Prioritizing operational risks in container shipping systems by using cognitive assessment technique

Abstract

Purpose-This paper aims to propose a technique based on cognitive assessments to quantify identified operational risks from the perspective of container shipping or logistics system administrators. The results derived from the risk quantification could be used to prioritize risks as well as support the decision-making process in risk prevention and mitigation. Design/methodology/approach-This paper identified container shipping operational risks (CSORs) from a logistics perspective. A multivariate risk evaluation mechanism by fuzzy rules Bayesian network (FRBN) was established. An improved two-level parameter set based on the failure mode and effects analysis (FMEA) was used to support the input extraction process. By feeding cognitive assessments into the model, the identified risks are evaluated based on their utility values. An illustration example and a sensitivity analysis were carried out to justify and validate the proposed model. Findings-The highest positions in the prioritized list of CSORs in the case study are dominated by risks in the physical flow with the first three are piracy and terrorism, force majeure and port congestion. The results derived from the case study with the satisfaction of all pre-defined axioms proved the feasibility and illustrated the functionality of the proposed risk assessment and prioritization technique. Originality/value-Controlling risk is irrefutably a significant issue of container shipping and logistics management because of the inconsistency of risk definitions and the involvement of uncertainties. The proposed risk evaluation mechanism and the identified list of CSORs could be beneficial in system management, decision-making and reliability performance.

Risk identification and modeling for blockchain-enabled container shipping

“…Literature review has been used by scholars as a method for the identification of CSORs (Nguyen and Wang, 2018; Chang et al , 2015). This study looks into (1) The literature of blockchain technical research; (2) The reports from blockchain adopters, solution providers and specialized institutions; and (3) Observed incidents of blockchain applications and CSORs, to identify the potential HEs that may occur with blockchain integrated systems.…”

“…sensors).Unexpected decrease in transport quantity – 3_QaDe : This CSOR was identified by Chang et al (2015) and can be triggered by the situation of information asymmetry as the competitors might have better information to make their decisions in freight offering.Detainments and other legal liabilities related to cargo content – 3_DmLi : Chang et al (2015) and many events, in reality, indicated that the content of cargo, when being hidden or misdeclared could cause ship detainments, delays of voyages, port skipping and other legal liabilities to ocean carriers or freight forwarders.Cargoes accidents – 3_CgAc : HEs related to cargoes inside containers are various. Apart from well-known accident types such as fires and explosions, other phenomena are also possible to happen, such as cargo liquefaction, leakage and corrosion (Tseng et al , 2013; Nguyen and Wang, 2018). …”

“…Cargoes accidents – 3_CgAc : HEs related to cargoes inside containers are various. Apart from well-known accident types such as fires and explosions, other phenomena are also possible to happen, such as cargo liquefaction, leakage and corrosion (Tseng et al , 2013; Nguyen and Wang, 2018).…”

“…Maintaining the performance of container shipping systems is an essential topic of research. Container shipping operational risks (CSORs) such as cyberattacks, cargo accidents and payment disputes profoundly affect different flows of container shipping systems as well as the whole supply chain (Nguyen and Wang, 2018; Ivanov and Dolgui, 2020). Among them, information risks are gaining momentum along with the process of digitalization and automation, which is observable in reality through the tragic events in the container shipping industry (Ivanov et al , 2019; Nguyen et al , 2019; Dolgui et al , 2020; Nguyen, 2020).…”

Exploring and Validating Container Operational Risk Scale in Container Shipping: The Case of Ethiopian Shipping and Logistics Service Enterprise

“…However, they have not come to a common consensus on container operational risk dimensions [11]. The extant literature shows that the lack of management commitment of the shipping company to container handling is a typical dimension for container operational risk [15][16][17]. Drewry [18] indicated that the risk factors related to container logistics operations dimensions could be categorized into seven themes: booking and invoicing errors, documentation, errors in customs regulatory compliance and security compliance, theft Sustainability 2021, 13, 9248 2 of 21 and cargo loss or damage, strikes and transport congestions, piracy, and terrorist attack.…”