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Container Shipping Servicescape. Myth or Reality?
 
Written by Ana Casaca Posted on 09 January 2025 Reading Time 45 minutes
 

1. The Shipping Industry Evolutionary Path

Maritime transport is frequently regarded as the foundation of human civilisation, a catalyst for maritime exploration, a trade facilitator, and, more recently, an enabler of cultural exchanges. Its development is based on numerous technological innovations over the years. From the sailing era to the steam age and from the steam age to the age of the internal combustion engine, each significant technological advancement has transformed waterborne transport, improving its efficiency, extending its reach, and amplifying its influence. The industry moved from Industry 0.0 to Industry 4.0 and is on the verge of being part of Industry 5.0 to become an industry driven by quantum computing and artificial intelligence (Industry 6.0). Currently, the waterborne transport sector confronts critical challenges as it seeks to reduce its carbon emissions to lessen its effects on climate change.
From a historical standpoint, water transport is the earliest form of transport. The initial watercraft were simple logs that carried cargo and floated along waterways for commercial purposes. One of the oldest known examples of such watercraft is the Pesse canoe, dated through carbon analysis to the period between 8040 and 7510 BCE. This indicates that the beginnings of shipbuilding and navigation date back approximately 8,000 years. This aligns with historical accounts that suggest the first seaborne trading route for obsidian, established by an unidentified group of Neolithic seafarers, originated in the Aegean Sea during the 7th millennium BCE. The obsidian was sourced from the volcanic island of Milos and transported to various locations across the Balkans (Perlès, 2011; Horejs et al., 2015).
Early watercraft primarily utilised human effort, wind, and basic sail designs. Ancient civilisations such as the Egyptians, Phoenicians, Greeks, and Romans built more advanced ships for trading and military purposes, but their reliance on wind limited their operational efficiency and reliability. The Age of Discovery, spanning the 15th to the 17th centuries, began with the Portuguese and was followed by the Spanish, English, Dutch, and French, who constructed larger, more durable, and innovative sailing ships like caravels and galleons for global exploration. These vessels led to significant maritime dominance by creating new trade routes, establishing extensive trading networks, and igniting the first wave of globalisation in the world economy. Furthermore, they confirmed the Earth’s round shape, a notion supported by ancient cultures such as those in Mesopotamia, Egypt, and early Greece. Explorers, including Ferdinand Magellan and Juan Sebastián Elcano, were able to circumnavigate the globe, providing clear evidence of the Earth’s sphericity. These explorations and advancements in navigation and map-making solidified the understanding that the Earth is round.
Sailing vessels, often celebrated for their beauty, faced several inherent challenges. Their reliance on wind patterns and ocean currents rendered sailing journeys unpredictable and often prolonged, as favourable conditions could not always be assured. Additionally, the need for numerous crew members to handle the sails increased the complexity of these maritime expeditions, requiring considerable resources, including supplies for the entire crew. The slow emergence of new technologies played a crucial role in advancing the industry. A pivotal development in the history of water transport was the invention of the steam engine by James Watt in the late 18th century. This innovation transformed manufacturing processes and enhanced primitive transport systems, facilitating railway expansion and moving goods over greater distances. When the steam engine was adapted for ships in the early 19th century, it sparked a technological transformation in maritime transport. Robert Fulton’s steamboat, the Clermont, illustrated this potential during its inaugural voyage on the Hudson River in 1807, travelling between New York City and Albany and showcasing the effectiveness of steam power for commercial shipping (Kennedy, 1903).
Steamships offered numerous benefits compared to conventional sailing ships. They could maintain consistent speeds regardless of weather and ocean conditions, which significantly decreased travel time and enhanced the reliability and frequency of services, thus allowing for longer and safer voyages. These advantages collectively boosted their annual operational productivity. Additionally, steamships required fewer crew members since they did not need as many sailors to handle sails, leading to lower operational expenses. Furthermore, several factors contributed to transforming maritime management: a) the introduction of the telegraph by Samuel Morse in 1844 and the commencement of laying communication cables starting in 1855, which improved information exchange; b) the opening of the Suez Canal in 1869, which reduced the distance between Europe and the Far East and eliminated the need for vessels to navigate around the Cape of Good Hope; and c) the creation of more precise navigation charts that utilised prevailing winds and sea currents to enhance navigation. Together, these developments established the groundwork for the contemporary maritime industry.
The advancement of steam engine technology throughout the 19th century gradually led to significant technological developments. In the mid to late 1800s, the compound and triple-expansion steam engines contributed to greater efficiency, allowing steamships to become more cost-effective and travel longer distances. These innovations also gave rise to new sectors in shipping, such as passenger and cargo liners; in contrast, the traditional tramp shipping sector benefited from reduced turnaround times and economies of scale (Delis, 2023). Additionally, the transition from paddle wheels to more efficient screw propellers improved the performance and seaworthiness of vessels. Ultimately, steamships began to replace sailing ships, surpassing them in overall tonnage (Knauerhase, 1968; Pascali, 2014; Delis, 2023). In this process, maritime cabotage emerged to safeguard trade conducted along coastlines between colonial powers and their territories. In contemporary terms, maritime cabotage involves restricting the transport of goods to vessels registered under the national flag within a country’s coastal waters (Paixão Casaca and Lyridis, 2018; Paixão Casaca and Lyridis, 2021).
 
Figure 1: Ship Utilisation Evolutionary Path
Source: Moreby (1995)
 
The early 20th century marked a notable shift in waterborne transport with the introduction of the internal combustion engine, especially the diesel engine, which enhanced the efficiency, speed, and reliability of operations at sea. This transition from steam engines to diesel was gradual yet transformative, as diesel engines proved more fuel-efficient and dependable, requiring less maintenance and allowing vessels to cover greater distances—an essential factor for global trading. The move from coal to oil simplified logistics for refuelling and lowered operational expenses. The improved efficiency of diesel engines played a crucial role in the growth of the global maritime industry, enabling more frequent and economical goods transport.
During the 1950s and 1960s, the introduction of gas turbine engines offered a lightweight and powerful alternative to traditional steam and diesel engines. However, their industry adoption was mainly limited to specialised markets like high-speed ferries, hovercraft, and cruise ships. The primary reasons for this limited usage were their high fuel consumption, reduced cargo capacity, and elevated operational costs, making diesel engines the preferred choice for commercial shipping. Additionally, advancements in ship design contributed to more efficient operations; the waterborne industry evolved from a lightly mechanised sector to one with extensive mechanisation (Moreby, 1995) (refer to Figure 1). However, as the fleet expanded to meet the increasing demand for services linked to international trade, scrutiny of the industry’s environmental footprint intensified, especially following notable oil pollution incidents such as the Torrey Canyon in 1967 and the Amoco Cadiz in 1978.
The waterborne industry is experiencing another technological transformation to lower greenhouse gas emissions and address climate change. The search for alternative fuels and innovative technologies, including dual- and triple-fuel engines and new propulsion systems, has become fundamental to the industry. This shift is facilitating the development of new vessels designed to transport future alternative fuels, with projects like ammonia-powered ships already underway. Waterborne transport contributes around 3% of global greenhouse gas emissions (Sinay, 2023) and roughly 11% of carbon dioxide emissions from the transport sector (United Nations Environment Programme, 2024), primarily due to fossil fuel consumption. Decarbonising the shipping industry involves a combination of technological, regulatory, and operational transformations. The International Maritime Organization and entities like the European Union have established ambitious objectives to cut greenhouse gas emissions, mainly aiming for at least a 50% reduction in carbon emissions from shipping by 2050 compared to 2008. However, achieving decarbonisation is complex due to the diverse stakeholders involved and their conflicting interests.
 

