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1 INTRODUCTION
1.1 Relevance of the research problem
The increasing demand for high-quality logistics
services has forced container shipping companies to
decrease logistics service failures to retain customers
[7]. The authors of the article have chosen a company
acting as an agent for a container shipping line
because the company seeks to decrease its service
failures and reduce the chaotic nature of its activities
by systematising them from a scientific point of view
and refining its operations at the managerial level.
The company’s administration considers that modern
scientific theories can show what the company’s
operations are like in relation to these theories.
The purpose of this article is to create a conceptual
model of personnel activity management in the
chosen company acting as an agent for a container
shipping line according to relevant scientific theories.
The research type is theoretical-descriptive.
1.2 Research methodology
The selected methodological research principles are
modern theories of management science that can
purposefully shape a scientific basis for the
A Conceptual Approach to Personnel Activity
Management in a Company Operating as an Agent
for
a Container Shipping Line
S. Lileikis
& I. Paulauskaitė
Lithuanian Maritime Academy, Klaipėda, Lithuania
ABSTRACT: The authors of the article have chosen a company acting as an agent for a container shipping line
because the company seeks to decrease its service failures and reduce the chaotic nature of its activities by
systematising them from a scientific point of view and refining its operations at the managerial level.
Employees of the company are responsible for activities such as a search for customers, price offers, contacting
clients, the conclusion of contracts, coordination of cargo transportation, document control, invoicing and
payment control. Proper execution of these operations ensures the quality of services provided by the container
line agent. The learning organisation concept, situational management theory and total quality management
theory are applicable to the management of the personnel activity process in the line. In terms of management
functions, planning is more suitable for activities such as searching for customers, price offers, conclusion of
contracts and invoicing; organising is more required when searching for customers, contacting them and
concluding contracts; leading is more suitable for activities such as contact with clients, conclusion of contracts
and payment control; control is more required when contacting customers, coordinating cargo transportation,
invoicing and contro
lling payment. A conceptual approach that theoretically reveals the principles and
possibilities of the company’s activities in the container shipping line can serve as the basis for future empirical
research to identify problems in its personnel activity management.
http://www.transnav.eu
the
International Journal
on Marine Navigation
and Safety of Sea Transportation
Volume 18
Number 3
September 2024
DOI: 10.12716/1001.18.03.2
1
666
conceptual model of personnel activity management,
considering the changes in the market, the need for
continuous training of the company’s personnel and
the assurance of the quality of the personnel’s
activities.
Therefore, the scientific basis of the research
consists of the following theories of management
science:
− Situational management theory states that
different management methods and tools can be
effective in different circumstances.
− The learning organisation concept provides that all
members of an organisation must participate in
identifying and solving problems and exchanging
information so that the organisation can learn and
change. According to this concept, information and
new technologies shape the structure and
management of organisations.
− Total quality management theory states that an
organisation must constantly improve. The main
principles of this theory are group work, the
creation of quality standards and continuous
improvement [3].
The main research method is an analysis of
scientific literature.
2 RESEARCH RESULTS
2.1 Personnel activity process in the container shipping
line
Human resources are required for a company to act as
a shipping line agent. All successful organisations
depend on the performance of their employees [10]. It
is possible to successfully organise the company’s
activities with the right staff and proper management.
The agency activity process of the shipping line,
operations of which were systematised according to
the activities of various company departments, is
shown (Fig. 1).
Figure 1. The personnel activity process in the container
shipping line
A search for customers is an important operation
aimed at attracting new customers and getting them
interested in the services provided. Companies that
want to stay competitive in today’s shipping market
need to build long-term relationships with their
customers [14]. First of all, to attract potential
customers, companies need to offer services that meet
their customers’ needs. The following factors are
important for customers: financial factors (price for
transportation, additional services and taxes);
economic factors (decrease in price due to refusal of
certain services or depending on the amount
transported); strategic factors (geographic
possibilities, planning of routes and their times);
marketing factors (satisfaction of other customers due
to services in terms of communication, adaptability,
reliability and diversity of routes and destinations);
operational factors (provision of different services,
ship distribution and coordination on a global scale)
[15].
It is necessary to know the ways in which
customers can be attracted. This requires advertising
that is designed to influence people so that their
behaviour is in line with the advertiser’s goals.
Effective advertising works as follows: it draws
attention and interest and the object advertised
becomes desirable and is acquired [19]. To find
potential customers, a company must offer services
that meet their needs and give the company a
competitive advantage.
The cost of transportation consists of
transportation from the place of pickup to the
destination. Sea freight costs are determined by the
following factors: geographical and geopolitical
(geographic distance, position in the global shipping
network, piracy, etc.); ship operating costs (current
and periodic maintenance, voyage and cargo handling
costs); transported goods; market; port infrastructure
and its productivity [12].
