Shipping line economic model was established to prove that other than the ship costs itself (including ship capital costs, operating costs, fuel costs, etc), the uncertainty of traffic volume between ports can cause the economies of scale in respect of ship size as well. Results show that under the homogeneity assumption among traffic volume between ports, the more ports of one shipping line are called, the risk of freight traffic source insufficiency will be more scattered, and the profit rate of shipping line will be higher. When the traffic volume between ports is inhomogeneity, the enormous differences in traffic volumes between ports, the steady freight traffic source of small ports, or the more fluctuating freight traffic source of large ports, and these three factors will counteract the ship economies of scale.
Key words
container ship /
economies of scale /
uncertainty of traffic volume /
ship enlargement
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