2. The Four Perspectives of the Shipping Industry

For many years, various authors have traditionally explored and characterised the shipping industry from an operational size perspective. As the United Nations Trade and Development reported in early 2021, the global fleet consisted of 99,800 vessels with a gross tonnage of 100 and above, totalling a deadweight capacity of 2,139 million tons. This marked an increase of over 3% compared to 2020. A notable portion of this fleet comprised ships aged 5 to 9 years. However, in 2020, the industry faced a 12% drop in ship deliveries, primarily due to the impacts of the COVID-19 pandemic, compounded by a dwindling order book and a limited number of shipyards available globally. By January 2023, the global fleet had grown to 105,500 ships of 100 gross tons or more, including 56,500 ships exceeding 1,000 gross tons. This fleet’s carrying capacity reached 2,273 billion deadweight tons, reflecting a 6.3% increase from 2021. The shipbuilding market remained dominated by China, South Korea, and Japan, which accounted for 93% of the gross tonnage produced in 2022, while India, Bangladesh, and Pakistan led global ship recycling efforts (United Nations Trade and Development, 2023).
Alongside the growth in fleet size, the industry has been observing a trend towards larger vessels and enhanced specialisation, seeking economies of scale, scope, sameness, and fitness. This shift has prompted companies to adopt a blend of competitive and cooperative strategies to efficiently address the diverse market segments they serve . Economies of scale, often achieved through larger vessels, bulk purchasing, streamlined operations, expansive global networks, and economies of scope through integrated logistics, fleet diversity, alliances, and resource sharing, are prominent in the shipping sector. Additionally, economies of sameness, which emerge from the standardisation of operations (Lubatkin et al., 1977), offer cost efficiencies and competitive advantages. In the shipping context, such efficiencies are realised by using vessels with similar sizes and designs, standardising container dimensions, implementing uniform processes across ports and routes to ensure operational smoothness, and adopting common digital platforms for fleet management and cargo tracking. Standardising training programs for crew members on similar vessel types can also lead to consistency in operations, ultimately lowering costs tied to specialised training. However, emphasising operational standardisation can restrict flexibility, making it challenging for shipping companies to accommodate unique customer needs or react to market fluctuations, particularly in cases involving non-standard cargo or niche markets, potentially resulting in price competition. Forming shipping alliances can enable companies to reap the benefits of economies of sameness.
On the other hand, fitness economies emerge from the collaboration of different but complementary businesses (Lubatkin et al., 1977), fostering synergies through diversification and integration. In the shipping industry, companies have achieved economies of fitness by vertically integrating operations to enhance market resilience, agility, and sustainability, ensuring long-term competitiveness in a fluctuating global landscape. By vertically integrating downstream—such as establishing their port terminals or acquiring logistics and freight forwarding companies in various regions, as Maersk did during the pandemic—shipping firms get closer to their customers. This integration allows them to oversee their entire value chain, facilitating better coordination and quicker reactions to market changes. As these companies concentrate on developing customer-focused services, vertical integration lessens their dependence on external providers, reduces costs, and enhances internal value capture. This strategy also provides customised, end-to-end solutions that boost customer satisfaction and improve competitiveness. By managing all stages of the transport chain, including cargo handling and inland transport, shipping companies minimise delays and operational inefficiencies that arise from fragmented transport chains. For example, Maersk’s recent initiatives, such as the establishment of dedicated block trains transporting 40-foot containers of medical supplies from Xiamen, China, to the United Kingdom (Maersk, 2021a) and from Southern Western Europe to Asia (Maersk, 2021b), along with the integration of air and sea services via the Port of Salalah and Oman Airports (Maersk, 2023), exemplify their commitment to providing seamless service from origin to destination.
The shipping industry is primarily dominated by three market segments: tankers, dry bulk carriers, and container shipping. In terms of volume, bulk trade surpasses container trade. Nonetheless, from a broader global perspective, the shipping sector transports various cargo types, including dry, liquid, and gaseous goods in bulk and break-bulk cargo in containers. Understanding that different market structures influence shipping operations and strategies is crucial. For instance, bulk trades (dry, liquid, and gas) operate under a pure competition market structure, whereas the container shipping sector generally operates under an oligopoly.
Analysing shipping from an economic viewpoint reveals its essential role in global trade and the economy. It facilitates the effective movement of goods, bridging producers and consumers across various countries. This system allows nations to leverage their comparative advantages by specialising in producing competitive goods, ultimately promoting a more efficient allocation of global resources. Shipping is responsible for approximately 80-90% of all goods traded internationally, encompassing everything from raw materials and components to finished products. Consequently, the shipping industry significantly supports the internationalisation and globalisation of economic activities, enhancing the development of interconnected global supply chains that enable businesses to acquire materials and produce goods in multiple locations.
Moreover, the shipping sector impacts various economic activities, particularly as shipping costs can directly affect a country’s trade balance. Lower shipping costs can enhance the competitiveness of exported goods, facilitating trade surpluses, while higher costs may lead to increased import prices and potential trade deficits. This dynamic illustrates why the demand for shipping services is derived from broader economic conditions and varies over time, often correlated with the health of the economy, which is influenced by many interconnected factors, including economic policies, technological progress, demographic changes, environmental challenges, natural disasters, and geopolitical events that can disrupt supply chains.
In light of these variables, the shipping industry seeks to balance supply and demand, as any imbalance can significantly affect the sector. Demand-side factors include the global economy, seaborne trade, average haul distances, transport costs, political events, and public health concerns, such as those experienced during the COVID-19 pandemic. On the supply side, relevant factors encompass the size of the global fleet, shipbuilding activity, vessel scrapping, fleet efficiency at sea and in ports, and regulatory frameworks (Stopford, 2009). Historically, post-World War II trade has generally increased despite various economic shocks impacting the shipping industry, although these impacts tend to be lagged. The main challenge lies on the supply side, as adjusting shipping capacity to meet demand is not always straightforward. Shipowners often order new vessels during market peaks, leading to the emergence of these vessels during downturns, resulting in timing discrepancies amid changing economic conditions (Stopford, 2009). Stopford’s historical analysis of shipping cycles over approximately 250 years illustrates this dynamic.
From a supply chain management perspective, shipping is a multimodal transport chain element. Multimodality refers to using more than one mode of transport (e.g., road, rail, sea, air) within a single transport network while not necessarily emphasising seamless modal connectivity. The advent of containerisation in 1956 by Malcolm MacLean took multimodality into another stage by allowing the movement of cargo units, i.e. the container, between the modes. Therefore, intermodality can be defined as a subset or a specific application of multimodality since it focuses on efficient transport modal integration to optimise the flow of goods, creating synergies between transport modes. Besides multimodality and intermodality, there is also transmodality, which covers a transport chain comprising the same transport mode. However, its application in shipping is complex due to its dependence on other transport modes for the pre-carriage (first mile) and on-carriage (last mile) of goods, even if such pre-carriage and on-carriage are via pipeline. More recently, the European Commission updated the transport terminology with the synchromodality and co-modality concepts in its transport communications. While contributing to improving transport operations, these terms cannot be mixed with multimodality, intermodality, and transmodality because they are related to efficiency and effectiveness.
These multimodal/intermodal/transmodal transport chains support a wide range of supply chains and networks of supply chains in the quest for supply chain optimisation and timely delivery of inputs and final products, allowing manufacturers to adopt just-in-time and just-in-sequence inventory management approaches to reduce their costs along the logistics pipeline. More than ever, global supply chains rely on reliable shipping services to maintain inventory levels, meet production schedules, and satisfy customer demand. Any disruptions occurring along the transport chain, such as the grounding of the Ever Given in the Suez Canal, the draft restrictions on the Panama Canal, or even the long negotiation processes between port workers and the port terminal operators and ocean carriers in the United States or Canada, contribute to disrupting the normal functioning of supply chains.
From a supply chain perspective, shipping performs two logistics functions. The first concerns the transport of goods between ports, even though door-to-door services have replaced port-to-port ones. The second is the temporary storage of goods between loading and discharging ports. This temporary storage, which is yet to be fully exploited by the shipping industry, allows receivers of goods to determine in which port their goods are unloaded to satisfy their inventory management strategies. Still, receivers must bear in mind that disruptions occurring along the transport chain due to their supply chain strategy choices impact their production lines or sales revenue, depending upon which market they serve, i.e. the business-to-business or the business-to-consumer. Taking as an example a receiver located in the centre of Europe, having goods on the Far East/Europe trades, he/she always has the option of unloading his/her cargo either at Gioia Tauro or Hamburg, since those ports are well connected by rail with the European hinterland within a time frame of 24/48 hours depending on the distance travelled. Therefore, the distance travelled between Gioia Tauro and Hamburg, which amounts to 2,781 nm at a speed of 23 knots, represents about five days at sea, which can save considerable warehousing costs if the same cargo were to be unloaded in Gioia Tauro.
Finally, the definition of shipping from a marketing approach becomes more complicated because the industry delivers services rather than goods; moreover, a difference exists when comparing shipping from a segment perspective, i.e., between deep-sea and short-sea shipping. That difference relies on the elasticity of demand that governs each market, i.e., the demand for deep-sea shipping services is inelastic, while the demand for short-sea shipping is not. The inelastic demand for deep sea shipping services is driven by its limited substitutes, the relatively small proportion of shipping costs in total product costs, the lack of immediate alternatives, and the strategic importance of maintaining reliable supply chains. These factors ensure that even if significant price changes occur, they will have a limited impact on the overall demand for shipping services, underscoring maritime transport’s inelastic nature in the global economy.
Conversely, the demand for short-sea shipping services tends to be more elastic due to the availability of alternative transport services and modes such as road, rail or inland waterways. This available transport capacity allows buyers of shipping services to shift from one transport mode to the other more easily, empowering them to negotiate the best transport service that fits their business logistics/supply chain requirements at the lowest price possible. Moreover, lower switching costs enhance this modal interchangeability as shippers can easily switch between short-sea shipping and other transport modes based on cost, convenience and speed, shorter transit times, and more competitive pricing structures. In short-distance transport, price is a significant factor for shippers, and small price changes in short-sea shipping can lead to a noticeable shift in demand as shippers seek the most cost-effective options. The management of these market forces goes against the expectations of European Union common transport and short-sea shipping policies concerning modal shifts.
This explains why Lindstad and Uthaug (2003) claimed that if significant reductions of 20-25% were achieved in cost and lead time, a modal shift towards short-sea shipping was expected to occur, highlighting at the same time the numerous improvements that had been taking place, mainly at a port level to streamline operations and reducing the impact of shipping being part of broken transport chains. In 1994, for a modal shift to occur in favour of short-sea shipping, the overall door-to-door freight rate had to be lowered by 35% to accommodate additional costs along the logistics pipeline (European Commission, 1996). Nevertheless, the shift from 35% in 1996 cost reduction to 20-25% in 2003 suggests that logistics improvements have occurred during this timeframe (European Commission, 1996; Lindstad and Uthaug, 2003).
 