Liner shipping provides regular pre-announced
services between certain ports, carrying cargo at fixed
freight rates. Discounts may be applied and are
offered to regular customers only. Considering the
aforementioned factors of transportation costs and
after clarifying the transportation needs, the price is
offered to a potential customer.
Companies strive to maintain good and long-term
relationships. They look for ways to effectively
communicate with customers. The basic principles of
communication are clarity, specificity, consistency
and effectiveness [13]. Based on these principles,
contact with clients becomes effective, the desired
results are quickly achieved, relationships with long-
term clients are maintained and relationships with
new clients are created. Customers are contacted for
information on cargo transportation conditions, the
price of services, confirmation of services in case of
unplanned events and payment conditions [1].
Usually, customers change service providers due
to poor communication. It is important for companies
to communicate effectively and maintain long-term
relationships. The appropriate attitude of the
company’s employees towards customer needs and
their quick response to requests are important
elements that influence the quality of sea transport
services [14]. Information technology helps employees
react quickly. Social networks and mobile applications
are reliable and fast ways to communicate. Phone calls
and e-mails are among the main tools. Prices of
services are usually discussed by e-mail and problems
that have arisen are discussed by phone calls [1].
In liner shipping, the contract of carriage between
a cargo owner and a shipping line is called a bill of
lading. The contract of carriage specifies the carrier’s
and shipper’s responsibilities, obligations and
conditions, which are drawn up and printed by the
shipping line’s agent. This document is prepared on
the basis of the international rules of The Hague and
Rotterdam. A bill of lading usually contains the
following information: a description of the goods,
their amount, shipping dates, terms of the contract,
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information about the sender and the carrier and
information about transhipment ports and the
destination [9]. Some shipping lines offer a door-to-
door shipping service. In this case, the terms of the
contract change. Contracts for containers or non-
payment contracts for services received are signed
with shipping lines that provide more services. It is
necessary to conclude the contract responsibly and
precisely so that there are no disagreements about
responsibilities and obligations.
Line shipping is made up of cyclical routes on
which ships navigate. To make use of large vessels
efficient, cargo is transhipped to smaller vessels at
larger regional hub ports and transported further [2].
Companies that act as agents for shipping lines must
coordinate all cargo transportation, depending on
which service customers have ordered, i.e., “port-to-
port” or “door-to-door”. The following cargo
transportation operations are coordinated: creation or
change of ship route schedules; cargo handling and
distribution; distribution of the company’s empty
containers; entering the necessary information into
computer programmes; searching for carriers;
preparation and control of documents and price
determination [15]. These operations are adjusted,
supervised and managed by shipping line companies.
Problems and inconsistencies can occur during cargo
transportation. To avoid this, it is necessary to plan
and execute everything on time so that the cargo
shipment goes smoothly [5].
Cargo documents are documents that are related
to cargo shipment, for example, they contain
information about the amount, weight, value, etc.
Companies that act as agents for shipping lines must
control the aforementioned documents [11]. The most
important document that regulates commercial and
legal relations between the parties is the contract of
carriage, i.e., the bill of lading. Other documents, such
as the delivery order (which gives instructions from
the owner of goods on how to deliver them to their
destination) and the cargo manifest (a list of goods)
are also important when transporting goods by sea
[21]. Some paper documents are still used in the
transport sector. Copying, sorting and exchanging
them takes a lot of time for companies’ employees.
However, to improve working conditions and
optimise operational processes, many documents
have become electronic. In this way, their control is
carried out more simply and efficiently [17].
Cargo documents are issued considering the cargo
type and delivery place. Therefore, different
shipments require different documents, such as a
certificate of origin, commercial invoice, cargo
manifest (a list of goods) and various special
documents (dangerous goods declaration, North
American Free Trade Agreement certificate of origin,
etc.) [21]. Control of cargo documents allows
customers to avoid unplanned expenses because,
without the necessary documents, cargo
transportation may cause problems or not be carried
out.
Invoices can be electronic or paper. In the VAT
(value added tax) invoice, it is necessary to provide
information which consists of the date of issue, a
unique serial number identifying the invoice, the
customer’s VAT payer code, the name and address of
the service provider and of the customer, a
description of the amount and type of goods supplied
or the type and amount of services provided, the date
of the transaction or payment, the applicable VAT
rate, the amount of VAT payable, the partition of the
amount of VAT payable according to the VAT rate or
tax exemption and the unit price of goods or services
excluding taxes and discounts [20].
