Factors Affecting Port Trade

2634 Words11 Pages
Chapter One Introduction Globalization and the entry of more nations to the World Trade Organisation (WTO) have fuelled growth in seaborne trade. A United Nations Conference on Trade and Development (UNCTAD 2009) report shows that the world‘s total merchandise trade value reached 8.02 billion tons of goods loaded, a volume increase of 4.8% over 2006. An increasing growth in world trade generally increases the demand for international shipping services (Michaelowa and Krause 2000). This has been witnessed in the container shipping industry in the past few decades. Before the economic recession began in 2008, trade growth had caused corresponding cargo container movements to increase in excess of overall economic growth for decades. The shipping…show more content…
However, few studies are identified to investigate factors influencing port performance. Murphy et al. (1991) employed factor analysis to group the influencing factors into two categories: customer service issues and freight handling capabilities, but they did not prioritise the factors, nor did they include external factors such as environmental factors, government support, location, etc. Wiegmans et al. (2008) classified different groups of factors, but they did not prioritise them, measure them or compare them. The factors were not quantified to see how important they were and how the performance were different between the factors except Tongzon and Heng (2005). Failing to…show more content…
Even when writers identified some factors, they failed to make sense of these factors, nor did they use them to explain port performance. The importance of factors influencing port performance, lack of previous research on comparative studies on factors influencing port performance between European and Asian ports, lack of studies on more informants engagement to avoid bias, lack of studies on quantifying and prioritising factors driving port performance, have resulted in knowledge gaps, which have motivated the research aim and objectives, stated

More about Factors Affecting Port Trade

Open Document