serve as win-win scenarios for all stakeholders.Buy full Download Microsoft Word File paper
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Advantages and Disadvantages of Sea Vessel Transportation for Supply Chain Management

Essay on Sea Shipping Advantages & Disadvantages Assignment

Davarzani et al. (2015) reveal the disadvantages of vessel shipping in supply chain management in terms of the econo-political risks they pose. Natural disasters, sanctions, tariffs, economic instability that spills over from one state to the entire global economy are a few of the risks and disadvantages that impact logistics preparation for supply chain managers with respect to vessel shipping. Econo-political risks—namely economic sanctions—are among the most significant risks that vessel shipping transportation carry (Davarzani et al., 2015). This is currently seen today across the globe as the U.S. sets sanctions on Iranian oil, which means dwindling vessel shipping out of Iran and to Iran impacts other sea routes and transportation channels. The interoperability of complementary modes of transportation for door-to-door supply chains is thus negatively impacted. Containing these risks is impossible, as it is uncertain at any given time how the econo-political fallout may reveal itself, especially from one administration to the next. The trade war between the U.S. and China is another example of how vessel transportation can disrupt supply chains and logistics significantly, as suppliers and producers seek to arrange alternative plans in the face of rising tariffs and/or sanctions.

Research Paper Conclusion

Maritime shipping presents both advantages and disadvantages to the supply chain manager. Vessel transportation provides the most capacity for the least cost in normal times—but when conditions strike that are less than favorable, sea lanes can became blocked, routes disrupted, and the supply chain backed up for weeks or, worse, for the unforeseeable future. The current trade war between the U.S. and China is an example of the type of econo-political risk that logistics managers and supply chain managers must consider. At the same time, the opportunity for developing long term relationships between suppliers and producers via the sea shipping industry can be beneficial for both.

References
  1. Davarzani, H., Zanjirani Farahani, R., & Rahmandad, H. (2015). Understanding econo-political risks: impact of sanctions on an automotive supply chain. International Journal of Operations & Production Management, 35(11), 1567-1591.
  2. McMahon, C. (2018). Double down on the Jones Act? Journal of Maritime Law & Commerce, 49(2), 153-195.
  3. Paixão, A. C., & Marlow, P. B. (2002). Strengths and weaknesses of short sea shipping. Marine Policy, 26(3), 167-178.
  4. Tseng, Y. Y., Yue, W. L., & Taylor, M.… [END OF PREVIEW] . . . READ MORE

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