The invoice shows base rates, surcharges and
discounts. Base rates are the main part of the cost of
liner shipping services, which are determined by
shipping routes. Surcharges are collected by shipping
lines to cover additional costs associated with
transporting cargo, such as port congestion. Discounts
are reductions in shipping rates that shipping lines
offer to some customers. Discounts are applied to
increase the flow of customers in a competitive
market [9].
Receipt of payment for services performed means
that the contract has been fulfilled and both parties
have accomplished what was signed in the contract.
The control is carried out by checking whether the
payment has been received. Companies that transport
goods and provide other services include clauses on
non-payment for services in their contracts. This
simplifies the process if there are problems and
services are not paid [11].
A client must pay for the services received at the
time and according to the procedure specified in the
contract. If the contract cannot be fulfilled due to the
client’s fault, the price that was determined must be
paid. If losses occur during the provision of services
for which the service provider is not responsible, the
customer must also compensate them. When
providing liner shipping services to several customers
during one shipment, the customers are jointly
responsible for all unexpected cases [8]. Thus,
payment control is a clear and short operation whose
execution shows whether the customer fulfils the
condition specified in the contract.
2.2 Management of personnel activities in a container
shipping line
Management of personnel activities in a container
shipping line can be understood as a distribution of
the organisation’s human and economic resources in
accordance with planning, organising, leading and
controlling to provide services requested by
customers. Process management involves working
with personnel in a constantly changing maritime
business environment [4].
The personnel activity process in the container
shipping line is related to management functions and
management theories (Fig. 2).
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Figure 2. The relationship between the activity of a
container shipping line agent, management functions and
management theories
Management functions are applied to the shipping
line agent’s different operations, which can be
relevantly based on situational management theory,
the learning organisation concept and total quality
management theory.
Planning is important to getting the agency
process right. During the process of planning
personnel activities in the container shipping line it is
necessary to plan mainly four operations:
− Search for customers (there are anticipated ways
and means for reaching customers).
− Price offers (the market, competitor’s services,
advantages and disadvantages of the company are
analysed; the right price is determined and the
ability to negotiate for greater benefits for the
company must be available).
− Conclusion of contracts (suitable conditions are
provided for those seeking to sign the contract).
− Invoicing (it is necessary to provide the agreed
base rates, premiums, discounts and the right time
to send the invoice).
Planning is a management tool that gives the
shipping company dynamism in response to external
and internal changes. Customer service is a core work
for a shipping line agent. If the work is done right, it is
possible to find long-term customers, meet their needs
and gain a competitive advantage [13]. When
planning operations, it is necessary to determine the
stages that, if properly carried out, will ensure that the
planning is accomplished well (Fig. 3).
Figure 3. Procedure of planning [16]
Companies can individually apply these planning
stages to their activities. For some activities, they are
not necessary. But for a company that, for example,
focuses on learning, it is important to do it. In some
cases, it is not necessary to carry out all the planning
stages. For example, invoicing does not require all
stages, but this activity is planned anyway. To
facilitate the planning of personnel activities in the
container shipping line, new electronic tools are being
developed to solve various challenges. To automate
the ordering and invoicing operations investments are
made in software for real-time container tracking.
Planning is a key management function and
companies aim to simplify it as much as possible to
make it less challenging [18].
Organising includes the distribution of tasks and
the delegation of related responsibilities, as well as the
allocation of resources throughout the organisation to
achieve common goals [4]. For a company to be
competitive in the current shipping market, it is
necessary to establish long-term relationships with
customers [13]. Therefore, when organising the search
for customers, contacting the customers and
concluding a contract, it is important to choose the
right tools and use them purposefully, pay attention
to the customers’ needs and meet them during the
aforementioned operations. The purpose of
organising as a management function is to optimise
the organisation’s activity processes and create
conditions for increasing the efficiency of these
processes by properly selecting work methods,
employees, resources, place and time [14]. It is
necessary to organise contact with customers to
maintain proper relations. Therefore, e-mails and
phone calls should be organised in such a way that
important information reaches customers in time and
other activities can take place afterwards [1]. A quick
employee’s response to requests and his or her
appropriate attitude towards customer needs
influence the quality of maritime transport services
[14].
When organising the conclusion of a contract, the
main element is having the right conditions. The
contract specifies responsibilities and obligations and
provides important information about the services
provided. Therefore, organising the aforementioned
operation is a long and responsible process because
the services will be provided in accordance with the
agreed conditions [9]. When organising activities,
employees constantly create, acquire and transfer
knowledge, which helps the company adapt when an
unexpected situation occurs. If the company chooses
employees with the right competence, it will be easier
to achieve its planned goals. To improve employees’
performance and engagement, their meetings with
managers can be organised, where problems are
discussed and resolved and teamwork is encouraged.
