The Research On The Operation And Development Of Shipping Management Company

The severe competition of modern shipping industry make the shipowner recognized the importance of reducing cost and enhancing management profitability. Meanwhile, with the improvement of open register countries and development of shipping industry in developing countries, the competition became more severe, and thus boost the reform in every field of shipping industry. The ship management company, which also called third party ship management company, emerged in 1970s, and gained momentum in 1980s, it has became a common trend for the shipowner to put their ship under the management of independent ship management company, this means the independence of management department in shipping industry and their change of operating strategy.After the china's entry into WTO, the shipping industry has been great effected, and also the WTO entry bring forth some influences on the relevant sector connected with shipping industry. The ship management company must take consideration of their own operation and developing countermeasure under this case, so that they can survive in the future market.This paper first examined the definition of ship management company, historical background and the main factors affecting it's development. Then pointed out the great influence on shipping and shipping management bring by china's WTO entry and in the perspective of economy analyzed the relationship between it's scale and profitability. Finally, this paper put forward the operating and development strategy of ship management company in accordance with the definition in this article.