THE LOGISTICS INSTITUTE

- ASIA PACIFIC A partnership between the National University of Singapore and Georgia Institute of Technology for research and education in global logistics and operations

The Asia Pacific Sea Cargo System

Research Paper No: TLI-AP/01/02

Team members: National University of Singapore Assoc. Prof. Roland Yap Hock Chuan (Group Coordinator) Asst. Prof. Chew Ek Peng Asst. Prof. Lee Loo Hay Ms. Puvaneswari Manikam Georgia Institute of Technology Asst. Prof. Anton Kleywegt Assoc. Prof. Paul Griffin

The Logistics Institute - Asia Pacific National University of Singapore 10 Kent Ridge Crescent, Singapore 119260 Tel: (65) 874 8984 F a x: ( 6 5 ) 7 7 5 3 3 9 1 W ebsite: www.eng.nus.edu.sg/tliap

Abstract This report gives an overview of sea cargo focusing on Singapore, interactions within Asia-Pacific and other regions. The focus of the report is to survey the industry, processes and important issues facing the sea cargo industry. We begin with an overview of the top 10 ports and major carriers. This is followed by a study of trade flows, volumes and trends with emphasis on container traffic in Singapore Port. A comparative study with Hong Kong Port and Port of Long Beach is also presented. Next is a survey of the major shipping lines and developments in the container shipping industry. This is followed by the processes involved with importing and exporting sea cargo with details of the process flow in Singapore for containers. We then give an overview of developments in sea cargo technologies focusing on the use of Information Technology by ports and carriers. Next, important current issues facing the shipping industry is discussed. Finally, we conclude with some potential research projects to address the challenges described in the previous section.

Table of Contents

1.

Page Introduction.. 1 1.1 A Definition of Sea Cargo......1 1.2 The Importance of Sea Cargo.... 1 1.2.1 The Importance of Sea Cargo to Singapore... 1 1.3 Major Sea Routes in Asia-Pacific...... 1 1.4 The Position of Asian Ports in Global Ranking. 2 1.5 Major Carriers3 1.6 Sea Cargo Volumes and Trends. ... 3 1.7 Some Remarks about Statistics.. 6 1.8 Organisation of Report... 6 References...7 Flow and Trade Volumes.... 8 2.1 Sea Cargo (Containerised) Flow and Trade Volumes by Region.... 8 2.2 World Port Sea Cargo (Containerised) Flow and Trade Volumes.... 9 2.2.1 Worlds Major Ports by Total Cargo Throughput (metric ton)..... 9 2.2.2 WorldsTop10 Container Ports by Container Throughput(TEU). 10 2.2.3 Some World Ports Comparison: Hong Kong Port, Port of Long Beach and Singapore Port.... 12 2.3 Global Sea Cargo Transhipment.... 15 2.4 Singapore Port Sea Cargo (Containerised) Flow and Trade Volumes.... 16 2.4.1 Singapore Port Yearly based Statistics...... 16 2.4.1.1 Total Container Throughput (1987-1999)...16 2.4.1.2 Total Container Throughput by Type (Loaded or Empty) (1990-1997)... 17 2.4.1.3 Total Cargo by Type (1987 - 1999)...... 18 2.4.1.4 Inward and Outward Containerised Cargo by Country (1989-1997)....... 21 2.4.2 Singapore Port Monthly based Statistics... 24 2.4.2.1 Total Container Throughput (Jan`95-Dec`97).... 24 2.4.2.2 Total Cargo by Type (Jan`95-Dec`97).... 26 2.4.2.3 Inward and Outward Containerised Cargo by Country (Jan`96-Dec`97).... 28 2.5 Singapore as a Global Marine Hub.... 32 References33

2.

3.

Major Sea Cargo Players.... 34 3.1 Introduction to Ocean Carriers... 34 3.2 Conference Lines and Non-Conference Lines... 34 3.3 Asian Carriers.... 34 3.4 Mergers and Acquisitions...... 35 3.5 Carrier Statistics..... 36 References...38 Sea Cargo Export and Import Processes.......39 4.1 Sea Cargo Export Process..39 4.2 Sea Cargo Import Process.. 42 References.. 44 Sea Cargo Technologies... 45 5.1 Importance of IT in Sea Cargo System...... 45 5.2 IT Systems in Ports.45 5.2.1 Port of Rotterdam... 46 5.2.1.1 Cargo Card.... 46 5.2.1.2 EDI-LAND....47 5.2.1.3 PROTECT..... 47 5.2.1.4 ELO... 47 5.2.1.5 BICS...... 47 5.2.1.6 RODOS. 47 5.2.1.7 MISTER.... 48 5.2.1.8 Port on the Internet....48 5.2.2 Hong Kong Port..... 48 5.2.3 Singapore Port.... 49 5.2.3.1 CITOS... 49 5.2.3.2 CICOS....... 50 5.2.3.3 Gate System...50 5.2.3.4 PortNet...51 5.2.3.5 TradeNet....52 5.2.3.6 BoxNet...52 5.2.3.7 CEDEX...52 5.2.3.8 EZShip...52 5.2.3.9 SlotMax..... 52 5.2.3.10 BoXchange... 53 5.2.3.11 GEMS....53 5.3 Use of IT in Shipping Lines....53 5.3.1 E-Booking...54 5.3.2 Cargo Tracking...54 5.3.3 Vessel Sailing Schedule.....55 5.3.4 Bill of Lading..... 55 5.3.5 Notices and Reports... 55 5.3.6 Tariff Rate Request.... 56 5.3.7 Finance... 56 5.3.8 Other Services.... 56 5.4 Online Information Services...57

4.

5.

5.5

5.6 5.7

5.4.1 Interbox.......57 5.4.2 Trade Compass...57 5.4.3 Other Online Information Services.58 Electronic Documentation Management 59 5.5.1 Bolero. 59 5.5.2 TradeCard...60 5.5.3 E-Transport60 Global Positioning System. 61 Electronic Container Seal...61 Reference........62

6.

Sea Cargo Issues... 63 6.1 Ocean Shipping Reform Act of 1998 (OSRA)...63 6.2 Container Imbalance on US Trade. 64 6.3 Shortage of Container Chassis in US Ports....65 6.4 Equipment Imbalance Surcharges (EIS)....66 6.5 Megaships..66 References......67 Proposed Research Projects....68 7.1 Contract Planning and Load Allocation for Ocean Carriers..68 7.2 Empty Container Allocation and Distribution Planning........68 References......69 Appendix 1-Profiles of the Top 10 World Ports. ...... i Appendix 2-Profiles of the Selected Major Carriers......v Appendix 3-Singapore Examples of Importation, Exportation and Transhipment Processes.ix Glossary..xxi References..xxvi

7.

1.

Introduction

Water is said to be the cheapest, safest and cleanest transportation mode and the ocean is the water highway to the world. The oceans occupy 70% of the earth and the Pacific Ocean occupies 50% of the worlds ocean surface. Ports in Asia-Pacific are gateways to domestic and international trade, connecting the region as well as intra-region to the world. Asias history has been shaped by its ports on the seacoasts and rivers. 1.1 A Definition of Sea Cargo

Cargo is merchandise conveyed on a ship other than mail or other property, carried under the terms of international postal convention or baggage [1]. Therefore sea cargo can be defined as anything travelling by sea other than mail, persons and personal baggage. 1.2 The Importance of Sea Cargo

There are more than 2,000 ports around the world. A ship loaded with one metric ton of goods sails farther and causes less air pollution on one gallon of fuel than an airplane with the same tonnage flies, or a truck drives, or a train travels [2]. Container shipping is much cheaper than airfreight. Present airfreight rates are about ten times or more the rates of sea cargo transportation. Compared to other modes of transportations, ships and barges are save and have the fewest accidental spills or collisions. The Review of Maritime Transport 2000 reported that the world container port traffic grew 6.7% within a year; from 154.6 million in 1997 to 165.0 million in 1998. Note that this figure depicts continued growth despite the financial crisis experienced in parts of the Far East and South East Asia. The Drewry Shipping Consultants also forecasted that some additional quay length of 100 to 200 km and 900 to 1,200 new quay cranes would be required to handle the increasing amount of container movements, especially in Western Europe, Far East and South East Asia by the year of 2005. 1.2.1 The Importance of Sea Cargo to Singapore One out of every 10 people in Singapore is said to be dependent in some way on Singapore Port. The PSA Corporation generated a net profit of S$838.4 million in 2000, an 11.7% increase from S$ 750.3 million in 1999 [4]. Singapore Port ranked second among the ports of the world in both terms of TEU and metric tons handled. Compared to the top 10 container ports in the world, Singapore Port has a dominant position with approximately 22.3% from the total container throughput handled. As an Asian transshipment hub, Singapore has built a large regional feeder trade to carry Intra-Regional cargo. 1.3 Major Sea Routes in Asia-Pacific

Many countries in Asia-Pacific have an export-dominated economy and are thus more dependent on the passage of goods across the seas than other parts of the world. In AsiaPacific there are basically two major sea routes of communication, one passing through the

South China Sea to the Indian Ocean and the Middle East; the other passing through the East China Sea and the Sea of Japan to the Pacific Ocean and the Pacific coast of the US and Canada. Four out of the seven worlds major sea routes (the Eurasia, North Pacific, South Pacific and the Cape of Good Hope routes) are connected to the Asia-Pacific. The remaining three are the North Atlantic, South Atlantic and the North American-South American routes. In terms of ship movement, the seas in Asia-Pacific are among the busiest in the world. 1.4 The Position of Asian Ports in Global Ranking

Table 1.1 depicts total throughput in metric tons of the top 10 worlds major ports in 1999. Table 1.2 shows the worlds major container ports (top 10) ranked by TEUs. Half of the top 10 ports in Table 1.2 are located in Asia. The remaining three ports are from Europe and two from North America. Although Port Kelang is 15th ranked and thus not in the table, it should be pointed out since its rate of growth is high, as much as 40.1% in 1999 and it may soon join the top 10. Singapore Port has captured second placing in both the tables. Profiles of the top 10 container ports (ranked based on TEU) are given in Appendix 1. Rank Port Total Throughput 1999 (1999) (in million metric tons) Port of Rotterdam, Netherlands 303.4 1 Singapore Port, Singapore 251.9 2 Shanghai Port, China 187.0 3 Hong Kong Port, Hong Kong* 168.8 4 Nagoya Port, Japan 133.2 5 Yokohama Port, Japan 117.8 6 Port of Antwerp, Belgium 115.7 7 Pusan Port, Korea 107.7 8 Marseilles Port, France 90.3 9 Port of Hamburg, Germany 81.0 10 Table 1.1: Total cargo throughput in metric tons of the worlds major ports (top 10)[5]
* Including rivertrade

Rank Port Container Throughput 1999 (1999) (in `000 TEU) Hong Kong Port, Hong Kong* 16,211 1 Singapore Port, Singapore 15,945 2 Kaohsiung Port, Taiwan 6,985 3 Pusan Port, Korea 6,440 4 Port of Rotterdam, Netherlands 6,343 5 Port of Long Beach, US 4,408 6 Shanghai Port, China 4,216 7 Port of Hamburg, Germany 3,738 8 Port of Antwerp, Belgium 3,614 9 Port of Los Angeles, US 3,510 10 Table 1.2: Container throughput in TEU of the worlds major container ports (top 10)[5]
* Including rivertrade

1.5

Major Carriers

Container shipping was introduced in Europe in the late 1960s. The construction of the first generation cargo vessel, which was capable of carrying 700 TEU at a speed of 20 knots, was the first step in the container vessel development. Todays mega container vessels, called the megaships have a cargo capacity of about 6,600 TEU and travel at speeds of 24 knots. Ocean carriers are the agents of sea transportation. They supply their services on a worldwide basis, offering a global transport solution to a global shipper with global shipping needs. Below are the top 10 container carriers ranked by total slot capacity at the beginning of 2000. The total slot capacity of 2,521,447 TEU at the beginning of 2000 represents an increase of 11% over the 1999 figure of 2,270,411 TEU. Profiles of these major carriers are given in Appendix 2. Slot capacity (TEU) 1 Maersk Sealand 244 599,601 2 Evergreen/Uniglory/LT 139 327,813 3 P&O Nedlloyd 114 277,582 4 Hanjin/DSR-Senator 83 258,025 5 MSC 122 233,751 6 Cosco 114 201,263 7 NOL/APL 70 191,284 8 NYK/TSK 67 154,344 9 CMA-CGM/ANL 61 138,956 10 CP Ships Group 68 138,828 Table 1.3: Top 20 container carriers ranked by total slot capacity at the beginning of 2000[6] 1.6 Sea Cargo Volumes and Trends Rank Carriers Number of vessels

In general, shipping fleet of a carrier include tankers, bulk carriers, general cargo ships, container ships and specialised vessels. Table 1.4 shows a summary of the world merchant fleet for 1996-1998. Figure 1.1 indicates the percentage share by different sectors of the world fleet for the year 1998. Growth (%) Tanker 146.4 147.2 0.5 Bulk 150.6 155.3 3.1 General cargo 86.2 86.3 0.1 Container 43.1 48.9 13.5 Other 81.6 84.4 3.4 Total 507.9 522.2 2.79 Table 1.4: World merchant fleet for 1996-1998[7] Sector 1996 1997 (million gross tons (mgt)) 1998 Growth % of fleet (%) 151.6 3.0 28 153.3 -1.3 29 87.3 1.2 16 53.4 9.2 10 88.8 5.2 17 534.4 2.34 100

World Merchant Fleet 1998

Other 17% Container 10% Tanker 28%

General cargo 16%

Bulk 29%

Figure 1.1: Percentage share of world merchant fleet1998 The world merchant fleet grew slower in 1998 than in 1997, but the percentage increase remained above 2%. We can see that the tanker and bulk cargo are the two dominant sectors constituting more than half of the total fleet. Of all the sectors, the containership is seen to expand at the fastest pace. This sector grew by 13.5% in 1997 and 9.2% in 1998. Table 1.5 gives the world container trade growth and world container output. The world container output rose 25% in 2000 to a record of 1.8 million. World Container Trade Growth World Container Output (%) (`000 TEU) 1996 7.0 1,285 1997 10.6 1,450 1998 5.0 1,475 1999 9.2 1,485 2000* 10.3 1,850 + 2001* 7.4 + 2002* 8.2 Table 1.5: World container trade growth and world container output [8][9]
*forecast figure for world container trade growth + data not available

Year

The worlds top 10 container ports produced container throughput of 60.23 million TEU in 1997, 65.38 million TEU in 1998 and 71.41 million TEU in 1999. It is remarkable that an improvement of 8.55% and 9.22% was still noted in 1998 and 1999 respectively, in spite of the economy turmoil in Asia. The improvement also portrays a rapid acceleration in world container port demand. World container trade by route in 1994 is presented in Table 1.6. There are three major routes, namely East-West, North-South and Intra-Regional. The flows in all three routes are not in balance. Traditionally, the East-West route dominated the world container trade. However, the fastest growing rate of Intra-Regional trade, which was mainly boosted by the increasing trade within Asia, has now outstripped the two other trades. The IntraRegional flow accounted to 12.5 million TEU in 1994.

