Search Results (21)

This study examines the effects of capital lease arrangements on the operating performance of shipping firms as proxied by Return on Assets (ROA). The maritime industry is highly capital-intensive, often requiring substantial investments in fleet acquisition and maintenance, making ROA particularly relevant as it captures the effectiveness of firms in utilizing their leased and owned assets to generate operating income. As such, many firms rely on lease arrangements to access necessary resources while preserving liquidity and financial flexibility. Using an international sample of 209 shipping firms, we estimate fixed effects regressions to assess the relationship between lease intensity and performance of the shipping firms. The findings reveal that capital lease intensity is positively associated with operating performance, indicating that leasing can be a value-enhancing financing strategy in this sector. However, the performance benefits of capital leases diminish under IFRS 16 reporting, particularly for firms with higher leverage. These findings offer important implications for investors, regulators, and managers evaluating capital structure decisions and financial reporting strategies in capital-intensive industries post-IFRS 16 implementation. Full article

The share of European shipbuilding in the world market, with the constant exception of the cruise ship niche, has been in continuous decline for decades, while at the same time, state-supported Asian competitors are recording accelerated growth. With the already long-standing ban on subsidizing the shipbuilding industry by EU member states, its shipyards can maintain their market position primarily by continuously improving business processes, including adopting Industry 4.0 doctrines. In order to contribute to the European shipyards’ competitiveness growth, the authors of this paper use the case study methodology to investigate the applicability of blockchain technology in the process of financing the construction and purchase of ships according to a bareboat charter model, which is recognized as risk-balanced for all parties involved in the process. The empirically analyzed implementation of the blockchain application of smart contracts, using the example of three ships built and purchased according to the proposed model, theoretically results in an almost one-year shortening of the financing process, with a significant reduction in the costs of legal activities. The originality of this study is also emphasized by the correlation of smart contracts and the process of early ship outfitting in the sense of the possible improvement in its level, thus achieving savings in working hours and energy and ultimately shortening the process of realizing the shipbuilding project. Full article

Global supply chains, especially in commodity trading, are plagued by fragmentation, lack of transparency, and trust deficits among participants. These issues lead to inefficiencies, increased costs, and an over-reliance on intermediaries. The present Communication describes a blockchain-based platform that leverages Self-Sovereign Identity (SSI) and Verifiable Credentials (VCs) to address these challenges in supply chain management. Developed in collaboration with coffee industry stakeholders, our approach proposes a platform with an integrated marketplace for seller discovery, enables precise order definition with detailed terms and conditions, and actively guides both buyers and sellers throughout the shipping process, managing financial guarantees and ensuring a secure transaction flow. The platform is compatible with both traditional banking infrastructure and modern crypto-based systems, enabling seamless financial transactions. In cases where disputes arise, we empower users to easily collect all communications and documents to present to legal authorities, expediting the resolution process. The platform is implemented using the Internet Computer Protocol (ICP) for secure, on-chain storage and application hosting, and is integrated with the Ethereum blockchain to leverage its extensive decentralized finance (DeFi) ecosystem, significant liquidity, and robust stablecoin infrastructure, thereby facilitating secure financial transactions. Moreover, we introduce an SSI-based authentication and authorization framework that spans across the entire platform, including both the Ethereum Virtual Machine (EVM) and Internet Computer Protocol (ICP), enabling unified role-based access control through verifiable credentials. A value-added of the present Communication, the framework is demonstrated by means of a detailed case study in the coffee industry, highlighting the technical challenges addressed during implementation. While quantitative efficiency metrics will be established through upcoming real-world testing with industry partners, the platform’s design aims to streamline operations by reducing intermediary dependencies and automating key processes. Finally, the Communication provides insights into its adaptability to other industries facing comparable supply chain challenges, presenting an approach focused on enhancing trust and reducing reliance on intermediaries. Full article

This work focuses on understanding the different strategies adopted by wine cooperatives located in Argentina and the main E.U. wine countries for penetrating international distribution networks in the U.S. and Canadian markets. This study adopts a contingency framework integrating a stakeholder approach for the understanding of the logic behind a cooperative’s strategies to penetrate distribution networks (wholesalers, importers, and alcohol monopolies). This empirical study is based on the analysis of still and sparkling wine exports to the U.S. and Canadian markets, covering a period of approximately 54 months (2017–2021). The sample includes the analysis of more than 7000 containers shipped by the leading wine cooperatives in each individual country. The findings suggest the existence of heterogeneous choices in the distribution networks among wine cooperatives but also uniqueness related to the nature of the type of products marketed (still wines, sparkling wines, etc.) as well as the nature of the geographic origin of wine cooperatives. More precisely, the distribution of wine cooperatives in the U.S. and Canada shows different patterns. This investigation contributes to a better understanding of the behavior of wine cooperatives in marketing channels and to the literature on buyer-driven chains. It provides insights into the strategic choices of wine cooperatives and contributes to wine policies by providing insights on the modalities for the financing of the promotion of cooperative wines in non-E.U. countries. Full article

