Research Of Logistics Cooperation Between Port And Shipping Based On Vertical Alliance

With the development of economy and the improvement of science andtechnology, as the central link in the net of the transportation, the functions of the porthave been broadening, transforming form the traditional transport to multi-function ofthe business, services and industrial product. It is the significant indicators ofmeasuring the economic development of countries and regions. The position andeffort of the port on the development of the economy an external trade has beenbecoming more and more important due to the key status of the port, since Chinaaccessed to WTO in2001. The continuous growth of the external trade puts forwardto a higher requirement for the production capacity of the port, while it bringsprosperous cargos, making the port in the position of unprecedented opportunities andchallenges.As known to all, the shipping industry is always accompanied with high risk andinvestment, it has been experiencing brutal competition. With the decline of the LinerConference, shipping companies with absolute advantage disappeared in the shippingmarket, making it facing more competitive environment. Accompanied with thechanges in the macroeconomic situation of the international shipping market in theend of1990s, the traditional shipping model has been unable to meet the economicdevelopment needs of the shipping industry, and the international shipping market hasbeen being up against more and more competitions because of the fluctuations of thefrequent prices in the markets. In recent years, the surplus transport capacity causedanother challenge problem that shipping companies have to be in the competition ofsearching more cargos.So the logistics integration for the port and the shipping companies has beenbecoming a basic strategy for surviving and development in this increasinglycompetitive environment. The achievement of the alliances between the port and theshipping companies can take joint risk and share profits, it is benefit to improve the competitive power and provide customers with better quality of service. It can alsotake more market share to the alliance. As a link of the entire logistics supply chain,the alliance companies are in the relationship of depend mutuality, work-divides andbenefit-based sharing.This article fist reviews the basis theory of the logistical integration of the portand shipping companies, including the transaction cost theory, the vertical alliancetheory and the logistics integration theory. Second, it describes the current situationof the development and the competitive landscape of the port and the shippingcompanies. Also it includes the main form and the problems of the logisticalintegrations between the port and the shipping companies; meanwhile it draws on thesuccessful experience of domestic and international port and shipping logisticalintegrations. Next we establish a game theory model to analyze the vertical logisticalintegrations, taking the port of Qingdao as the example to verify the correctness ofthe model. We also use the contribution rate to the union to calculate the Shapleyvalue provides support to maintain alliance stability. Finally, based on the support ofvertical alliances theory and the validate analysis of the game model, we reach theconclusion that the logistical integrations between port and shipping companies arenecessary for both to maintain the superior position, it is also becoming an inevitabletrend in the future shipping development.