System Dynamics and Theory of Chaos in Freight Rate Forming in Shipping
Abstract
This paper deals with the application of System dynamics and Chaos theory in shipping using the example of freight rate forming. The development of new technologies, changes in structure and conditions, information accessibility, etc. are only some of the factors that intensify changes in freight rate forming in shipping. Therefore, shipping environment is becoming increasingly complex and dynamic. System dynamics seems to be a tool very suited for modelling of strategic and operational behaviour in shipping business. Due to the complex behaviour of these systems, chaos theory can also help in modelling of processes in shipping. The basic feature of chaotic systems is fine sensitivity in conditions at the beginning, when small change in input value may cause great changes in output values. By applying its concepts to the business process, as well as in freight rate forming in shipping, it prepares the business systems for quick response to the changes in the environment. KEY WORDS: chaos theory, shipping, freight rate, system dynamics
Published
2012-03-02
How to Cite
1.
Jurčević M, Mitrović F, Nadrljanski M. System Dynamics and Theory of Chaos in Freight Rate Forming in Shipping. Promet [Internet]. 2012Mar.2 [cited 2024Apr.18];22(6):433-8. Available from: https://traffic.fpz.hr/index.php/PROMTT/article/view/208
Issue
Section
Articles
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