East-West Trans-Pacific Trans-Atlantic Europe-Far East Europe-Mid East N.America-Mid East Far East-Mid East North-South Europe-L.America Europe-S.Asia Europe-Africa Europe-Australasia N.America-L.America N.America-S.Asia N.America-Africa N.America-Australasia Far East-L.America Far East-S.Asia Far East-Africa Far East-Australasia Intra-Regional

Eastbound 4,200 1,365 2,290 575 160 65 8,655 Southbound 625 200 575 250 1,150 90 60 180 500 200 275 400 4,505

Westbound 3,270 1,665 2,605 70 45 190 7,845 Northbound 525 275 375 150 850 160 40 95 225 225 150 475 3,545

(000 TEU) Total 7,470 3,030 4,895 645 205 255 16,500 Total 1,150 475 950 400 2,000 250 100 275 725 425 425 875 8,050 6,725 4,250 1,250 300 12,525

Asia Europe N.America Other Total Table 1.6: World container trade by route, 1994[10]

Among the Intra-Regional routes (Table 1.6), Asia has the most active container trade. Asian interests is also said to be controlling some 40% of the worlds ocean going tonnage. It has built robust network services from short moves between hub ports and neighbouring countries to long distance routes. The Intra-Asia container port market is booming as well with goods moving directly to meet customer demands. Of all the Intra-Asia regions, the East and South-East Asia economies have controlled the world container trade growth since the mid-1980s. Gustaaf de Monie of the Policy Research Corporation in Antwerp included South East Asia, besides Western exit of Mediterranean, the Caribbean and the West Coast of America as the potential mega-hubs. Generally there are three container trades on major Asian routes; Trans-Pacific (the most dominant trade route for Asia), Asia-Europe and Inter-Asia (Table 1.7). The three major routes experienced continuous growth from 21.1 million TEU in 1996 to 25.9 million TEU in 1999. The total trade is expected to increase by 7.4%, reaching 27.8 million TEU in 2000. Another significant trend in Table 1.7 is the drop in container trade in Inter-Asia route in the year 1998. The negative growth of 5.8% was a direct reflection of economic crisis in Asia. In 1999, the container trade in this route returned to continued growth.

(`000 TEU) Route Direction 1996 1997 1998 1999 2000* Eastbound 4,959 5,723 6,845 7,610 8,237 Trans-Pacific Westbound 4,333 4,463 3,839 4,016 4,368 Total 9,292 10,187 10,684 11,626 12,605 (% change) (8.8) (9.6) (4.9) (8.8) (8.4) Eastbound 2,565 2,798 3,342 3,533 3,860 Asia-Europe Westbound 2,008 2,187 2,026 2,544 2,713 Total 4,573 4,984 5,368 6,077 6,573 (% change) (9.5) (9.0) (7.7) (13.2) (8.4) Inter-Asia Total 7,228 7,767 7,343 8,150 8,590 (% change) (3.3) (7.9) (-5.8) (11.0) (5.4) 21,093 22,967 23,395 25,853 27,768 3 major routes total (7.0) (8.9) (1.9) (10.5) (7.4) (% change) [11] Table 1.7: Container trade on major Asian routes (loaded container only) 1996-2000
* estimates

Another significant trend in sea cargo industry is the increase in container imbalance. This is a direct reflection of the trade imbalance between Asia and Europe to US. As a result, ports around the world are estimated to have handled about 40 million TEU of non-revenue generating empty containers in 1999[11]. Refer to Section 6.2 for more information and statistics. 1.7 Some Remarks about Statistics

Much of the statistics and relevant data for this report are gleaned from various sources as stated in the reference at the end of every chapter and at the end of this report. In section 2.4, the data presented is mainly from Singapore Port Statistics and MPA (Maritime and Port Authority of Singapore) sources. In this report, we have slightly different time frames in various sections due to the availability of information. 1.8 Organisation of Report

The primary purpose of this report is to understand the present sea cargo process and the relevant issues, with an emphasis on the containerised cargo. This survey focuses on Singapore Port, interactions in the Asia-Pacific and the other regions. This report is organised as followed. Section 1 gives an introduction and overview of the sea cargo system. It also gives an overview of the top 10 ports and major carriers. Section 2 of this report reveals the flow and trade volume and the major sea cargo players within Asia-Pacific with emphasis on Singapore Port. General information and statistics on major ocean carriers are given in Section 3, while section 4 identifies the processes in sea cargo exportation and importation. Since Information Technology is becoming a critical component of the logistics of sea cargo, Section 5 focuses on this. We conclude with some important sea cargo issues and a preview of some proposed research projects.

References:
[1] [2]

Dictionary of Shipping International Business Trade Terms and Abbreviations http://www.aapa-ports.org [3] World Container Terminals; Global Growth and Private Profit, Drewry Shipping Consultants Ltd, April 1998 [4] http://thestar.com.my/news/story [5] http://www.portmanagement.com [6] Container Management, November/December 2000 [7] http://www.itis.org.tw/eng/rep0015.html [8] Lloyds List Maritime Asia, November 200 [9] Containerisation International, February 2001 [10] Niko Wijnolst and Frans Waals, Shipping Industry Structure, Delft University Press, 1999 [11] Ports and Habors, December 2000

2. 2.1

Flow and Trade Volumes Sea Cargo (Containerised) Flow and Trade Volumes by Region

Container development in the Asia-Pacific region is more dramatic compared to other regions in the world. Figure 2.1 shows the robust growth of Asia-Pacific in container traffic compared to the rest of the world. Recent trends show that about half of the worlds container traffic is handled at ports within this region.

World Container Traffic

100 90

World Container Traffic (million TEU)

80 70 60 50 40 30 20 10 0
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Asia-Pacific

Rest of the world

Year

Figure 2.1: Growth of world container traffic[1] Table 2.1 and Figure 2.2 indicate the container world traffic for different regions in 1996. Asia, notably Northern Asia is the pre-eminent region in the world container throughput. This region alone constituted about 44.3% of the total traffic. The regional member, China Port Region and South-East Asia is said to have substantial potential for further container penetration. Europe, with quarter of container traffic, holds the second place ahead of North America. Africa accounts to a relatively negligible proportion of 1.6% of the world container traffic in 1996. Region Regional share (%) North America 15.4 Central & South America 5.1 Europe 25.1 Africa 1.6 Middle East 6.3 Northern Asia 29.6 Southern Asia 14.7 Australia/ New Zealand 2.2 Table 2.1: Regional share of world traffic for containers in 1996[2]

Regional Share of World Traffic for Containers in 1996

2.2% 5.1% 6.3% 14.7%

1.6% 29.6%

Northern Asia Europe North America Southern Asia Middle East Central & South America Australia/ New Zealand

15.4%

Africa 25.1%

Figure 2.2: Regional share of world traffic for containers in 1996 2.2 World Port Sea Cargo (Containerised) Flow and Trade Volumes

Traditionally, the function of ports is simply the interface between land and sea transport. Now however, the world ports play a major role in overall performance of the global logistics chain. As such, the efficiency of ports is highly important. The worlds top 10 container ports can be ranked in two different ways; the top 10 container ports based on total throughput in metric tons and the top 10 container ports based on container throughput in TEU. 2.2.1 Worlds Major Ports by Total Cargo Throughput (metric ton) Table 1.1 (chapter 1) lists worlds major ports (top 10) according to the total throughput in million metric tons based on the 1999 ranking. Table 2.2 gives the total throughputs of these ports for four years (1996-1999). (million metric tons) Port 1996 1997 1998 1999 Port of Rotterdam, Netherlands 292.1 310.9 314.4 303.4 Singapore Port, Singapore 242.5 252.8 241.1 251.9 Shanghai Port, China 164.0 164.0 163.9 187.0 Hong Kong Port, Hong Kong* 157.3 169.2 167.2 168.8 Nagoya Port, Japan 118.3 120.1 133.9 133.2 Yokohama Port, Japan 102.4 114.5 115.2 117.8 Port of Antwerp, Belgium 106.5 111.9 119.8 115.7 Pusan Port, Korea 97.6 106.6 96.4 107.7 Marseilles Port, France 90.7 94.3 93.4 90.3 Port of Hamburg, Germany 71.1 76.7 75.8 81.0 Table 2.2: World major ports total throughput in million metric tons for 1996-1999[3]
* Including rivertrade

Total Cargo Throughput (metric tons) vs Year

350 Total Cargo Throughout (million matric tons) 300 250 200 150 100 50 0 1996 1997 Year 1998 1999
Port of Rotterdam Singapore Port Shanghai Port Hong Kong Port Nagoya Port Yokohama Port Port of Antwerp Pusan Port Marseilles Port Port of Hamburg

Figure 2.3: World major ports total cargo throughput in metric tons (top 10) for 1996-1999
Total Cargo Throughput (metric tons) vs Year
350 300 Total Cargo Throughout (million matric tons) 250 200 150 100 50 0 1996 1997 Year 1998 1999
Port of Rotterdam Singapore Port Shanghai Port Hong Kong Port Nagoya Port Yokohama Port of Antwerp Pusan Port Marseilles Port of Hamburg

Figure 2.4: World major ports total cargo throughput in metric tons (top 10) for 1996-1999 In terms of total throughput, Port of Rotterdam has captured the top position for all four years studied. Singapore Port follows in the second position. Nagoya, Pusan, Marseilles and Hamburg Port had retained its position of fifth, eight, ninth and tenth respectively for all years recorded. A close competition between Shanghai and Hong Kong Port for third rank and, Yokohama and Antwerp Port for sixth rank can be seen in Figure 2.4. 2.2.2 Worlds Top 10 Container Ports by Container Throughput (TEU)

Table 1.2 (chapter 1) lists worlds major container ports (top 10) according to container throughput in `000 TEU based on the 1999 ranking. Below are the ports container throughputs in `000 TEU (top 10) for the years 1996-1999.

10

(`000 TEU) Port 1996 1997 1998 1999 Hong Kong Port, Hong Kong* 13,280 14,386 14,852 16,211 Singapore Port, Singapore 12,950 14,136 15,137 15,945 Kaohsiung Port, Taiwan 5,063 5,693 6,271 6,985 Pusan Port, Korea 4,684 5,233 5,753 6,440 Port of Rotterdam, Netherlands 4,971 5,495 6,012 6,343 Port of Long Beach, USA 3,067 3,505 4,098 4,408 Shanghai Port, China 1,970 2,520 3,066 4,216 Port of Hamburg, Germany 3,054 3,337 3,547 3,738 Port of Antwerp, Belgium 2,654 2,969 3,266 3,614 Port of Los Angeles, USA 2,698 2,960 3,378 3,510 Table 2.3: World major ports container throughput in `000 TEU (top 10) for 1996-1999[3]
* Including rivertrade
Container Throughput (TEU) vs Year
18,000

Container Throughput (TEU)

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

Hong Kong Port Singapore Port Kaohsiung Port Pusan Port Port of Rotterdam Port of Long Beach Shanghai Port Port of Hamburg Port of Antwerp Port of Los Angeles

1996

1997 Year

1998

1999

Figure 2.5: World major ports container throughput in `000 TEU (top 10) for 1996-1999
Container Throughput (TEU) vs Year
18,000 16,000
Hong Kong Port Singapore Port Kaohsiung Port Pusan Port Port of Rotterdam Port of Long Beach Shanghai Port Port of Hamburg Port of Antwerp Port of Los Angeles

Container Throughput (`000 TEU)

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

1996 1997 Year 1998 1999

Figure 2.6: World major ports container throughput in `000 TEU (top 10) for 1996-1999

11

While Hong Kong Port may have only captured the fourth place in the total throughput in 1999, in terms of container throughput in TEU, it has taken the top and second top port in all four years studied. From Figure 2.5 and 2.6, it is also very apparent that Hong Kong Port and Singapore Port are by far the two leading container ports in the world. The two Asian container ports are way above all the other major ports in the world in container handling volumes, with the closest Kaoshiung Port handling less than 8 million TEU. Both ports compete closely for the top spot but Hong Kong Port has always been a little ahead of Singapore Port, except for in 1998. One explanation is that perhaps the regional crisis in 1998 had more effect on Hong Kong Port than Singapore Port. However, the historical and projected trends suggest further rise in future. We highlight Shanghai Port, which seems to be growing swiftly, as its growth was 37.5% in 1999. Due to its sudden growth, it moved to 7th placing in 1999, after being the last ranked port for the past three years. Kaoshiung Port, Pusan Port and Port of Rotterdam compete very closely since 1996, and in 1999 Kaoshiung Port captured the third placing, overtaking the other two. During the four years period, all the ports have experienced growth in container throughput. It is notable that some of the top 10 ranked ports by total throughput (metric ton), such the two Japanese ports (Nagoya and Yokohama) and Marseilles Port did not manage secure a place is the top 10 world container ports (in TEU) list. Similarly, ports Kaoshiung, Long Beach and Los Angeles, which appeared in Table 2.3 are not listed Table 2.2. as to as in

When comparing Table 2.2 with Table 2.3 we see that Rotterdam, which had the top place in total throughput by metric tons, is only ranked fifth in terms of container throughput in 1999. This is because most of the cargo handled in Rotterdam are bulk cargo, especially crude oil, rather than containerised cargo. For instance, in 1999 only 21% of the ports total cargo throughput was containerised cargo, whereas Singapore handled 54% of containerised cargo in the same time period. 2.2.3 Some World Ports Comparison: Hong Kong Port, Port of Long Beach and Singapore Port

We now compare three of the leading ports in the Asia-Pacific region. In 1999, Hong Kong Port was among the busiest port in the world. It is the leading container port for the Mainland of China and is a major hub port for intra-Asia trade. The port handled a total of 14.9 million TEU in 1998, followed by an increase of some 9.2% in the following year. Since 1995, the Port of Long Beach has been the busiest port in the United States. Ranked the sixth busiest in the world, the port handled 4.4 million TEU in 1999, an increase of 7.6% from the previous year. Combined, the Port of Long Beach and Los Angeles represent the third busiest container port complex in the world. Table 2.4 and 2.5 indicate the container throughput by type (empty or loaded) for a period of 24 months (Jan 1998-Dec 1999) for Hong Kong Port and the Port of Long Beach (please refer to Table 2.15 for Singapore Ports container throughput (Jan 1995-Dec 1997)). These two leading ports in Asia and North America are then compared with Singapore Port.

