Shipping Strategy: Innovating for Success

295 Pages·2009·1.759 MB·English

by  Peter Lorange

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Shipping Strategy
Withroughlythree-quartersoftheearth’ssurfacecoveredwithwater,
itisneedlesstosaythatshippingplaysamajorroleinworldtrade.In
fact,itisoneofthemostinternationalindustries,andhasanimpacton
eachandeveryoneofuseveryday.Shipstransportthefoodweeat,the
clotheswewear,thecarswedrive,thematerialsusedtobuildour
homes,andthefuelthatheatsthem.Yettraditionalshipping
companies–onesthatcombinevariousaspectsofshippingunderone
organizationalroof–areonthedecline.Theyaregraduallybeing
replacedbynew,morespecializedcompanieswithmorestrategic
clarityandmanagerialfocus.InShippingStrategy,PeterLorangedraws
onhisextensiveexperienceintheshippingindustrytoshowhow
companiescanadapttothefast-movingandvolatileworldofmaritime
businessbydevisingstrategiesforfuturesuccess,including
specializationandinnovation.
peter lorange istheKristianGerhardJebsenProfessorof
InternationalShippingatIMDinLausanne,Switzerland.Heretiredin
2008afterfifteenyearsasPresidentofIMD,isaformerpresidentofthe
NorwegianSchoolofManagementBIand,beforethis,wasaffiliated
withtheWhartonSchool,UniversityofPennsylvania,andTheSloan
SchoolofManagement,MassachusettsInstituteofTechnology.
ProfessorLorangeistheformerownerofaNorwegianshipping
companyandisalsoaboardmemberofseveralshippingfirms.Hehas
writtenoredited15booksandsome110articlesonthetopicsofglobal
strategicmanagement,strategicplanning,andentrepreneurshipfor
growth.HismostrecentbookisThoughtLeadershipMeetsBusiness
(Cambridge,2008).

Shipping Strategy
Innovating for Success
dr. dr. h. c. mult. peter lorange
KristianGerhardJebsenProfessorofInternationalShipping
FormerPresident,IMD
CAMBRIDGEUNIVERSITYPRESS
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© Peter Lorange 2009
This publication is in copyright. Subject to statutory exception and to the
provision of relevant collective licensing agreements, no reproduction of any part
may take place without the written permission of Cambridge University Press.
First published in print format 2009
ISBN-13 978-0-511-72909-6 eBook (NetLibrary)
ISBN-13 978-0-521-76149-9 Hardback
Cambridge University Press has no responsibility for the persistence or accuracy
of urls for external or third-party internet websites referred to in this publication,
and does not guarantee that any content on such websites is, or will remain,
accurate or appropriate.
InmemoryofKristianGerhardJebsen,1927–2004.

Contents
Listoffigures pageix
Foreword xiii
Acknowledgements xix
PartI Worldshipping:thecontext 1
1 Driversofchangeintheshippingindustry 3
2 Majorshippingmarkets 15
3 Shippingfreightrates 31
4 Shippingindustryclusters 62
PartII Strategicarchetypesinshipping 77
5 Specializedstrategies 79
6 Owningsteel 112
7 Usingsteel 142
8 Operatingsteel 170
9 Innovatingaroundsteel 175
PartIII Thefirm’sportfoliostrategy 185
10 Portfoliomanagement 187
11 Riskandrevenuemanagement 215
viii contents
PartIV Inconclusion 233
12 Twouniqueissuesinshipping–familyandgovernance 235
13 Intheend…aquestionofmanagementcapabilities 248
Epilogue 260
References 262
Index 266