3. The Nature of Shipping Services

Shipping services are inherently characterised by four key features: intangibility, heterogeneity, inseparability, and perishability. These unique attributes distinguish services from tangible products, such as goods, and challenge shipping companies to deliver consistent and reliable customer experiences.
 
Intangibility of Shipping Services
Services are considered intangible because they cannot be physically experienced through senses such as sight, touch, or taste. Customers purchase transport solutions without a physical product to hold. This characteristic makes it difficult for customers to evaluate the quality of services beforehand. For instance, in container shipping, the value lies in cargo delivery to its destination, an outcome that is not directly observable until completion. However, considering the tangibility spectrum developed by Shostack (1977), shipping services vary in tangibility depending on the sector and service type. Figure 2 illustrates the services tangibility spectrum, adapted from Shostack (1977) and contextualised for shipping. In this contextualisation, and for ease of analysis, three shipping markets are considered, namely the cruise, the liner and the tramp shipping markets.
 
Figure 2: Tangibility Spectrum of Services

Source: Paixão Casaca (2024) adapted from Shostack (1977)
 
Much like air travel, cruise services exhibit a higher degree of tangibility because they are characterised by a range of physical amenities and immersive customer experiences provided onboard. Unlike purely service-based offerings, cruises present a blend of tangible and intangible elements that collectively enhance the overall value proposition for passengers. For instance, the availability of luxurious cabins with customisable options, such as suites or ocean-view rooms, allows passengers to experience comfort and exclusivity physically. Onboard restaurants and dining facilities offer diverse culinary options, often curated by renowned chefs, creating a sensory delight that appeals to taste and sight. Entertainment programs, such as live performances, theatres, and recreational activities, provide immediate, tangible satisfaction and contribute to the experiential richness of the service.
Additionally, cruise ships often feature physical spaces and amenities like swimming pools, spas, fitness centres, and shopping areas, all of which add to the material aspects of the journey. These features cater to passengers’ diverse needs and create an environment where the service offering is physically palpable. Incorporating such tangible elements helps reduce the perceived intangibility of the service by anchoring customer satisfaction to concrete and memorable experiences. Passengers can engage with and evaluate these elements directly, providing reassurance about the value of their investment in the service. As a result, cruise services achieve a unique positioning on the tangibility spectrum by offering an experiential blend of comfort, luxury, and functionality that sets them apart from other forms of transport.
Liner services occupy a middle ground on the tangibility spectrum, positioned between cruise and tramp services. This placement is primarily due to their standardised operations, which incorporate tangible and intangible elements. The nature of container shipping, characterised by fixed routes, regular schedules, and established infrastructure, contributes to a more tangible service offering compared to the variability of tramp services. One of the most notable tangible aspects of liner services is the use of containers themselves. These physical units, often branded with the shipping company’s logo, serve as visible and standardised assets that customers can associate with the service. The consistent use of containers ensures that goods are protected, efficiently handled, and easy to identify, reinforcing the perception of reliability.
The infrastructure supporting liner services further enhances their tangibility. Ports and terminals, equipped with advanced facilities like container cranes and storage areas, provide physical touchpoints where customers can witness the operations of the shipping process. These locations often showcase the scale and efficiency of the service, offering customers a degree of reassurance about the professionalism and capability of the shipping provider. Moreover, the integration of digital tracking systems adds another layer of tangibility. Customers benefit from real-time updates on the status and location of their shipments, which significantly improves transparency and trust. The ability to monitor shipments throughout their journey bridges the gap between the physical and intangible elements of the service, offering customers a sense of control and involvement. By combining these tangible features with the reliability of standardised schedules and routes, liner services strike a balance that meets the needs of diverse customers, from logistics providers and freight forwarders to individual shippers. This unique positioning on the tangibility spectrum reflects the industry’s focus on creating a seamless and visible service experience, distinguishing liner services from the experiential luxury of cruises and the less structured nature of tramp services.
Finally, tramp shipping represents the least tangible form of shipping services, characterised by its highly flexible and customised operations. Unlike liner services with standardised routes and schedules or cruises offering structured experiences, tramp shipping is tailored to meet customers’ needs, often on a case-by-case basis. This customisation makes tramp shipping more intangible, as the service is shaped by dynamic factors rather than predefined frameworks. The absence of fixed schedules or routes is a defining feature of tramp shipping. Vessels operate demand-driven, moving bulk commodities, oil, or gas cargo to destinations determined by individual contracts or charter agreements. This variability introduces intangibility, as customers cannot rely on the predictability of predefined timetables or routes. Instead, the service’s value lies in adapting to changing requirements, whether accommodating large volumes, specialised cargo handling, or short-notice deployment. Another contributor to the intangibility of tramp shipping is the nature of the cargo itself. The transported goods often consist of raw materials like coal, grain, or crude oil, which do not require standardised units like containers. The absence of visible, branded, or uniformly handled assets further distances tramp shipping from tangibility, as customers may not interact with physical manifestations of the service.
In tramp shipping, the customer experience relies heavily on the operational expertise and professionalism of the shipping company. Customers trust the company’s ability to coordinate logistics, ensure timely delivery, and meet specific cargo handling requirements. This expertise, while crucial, is intangible—it is demonstrated through behind-the-scenes operations such as route optimisation, port negotiations, and adherence to safety and regulatory standards. Tramp shipping companies often emphasise their reputation, reliability, and proven track records in handling complex logistics to mitigate the inherent intangibility. Contractual arrangements play a pivotal role in providing customers with assurance and clarity, outlining the scope of the service and the terms of engagement. In this way, the intangibility of tramp shipping is balanced by the trust and confidence built through strong relationships and consistent performance. Ultimately, the tailored and flexible nature of tramp shipping is both its strength and a source of intangibility. While it lacks the physical and standardised elements of other shipping services, its ability to cater to unique customer needs ensures its continued relevance and indispensability in global trade.
 
