An Analysis On Economies Of Scale Of M Enterprise’s Triple-E Class Containerships

M enterprise’s Triple-E class containerships are the biggest containerships in the world right now. Triple-E stands for economies of scale, energy efficiency and environmentally improved. Economies of scale is the main reason that containerships keep upsizing. Base on this background, this thesis focuses on economies of scale of Triple-E class containerships in AE10service line.In the first part, this thesis introduces the current situation of M enterprise, Triple-E class containerships and Asia to European service line, and points out the current problems Triple-E class containerships now facing while pursuing economies of scale. The use of larger containerships implies that economies of ship size are enjoyed at sea and diseconomies of ship size are suffered in port, base on this viewpoint, the objective of this thesis is to develop a model for assessing the economies of larger containerships. The first part of this model develops a costing model to assessing the economies of Triple-E class containerships. Then by choosing the port efficiency evaluation index that effects economies of ship size,this thesis develops a DEA-CCR model to assessing the diseconomies of Triple-E class containerships in AE10service line. Finally, according to the result of port efficiency analysis, the thesis builds a new hub-to-spoke network in AE10service line, and makes a cost comparison of two networks.The conclusion shows that, comparing to other kinds of containerships M enterprise uses, Triple-E class containerships do has economies of scale at sea. Secondly, among all seventeen ports Triple-E class containerships passing by, there are eight ports relatively efficient. Thirdly, Triple-E class containerships can save cost by using the new hub-to-spoke network, hence achieving more efficiency in economies of scale.