Strategic Analysis of Taiwan Liner Shipping Companies Using the Sustainable Growth Rate Model and Financial Ratios

• Main Authors: Chiu, Ching-Wen, 邱靖雯
• Other Authors: Ting, Shih Chan
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/n4865r

碩士 === 國立臺灣海洋大學 === 運輸科學系 === 107 === In the recent years, the trend of container transportation market has been tense, with freight rates remaining volatile and struggling to rise. Overcapacity leads to low freight rates and low returns. Furthermore, most of the liner shipping companies ordered extra-large size container ships to reduce their operating cost by achieving economies of scale. However, this strategy may not work for each company and the careless, excessive capital investment may lead the poor companies to bankruptcy way. While the topic about liner shipping has been extensively investigated, only a few studies have been conducted relating to the sustainable growth rate. This research applies sustainable growth rate model to evaluate three major liner shipping companies in Taiwan: Evergreen Marine Corp., Yang Ming Marine Transport Corp., and Wan Hai Lines Ltd. In addition, the dissertation coordinates the growth rate with companies’ financial ratio and cost structure to analyze their development strategies. The research focuses on determining whether the model can be applied to the three companies and the results of the model. The findings indicate that the sustainable growth rate model is effective and applicable. The proposed approach contributes to the liner shipping industry in both academic and business operations, even strategy formulation as well.