Resilient route selection of oversized cargo transport: the case of South Korea–Kazakhstan

• DOI: https://doi.org/10.1108/IJLM-11-2020-0445
• Published date: 20 September 2021
• Date: 20 September 2021
• Pages: 410-430
• Subject Matter: Management science & operations,Logistics
• Author: Wen Lu,Su-Beom Choi,Gi-Tae Yeo

Resilient route selection of

oversized cargo transport: the case

of South Korea–Kazakhstan

Wen Lu

Yantai University, Yantai, China, and

Su-Beom Choi and Gi-Tae Yeo

Graduate School of Logistics, Incheon National University,

Incheon, Republic of Korea

Abstract

Purpose –Resilient route selection for oversized cargoes, one of the general bulk cargoes, has not

been adequately optimized in terms of using the Arctic route. This study solves the problem of selecting the

optimal shipping routes for oversized cargoes from Busan (South Korea) to Balkhash (Kazakhstan).

Design/methodology/approach –The study used the consistent fuzzy preference relation (CFPR) method,

which is used to solve multi-criteria decision-making (MCDM) and uncertainty problems, to tackle the route

selection. This method involves three procedures: first, the critical factors and alternative routes were obtained

by the previous literature and an in-depth interview of experts of oversized cargo-handling with more than

20 years of working experience; second, the weightings for each critical factor were identifiedusing the CFPR

calculation process and third, alternative routes were evaluated using weighted critical factors.

Findings –The NorthernSea Route (NSR)combined with the inlandwaterways of Russiaand Kazakhstan was

first suggestedfor bulk carriersthat handle oversizedcargoes. The NSR couldbe a suitable route from Busanto

Cape Kamenny ofthe Russian transshipment seaport, where oversized cargoes willbe transferred to the river

barge at CapeKamenny, covering 4,913 km fromthe latter to Balkhash of Kazakhstan via the Ob/IrtyshRiver.

Practical implications –This study equips stakeholders in route selection for cargoes with strategies and

methods to improve transportation efficiently and enhance shipping routes betw een Asia and the

Commonwealth of Independent States (CIS). In addition to oversized cargoes, coal and timber from Russia

can be transported to Asia using inland waterways and the NSR, which can also be used to transport plant

equipment for petroleum refineries among Asian countries.

Originality/value –This is the first study to evaluate the suitability of the Artic route for oversized cargoes

from South Korea to Kazakhstan. It provides a comprehensive evaluation framework of multimodal shipping

routes and offers references for decision-makers when dealing with similar problems.

Keywords Route selection, Crucial factor, Consistent fuzzy preference relation (CFPR), Maritime transport,

Northern Sea Route (NSR)

Paper type Research paper

1. Introduction

Resilience is a multidimensional and multidisciplinary concept derived from materials

science. It refers to materials’ability to recover their original form after facing deformity.

According to the supply chain literature, it is impossible to identify or avoid all supply chain

related risks; consequently, resilience is in consonance with supply chain risk and

vulnerability (Christopher and Peck, 2004).

Over the last few decades, the academic community has paid increasing attention to

supply chain resilience (SCR) (Tukamuhabwa et al., 2015;Brusset and Teller, 2017). SCR has

IJLM

33,2

410

This paper forms part of a special section “Resilient supply chains through innovative logistics

management”, guest edited by Peggy S. Chen and Jiangang Fei.

This research was supported by the 4th Educational Training Program for the Shipping, Port and

Logistics from the Ministry of Oceans and Fisheries of Republic of Korea.