Fire incidents occurring onboard ships cause significant consequences that result in substantial effects. Fires on ships can have extensive and severe wide-ranging impacts on matters such as the safety of the crew, cargo, the environment, finances, reputation, etc. Therefore, timely detection of fires is essential for quick responses and powerful mitigation. The study in this research paper presents a fire detection technique based on YOLOv7 (You Only Look Once version 7), incorporating improved deep learning algorithms. The YOLOv7 architecture, with an improved E-ELAN (extended efficient layer aggregation network) as its backbone, serves as the basis of our fire detection system. Its enhanced feature fusion technique makes it superior to all its predecessors. To train the model, we collected 4622 images of various ship scenarios and performed data augmentation techniques such as rotation, horizontal and vertical flips, and scaling. Our model, through rigorous evaluation, showcases enhanced capabilities of fire recognition to improve maritime safety. The proposed strategy successfully achieves an accuracy of 93% in detecting fires to minimize catastrophic incidents. Objects having visual similarities to fire may lead to false prediction and detection by the model, but this can be controlled by expanding the dataset. However, our model can be utilized as a real-time fire detector in challenging environments and for small-object detection. Advancements in deep learning models hold the potential to enhance safety measures, and our proposed model in this paper exhibits this potential. Experimental results proved that the proposed method can be used successfully for the protection of ships and in monitoring fires in ship port areas. Finally, we compared the performance of our method with those of recently reported fire-detection approaches employing widely used performance matrices to test the fire classification results achieved. Full article

The International Maritime Organization (IMO) Decarbonization Roadmap for curbing and eliminating Greenhouse Gas (GHG) emissions by 2030 and 2050, respectively, is a “herculean” task in its own respect. If it is now combined with fundamental changes in trade dynamics, volatile market conditions, tighter shipping financing platforms with sustainability-linked interest rates and international safety regulations setup, a completely new framework for commercial ship design characterized by strict and often contradicting requirements emerge In parallel, zero carbon fuels available (readily or in the future) require extensive technological modifications and technical leaps in the current arrangements ship propulsion plants (with little to no existing reference) characterized by elevated consumption figures due to low energy density leading to an overshoot in voyage expense costs and the Total Cost of Ownership (TCO), respectively. Considering such a tight design space, holistic approaches with lifecycle considerations aiming at robust designs are deemed necessary. Pursuant to this roadmap, the authors have developed a design methodology fully integrated within the CAE software CAESES™ that encompass all aspects of ship design (stability, strength, powering and propulsion, safety, economics) and has an inherent dynamic voyage simulation module, enabling the user to simulate the response in variations of the geometrical, design variables of the vessel under uncertainty. The methodology has been extended to model the design and propulsion plant of an Ammonia powered Large Bulk carrier and deployed in global ship design optimization studies and utility-based ranking and selection process. Full article

Cold ironing technology, recognized as a tool to reduce emissions while ships are at berth, has been introduced in several European ports aligning with the international and European environmental and legal framework for reducing greenhouse gas emissions. The study aims to identify the prospects for cold ironing technology’s introduction into Croatian state-owned ports according to European sustainable conditions. The authors surveyed a group of port experts and stakeholders. Response analysis showed that the technology implementation in Croatian ports is feasible, but only 40% of state-owned ports currently dispose of a minimum electric connection power of more than 1 kV. Furthermore, the analysis showed that all surveyed experts confirmed a cold ironing technology application perspective in state-owned ports. Substantial investments and financing demands have to be concerned to achieve sustainable implementation. Significant efforts are still needed to overcome the challenges in the technology application requiring cooperation between stakeholders. The international legislative regulations implemented by the IMO insist on the safety of ships and people, respecting both the security of navigation at sea and overall operations in the port. Full article

