Fleet Mix Decision

Y. H. Venus Lun (), Kee-hung Lai (), T. C. Edwin Cheng () and Dong Yang ()
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Y. H. Venus Lun: Logistics and Supply Chain MultiTech R&D Centre
Kee-hung Lai: The Hong Kong Polytechnic University
T. C. Edwin Cheng: The Hong Kong Polytechnic University
Dong Yang: The Hong Kong Polytechnic University

Chapter Chapter 7 in Shipping and Logistics Management, 2023, pp 99-110 from Springer

Abstract: Abstract Carrying capacity is a critical resource in container shipping. While it is beneficial for carriers to deploy mega ships to achieve cost-efficiency, a balance between ship size and the scope of service is required when they determine their fleet mixes. This chapter provides empirical evidence on the suggestion that the carrying capacity of the shipping firm positively affects the firm’s performance. As the fleet mix is concerned with the number of ships and the size of ships, this chapter also examines the impact of the number of ships and average ship size on firm performance. In comparing the magnitudes of the effects, the number of ships has a stronger impact on firm performance than ship size. In addition, we present the SCOPE framework, which consists of the dimensions of service frequency, customer value, optimal vessel size, ports of call, and extensive market coverage, as a useful reference for shipping managers to determine their fleet mixes for providing their shipping services.

Date: 2023
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DOI: 10.1007/978-3-031-26090-2_7

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