Research On Optimize Decision-making And Risk Control Of Ship Lease Financing In Shipping Company

Maritime enterprises are capital-intensive, whether to build, buy or charter a ship, financially require huge capital investment. Compared with construction projects or high-tech industry, the ship financial leasing project has a longer payback period with higher risk and more aspects needed to be coordinated. Especially in today’s shipping market, with tariffs up and down, there are many uncontrollable factors. Once the strategic operations went wrong, maritime enterprises may be faced with huge losses or even led to bankruptcy. Therefore, how to optimize the ship financing decision-making to prevent and avoid the risk of ship financing projects is undoubtedly related to the survival of the enterprise, which is a top priority for maritime enterprises.Carrying out scientific decision-making and risk management and control are the core contents of the maritime enterprises’ship financing business. Only by adopting scientific decision-making, effectively identifying categories of risks and its causes, and assessing the impact of its occurrence, can risks be effectively managed. In China, financial leasing does not have a long history, let alone ship financial leasing. There is also a lack of concerning theories and technologies combined with actual situation in China, especially that ship financial leasing project risk evaluation system is not perfect, researches on controlling measures need to be strengthened. It is in this context, this paper attempted to study in-depth and systematically on maritime enterprises’ship leasing financing theory, technology, practical application, and risk assessment. The study will help promote China’s maritime enterprises to strengthen the effectiveness of scientific decision-making and risk management, and make financial leasing project truly become an important way for the financing of maritime enterprises, thereby contributing to the healthy and fast development of maritime enterprise.This paper mainly studied the optimization decision problem on ship leasing financing. Through defining the concept of ship leasing financing scientifically, this paper deeply analyzed the causes and characteristics of ship leasing financing project risks from two aspects——the systematic risks and the unsystematic risks. Based on the ship leasing financing optimization decision theory, a full set of maritime enterprises’ ship leasing financing optimization decision framework was proposed, and a model of it was constructed. Then from the angle of Game Theory, the paper discussed the strategies about charter decisions. On the basis of the factors influencing the risks of ship leasing financing, put forward a scientific and objective evaluation index system. Then using modern nonlinear mathematical method, evaluated the risks of maritime enterprises’ship leasing financing, which would provide decision basis for ship leasing financing.The main conclusions of this paper are as follows:(1)As an important way of financing for domestic maritime enterprises, ship financial leasing has its unique advantages. However, with huge amount of investment, long leasing period and the uncertainty of various external environments, ship financial leasing project will have a higher risk. According to the control degree of the risk factors in ship financial leasing project, this paper defined systematic risk and non-systematic risk of ship financial leasing project. The systematic risks included the risk of shipping market, the risk of macroeconomic policy and the risk of macroeconomic environment. The non-systematic risks included the risk of corporate governance, the risk of management, the credit risk of the company, the risk of company’s financial ability and the risk of project.(2) The process of maritime enterprises to obtain the target ship’s right of use is als o a process of risk decision. The decision system consists of six sub-decision problems, these decisions are progressive, and influence the shipping enterprise risk-benefit situati on jointly. In this session, strategic action of maritime enterprises is essential.(3) Based on studies on risk of ship financial leasing of maritime enterprises, this paper established a risk assessment indicators system for ship financial leasing projects. The system has eight standard layer indicators, which mainly indicates the project’s system risk and non-system risk. There are twenty five indexes that affect the standard layer.(4) The results indicated that project risks, financial risks and enterprise credit risks weighted the top three among all the first level indicators, which meant that the three indicators were very important in the risk index system, especially in the risk management of maritime enterprises.