Shipping Logistics in the Companies and the Cooperation of the Participants - Research Proposal Example

?SHIPPING LOGISTICS IN UK Reg. No Module s This paper presents a research proposal into the shipping logistics in UK. Shipping logistics are described as all the activities undertaken to ensure timely and safe delivery of goods from the source to the destination. The topic is critical given that shipping sector is critical in international trade and employs a significant population. The objectives of the research are to identify security issues experienced in shipping, handling of goods at the port and assess whether there are any capacity constraints faced when shipping. Data for the research will be gathered from both primary and secondary data where all participants will be selected randomly to reduce biasness in the research. Questionnaires will be used to help in data collection where telephone interviews will be used to help reduce cost of travelling. After data has been collected it will be analyzed using computer programs such as Ms. Excel and SPSS and presented using tables and graphs. Confidentiality will be observed as a strategy for enforcing ethics sin research. Background of the Research The term shipping has changed from what it was associated with in the past to include any form of transport moving goods from one point to another (Lun, Lai and Cheng, 2010, p. 12). Previously, the term the term was associated with water borne transport. Consequently this extended meaning makes the industry a complex and dynamic. Logistics is described as the management of the flow of commodities from the point of production to target point with an aim of meeting the needs of customers and companies. Logistics calls for assimilation of information, inventory, transportation, warehousing, handling and packaging of materials and security of the goods. According to Fremont (2009, p. 1), for the last 50 years, containerization has turned into the prop of globalization. Additionally, this period has seen increased international trade and consequently this calls for efficient shipping logistics. Companies and businesses demand for better synchronized shipping activities in terms of location and space by development of logistics chains. The total value of the UK logistics industry was $105.7 billion in 2010 having grown by 9.9 percent in the 2009-10 fiscal years. This sector employs thousands of people and supports a significant proportion of the country’s economy. However, the sector is facing various constrains which may impede the efficient discharge of its responsibilities to different stakeholders. One primary concern in the sector is the security threats caused by pirates and increased terrorism cases (Askins, 2012, p. 15). The other issue facing the UK shipping sector is that fact that with enlargement of European Union, competition has increased with the newer member states to the EU who have lower operational costs. Moreover, in the late 1990s, there was increased demand for bigger containers and tanker ships overstretched the capacity of the available ports thereby impeding trade. In light of these developments in this sector, it is critical to carry out a research into the shipping logistics in UK to understand the processes and procedures implemented by different companies to ensure smooth trade between UK and other countries. Aim and Objectives of the Research The aim of this research is to understand shipping logistics in United Kingdom; the process, procedures and policies that control shipping in UK. Moreover, the research will help understand any impediments to the shipping logistics in UK and the problems faced by shippers in UK in relation to other shippers in the European Union. Objectives of the research 1. To find the security issues facing shippers in UK 2. To assess handling of goods at the port in UK 3. To investigate whether there is adequate capacity for shipping in UK Justification of the research Findings from this research will be help regulatory authorities make better informed decisions on the shipping sector. In addition, this research is critical for shipping companies learn new strategies that will help them compete favorably with other companies within the European Union. Literature Review Most international transporting companies describe themselves as logistic operators with the ability of offering customized services to their shipping customers (Fremont, 2009, p. 1). On the other hand, logistics theory argues that the organization and economic benefits of creating an integrated logistics chain helps create value for all dependants of the shipping chain. Fremont (2009, p. 1) argues transportation no longer matters, but what really matters is the organization of the shipping logistics. The inherent risks of sea transport is usually higher than use of inland modes of transport since this requires use of numerous forms of transport all having varying operating outlook (Song, Cherrett and Guan, 2011, p. 231). Generally, transportation within the European continent is usually smooth despite some hitches especially following the Twin Tower incident in America. For instance, in November 2002, there was high alert in the ports following threats of terrorist attack which saw an increase in the truck traffic as users avoided ships (East, 2002, p. 56). Threats of attack continue to dog this sector as pirates and terrorists threaten operations. Following deterioration of security in the shipping sector, the UK Foreign Affairs Committee (FAC) concluded that it will allow armed guards on UK vessels and came up with guidelines to be followed by maritime security companies in the certification process (Askins, 2012, p. 12). Following the issuance of the guidelines, the UK Home Office to explain those guidelines which have lead to criticism from ship-owners who assert that this may create difficulties for them when seeking to use armed security force and especially when they seek to do so within a short time. The guideline defines various procedures which must be adhered to before deploying armed security in the ship which they argue that in practical terms may require three months thereby affecting the shipping schedule. At from security concerns, there is also increased alarm on capacity constraints within the British ports (Putzger, 2003, p. 31). In 2003 for instance, Associated British Ports raised an alarm warning that UK will diminish its deep sea container capacity by 2005 (Putzger, 2003, p. 31). Other shippers also echoed similar concerns and warned that they may be forced to shift their operations to other European countries. This was occasioned by delays at the country’s biggest port; Felixstowe (Putzger, 2003, p. 32). This led to different ports developing ambitious plans to increase their capacity. Use of feeder servicers in their shipping logistics was estimated to increase the amount paid