Shipping Company Strategies
Global Management under Turbulent Conditions
- 1st Edition - April 2, 2005
- Imprint: Elsevier Science
- Author: Peter Lorange
- Language: English
- eBook ISBN:9 7 8 - 0 - 0 8 - 0 4 5 8 0 6 - 9
This book is about developing implementable strategies for shipping firms. It opens with an initial historical retrospective that highlights cases on A.P. Moller-Maersk and Leif… Read more
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This book is about developing implementable strategies for shipping firms. It opens with an initial historical retrospective that highlights cases on A.P. Moller-Maersk and Leif Hoegh and Co. Here the reader is introduced to the global nature of competition in shipping, as well as the volatility of shipping markets. The book then turns to the question of how to play these markets. It looks at commodity based shipping company strategies for the bulk carrier, tanker container-ship and other segments. Here, the focus is on both going long-short, in-out, and maintaining a low cost base. Next is a discussion of operations versus asset play. The book analyzes Marsoft's forecasting methodology, with case studies on The Torvald Klaveness Group, Norden, Frontline and Teekay.
The book then takes a close look at the challenge of driving one's strategy towards niches, i.e. on-commodity segments, with a spotlight on how to find a viable business opportunity and develop a defendable strength there. Examples come from I.M. Skaugen, Farstad Shipping, The Torvald Klaveness Group and Leif Hoegh and Co.
Since overall corporate-wide portfolio strategies can be important in shipping, particularly if the various elements in the portfolio are relatively unrelated, the next part of the book turns to analytical approaches, citing several examples. Then follows a discussion of key organizational issues, particularly how to create and sustain more effective, predominantly network-based organizations. The penultimate subject is the important role the board of directors can play here. Finally, the role of family firms, and the future of shipping firms, is discussed, again with several rich examples.
Researchers, Students and Professionals in this field.
A Truly Challenging Industry: Shipping Company Strategies. Historical Background. Macro Issues. Turbulent Conditions. Leif Hoegh and Co. A.P. Moller-Maersk. The Strategic Challenge. Shipping Company Strategies: A Model. Trade-Specific Impacts on the Major Shipping Markets. Coal. Steel and Iron Ore. Grain. Crude Oil. Shipping Rate Forecasting-Marsoft Example. Financial Markets. Technological Developments in Ship Building and Ship Design. Conclusion.
Commodity-Based Shipping: Playing the Market. Market View. The Classic Shipping Segments. Tanker Markets. Bulk Carrier Markets. Container Markets. Liner Shipping. Shipowners' Classic Responses-Play the Markets. Chartering. Purchase and Sale of Ships. Withholding Capacity. Operations and/or Asset Play. Understand the Market Better. The Marsoft Example. Doing Good Even Better. Risk. Hedging Instruments. Some Successful Protect and Extend Strategies. The Torvald Klaveness Group. Norden. Frontline. Teekay Shipping Corporation. Beyond This-"Live With" Commoditization. Conclusion. The Drive toward Non-Commodity Segments. Industry Structure Impacting the Demand Side. Demands for Larger "Packages" of Ship Services. Integration of Several Value Chain Segments. The Investment Size per Ship as a Barrier to Entry. Non-Commodity Business Growth. Build. Leverage. Transform. Distinctive Innovative Competences. Industry Structure. Highly Specialized Shipping Businesses. Industrial Chemicals Shipping. The Specialized Drinks Segment. The Cruise Business. Liquefied Natural Gas (LNG). Further Examples of Niche Strategies. I. M. Skaugen. Farstad Shipping. TMT. The Torvald Klaveness Group. Leif Hoegh and Co. Conclusion. Portfolio Strategies. The Classic Portfolio Model Applied to Shipping. Stock Picking. Index-based Portfolios. A Portfolio Management Work Station. Executive Dashboard. Cash Flow Dashboard. Portfolio Dashboard. Performance Dashboard. Performance versus Budget Dashboard. A "New" Portfolio Model Based on Developing Several
Business Platforms Proactively. Very Long Term Time Horizons. A Newbuilding Scenario. Political Risk and the Portfolio Strategy. Examples of Portfolio Strategies. Predominantly Commodity-Oriented: Norden. Frontline. Mix of Commodity and Niche: The Torvald Klaveness Group. Farstad. I. M. Skaugen. Teekay. Niche: Leif Hoegh. Conclusion. Organizational Issues. Relevant Prerequisites for Shipping Organizations. The Know-How Base. Ability to Change. Keeping It Simple and Focused. Lowest Possible Cost Provider. Network-Type Organizations. Customer Centric Business Principles: How to Achieve Customer Focus. Oldendorff Carriers. I. M. Skaugen. Norden. Torvald Klaveness Group. A. P. Moller-Maersk. A High Performance Business Culture. See Business Opportunities Not Yet Obvious to Others. "Meeting Places" between "Problems" and "Solutions". More Experimentation. More Systematic Learning. Juxtapose Traditional and Radical Business Views. Fight "Not Invented Here". The Need for "Internal Entrepreneurs". The CEO and the Board of Directors. Diversify out of Shipping-Or Not. Success Stories. Less Successful Diversifications. Conclusion. The Future of the Industry. Unattractiveness for Public Firms. Family Firms: Succession Planning, Professionalism. Family Members with Different Risk Profiles. The Need for Capital. Strategic Alliances. The Stock Market: "Steel" vs. Shares. Change and Stability. Three Key Evolutionary Forces. Physical Assets. Organization. The Business Model. Shaping the Shipping Company of the Future. Short Term and Long Term. Local and Global. Commodity and Niche. Intuition and Discipline. Conclusion. References.