Inseparability of Production and Consumption
Services are uniquely characterised by their offerings' simultaneous production and consumption, setting them apart from tangible products, typically manufactured, stored, and consumed at separate points in time. Still, this inseparability is particularly evident in the transport sector, where service delivery occurs in real-time and often in direct interaction with the customer. Unlike goods that can be stockpiled and accessed as needed, services provided by shipping or airline companies are inherently tied to the moment of their delivery. In the case of shipping services, customers frequently book shipments or voyages in advance, committing to the service before it is physically produced. For instance, reserving a container slot on a liner service or chartering a vessel in tramp shipping involves a purchase decision before the actual transport or charter. Similarly, in the airline industry, passengers secure their tickets well before boarding the flight. However, the service itself—transport from one location to another—is only produced and consumed during the sea voyage or the air flight.
The real-time nature of service delivery has profound implications for the customer experience. Because the production and consumption of the service occur concurrently, customers are directly impacted by the quality of the service at the point of delivery. For example, vessel punctuality, port efficiency, and seamless cargo handling are critical role in shaping customer perceptions of maritime transport. Any disruptions—delays, poor communication, or operational inefficiencies—immediately influence satisfaction levels, as the service experience cannot be separated from the delivery process.
This inseparability also underscores the importance of interaction between service providers and customers. The quality of these interactions significantly affects the overall perception of the service. In shipping, this could involve transparent communication regarding vessel schedules, proactive problem-solving for delays, or the availability of real-time tracking systems. Additionally, the simultaneous nature of service production and consumption heightens the need for operational precision and responsiveness. Service providers must be adept at managing variables in real-time, from unexpected weather conditions affecting shipping routes to last-minute cargo adjustments or flight delays. Customers rely on the expertise and reliability of service providers to ensure a seamless experience, even under challenging circumstances. In conclusion, the inseparability of production and consumption in the transport sector amplifies the importance of real-time service delivery and provider-customer interactions. This unique characteristic challenges companies to consistently deliver high-quality, responsive, and customer-centric services, as the impact of their efforts is immediately felt and judged by the customer during the point of consumption.
 
Heterogeneity of Services
Shipping services are inherently heterogeneous, influenced by various factors that make each service experience unique. This variability arises from the significant reliance on human factors, such as office personnel or crew performance, and the complexities of operational procedures and external environmental conditions. The quality of service a shipping line provides can fluctuate based on the experience and efficiency of the crew, the prevailing weather conditions, and unforeseen logistical challenges such as port congestion, technical malfunctions, or customs delays. In particular, tramp shipping—where vessels are employed on an ad-hoc, as-needed basis to transport cargo to various locations—is a prime example of this service heterogeneity. In tramp shipping, the service is customised to meet each customer’s specific needs and requirements, which can vary greatly depending on the type of cargo, the destination, and the customer’s particular preferences.
However, even though the service is tailored to each customer, this customisation is a standard offering across most shipping companies, especially when handling similar cargo types. This variability in service provision poses significant challenges to standardising shipping services, as every shipment may present different logistical, operational, and environmental considerations. Despite these challenges, the customisation of services in the shipping industry is formalised through contractual agreements, with one of the primary mechanisms being the charter party. A charter party is a legally binding agreement between the shipowner and the charterer outlining the service’s terms and conditions. Different charter parties exist to suit the requirements of different markets and shipowners’ interests, but the voyage charter party is the most relevant one in this context. This contract governs the specifics of the cargo and its transport and accounts for the potential variations in service that may occur throughout the shipping process.
 
Perishability of Shipping Services
One of the defining characteristics of services, in contrast to tangible goods, is their inherent perishability. Unlike physical products, which can be stored, resold, or returned if not needed or used, services are time-bound and cannot be saved for later use. This quality is particularly evident in the shipping industry, where the perishability of services is demonstrated through the unused capacity of ships over specific routes within scheduled timeframes, especially during periods of low demand. However, when demand for shipping services is low, the available space on these vessels may remain unutilised. This unused capacity—whether in empty containers, unused cargo hold space, or vacant passenger seats—represents a lost opportunity for revenue generation. This is because once the ship sets sail, any unfilled capacity for that voyage elapsed and cannot be reclaimed or retrofitted to another journey later.
For example, if a ship departs with empty containers or substantial unutilised cargo space, the revenue that could have been generated by filling those spaces is permanently lost. Moreover, the perishability of shipping services also means that scheduling and capacity management are critical components of the industry’s operational efficiency. If the shipping company cannot align its service offerings with demand trends, it risks underutilisation during peak periods and overcapacity during off-peak periods. While overcapacity can result in additional costs, underutilisation creates lost revenue and operational inefficiencies that cannot be corrected after the service is provided. This issue is particularly challenging for shipping companies, as the opportunity to monetise the available space expires once the voyage has begun, making it impossible to recover the revenue from those unfilled spaces during that specific journey.  This phenomenon makes it essential for shipping companies to adopt sophisticated forecasting models, flexible pricing strategies, and demand management techniques to minimise the impacts of service perishability. Additionally, strategies like dynamic pricing, early booking incentives, and backhaul optimisation are often employed to ensure that available space is filled as efficiently as possible, reducing the financial impact of any potential capacity loss.
 

