By Li Zhenfu

Opportunities For Shipping Enterprises In New Market Environment

By Li Zhenfu

It is estimated that the volume of seaborne trade in 2016 may reach 11.1 billion tons, with an increase of 2.5% compared with that in 2015. But this does not mean that the shipping market is recovering after hitting the bottom. So, where are the new opportunities for the development of shipping companies? Firstly, the development opportunities brought by the “Belt and Road” strategy. Secondly, the opportunities of industry reform brought by the “New Normal”. Thirdly, the development opportunities brought by the free trade area. In addition, there are market environment opportunities derived from the international shipping union. What’s more, there are also strategic opportunities brought by the rapid development of the internet and information technology.

What are the strategies of survival and development for shipping companies? First of all, reasonable use of the good administrative service environment. In recent years, the State Council, the Ministry of Transport and other government management and service departments have been actively adjusting the policy direction so as to create a good administrative service environment for the recovery and development of the shipping industry.

Secondly, expand the scope of business to achieve diversification. On the basis of traditional shipping and logistics industry, the shipping enterprises can extend the industry chain and expand the scope of profit by extending the traditional industries such as shipbuilding, ship repairing and container manufacturing, etc. In addition, they can also expand ship trade and fuel trade, such as providing services for trading, warehousing, transportation and agency. Some shipping companies with strong capital support can also extend to shipping fnance or insurance and in this way achieve a combination ofmulti-enterprise development strategy.

Thirdly, to integrate resources to promote intensive operation. Faced with ferce market competition, merger or combination between enterprises is more and more common. It is wise to make powerful combination, exploit complementary advantages and share resources among enterprises in response to the market environment.

Fourthly, to establish the low-carbon or green shipping concept. Shipping enterprises should continue to invest in the development and promotion of green energy-saving technologies and to minimize energy consumption and environmental damage by using alternative energy and renewable energy sources. At the same time, the concept of green operation is also reflected in the practice of continuous optimization of the size of the feet and it is applicable to expand market share and enhance market competitiveness in a scientific and rational operation mode through the optimization of ship and operation.

Finally, to broaden the way to enhance risk prevention capabilities. Shipping enterprises should implement a comprehensive risk management strategy, namely the establishment of dynamic risk management mechanism, the improvement of the comprehensive risk management system and the development of comprehensive risk response countermeasures. It should be specifically implemented by collection and analysis of the international and domestic macro-economic environment, information resource extension and thereby form the risk assessment report. The practical risk prevention measures should be constantly adjusted according to the constant change of the objective environment, and the prevention measures and operation strategy should be determined according to the demand and supply.