The container shipping industry is including in four main segment: 1. container shipping, 2. roll-on, roll- off, 3. Industrial or bulk shipping for commodities, 4. Tanker shipping for natural gas, oil and chemicals. There are many significant factors that affect the container shipping in industry.
First are the costs, fixed costs and the bunker costs, Container shipping industry need to consider about the high cost, especially the fixed cost and the fuel cost, fixed cost is so high due to the asset-intensive and vessel expenses, in the same time, fuel cost could be 20%- 40% of cash operating cost.
Second is customers, how to contain …show more content…
As an unexpected decline in 1990, the Meli Marine move to the David Tian Era, when David Tian became the CEO of Meli Marine, he immediately began reshaping the company. First step he move is sold off older vessels and purchase the smaller vessels, this will create the flexibility in Meli’s cost structure. Moreover, Tian change the company style from feeder to liner, this change can make Meli worked directly with manufactures and trades. Furthermore, Tian prioritized a narrower set of customers and commodities, such as Meli pursued exporters of foodstuffs and other intermediate foods. The liner services had the benefit of localized route economics and fetched batter. To fill capacity more effectively, the company get share at each port it …show more content…
Compare Meli Marine to its top competitors: Evergreen Marine, Wan Hai Lines, and Yang Ming Marine. How does their performance compare?
When we discuss the comparison between Meli Marine with other top competitors, the best way we can use is the SWOT analysis.
Strengths: After Tian reform the company structure, the Meli Marine become more competitive, and more energy, in the same time, the Meli foused on the narrow set of products and customers, this mean they can get the first enter advantage and leading this aspect in intra-Asia. Additionally, Meli has a large volume of customer base and bring in considerable revenue.
Weaknesses: because Meli not as large as other four competitors, therefor, those four companies have a large size of vessels. Furthermore, the Meli only service in the intra- Asia market and the top competitors are working globally, this means Meli is difficult to expand its