The purpose of this paper is to analyze the differences and similarities among shipping firms in the German and the Greek maritime clusters. In this context, market, financial, organizational, human resources and management related issues are identified and discussed.
The two major European players in the global shipping market, namely the German and the Greek shipping firms, are currently facing several enormous challenges. The impact of global economic downturn, the crisis in the main shipping sectors and the changes in the pattern of world trade all profoundly affect the maritime transport industry (De Monie, Rodrigue und Notteboom 2011). However the Greek shipping companies seem to manage their businesses in the crisis more successfully than their German competitors. Therefore a report on the differences and similarities among shipping firms in the German and the Greek maritime clusters is of high interest. Even though both players focus on different segments in the maritime markets, that have different rules and conditions, the main parameters and aspects of their businesses will be compared. The focus of this report lies on market, financial, organizational, management and human resources related issues. Since these issues mainly touch strategic management decisions, this report will not go to deeply into the operational aspects of the businesses such as using Key Performance Indicators (KPI´s) or other methods and applications that would serve these types of issues. The use of KPI´s would also demand the same source of their collection to have an objective analysis, but since both players operate on different markets, only a small proportion of their KPI´s would be comparable. Furthermore this paper will focus purely on companies that operate ships. Hence, ports, hinterland-logistics, education- or administration-facilities belonging to the maritime cluster will not be taken into account. After the German and Greek shipping firms have been compared, the report will highlight aspects that differentiate the particular maritime clusters and conclude with similar short prospects both players likely will face in the future.
Table of Contents
1. Introduction
2. German shipping firms
2.1 Market-Focus
2.2 Finance
2.3 Organizations and Management
2.4 Business Model
2.5 Human Resource Management
2.6 Fleet
3. Greek shipping firms
3.1 Market-Focus
3.2 Finance
3.3 Organizations and Management
3.4 Business Model
3.5 Human Resource Management
3.6 Fleet
4. Contrast
4.1 Different Businesses
4.2 Shared Challenges
5. Conclusion
6. Sources
Research Objectives and Key Topics
This paper aims to provide a comparative analysis of the German and Greek maritime clusters by identifying key similarities and differences regarding their market approach, financial structures, organizational frameworks, and human resource management. The study seeks to understand how these two major European shipping players navigate global economic crises and specific industry challenges.
- Comparative analysis of German and Greek shipping business models.
- Evaluation of financial structures (e.g., KG-system vs. family-owned equity).
- Impact of organizational management on operational flexibility.
- Strategies for human resource management and crewing.
- Identification of common future challenges in the maritime sector.
Excerpt from the Book
2.2 Finance
Since the 1970´s, the model of a German limited partnership, commonly known by its acronym KG (Kommanditgesellschaft), played a major role in German ship finance. Especially in the liner-business KG models have been used to raise private equity for acquiring assets as single projects. KG funds are tax-driven structures that acquire funds from private investors participating in single-purpose companies and leveraged by bank loans. The KG structure has been exempted from corporate tax and thus considered to be a cheaper source of financing than banks (UNCTAD 2014, 79). The economic and financial crisis from 2008 with its impact on the maritime sector has lead to a liquidity-crisis in the KG system and many German projects have been collapsing since then. As a result many investors have lost faith in the traditional KG financing model for shipping investments and are therefore seeking complementary or alternative modes and sources of ship financing (KPMG 2012, 6). The majority of KG-investors does not come from the shipping-industry itself and is not interested in the actual operations of the ships. Their investment horizon is typically between three and seven years and they long for more or less fixed returns from the beginning (UNCTAD 2014, 82). This approach has a direct impact on the management of the assets. This will be analyzed in the next chapter of this report.
Summary of Chapters
1. Introduction: Presents the research scope, focusing on the differences and similarities between German and Greek shipping firms amidst global economic challenges.
2. German shipping firms: Examines the dominance of container liner-services, the impact of the KG-financing model, and the resulting organizational and operational management structures.
3. Greek shipping firms: Analyzes the focus on bulk-carriers and tankers, the prevalence of family-owned capital structures, and the high flexibility in business operations.
4. Contrast: Compares the distinct business models and mindsets of both clusters while identifying shared future obstacles such as environmental regulations and capital acquisition.
5. Conclusion: Summarizes the comparative findings, noting the relative resilience of Greek firms while highlighting the common long-term challenges for both clusters.
6. Sources: Provides a comprehensive list of literature, reports, and data sources used for the analysis.
Keywords
Maritime clusters, Shipping industry, German shipping firms, Greek shipping firms, KG-system, Liner-services, Bulk-carriers, Tankers, Ship finance, Human resource management, Maritime regulation, Global shipping market, Fleet development, Strategic management, Economic crisis.
Frequently Asked Questions
What is the primary focus of this assignment?
The paper focuses on analyzing the differences and similarities between the German and Greek maritime clusters, particularly regarding their market approach, financial models, and strategic operations.
What are the core thematic areas covered in the report?
The report explores market-focus, financial structures, organizational and management strategies, human resource management, and the evolution of merchant fleets in both countries.
What is the main objective of the author?
The primary goal is to determine why Greek shipping companies appear to manage their business more successfully during crises compared to their German counterparts, using a comparative analysis.
Which scientific methods are employed?
The research relies on secondary data analysis, utilizing industry reports (e.g., VDR, UNCTAD), academic literature, and corporate information to compare the two maritime clusters.
What content is addressed in the main part?
The main part is divided into individual chapters analyzing the German and Greek sectors separately, followed by a comparative section evaluating distinct business models and shared future challenges.
Which keywords characterize this paper?
Key terms include maritime clusters, KG-system, liner-shipping, bulk-carriers, ship finance, and environmental regulations in the maritime transport industry.
How does the KG-system influence German shipping companies?
The KG-system creates a reliance on private investors seeking fixed returns, which leads to rigid management structures and often separates the asset-owners from the operational reality of the ships.
Why are Greek firms described as having more flexibility?
Greek firms are typically family-owned, allowing for faster decision-making and a stronger focus on operational efficiency in the spot market, rather than being bound by the complex administrative barriers of the KG-system.
What role do environmental regulations play for both clusters?
Environmental regulations and the establishment of Emission Control Areas (ECAs) represent a major long-term challenge, forcing both clusters to invest in modernizing fleets or retrofitting older vessels to remain compliant.
- Quote paper
- Diplom Kaufmann Hans-Christian Stockfisch (Author), 2014, International Maritime Business. Comparison of the German and the Greek maritime clusters, Munich, GRIN Verlag, https://www.grin.com/document/286516
