Multimodal route choice in maritime transportation: the case of Korean auto-parts exporters

Woo, Su-Han, Kim, Sun-Nam, Kwak, Dong-Wook, Pettit, Stephen ORCID: https://orcid.org/0000-0001-7265-4079 and Beresford, Anthony ORCID: https://orcid.org/0000-0001-5368-2752 2018. Multimodal route choice in maritime transportation: the case of Korean auto-parts exporters. Maritime Policy & Management 45 (1) , pp. 19-33. 10.1080/03088839.2017.1344783

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Abstract

Global offshoring has increased the need for transport of half-finished goods and components, along with finished goods. The auto-parts industry in Korea has also entered the global market as Korean car manufacturers have started to build overseas factories. Maintaining cost competitiveness by minimising total logistics costs will thus be a critical strategy for the industry. This research compares the total annual costs of four feasible transport routes from Korea to the US using the inventory-theoretic model, which encompasses direct transport costs, in-transit carrying costs, and warehouse inventory costs. We apply this model to real transport data collected from a Korean auto-parts company. A static analysis shows that inventory costs can play a decisive role in altering the cost competitiveness of different routes. In addition, sensitivity and scenario analyses with changes in variables and the market situations reveal that the cost structure of each routes plays an important role in determining their relative cost competitiveness in varying market conditions.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Uncontrolled Keywords:	Auto-parts industry, Transport route choice, Inventory-theoretic model, Scenario analysis
Publisher:	Taylor and Francis
ISSN:	0308-8839
Date of First Compliant Deposit:	29 June 2017
Last Modified:	07 Nov 2023 00:13
URI:	https://orca.cardiff.ac.uk/id/eprint/101823

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