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0957-4093.htm

Received 22 November 2020

Revised 14 May 2021

28 July 2021

Accepted 29 August 2021

The International Journal of

Logistics Management

Vol. 33 No. 2, 2022

pp. 410-430

© Emerald Publishing Limited

0957-4093

DOI 10.1108/IJLM-11-2020-0445

been defined by various researchers (Christopher and Peck, 2004;Ponomarov and Holcomb,

2009;Brusset and Teller, 2017;Rajesh, 2019;Behzadi et al., 2020). Among them, Ponomarov

and Holcomb’s (2009) definition is the most widely accepted. According to them, SCR is “the

SC adaptation capability to prepare for unexpected events, respond to interruptions, and

recover from them to maintain continuity of operations at the desired level of connection and

control over the structure and function.”The same theme can be found in the maritime

shipping industry, where supply chain resilience is the capacity to maintain the functions and

outcomes of each transportation journey (Ponomarov and Holcomb, 2009). If one of the

transportation routes encounters uncertainties or interruptions, there should be a backup

alternative to maintain the supply chain’s resilience.

Owing to the recent increase in competition among shipping companies and a decreasing

shipping economy affected by the downturn in the shipping cycle, shipping costs have increased

as additional ships have become more expensive to acquire and operate (Balakrishnan and

Karsten, 2017). To address these challenges and maximize profit with their assets, shipping

companies have developed two key methods: develop bigger vessels and determine optimal

sailing routes (Balakrishnan and Karsten, 2017). It is, however, expensive and challenging to

build bigger vessels, and not all ports along the shipping routes can handle such vessels; hence,

focus is on finding shorter sailing routes between Europe and the Far East to minimize costs. In

addition, this option triggers the cause effect between the new shipping routes and the split of

maritime freight flows at the international level (Russo et al.,2014,2016;Jong et al.,2013).

Most previous studies suggest routing through the Arctic Ocean to reduce the travel

distance, lower the fuel costs and thus lower the total costs (Liu and Kronbak, 2010;Schoyen

and Brathen, 2011;Hong, 2012;Lasserre, 2014;Pierre and Olivier, 2015;Zhang et al., 2016a,b;

Theocharis et al., 2018).

To date, the trade from Asia to Europe depends on the shipping route through the Suez

Canal (Schoyen and Brathen, 2011). The Northern Sea Route (NSR) navigation distance is

40% less than that of the Suez Canal Route (SCR) (Liu and Kronbak, 2010;Schoyen and

Brathen, 2011;Pierre and Olivier, 2015). The approximate navigation distances of the North

West Passage (NWP), NSR and SCR between Northwest Europe and the Far East are 8,600;

7,200 and 11,400 nautical miles, while the relative distances are 119%, 100% and 158%,

respectively (Schoyen and Brathen, 2011).

Global economics and trade are becoming increasingly complex; hence, chances of supply

chains encountering varied kinds of disruptions are also increasing (Chowdhury and

Quaddus, 2017). For example, the SCR was discontinued due to the 1967–1975 war (Gradus

and Stern, 1977;Queguiner, 1978;Smith and Jaleel, 2019); the Suez Canal was inoperative for

eight years due to which shipping companies in Europe, Asia and Africa faced several issues

(Gradus and Stern, 1977), and maritime transport –one of the most critical components of

supply chains –faced issues like increasing fuel costs, climate change and other unexpected

disruptions. Consequently, organizations need to adopt resilient business models and

strategies to tackle disruptions and uncertainties that arise due to environmental changes

and other factors (Juttner and Maklan, 2011).

Maritimeshipping faces numerousuncertainties(Pantuso et al.,2014;Wu et al., 2021). Hence,

the resilience of the selected shipping route is vital in dealing with various unexpected

disruptions. As mentioned earlier, the route through the Suez Canal is the most popular

shippingroute from Asia to Europe (Schoyen and Brathen,2011). However, the Suez Canalhas

experienced disconnection due to war (Gradus and Stern, 1977;Queguiner, 1978;Smith and

Jaleel, 2019) and stranded cargo ships(Suez Canal Authority, 2021),meaning risks are taken by

relyingon one shipping route throughthe Suez Canal. Therefore,resilient action plans basedon

developing a resilient alternative route to increase the resilience of the shipping routes are

necessary. Due to global warming, the melting ice in the Arctic area has extended the

navigationseason and prompted thefeasibility of the NSR. Gao and Lu (2019)argued that once

Oversized

cargo transport

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