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Studies on Problems Caused by Distribution of Larger Vessels in World Shipping Market

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2018, v.16 no.10, pp.31-38
https://doi.org/https://doi.org/10.15722/jds.16.10.201810.31
Kim, Jin-Hwan
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Abstract

Purpose - The purpose of this paper is to seek some alternative to overcome difficult shipping situations for overcapacity pursuing economy of scale, which is widely spread in world shipping. Research design, data, and methodology - The research method to be adopted is first to review evolution of larger ships in terms of theoretical overview, and shipping market is examined, and it is studied some problems and solutions in relation to larger ship as field research aspects. Results - Supply and demand of shipping market is flexible and unpredictable nature of market. Sometime fierce competition has spread out the market, and shipowner may deploy mega ship in terms of economy of scale, etc., to overcome the difficult market situations. Both carrier and shipper have their own positions in this matter concerned. However, it causes some problems in the market including port matters, etc. Therefore, it is asked to solve this problems of larger ship employed in the markets, throughout shipping alliances, etc. Conclusions - Over tonnage done by larger ship has caused some problems in the shipping markets, forming monopolistic market by small number of larger shipping companies, destroying oligopolistic nature of shipping business, therefore, the answer is strategic alliance to collaborate each other.

keywords
Over tonnage, Mega ship, Larger Ship, Rates, Shipping, Alliance

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The Journal of Distribution Science