4. Mitigating the Challenges of Intangibility, Heterogeneity, Inseparability, and Perishability in Shipping Services

Shipping services face several inherent challenges related to their intangible, heterogeneous, inseparable, and perishable nature. However, shipping companies have developed several strategies incorporating tangible elements into their offerings, helping to address these challenges while enhancing customer satisfaction and operational efficiency. These approaches give customers greater control, visibility, and a more predictable experience. Shipping companies’ key strategies to address these issues are enhanced visibility, standardised service features, customer-centric innovations, optimising capacity utilisation, and drawing attention to the role of the servicescape.
Enhanced Visibility. To mitigate the intangibility of shipping services, companies offer digital platforms that provide customers with real-time tracking and documentation services. These platforms allow customers to monitor the status of their shipments, track their progress, and stay informed about key details such as expected arrival times, delays, and customs clearance statuses. The real-time visibility these digital tools provide creates a tangible sense of control and transparency, allowing customers to engage directly with the shipping process. For instance, container shipping companies typically provide online portals where customers can input tracking numbers and access detailed information about their cargo. This visibility not only enhances the customer experience by providing clarity but also allows shipping companies to demonstrate the reliability and professionalism of their service offering. The digital tools also reduce customer uncertainty, transforming an intangible service into a more concrete and understandable process.
Standardised Service Features. In liner shipping, standardisation plays a crucial role in reducing service heterogeneity. By adopting standardised operations, such as specific container sizes and specifications, and maintaining regular sailing schedules, shipping companies create a consistent service experience for customers. These elements help offset the variability in service delivery by ensuring that, regardless of external factors like weather or crew performance, customers can expect a certain level of reliability. Standardised service features are particularly effective because they allow shipping companies to minimise the unpredictability of the service experience. Customers know what to expect when they book, from the types of containers available to the frequency of sailings. This reduces perceived risk, especially for businesses that rely on consistent and timely deliveries. Additionally, the reliability of these standardised elements fosters greater trust and long-term customer loyalty.
Customer-Centric Innovations. In sectors like cruise shipping, operators focus on providing tangible, memorable experiences beyond just the service’s transport aspect. Cruise companies bridge the gap between service delivery and customer expectations by emphasising luxurious onboard amenities, entertainment options, and high-end customer service. This approach highlights the importance of personalised experiences and enhances the overall perceived value of the service. These tangible innovations are central to transforming an intangible service, such as transport, into a fully immersive experience. Cruise operators can create lasting impressions allowing customers the opportunity to engage with the service on a sensory and emotional level, ensuring customer satisfaction and increasing the likelihood of repeat business.
Optimising Capacity Utilisation. The perishability of shipping services, mainly when vessels are underutilised, is a significant concern for many shipping companies. To address this issue, many companies employ predictive analytics to forecast demand and optimise vessel capacity. Predictive tools analyse patterns in historical data to predict periods of high and low demand, allowing companies to adjust their offerings accordingly. For instance, shipping companies can optimise vessel deployment by shifting ships to routes with anticipated higher demand or altering booking policies to ensure more efficient use of cargo space. This minimises underutilisation and allows shipping lines to adjust pricing and service offerings based on real-time demand forecasts, further improving revenue generation.
The Role of the Servicescape. An often overlooked but highly impactful concept in the service industry is the servicescape—the physical or digital environment in which services are delivered. In shipping, the servicescape extends beyond just the vessel; it encompasses offices ashore and other interfaces such as the customer service interface, ports of call, waiting areas for passengers or shippers, and online booking platforms. Concerning offices ashore, the design and functionality of these spaces significantly influence the customer experience. For example, a well-designed port terminal, with clear signage, easy navigation, and modern facilities, enhances customer satisfaction by smoothly transitioning between different stages of the shipping process. Similarly, the user interface of digital platforms, such as booking platforms or apps and tracking systems, is an integral part of the servicescape. Concerning digital platforms, a user-friendly, efficient, and visually appealing online experience strengthens customer trust and adds a layer of tangibility to an otherwise intangible service. By incorporating thoughtful elements into the servicescape—whether through physical improvements to infrastructure or digital innovations in customer interaction—shipping companies can better manage the complexities of service delivery, reduce customer anxiety, and improve the overall experience.
 

5. The Servicescape Concept

Servicescape is a concept that refers to the environment in which a service is delivered and where the service provider and customer interact. The term, first introduced by Bitner (1992), refers to the physical environment and encompasses the design, atmosphere, and overall ambience of a service setting. It plays a critical role in shaping customer perceptions, influencing their experiences, and, ultimately, affecting their satisfaction and behaviour. The servicescape can be considered the stage upon which the service process unfolds.
As Bitner (1992) demonstrated, the servicescape concept includes the physical elements that surround and influence the service experience. This is the case of ambient conditions, spatial layout and functionality, signs, symbols, and artefacts reinforcing the brand’s identity, social factors involving the behaviour and appearance of employees and customers in the space and visual appearance represented by the colours, textures, materials, and decoration used in the service environment. Together, they play a critical role in shaping customer perceptions, influencing their experiences, and, ultimately, affecting their satisfaction and behaviour. These elements are presented in the paragraphs below.
Ambient Conditions are intangible aspects of the environment that affect the five senses—sight, sound, smell, touch, and taste. Ambient conditions include lighting, music, temperature, air quality, and scent. Each of these can influence the customer’s emotional and psychological state. For example, dim lighting and soft music in a spa may promote relaxation, while bright lighting and energetic music in a gym may encourage physical activity. The careful manipulation of ambient conditions can create a specific mood, such as serenity in a spa or excitement in a theme park, which aligns with the business’s goals.
From a shipping perspective, ambient conditions remain crucial, though their application may vary depending on whether the context is cargo shipping or passenger shipping. In passenger shipping, such as cruise lines or ferries, ambient conditions are carefully curated to enhance the guest experience and reflect brand identity. Subtle choices in lighting—whether warm, soothing tones in lounges or brighter, more energetic hues in entertainment zones—can establish the mood throughout the voyage. Sound considerations include low-volume background music in dining areas to encourage relaxed conversation and well-designed public address systems that deliver clear announcements without overwhelming passengers. Additionally, temperature and air quality are vital to passenger comfort; a well-ventilated interior maintains a pleasant climate on board, minimizing seasickness and creating a healthier, more inviting atmosphere. Even scent can be harnessed, with fresh or calming aromas used in spa areas or common spaces to enhance feelings of relaxation and luxury.
On cargo vessels, ambient conditions directly influence crew well-being and operational efficiency, impacting morale and productivity during long voyages. Adequate lighting in workspaces ensures safety and reduces eye strain, while carefully regulated temperature and air quality in crew quarters and control rooms contribute to a comfortable living environment. Managing noise is also critical; controlling engine sounds or ventilation systems helps crew members rest better, lowering fatigue and improving overall performance. In ports and terminals, thoughtful ambient conditions—such as good lighting to guide trucks and forklifts or proper ventilation to reduce fumes—can boost efficiency and safety, reassuring customers and staff that operations are professional and reliable.
In all these scenarios, carefully manipulating ambient conditions helps shipping companies align the physical environment with their operational and branding goals. Whether transporting passengers in style or ensuring cargo moves with minimal disruption, attention to lighting, sound, temperature, and air quality fosters positive emotional and psychological states among customers and employees. Over time, this creates a more trustworthy, efficient, and enjoyable servicescape, reinforcing a company’s reputation for quality and care.
The arrangement and design of furniture, equipment, and spaces fall into Spatial Layout and Functionality. Spatial layout affects how easily customers and employees can move within the environment. It also influences the perceived functionality and comfort of the space. In restaurants, for instance, efficient layouts can help waitstaff serve customers more quickly, while an intuitive floor plan in a retail store can help customers easily find what they need. Effective spatial layout considers both aesthetic appeal and practical usability, ensuring that the environment meets the needs of all users without compromising on design. From a ship’s perspective, Spatial Layout and Functionality involve designing and organising physical spaces and elements that contribute to the onboard experience for passengers and crew. Spatial layout and functionality will cover public spaces, cabins, and recreational facilities for dealing with passengers. From a cargo ship perspective, it refers to the physical design and organisation of spaces to optimise operations, safety, and crew well-being in operational areas such as cargo hold and storage spaces and deck areas, engine and machinery spaces, crew areas, which must be governed by safety and emergency layout, flow accessibility to support environmental considerations and efficiency.
Signs, Symbols, and Artefacts include signage, artwork, decorations, and other visual cues that guide customers and convey brand identity. Signs can direct customers, offer information, or reinforce rules and guidelines. Symbols and artefacts, such as artwork or interior design choices, can also communicate the service’s theme, values, or level of sophistication. For example, high-end restaurants often use elegant decor to signal exclusivity and luxury, while playful signage indicates fun and activity in a children’s play area. These elements’ strategic placement and design are crucial for reinforcing the brand’s message and facilitating customer navigation.
From a shipping perspective, signs, symbols, and artefacts are integral to creating a clear, consistent, and engaging environment for customers and employees. In passenger shipping, such as cruise lines, signage can direct travellers to various amenities—dining areas, entertainment venues, or cabins—helping reduce confusion and ensuring a smooth flow of foot traffic. Visual artefacts, like nautical-themed artwork, can reinforce the maritime identity and heritage of the company, while carefully chosen design elements reflect the brand’s desired level of luxury or adventure. In cargo shipping, straightforward and prominent signage in ports and vessels is essential for safety and efficiency, guiding trucks, forklifts, and crew through loading and unloading operations. Symbols or colour-coded markers on containers, for instance, help identify contents quickly and communicate handling instructions, reducing errors and potential hazards. Whether aesthetic or functional, these artefacts ultimately reinforce the shipping company’s brand identity, convey critical information, and enhance the overall user experience—whether that user is a leisure traveller, a cargo client, or a crew member.
Finally, environmental design and aesthetics encompass the overall visual and architectural design of the space, which includes colour schemes, textures, and materials used in construction. Aesthetics are particularly important for creating a brand identity or reinforcing the emotional tone the business wants to project. For example, a modern minimalist café with sleek, neutral-coloured furniture creates a different atmosphere than a cosy coffee shop with rustic, warm colours and wooden accents. The choice of materials and design reflects the service quality and can significantly influence first impressions. Table 1 compares the three main shipping companies regarding aesthetics, vessel design, office spaces, and insight approaches for Mediterranean Shipping Company (MSC), Maersk, and CMA-CGM.
These environmental factors significantly shape customers’ cognitive, emotional, and behavioural responses, influencing how they perceive the service, interact with it, and ultimately evaluate their experience. Cognitive Responses occur when the physical environment influences how customers perceive the service. This includes their understanding of the space, whether they find it functional, and how it shapes their perceptions of quality. A well-organised, clean environment signals professionalism and competence, whereas cluttered or poorly designed spaces may create negative cognitive evaluations. For instance, a well-maintained retail store with clearly labelled sections and uncluttered aisles will likely leave customers with a positive impression of the brand’s reliability. From a shipping perspective, the concept of cognitive responses refers to how the physical environment of a shipping company—whether on ships, at ports, or in customer-facing spaces—shapes perceptions of service quality, professionalism, and reliability. This applies to cargo customers (business-to-business) and passengers (in the case of cruise shipping or ferry services).
 