12

HONG KONG PORT (`000 TEU) Month Loaded Empty Total Jan`98 928 220 1,148 Feb`98 712 211 923 Mar`98 1,027 245 1,272 Apr`98 1,005 235 1,240 May`98 1,006 247 1,253 June`98 943 236 1,179 July`98 989 285 1,274 Aug`98 1,015 288 1,303 Sept`98 1,029 301 1,330 Oct`98 1,001 297 1,298 Nov`98 926 277 1,203 Dec`98 908 252 1,160 Jan`99 958 243 1,201 Feb`99 720 191 911 Mar`99 973 234 1,207 Apr`99 1,017 253 1,270 May`99 1,145 274 1,419 June`99 1,097 317 1,414 July`99 1,152 294 1,446 Aug`99 1,204 340 1,544 Sept`99 1,142 342 1,484 Oct`99 1,165 349 1,514 Nov`99 1,098 294 1,392 Dec`99 1,131 280 1,411 Table 2.4: Container throughput by type in Hong Kong Port (Jan`98-Dec`99)[4]

PORT OF LONG BEACH (`000 TEU) Month Loaded Empty Total Jan`98 217 71 288 Feb`98 209 67 276 Mar`98 256 77 333 Apr`98 260 77 337 May`98 248 84 332 June`98 266 89 355 July`98 280 99 379 Aug`98 273 100 373 Sept`98 272 100 372 Oct`98 258 90 348 Nov`98 277 91 368 Dec`98 254 83 337 Jan`99 247 72 319 Feb`99 252 72 324 Mar`99 261 87 348 Apr`99 259 81 340 May`99 293 101 394 June`99 273 101 374 July`99 262 85 347 Aug`99 295 104 399 Sept`99 301 101 402 Oct`99 289 108 397 Nov`99 301 97 398 Dec`99 272 93 365 Table 2.5: Container throughput by type in the Port of Long Beach (Jan`98-Dec`99) [5]

Figure 2.7, 2.8 and 2.9 depict the container throughput in Hong Kong, Long Beach Port and Singapore Port, respectively for different time period. Figure 2.8 will be reproduced in section 2.4.2.1. In 1999, Hong Kong Port container throughput was 3.7 times more than the Port of Long Beach. Observing all three graphs, a similar trend can be seen. All three ports had marked a dip in every February and got to its peak in August, September and October of every year. Port of Long Beach shows slightly more proportion of empty containers (average of 25% and fluctuates between 24% to 26% throughout), compared to the Hong Kong Port (average of 21% and fluctuates between 19% to 23% throughout). Singapore Port in the other hand is noted to have a smaller proportion (but still significant) of empty containers compared to the two other ports (average of 12% and fluctuates between 10% to 15% throughout). Generally the container throughput patterns for all three ports are quite similar. This is because they all serve the same region of Asia-Pacific.

13

Total Container Throughput (in `000 TEU)

Container Throughput (in`000 TEU) Container Throughput (in `000 TEU) 100 150 200 250 300 350 400 450 50 -

1,000

1,200

1,400

200

400

600

800

1,000

1,200

1,400

1,600

1,800

200

400

600

800

Jan `95

Jan`98 Feb`98 Mar`98 Apr`98 May`98 June`98 July`98 Aug`98 Sept`98 Oct`98 Nov`98
Month

Jan`98 Feb`98 Mar`98 Apr`98 May`98 June`98 July`98 Aug`98 Sept`98 Oct`98 Nov`98 Dec`98 Jan`99 Feb`99 Mar`99 Apr`99 May`99 June`99 July`99 Aug`99 Sept`99 Oct`99 Nov`99 Dec`99

Mar `95

May `95

July `95

Sep `95

Nov `95

Jan `96

Mar `96

May `96

Dec`98 Jan`99 Feb`99 Mar`99 Apr`99 May`99 June`99 July`99 Aug`99 Sept`99 Oct`99 Nov`99 Dec`99

Total Container Throughput vs Month

Container Throughput in Hongkong Port (by type) vs Month

Container Throughput in the Port of Long Beach (by type) vs Month

Month

Month

July `96

Sep `96

Nov `96

Jan `97

Mar `97

May `97

July `97

Figure 2.9: Container throughput by type in Singapore Port (Jan`95 Dec`97)

Empty Loaded Empty Loaded

Figure 2.7: Container throughput by type in Hong Kong Port (Jan`98 Dec`99)

Sep `97

Figure 2.8: Container throughput by type in Port of Long Beach (Jan`98 Dec`99)

Nov `97

Empty

Loaded

14

2.3

Global Sea Cargo Transshipment

Transshipment of containers impacts on ports by generating additional throughput at the point where the transshipment occurs. Thus it may require additional vessels to cover the moves. Transshipment further leads to new opportunities for all parties involved in container shipping. It is estimated that around one quarter of the global container port throughput is generated from transshipment. Region/Port Asia/Mid-East Singapore Hong Kong Kaohsiung Dubai Colombo Pusan Fujairah Kobe/Osaka Tokyo/Yokohama Khor Fakkan Northern Europe Rotterdam Hamburg Antwerp Bremerhaven Felixstowe Le Havre Mediterranean Algeciras Damietta Table Marsaxlokk Limassol Barcelona Piraeus La Spezia Other Kingston Durban Miami/Pt.Evergl Table 2.6: Selected transshipment ports[6] 0.44 0.72 0.87 75 30 25 1.00 0.53 0.38 0.27 0.54 0.52 0.82 90 90 90 90 33 30 12 4.54 2.72 2.20 1.50 1.75 0.87 35 25 25 25 15 15 10.40 11.10 5.20 1.88 0.95 3.50 0.72 3.29 4.11 0.48 75 25 40 50 80 20 80 15 10 80 1994 throughput (million TEU) Transshipment (%)

15

Table 2.6 shows selected transshipment ports in 1994. From the table, we can notice that most of the ports with high transshipment incidence are located on the East-West lanes. For instance, over 70% of the throughput volume of Singapore, Khor Fakkhan, Fujairah, Colombo, Algeciras, Damietta, Limassol and Marsaxlokk are generated from their transshipment traffic. Some recent statistics gives Singapore Port as handled some 70% of transshipment cargo in the first six months of 2000. We note that some Mediterranean ports depend almost exclusively on transshipments. As larger and faster ships, megaships, are introduced, the percentage of global transshipment will increase further. Asia, notably South East Asia is again promising a tremendous growth in the next five years and expected to remain as the leading transshipment region in the world. 2.4 Singapore Port Sea Cargo (Containerised) Flow and Trade Volumes

Singapore has become the centre for shipping in Asia-Pacific region, in particular for South East Asia. Singapore is said to have developed into a model port for modern shipping. Singapores role as a transshipment hub for the Asia trade seems unassailable, in line with the Asian countries which are now becoming increasingly inter-dependent, exchanging raw materials, components and finished goods. Although its main focus is container shipping, the port also can accommodate all types of vessels. We now look in depth at Singapore Port statistics on total container throughput, total cargo handled by type and inward and outward containerised cargo by country on yearly and monthly basis. The information is based on data published by Maritime and Port Authority of Singapore (MPA) and from Singapore Port Statistics. 2.4.1 Singapore Port Yearly based Statistics 2.4.1.1 Total Container Throughput (1987 - 1999) Total container throughput Annual growth (`000 TEU) (%) 1 1987 2,634.4 2 1988 3,375.1 28.12 3 1989 4,364.0 29.30 4 1990 5,223.5 19.70 5 1991 6,354.0 21.64 6 1992 7,555.8 18.91 7 1993 9,047.0 19.74 8 1994 10,400.3 14.76 9 1995 11,846.0 13.90 10 1996 12,944.5 9.27 11 1997 14,135.9 9.20 12 1998 15,135.6 7.07 13 1999 15,944.8 5.35 [7] Table 2.7: Total container throughput (1987-1999) No. Year

16

Total Container Throughput vs Year

18,000 Total Container Throughput (`000 TEU) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1 2 3 4 5 6 7 Year 8 9 10 11 12 13 y = 1,180x + 891

Figure 2.10: Total container throughput (1987-1999) The volume of container throughput in Singapore Port is observed to be increasing for the past 13 years. Figure 2.10 resembles an annual growth rate of 1,180,000 TEU. From the linear regression model (y = 1,180x + 891), total container throughput of 17,411,000 TEU for the year of 2000 can be forecasted. The correlation coefficient of the regression line is 0.997. From Table 2.7, we can notice that the percentage of annual growth is gradually becoming smaller since 1993. We can further observe this trend from the curve in Figure 2.10. 2.4.1.2 Total Container Throughput by Type (Loaded or Empty) (1990 - 1997) No Year Total container Annual Empty Annual Loaded Annual Proportion throughput growth container growth container growth by loaded (`000 TEU) (%) (`000 TEU) (%) (`000 TEU) (%) container(%) 1 1990 5,223.5 700.1 4,523.4 86.60 2 1991 6,354.0 21.64 857.2 22.44 5,496.8 21.52 86.51 3 1992 7,555.8 18.91 1,056.9 23.30 6,498.9 18.23 86.01 4 1993 9,047.0 19.74 1,280.9 21.19 7,766.1 19.50 85.84 5 1994 10,400.3 14.96 1,301.9 1.64 9,098.4 17.16 87.48 6 1995 11,846.0 13.90 1,353.3 3.95 10,492.7 15.32 88.58 7 1996 12,944.5 9.27 1,546.4 14.27 11,398.1 8.63 88.05 8 1997 14,135.7 9.20 1,774.8 14.77 12,360.9 8.45 87.44 Table 2.8: Total container throughput by type (loaded or empty), percentage of growth and proportion (1990-1997) [7]

17

Total Container Throughput vs Year

16,000 Total Container Throughput (in `000 TEU) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1990 1991 1992 1993 1994 Year 1995 1996 1997

Empty Loaded

Figure 2.11: Total container throughput by type (loaded or empty) (1990-1997)

Loaded Container Throughput vs Year Loaded Container Throughput (`000 TEU)

8.45%

Empty Container Throughput vs Year Empty Container Throughput (`000 TEU)

14.47%

12,000 10,000 8,000 6,000 4,000 1

y = 1162.9x + 3221.4
19.50% 21.52% 18.23%

15.32% 8.63% 17.16%

1700 1500 1300 1100 900 700 1

y = 141.42x + 597.56
21.19% 23.30% 1.65%

14.27%

3.95%

22.44%

4 Year

4 Year

Figure 2.12: Loaded and Empty container throughput (1990-1997) Total container throughput, both empty and loaded containers have been increasing for the past eight years. The loaded container usually occupies the major proportion of about 86%-89% of the total throughput. Overall, the percentage of loaded and empty containers has remained approximately constant with a ratio of 7:1. The loaded and the empty container throughput against time are plotted separately in Figure 2.12.

2.4.1.3 Total Cargo by Type (1987 - 1999) Cargo can be classified into either general cargo or bulk cargo. General cargo consists of containerised and conventional cargo, while bulk cargo refers to oil and other types of cargo. A breakdown of total cargo is presented in Table 2.9, Figure 2.13 and 2.14.

18

Total cargo Annual handled growth (%) 1987 129,458.4 38,419.4 13,438.9 1988 154,738.7 19.5 51,255.6 15,684.1 1989 174,297.8 12.6 65,190.2 18,245.5 1990 187,789.3 7.7 76,630.6 17,757.1 1991 206,428.9 9.9 90,680.6 17,503.3 1992 238,445.9 15.5 108,954.0 16,763.3 1993 273,723.1 14.8 127,074.6 15,568.4 1994 290,074.7 6.0 142,240.3 15,006.8 1995 305,484.0 5.3 154,500.1 15,244.8 1996 314,164.0 2.8 160,278.8 14,804.5 1997 327,506.7 4.2 170,140.1 15,418.6 1998 312,322.1 -4.6 160,317.9 12,650.4 1999 325,902.2 4.4 176,568.6 11,984.8 Table 2.9: Total cargo by type and annual growth (1987-1999) [7][8]

Year

General Cargo Containerised Conventional

(`000 tonnes) Bulk Cargo Oil Others 73,597.4 83,501.5 84,420.1 86,905.5 91,514.8 105,444.3 123,477.3 124,079.9 126,375.0 129,877.7 129,786.6 127,168.0 124,385.7 4,002.7 4,297.5 6,441.9 6,496.1 6,730.2 7,284.4 7,602.7 8,747.8 9,364.1 9,203.1 12,161.3 12,185.8 12,963.1

Total Cargo by Type vs Year

200,000 180,000 Total Cargo (in `000 tonnes) 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Containerised Oil Conventional Others

Year

Figure 2.13: Total cargo by type (1987-1999)

19

Total Cargo by Type vs Year

350,000 Total Cargo (in `000 Tons) 300,000 250,000 Others 200,000 150,000 100,000 50,000 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Year Conventional Oil Containerised

Figure 2.14: Total cargo by type (1987-1999) For the first eleven years, the growth rate of all cargo types has been positive. In 1998, there was a drop of 4.6% in the annual growth due to the regional crisis. However it rebounded to 4.4% in the following year. The steepest growth was in the year of 1992 and 1993 (Table 2.9). Singapore Port was at its busiest in 1997, where the port handled a volume of 327 million tonnes. Figure 2.14 shows that containerised cargo had increased at much faster rate than oil cargo. The following table indicates ranked proportion by all types of cargo handled in Singapore Port. Proportion of Proportion Proportion Proportion containerised cargo of oil cargo of conventional of other cargo (%) (%) cargo (%) (%) 1987 29.68 56.85 10.38 3.09 1988 33.12 53.96 10.14 2.78 1989 37.40 48.43 10.47 3.70 1990 40.81 46.28 9.46 3.46 1991 43.93 44.33 8.48 3.26 1992 45.69 44.22 7.03 3.05 1993 46.42 45.11 5.69 2.78 1994 49.04 42.78 5.17 3.02 1995 50.58 41.37 4.99 3.07 1996 51.02 41.34 4.71 2.93 1997 51.95 39.63 4.71 3.71 1998 51.33 40.72 4.05 3.90 1999 54.18 37.68 3.68 3.98 Table 2.10: Ranked proportion of all types of cargo handled in Singapore Port (1987-1999) From Table 2.10, it is obvious that the predominant cargo types handled in Singapore is containerised and oil cargo. While oil cargo had a larger percentage than containerised cargo from 1987 to 1991, in subsequent years, containerised cargo overtook oil cargo. This Year

