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Title: Scale diseconomies and efficiencies of liner shipping
Authors: Yip, TL 
Lun, V 
Lau, YY
Issue Date: Jan-2011
Source: In Liu, J.J. et al. 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 (pp. 265-272). Hong Kong : C.Y. Tung International Centre for Maritime Studies
Abstract: In the context of liner shipping, carrying capacity can be seen as a key resource to strive for better firm performance. The liner shipping market nowadays has entered a phase in which liner shipping companies (LSCs) reap economies of scale. The concept of economies of scale has led the industry to grow by enlarging its capacity and firms allocate more ships to offer shipping services in the worldwide market. However, the results of enlarged capacity may be uncertain. By examining empirical data (from 1997 to 2008), this paper investigates the relationship between capacity and firm performance in the liner shipping industry and attempts to use an S-curve to describe their relationship. The findings suggest that the S-curve is robust. Furthermore, this study attempts to provide theoretical basis for shipping lines to determine the optimal carrying capacity.
Keywords: Liner shipping
Diseconomies of scale
Publisher: C.Y. Tung International Centre for Maritime Studies, Dept. of Logistics and Maritime Studies, Hong Kong Polytechnic University
ISBN: 978-962-367-716-5
Rights: Copyright © 2011, C. Y. Tung International Centre for Maritime Studies, Department of Logistics and Maritime Studies, the Hong Kong Polytechnic University, All Rights reserved
Appears in Collections:Conference Paper

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