A Study Of Iron Ore Logistics Solution For Sinosteel Shipping And Forwarding Company

Iron ore is one of the most important raw materials for steel production. Because of China's lack of iron ore resources and the poor exploitation conditions, using imported iron ore to satisfy domestic steel production is a must. The main iron ore exporting nations are Brazil and Australia, which are far away from China. This transportation involves three distant shipping areas of oceans, coastlines and inland rivers, and other uncertain factors such as lines, transshipment approaches and vessel types. The steel plants alongside the Yangtze River have kept big import amount of iron ore annually. To cut down the transportation cost by unique advantages of the Yangtze River is absolutely beneficial. This thesis introduces the basic situation of import iron ore logistics of steel plants alongside the Yangtze River, points out several causes of its high transportation costs at the present. The thesis uses the SWOT to analyze Sinosteel Shipping and Forwarding Company's strengths and weaknesses, and the opportunities and threats. And finally it puts forward corresponding countermeasures lowering costs.The thesis analyzes the composition of the transportation cost and the modes of transportation, in order to research the development and threat environment faced by China's iron ore shipping company nowadays. The transportation involves three distinct shipping areas of oceans, coastlines and inland rivers, and other uncertain factors such as lines, transshipment approaches and vessel types. The ultimate goal of logistics system optimization is minimization of transportation cost.The thesis puts forward five innovative suggestions. First is to reduce iron ore ocean transportation costs; second is to optimize domestic transportation means; third is to build strategic alliances; forth is to reduce iron ore transportation cost by network and logistics techniques; fifth is to integrate logistics functions and provide one-stop supply chain service. The suggestions raised in the thesis are operable and could have important applications and practical values for domestic logistics companies.