Gul Denktas and Guldem Cerit

8/8/2019 Gul Denktas and Guldem Cerit

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A FOCUS GROUP RESEARCHA FOCUS GROUP RESEARCHON COMPETITIVE POWER OFON COMPETITIVE POWER OFDRY BULK FLEET OF TURKEYDRY BULK FLEET OF TURKEY

Gl DENKTAS, A. Gldem CERITGl DENKTAS, A. Gldem CERIT

Dokuz Eylul UniversityDokuz Eylul UniversitySchool of Maritime Business andSchool of Maritime Business and

ManagementManagement,Izmir/TURKEY,Izmir/TURKEY


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A GENERAL OVERVIEW:A GENERAL OVERVIEW:

WORLD DRY BULK SHIPPINGWORLD DRY BULK SHIPPING

Demand for shipping services is one derivedDemand for shipping services is one derivedfrom the demand for international tradefrom the demand for international trade(Stopford 1997) and dry bulk shipping takes(Stopford 1997) and dry bulk shipping takesan important share from demand foran important share from demand forshipping industry.shipping industry.

The raw materials that play an important roleThe raw materials that play an important rolein the economies of industrialized countriesin the economies of industrialized countries

are hardly found in the places where they areare hardly found in the places where they aremostly needed (Stopford 1997), so there hasmostly needed (Stopford 1997), so there hasalways been an important demand for dryalways been an important demand for drybulk shipping services.bulk shipping services.


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World Seaborne Dry Bulk TradeWorld Seaborne Dry Bulk Trade

International seaborne trade of major dry bulkInternational seaborne trade of major dry bulk

commodities increased from 448 million tonnes tocommodities increased from 448 million tonnes to1.587 million tonnes in years between 19701.587 million tonnes in years between 1970--2004. The2004. Thefive dryfive dry--bulk tradesbulk trades iron ore, coal, grains,iron ore, coal, grains,bauxita/alumina and rock phosphatebauxita/alumina and rock phosphate recordedrecorded 7.67.6%, reaching 1.59 billion tons%, reaching 1.59 billion tons (UNCTAD 2005).(UNCTAD 2005).

The share of dry cargo shipments in world seaborneThe share of dry cargo shipments in world seabornetrade was 65.7 % of total goods loaded during thetrade was 65.7 % of total goods loaded during theyear (UNCTAD 2005).year (UNCTAD 2005).

Whilst world trade has grown,Whilst world trade has grown, the relative importancethe relative importanceof the Asia Pacific regionof the Asia Pacific region as a key driver of thatas a key driver of thatgrowth has increased significantly, in part reflectinggrowth has increased significantly, in part reflectingthe globalisation of trade and the industrialisation ofthe globalisation of trade and the industrialisation ofChina. In major bulk commodities, total cargo growthChina. In major bulk commodities, total cargo growthbetween 1989 and 2003 was approximatelybetween 1989 and 2003 was approximately 470470

million tonnesmillion tonnes (Clarksons Research 2004).(Clarksons Research 2004).


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0

50

10 0

15 0

20 0

25 0

30 0

35 0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Million

Dw

Figure 1: World Dry Bulk Fleet (Source: Platou Report 2004)

World Dry Bulk Fleet (1994-2004)


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DRY BULK SHIPPING POTENTIAL OFDRY BULK SHIPPING POTENTIAL OF

TURKEYTURKEY

Iron and steel industry plays an important roleIron and steel industry plays an important rolein the industrialization and development ofin the industrialization and development ofTurkey. In 2004 Turkey had a steel productionTurkey. In 2004 Turkey had a steel productioncapacity totaling 22.5 million tons (IGEMEcapacity totaling 22.5 million tons (IGEME

2005).2005).

In 2004, steel exports reached about US $ 7.5In 2004, steel exports reached about US $ 7.5billion with 75 % growth.billion with 75 % growth.

