Value creation through sustainable supplier management in maritime transport

The interest in sustainability in the maritime industry has been on the rise. Attention has shifted from how to develop and comply with environmental regulation and labour standards to a more integrated view on sustainable maritime transport that aims at incorporating sustainability in maritime firm strategies. The liner shipping industry, which has been at the forefront, plays a crucial role in global supply chains, with its commitment to sustainable maritime container transport gaining recognition. In particular, procurement relationships stand out as an area where sustainability can exert the most significant impact. Ocean transport is among the most widely outsourced services globally both by shippers and by freight forwarders. Unlike bulk transport, container ocean transport is always outsourced, as shippers do not use their own vessels. Yet, the selection criteria that logistics firms use regarding sustainability when choosing ocean transport service providers and the role of sustainability in value creation among shippers/freight forwarders and ocean transport providers have been scarcely explored. This article delves into value creation via quality improvement and sustainability practices in ocean freight transport. Employing a case study of an ocean carrier, alongside interviews and survey data, it explores how liner shipping companies can leverage high-quality and sustainable operations to enhance service for their clients and create logistics value. A novel aspect of this study is the application of sustainable supplier management concepts to maritime logistics, highlighting how shippers’ sustainability requirements in sourcing ocean freight services shape procurement relationships and how shipping companies can employ sustainable procurement strategies for value creation.