Scale Economies Effect Of Container Ship Based On Cost Model

With the rapid global economic growth, there are19000TEU container vessels in2014since the first container vessel came into use in1956. The container vessels are becoming large-scale with the increase of freight volume in the past60years directly motivated by the scale economies effect. However, how to achieve maximum economic benefits and realize scale economy by making a full use of ULCS (ultra-large container ship) and even VLCS still remains extensive concern of shipping industry. Under the above background, the paper studies the scale economies effect from three perspectives.First of all, theoretical knowledge is the base of the research. The paper divided the theoretical knowledge into two parts; one is the introduction to scope economic theory which aims to introduce its connotation and characteristics, the second part is the general introduction to container-shipping in which the writer not only introduces the process of upsizing, reasons, development status and trends and the influences but also summaries the influential factors to the scale economic effect and analyzes the structural features of the cost to form a foundation to the quantitative analysis.Secondly, the quantitative analysis is the core of the paper. Based on the current situation and the future development of the trend of larger-sized vessels, the paper makes the quantitative analysis from the cost. Taking the cost of ships at sea and the port in consideration, the paper focuses on the costs of closely related to fleet scale and builds relevant model by new data based on the predecessors’research results and formulas. The writer also analyzes the application of different types with different lanes and get the relevant conclusion.Finally, the paper summaries the essences of strategy and conclusion with the reality of our country and puts forward advice on the domestic development. It analyzes the current situation of container transportation in the perspective of ports, market and collecting or distributing system and further concludes the development strategy. At the end of the paper, the writer puts forward some problems which need to be discussed more.