Among the markets that TurkishAmong the markets that Turkish steelsteelproductsproducts are exported; theare exported; the EU is the majorEU is the majorexport market, Middle East is the second andexport market, Middle East is the second andthe Far East is the third biggest export marketthe Far East is the third biggest export market

(IGEME 2005).(IGEME 2005).


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As for grain, until 1980, Turkey was the netAs for grain, until 1980, Turkey was the netexporter for all grain commodities, but thenexporter for all grain commodities, but thenTurkey remained net exporter only in barleyTurkey remained net exporter only in barleyand net importer in rice and maize.and net importer in rice and maize. As forAs for

wheat, Turkey faced some fluctuations andwheat, Turkey faced some fluctuations andbecame both exporter and importer (IGEMEbecame both exporter and importer (IGEME2005).2005).

Turkey has aTurkey has a low potential in coal reserveslow potential in coal reservesand productionand production and so Turkey to become aand so Turkey to become amain importer of coal. Turkeys coal importsmain importer of coal. Turkeys coal importsstarted to increase since 1995 and thestarted to increase since 1995 and thehighest import value of coal was 12.9 millionhighest import value of coal was 12.9 million

tonnes in 2000tonnes in 2000 (Anac 2003).(Anac 2003).

DRY BULK SHIPPING POTENTIALDRY BULK SHIPPING POTENTIAL

OF TURKEYOF TURKEY


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0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

D

wt

Dry Bulk Fleet of TurkeyDeadweight shares of different ship types in Turkish merchant

fleet can be stated as follows; 58 % dry bulk, 17 % generalcargo, 10 % oil tanker, 4 % container, 3 % chemical tankers, 2% Ro-Ro ships and 6 % other ship types.

Dry bulk ships coverthe largest part of the fleet in dwt and

they are in the second row in numbers after general cargoships. (COS, 2004).

Figure 2: Turkish Dry Bulk Fleet in Years Between 1994-2003 in DWT (Source : COS 2004)


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Dry Bulk Fleet of Turkey

Age Groups

20-29;

years

49%

0-9;

years

19%

10-19;

years

28%

30

years

and

above;

4%

Tonnage Groups

35000-

52999

(Handymax);

40,92 %

10000-

34999

(Handysize);

30,76 %

150-9999;

(Coasters)

0,30 %

120000+

(Large

Size);

4,41 %

53000-

79999

(Panamax)

17,60 %

Figure 3: Turkish Dry Bulk Fleet According to Age and Tonnage Groups(Dwt)

(Source: COS 2004)


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COMPETITION, COMPETITIVE ENVIRONMENTCOMPETITION, COMPETITIVE ENVIRONMENT

AND DRY BULK SHIPPINGAND DRY BULK SHIPPING

Competitive strategyCompetitive strategy aims to establishaims to establish a profitablea profitableand sustainable positionand sustainable position against the forces thatagainst the forces thatdetermine industry competition (Porter 1985; Porterdetermine industry competition (Porter 1985; Porter1996).1996).

Global strategies contribute to the competitiveGlobal strategies contribute to the competitiveadvantage of the firms competing in internationaladvantage of the firms competing in internationalmarkets (Porter 1990a; Porter 1990b).markets (Porter 1990a; Porter 1990b).

Porter groups the activities performed in competing inPorter groups the activities performed in competing ina particular industry in two categories:a particular industry in two categories: PrimaryPrimaryactivities and support activities.activities and support activities. Value chain consistsValue chain consistsofofinbound logisticsinbound logistics andand outbound logisticsoutbound logistics asasprimary activities of a firm and transportation plays anprimary activities of a firm and transportation plays animportant role in both of these activitiesimportant role in both of these activities (Cerit 2000).(Cerit 2000).


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Maritime transportation activities, and amongMaritime transportation activities, and amongthem dry bulk shipping makethem dry bulk shipping makess use of theuse of thesupport activities to create value for thesupport activities to create value for theshippers.shippers.