20

is demonstrated by the statistics which gives an average proportion of 49.97% and 36.99% for oil and containerised cargo respectively from 1987 to 1991 and, 41.61% and 50.23% from 1992 till end of survey. The share of conventional cargo is also seen to be continuously decreasing throughout the study. Containerised cargo on the other hand has increased steadily over years. The other cargo percentage is reasonably constant (fluctuates between 2.78 to 3.98%). There was a negative growth in all types of cargo in 1998, except for the others categorised cargo due to the economic slowdown in Asia. Generally for the period of 1987-1999, containerised and oil cargo contributed the most to the statistics. 2.4.1.4 Inward and Outward Containerised Cargo by Country (1989-1997) Total containerised cargo in Singapore Port can be further divided into two: inward containerised and outward containerised cargo. Table 2.11 and 2.12 show the statistics, and Figure 2.15 and 2.16 are two different graphs plotted from inward and outward containerised cargo. Dotted lines in Figure 2.15 refer to outward cargo. Figure 2.16 is a stacked area graph. (`000 tonnes) Country Year South East North South West Europe America Asia East Asia Asia Asia 1989 10,872.7 8,558.7 1,793.8 746.2 5,551.0 2,389.7 1990 12,648.2 11,249.7 1,729.8 840.9 6,899.2 2,562.1 1991 15,130.0 12,376.9 2,425.9 1,126.0 7,435.7 3,024.7 1992 20,417.8 13,838.8 3,619.4 1,068.0 8,537.7 3,863.3 1993 24,275.0 15,979.9 4,055.7 1,452.0 11,318.7 3,674.7 1994 27,253.2 17,066.0 4,756.7 1,271.4 12,791.6 4,413.3 1995 30,271.4 17,207.9 5,286.5 1,351.1 13,532.0 5,660.0 1996 31,023.2 18,160.6 5,567.1 1,250.6 12,953.8 6,074.5 1997 32,946.4 19,122.4 6,139.1 1,473.2 11,170.4 5,334.3 Table 2.11: Inward containerised cargo by country (1989-1997) [7] Country Year South East North South West Europe America Asia East Asia Asia Asia 1989 9,925.3 7,574.0 2,282.7 1,878.4 5,923.5 3,382.9 1990 12,420.6 7,962.8 2,668.9 1,983.3 7,728.7 3,669.8 1991 13,751.8 9,558.1 3,035.1 3,086.9 8,585.6 4,068.5 1992 16,677.5 10,394.7 3,856.1 3,868.0 10,050.0 5,172.8 1993 19,783.5 12,257.8 4,884.9 4,106.1 11,219.6 5,267.3 1994 23,406.0 13,956.0 5,638.7 4,120.8 12,024.9 6,183.1 1995 26,655.3 14,924.2 5,578.8 4,130.8 12,436.5 6,537.4 1996 28,367.3 14,853.4 6,361.8 4,509.2 13,094.8 6,752.1 1997 28,518.0 15,826.6 7,489.6 4,485.3 15,192.2 7,131.5 Table 2.12: Outward containerised cargo by country (1989-1997) [7] Oceania Africa 1,156.4 1,098.4 2,021.7 2,712.9 2,629.6 2,885.1 3,139.4 3,305.9 4,165.2 382.2 454.3 639.3 711.9 875.0 973.5 1,473.8 1,441.9 1,213.3

(`000 tonnes) Oceania Africa 1,546.9 1,413.2 1,735.6 2,227.5 2,654.8 3,073.1 3,188.1 3,557.2 4,524.3 655.6 945.9 1,250.0 1,552.6 2,126.3 1,956.0 2,581.7 2,505.1 2,737.2

21

Inward/Outward Containerized Cargo(by country) vs Year

35,000

Inward/Outward Containerized Cargo (in `000 tonnes)

30,000

South East Asia

25,000

South East Asia* North East Asia North East Asia* Europe

20,000

Europe* South Asia South Asia*

15,000

America America* West Asia West Asia*

10,000

Ocenia Ocenia* Africa Africa*

5,000

0 1989

1990

1991

1992

1993 Year

1994

1995

1996

1997

Figure 2.15: Inward/Outward containerised cargo by country (1989-1997)

*Outward containerised cargo
Inward Containerized Cargo
100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1989

Outward Containerized Cargo

Contanerized Cargo (`000 tonnes)

Africa Ocenia West Asia America South Asia Europe North East Asia South East Asia

1990

1991

1992

1993

1994

1995

1996

1997

Figure 2.16: Inward/Outward containerised cargo by country (1989-1997)-stacked area

22

Figure 2.15 indicates a tremendous increase from South East Asia in inward and outward cargo into/from Singapore Port from 1992 to 1997. It is apparent that South East Asia, North East Asia and Europe are the three prominent regions dealing with Singapore Port. In 1997, inward cargo from these three regions constituted 40%, 23% and 8% while their outward cargo accounted to 33%, 18% and 9% respectively of total tonnes handled in Singapore Port. Europes inward contribution however, is seen as declining in the last two years of study. America and South Asia contributed much smaller portion, while Oceania, West Asia and Africa presented a negligible share. The total inward and outward cargo has increased by 2.6 and 2.5 times, respectively between 1989 and 1997. From Figure 2.16, it is noted that all regions had developed their containerised cargo gradually from 1989 to 1991, but a rapid growth in the inward volume is marked from 1991 to 1995 as shown by the steep gradient in the graph. Generally a similar pattern of growth is seen in both inward and outward containerised cargo by all regions in the period of nine years. Even the ranking by country according to total volume for both inward and outward containerised cargo was the same in the year 1997. We now examine the difference between the inward and outward of all regions involved. (`000 tonnes) Country Year South East North East South West Asia Europe America Oceania Africa Asia Asia Asia 1989 (947.4) (984.7) 488.9 1,132.2 372.5 993.2 390.5 273.4 1990 (227.6) (3,286.9) 939.1 1,142.4 829.5 1,107.7 314.8 491.6 1991 (1,378.2) (2,818.8) 609.2 1,960.9 1,149.9 1,043.8 (286.1) 610.7 1992 (3,740.3) (3,444.1) 236.7 2,800.0 1,512.3 1,309.5 (485.4) 840.7 1993 (4,491.5) (3,722.1) 829.2 2,654.1 (99.1) 1,592.6 25.2 1,251.3 1994 (3,847.2) (3,110.0) 882.0 2,849.4 (766.7) 1,769.8 188.0 982.5 1995 (3,616.1) (2,283.7) 292.3 2,779.7 (1,095.5) 877.4 48.7 1,107.9 1996 (2,655.9) (3,307.2) 794.7 3,258.6 141.0 677.6 251.3 1,063.2 1997 (4,428.4) (3,295.8) 1,350.5 3,012.1 4,021.8 1,797.2 359.1 1,523.9 Table 2.13: Difference (Total Outward Total Inward) 19891997
D if fe r e n c e ( O u t w a r d - In w a r d ) v s Y e a r
5 ,0 0 0 4 ,0 0 0

Diference (Outward - Inward)

3 ,0 0 0 2 ,0 0 0
S o u th E a s t A s ia N o r th E a s t A s ia E u ro p e S o u th A s ia A m e r ic a

(`000 tonnes)

1 ,0 0 0 0 ( 1 ,0 0 0 ) ( 2 ,0 0 0 ) ( 3 ,0 0 0 ) ( 4 ,0 0 0 ) ( 5 ,0 0 0 )
1989 1990 1991 1992 1993 1994 1995 1996 1997

W e s t A s ia O c e a n ia A f r ic a

Year

Figure 2.17: Difference (Outward - Inward) for all regions (1989-1997)

23

(`000 tonnes) Total Total Difference Outward Inward (Total Outward Total Inward) 1989 33,169.30 31,450.7 1,718.60 1990 38,793.2 37,482.6 1,310.60 1991 45,071.6 44,180.2 891.40 1992 53,799.2 54,769.8 (970.60) 1993 62,300.3 64,260.6 (1,960.30) 1994 70,358.6 71,410.8 (1,052.20) 1995 76,032.8 77,922.1 (1,889.30) 1996 80,000.9 79,777.6 223.30 1997 85,904.7 81,564.3 4,340.4 Total 545,430.60 542,818.7 2,611.9 Table 2.14: Difference (Total Outward Total Inward) 1989-1997 Figure 2.17 breaks down the difference in great detail by regions. South East Asia and North East Asia reflects more inward flows, while South Asia, West Asia, America and Africa reflects more outward flows for all years recorded. Compared to all regions, Oceania is seen to have balanced its inward and outward, while West Asia is noticed to have increased outward flow over the years. Europe, in the other hand changed its trend from 1993, where it started to concentrate in more inward containerised cargo than outward. Then again from 1996 onwards the earlier trend was repeated. It is also noted that Europe had radically increased its outward and decreased its inward, causing the biggest difference in 1997 compared to all other regions. Generally the outward cargo handled in Singapore Port is greater than inward by 2.6 million tonnes during this period of study, except for the year 1992 to 1995, the inward outnumbered the outward (Table 2.14). 2.4.2 Singapore Port Monthly based Statistics Year

2.4.2.1 Total Container Throughput (Jan`95 - Dec`97) Month Total Container Empty Throughput Jan `95 946.4 108.2 838.2 Feb `95 867.4 109.9 757.6 Mar `95 969.5 108.6 860.9 Apr `95 960.1 97.2 863.0 May `95 988.3 108.6 879.7 June `95 973.0 110.8 862.2 July `95 1,037.4 113.8 923.6 Aug `95 1046.5 113.5 933.1 Sep `95 977.5 112.4 865.1 Oct `95 1,047.9 123.0 924.9 Nov `95 986.9 122.8 864.1 Dec `95 1,030.0 120.0 910.0 Table 2.15(a): Total container throughput (Jan`95- Dec`95)
24

(`000 TEU) Loaded

Month Total Container Empty Throughput Jan `96 1,047.7 120.4 927.2 Feb `96 958.4 118.0 840.4 Mar `96 1,021.5 121.6 900.0 Apr `96 1,041.0 121.7 919.2 May `96 1,093.3 133.5 959.8 June `96 1,073.7 124.7 949.1 July `96 1,143.9 136.1 1,007.8 Aug `96 1,128.5 134.5 994.0 Sep `96 1,085.7 130.4 955.3 Oct `96 1,137.7 137.6 1,000.1 Nov `96 1,098.7 141.4 957.4 Dec `96 1,114.1 126.5 987.6 Jan `97 1,105.2 135.9 969.3 Feb `97 963.3 132.4 830.9 Mar `97 1,187.1 140.8 1,046.3 Apr `97 1,139.6 124.0 1,015.6 May `97 1,180.4 131.0 1,049.4 June `97 1,183.7 142.3 1,041.4 July `97 1,250.6 142.7 1,107.9 Aug `97 1,235.5 148.1 1,087.4 Sep `97 1,207.0 147.4 1,059.6 Oct `97 1,272.0 175.2 1,096.8 Nov `97 1,198.9 177.9 1,198.9 Dec `97 1,212.4 177.1 1,212.4 Table 2.15(b): Total container throughput (Jan`96- Dec`97) [7]

(`000 TEU) Loaded

Total Container Throughput vs Month 1,400 Total Container Throughput (in `000 TEU) 1,200 1,000 800 600 400 200 0
Nov `95 Nov `96 Sep `95 Sep `96 May `95 May `96 May `97 Sep `97 July `95 July `96 July `97 Nov `97 Mar `95 Mar `96 Mar `97 Jan `95 Jan `96 Jan `97

Empty Loaded

Month

Figure 2.18: Total container throughput by type (Jan`95 - Dec`97)

25

The seasonal trend in total container throughput can be seen in the monthly data from 1995 to 1997. It is observed that the volume of container throughput fluctuates between 0.87 to 1.27 million TEU. The empty containers are noticed to be rising as the total volume of containers increased throughout the 36 months recorded. However, the proportion of empty containers is pretty constant at the percentage of 11.41% in 1995, 11.95% in 1996 and 12.56% in 1997. We can also see a seasonal trend that the containers are at a low in every February and at peak in October. 2.4.2.2 Total Cargo by Type (Jan`95 - Dec`97) General Cargo Containerised Conventional (`000 tonnes) Bulk Cargo Oil Others 10,530.7 10,065.8 10,517.3 10,233.8 10,652.9 10,369.0 10,685.4 11,342.4 10,388.4 10,436.7 10,587.9 10,500.0 10,682.4 10,166.6 11,270.0 11,210.9 11,254.4 11,005.8 11,023.5 10,338.8 11,150.0 10,072.2 10,417.3 10,837.3 10,010.9 9,830.1 11,109.1 11,826.8 13,520.9 11,414.6 774.6 614 700.3 701.6 796.2 818 768.5 990.9 843.5 817.1 700 850 821.6 693.5 808 781.2 677.5 833.1 834.5 779.5 820 707.9 693 754.3 1,005.0 707.6 1,004.4 1,074.5 940.5 1,071.9

Total Cargo Handled Jan `95 24,871.1 12,405.5 1,160.2 Feb `95 22,954.8 11,260.5 1,014.7 Mar `95 25,394.0 12957.6 1,218.9 Apr `95 25,076.7 12,832.5 1,308.7 May `95 25,824.3 12,975.3 1,399.9 June `95 25,318.3 12,819.6 1,311.7 July `95 25,975.9 13,186.9 1,335.1 Aug `95 27,226.2 13,518.8 1,374.1 Sep `95 25,154.0 12,616.8 1,305.3 Oct `95 26,111.1 13,527.3 1,329.9 Nov `95 25,243.8 12,737.9 1,218.1 Dec `95 26,350.0 13,700.0 1,300.0 Jan `96 25,808.4 13,121.2 1,183.1 Feb `96 23,739.6 11,883.3 996.2 Mar `96 26,446.1 13,127.3 1,241.0 Apr `96 26,493.3 13,249.9 1,251.3 May `96 26,302.3 13,176.8 1,193.6 June `96 26,356.6 13,227.3 1,290.4 July `96 27,257.2 14,110.0 1,289.1 Aug `96 26,035.3 13,691.3 1,225.7 Sep `96 26,650.7 13,520.4 1,165.1 Oct `96 26,048.1 13,941.4 1,326.7 Nov `96 25,827.1 13,402.8 1,313.9 Dec `96 26,747.0 13,827.0 1,328.4 Jan `97 25,750.6 13,428.9 1,305.7 Feb `97 23,303.6 11,616.1 1,149.9 Mar `97 27,960.5 14,563.3 1,283.7 Apr `97 28,391.1 14,160.0 1,329.8 May `97 30,382.9 14,673.7 1,247.8 June `97 28,220.2 14,548.9 1,184.7 Table 2.16(a): Total cargo by type (Jan`95-June`97)

