The Operation Analysis To The Passenger-Container Line Between China And Korea

China and South Korea are the neighbors across the Yellow Sea, the shipping market between China and South Korea became blooming due to the bilateral economy and trade relations have developed rapidly since the diplomatic relationship was founded in 1992. Total seven Sino-Korea joint-venture ferry companies were founded successively in the 10 years from 1990 to 2000. Despite the twice hits of air line setting up between China and Korea in 1995 and Korea finance crisis in 1997, most of them have made good achievement, and the share of container transport volumes held by ferry companies seemed to be rising among all the China-Korea lines. However, the future is not optimistical, the ferry companies will face a severe market situations influenced by the five factors: China will enter the WTO; the Korea peninsular tends to reconciliation and reunion; the railway will reconnect South Korea and North Korea; the competitions from full container liner services and the more and more air planes.The result of profit analysis to the Qingdao-Inchon Line shows that the main incomes of ferry companies are from cargo transportation other than from passenger transportation. Because of higher price of new building , higher speed, higher bunker charge, the ferry companies can not compete with the container liner companies in the ocean freight field, and the threat from full container vessel would be virtual with the start of construction of Inchon container terminal. Some enterprises and local government in China have not realized the risk clearly , however, they required to found new ferry lines between China and Korea. If the applications are approved, the supply of transportation would be surplus, the shipping companies would compete with lower price, profit drops.Facing of the severe competition, the ferry companies should strengthen management, develop logistics and e-business to improve the services to customers and working efficiencies; utilize person with ability; multi-invest to disperse operational risk;develop touring business to increase passenger; exert the industrial committee influences, protect self interests; found new line , seize the opportunity; renew ship, adjust ship schedule, keep the advantage of fast, punctual,frequent. Only if take the above actions, do the ferry companies keep in the indefectible position in the future competing shipping market.