Innovation—Solution for Aging Supply of the Shipping Industry

Improve the efficiency of supply

The relative advantage of each transportation mode does not remain the same under different social and economic conditions. Seen from the supply, the constantly changing price of various elements will affect the service price of each mode of transportation, thereby affecting their relative competitive edge. Whereas seen from the demand, the demands for efficiency and flexibility of transportation are also different under different social and economic conditions, and the relative competitive edge of each transportation mode will also be affected.The technical and economic characteristics of shipping industry determine its advantage in the bulk cargo transportation and the transportation of the cargo for which efficiency is not an obvious demand.However, this ideology shall not be solidified.In order to meet the diversified logistics demands and to catch up with various supply chain solutions, the shipping industry shall spare no effort in improving efficiency and flexibility. Improving shipping speed will offset as far as possible the disadvantage of shipping industry in speed. The low oil price in the future and the gradual use of renewable energy can support the“speed-lifting” of shipping industry in terms of energy cost.

Improve the flexibility of supply

For supply flexibility, large ships are poison. In order to meet customers’ demand, the ship should be diversified rather than maximized in type. On the one hand, some special routes and cargoes require special ships andthese ships for specific need will possibly get better profit. On the other hand, if“no big cycles, only small hotspots” are the reality for the shipping industry in the future, how shipping companies will catch up with the“small hotspots”? Whether the constant change of the market hotspots will be adapted by the vessel’s modular splitting and joining? This requires disruptive innovation of shipbuilding technology.

Improve the integrity of supply

Shipping industry has been the desirable profession, the captain once had high social status, and the ideology of“uniqueness” of those engaged in shipping is hard to change. They often consider the other services on the supply chain as the ancillary of shipping industry. The extension of shipping companies to the supply chain is the reluctant choice and is the small adjustments based on the original mode, rather than the complete restart made with strong resolution. Concentration is the advantage, but also may be the fatal disadvantage under the rapidly changing environment. How enterprises concentrating on shipping will survive if one day the enterprises on the supply chain provide“door to door” service to customers, with shipping free of charge. Such enterprises may come from business companies, or the Internet platform which currently has the dominant status, or from the transformed and upgraded shipping companies. Without this ideology,shipping people will become marginalized soon since shipping industry will become less and less important,though it is still irreplaceable. Fortunately, more than 200 Chinese online shipping retailers are making explorations, in the future some of them will stand out to provide integrated service to customers.

Improve the soft value of supply

Shipping companies should make lots of efforts on the value-added services of transportation, thereby getting profits from the soft value of transportation. For instance, the cruise which enjoys good market prospects has changed from providing movement of passengers to providing onboard tourism and leisure service.Improving passengers’ experience onboard the cruise rather than providing their movement is the key. Chinese tourists have the demand to experience European and American culture on the European and American cruise, that is the reason why the cruise harbors are so popular in China. But there would be no way to go if we limit our prospects. Improving the soft value of supply requires the construction of deep connection with customers and the irreplaceable scenario, and there was no such ideological mode in the past transportation service.

Improve the cross-border synergy of supply

The cross-border development of shipping industry is an irresistible trend, activities such as company listing,company financing, company mergers and acquisitions go along with the development of companies. During this process, consultancy from shipping is needed.Exploration as to whether to have related person from various industries to take part in the consultancy field or to build a relatively loose and effective consultancy system to provide support to the expanding shipping companies needs to be done.