The cruise shipping industry has existed for centuries. However, sustainability is a relatively new trend that could make a big difference and someday impact the industry. A growing body of research on sustainable cruise tourism includes studying changes among industry stakeholders, internal and external processes, and more. However, until now, there have been no comprehensive and systematic reviews of the academic literature on this topic and proposals for future research areas. The sample for our research consists of 56 articles structured into the following themes and subthemes: (1) corporate social responsibility (public interaction and emissions management); (2) territory management (collaboration with stakeholders and infrastructure development); (3) training in sustainable behavior (passengers, ship personnel, and other stakeholders). These themes fully explore the various use cases for sustainable cruises, forming a conceptual framework for understanding trends for the industry’s sustainable development. We direct the attention of other researchers to the following areas for further research: GHG emissions of cruising; biodiversity impacts; quantitative understanding of the target audience and their participation in sustainability financing; in-depth understanding of the reasons for cooperation between stakeholders; identifying the true motivation for participation in sustainable development; the long-term trends; and how the shipping industry is adapting to the effects of the COVID-19 pandemic. Full article

The alternative use of environmentally friendly marine fuel by Indonesian vessel owners complies with IMO regulations. Marine fuels with low carbon and sulfur are alternative fuels to the current fossil fuels used by the shipping industry. Some alternative marine fuels are being used or developed such as LNG, hydrogen, and methanol. LNG is one alternative fuel that is used significantly as a marine fuel in the shipping industry. As one of the LNG producers, Indonesia is still behind in using LNG as an alternative marine fuel. One of the main reasons is the use of conventional marine fuels such as HFO, MDO, MGO and the understanding of LNG as an expensive and high-risk commodity. However, vessel owners face various challenges when selecting alternative fuel, which is associated with price and technology. This study aims to analyze a 600 TEU container vessel by calculating its net present value, the capital recovery factor and life cycle analysis (LCA) to determine whether owners carry out the investment. The result of the economic analysis for the 600 TEU vessel showed that the investment of retrofit for LNG as a marine fuel will be a good choice for owners due to the challenge of capital cost for financing a new vessel. Full article

Environmental, regulatory, and economic exogenous disruptions force companies within the maritime shipping industry to become more sustainable. Financing for implementing the necessary changes is particularly challenging for these companies, considering their narrow margins. With the changes in the shipping industry being intrinsically capital-intensive, funding is a particular issue, as few institutional or individual investors can provide the capital required. This paper investigates the challenges of financing. Drawing from the theory of pecking order on debt and equity, it conceptualizes the relation between the modes of financing for the maritime shipping companies and the nature of the disruptions. Initially, we analyze the various IMO decarbonization regulations, GHG emissions, alternative fuels, and green energy. Moreover, the relationship between fleet operation and management and finance is explored. The paper provides a framework to illustrate from a financial perspective the plethora of challenges and disruptions that have troubled the industry. We then recommend more suitable funding routes for companies to gauge the proper mix of equity and debt levels, bonds, and leverage, based on the company’s characteristics, such as size or ESG performance, as analyzed via the lens of corporate financing, along with the nature of the disruption, such as high inflation or geopolitical conflicts. In more detail, the paper focuses on key environmental, social, and governance (ESG) drivers both in the short-term and the long-term within the dry bulk shipping industry: impact investing and ESG factors are driving new investment opportunities and contributing to risk mitigation and long-term investment returns. The most pressing financial and economic questions of the time are wildly extended equity and bond valuations, inflation, and the conundrum most central banks face. Given these uncertainties, from an investment perspective for equity markets, the risk/return outlook for risk assets is skewed to the downside, making a cautious approach prudent for maritime shipping companies. Full article

Non-energy use of natural gas is gaining importance. Gas used for 183 million tons annual ammonia production represents 4% of total global gas supply. 1.5-degree pathways estimate an ammonia demand growth of 3–4-fold until 2050 as new markets in hydrogen transport, shipping and power generation emerge. Ammonia production from hydrogen produced via water electrolysis with renewable power (green ammonia) and from natural gas with CO₂ storage (blue ammonia) is gaining attention due to the potential role of ammonia in decarbonizing energy value chains and aiding nations in achieving their net-zero targets. This study assesses the technical and economic viability of different routes of ammonia production with an emphasis on a systems level perspective and related process integration. Additional cost reductions may be driven by optimum sizing of renewable power capacity, reducing losses in the value chain, technology learning and scale-up, reducing risk and a lower cost of capital. Developing certification and standards will be necessary to ascertain the extent of greenhouse gas emissions throughout the supply chain as well as improving the enabling conditions, including innovative finance and de-risking for facilitating international trade, market creation and large-scale project development. Full article