by shippers by US $ 450Million annually (Putzger, 2003, p. 32). Freight Transport Association was also opposed to use of feeder services as this would compromise the quality of services offered to clients. Presently, shipping companies pay port operators and cargo handler to handle goods at the port (Wright, 2006, p. 1). However, the European Commission proposed a directive which would ensure that shipping lines organize their own staff to handle goods at the ports (Wright, 2006, p. 1). This has been met by fierce opposition from trade unions although this holds a vital role in ensuring safe handling of goods at the ports. The opposition is sparked by a debate on whether there is actual demand for self-handling. In addition, the directive by the European Union called for opening up of some services such as provision of pilots and towing by tugs (Wright, 2006, p. 1). He writes that there is no consensus on whether there is efficiency within the UK ports system. Methodology This section will describe specific strategies that will be used to answer the research questions; therefore it will discuss the research participants, design and data collection methods. In addition, this section will explain the sources of data for the research and data analysis report. Furthermore, the section will outline the expected constrains to the research and ethical issues involved. Sampling Criteria This research will involve shipping companies, companies using shipping services. Shipping companies will be sample based on random sampling since they are expected to give in-depth information into their shipping processes and procedures. Random sampling has been chosen as this will help eliminate biasness in the study. The companies selected must be operating within UK serving both import and export markets although their size will not be considered. Shipping companies’ clients will also be involved in the research to rate the services they receive from these companies. The clients to be involved in the research will also be chosen randomly as way of eliminating biasness. To identify the clients and companies, to be included in the research, a list of companies and clients relying on shipping services will be compiled and later companies selected randomly. This will be achieved by assigning numbers to the applicants and picking them randomly. Research design The research will be based on both qualitative and quantitative research. Qualitative data will be collected to assess the customers’ views on the services received from shipping companies. Moreover, qualitative data will be gathered from a review of various online and hardcopy on the materials on shipping in UK. This will help identify problems being experienced in the sector and provide a general background of the research topic. Secondary data will therefore come from journals, books, company reports and online sources. The other variable to be assessed through qualitative data is on the core logistics considered by shipping companies. This is critical since different companies may view different aspects as being critical on their operations. Companies will provide quantitive data on the security measures they implement, whether they use third parties to handle goods and the number of armed security employed during shipping of goods. The other quantitive data collected will be on the delayed delivery of goods in terms of time and place. Due to handling issues, data will from customers on the number of damaged goods and in case there are complains on damaged goods. Research Instruments Questionnaires will be developed for the research. The questionnaire will have questions that require both quantitative and qualitative answers. Qualitative data will be used to provide in depth information into the research while quantitive data will be used for the analysis. Moreover, while going through secondary data, questions will be formulated in order to answer research questions. Research Procedure In collecting primary data, telephone interviews will be used on companies and clients who rely on shipping. This has been selected since it is cheaper and the research participants are dispersed. Secondary data will be collected from internet sources, library search and assessment of company reports. Data Analysis Quantitive data will be analysed using tables and graphs. On the other hand, qualitative data will be structured into topics that deal will shipping logistics in UK. Computer software such as Excel and SPPS word will be used in quantitative data analysis. After structuring quantitive research into different topics, it will be studied to identify relationships with the best shipping logistic management services offered by other companies. Research Limitations and Ethical Issues The research will be may be constrained by the fact that there are so many companies involved in shipping logistics and therefore accessing them may be hard. In addition, the research may also face limited ability of selecting participants given that shipping sector involves varied customers some of whom are occasional customers while others are frequent. The other limitation of the study is that the research depends on the sincerity of the participants and in some cases companies and customers may not be willing to disclose information on the goods they deal with. Another limitation of the research is that it relies on the cooperation of the participants which cannot be controlled. Confidentiality will be upheld in the research since it unethical to disclose participant’s information. Moreover, the research will ensure that there is no biasness in the research when sampling participants and when administering questionnaires. Bibliography Askins, S. 2012, "Lethal force in hijack situations questioned as UK Govt agrees to armed guards on ships", Legal Week, vol. 14, no. 7, pp. 15-15. East, L. 2002, "New rules mean higher costs in the UK", International Financial Law Review, , no. 02626969, pp. 55-56. Fremont, A. 2009, Empirical Evidence for Integration and Disintegration of Maritime Shipping, Port and Logistics Activities, Paris, France, Paris. Lu, Y., Lai, K., and Cheng, T., 2006, International Trade and Shipping, McGraw-Hill, 2006, pp 1-50. Putzger, I. 2003, "Global ambitions: United Kingdom: trade growth with one of our oldest trading partners should get back on track in 2003. Can the UKs capacity-constrained ports handle the increased load?", Canadian Transportation Logistics, vol. 106, no. 1, pp. 30-32. Song, L., Cherrett, T. & Guan, W. 2011, "Implications of collection/delivery points for transport and logistics", OR Insight, vol. 24, no. 4, pp. 231-255. Wright, R. 2006, Left and right unite in opposition to docks directive An unlikely combination of forces is likely to scupper European Commission plans to liberalise the industry, writes Robert Wright, London (UK), United Kingdom, London (UK), pp. 1 Read More