An analysis of the cost of the world large scale container ships

• Main Authors: Hein-Peing Pu, 浦漢屏
• Other Authors: 孫金華
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/75194968704726110488

碩士 === 國立臺灣海洋大學 === 應用經濟研究所 === 95 === The international market for container ships has been booming since from 2003 due to the rapidly increasing raw material prices and the growth in the volume of world trade. This has created a record increase in demand for container ships since 1980. The increase in the demand for new ships from the shipping companies resulted in the big jump in the price of container ships as the shipyards do not have enough dock space. Increased shipbuilding prices in turn affect the shipping company’s profit soon or later. This study collects historical data on shipping volume by types of containers, the total production value of the shipbuilding industry, new ship orders and construction cost of container ships. We apply SWOP analysis and SCP theory to determine reasonable prices for the newly constructed container ships. Focusing on the supply structure of shipping companies and the shipyards, we try to determine what constitutes a reasonable price for a new ship which may not only please the shipping company but also meet the shipyard’s demand for profit in order to achieve balanced development and mutual benefits within the industry. Based on the SCP theory, we analyze this oligopoly market structure, the mode of competition and the pricing behavior of Taiwan’s container ship building industry. Finally, by reviewing the shipbuilding subsidy strategies of Japan, Korea, Mainland China, Europe and USA, we note that ship yards in Taiwan must lower cost and create new markets for future development.