Year

26

Total Cargo Handled July `97 28,400.1 14,791.2 1,388.6 Aug `97 26,756.7 14,677.7 1,289.6 Sep `97 27,697.2 14,480.6 1,335.0 Oct `97 27,912.7 14,993.6 1,316.5 Nov `97 25,827.5 13,995.8 1,326.2 Dec `97 26,885.1 14,210.2 1,261.1 Table 2.16(b): Total cargo by type (July`97-Dec`97) [7]

Year

General Cargo Containerised Conventional

(`000 tonnes) Bulk Cargo Oil Others 11,143.5 9,770.5 10,830.5 10,365.1 9,467.0 10,478.9 1,076.9 1,018.8 1,051.1 1,237.5 1,038.5 934.8

Total Cargo Handled (by type) vs Month

35,000 30,000
Total Cargo Handled (in `000 tonnes)

25,000 20,000 15,000 10,000 5,000 0

July `95 July `96 May `95 May `96 May `97 Sep `95 Sep `96 July `97 Sep `97 Jan `95 Jan `96 Mar `95 Mar `96 Jan `97 Nov `95 Nov `96 Mar `97 Nov `97
Others Conventional Oil Containerised

Month

Figure 2.19: Total cargo handled by type (Jan`95 - Dec`97) Similar to the total container throughput, the total cargo handled in Singapore Port also fluctuates from 22.95 to 30.38 million tonnes. Monthly average growth rates of containerised and conventional cargo are generally more compared to oil and other cargo. Again, a drop in all types of cargo is indicated in February of all three years studied. Total cargo handled exceeded 30 million tonnes for the first time in May 1997, the drastic increase in oil cargo mainly contributed to this figure. Both the containerised and oil cargo dominate the major proportion of the total cargo (51.2% and 40.7% each) while conventional and other cargo occupy the rest.

27

2.4.2.3 Inward and Outward Containerised Cargo by Country (Jan`96 - Dec`97) (`000 tonnes) Country Year South North South West Europe America Oceania Africa East Asia East Asia Asia Asia Jan `96 2,309.0 1,534.5 495.7 112.9 1,067.6 566.5 255.1 103.1 Feb `96 2,237.4 1,510.5 425.5 95.9 998.5 397.5 256.8 94.9 Mar `96 2,516.6 1,350.2 509.0 100.0 1,126.6 509.4 269.0 108.4 Apr `96 2,575.4 1,491.3 538.1 112.2 1,171.7 455.8 269.7 104.1 May `96 2,549.3 1,439.7 417.2 90.9 1,080.5 565.6 277.7 131.1 June `96 2,579.9 1,539.1 421.3 103.9 1,044.8 463.3 270.1 133.3 July `96 2,812.7 1,527.6 493.3 104.2 1,198.1 465.7 305.4 116.0 Aug `96 2,529.5 1,540.7 510.9 113.0 1,090.5 552.7 286.0 118.1 Sep `96 2,711.9 1,583.2 416.8 93.5 996.4 476.3 274.8 161.0 Oct `96 2,783.1 1,552.2 408.9 106.3 1,089.7 580.0 264.7 128.2 Nov `96 2,582.3 1,562.1 455.8 113.6 1,006.2 513.1 287.5 127.0 Dec `96 2,836.0 1,529.4 474.5 104.1 1,083.3 528.9 288.1 116.6 Jan `97 2,542.8 1,541.6 511.0 137.0 1,087.1 509.9 270.9 107.2 Feb `97 2,274.2 1,343.3 436.3 111.6 921.4 388.2 256.2 79.7 Mar `97 2,947.3 1,595.5 483.8 132.1 1,131.1 475.8 323.3 134.6 Apr `97 2,777.7 1,570.8 504.0 134.3 1,152.4 467.3 345.9 94.6 May `97 2,849.5 1,623.3 504.5 129.6 1,201.8 473.4 379.0 113.0 June `97 2,876.9 1,612.5 504.2 118.3 1,154.2 446.7 388.7 98.3 July `97 2,634.1 1,643.0 571.4 137.9 1,369.8 479.0 368.5 110.6 Aug `97 2,696.5 1,767.0 515.9 119.1 1,224.7 403.2 361.3 104.5 Sep `97 2,829.5 1,593.0 574.9 117.3 1,065.2 411.3 362.8 94.0 Oct `97 2,819.6 1,699.4 518.2 116.4 1,221.0 443.2 373.5 107.6 Nov `97 2,695.7 1,558.8 480.6 108 1,133.8 425.1 355.8 74.1 Dec `97 3,002.0 1,574.2 534.3 111.4 1,061.1 411.2 379.4 95.1 [7] Table 2.17: Inward containerised cargo by country (Jan`96-Dec`97) (`000 tonnes) Country Year South North South West Europe America Oceania Africa East Asia East Asia Asia Asia Jan `96 2,467.5 1,197.7 547.0 376.3 1,036.6 575.0 232.6 205.9 Feb `96 1,992.5 1,012.5 449.3 389.5 1,085.6 469.7 240.8 189.6 Mar `96 2,412.5 1,387.2 423.8 352.0 1,094.2 477.8 252.0 193.0 Apr `96 2,313.0 1,250.8 512.5 368.1 1,092.5 489.5 255.1 204.9 May `96 2,362.1 1,221.7 524.8 364.6 1,063.6 553.4 287.2 188.2 June `96 2,352.5 1,262.2 502.7 360.2 1,103.1 555.9 290.6 189.9 July `96 2,484.8 1,271.2 535.2 387.6 1,148.7 655.9 331.6 206.3 Aug `96 2,379.4 1,239.5 561.7 368.1 1,132.7 635.1 343.4 230.7 Sep `96 2,308.5 1,202.0 581.5 373.3 1,098.6 648.1 322.7 220.5 Oct `96 2,434.0 1,270.6 593.7 404.0 1,077.0 624.7 368.9 244.6 Nov `96 2,395.5 1,237.9 571.0 381.6 1,055.9 523.3 346.4 229.7 Dec `96 2,465.0 1,299.9 558.7 383.7 1,106.2 547.4 288.8 201.9 Table 2.18(a): Outward containerised cargo by country (Jan`96-Dec`96)

28

(`000 tonnes) Country Year South North South West Europe America Oceania East Asia East Asia Asia Asia Jan `97 2,453.8 1,200.2 531.4 333.8 1,145.8 567.1 305.2 Feb `97 1,924.5 1,076.2 491.3 291.9 1,074.3 470.8 267.1 Mar `97 2,573.4 1,427.8 598.2 373.5 1,238.3 543.5 342.9 Apr `97 2,484.4 1,316.5 639.5 380.7 1,136.5 590.3 329.1 May `97 2,612.3 1,332.8 629.9 373.6 1,271.9 580.1 375.8 June `97 2,533.4 1,341.7 603.5 364.6 1,265.6 614.8 383.9 July `97 2,557.0 1,368.0 621.2 397.0 1,213.1 687.5 388.8 Aug `97 2,442.5 1,348.9 634.4 400.8 1,353.3 629.7 433.8 Sep `97 2,343.2 1,343.8 690.5 373.1 1,338.0 640.5 443.6 Oct `97 2,392.8 1,388.9 686.1 403.6 1,446.2 637.8 447.9 Nov `97 2,141.9 1,395.8 655.5 345.2 1,341.7 567.6 445.8 Dec `97 2,057.0 1,284.2 708.0 447.5 1,367.7 603.6 360.6 Table 2.18(b): Outward containerised cargo by country (Jan`97-Dec`97) [7]
Inward/Outward Containerized Cargo (by country) vs Year
3,500

Africa 191.3 179.8 233.3 223.0 212.2 234.4 233.8 231.7 246.5 282.1 262.3 206.7

3,000

Containerized Cargo (in `000 tonnes)

2,500

South East Asia South East Asia* North East Asia North East Asia*

2,000

Europe Europe* South Asia South Asia* America America* West Asia West Asia*

1,500

1,000

Ocenia Ocenia* Africa Africa*

500

0 Feb `96 Feb `97 June `96 June `97 Apr `96 Apr `97 Aug `97 Aug `96 Sep `96 Sep `97 July `96 Dec `96 May `96 May `97 July `97 Dec `97 Jan `96 Jan `97 Mar `96 Mar `97 Nov `96 Nov `97 Oct `96 Oct `97

Year

Figure 2.20: Inward/Outward containerised cargo by country (Jan `96-Dec`97)

*Outward containerised cargo

29

Inward Containerised Cargo

8,000 7,000 Containerised Cargo (in `000 tonnes) 6,000 5,000 4,000 3,000 2,000 1,000 0
Jan `96 Sep `96 Jan `97 Sep `97 July `96 July `97 Nov `96 May `96 May `97 Nov `97 Mar `96 Mar `97 Jan `96

Outward Containerised Cargo

Sep `96

Jan `97

Sep `97

July `96

July `97

Nov `96

May `96

May `97

South East Asia Europe South Asia Ocenia

North East Asia America West Asia Africa

Month

Figure 2.21: Inward/Outward containerised cargo by country (Jan`96-Dec`97)-stacked area We now look at the monthly inward and outward container flow by region for 1996 and 1997. Observing Figure 2.20 and 2.21 of the inward and outward containerised cargo, we see the dip in February of every year. Singapore Port handled an all-time low of 5.8 million tonnes of both inward and outward cargo in February 1997. This dip is very obvious in South East Asia and North East Asia, the two prominent regions in containerised cargo. The total cargo however rose drastically over 20% in the following month, reaching 7.2 and 7.3 million tonnes of inward and outward cargo. Inwards from West Asia and Africa were fairly constant throughout this duration while inwards from the other regions were more unpredictable as the figures were fluctuating through the period studied. Generally the monthly growth pattern for inward and outward containerised cargo is quite identical. The difference between the outward and inward by regions for 24 months is presented in the tables and graph below. (`000 tonnes) Difference by Country (Outward Inward) Month South North South West Europe America Oceania Africa East Asia East Asia Asia Asia Jan `96 158.5 (336.8) 51.3 263.4 (31.0) 8.5 (22.5) 102.8 Feb `96 (244.9) (498.0) 23.8 293.6 87.1 72.2 (16) 94.7 Mar `96 (104.1) 37.0 (85.2) 252.0 (32.4) (31.6) (17) 84.6 Apr `96 (262.4) (240.5) (25.6) 255.9 (79.2) 33.7 (14.6) 100.8 May `96 (187.2) (218.0) 107.6 273.7 (16.9) (12.2) 9.5 57.1 June `96 (227.4) (276.9) 81.4 256.3 58.3 92.6 20.5 56.6 July `96 (327.9) (256.4) 41.9 283.4 (49.4) 190.2 26.2 90.3 Aug `96 (150.1) (301.2) 50.8 255.1 42.2 82.4 57.4 112.6 Sep `96 (403.4) (381.2) 164.7 279.8 102.2 171.8 47.9 59.5 Oct `96 (349.1) (281.6) 184.8 297.7 (12.7) 44.7 104.2 116.4 Nov `96 (186.8) (324.2) 115.2 268.0 49.7 10.2 58.9 102.7 Dec `96 (371.0) (229.5) 84.2 279.6 22.9 18.5 0.7 85.3 Table 2.19(a): Difference (Outward Inward) for all regions (Jan`96 Dec`96)

Nov `97

Mar `96

Mar `97

30

(`000 tonnes) Difference by Country (Outward Inward) Month South North South West Europe America Oceania East Asia East Asia Asia Asia Jan `97 (89.0) (341.4) 20.4 196.8 58.7 57.2 34.3 Feb `97 (349.7) (267.1) 55.0 180.3 152.9 82.6 10.9 Mar `97 (373.9) (167.7) 114.4 241.4 107.2 67.7 19.6 Apr `97 (293.30) (254.30) 135.50 246.40 (15.90) 123.00 (16.80) May `97 (237.20) (290.50) 125.40 244.00 70.10 106.70 (3.20) June `97 (343.50) (270.80) 99.30 246.30 111.40 168.10 (4.80) July `97 (77.10) (275.00) 49.80 259.10 (156.70) 208.50 20.30 Aug `97 (254.00) (418.10) 118.50 281.70 128.60 226.50 72.50 Sep `97 (486.30) (249.20) 115.60 255.80 272.80 229.20 80.80 Oct `97 (426.80) (310.50) 167.90 287.20 225.20 194.60 74.40 Nov `97 (553.80) (163.00) 174.90 237.20 207.90 142.50 90.00 Dec `97 (945.00) (290.00) 173.70 336.10 306.60 192.40 (18.80) Table 2.19(b): Difference (Outward Inward) for all regions (Jan`97 Dec`97) [7] Month Total Outward Total Inward Africa 84.1 100.1 98.7 128.40 99.20 136.10 123.20 127.20 152.50 174.50 188.20 111.60

(`000 tonnes) Difference (Total Outward -Total Inward) Jan `96 6,638.6 6,444.4 194.2 Feb `96 5,829.5 6,017.0 (187.5) Mar `96 6,592.5 6,489.2 103.3 Apr `96 6,486.4 6,718.3 (231.9) May `96 6,565.6 6,552.0 13.6 June `96 6,617.1 6,555.7 61.4 July `96 7,021.3 7,023.0 (1.7) Aug `96 6,890.6 6,741.4 149.2 Sep `96 6,755.2 6,713.9 41.3 Oct `96 7,017.5 6,913.1 104.4 Nov `96 6,741.3 6,647.6 93.7 Dec `96 6,851.6 6,960.9 (109.3) Jan `97 6,728.6 6,707.5 21.1 Feb `97 5,775.9 5,810.9 (35.0) Mar `97 7,330.9 7,223.5 107.4 Apr `97 7,100.0 7,047.0 53.0 May `97 7,388.6 7,274.1 114.5 June `97 7,341.9 7,199.8 142.1 July `97 7,466.4 7,314.3 152.1 Aug `97 7,475.1 7,192.2 282.9 Sept `97 7,419.2 7,048.0 371.2 Oct `97 7,685.4 7,298.9 386.5 Nov `97 7,155.8 6,831.9 323.9 Dec `97 7,035.3 7,168.7 (133.4) Total 165,910.3 163,893.3 2,017.0 Table 2.20: Difference (Total Outward Total Inward) Jan`96 Dec`97

31

Difference (Outward - Inward) vs Month

400

200

Difference (Outward - Inward) (`000 tonnes)

South East Asia North East Asia Europe South Asia America West Asia Oceania Africa

(200)

(400)

(600)

(800)

(1,000)
May `96 May `97 Mar `96 July `96 Mar `97 Nov `96 July `97 Jan `96 Jan `97 Nov `97 Sep `96 Sep `97

Month

Figure 2.22: Difference (Outward Inward) for all regions (Jan`96 Dec`97) Generally there is more outward containerised cargo compared to inward containerised cargo (both the years recorded higher outward cargo). Similar to the annual report, statistics by country shows that all regions, except South East Asia and North East Asia reveal greater outward compared with the inward in all 24 months on record. South East Asia had also marked a very significant increase of inward than outward in the last month of study. West Asias and Africas outward again shows greater outward compared to inward. Americas figure in early months is unpredictable as it fluctuates outward-inward, but it is apparent that the trend is more outward from the month of June `96 onwards. Other regions seem to have more outward containerised cargo than inward. Basically, the difference in monthly outward-inward containerised cargo is similar to that in the annual statistics. 2.5 Singapore as a Global Marine Hub

Located at the crossroads of international trading in sea routes in the Asia-Pacific, Singapore is strategically positioned to participate in as a transshipment hub for South East

32

Asia and contribute to its growth process. Singapore is also an active feeder shipping spot in Asia, with a network service ranging from short to long routes. Today, Singapore Port offers full range of service, including fuel, pilotage and towage, cargo, vessel repairs, warehousing, banking, insurance, communications, entertainment, training and education in port operation and management, logistics and distribution management and other transport studies. Singapore now has become the global marine hub and the seventh largest ship registry in the world.

