Evaluation of factors for carrier selection in the China Pearl River delta

Abstract

The efficient integration of logistics modes is critical for international cargo shipping. The local transportation connecting to the export port then plays a vital role in such integration. This paper investigates the problems of carrier selection in the China Pearl River delta area, with respect to international shipping. The analytical hierarchy process (AHP) model is constructed based on a comprehensive industrial interviews and statistical analysis. Rather than simply ranking the given alternatives, we use AHP is used to analyse the weakness and strength of impacting factors in carrier selection. The model is implemented under different types of shipper. Seven criteria are statistically summarized from the questionnaire for evaluating eight different modes. The results are useful to those liner companies serving the PRD region in relationship to port selection and fleet deployment.

Competitiveness of the Liner Operators: Methodological Issues and Implications

“…AHP (analytic hierarchy process) was employed by a number of studies to analyse importance that the transport freight buyers' attached to service criteria [26] and the factors impacting ocean carriers' competitiveness [27].…”

“…Most of the past studies have analysed the carrier selection factors by combining the perspectives of the shippers and freight forwarders together [20,27,33]. However, it has been pointed out by researchers that the shippers and freight forwarders have different views on the important factors observed when selecting the ocean container carriers [34].…”

“…However, the in-depth statistical analysis in a number of studies has identified service quality and carriers' customer service performance as the factors influencing the choice of the shippers [27,30]. Similarly, the empirical results of Shang and Lu [42] have identified customer relationship management and carrier sales representative expertise as the critical influential factors impacting the choice of carriers.…”

“…Pairwise comparisons of the 15 factors mentioned in Table 2 were conducted under the AHP. Wong, Yan and Bamford [27] stipulated that AHP is an effective approach in ranking a given set of alternatives under hierarchically structured criteria involving both objective and subjective judgements. The 15 criteria were categorised into five influential factors based on the literature review as following: service quality, freight rate, handling equipment, schedule, and information technology.…”

“…A number of researchers have used AHP to analyse the important factors affecting the choice of carrier [26,27,37,43], the authors have employed AHP to reduce carrier selection criteria in major factors. Pairwise comparisons of the 15 factors mentioned in Table 2 were conducted under the AHP.…”