Analysis Of The Impact Of Crude Oil Price Fluctuation On Liner Transportation Fuel Charges

In the cost composition of liner transportation,the proportion of fuel charge to ship cost is nearly one-third,so the fluctuation of international crude oil price will directly affect the cost of container liner companies.In the same time,the fuel surcharges is focus between shippers and Liner companies,the direct reason and the key point of the fuel surcharge is the fuel cost.The said paper tries to guide Liner companies to analysis the fuel cost,to control the marine cost,to make transportation cost,to operate good cooperation,which is full of the practical and important value.Based on the analysis of the cost structure of container liner transportation,the paper established the econometric model between the fuel charge and the crude oil price in the liner transportation cost;and then input the cost and fuel price data of the container company on the China-Australia route to establish the function relation between the crude oil price and the liner transportation cost.Based on previous applicability test,The F test and T test of the model indicate that the model constructed is reasonable and can be used as a theoretical basis for the fuel surcharge of the shipping company.The conclusion is that the function relationship between crude oil price and liner fuel cost is a geometric relationship,which means a fluctuation of $ 1 in crude oil prices will result in a1.8% change in fuel costs for COSCO Shipping Lines on the specific route.After analysis of crude oil price fluctuations,the paper investigate the route on how to control the fuel cost through fuel oil fluctuations,like forward contract.In a conclusion,the said paper focus on the core issue of fuel cost and analyse the impact on the cost.And how to reduce the fluctuation of crude oil price to influence the fuel charges.In the end,the paper forecast the future research,including creating model between time and cost,and practical research on the oil price fluctuation.