References:
[1] [2] [3] [4] [5] [6] [7] [8]

Ports and Habors, December 2000 Ports and Habors, September 2000 http://www.portmanagement.com http://www.info.gov.hk http://www.polb.com Niko Wijnolst and Frans Waals, Shipping Industry Structure, Delft University Press, 1999 Singapore Port Statistics http://www.mpa.com.sg

33

3.

Major Sea Cargo Players

The shippers, carriers, freight forwarders, forwarder and third party logistics providers and information technology service providers are the core participants in the sea cargo industry. The physical flow of sea cargo is governed by the port and custom authorities. (Some important terms in sea cargo handling are listed in Glossary). In this report, we will mainly focus on carriers. 3.1 Introduction to Ocean Carriers

Since the introduction of the modern container shipping in the 1960s, ocean carriers have offered a global transport solution to shippers on a worldwide basis. Moreover, container shipping is relatively cheaper than airfreight. The amount of goods carried in container vessels by carriers have been continuously increasing with a fairly positive growth is expected in future years. Table 1.3 gives the top 20 container carriers ranked by total slot capacity at the beginning of 2000. Ocean carriers are always very alert in the needs and requirements of shippers. Some of the needs are high frequency, low cost, one-stop shopping or integrated door-to-door transport solutions, guaranteed and fast transit times, added value services, quality assurance and electric cargo tracking and control. The carriers responses to these needs and requirements have resulted in the deployment of increasingly large ships to obtain economies on scale, the creation of wider consortia or alliance and a series of mergers and acquisitions. 3.2 Conference Lines and Non-Conference Lines

There are two types of ocean carriers (liner) services; the conference and non-conference lines. A conference line is a group of two or more shipping lines entering into an agreement to adopt the use of a common freight rate structure (normally established for a year) and a regular scheduled service on specific routes. It is formed to decrease direct competition between their members and to protect them from outside competition. Members however are free to compete by traffic and by the quality of the service. Nonconference lines are independent operators who are not contractually bound into a conference agreement and they operate with their own rating structure and schedules. A conference line gives stable rates independent of volume of freight. With non-conference lines, rates have a competitive structure and are liable to be adjusted to suit economic conditions. In 1998, there was about 49% share held by conference lines and remaining 51% held by the non-conference lines in the Pacific market share. NOL-APL held approximately 10% of east and west bound, which made it to be the biggest conference operator. Evergreen with 11.5% and Hanjin* with 9.8% share appear to be the two most active non-conference carriers in the Pacific region [1]. 3.3 Asian Carriers

Asian lines play key roles in the three major routes described in Section 1.6. They carry around 70% of Europe-Asia trade, over 80% of the containerised United States-Asia trade
*

Hanjin is currently a member of United Alliance.

34

and 90% of the intra-Asia trade [2]. The service level offered by these carriers is on the par to companies from Europe and North America and the growth has been mainly based on trade growth in Asia. It is also predicted that more consolidation mergers will occur particularly in the Asian region. 3.4 Mergers and Acquisitions

Mergers and acquisitions are the current trends in todays container shipping industry. Due to this trend, the number of containers operated by the top 20 carriers increased from 32% in 1981 to 64% in 1997[2]. Unsatisfactory return of capital is identified to be the root cause of mergers trend in the mid-1990s. Besides cutting the operating costs and reducing port time, merger liners can increase market share and dominance and thereby increase profitability, maintain price competitiveness and use assets more effectively. They can offer more frequent and more extensive transport services to locations around the world at the lowest possible cost, and at the same time reduce trade imbalances. For example, Maersk Line acquired Sealand in 1999 to form a company controlling some 9.2% of the world container fleet[3]. In other words, mergers result in fewer, bigger and stronger carriers. Below are the mergers and take-overs since 1995[4]: 1995 CP Ships purchased Cast Safmarine merged with CMBT 1996 CMA bought Compagnie Generale Maritime 1997 P&O Containers merged with Nedlloyd Lines Hanjin bought share in DSR-Senator NOL purchased APL CP Ships bought Lykes and Contship 1998 CP Ships purchased Iravan and ANZDL, formed merger with TMM P&O Nedlloyd bought Blue Star CMA purchased Australian National Line(ANL) Hapag Lloyd taken over by Preussag Evergreen purchased Lloyd Triestino Hamburg-Sud bought Alianca Safmarine bought out CMB 1999 P&O Nedlloyd bought Tasman Express Line Maersk bought Safmarine CSAV bought majority stake in Libra Navegacao A.P.Mller/Maersk Group acquired Sea-Land Services, the international liner business of CSX

35

3.5

Carrier Statistics

In 1999, the average size of container ships in the Trans-Atlantic, Trans-Pacific and AsiaEurope trade was 3,3036 TEU, 3,210 TEU and 3,862 TEU respectively. By the year 2002, it is expected that container ships in excess of 7,000 TEU and beyond will come into operation on Asian routes[3]. Table 3.1 shows the summary of services of major carrier alliances and megacarriers. The Trans-Pacific route indicates an imbalanced trade between the west and east coast. This is very apparent within the New World Alliance group. In terms of weekly sailing, ship numbers and capacity, the major player for Asia-Europe trade is the Grand Alliance. In the Trans-Atlantics trade, Maersk Sealand is the top and vibrant carrier. Generally there are more sailings in the Asia-Europe route compared to Trans-Atlantic. Alliance group Participating lines Numbers of sailings per week-sort by ships TransAsiaTrans-Atlantic Pacific Europe West coast 6 East coast 2 West coast 5 East coast 3 West coast 9 East coast 1 West coast 8 East coast 2 7 4 4 5 2 6 1 2 Slot capacity (Numbers of ships) 645,748 TEU (278) 544,558 TEU (228) 447,358 TEU (178) 342,566 TEU (152) 380,689 TEU (207) 311,951 TEU (132)

P&O Nedlloyd Grand NYK Alliance Hapag-Lloyd OOCL Maersk Sealand New World Alliance United Alliance APL-NOL MOL Hyundai Hanjin DSR-Senator Cho Yang* UASC

West coast 7 4 3 East coast 1 West coast 5 3 1 Evergreen East coast 2 Table 3.1: Summary of services of major carrier alliances and megacarriers[3] Cosco/K-Line/Yangming

Table 3.2 and Figure 3.1 show the total import and export of the top 25 carriers for 1997 and 1998. We glance through some carriers introduced in the rank 20 and above in Table 3.2. Seaboard Marine, a wholly owned subsidiary of Seaboard Corporation provides direct, regular service between the United States and the Caribbean Basin, Central and South America. Dole Fresh Fruit Co. is a large carrier of fresh fruit and vegetables, takes delivery of the reefer containership in the world. As one of the largest carriers to Central America, Great White Fleet Ltd. offers both dry and refrigerated containerised cargo for shipping. Sud Americana de Vapores (Compaa Sudamericana de Vapores, CSAV), a South American Steamship Company, founded in 1872 is among the oldest shipping companies in the world. CSAV is a Chilean publicly

The United Alliance has recently dropped Cho Yang from its liner group.

36

traded shipping company that operates general cargo, bulk cargo, containerised cargo, fresh and frozen products and vehicles.
1998 Exports (TEU) 592,195 552,749 443,766 325,023 244,799 200,466 237,016 244,635 197,098 198,371 188,049 187,431 185,307 173,365 145,233 223,539 143,505 155,125 109,506 60,453 97,918 124,409 51,678 60,034 58,459 1997 Exports (TEU) 626,080 606,567 463,648 366,230 247,109 300,843 148,456 188,785 204,776 236,411 204,747 187,792 139,646 155,153 208,520 140,993 142,226 95,760 61,069 103,049 123,198 40,122 75,787 216,359 93,754

Rank 1(1) 2(2) 3(3) 4(4) 5 6(8) 7(5) 8(15) 9(10) 10(9) 11(7) 12(11) 13(12) 14(14) 15(17) 16(13) 17(16) 18(18) 19(20) 20(21) 21(22) 22(23) 23(25) 24(24) 25 (6) (19)

Carriers Sea-Land Service Evergreen Line Maersk Line Hanjin Shipping Co. APL/NOL Cosco Hyundai Merchant Marine P&O Nedlloyd NYK YML OOCL K'-Line MOL Hapag Lloyd DSR Senator Line Crowley American Transport Zim Container Line MSC Cho Yang Line Dole Fresh Fruit Co. Lykes Lines Seaboard Marine Ltd. Great White Fleet Ltd. Sud Americana de Vapores Colombus Line APL NOL

Imports (TEU) 784,692 745,394 621,150 577,282 650,720 457,065 400,087 307,195 329,928 327,051 310,178 293,475 249,737 232,942 224,866 145,725 122,233 163,665 176,037 151,900 88,152 41,530 92,395 57,771 56,432

Total (TEU) 1,376,887 1,298,143 1,064,916 902,305 895,518 657,531 637,103 551,830 527,027 525,422 498,227 480,906 435,045 406,307 370,100 369,264 265,738 318,791 285,543 212,352 186,070 165,938 144,073 117,804 114,891

Imports (TEU) 729,046 638,167 617,802 461,361 266,489 375,930 165,024 281,609 286,580 282,362 261,869 242,074 174,003 152,849 134,047 170,033 143,165 119,203 152,097 105,806 49,317 85,385 59,645 439,825 175,170

Total Annual (TEU) growth(%) 1,355,126 1.6 1,244,734 4.3 1,081,450 -1.5 827,591 9.0 513,599 676,772 313,480 470,394 491,356 518,773 466,616 429,866 313,649 308,001 342,567 311,026 285,391 214,963 213,166 208,855 172,515 125,507 135,432 656,185 268,923 28.0 -5.9 76.0 12.0 6.9 -4.0 3.1 1.2 29.5 20.2 7.8 -14.6 11.7 32.8 -0.4 -10.9 -3.8 14.8 -13.0

Table 3.2: Imports and exports of the top 25 carriers-1997/1998[5] * ranking in brackets are for 1997

From table 3.2, we can see that the same carriers captured the top four positions in 1998, as the year before. Sea-Land Service, Evergreen Line and Maersk Line are the top three, whose throughput surpassed 1 million TEU. Maersk Line managed to maintain its 3rd position, despite a drop of 1.5% in its total TEUs handled. P&O Nedlloyd, which sat in 15th place in 1997, experienced a dramatic growth of 76%, reaching the 8th place in 1998. More astonishing, however is the impressive growth experienced by NOL, which went up from 19th position to 5th position in 1998 after the merge with APL. In the other hand, Cho Yang Line was ranked 19th in 1998, move up only one notch from the previous year, though it indicated a significant improvement of 32.8% within a year. Generally 39% of the carriers listed above have improved their ranking, while 30% of them have maintained their positions in these two years.

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Top 25 Carriers based on Total Imports and Exports-1997/1998

NOL APL Colombus Line Sud Americana de Vapores Great White Fleet Ltd. Seaboard Marine Ltd. Lykes Lines Dole Fresh Fruit Co. Cho Yang Line MSC Zim Container Line Crowley American Transport DSR Senator Line

Hapag Lloyd MOL K'-Line OOCL YML NYK P&O Nedlloyd

Total for 1997 Total for 1998

Carriers

Hyundai Merchant Marine Cosco APL/NOL Hanjin Shipping Co. Maersk Line Evergreen Line Sea-Land Service

400,000 800,000 1,200,000 Total (Import+Export) (TEU)

1,600,000

Figure 3.1: Imports and exports of the top 25 carriers-1997/1998

References:
[1] [2] [3] [4] [5]

http://www.seanet.co.uk http://www.eclac.cl/publicaciones/ Ports and Harbors, December 2000 The Future of Container Shipping Industry, Cargo Systems, IIR Publications Ltd, 1999 http://www.manufacturing.net/magazine/logistic/
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4.

Sea Cargo Import and Export Processes

A pictorial representation of a generic process for sea cargo is displayed in Figure 4.1. We will simply call this the sea cargo system. The terms used are listed in the Glossary.

