ABSTRACT

Huang, P. and Yao, C., 2018. Diversification business performance evaluation of shipping industry in China. In: Liu, Z.L. and Mi, C. (eds.), Advances in Sustainable Port and Ocean Engineering. Journal of Coastal Research, Special Issue No. 83, pp. 802–806. Coconut Creek (Florida), ISSN 0749-0208.

International trade is the economic key of a nation, and shipping is an inevitable factor in international trade that shipping industry presents a critical role in international trade. The diversification development of shipping companies is related to the success of a shipping company, which connects shipping service for one-stop service to reveal the importance of shipping diversification. Moreover, global shipping market is closely related to global economy. Under the globalization of international trade, the correlation between China economy and global economy is worth discussion. For this reason, it is necessary to discuss the diversification business performance of shipping industry in China.

DEA is applied in this study to evaluate diversification business performance of shipping industry in China. With the calculation of Modified Delphi Method, inputs/outputs which could measure diversification business performance of shipping industry in China are selected. The efficiency evaluation results, through DEA, show that 1 DMU presents strong business efficiency, 4 DMUs are marginal inefficient, with the business efficiency in 0.9–1, and 5 DMUs are obvious inefficient, with the diversification business efficiency lower than 0.9. From Slack Variable Analysis, the excessive shipping companies in China and the improvement direction for short inputs are realized. Finally, suggestions, according to the results, are proposed, expecting that a shipping business could spread the risk of single industry operation through proper diversification and improve the operation performance.

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