Abstract
Serving as the backbone of the international trade, the shipping industry is transforming towards sustainability or environmental, social, and governance (ESG). However, this transformation towards sustainability can cause new and complex challenges and risks to the shipping companies given that the shipping industry is a traditional B2B industry. This research identifies 45 sustainability risks confronted by container shipping companies comprising economic, social, and environmental perspectives. A Bayesian network model is developed to assess the container shipping company's overall sustainability performance. Mitigation strategies are also designed. Theoretically, this research establishes a customised evaluation and mitigation framework for container shipping companies’ sustainability risks considering a decision maker's risk appetite. The five most influential risks are ‘weak organisational governance’, ‘insufficient seafarer training & education’, ‘weak social sustainability culture’, 'maritime accident', and ‘weak environmental sustainability culture’. Managerially, this research shows that the most cost-effective solution for container shipping companies is to implement or improve internal control mechanisms.
| Original language | English |
|---|---|
| Article number | 103999 |
| Journal | Transportation Research, Part D: Transport and Environment |
| Volume | 126 |
| DOIs | |
| Publication status | Published - Jan 2024 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2023 Elsevier Ltd
ASJC Scopus Subject Areas
- Civil and Structural Engineering
- Transportation
- General Environmental Science
Keywords
- Bayesian network
- Container shipping
- Cost-effective mitigation strategy portfolio
- Risk management
- Sustainability performance
- Sustainability risks