The Cost Improvement Of Asia-Euro Line In C Company

Though the Import & export business, especially of the international container shipping business, recovers in recent years, the whole container shipping market is still over-capacity. Over-capacity led to intense competition in the shipping industry. It is known as that 90% of the shipping lines worldwide showed deficits in 2013.When the whole shipping business worn out environment, MSK stated they made a profit by 15 billion dollar. After studying operating conditions of major liners in shipping industry, all of the profitable lines established significant line cost advantages. Reducing the line operating cost is the way to increase the liners’ benefit.C company, who is the world leading shipping service provider, has advantage in vessel deployment and market share. Compared with the giant MSK, who controls the running costs at very low lever, C company’s advantage gradually weakened. By generally analyzing the capacity & cargo volume of the FAL1 service, which is the main service operated by C company in Asia-Euro services, four problems concerned the operating cost of FAL1 service were summarized as following, capacity exceeding, part of the port is not a valid port, cost control efforts is not enough, the speed is higher than the ideal speed.Combining the theoretical research of service cost and the problem facing cost in C company, to illustrate that reducing the service cost should be through four aspects as following.1) Upgrade the vessel type reasonably, promote the vessel scale effect; 2) Enhance the rate of loading through the slot exchange and joint venture; 3) Optimize Main lines and Branch lines, improve the efficiency of port charges; 4) Reduce the speed to make to fuel cost down.Finally, according to the cost effort of improvement measures proved the practicability & availability of cost improvement methods, here came to the conclusion,First of all, there are 3 x 18000 teus vessels will be assigned in the Asia-Euro services. Compared with former vessels, vessel upgraded will reduce the line cost,Second, through alliances between company C and company S, to company C swap Xiamen slots on FAL1 with company S’ Singapore spaces, but does not increase the lifting load factor port of call, the ship can be resolved after the upgrade impact of the decline caused by the loading rate;In sixteen port routed in the Asia-Euro service, DEBRV & CNCWN are considered as invalid ports, by canceling calling these two ports, cargos would be transshipped via others ports.In the case not affecting the schedule, speed reduction, fuel economy raise, carbon emissions reduction could be achieved by optimizing the calling ports. It is feasibility of save two days by canceling 2 ports and reduce the general speed at a rate of about 3% base on the current speed 18 knots. The schedule will not be jeopardized.Due to the uncontrollable market, the intensified competition & service homogenization, shipping lines now are focusing on the cost control. To maximize the cost-effective, shipping lines are trying to find suitable ways and methods of cost control.So the paper has important significance for cost optimization of the global container liner, C company, cost saving of Asia to Euro, reducing carbon emissions, cost reduction effect is obvious...