Economies Of Scale Of Container Liner Shipping Industry

In recent years, the trend of container shipping maximization, alliance and annexation of shipping enterprises, emerges in shipping market, which, as the change on this kind of strategy, has a deep and extensive impact on shipping market. A lot of economic scholars have carried on the discussion and annotated to these two kinds of phenomena independently from the container shipping and the shipping enterprises, and mostly from the aspect of the commentary on the market. I think the trend of shipping maximization, alliance and annexation of shipping enterprises, deeply lies in the scale economical efficiency of the container liner transport service. The purpose of this text is to analyze its economical efficiency of scale in the view of this container liner transportation industry, utilizing the theory of industrial economics.Based on economics of scale theoretically, industry attribute, cost characteristic and industry characteristic, were analyzed in this text. Economics of scale of the container liner transportation service was discussed from two respects, i.e. economics of scale of shipping and of container liner transportation enterprise.While analyzing the economics of scale of shipping, from the cost structure of the container liner industry, every cost saving effects of the large-scale container shipping were analyzed. As a result, thrift of the cost, namely the economics of scale, is the basic motive force of the container ship maximization. Meanwhile, in this unavoidable trend of shipping maximization, still there are a lot of restricted factors in the maximization of the container shipping, including fully loaded shipping, the financial support, and some relevant expenses. As a conclusion, the trend of shipping maximization has already been necessary, while this trend should be progressive and appropriate in order to make the container shipping and port condition coordinated with the financial cost harmoniously.In respect of the economics of scale in the transport enterprise of container liner, two kinds of realization ways were discussed especially, i.e. the shippingalliance and merging, which are two kinds of cooperative forms adopted extensively in the shipping market at present. Analyzed each characteristic, the Curnoy model was utilized to analyze oligarch's behavior from making independent policy to the economic alliance. Then rooting from model of Starker Bogg, economics reason was educed from alliance to merge.In a conclusion, shipping alliance will have further development, while annexation of shipping enterprise will become the mainstream in the transportation enterprise of container liner's combination.