Research On Ship Management Strategy For Small And Medium Shipping Enterprises Based On The Life Cycle

With the development of economic globalization, international trade and communication become rapidly enhanced. In the meantime, the current situation provides an opportunity for the rapid development of shipping market and also a new challenge for small and medium shipping enterprises.Global economic integration makes world shipping market highly correlated with world economy. At the same time, the world shipping market is placed at the end of world economy, In terms of Bullwhip Effect, the delivery ratio between world economy and world shipping economy is 1:10. In other words,1% reduction in the world economic growth will result in 10% slowdown of world shipping market’s development. Therefore, the shipping industry is enormously impacted by the world economic fluctuation.Since financial crisis broke out in the second half of 2008, the indicative symbol in shipping market quotation of Baltic Dry Index (BDI) sharply decreased from 11193 points in May to 891 points in early November. At present, financial crisis brings a series of influences on international trade and shipping industry. Even worse, a large number of small and medium shipping enterprises face enormous difficulty and economic loss. In addition, the influencing aspects of shipping industry development, shipbuilding and shipping business are not overlooked by the price fluctuation of steel, fuel and other raw materials. A lot of large shipping enterprises lose several billion RMB in fuel price fluctuation. Meanwhile, they have to face some problems on enterprises’development.In current economic situation, shipping enterprises, especially small and medium shipping enterprises, do not merely concentrate on how to cope with the change of external economic environment and enhance internal management of enterprises. In particular, research on life cycle management strategy of small and medium shipping enterprises will promote management level of those enterprises and provide some theoretical significance and practical value.This dissertation combines system engineering theory and life cycle theory with the situation of small and medium shipping enterprises to obtain management strategies for small and medium shipping enterprises as follows:1. By applying system engineering life cycle theory, SWOT analysis theory and methods, this dissertation presents a SWOT chart, based on the development and situation of small and medium shipping enterprises. The total life cycle management strategy of small and medium shipping enterprises is obtained, which is a scientific decision-making system.2. The total life cycle time theory is applied to analyzing the components of ship life cycle and cost of life cycle. Moreover, under the principle of minimum cost, the management strategy for shipping business is set up. According to the definitions, ship life cycle includes shipping investment, usage and retirement stages. Total life cycle cost of shipping aims to build up management strategy for shipping business period based on the minimum operational cost. Meanwhile, it is constituted by shipping investment, shipping business cost (Labor costs, fuel costs, spare parts and materials costs) and ship scrapping(Residual values) or change costs.3. An implementation model of ship investment decision-making and management is established based on the theories mentioned above by applying the real option theory and fuzzy comprehensive evaluation theory. A flight number decision model is created by an optimized method. Furthermore, a management and decision-making model of spare parts and fuel inventory is also built according to the optimum and minimum cost principle.4. A management and decision-making model for shipping appraisal is established based on the comprehensive evaluation method.