India To China's Iron Ore Market And Ship Selection

With the rapid and continuous development of China national economy, Chinese import demand for iron ore remains a stable growth. India, due to its geographic superiority, is becoming an important iron ore export nation for China, and furthermore, the mutual demand on trade between the two countries also attracts great attentions from more and more shipping companies.The paper, beginning with the status quo of the Sino-lndian iron ore trade, combines the condition of ports and requirement of transportation development to discuss and investigate the demand trend and optimum ship size for Sino-lndian iron ore transportation market. Through simple theory research, the paper is hoping to provide reference to the practical operation for the shipping companies.The paper firstly analyzes the status quo of China's iron ore shipping market, describes the storage and distribution of the world's iron ore, esp. the export situation of Indian and import situation of China. There follows the detailed analysis of China and India's capacity of main iron ore discharging and loading ports to provide reference for the calculation of the economic index and choice of ship size. Bases on this, systematic analysis will be done concerning the Sino-lndian iron ore transportation market—trade status quo, trade expectation, market features and its influential factors. Besides, by adopting the method of BP network, the reasonable expectance analysis for Sino-lndian iron ore trade market can also come to the conclusion that Sino-lndian iron ore trade is a stably increasing market and thus, obvious foundation is laid on the investment in iron ore transportation fleets in a long term. In the end, researches are conducted to analyze the strategic development for shipping companies' optimized profits by establishing mathematic models concerning their choice of investment in different ships. The paper also proposes a design principle for the economic assessment index system for Sino-lndian iron ore ship sizes, on which basis, assessment model is also set up for the ship size for Indian iron ore transportation to China by adopting factor analysis. With the help of SPSS statistic software, comprehensive analysis is given for the ship size for Indian iron ore transportation to China and ship size of DW80000 is appraised as the optimized ship size through all the index assessment among DW50000,DW60000, DW70000 and DW80000.