Table 1: Environmental Design and Aesthetics Elements Among the Main Container Shipping Lines
  Mediterranean Shipping Company (MSC) Maersk CMA-CGM
Aesthetic Approach Modern yet elegant. Iconic and trusted maritime identity. Focus on innovation and sustainability.
Minimalist designs with bold lettering. Distinctive blue and white colour palette with 7-point star logo. Bold blues and reds symbolize trust and energy.
The black-and-white colour scheme conveys sophistication and reliability. Represents trust, stability, and maritime heritage. Branding emphasises leadership in energy transition.
Vessel Design Clean lines and functional layouts balance efficiency and quality. Simple, standardized container layouts. Sleek, robust designs with cutting-edge technology.
Naming conventions (e.g., “MSC Virtuosa”) add refinement. Emphasis on global trade, operational precision and eco-friendliness commitment. LNG-powered fleet demonstrates a commitment to eco-friendliness.
Brand Experience Projects luxury, reliability, and sustainability. Legacy and operational excellence as a market leader. Highlights eco-innovation and forward-thinking logistics solutions.
Investments in green technologies reflect eco-conscious image. Offices incorporate technology and eco-friendly materials. Terminals and offices have modern, minimalist aesthetics.
Insight Aligns with a dual focus on container shipping and cruise operations. Reflects trust, heritage, and enduring industry leadership. Appeals to customers prioritizing innovation and sustainability.
Source: Paixão Casaca (2025)
 
Emotional Responses emerge when the servicescape can evoke emotional reactions such as pleasure, excitement, relaxation, or anxiety. For example, a well-designed servicescape that feels welcoming and comfortable can generate positive emotions, leading to higher customer satisfaction. Conversely, a poorly designed servicescape can evoke negative emotions, such as stress or frustration, deterring repeat visits. For instance, a noisy, overcrowded waiting area in a clinic may heighten patient anxiety, while a calm and orderly space with comfortable seating can help patients feel at ease. From a shipping perspective, emotional responses refer to the feelings and reactions evoked by the physical and digital environments provided by shipping companies, whether for cargo customers, passengers, or crew members. The servicescape in shipping—vessels, ports, terminals, or customer service environments—can significantly influence emotions such as trust, comfort, stress, or anxiety, affecting satisfaction and loyalty.
Finally, Behavioural Responses encourage customers to stay longer, spend more, and return if they have positive emotional and cognitive reactions to the servicescape. A pleasant servicescape can encourage desired behaviours like purchasing, staying, or engaging more deeply with the service. On the other hand, an uncomfortable or confusing environment can lead to avoidance behaviours, such as leaving early or not returning. For example, a retail store with poor lighting and disorganised shelves may see customers leaving without purchasing. In contrast, a bright, inviting store with clear signage may encourage browsing and buying. In the context of shipping, behavioural responses describe how customers (cargo customers, passengers, or stakeholders) and crew interact with and respond to the physical and operational environment of the shipping company. A positive servicescape—comprising vessels, port facilities, digital platforms, and customer-facing spaces—can encourage desired behaviours, such as repeated business, extended usage, or positive referrals. Conversely, a poorly managed servicescape may lead to avoidance behaviours, like losing customers, passengers, or crew.
Simultaneously, Bitner (1992) identified three types of servicescapes: Self-Service Environments, Interpersonal Service Environments, and Remote Service Environments. In Self-Service Environments, the customer performs most tasks with little or no employee assistance. Examples include ATMs, self-checkout lanes, and fast-food outlets. The servicescape in these settings is designed to facilitate customer independence, often with clear signage, intuitive layouts, and easy-to-use equipment. For instance, self-checkout areas in supermarkets are often brightly lit with user-friendly screens and signage to help guide customers through the process. The simplicity and efficiency of the servicescape in such environments are critical for ensuring a seamless experience.
Interpersonal Service Environments involve significant interaction between customers and employees, such as in hotels, restaurants, and retail stores. The servicescape in these environments is crucial because it affects how customers perceive the service and how employees perform their roles. A pleasant, well-organised space can improve employee morale and customer satisfaction simultaneously. For example, a high-end restaurant’s servicescape might include elegant table settings, subdued lighting, and calming background music, creating an environment conducive to efficient service and customer relaxation.
Finally, Remote Service Environments require minimal or no physical interaction between the service provider and the customer. Examples include mail-order services or online customer support. In such cases, while the servicescape may not involve a physical location, the virtual or operational interface, such as a website or call centre design, similarly shapes the service experience. A user-friendly website with intuitive navigation, appealing visuals, and efficient checkout processes can mimic the role of a physical servicescape in creating a positive customer experience.
The servicescape also influences employees, affecting their job satisfaction, performance, and customer interactions. A well-designed, comfortable, and functional environment can make employees more efficient, happier, and more motivated, enhancing the customer experience. For example, a well-ventilated, spacious kitchen with ergonomic workstations can improve the efficiency and morale of restaurant staff. In contrast, a poorly designed or stressful environment can lead to employee dissatisfaction, lower productivity, and higher turnover rates, negatively affecting service quality. The benefits of a positive servicescape are especially pronounced for seafarers, who often spend extended periods working and living on ships. Well-ventilated, ergonomic workstations can reduce fatigue and boost productivity, while comfortable crew quarters and recreational facilities help mitigate stress, support mental health, and foster higher morale. Conversely, a poorly designed or stressful onboard environment can diminish crew satisfaction, increase turnover rates, and jeopardize service quality and operational safety at sea.
The emergence of information technology has revolutionised the servicescape concept, extending its boundaries beyond the physical environment to include digital spaces. Information technology has enabled shipping companies to integrate advanced tools such as real-time tracking systems, automated port operations, and digital booking platforms, transforming how customers and stakeholders interact. For example, digital dashboards for cargo tracking provide a seamless user experience, enhancing transparency and reducing uncertainty, positively influencing cognitive and emotional responses. Virtual walkthroughs of cruise ships or terminals allow passengers to explore and familiarise themselves with the environment before their journey, creating a sense of anticipation and trust. Moreover, information technology-driven systems like predictive maintenance and artificial intelligence-powered scheduling optimise operational efficiency, ensuring a well-organised and smooth servicescape. This digital transformation enhances customer satisfaction and fosters stronger behavioural responses, encouraging loyalty, higher engagement, and repeat usage of services. By integrating information technology, the servicescape evolves into a hybrid space that aligns with modern customer expectations for convenience, personalisation, and innovation.
Considering the above, servicescapes are strategically crucial for companies. A unique and well-designed servicescape can help differentiate a business from competitors. In industries where products are similar, the servicescape can become a key element of brand identity and competitive advantage. For instance, boutique hotels often use distinctive decor and personalised touches to create a memorable experience that differentiates them from chain hotels. Similarly, retail stores like Apple use sleek, minimalist designs to reflect their brand’s focus on innovation and quality. The physical and digital environments play a role in shaping customer expectations and positioning the brand. For instance, a luxury hotel invests in opulent decor and high-end amenities to position itself as an exclusive, premium service provider. In contrast, a budget hotel may use a simple, functional servicescape to emphasise value and efficiency. Positioning through servicescape is particularly important in industries like hospitality and retail, where the physical setting is a key part of the overall value proposition. In the modern business landscape, delivering a superior customer experience is crucial. A well-thought-out servicescape is a key component of experience management, as it sets the tone for interactions, evokes desired emotional responses, and aligns with overall brand strategy. For example, theme parks like Disneyland use immersive servicescape to create magical experiences for visitors, with every element meticulously designed to align with the park’s storytelling and branding.
Despite its importance, designing an effective servicescape comes with challenges. Businesses must strike a balance between aesthetic appeal and functionality. Overly elaborate designs may confuse or overwhelm customers, while overly simplistic designs may fail to create the desired emotional impact. Additionally, servicescape design must consider cultural differences, customer preferences, and evolving trends. For instance, a servicescape that appeals to a younger demographic may need to incorporate technology and interactive elements, while a more traditional design might resonate better with older customers.
 