Dry bulk shipping systems are part of the wholeDry bulk shipping systems are part of the wholeshipping system and are affected by all theshipping system and are affected by all theexternal and internal factors surrounding theexternal and internal factors surrounding thesystem. Moreover, the dry bulk shipping systemsystem. Moreover, the dry bulk shipping systemitself is subject to competitive forces;itself is subject to competitive forces; thethepositioning of the dry bulk shipping service withpositioning of the dry bulk shipping service withrespect to competitive strategies affects therespect to competitive strategies affects theoutcomes ofthe serviceoutcomes of the service (Cerit 2000).(Cerit 2000).

COMPETITION, COMPETITIVE ENVIRONMENTCOMPETITION, COMPETITIVE ENVIRONMENT

AND DRY BULK SHIPPINGAND DRY BULK SHIPPING


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Aim of the Study

ToTo determine thedetermine the competitive forcescompetitive forcesaround Turkish dry bulk fleet whicharound Turkish dry bulk fleet whichconstitutesconstitutes 5588 % of Turkish merchant% of Turkish merchant

fleetfleet..

To collectTo collect the approaches of the relatedthe approaches of the related

parties of Turkish dry bulk shipping inparties of Turkish dry bulk shipping inorder to explore the competitiveness oforder to explore the competitiveness ofTurkish dry bulk fleet.Turkish dry bulk fleet.


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METHODOLOGYMETHODOLOGY

Focus group researchFocus group research is used as ais used as ametholodogy.metholodogy.

Focus groupFocus group can be defined as a looselycan be defined as a looselystructured interactive discussionstructured interactive discussionconducted by a trained moderatorconducted by a trained moderator

among a small group of respondentsamong a small group of respondentssimultaneously (Kinnear and Taylorsimultaneously (Kinnear and Taylor1996; 308).1996; 308).


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As for the main advantages of focus groupAs for the main advantages of focus groupresearchs;researchs;

They give the researcher the opportunity ofThey give the researcher the opportunity of

understanding the participants ideas andunderstanding the participants ideas andopinions by their own sentences.opinions by their own sentences.

A focus group enables the researcherA focus group enables the researcherto gainto gaina larger amount of information in a shortera larger amount of information in a shorter

period of time, help to explore or generateperiod of time, help to explore or generatehypotheses and develop questions orhypotheses and develop questions orconcepts for questionnaires and interviewconcepts for questionnaires and interviewguidesguides (Gibbs 1997; Sim 1998).(Gibbs 1997; Sim 1998).

METHODOLOGYMETHODOLOGY


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1.Determination of the Aim of theStudy

2.Constitution of Focus GroupResearch Profile Questions

3.Preparation of DiscussionGuide:

Opening QuestionIntroductory QuestionsTransition QuestionsKey QuestionsEnding QuestionsSummary

4. Group Composition andRecruitment

5 . Moderator Selection

6. Interview Protocol and Logistics

7. Implementing the Focus GroupDiscussion

8.Data Analysis

9.Summary of Findings andSuggestions

Figure 4: Focus group

discussionprocedures

(Source: Cerit 2002b, Nakip2003, Kinnear and Taylor1996)


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Data Collection Forms andData Collection Forms and

QuestionsQuestions TTwo separate forms were used.wo separate forms were used. The first form aimed to collect informationThe first form aimed to collect information

on the demographic profile of theon the demographic profile of theparticipants and the second one was theparticipants and the second one was themoderators discussion guide with blanksmoderators discussion guide with blanks

under each question to record key ideas.under each question to record key ideas. The form about the demographic profile ofThe form about the demographic profile of

the participants contained two main parts.the participants contained two main parts. First partFirst part was asked to all participantswas asked to all participants

including questions aboutincluding questions about age, education,age, education,

work experiencework experience.. The second partThe second part including questions aboutincluding questions about

thethe number of ships, their dwt and theirmain voyage routes (Black Sea,Mediterranean, North Europe, etc.) werewereasked to only participants who were dryasked to only participants who were drybulk ship operators.bulk ship operators.