Feedback received from employees is important, on
the basis of which the company can improve by
properly organising its activities in customer service
[10].
Leading is a management function concerned with
influencing people to achieve organisational goals. All
tasks in organisations are initiated by the leading
process. Managers provide information to employees
so that the desired goals and objectives are achieved.
The managers, having understood the principles of
leadership, have to effectively implement them.
Leading is about rallying people and motivating a
team to work willingly and effectively to achieve the
set goals. Leading is not only about giving orders but
also about accepting and carrying them out. To ensure
this, the motivation of groups and individuals is
needed. Otherwise, the efficiency may be lower than
desired [4].
A company that provides services must initiate
contacts with customers. This is to realise the
company’s goals, such as creating and maintaining
long-term relationships with potential customers [13].
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By initiating contacts with customers, other personnel
operations can be more efficient. During the
conclusion of a contract, the aim is to make the
conditions as beneficial as possible for the company.
Various offers, additional services and discounts for
long-term customers are provided. The goal is to
influence customers to get them interested [9].
Leading as a management function is important for
payment control to understand whether a customer
met the terms of the contract. Controlling, another
management function, is carried out by checking
whether the payment has been received. This
operation is important for concluding the next
contract with the same customer because if there are
problems or non-payment of bills, the company may
refuse to provide other services to the customer [11].
Factors that can help improve the function of
leading include understanding the goals of the
company, communicating expectations clearly,
ensuring that methods of performance evaluation are
clear and accurate, making employees’ development a
priority, using technology effectively, training
employees to perform their duties well, and
integrating changes [6]. When leading is done well, it
can contribute to the well-being of employees and the
organisation as a whole.
Controlling means checking that everything is
going according to plan, following instructions and
setting rules. If the results are not satisfactory, they
are regulated and repaired [4]. Controlling helps
evaluate how planning, organising and leading have
been carried out. Controlling can be fulfilled after all
other functions of management have been performed,
but in terms of time, control can be continuous,
periodic or random, namely:
− Continuous control is performed all the time;
during it, data is collected and processed without
interruption.
− Periodic control takes place at set moments and
repeats in a certain order.
− Random control is the collection of data at a
random moment, unexpectedly, i.e., without the
knowledge of the subject being controlled [16].
When contacting customers, it is necessary to
check the appropriateness of this operation. Clarity,
specificity, consistency and effectiveness are key to
maintaining contacts and attracting long-term
customers [13]. When coordinating cargo
transportation, the most important thing is to check
ship route schedules, cargo loading, the distribution
of the company’s empty containers, as well as the
information in computer programmes and documents
[15]. If a discrepancy is found, it is important to
correct it so that there are no errors or interruptions in
the transportation of goods.
During the control of cargo documents, it is
important to check all the necessary documents,
considering the type of cargo and the intended place
of transportation [21]. After completing the
mentioned operation, this avoids problems and
unplanned expenses since, without the necessary
documents, the shipment may cause problems or may
not be carried out, causing damage to both the
company and the customer.
The invoice contains basic rates, premiums and
discounts. This is an important document that shows
the exact amount to be paid by the customer for the
services received. Therefore, during the control of
invoicing, it is important to check the indicated
amounts and services that have been provided to the
customer [9]. Payment control is carried out at the
time specified in the contract, by which the payment
must be received. The control is carried out by
reviewing the bank transfers received in the
company’s account. Receiving payment for the
services provided means that the contract has been
fulfilled and both parties have accomplished what
was signed in the contract [11].
3 CONCLUSIONS
The agency process of a container shipping line is
directly related to a company’s employees, their
qualifications and the way they approach customers.
The company’s employees are responsible for
operations such as searching for customers, price
offers, contacting clients, conclusion of contracts,
coordination of cargo transportation, document
control, invoicing and payment control. Proper
execution of these operations ensures the quality of
services provided by the container line agent. The
learning organisation concept, situational
management theory and total quality management
theory are applicable to the management of the
personnel activity process in the line.
In terms of management functions, planning is
more suitable for activities such as searching for
customers, price offers, conclusion of contracts and
invoicing; organising is more required when
searching for customers, contacting them and
concluding contracts; leading is more suitable for
activities such as contact with clients, conclusion of
contracts and payment control; control is more
required when contacting customers, coordinating
cargo transportation, invoicing and controlling
payment. A conceptual approach that theoretically
reveals the principles and possibilities of the
company’s activities in the container shipping line can
serve as the basis for future empirical research to
identify problems in its personnel activity
management.
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