Container shipping industries are highly capital intensive. If shipping carriers want to execute international shipping financing, they must follow the IMO emission reduction targets and meet the decarbonization trajectory of the Poseidon Principle (PP). This article used an activity-based model to calculate container shipping industry carbon emissions. It was found that the carbon intensity per unit for each ship was decreased because of the upsizing of container vessels and route deployment based on the alliance strategy. On the Asia–Europe (A/E) trunk route, as the ship size increased from 11,300 to 24,000 TEU, the results showed that the carbon intensity ranged from 6.48 to 3.06 g/ton-nm. It is also proven that the mega-container deployment on the A/E trunk route followed the decarbonization trajectory proposed by PP, while the Asia–Pacific trunk route was not fully in line with the trajectory of EEOI/AER. It is worth noting that starting from 2020, due to the COVID-19 pandemic, shipping companies deployed a higher number of small-size vessels to boost revenues, resulting in more pollutants produced and a mismatch of the trajectory proposed by PP. Full article

Airborne port noise has historically suffered from a lack of regulatory assessment compared to other transport infrastructures. This has led to several complaints from citizens living in the urban areas surrounding ports, which is a very common situation, especially in countries facing the Mediterranean sea. Only in relatively recent years has an effort been made to improve this situation, which has resulted in a call for and financing of numerous international cooperation research projects, within the framework of programs such as EU FP7, H2020, ENPI-CBC MED, LIFE, and INTERREG. These projects dealt with issues and aspects of port noise, which is an intrinsically tangled problem, since several authorities and companies operate within the borders of ports, and several different noise sources are present at the same time. In addition, ship classification societies have recently recognized the problem and nowadays are developing procedures and voluntary notations to assess the airborne noise emission from marine vessels. The present work summarizes the recent results of research regarding port noise sources in order to provide a comprehensive database of sources that can be easily used, for example, as an input to the noise mapping phase, and can subsequently prevent citizens’ exposure to noise. Full article

Industrial energy accounts for a large percentage of global consumption and, thus, it is a target for decarbonization by renewable and in particular solar energy adoption. Low uncertainty simulation tools can reduce the financial risk of solar projects, fostering the transition to a sustainable energy system. Several simulation tools are readily available to developers; differences exist in the format of input data and complexity of physical and numerical models. These tools can provide a variety of results from technical to financial and sensitivity analysis, often producing significant differences in yield assessment and uncertainty levels. IEA SHC Task 64/SolarPACES Task IV—Subtask C aims to address the lack of standard simulation tools for Solar Heating of Industrial Processes (SHIP) plants. This article describes the collaborative work developed by the researchers participating in the task. The identification and classification of several currently available simulation tools are performed on the basis of their capabilities and simulation approaches. A case study of solar heat supply to a copper mining operation is defined, allowing a comparison of the results produced by equivalent simulation tools. The proposed methodology identifies the main sources of differences among the simulation tools, the assessment of the deviation considering a series of statistical metrics for different time scales, and identifies their limitations and bias. The effects of physical characteristics of SHIP plants and different simulation approaches are discussed and quantified. The obtained results allow us to develop a basic guideline for a standardized yield assessment procedure with known uncertainties. Creating this common framework could partially reduce the risk perceived by the finance industry regarding SHIP systems. Full article

The international shipping industry is the largest transportation system in the world. However, shipping stock prices were highly volatile during the 2020–2021 COVID-19 pandemic. The purpose of this study is to identify the causal relationships of the four dimensions (financial performance, bond financing, environmental, social, governance, and COVID-19) and 20 criteria affecting the sustainability of global shipping companies. The research scope includes a sample of nine listed international shipping companies accounting for 49% of the global market share with data collected from 2010 to 2020. Survey responses from 15 investment experts were also obtained. We applied a hybrid multiple criteria decision-making (MCDM) method integrating the Decision-Making Trial and Evaluation Laboratory (DEMATEL), analytic network process, and modified VlseKriterijumska Optimizacija I Kompromisno techniques to be the DANP-mV model to identify the causal relationships among the dimensions and criteria, providing ways of narrowing the performance gaps of shipping companies. The results indicate that financial performance is the main cause affecting COVID-19 and ESG practices. The ESG practices influence bond financing. The largest performance gaps across shipping companies include earnings per share (EPS), yield to maturity, corporate social responsibility (CSR), and timely delivery. The findings of this study suggest that shipping companies may focus on gross profit margin to improve EPS, term to maturity to enhance yield to maturity, social distancing policy to meet timely delivery, and the board size to enhance corporate social responsibility (CSR). The outcome of this study aids shipping companies in prioritizing their resources and investors in selecting shipping company stocks in response to COVID-19. Full article