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When developing the questions, certain guides ofWhen developing the questions, certain guides ofprevious focus group discussions were consideredprevious focus group discussions were considered((Cerit 2002b, Kinnear and Taylor 1996Cerit 2002b, Kinnear and Taylor 1996) and also related) and also relatedwith the subject of the focus group the comments andwith the subject of the focus group the comments and

the ideas of experts on dry bulk shipping and Turkishthe ideas of experts on dry bulk shipping and Turkishmerchant fleet were taken into account.merchant fleet were taken into account.

The questions in the discussion guide includedThe questions in the discussion guide includedgeneral competitiveness variables related with;general competitiveness variables related with;

*the position of Turkish dry bulk fleet,

*condition of the fleet from the view point ofnational and international macro and microenvironmental factors.

Data Collection Forms andData Collection Forms and

QuestionsQuestions


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Group Composition and RecruitmentGroup Composition and Recruitment

Age n Occupation n WorkExperience(years)

n Education n

30-40 7

(%58,34)

Ship

Operators

5

(%41,68)

1-4 2

(%16.66)

Graduate 10

(%83,33)

41-50 4(%33,33)

Brokers 3(%25)

5-10 6(%50)

Postgraduate 2(%16,67)

50 andover

1(%3,33)

Staterepresentative

1(%8,33)

11-20 2(%16.66)

Portmanagement

1(%8,33)

20 andover

2(%16.66)

University 1(%8,33)

Legalrepresentative

1(%8,33)

Table 1. Profile of the Focus Group Participants


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Interview Protocol and Logistics The participants were contacted 15 days before theThe participants were contacted 15 days before the

session, the structure of the study was explained and theysession, the structure of the study was explained and theywere invited to the meeting at the specified day and hour.were invited to the meeting at the specified day and hour.

The focus group discussion was recorded byThe focus group discussion was recorded by audio taping,videotaping and also byand also by written notes.

Implementing the Focus Group Discussion

Before the discussion the objective of the meeting isBefore the discussion the objective of the meeting isbriefly explained to the participants and the questionnairesbriefly explained to the participants and the questionnairesrelated to the participants demographic profile arerelated to the participants demographic profile aredistributeddistributed.. Afterwards every questionAfterwards every question inin focus groupfocus groupdiscussion is asked to each participant orally.discussion is asked to each participant orally.

After the completion of the structured questions a periodAfter the completion of the structured questions a periodof 15 minutes was maintained forof 15 minutes was maintained forfree discussionfree discussion amongamongthe participantsthe participants..

Completion of the participants questionnaires, theCompletion of the participants questionnaires, thediscussion guide and the free discussion period lasted in adiscussion guide and the free discussion period lasted in atotal oftotal of2 hours and 45 minutes.


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Data AnalysisData Analysis

After the discussion the moderator and theAfter the discussion the moderator and theassistant moderators met to analyze theassistant moderators met to analyze thediscussion briefly and to find out the commondiscussion briefly and to find out the commonand conflicting points reached by theand conflicting points reached by the

participants.participants.

Afterwards the data collected by theAfterwards the data collected by thevideotapes, audiotapes and as written notesvideotapes, audiotapes and as written notes

are transcribed, coded and analyzed.are transcribed, coded and analyzed.

Thus the moderator and the assistants haveThus the moderator and the assistants haveidentified the major outcomes of theidentified the major outcomes of thediscussion.discussion.


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Results of the Focus Group ResearchResults of the Focus Group Research

Current competitive power of Turkish dry bulk fleet:Current competitive power of Turkish dry bulk fleet:

Participants declared that the Turkish dry bulk fleetsParticipants declared that the Turkish dry bulk fleetscompetitive power iscompetitive power is directly related with the fleets sharedirectly related with the fleets sharein world shipping which is very low in percentagein world shipping which is very low in percentagebecause of the ships with low tonnages and high agebecause of the ships with low tonnages and high ageaverages.averages.

Also the participants pointed out thatAlso the participants pointed out that the fleet has almost nothe fleet has almost nocompetitive advantage in Panamax and overcompetitive advantage in Panamax and over--PanamaxPanamaxtonnages, comparatively more advantage in Handysizetonnages, comparatively more advantage in Handysizeand Handymax tonnages.and Handymax tonnages.

