Anyone familiar with the shipping industry knows that this evaluation is not exaggerated. Shipping is an ancient industry, and its most notable features are large capital investment, low return on investment and high market risk. However, the profitability of COSCO bulk cargo transportation has increased geometrically without increasing state investment: it was only tens of millions of yuan in 2002 and jumped to 700 million yuan in 2003. Until last year, the company made a profit of 5 billion, with a per capita profit of 600,000. Nowadays, the market operation of COSCO bulk shipping directly affects the trend of the Baltic Freight Index (BDI), a barometer of the international dry bulk shipping market.
Why cosco bulk cargo transportation has entered the leading ranks of international dry bulk cargo shipping industry in just a few years? The answer is condensed into eight words: reform and innovation, intelligent management.
Indeed, like other state-owned enterprises, the disadvantages of the system and mechanism also plague COSCO to varying degrees. However, in COSCO bulk cargo transportation, President Sean has always advocated a concept: less complaints, more actions, and there is still a lot of room for innovation in the mechanism of state-owned enterprises. It is also under the guidance of this concept that COSCO bulk cargo transportation has made great achievements, and many indicators can even be said to have created a miracle-the rate of maintaining and increasing the value of state-owned assets is close to 300%. Many figures show that COSCO's body is healthy. Through the continuous innovation in management in recent years, we have made every effort to build market competitiveness and control, and cosco bulk transportation with light and long distance has embarked on the road of sustainable development.
Intelligent management: trinity business model
In 2004, COSCO bulk cargo transportation achieved an amazing leap.
Some people say that cosco's bulk shipping has hit a big luck, because the Baltic freight index reached 6000 points this year, setting a record. When the market is good, the enterprise benefits naturally look good, and this analysis is not unreasonable. However, in the same year, many enterprises in the international dry bulk shipping industry did not win profits in line with the market level. Therefore, the peers who are familiar with the international shipping industry know best that the breakthrough of cosco bulk cargo is not accidental, and cosco bulk cargo won, which is better than the strategic decision.
Cosco bulk cargo transportation is a large ocean shipping enterprise in China. Unreasonable ship structure, ship age structure and cost structure have seriously restricted the competitiveness of COSCO bulk cargo transportation in the international bulk cargo transportation market and its ability to resist market risks. Waiting for the state to invest in shipbuilding and buy a boat is obviously "far water is difficult to solve near thirst." What should I do? Faced with the country's high hopes for large enterprises to become bigger and stronger, COSCO bulk carriers began to change their concepts.
In 2002, when the shipping market was at a low ebb, Sean, the general manager, relied on years of experience, scientifically analyzed his own advantages and disadvantages, and decisively put forward the decision-making idea of changing the market positioning, starting with changing the role. The traditional identity of shipping companies is shipowners, and COSCO has boldly practiced bulk shipping. Under the guidance of the concept of "smart management", we will resolutely implement the strategy of "changing from owning ships to controlling ships", changing from a single shipowner's identity to a "trinity" market positioning, and playing three roles as shipowner, charterer and broker in the market at the same time. Taking "seizing market control" as the core goal to create benefits, although the enterprise owns more than 60 ships with 4 million deadweight tons, it has continuously rented ships for three years and actually controlled more than 200 ships with 6,543,800 deadweight tons. Cosco bulk cargo transportation has gradually embarked on the road of establishing its own characteristic business model in the exploration. Sean's farsighted strategic decision confirms the old saying that "opportunities often favor those who are prepared". In an industry full of variables and potential opportunities and risks at this moment, strategic vision is the basis for winning.
For shipping enterprises, ships are one of the strategic management resources of enterprises. In a sense, whoever controls the capacity controls the right to speak. However, everyone who does shipping knows that it is not easy to have the right to speak in the international market. The unreasonable transportation capacity structure of large shipping enterprises is a contradiction that cannot be solved in a short time by building a large number of ships and buying them. Cosco bulk cargo transportation has noticed this. They keep a close eye on the market, change the transportation capacity in combination with the changes in the demand of the cargo transportation market, and bring about the adjustment of the transportation capacity structure through the adjustment of the fleet structure, thus winning the initiative to seize fighters. After COSCO Group put forward the strategy of "from owning the ship to controlling the ship", the chartering operation of COSCO bulk cargo transportation entered a platform to show its talents.
At present, the daily operation of COSCO bulk shipping charters more than 100, and the deadweight tonnage exceeds100000 tons. At the same time, some ships with older ships and higher operating costs will be rented out to obtain stable operating income and achieve the purpose of "locking in income and avoiding risks". In addition, in view of the increasing domestic trade volume, some old ships have been put into coastal operations, and good economic benefits have been achieved through reasonable stowage and positioning. The flexible and diverse chartering operation of cosco bulk carriers not only enables enterprises to obtain comprehensive benefits, but also minimizes the business risks of enterprises. Now the ability to control the spacecraft is strong. Through the flexible operation of "ship-oriented, ship-cargo linkage", the cost of "taking the ship" is low in the trough and the profit of "taking the goods" is large in the peak. Through franchising, the business ability and space of enterprises have been broadened. At the same time, the chartering operation has also rationally adjusted the company's fleet structure and enhanced its ability to cope with the market.
The way of chartering to control the management resources of shipping enterprises has distinct characteristics: first, less capital investment, second, short trading time, and third, low exit barriers. The advantages of chartering to adjust the structure of transport capacity are also obvious. First, on the basis of stabilizing the single operation risk of owned ships, fully realizing the synergy effect is conducive to improving the rapid response ability of enterprises to market changes. Second, it can increase the space of fleet structure adjustment and help to amplify the brand effect of enterprises. Third, it can maintain the original financial leverage of enterprises and increase their cash flow. Fourth, it provides the possibility for enterprises to realize value.
As a shrewd broker, COSCO bulk cargo transportation adopts similar "futures" and "hedging" methods. It rents ships, obtains new capacity and transfers it at the same time, and seeks low rent while seeking high rent. While trying to control the ship, it also tries to control the goods, while buying and selling, while entering some markets and withdrawing. In this way, not only the comprehensive benefits of the enterprise are realized, but also the operational risks are reduced. Of all the company's profits in 2004, chartering alone earned 3 billion yuan.
Looking at the "business model" of cosco bulk shipping, there are three characteristics: first, uniqueness, that is, grasping the development trend of shipping market in advance on the basis of scientific analysis and judgment; The second is value, that is, to realize the transformation from ownership to control, optimize the fleet structure, stabilize business risks and obtain value; Third, the combination, that is, the effective combination of enterprise resource elements, reflects the comprehensive strength. With static braking, dancing lightly with the market.