6. Servicescape in Container Shipping

In the maritime transport sector, servicescape refers to the physical and digital environments in which shipping services are delivered. While traditionally applied to retail or hospitality, this concept holds equal relevance in container shipping, where infrastructure, technology, and stakeholder interactions significantly affect customers’ satisfaction and operational outcomes. Considering that Malcolm McLean’s invention of the container allowed going from multimodality into intermodality simply by adding the standard cargo unit element to the transport chain, it can be considered that, in container shipping, servicescape encompasses different stakeholders and consequently, a range of physical environments, namely container shipping companies, ships, ports, container terminals, and virtual interfaces like tracking systems that facilitate the movement of goods.
Companies like MSC, Maersk, CMA-CGM and  Hapag-Lloyd are already integrating servicescape elements into customer experience strategies to ensure consistency across touchpoints by investing in cohesive branding, digital platforms, and well-designed port and onboard facilities. These efforts aim to align every customer interaction—whether online, at a terminal, or onboard a vessel—with a unified brand identity and high service quality standards of quality. By holistically managing the physical and digital aspects of the servicescape, these companies enhance customer trust, boost operational efficiency, and foster stronger relationships across the global shipping ecosystem.
 
Table 2: Key Elements of Servicescape in Container Shipping
AMBIENT CONDITIONS SPATIAL LAYOUT AND FUNCTIONALITY SIGNS, SYMBOLS, AND ARTEFACTS ENVIRONMENTAL DESIGN AND AESTHETICS
Lighting and Visibility Terminal Design Visual Cues Employee Spaces
Sound Levels Navigation Brand Identity Ship Aesthetics
Air Quality Technology Integration Sustainability Artefacts Virtual Aesthetics
Temperature Control      
Source: Paixão Casaca (2025)
 
Table 2 presents servicescape elements in container shipping. These elements collectively shape the experience of customers, employees, and partners, making it crucial for companies to invest in designing and optimising these spaces to enhance operational outcomes and customer loyalty. Considering Bitner’s (1992) servicescape approach, each element embraces several aspects. Ambient Conditions incorporate ‘Lighting and Visibility’, ‘Sound Levels’, ‘Air Quality’ and ‘Temperature Control’. Spatial Layout and Functionality relate to ‘Terminal Design’, ‘Navigation’ and ‘Technology Integration’. Signs, Symbols, and Artefacts cover ‘Visual Cues’, ‘Brand Identity’ and ‘Sustainability Artefacts’. Finally, Environmental Design and Aesthetics comprise ‘Employee Spaces’, ‘Ship Aesthetics’ and ‘Virtual Aesthetics’.
However, from a container shipping perspective, the service provider, i.e. the stakeholder, and the customer interaction differs along the transport chain since this interaction is related to where the service is produced. Therefore, the relevance of each element’s aspect depends on the role played by each stakeholder along the transport chain. For instance, while lighting and visibility can be enhanced in port and terminal environments because adequate lighting ensures 24/7 safe and efficient operations at container terminals, other factors may be more relevant from a shipping company’s perspective. This is true for temperature control, brand identity, ship aesthetics, and virtual aesthetics since all these aspects are related to container shipping operations. Considering this assumption, Table 3 identifies servicescape aspects to be addressed by container shipping companies. When analysing Table 3, it becomes evident that physical infrastructure and digital interfaces play a pivotal role in influencing the behaviours of both customers and employees in container shipping companies.
As container shipping companies seek to enhance operational efficiency and improve user experiences, the self-service environment for cargo booking has emerged as a critical focal point. By placing self-service kiosks or dedicated terminals in ports, container shipping companies empower customers to perform routine booking tasks independently, with well-designed kiosks featuring clear instructions, ergonomic placement, and minimal technical glitches that reduce confusion and foster a sense of control. Simultaneously, online booking platforms and mobile apps extend self-service capabilities by allowing customers to reserve cargo space from anywhere, 24/7. This speed and ease of booking, combined with real-time updates that provide transparency in capacity and scheduling, significantly boosts convenience. The synergy between physical and virtual self-service points reduces wait times and streamlines the entire process. As customers perceive the experience to be smooth and efficient, they are more likely to return for future services and recommend the company to their peers, ultimately enhancing loyalty and strengthening the brand’s reputation.
The interpersonal service environment shapes customer satisfaction, loyalty, and overall brand perception within the container shipping industry. Dedicated customer service counters, private meeting rooms, and comfortable waiting areas facilitate in-person interactions between shipping personnel and customers. This provides a clean and professionally organised space that signals competence and reliability and encourages discussions on more complex issues, such as special cargo requirements or tailored solutions. Simultaneously, digital support channels—from chatbots and email support to video conferencing—ensure quick access to assistance regardless of geographical location or time zone, allowing problems to be resolved swiftly. When customers feel their concerns are addressed promptly and effectively, whether face-to-face or online, they develop a stronger trust in the shipping company, ultimately leading to repeat bookings and long-term relationships as they associate the brand with responsiveness and professionalism.
In container shipping, the remote service environment is vital for instilling customer confidence by seamlessly integrating physical and digital elements. Well-maintained ships visibly reinforce cargo safety, while organised ports with clear signage and streamlined processes help minimise congestion and reduce errors, ultimately improving turnaround times. Meticulous cargo handling procedures, such as careful stacking and the use of proper equipment, further demonstrate the company’s commitment to safeguarding goods. At the same time, real-time tracking systems allow shippers to monitor the progress of their cargo, alleviating uncertainty and cutting down on repetitive status inquiries. Predictive maintenance and voyage progress tools optimise routes and prevent breakdowns, enhancing overall operational efficiency. By combining these robust physical operations with transparent digital solutions, shipping companies build credibility, and as customers witness smooth handling and accessible tracking, they are more inclined to remain loyal and may even upgrade to premium services like guaranteed delivery times or specialised cargo handling.
 
Table 3: Analysis of Container Shipping Servicescape Across Key Aspects
ASPECT PHYSICAL ENVIRONMENT DIGITAL ENVIRONMENT BEHAVIOURAL IMPACT
1. Self-Service Environment for Cargo Booking User-friendly kiosks or terminals at ports for cargo booking. Intuitive online platforms for booking cargo space. Encourages customer autonomy and repeat usage by simplifying the booking process.
Physical layouts that guide customers through self-service booking.
Mobile apps for real-time updates and seamless transactions.