Apart from these comments, all the participants agreed thatApart from these comments, all the participants agreed thatpotential for Turkish dry bulk fleet lies in the coasterpotential for Turkish dry bulk fleet lies in the coastermarket by mentioning the strong position of the fleet inmarket by mentioning the strong position of the fleet inBlack Sea and the Mediterranean region in 1980s and theBlack Sea and the Mediterranean region in 1980s and theearly 1990s.early 1990s. However this superiority has been lost as aHowever this superiority has been lost as aresult of increasing number of substandard ships not meetingresult of increasing number of substandard ships not meeting

the needs of the customersthe needs of the customers..


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Effects of the recent changes in the world trade andEffects of the recent changes in the world trade andshipping on competitive power of Turkish dry bulkshipping on competitive power of Turkish dry bulkfleet:fleet:

In general the effects of the changes of the world tradeIn general the effects of the changes of the world tradeand the shipping on competitive power of the fleet wereand the shipping on competitive power of the fleet wereseen positive because high increases were recorded inseen positive because high increases were recorded in

the freight rates, as a result of these increases the drythe freight rates, as a result of these increases the drybulk operators gained high profits.bulk operators gained high profits.

But this gain from the freight rate increases occuredBut this gain from the freight rate increases occuredonly in accordance with the amount that theonly in accordance with the amount that the

operators took share from the world dry bulk shippingoperators took share from the world dry bulk shippingwhich is quite low in percentage.which is quite low in percentage.

The reason behind this low tonnage fleet problem isThe reason behind this low tonnage fleet problem is thetheinvestment of all capital earned from shippinginvestment of all capital earned from shippingoperations to landoperations to land--based operations (tourism, inbased operations (tourism, in--landlandcarriage...etc.) by Turkish ship operators.carriage...etc.) by Turkish ship operators.


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Effects of macro external environmental factors onEffects of macro external environmental factors oncompetitive power of Turkish dry bulk fleet:competitive power of Turkish dry bulk fleet:

In recent years,In recent years, some regulations such as ISM, ISPSsome regulations such as ISM, ISPSand port state controlsand port state controls seem to have someseem to have some

destructive influencesdestructive influences on dry bulk ship operators sinceon dry bulk ship operators sincethese regulations have increased the costs commonly.these regulations have increased the costs commonly.

Also Turkish dry bulk ship operators have a great effortAlso Turkish dry bulk ship operators have a great effortfor taking place in the white list.for taking place in the white list.

By giving importance to technological developments inBy giving importance to technological developments inthe ship design and latest regulatory practices,the ship design and latest regulatory practices, most ofmost ofthe important Turkish dry bulk ship operators havethe important Turkish dry bulk ship operators havestarted to order double hull dry bulk ships.started to order double hull dry bulk ships.


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Effects of suppliers on competitive power of Turkish dryEffects of suppliers on competitive power of Turkish drybulk fleet:bulk fleet:

Main headings for fleets suppliers can be listed asMain headings for fleets suppliers can be listed as finance,finance,labor, shipbuilding, port services, bunker supply, shiplabor, shipbuilding, port services, bunker supply, shipsupply and ship management companies.supply and ship management companies.

Finance:Finance: Turkish dry bulk ship operators have alwaysTurkish dry bulk ship operators have alwaysdemanded incentives and loans from the state authorities.demanded incentives and loans from the state authorities.

Since Turkish banking system hasnt been specialized inSince Turkish banking system hasnt been specialized inshipping finance, Turkish dry bulk ship operators haveshipping finance, Turkish dry bulk ship operators havestarted to look for ways of finding credit from foreign banksstarted to look for ways of finding credit from foreign banksbut this time operators have facedbut this time operators have faced some difficulties suchsome difficulties suchas country risk problem and higher interest rates.as country risk problem and higher interest rates.


