Transshipment hub selection from a shipper's and freight forwarder's perspective

Area of Science:

• Logistics and Supply Chain Management
• Transportation Geography
• International Trade Policy

Background:

• Transshipment hubs are critical for global logistics, impacting cost control and service reliability for shippers and freight forwarders.
• The selection process is influenced by transport modes (sea/air) and the company's country of origin.
• Understanding stakeholder priorities is essential for effective hub selection.

Purpose of the Study:

• To identify and prioritize critical factors in transshipment hub selection.
• To assess the competitiveness of transshipment hubs using a quantitative approach.
• To analyze the influence of country of origin and transport modes on hub selection.

Main Methods:

• Focus group discussions to identify qualitative and quantitative selection factors.
• Analytic Hierarchy Process (AHP) to determine factor importance and assess hub competitiveness.
• Empirical analysis based on the direct transportation link policy between Mainland China and Taiwan.

Main Results:

• Customs regulations, government policies, and connectivity were identified as overriding factors in transshipment hub selection.
• Despite proximity and shorter distances, these policy and infrastructure elements significantly influence hub preference.
• The study highlights the complex interplay of factors beyond simple geographical advantage.

Conclusions:

• Transshipment hub selection is a multi-faceted decision driven by strategic considerations beyond mere proximity.
• Government policies and robust connectivity are paramount for a hub's sustained competitiveness.
• Logistics stakeholders must consider a comprehensive set of factors for optimal transshipment hub selection.