• Journal of Korea Port Economic Association
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• v.40 no.2
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• pp.91-105
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• 2024

The purpose of this study is to measure profit efficiency in the domestic shipping industry and to examine the factors determining that efficiency. Empirical results indicate that the shipping industry's short-term profits heavily depend on physical input factors, specifically capital stock. Notably, a 1% increase in capital stock leads to a 0.84% increase in short-term profits. In terms of secondary determinants, effective management of financial indicators representing stability, profitability, and growth can reduce profit inefficiency. Additionally, larger scale correlates with higher profit efficiency, indicating the need for expansion of water transportation companies. Given the rapid increase in profit efficiency in the ocean-going shipping industry since 2020, tailored support and investment are necessary.