Commodity-Based Shipping: Playing the Market. Market View. The Classic Shipping Segments. Tanker Markets. Bulk Carrier Markets. Container Markets. Liner Shipping. Shipowners' Classic Responses-Play the Markets. Chartering. Purchase and Sale of Ships. Withholding Capacity. Operations and/or Asset Play. Understand the Market Better. The Marsoft Example. Doing Good Even Better. Risk. Hedging Instruments. Some Successful Protect and Extend Strategies. The Torvald Klaveness Group. Norden. Frontline. Teekay Shipping Corporation. Beyond This-"Live With" Commoditization. Conclusion. The Drive toward Non-Commodity Segments. Industry Structure Impacting the Demand Side. Demands for Larger "Packages" of Ship Services. Integration of Several Value Chain Segments. The Investment Size per Ship as a Barrier to Entry. Non-Commodity Business Growth. Build. Leverage. Transform. Distinctive Innovative Competences. Industry Structure. Highly Specialized Shipping Businesses. Industrial Chemicals Shipping. The Specialized Drinks Segment. The Cruise Business. Liquefied Natural Gas (LNG). Further Examples of Niche Strategies. I. M. Skaugen. Farstad Shipping. TMT. The Torvald Klaveness Group. Leif Hoegh and Co. Conclusion. Portfolio Strategies. The Classic Portfolio Model Applied to Shipping. Stock Picking. Index-based Portfolios. A Portfolio Management Work Station. Executive Dashboard. Cash Flow Dashboard. Portfolio Dashboard. Performance Dashboard. Performance versus Budget Dashboard. A "New" Portfolio Model Based on Developing Several
Business Platforms Proactively. Very Long Term Time Horizons. A Newbuilding Scenario. Political Risk and the Portfolio Strategy. Examples of Portfolio Strategies. Predominantly Commodity-Oriented: Norden. Frontline. Mix of Commodity and Niche: The Torvald Klaveness Group. Farstad. I. M. Skaugen. Teekay. Niche: Leif Hoegh. Conclusion. Organizational Issues. Relevant Prerequisites for Shipping Organizations. The Know-How Base. Ability to Change. Keeping It Simple and Focused. Lowest Possible Cost Provider. Network-Type Organizations. Customer Centric Business Principles: How to Achieve Customer Focus. Oldendorff Carriers. I. M. Skaugen. Norden. Torvald Klaveness Group. A. P. Moller-Maersk. A High Performance Business Culture. See Business Opportunities Not Yet Obvious to Others. "Meeting Places" between "Problems" and "Solutions". More Experimentation. More Systematic Learning. Juxtapose Traditional and Radical Business Views. Fight "Not Invented Here". The Need for "Internal Entrepreneurs". The CEO and the Board of Directors. Diversify out of Shipping-Or Not. Success Stories. Less Successful Diversifications. Conclusion. The Future of the Industry. Unattractiveness for Public Firms. Family Firms: Succession Planning, Professionalism. Family Members with Different Risk Profiles. The Need for Capital. Strategic Alliances. The Stock Market: "Steel" vs. Shares. Change and Stability. Three Key Evolutionary Forces. Physical Assets. Organization. The Business Model. Shaping the Shipping Company of the Future. Short Term and Long Term. Local and Global. Commodity and Niche. Intuition and Discipline. Conclusion. References.
- Edition: 1
- Published: April 2, 2005
- Imprint: Elsevier Science
- Language: English
PL
Peter Lorange
Affiliations and expertise
International Institute for Management Development