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Finance:Finance: Turkish banking systemsTurkish banking systems negative approachnegative approachto ship mortgagesto ship mortgages andand foreign shipping banks greatforeign shipping banks greatexpertise in ship mortgagesexpertise in ship mortgages were seen as importantwere seen as importantdifferences in ship finance.differences in ship finance.

From positive side, participants pointed out the increasingFrom positive side, participants pointed out the increasingnumber of Turkish shipping companies taking place innumber of Turkish shipping companies taking place incapital markets and getting stocks.capital markets and getting stocks.

Labor:Labor: There has beenThere has been a lack of qualified officers ina lack of qualified officers inTurkish dry bulk fleetTurkish dry bulk fleet and when considered togetherand when considered togetherwith the increasing volume of world dry bulk trade, thiswith the increasing volume of world dry bulk trade, thisdeficiency will cause important problems in the comingdeficiency will cause important problems in the comingyears.years.

In order to overcome this possible problem, a greatIn order to overcome this possible problem, a greatimportance should be given toimportance should be given to other suppliers of theother suppliers of thefleet such as educational institutions and manningfleet such as educational institutions and manning

firms.firms.


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Labor:Labor: Another point to be considered about the labor is theAnother point to be considered about the labor is thecompetency of the personnel in the companys land basedcompetency of the personnel in the companys land basedoperationsoperations because in organizing the commercial side of thebecause in organizing the commercial side of the

operations, negotiating with brokers and charterers and fixingoperations, negotiating with brokers and charterers and fixingthe dry bulk ships, any mistake done by the personnel maythe dry bulk ships, any mistake done by the personnel maycausecause great lossesgreat losses andand wrong commercial decisionswrong commercial decisions whichwhichcan decrease the competitive power of the company.can decrease the competitive power of the company.

Shipbuilding:Shipbuilding: In dry bulk ship building, TurkeyIn dry bulk ship building, Turkey--related costrelated costitems such asitems such as cheap labor, electricity and some materialscheap labor, electricity and some materialsused in ship building such as sheet iron etc.,used in ship building such as sheet iron etc., onlyonlyconstituteconstitute 2525--30 % in the total cost30 % in the total cost of dry bulk ships.of dry bulk ships.

Other cost factors represent relatively a higher portion and theyOther cost factors represent relatively a higher portion and theyare supplied from foreign sources.are supplied from foreign sources.

As a result of these costAs a result of these cost--related factors and low capacityrelated factors and low capacityproblems in Turkish shipyards, number of dry bulk shipsproblems in Turkish shipyards, number of dry bulk shipsbuilt in Turkey is very low.built in Turkey is very low.


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Shipbuilding:Shipbuilding: Since Turkish shipyards haveSince Turkish shipyards havespecialized in chemical tanker and mega yachtspecialized in chemical tanker and mega yacht

building,building, no importance has been given to dryno importance has been given to drybulk ship building.bulk ship building.

Many foreign and Turkish ship owners haveMany foreign and Turkish ship owners haveordered dry bulk ships to shipyards in Far Eastordered dry bulk ships to shipyards in Far East

It is believed that shipyards in Far East cant meetIt is believed that shipyards in Far East cant meetthe existing demand in the near future which willthe existing demand in the near future which willlead to the emergence of new ship buildinglead to the emergence of new ship building

countries specializing in dry bulk ships such ascountries specializing in dry bulk ships such asTurkey.Turkey.


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Ports:Ports: The steps to be taken forThe steps to be taken for

improving the quality of port services inimproving the quality of port services inTurkey can be stated as;Turkey can be stated as; lowering the influence of statelowering the influence of state

authorities on port services,authorities on port services, decreasing the level of bureaucracy,decreasing the level of bureaucracy, increasing the involvement of privateincreasing the involvement of private

sector in ports,sector in ports, improving the productivity in ports,improving the productivity in ports, employing qualified staff in portemploying qualified staff in port

management and cargo handling.management and cargo handling.


