Browse > Article
http://dx.doi.org/10.5394/KINPR.2011.35.9.765

A Study on Economic Operation for Liner-Fleet by Fluctuation of Fuel Oil Price - Focusing on the Case of 'H' Shipping Company -  

Lee, Soo-Dong (Hyundai Merchant Marine)
Chang, Myung-Hee (Division of Shipping Management, Korea Maritime University)
Publication Information
Journal of Navigation and Port Research / v.35, no.9, 2011 , pp. 765-776 More about this Journal
Abstract
For container shipping company, fuel oil prise is a considerable expense. Since 2008, fuel oil prises have risen dramatically. An increasing fuel oil price in container shipping, in the short term, is only partially compensated through surcharges and may affect earnings negatively. This study discusses the impact of an increasing fuel oil price and capital costs for vessels on the Asia-Europe trade of 'H' Shipping Company. According to the result of 'H' carrier's operation in 2008, there were no cost differences between 8 and 9 vessels operations in case of fuel oil price with USD 169/tons while adopting USD 31,818 as a fixed cost. We can expect that the fuel oil price will not go lower than USD 200/Ton on the basis of current high oil price phenomenon. When the fuel oil price is over USD 200/ton, 9 vessel operation is more economic than 8 vessel operation even if the fixed cost is over USD 35,000.
Keywords
Fuel Oil Price; Capital Cost for Vessels; Economic Analysis; Liner-Fleet; High Oil Price;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 Gilman, S.(1999), "The Size Economics and Network Efficiency of Large Containerships," International Journal of Maritime Economics, Vol. 2I, No. 1, pp. 1-16.
2 Baird, A. J(2001), A New Economic Evaluation of the Hub-port versus Multi-port Strategy, IAME Annual Conference.
3 Clarkson Research Services Limited 2008-2011.
4 Cullinane, K. and Khanna, M.(1999), "Economies of Scale in Large Containerships : Optimal Size and Geographical Implications," Journal of Transport Economies and Policy, Vol. 33, Issue. 2, pp. 185-208.
5 Jeffery, D.(1998), Bigger Vessels and Port Constraints, Terminal Operation Conference & Exhibition(TOC), Dubai, October.
6 Kim, T. W. ,Han, Y. N., Nam, K. C. and Kwak, G. S.(2004), "Drawing the Optimal Type of Ships Through the Total Operation Cost Analysis of Containers for Each Route," Korean Institute of Navigation and Port Research Fall Academic Paper, 28th book, session2, pp .245-251.
7 Kim, T. W.(2005), Optimal Containership Size by Way of Total Shipping Cost Analysis, Graduate School of Korea Maritime University.
8 Korea Maritime Institute (2008), Marine statistics,Monthly Maritime.
9 Notteboom, T. E and Vernimmen, B(2009), "The Effect of High Fuel Cost on Liner Service Configuration in Container Shipping," Journal of Transport Geography, Vol. 17, pp.325-337.   DOI   ScienceOn
10 Song, Y. S.(2005), A Study on the Strategy for Mega-hub Port Development, Ph.D. Thesis, Graduate School of Korea Maritime University.
11 Tozer, D. and Penfold, A.(2002), "Ultra-Large Container Ships : Designing to the Limit of Current and Projected Terminal Infrastructure Capabilities", Lloyd's Register Technical Association Paper, No. 5, Session 2011-2002.
12 Nam, K. C., Song, Y. S. and Kim, T. W.(2006), "Total Cost Analysis by Calling Port Reduction of Mega Containership-The Case of Domestic Shipping Company -", Journal of Korean Navigation and Port Research, Vol. 30, No. 1, pp. 53-60.   과학기술학회마을   DOI   ScienceOn
13 Korea Maritime Institute(2008), Effect on Vessel Fuel Oil Price Increase on Korea's Shipping Industry, Korea Maritime Institute.
14 McLellan, R. G.(1997), "Bigger Vessels: How Big is Too Big", MARIT.POL.MGMT., 1997, Vol. 24, No. 2, pp.193-211.   DOI   ScienceOn