(goods)

(containers)

Shipper

Depot Operations

Import Sea Cargo

Freight Forwarder

Port Operations

Carrier

Port Operations

Freight Forwarder

Export Sea Cargo

Consignee
(goods)

Depot Operations
(containers)

Figure 4.1: The sea cargo system While many of the steps are generic, we also describe some of the necessary processes in Singapore. We divide our discussion in Singapore containerised sea cargo system into two sections; the export process and the import process. Most of the transactions involved in both the processes are accomplished electronically, using PortNet, TradeNet, BoxNet and CEDEX. Please refer to section 5.2.3.4 to 5.2.3.7 for information on these IT services. 4.1 Sea Cargo Export Process

Figure 4.2 summarises the export process flow of sea cargo (containerised). These are as follows: Step 1-17 The shipper begins the sea cargo export process by sending shipment instructions containing destination, consignee details, products, quantities, warehouse and delivery dates to the Freight Forwarder (hereafter will be referred as Forwarder). The primary step by Forwarder is to contact the carrier to book shipment. The carrier considers all booking details such as destination port, units (number of containers, size, type of containers) and delivery dates in the process of booking and finally confirms the shipment to the Forwarder by providing the booking number, vessel details and charges. After that, the Forwarder prepares and send the shipper preliminary shipment documentation with booking details and confirmation, noting shipment handling, charges, destination port and carrier. The Forwarder then co-ordinates with Warehouse Operations regarding shipment details (products, quantities, vessel sailing schedule and delivery times) and co-ordinates with Land Transport Operations on transportation instructions.

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INFORMATION FLOW 1 2 3 4 5 Shpr's instruction to FF FF books shipment with Cr FF confirms shipment to Shpr FF co-ordinates with WO and LTO LTO requests for empty containers from Cr Cr gives container pick up details to LTO and DO LTO arranges pick up and delivery times (TT booking) with PO LTO exchanges EIR with DO DO updates Cr LTO exchanges receipt for empty container with WO WO hands packing list to FF and LTO WO sends inventory update to Shpr FF sends preliminary shipment documentation (House Bill of Lading) to Cr FF receives shipment documentation (Ocean Bill of Lading) from Cr Permit application Permit approval FF forwards shipment documentation to Destination FF and Shpr

PHYSICAL FLOW

7 8 9 10

Truck goes to pick up empty containers from Depot Arrival of truck at Depot Truck picks up empty containers from Depot and goes to Warehouse Arrival of truck with empty containers at Warehouse Containers packed at Warehouse Truck with packed containers goes to Port Depot Operations

11 12 13

Warehouse Operations

14

15 16 17

18 19 Port 20 Operations

PO issues receipt for container delivery PO gives location and directions to truck Planning for loading

Arrival of truck with stuffed containers at port Truck goes to the yard export location Storage/stack up of container Load container Vessel arrival

KEY Shpr: Shipper; Cr: Career; FF: Freight Forwarder; LTO: Land Transport Operations; DO: Depot Operations; WO: Warehouse Operations; PO: Port Operations

Figure 4.2: Exportation process flow of sea cargo (containerised)[1]

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Next, the Land Transport Operations calls for empty containers from the carrier. Approving the request, the carrier gives the container pick up details including the information of the relevant Depot Operators, yard location and container type to the Land Transport Operations. The carrier also sends the Depot Operations a release order of empty containers to the Land Transport Operations. Soon after the authorization, the Land Transport arrange pick up and delivery times by sending Loading Appointment Request to Port Operations in Singapore. This is accomplished electronically through the PortNet. The Port Operations replies to confirm container delivery times at port by sending Loading Appointment Details (covering time window and loading area), again by PortNet. At this point, the Land Transport Operations sends their truck to pick up empty containers from Depot. Here, it exchanges EIR (Equipment Interchange Report) with Depot Operations, and the empty containers are released, where by the truck carries them to the Warehouse. Upon completing its task, the Depot Operations finally updates the carrier on container status (container out) through BoxNet/CEDEX. Reaching the Warehouse, the Land Transport Operations exchanges receipt for empty containers with Warehouse Operations. When the Warehouse Operations receives the empty container, it can begin packing. The Warehouse Operations hands shipment documentation (packing list) to both Land Transport Operations and Forwarder and latter sends an inventory update to shipper. The truck with the packed containers, now moves to the port and delivers the container. In return it receives a receipt for container delivery, issued by Port Operations via PortNet. (Further Port Operations activities will be discussed in Step 18-20.) Meanwhile, the Land Transport Operations sends the container delivery receipt (mentioned just before) to the Forwarder to confirm delivery to Port. As soon as the Forwarder receives the container delivery receipt, it prepares and sends the Carrier preliminary shipment documentation called the House Bill of Lading. The Carrier finalises all the shipment documentations and sends the Forwarder, the Ocean Bill of Lading and packing list. In Singapore, the Forwarder also deals with TDB (Trade Development Board) and CED (Custom & Excise Department) to obtain permit approval via TradeNet. In order to apply for a permit, the Forwarder needs to forward clear details on shipper, destination, products, quantities, prices and total value. Upon the approval the TDB and CED issue a permit with permit number and status of approval. At the same time, the Forwarder also obtains cargo release from these government agencies and it finalizes all shipment documentations. Finally, the Forwarder provides the destination Forwarder with the Bill of Lading, cargo manifest and packing list. It also sends the shipper Bill of Lading, packing list, invoice and other certificates and permits. Step 18-20 As described before, when the stuffed containers arrive the port, the Port Operations issues Land Transport Operations a receipt for container delivery via PortNet. The truck then goes to the yard export location for storage after receiving the instructions and location

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from the Port Operations. Finally when the vessel arrives, the containers are loaded according to loading sequences as planned by Port Operations. 4.2 Sea Cargo Import Process

Figure 4.3 resembles the import process flow of sea cargo (containerised). We now describe the documentation and physical flow of the import process until the product reaches the consignee. Step 1-4 Pre-notification on cargo arrival is sent to the destination port via telex from the origin port. Special containers, namely the reefers are identified for storage location ahead of time. The Port Operations also plans for discharge of cargo. DG (Dangerous Goods) such as explosive, poison and chemical products are given additional attention, as these cargo have to be directly delivered. After the carrier confirms arrival of vessel at the port, the containers are ready to be retrieved by the Port Operations. The containerised cargo are brought to the yard for storage. The locations of containers are then recorded. In PSA, containers are arranged in slots by staking them up on top another. Step 5-18 The Forwarder is the next major player in this stage of sea cargo system. Upon receiving the vessel arrival schedule from Port Operations, the Forwarder confirms ETA (Estimated Arrival Time) of the inbound shipment through PortNet. After pre-alerting consignee on the shipment arrival time at warehouse, the Forwarder co-ordinates with its Land Transport Operations on transport requirement and its Warehouse Operations on storage requirement. At this point of time, the Forwarder receives shipment details, consisting of various kinds of charges (port charges, import duties, and clearance charges from the carrier). In Singapore, the Forwarder works out for a permit through TradeNet. The permit application includes information of vessel name, voyage, ETA, shipping line, invoice value, products and HS (Harmonised System) code. A permit is later issued upon the approval by CED and TDB, also via TradeNet. It also obtains cargo clearance from these government agencies. As the carrier confirms vessel arrival at the port by vessel schedule (this includes the berth number and arrival time) to Forwarder by PortNet, it releases the container to the Port Operations. Keeping the containers under its custody in the terminal, the Port Operations releases them to Forwarder through PortNet. The documentation on container release consist particulars of containers, entities handling freight and Land Transport Operations. Shortly after receiving container clearance from Port Operations and the Delivery Order (information covers shipper details, consignee details, charges, notes on shipment handling, origin and destination port, carrier name) from carrier, the Forwarder hands shipment documentations of import permit, packing list and invoice to Land Transport Operations. Land Transportation Operations then arranges for pick-up time with Port Operations.

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INFORMATION FLOW 1 PO receives pre-noticication on container arrival from origin port PO plans for discharge PO retrieves container

PHYSICAL FLOW

2 3

Arrival of vessel Off load containers Tow containers to yard Port Operations

PO updates storage location

Storage/stack up of containers

5 6 7 8 9 10 11 12 13 14 15 16 17 18

FF receives pre-notification on vessel arrival from PO FF pre-alerts consignee FF co-ordinates with LTO and WO FF receives shipment details for release from Cr Permit application Permit approval FF receives Delivery Order from Cr FF hands shipment documentation to LTO LTO exchanges shipping documentation from PO LTO exchanges shipping documentation to WO PO releases containers to LTO Arrival of loaded containers at Warehouse Off load containers QA inspection and exceptions recorded Goods stored Goods delivery Empty containers sent to Depot

Warehouse Operations

19 20 21 22

DO raises EIR to LTO DO sends repair estimates to Cr DO obtains approval for container repair/cleaning DO updates Cr

Arrival of empty containers at Depot Depot Operations Container repaired/cleaned

KEY Cr: Career; FF: Freight Forwarder; LTO: Land Transport Operations; DO: Depot Operations; WO: Warehouse Operations; PO: Port Operations

Figure 4.3: Importation process flow of sea cargo (containerised)[2]

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As soon as the truck arrives at the port gate, it awaits for direction from the port to collect the containers. After confirmation from the Port Operations, the Land Transport Operations matches the containers based on truck number and container location given to them. The Land Transport Operations also has to exchange shipment documentation with the Port Operations before it can release the containers to them. Now that the truck is loaded with stuffed containers, it moves towards the warehouse. An exchange of shipment documentation from Land Transport Operations to the Warehouse Operations takes place before the truck can off load the containers in the Warehouse. This shipment documentation covers container particulars, shipper details, and notes on shipment handling, products, quantities and packing units. At the Warehouse, quality assurance inspection and exception on received goods are performed by Warehouse Operators, together with the Forwarders. Description, quantity and quality exceptions of incorrect and damaged goods are recorded. These goods are now stored, waiting to be delivered or sent directly to the consignee. Step 18-21 The truck delivers empty containers to Depot. The Depot Operations raises an EIR, which contains information on container particulars and status to Land Transport Operations. When there is any damage, the Depot Operations sends repair estimates to the concern carrier, stating description of damages and cost estimates via CEDEX. Upon obtaining repair approval, again through CEDEX, the containers are repaired and cleaned within the approved cost. The Depot Operations finally updates the carrier on the status of available and damaged containers via CEDEX or BOXNET. As Asia-Pacific region is a proficient exporter, the movement of containers in this region is imbalanced. Asia-Pacific region deals with lots of empty containers as well. Appendix 3 provides the information and physical flow for importation, exportation, transshipment and empty container movement in PSA.

References:
[1] [2]

Industry data Model (Export Sea), Logistic Information System (LIS) Project Industry data Model (Import Sea), Logistic Information System (LIS) Project

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5.

Sea Cargo Technologies

Studies revealed that only 20% of the goods moving cost are spent on the actual transportation. The remainder is spent on physical interfaces and soft services. These outlays are mainly for information management and transaction cost. Experts believe that unless these key cost categories are reduced, the shipping industry will not become more profitable. In addition, the logistics operating system should lay more emphasise on user involvement and closer customer interfacing to ensure a greater efficiency. More sophisticated use of technology in sea cargo system is the solution to accomplish these needs. Information Technology (IT) offers instant access to information that can be immediately used to handle the port and shipping industry management and integrates a much user involvement in the system. 5.1 Importance of IT in Sea Cargo System

Basically IT plays a key role in all major sea cargo players, namely the port operators, shipping lines, freight forwarders, shippers and consignees. The most palpable benefit here is the cost reduction; both transaction and documentation cost reduction for all parties. The potential total saving by the effective use of e-logistics technology is large and can result in total cost reductions of 33-50%. By replacing paper, phone, fax, and basic computerised transactional with their inherent time delays, it leads to a reduction in the expensive administrative and marketing overheads. This not only streamlines operations, but also eliminates errors and provides seamless and more accurate information to all key players and the public. All parties will be able to track the progress and condition of the containers whereabouts at any time, anywhere. This boosts user involvement and assures their efficient integration into the decision chain in logistics management. 5.2 IT Systems in Ports

Effective application of IT enables a port to achieve superior. Real cost savings, fast, secure and much reliable services using the Internet are available to automate the procedures involved. Especially to the shippers, receivers and other companies using the port, it allows free flow information about their containers at any time. Port Community System is a computer system incorporating an entire port and all the companies involved. With this system, information about the containers in the port is made more accessible to all related players. It often includes routing of EDI (Electronic Data Interchange) messages between organizations in the port. For example, notifications to customs and information on container details on a ship, container location, vessel arrival and departure times are all exchanged among the parties. We will now focus on some IT developments in major ports with a brief case study of the Port of Rotterdam, Hong Kong Port and Singapore Port.

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5.2.1 Port of Rotterdam Traditionally all vessels calling on the Port of Rotterdam are required to register with the Rotterdam Port Management, reporting on each vessel arrival and departure, and also dangerous substances they may be carrying. These reports, which totalled to some 220,000 a year was once transacted via post, courier, telephone, fax or telex, but nowadays it is all sent electronically. Port of Rotterdam has developed and still developing an advanced IT system for the entire port. Port CommunITy Rotterdam or better known as PCR is a joint/private venture by companies using the port. This organization encourages the introduction of IT system for the entire port by generating ideas of IT systems, evaluating, implementing and promoting them. For example, electronic reporting in this port guarantees efficient and faultless transaction of vessels movement, dangerous substances and the specification of harbour dues. There are also other electronic systems available in Port of Rotterdam to facilitate all key players involved in the port operations. 5.2.1.1 Cargo Card Cargo Card is a unique method of driver electronic identification introduced by the PCR, essentially to increase efficiency of terminal, depots and transporters. This is a biometric based recognition system, where the driver is identified using a combination of a smart card and a reading of the drivers left hand. Various information, such as biometric data of the drivers left hand and information of the driver and his company are stored in the smart card. Besides that, it also contains information stored temporarily, like the route and driver task details. It is designed such that mistakes when typing driving licence or passport number is impossible as the cargo card automatically displays on screen the data of both trucking company and driver. The following is how a Cargo Card basically works. Before the truck arrives at the terminal or depot gate, the information about a trucks cargo and destination is transmitted to terminal or port system by EDI. When the truck reaches the entrance, the driver uses his Cargo Card to identify himself. The Cargo Card automatically matches the information which has arrived earlier via EDI. Upon the positive identification (the drivers hand characteristics match that stored in the smart card), the system checks the cargo details. If it matches perfectly and everything is in order, he is allowed to take the container into the terminal and given an assigned container location. Similarly when the driver wants to retrieve a container, a final Cargo Card check is carried out at the terminal exit. Here he confirms his status and places his digital signature via a scan of his left hand and can leave the port. The Cargo Card is an authentication and verification system that ensures the container has been through all the required stages, such as terminal reporting, inspections, customs, loading or unloading and sign out. Over 4,000 drivers are already using the card. The use of an electronic gateway system allows the forwarders to optimise their truck usage and operating timetables.

