Cosco Group's Dry Bulk Fleet Management System Changes

The rapid growth in the globalization of the world economy and trade volume impels the shipping industry to greater expansion. The fleet category is also divided more and more specifically. But no matter how it is classified and changed, the dry bulk carrier continues to play a non-substitutable role in the ocean transportation and tends to operate on a super-scale basis.As one of the important portions in the world fleet, COSCO bulk carrier certainly will follow this big trend. The operational strategy and operational mechanism will restructure and reform accordingly. Facing the challenge from all aspects, one shipping company should base its development strategy on the Contingency Theory, adjusting and improving thereafter in order to adapt to the changing environment. It also should set up the strategic management concept which meets the market requirement in order to possibly create greater value.The operational mechanism of COSCO bulk carrier has experienced lots of reform; some were successful ones while some were lessons. By revealing the common characteristics among the successful cases in the shipping industry and summarizing and analyzing the development in COSCO dry bulk carrier, the essay tries to testify the possibility and necessity of establishing the new operational strategy and further to testify the reform direction of operational model of COSCO dry bulk carrier.Based on a series of theories and the concept of"one body, two aspects, three centralization", the essay introduces the fundamental framework and thought of bulk carrier's system reform, creatively brings forward the notion of setting up an"operation center"in the transition period which grasps the core elements in the reform of bulk carrier's system. Meantime, considering the fact within the bulk carrier of COSCO group, the essay also designs a feasible organization structure and mechanism model, creatively produces the idea of retaining two subsidiaries, i.e. COSCO HK Shipping Co. Ltd. and Shenzhen Ocean Shipping Co. Ltd., to take both the domestic and overseas advantages, which is another innovation in the enterprise system.