Defining maritime logistics and its value

Maritime transportation, as a central integrated component of global logistics systems, has to provide not only transport-related services but also other related and wider logistical services in a more efficient and effective manner. The maritime transport system deeply involved in the entire logistics flows is often referred to as 'maritime logistics'. The main value of maritime logistics has been recognized as achieving a high rate of both operational efficiency (such as reducing lead time and business costs) and service effectiveness (such as flexibility, responsiveness and reliability in the service). Maximizing the maritime logistics value and successful integration of its value into global logistics, therefore, become a critical strategic objective of maritime industry. Despite its importance, a systematic approach to defining maritime logistics and its value creation from a perspective of industry professionals remains relatively untouched.

This chapter aims to provide a precise understanding of the concept of maritime logistics (including definition and main activities of maritime logistics) and a guideline for value creation of maritime logistics system. The chapter will mainly address the following:

• the importance of maritime transportation in an entire logistics system;
• definition of maritime logistics;
• main activities of maritime logistics;
• the process of maritime logistics;
• definition of maritime logistics value and its significance; and
• strategic implications for maritime logistics operators.

As the main purpose of this chapter is to systematically clarify the current situation in the maritime transport and logistics industry, this is an exploratory study underpinned by a comprehensive literature review.