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Bunker suppliers:Bunker suppliers: Turkish bunkeringTurkish bunkeringfirms arent involved mainly in the supplyfirms arent involved mainly in the supply

of dry bulk ships and important share hasof dry bulk ships and important share hasbeen obtained by foreign bunkeringbeen obtained by foreign bunkeringcompanies. Turkish bunkering firms onlycompanies. Turkish bunkering firms onlyconduct the brokering part of theconduct the brokering part of the

operation.operation.

Ship management companies:Ship management companies: ShipShipmanagement companies arent so activemanagement companies arent so active

in negotiations with Turkish dry bulk shipin negotiations with Turkish dry bulk shipoperators but it is believed that theseoperators but it is believed that thesecompanies provide cost minimization andcompanies provide cost minimization andimproved service quality.improved service quality.


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Effects of the costs on competitive power of TurkishEffects of the costs on competitive power of Turkishdry bulk fleet:dry bulk fleet:

Almost all participants believed that the costs haveAlmost all participants believed that the costs havedirectlydirectly no effects on the competitive power of theno effects on the competitive power of thefleetfleet becausebecause Turkish dry bulk ship operators face theTurkish dry bulk ship operators face thesame costs with the foreign operatorssame costs with the foreign operators and this wouldntand this wouldntbe a differentiating factor.be a differentiating factor.

On the other hand, the participants declared that withOn the other hand, the participants declared that withthe help of effective purchases of stores etc,the help of effective purchases of stores etc,administrative costs may be minimalized but thereadministrative costs may be minimalized but therewould be no change in the voyage expenses.would be no change in the voyage expenses.


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Effects of the service quality on competitive power of TurkishEffects of the service quality on competitive power of Turkish

dry bulk fleetdry bulk fleet::

Two main concepts related with the service qualityTwo main concepts related with the service qualitywere mentioned.were mentioned.

These wereThese were quality of the crewquality of the crew andand finance mattersfinance matters..

In order to increase the competitive power of theIn order to increase the competitive power of thefleet:fleet:

A great importance must be given to theA great importance must be given to the education ofeducation ofthe crewthe crew andand personnel in the companypersonnel in the company becausebecausesome wrong commercial decisions of the personnelsome wrong commercial decisions of the personneland high detention rates can be overcome by this way.and high detention rates can be overcome by this way.


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Main markets that the Turkish dry bulk fleet is highlyMain markets that the Turkish dry bulk fleet is highly

competitive:competitive:

Some of the participants stated that competitive advantage isSome of the participants stated that competitive advantage isobtainedobtained in Black Sea and Mediterranean and partly in Northin Black Sea and Mediterranean and partly in NorthEurope.Europe.

Also it was mentioned that Turkish dry bulk coasters wereAlso it was mentioned that Turkish dry bulk coasters werecontented with the share they had been offered and this causedcontented with the share they had been offered and this causedloss of prestige in the marketloss of prestige in the market andand loss of competitive power.loss of competitive power.

Apart from coaster market, condition of the fleet in HandysizeApart from coaster market, condition of the fleet in Handysizeand Handymax tonnage in Far East, Mediterranean and Europeand Handymax tonnage in Far East, Mediterranean and Europemarket were stated asmarket were stated as developingdeveloping

but the same couldnt be said for Panamax and overbut the same couldnt be said for Panamax and over--PanamaxPanamaxtonnage.tonnage.


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Measures to be taken in order to increase the competitivenessMeasures to be taken in order to increase the competitiveness

of Turkish dry bulk fleet:of Turkish dry bulk fleet:

yy Turkish dry bulk fleets share in the world dry bulk shippingTurkish dry bulk fleets share in the world dry bulk shippingmust be increasedmust be increased by investing new ships,technologicalby investing new ships,technologicaldevelopments and decreasing the number ofdevelopments and decreasing the number ofsubstandard dry bulk ships in the fleet.substandard dry bulk ships in the fleet.

yy Education and financeEducation and finance are two terms for increasing theare two terms for increasing thecompetitive power and the service quality.competitive power and the service quality.

yy Turkish exporters and importers must be encouraged toTurkish exporters and importers must be encouraged tocarry their cargoescarry their cargoes by Turkish flagged dry bulk ships.by Turkish flagged dry bulk ships.

yy Importance must be given toImportance must be given to the focus strategythe focus strategy that thethat theoperators should only focus on the type of seaoperators should only focus on the type of seatransportation in which they are highly experienced which istransportation in which they are highly experienced which ismainly dry bulk shipping.mainly dry bulk shipping.

yy Projects of building bigger dry bulk ships with foreignProjects of building bigger dry bulk ships with foreignpartners in larger shipyards must be conducted.partners in larger shipyards must be conducted.


