Just-in-time (JIT) port calls offer several advantages such as reduced fuel consumption and lower environmental impact. Despite this, the concept has struggled to gain traction in the shipping industry. According to a new report from the School of Business, Economics and Law at the University of Gothenburg, one reason is that regulations are standing in the way.

Shipping accounts for approximately 80% of global transport, and although it is often an emission-efficient mode of transport, it still generates significant emissions in absolute terms. This makes efforts to reduce these emissions increasingly important. As shipping becomes part of the EU Emissions Trading System (ETS), economic incentives for the industry to find emission-reduction measures will grow, potentially providing competitive advantages for actors like shipowners, transport buyers, and ports. JIT port calls, where ships arrive in sync with the port’s capacity to handle them, allowing them to slow down and reduce fuel use and environmental impact, is one such measure. It seems like an obvious solution, or as a representative of a Swedish shipping company noted to Claes Martinson, Professor of Civil Law at the University of Gothenburg: "Everyone wants a just-in-time solution."

But is that really the case?

"I can't say for sure, but I imagine it's probably more comfortable for everyone on board to be anchored and waiting, with fewer tasks to handle. On the other hand, the crew is ultimately governed by the shipowners," says Claes Martinson.

So, why do most ships still rush to the port, only to wait in anchorage zones? This is what a preliminary study, funded by VINNOVA and conducted at the School of Business, Economics and Law, has examined, with a focus on how legal conditions and norms influence behavior.

"There are many regulations that suggest there are advantages to not arriving just-in-time."

One example is the contractual terms between ships and transport buyers/cargo handlers, which often entitle ships to demurrage if they are forced to wait for unloading.

"This means that it can actually be profitable to arrive quickly," says Claes Martinson.

The study also lists several norms that influence behavior. One is the "power of habit," or long-standing traditions in the maritime industry. Another is the "first-come, first-served" mentality, which is directly manifested in many ports and creates strong incentives to arrive as quickly as possible to secure a spot in the queue. In addition, there are norms that impose an obligation to proceed to the next port with "due dispatch." Such rules are inscribed in maritime law for both captains and carriers.

"Ports may also have various reasons for slowing down the process. It could be related to staffing or other factors, but we didn’t investigate that in this study," Claes Martinson continues.

"However, we did identify ports and terminal companies as key actors in this context. They can take the initiative and coordinate smarter port calls. This doesn't mean that ports are to blame, but it's easier to start the change with them. They can begin by adjusting their rules and routines, which will create the conditions for other stakeholders to adapt."

The initiative for the project originally came from the Swedish Maritime Administration, which is leading the VINNOVA-funded project Systemdemonstrator Smarta Anlöp. Before researchers from the School of Business, Economics and Law got involved, the ports of Gothenburg and Luleå were already part of the project.

"We haven’t interviewed them for this pre-study, but we know they want to achieve a just-in-time solution and have started thinking about ways to implement it."

The major challenge will not be getting the ports on board but involving all the other stakeholders. And there are many. These include various types of shipping companies, terminal operators, pilots, tugboats, charterers, transport buyers, freight forwarders, ship agents, shipbrokers, and ship crews – all of whom essentially need to adjust their routines simultaneously.

How this transition could happen will hopefully be examined in a future project.

"In this pre-study, we’ve laid the groundwork. Now, we want to tackle the constructive part," says Claes Martinson.

The report ”Förstudie om juridiken och logistiken för Just-in-time som del av smarta anlöp”  was authored by David Jersenius, Claes Martinson, Johan Woxenius, Jakob Heidbrink, and Niels Krabbe at the School of Business, Economics and Law, University of Gothenburg.