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Containership size and quay crane productivity: empirical evidence from Busan New Port

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Maritime Economics & Logistics Aims and scope

Abstract

There is an unfolding phenomenon in the liner shipping sector that the cargo-carrying capacity of containerships continues to increase since the 1980s. While the main driver of the ship size increase is to achieve economies of scale by reducing unit costs, a plethora of studies in the maritime field have pointed out to the diseconomies of scale in port and along the supply chain. It is therefore of utmost importance to investigate the impact of the increase in the containership size on port operations. In this regard, this paper highlights the relationship between ship size and quay crane productivity by analysing a monthly dataset obtained from 5 container terminal operators in Busan New Port in the period 2013–2023. The impact of ship size on quay crane productivity is estimated in panel regressions controlling for berth and yard occupancy, container throughput. Consistent with the theoretical expectations in the earlier maritime literature, it is found that quay crane productivity is negatively affected by containership size and this relationship is robust also when yard congestion is considered as a controlling factor.

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Notes

  1. Shipping Intelligence Network (https://sin.clarksons.net), Clarkson Research, accessed on 3rd October 2023.

  2. Container Statistics of Busan Port, Busan Port Authority, each year.

  3. The number of containers, out of the total number of containers onboard, unloaded at a certain port.

  4. 2022 Container Statistics of Busan Port, Busan Port Authority.

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Acknowledgements

The authors would like to sincerely thank the reviewers, the editor and the Editor-in-Chief for providing valuable feedback. The paper has greatly benefited from critical comments and constructive suggestions made by them. All remaining errors are our own. This study originates as part of Byungkwon Jeong’s master’s degree dissertation at the Korea Maritime and Ocean University. The study has been further developed and revised after the completion of the dissertation. The work was supported by the 4th Maritime Port Logistics Training Project of the Ministry of Oceans and Fisheries (Republic of Korea).

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Jeong, B., Kim, C.Y. Containership size and quay crane productivity: empirical evidence from Busan New Port. Marit Econ Logist (2024). https://doi.org/10.1057/s41278-024-00286-0

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