Analysis Of Cost Control Strategies Of Nep Tune Orient Liner

After entering 21 st century,Southeastern Asian countries upgraded the ocean transportation into a national strategy to satisfy the growing export and import international trade.To utilize this trend,China presented national strategy to strengthen shipping industry in 2014,known as “one belt,one road”.Upgrading shipping industry carries its mission to revitalize country.With those concentrations from national government,shipping enterprises enters into the period with mass opportunities.Shipping industry is closely coupled with economic cycles.But in the circumstances that America faces slow recovery and European economy stands still,shipping enterprises prevailing stated financial loss in annual reports.Overcapacity,regional shortage and poor allocation lead to lowering ocean freight.Through history of developed countries,to grow shipping industry is critical to grow economy.And the long-lasting shipping enterprises must control operational costs well.In this paper,strategies of Neptune Orient Lines(NOL)have been analyzed through macro environment.And based on cost structure analysis,it states the weakness and problems of cost control in NOL.By this,it demonstrates that NOL is in the period of industry upgrading and overcapacity.Per the annual financial report,NOL presents 4 strategies to control cost,optimizing balance sheet.It includes function restructure,asset upgrading and reassignment,strategic alliances and information system upgrading.To analyze the effectiveness of those measures,this paper establishes coefficient between cost control strategies and annual financial report from 2013 to 2015.Lastly based on those 4 strategies,this paper concludes them into a cost control model for shipping enterprises in a post-financial crisis economy.It's also suits for Chinese shipping enterprises to develop competiveness to promote national “one belt,one road” strategy.