An Empirical Analysis for Container Ship Investment

Understanding capacity investment behavior can benefit both private business operation and public policy development in the container shipping industry. This study investigates how global container shipping companies with different sizes decide to expand their fleets in a competitive market, using both theoretical and empirical approaches. In the theoretical part, important factors in firms’ capacity investment are identified for both operational needs and strategic market competition. In the empirical analysis, all the identified factors were tested using the observed data on ship investment for existing shipping firms. The results show that market demand, rather than the market price, are the main factors in capacity investment. While the investment of small firms is more sensitive to demand change, larger firms are more sensitive to the change in market share. Firms’ investment will increase with the competitor’s capacity investment in a booming market, but not when it is in recession. The time-charter index and newbuilding price are not important for shipping capacity investment.

• Record URL:
  http://www.icms.polyu.edu.hk/Proceedings/Proceedings%20of%20IFSPA%202010.pdf
• 
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9789623677165
• Corporate Authors:

  Hong Kong Polytechnic University

  Department of Logistics and Maritime Studies
  11 Yuk Choi Road, Hung Hom
  Kowloon, Hong Kong  China 

  Southwest Jiaotong University

  No. 111, 1st North Section, Erhuan Road
  Chengdu, Sichuan  China  610031
• Authors:
  • Luo, Meifeng
  • Fan, Lixian
• Conference:
  • International Forum on Shipping, Ports and Airports (IFSPA) 2010 - Integrated Transportation Logistics: From Low Cost to High Responsibility
  • Location: Chengdu Sichuan, China
  • Date: 2010-10-15 to 2010-10-18
• Publication Date: 2011-1

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 165-178
• Monograph Title: Proceedings of the International Forum on Shipping, Ports and Airports (IFSPA) 2010 - Integrated Transportation Logistics: From Low Cost to High Responsibility, 15 - 18 October 2010, Chengdu, Sichuan, China

Subject/Index Terms

• TRT Terms: Containerships; Demand; Investments; Markets
• Uncontrolled Terms: Capacity
• Subject Areas: Economics; Marine Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 01341241
• Record Type: Publication
• ISBN: 9789623677165
• Files: TRIS
• Created Date: May 30 2011 6:50AM