The Choice Of Pricing Mode Of Seaborne Coal For S Electric Power Company

The financial crisis in 2008 has shocked the world economy and trade,the international dry bulk shipping market fluctuated remarkably,the domestic coastal coal transportation has also experienced more substantial fluctuations.The freight rate of domestic coastal coal fell below the long-term coal transportation agreement price signed by some of the power companies and shipping companies in 2009,which brings great challenge for the power companies to control coal transportation cost and avert risk of freight rate volatility.Although the world economy and trade has been warmer,the future changes in the shipping market are still not very clear.This paper aims to predict the future development of the shipping market,and proposed the pricing mode of seaborne coal for S Electric Power Company.The shipping cost is an important factor that influences the selection of pricing mode for S Electric Power and shipping company,besides,in order to take the initiative in the choice of pricing,it is necessary for S Electric Power Company to grasp the shipping company's transportation costs.Therefore,this article first carries on the computation to the shipping company's transportation cost.Then,the development tendency of the bulk shipping market is analyzed and the expected payoff functions of various game strategies are calculated based on the incomplete information dynamic game,and do analysis of the different game strategies based on the expected payoff functions of S Electric Power and shipping company,the sum of the expected payoff functions of both parties respectively.Finally,based on the prediction of shipping market development in 2017,this paper obtains the game results,and gives the coal pricing modes of seaborne coal for East China and South China routes of S Electric Power Company.The results show that the probability of prosperous in shipping market in 2017 is low,if the S Power and shipping company to do their strategic choices based on their expected payoff functions,the paper proposes that S Power and shipping companies signs a fixed long association price;If the strategic choice is based on the sum of the expected payoff functions of the two parties,S Power can enter into any of the three long association prices with the shipping company.