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ConclusionConclusion

The focus group discussion completedThe focus group discussion completedat the case of competitive power ofat the case of competitive power ofTurkish dry bulk fleet, has proved theTurkish dry bulk fleet, has proved theimportance ofimportance ofservice qualityservice quality forfor

increasing the competitive power ofincreasing the competitive power ofTurkish dry bulk fleet.Turkish dry bulk fleet.

In order to provide high quality serviceIn order to provide high quality servicefor increasing competitive power of thefor increasing competitive power of thefleet,fleet, finance and labor mattersfinance and labor matters werewere

mentionedmentioned..


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Also the competitive advantage gained inAlso the competitive advantage gained incoaster fleet in early 1980s must be takencoaster fleet in early 1980s must be takenback againback again by ordering new coastersby ordering new coasters

andand giving importance to certaingiving importance to certainmarkets that coasters are highlymarkets that coasters are highlycompetitivecompetitive..

In the overall evaluation of the focusIn the overall evaluation of the focusgroup, the need forgroup, the need foremploying dry bulkemploying dry bulkships in crossships in cross--tradetrade andand for being openfor being opento international dry bulk shippingto international dry bulk shipping

marketmarket was highlighted.was highlighted.



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The research has made importantThe research has made importantcontributions forcontributions forgenerating subgenerating sub--hypothesishypothesis of the main hypothesisof the main hypothesis

obtained before.obtained before.

Repeating this study in separate focusRepeating this study in separate focusgroups and eventually reachinggroups and eventually reaching

quantitative results may provide helpfulquantitative results may provide helpfuloutcomes in reaching competitivenessoutcomes in reaching competitivenessvariables for Turkish dry bulk fleet.variables for Turkish dry bulk fleet.



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ReferencesReferences

Alizadeh, A.and Nomikos, N. (2002) The Dry Bulk Shipping Market,Alizadeh, A.and Nomikos, N. (2002) The Dry Bulk Shipping Market,

Costas Grammenos (ed.) (2002)Costas Grammenos (ed.) (2002) The Handbook of MaritimeThe Handbook of MaritimeEconomics and BusinessEconomics and Business, LLPInforma Publishing, London: 227, LLPInforma Publishing, London: 227--250250 Anac, S. (2003). Role of Coal in Energy Policies, .T. Faculty of

Mines, stanbul Cerit, A. G., (2000) Maritime Transport as an Area of Competitive

Advantage in International Marketing, International Journal ofMaritime Economics, Volume 1, Number 3, January-March: 49-67.

Cerit, A. G., (2002b) Regional Development and Marketing PublicRelations: Focus Group Discussion on Port of zmir, Janusz Zurek,Okan Tuna and Funda Yercan (eds) (2002) New Trends in MaritimeTransport Sector in Poland and Turkey, Gdansk: University ofGdansk Publication: 35-50.

Clarksons Research, (2004). The Tramp Shipping Market, AprilClarksons Research, (2004). The Tramp Shipping Market, April

2004, viewed 24 January 20062004, viewed 24 January 2006,,http://www.hkex.com.hk/listedco/listconews/sehk/20040630/2343/F1http://www.hkex.com.hk/listedco/listconews/sehk/20040630/2343/F113_e.pdf13_e.pdf

COS, Chamber of Shipping (2004). Shipping Sector Report, 2005.stanbul.

Gibbs, A. (1997). Focus Groups, Social Research Update, Winter

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THANKS

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Gul Denktas and Guldem Cerit