In this study, it proves that the economies of scale on shipping cycle with empirical study. It is subjected to discover the each container index that can explain market conditions based on sailing data in the North America West Cost and Europe.
It implements various research about the effect of the container vessel upsizing and conducted study on the each fleet 's action. It was proved that container vessel upsizing effect to Economies of scale, and HR index has high explanatory power between HR index and CCFI index. In the whole service lane, Economies of scale has different effect for each shipping cycle. And HR index has more affect than CCFI index.
According to the service lane, the result has different that HR index has more affect in the north America West coast lane, but CCFI index has more affect in the Europe lane. That was caused by each lane' s characteristic. North America West Coast lane' s vessel usually calling North East Asia. But Europe lane' s vessel calling China' s all main ports, so that make high impact to CCFI index effects. The North America West Coast lane has little different of effect for HR index. We expect that North America West Coast lane is the main lane of H · shipping company. So the cargo are steadily maintained. Especially in Europe lane, CCFI index is affted by shipping cycle. In boom period, CCFI index has effect of Economies of scale. But in dead season, the effect is different. Economies of scale, and there are no correlation.
The result of this study that container ship's size has correlation with Economies of Scale. But that has little different with shipping cycle that North America West Coast lane has not correlation with Shipping cycle. But in Europe lane has different result at dead season. And also we have to acknowledge the shipping index has different effect for each service lane. And shipping cycle should be separated with HR index and CCFI index.
In the North America West Coast market, always have to positive mind for entering large size vessel. In Europe lane, the shipping cycle should be decided by CCFI index. And we have to positive mind for entering large size vessel at boom period, but dead season' s result different. We have to down sizing the vessel and reduce speed for bunker cost saving.
This study describe the Economies of scale by each service lane and shipping index. But there are breacking point due to limitation that service lane are only 2, North America West Coast and Europe lane and the period only 3 years, 2009~2011. And also we can not find the reason of different shipping index affect to each service lane and the correlation of HR index and CCFI index. We expect that only calling ports different with North America West Coast and Europe lane, the empirical study not yet reach. In order to overcome the breakpoint, we have to expand the data set that lane to North America East Coast, South America, Australia, Intra Asia and period to the miracle boom period at the early of 2000.