The terminalization of supply chains: reassessing the role of terminals in port/hinterland logistical relationships

Abstract

The paper discusses how logistics service providers are using terminals in their supply chains. It argues that an increasing ‘terminalization’ of supply chains is unfolding, whereby seaport and inland terminals are taking up a more active role in supply chains by increasingly confronting market players with operational considerations such as imposing berthing windows, dwell time charges, truck slots, all this to increase throughput, optimize terminal capacity and make the best use of available land. With the development of inland terminals, a new dimension is being added: logistics players are now making best use of the free time available in seaports terminals and inland terminals, thereby optimizing the terminal buffer function. As a result, transport terminals are achieving an additional level of integration within supply chains that goes beyond their conventional transshipment role. Given increasing levels of vertical integration in the market and an increasing pressure on port capacity, a further terminalization of supply chains is likely to occur, which will strengthen the active role of terminals in logistics.