Reduces dependency on personnel for routine bookings, saving time for both parties.
2. Interpersonal Service Environment for Cargo Booking and Other Issues Comfortable, well-equipped customer service areas at ports and offices. Virtual assistants or chatbots to address booking issues. Enhances trust and satisfaction when service personnel are seen as approachable and capable.
Professional meeting spaces for discussions. Video conferencing tools for resolving customer concerns remotely. Improves problem resolution efficiency, increasing customer loyalty.
Ships: Modern, clean, and well-maintained vessels. Online tracking systems providing real-time cargo updates. Customers develop trust in the company’s reliability when operations are visibly well-maintained.
Ports: Organised, clean, with clear signage and efficient layout.
3. Remote Service Environments for Transport Execution Cargo Handling: Safe and damage-free. Digital tools for monitoring ship conditions and voyage progress. Transparent tracking reduces anxiety and fosters confidence.
4. Other Tangible Elements Supporting 1), 2), and 3) High-quality business cards, stationery, and professional uniforms. An aesthetically pleasing, functional, and informative website. Tangible elements reinforce brand identity and professionalism.
Employee dress code reflecting company branding and professionalism. E-signature capabilities for contracts and documents. A polished appearance builds credibility and improves overall customer experience.
Source: Paixão Casaca (2025)
 
In the container shipping industry, tangible and digital elements convey a company’s values and standards, ultimately influencing customer perceptions and behaviours. While business cards, stationery, and uniforms may appear minor compared to port infrastructure or vessel maintenance, their visual and symbolic impact is significant: employees who wear neat, well-branded attire project competence and consistency, and high-quality printed materials reinforce brand identity during face-to-face interactions. Equally important is the virtual environment, where a clean, user-friendly website serves as many customers as possible as the first point of contact, shaping initial impressions through easy navigation and up-to-date information, and features like e-signature capabilities and digital documentation speed up transactions and reduce errors, signalling efficiency and innovation. When physical and virtual touchpoints consistently reflect a company’s values—innovation, reliability, or customer-centricity—they create a cohesive experience that instils customer and employee confidence, leading to higher engagement, positive word-of-mouth, and a more decisive competitive advantage.
The physical environment, such as the design and functionality of ports, vessels, and office spaces, directly impacts customer perceptions of service quality and operational efficiency. For instance, a clean, well-organised container yard reassures customers about the company's professionalism and encourages repeat business, while ergonomically designed crew quarters and workspaces promote employee satisfaction and retention. Similarly, virtual environments, such as digital tracking systems, online booking platforms, and customer support interfaces, shape behaviours by offering convenience, transparency, and reliability. A seamless, user-friendly digital platform can enhance customer engagement, leading to higher loyalty and trust in the company. At the same time, employees benefit from information technology tools that streamline operations and reduce workload stress. The synergy between physical and virtual servicescapes creates a cohesive experience that fosters desired behaviours—like increased spending, repeat business, and employee commitment—and minimises avoidance behaviours, such as switching to competitors or high employee turnover. Therefore, the integration and optimisation of these environments are crucial for container shipping companies to remain competitive and deliver value to their stakeholders.
From a customer behaviour perspective, the quality and efficiency of the servicescape influences customers’ perception of the shipping company’s professionalism. For instance, efficient office layouts indicating where customers must go within a company, reliable tracking systems, and transparent processes help build trust and reduce uncertainty; moreover, a seamless, stress-free shipping experience encourages repeat business. Conversely, delays, inefficiencies, or system failures can negatively affect customer satisfaction and long-term relationships, which results in lost sales. Therefore, a well-maintained physical and virtual servicescape leads to increased customer loyalty and stronger partnerships with freight forwarders and logistics companies, improving the company’s bottom line.
From an employee behaviour perspective, a safe and ergonomically designed work environment improves employee morale and productivity, directly benefiting operational efficiency. Shipping companies prioritising such designs can reduce turnover and ensure high-performance levels. Shipping is a 24/7/365 business environment in which employee stress prevails, and high-quality servicescapes can foster employee loyalty in a physically demanding industry, reducing turnover and ensuring consistent service quality.
The result of container shipping companies addressing these aspects is that they positively impact their branding, helping them to differentiate from competitors and position themselves in the market, either emphasising cost-efficiency and appealing to cost-conscious customers or designing premium services to cater for sophisticated customers looking for unique service delivery. Underlying this outcome is employees’ willingness to be more creative, derived from the physical and virtual environments in which they work. The result is an improved customer experience management. Shipping companies that integrate physical and digital servicescape elements into a broader customer-first strategy can create a more cohesive and positive customer experience, positioning themselves as leaders in customer satisfaction.
 

7. Conclusion

The servicescape is strategically crucial for businesses because it can help them differentiate from competitors, particularly in industries that deliver similar services as the shipping industry, while helping customers shape their expectations. At the same time, shipping companies demonstrate their value and efficiency and align customer experience with their brand strategy. Moreover, the servicescape is more than just the physical setting where services are delivered. It is an integral part of the overall service experience, playing a pivotal role in shaping the success of service businesses. It gives customers a first impression of the service, which inevitably significantly impacts their overall perceptions and behaviour (An et al., 2023). A thoughtful design and management of the servicescape can enhance customer satisfaction, brand loyalty, and a competitive edge in the marketplace.
In container shipping, servicescape encompasses physical infrastructure and digital interfaces. By creating functional, sustainable, and user-friendly environments, shipping companies can enhance operational efficiency, build customer loyalty, and gain a competitive edge in the global logistics market. A well-executed servicescape strategy boosts profitability and supports long-term resilience and adaptability in a dynamic industry.
A strong servicescape in container shipping hinges on harmonizing the physical (ships, ports, kiosks, uniforms) and digital (websites, apps, tracking systems) environments. This integrated approach ensures customers have consistent, user-friendly experiences across all touchpoints. By offering self-service booking platforms, interpersonal support, and transparent execution processes, shipping companies can significantly boost customer satisfaction and foster long-term loyalty. Conversely, well-maintained vessels, organised terminals, and reliable tracking reinforce the perception of professionalism and competence. Adding polished tangible elements (business cards, uniforms) further cements a strong brand identity. Finally, Companies that invest in a seamless, high-quality servicescape—physically and virtually—are more likely to attract and retain both customers and skilled employees. Over time, this drives competitive advantage and long-term growth in the container shipping sector.
 

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Note

This text was simultaneously published on LinkedIn on the same day.
 

About the Author

Ana Casaca was, first and foremost, a Deck Officer responsible for navigational watches. Being at sea gave her a thorough perspective of the operational side of the shipping industry. She holds a B.Sc. (Honours) in Management and Maritime Technologies from Escola Nautica Infante D. Henrique (Portuguese Nautical school), an MSc in International Logistics from the University of Plymouth and a PhD in International Transport/Logistics from the University of Wales-Cardiff. Next, she became an Experienced Lecturer, Researcher and Peer Reviewer in Maritime Economics and Logistics. In between, numerous functions and roles. For 20 years, she has been an External Expert for the European Commission, evaluating R&D/CEF proposals within the scope of maritime transport. In parallel, she has carried out other projects. She has delivered training and has been invited, since 2002, to peer review academic papers submitted to well-known international Journals. She is the author of several research papers published in well-known academic journals and member of some journals’ editorial boards, namely, Maritime Business Review Associate Editor, Journal of International Logistics Editorial Board Member, Universal Journal of Management Editorial Board Member, Frontiers in Future Transportation Review Editor, and Journal of Shipping and Trade Guest Editor. She is also the founder and owner of ‘World of Shipping Portugal’ a website initiative established in 2018 focused on maritime economics. In addition, she is a Member of the Research Centre on Modelling and Optimisation of Multifunctional Systems (CIMOSM, ISEL), Fellow of the Institute of Chartered Shipbrokers (ICS) and Member of the International Association of Maritime Economists (IAME). Apart from Shipping, she likes Travelling, Sewing and Arts. All these elements bring her on the quest for creativity, always with the expectation of doing something extraordinary!
 
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