||Under the trend of ultra large container vessel, liner carriers tend to order large container ship for operation, in order to achieve economies of scale. However, this trend led to excess supply in shipping market, result in the inbalance of supply and demand. In this situation, there are not sufficient cargo volume to gain benefits of the economies of scale. The main purpose of this research is to discuss how can liner carriers deal with the huge operating pressure comes after the trend of ultra large container vessels. What strategies to adopt in order to cope with the impact comes after this trend of enlargement in size of container vessel.|
This research analyzes the enlargement in size of container vessel through literature review and secondary qualitative study. Futhermore, the research of strategy alliances and M&A (merge and acquisition) between liner carriers are presented by case studies. Then put forward conclusions and suggestions, which can provide as a reference for liner carriers in developing future operational strategies.
The conclusions show as below:
1. Under the trend of ultra large container vessel, the weak demand of container shipping led to the lack of cargo, result in large cantainer vessel could not be full load, unable to achieve economies of scale. To gain sufficient cargoes, liner carrier can adopt strategies such as alliances and M&A, expand the scale of operation by cooperate with complementary liner carriers.
2. The composition of strategy alliances is not just to compete about market shares, but to consider how to generate synergy by alliances. To enhance rate of loading and gain the benefits of the economies of scale.
3. One of the suggestions proposed in this research: when liner carriers choosing the M&A’s companies, first consider the complementary of geographic operating area, enter new market by merging and acquiring to expand the scale of operation, prevent from losing existing customers.