46

5.2.1.2 EDI-LAND The local business community, together with PCR is currently working on EDI-LAND (Electronic Data Interchange LAND-side), a project to streamline data exchange on import and export of containers between various players in the logistics chain. Using EDI-LAND, data is sent electronically on a timely basis (Just In Time). As this system enables companies to receive documents in electronic form and process them immediately, the container handling procedures are started only when the container and the corresponding papers have actually arrived. Uniform Electronic Data Interchange improves efficiency and reduces the risk of mistakes, thus resulting in faster and more accurate transfer of information. 5.2.1.3. PROTECT PROTECT is a system acknowledged by the International Maritime Organization (IMO) as the worldwide electronic standard for the declaration of dangerous goods. Shipping companies, which load and unload dangerous goods in more than one port can declare their dangerous goods to Rotterdam Port Management with a single message through this system. 5.2.1.4 ELO ELO (Elektronisch Loket Overheden or Electronic Authorities Counter) is another system developed, mainly to avoid information overlaps. With this technology, companies only need to offer the necessary information once at a single central point. The authorities involved will then automatically receive the relevant information from the central point. ELO simplifies carriers in the Port of Rotterdam the declaration processes to the various authorities. 5.2.1.5 BICS BICS (Inland Shipping Information and Communication System) is a closed system, which is an initiative by the Ministry of Transport. The information is monitored by Department of Public Works. BICS is used to track the vessel movement through inland waterways in the Netherlands. Inland shippers can pass on information on their vessels electronically to all traffic posts on their way through the Netherlands. In contrast to the maritime phone and IVS90, which were traditionally used for this purpose, registration of information via BICS is far more efficient. By means of BICS, shipper sends the relevant information by computer, once and the information is passed from one traffic post to another, automatically without trouble. Survey reports and figures of the cargo transported by river are also sent monthly to the Central Bureau of Statistics. 5.2.1.6 RODOS The Rotterdam Douane Systeem (RODOS) is an electronic communication exchange system between customs and ship brokers, stevedores, forwarders, shipping agents,

47

terminal agents and others relevant key players in sea cargo system. With RODOS, paper works are eliminated, human errors can be reduced and at the same time streamlines the operation and reduces transaction costs. 5.2.1.7 MISTER MISTER is an IT consulting project, sponsored by Rotterdam for small and medium-sized business. In the MISTER program, the external consultant reviews the port companies communications technology and recommends enhancement possibilities. Port of Rotterdam is now preparing for a new generation Internet through Virtual-Port project. Within this project, PCR and other companies will be able to serve the sea cargo players better by providing a more reliable, secure and faster transaction with larger capacity. The new Internet also offers the possibility to participate in exchange of EDI messages with relative low investments compared to the traditional networks. 5.2.1.8 Port on the Internet The Rotterdam Port Management, together with PCR and Rotterdam Port Promotion Council has involved in a project called Port on the Internet with the objective of stimulating electronic commerce and at the same time, introduce as many port businesses as possible to Internet. AGV (Automated Guided Vehicle), a driverless container moving truck is in use at the ECT terminal and the Delta Sea-Land terminal, Rotterdam. This technology is being developed further. The Port of Rotterdam is also investigating and developing other promising and challenging projects such as Bar-coding systems and VRMO project. VRMO (Vereniging van Rotterdamse Machinale Overslagbedrijve) project is a feasibility study by the Rotterdam Mechanised Transshipment companies, in collaboration with PCR to improve EDI processes between parties in the dry bulk chain. 5.2.2 Hong Kong Port Vessel pre-notification to enter Hong Kong Port is done through telex or fax, 24 hours before the intended entry. The VHF (Very High Frequency) channel is used 4 hours before, to confirm notification before entering Hong Kong water. Agents or masters of any vessels calling at Hong Kong and carrying dangerous goods should furnish the Director of Marine with a dangerous good manifest, not less than 48 hours before the vessels arrival (Section 4 of the Dangerous Goods (Shipping) Regulation). This task is made easy with Hong Kong Ports DGIS (Dangerous Good Information System), an Internet-based system for submitting information about dangerous cargo being transported through the port. Companies can submit their dangerous good manifests, containing such information as general description, packaging number, quantity, position stowed on the vessel to the port authorities over the Internet. The captured manifest information (in DGIS) will be scrutinized and acknowledged within the next

48

working day of submission via fax. With DGIS, Hong Kong Port Authorities are always aware of dangerous goods in their water. The Hong Kong International Terminal (HIT) uses BEA TUXEDO software to operate the terminal, which is written in three layers; Bottom Layer (Oracle Database) stores information about containers and containers movements, Middle Layer (BEA TUXEDO software itself) handles transaction control, messaging generation, security, backup and recovery, performs yard/vessel planning, controls and maintains record of all transactions; Top Layer (communication system) links to the terminal gate, radio, data communications within the terminal, EDI and voice communication with modem access to remote and depot offices. The system has expedited the rate of load and discharging of vessels by 25%, increased peak crane rates by 30% and reduced the trucking turn around time by 20%. Recently, the HKHO (Hong Kong Hydrographic Office) is initiating ENC (Electronic Nautical Chart). It is an interactive digital version of paper charts. The standard of functionality and capability of the ENC conforms to the specification of the international organizations. 5.2.3 Singapore Port Singapore Port is linked to more than 400 shipping lines, 700 ports and 140 countries. Having one of the most comprehensive use of IT application, Singapore Port is able to efficiently serve 60 container vessels and 45,000 TEU per day with 80% transshipment. The Singapore Port IT system is also certified ISO 9001. Among the IT systems being offered by the port are CITOS, Gate System, PortNet, TradeNet, BoxNet and CICOS. 5.2.3.1 CITOS Computer Integrated Terminal Operations System (CITOS) is a container terminal managing system. CITOS integrates all container operations through planning vessel, berth and ship operations, command and control, administration, gate and customer interface system, equipment and manpower. As PSA operates in land-scarce environment, berth and yard allocation, the vessel prearrival planning and container reshuffling is important to integrate and co-ordinate all realtime activities at the terminal. Just before the vessel arrivals, the ship stowage module plans out the optimum discharge and loading sequences to ensure ship stability and correct loading. The deployment of quay cranes, yard cranes and container trucks are optimised. Two hours of job data is provided to quay cranes upon the vessel arrival and the yard space is allocated according to container destination and characteristics. For example, the last to extract containers are stacked at bottom-most from a 9-high stack of containers. For the task of taking containers away from the berth, the Prime Mover Deployment System allocates the best-suited prime movers (terminal tractors). In addition, the prime movers incorporate GPS (Global Positioning System) to report on their positions. Gantry cranes and straddle carriers are allotted to various storage yard blocks by a Yard Crane Deployment System to ensure the containers are lifted off without any delay. An

49

Automatic Position Indication System monitors the yard, updating the database of container location every time a container is stocked and removed. CITOS is a flexible system. Berthing and operations arrangements can be adjusted due to customer amendments or even if they arrive at the port out of schedule. Through CITOS, PSA is able to marshal its resources without effecting its normal operations. Such catch up service during critical circumstances is an aid for carriers to catch up on time lost and keep the schedule on time. CITOSs prediction of possible delays and congestion over the next two hours, and the 24 hours continuous monitoring of operations using closed circuit television, radio and computer systems enables any breakdown or congestions to be cleared up very quickly. Thus it reduces time lost and keeps the customer service uninterrupted. This real-time and paperless system not only streamlines operational process, but also improves productivity per crane. In 1997, CITOS-I, a suite comprising operation and planning system was introduced to support and facilitate the overseas container terminal operations. CITOS saves manpower and at the same time performs higher asset utilisation. With the implementation of CITOS, PSA experienced an important increase in operation efficiency and cost reductions which has won several national and international level awards. 5.2.3.2 CICOS Computer Integrated Conventional Operations System (CICOS) integrates ship planning and godown operations at Pasir Panjang Wharves, PSAs main terminal for conventional and non-containerised cargo. Similar to the CITOS system, it handles berth and yard planning. A central computer controlled gate system has also been integrated to this system to facilitate conventional operations. Terminal staffs can supervise the operation through CCTV network, voice telecommunication network, planning systems, hand-held terminal and self-service terminals from a central room and they will be alerted on any operational anomalies, which will be displayed at the room. 5.2.3.3 Gate System The Flow-Through Gate System (FTGS), a high-tech fully-automated and hassle-free gate system in PSA is an advanced integral module in CITOS that interfaces with the hauliers entering the PSA Terminal. It allows speed gate clearance, where trucks can pass through PSAs checkpoint within 25 seconds since 1998, compared to 5 minutes in 1988. Besides eliminating congestion during peak hours, the system has increased the gate capacity by more than 50%. The Gate System is capable of handling over 8,000 container trucks daily, with a peak intensity of 700 trucks per hour. About 85% of the containers are processed within 30 seconds of arrival. It helps the freight forwarders and hauliers to maximize their round trips to the port and increase their revenue per truck. The FTGS uses Container Number Recognition System (CNRS) at the terminal gates to expedite the container flow into the port. The system automatically reads the identification number on the side of the container and it is compared against the number submitted in the shippers declaration to the port authorities, which is already received via EDI. The FTGS

50

also applies Radio Frequency (RF) Technology through transponders tagged to the freight forwarders truck. RF contactless cards are used to perform authorization or identification check of drivers passes. Containers are allowed to enter only if all details match perfectly. A Wireless Paging Facility is developed to relay information such as notification of the assigned location for depositing and collecting containers to freight forwarders on the move. Containers and truck weight will be captured by the auto-activation of the weigh bridge. As CNRS can detect and rectify errors in declaration, if any, this method assures greater security for containers. 5.2.3.4 PortNet The Electronic Communication System or PortNet is a paperless communication and information network between shipping lines, freight forwarders, shippers and government agencies. The system facilitates end-to-end workflow which includes online booking for resources, e-fulfillment of port services, facilitation of billing processes and linkage to trade and government agencies. The auto-task scheduler for hauliers is carried out via an Application Service Provider (ASP) model. The system also provides communication channels among various parties in the shipping and port authority, including fright forwarder, hauliers, shippers and shipping lines. As PortNet has been moved to a Windows environment and referred as PortNet-On-windows since 1999, it enables a more userfriendly communication through Internet and e-mail and a closer customer or user involvement. Facilities like vessel inquiries, pilotage ordering, tugboat services and downloading of billing information are available at PortNet. Carriers tasks of vessel arrival confirmation, cargo declarations submission, planning and manifests, sailing/berthing schedule inspection and container status monitoring are made easy via this system. They can even release containers to the port operations by PortNet. Shipping Line Throughput Analysis Report (STAR) is a feature of PortNet designed for the shippers. STAR provides information of overall port performance and cost, such as vessel throughput, port and cargo expenses, transshipment and terminal performance and dwelltime reports. This enables shippers to monitor the activities and allows the shipping line to take appropriate measures to cut cost area, thus improving their performance. A financial transaction system called Financial Electronics Data Interchange (FEDI) is used for billing and payment. Companies can use this window-based application to simplify all their financial transactions. FASTCONNECT is another beneficial system developed under PortNet for shipping lines. Within FASTCONNECT, the amount of documentation needed is trimmed, especially to arrange for container transshipment between two different carriers. It can be done within two hours. There are some 1,500 companies, including shipping agents, hauliers, freight forwarders and shippers subscribing PortNet and the system manages more than 10 million electronic transaction each month. It charges only S$2.69 processing fee, as opposed to S$12 for the hardcopy application.

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5.2.3.5 TradeNet TradeNet is integrated with PortNet. As a TradeNet customer, one will require a communication software to be linked to PortNet. It is an EDI system under the Singapore Trade Development Board, used in application to all relevant government agencies. Trade documents such as permit application, declaration papers, and cargo clearance can be submitted simultaneously to Customs, Excise Department or other relevant agencies for processing. The electronic system thus expedites the import and export processes. As an added value network to TradeNet, a data management system called TradeNet Plus will be implemented in 2001. Besides eliminating complex paper documentation and reduce data re-keying, TradeNet Plus will further expedite message interchange to facilitate import and export process with all government agencies. It will also facilitate cargo movements for billings and payments. 5.2.3.6 BoxNet PSA has implemented BoxNet mainly to improve the co-ordination of activities between the port terminals and hauliers. Within the system, hauliers can retrieve information of estimated berthing times and completion of discharge of vessels. Export schedules and export bookings can be sent and retrieved using EDI with BoxNet. This information provides inputs to their own resource scheduling system, which electronically schedules, plans and allocates prime movers, chassis and drivers. As the system offers efficient allocation of hauliers job, every haulier trip into and out of container terminal is filled with container, avoiding wasted trips. BoxNet also provides easier tracking of truck movements to streamline hauliers activities with the port operators. 5.2.3.7 CEDEX Some of the data elements used in transaction relating to freight containers are container damage, component, repair and location. PSA Depot System uses the Container Equipment Data Exchange (CEDEX) codes to represent this information. 5.2.3.8 EZShip EZShip is an Internet based system facilitating the transshipment processes of the shipping lines. Within the system, shipping lines can complement their in-house IT system and it enables seamless integration between their font and back-room operations in Singapore and regional offices. It is designed to make transshipment operations more efficient, producing higher productivity, lower cost with greater transparency for shippers. 5.2.3.9 SlotMax SlotMax is a highly automated and user-friendly system created for shipping lines to trade empty vessels and to maximize the utilization of ships. To address the huge structural imbalances of containers movement worldwide, SlotMax is designed in a way that it

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matches the surplus vessel spaces available with the need for vessel spaces to carry either empty container for re-positioning or laden containers. The neutral Internet exchange system gives the power to shipping lines to decide on their preferred list to exchange slots with. This information is electronically integrated with PortNet to perform an optimised ship planning solution. 5.2.3.10 BoXchange BoXchange is another neutral Internet system designed to match supply and demand of empty containers among the shipping lines. Shipping lines, container owners or container leasing companies who are facing empty container shortage or wants to exchange empty containers can depend on this customer-sensitive and user-friendly exchange system to manage their empty containers. Similar to SlotMax, BoXchange allows the user to choose their preferred list of exchange. 5.2.3.11 GEMS Shipping lines can monitor and keep record on information of their worldwide empty container stock at container terminals, on-dock depots, external depots, inland depots and off shore sites using the Global Equipment Management or better known as GEMS. GEMS is an Internet-based e-solution linked to PortNet and BoXchange, which works to help shipping lines manage their empty container inventory or stock. To address empty container imbalances, GEMS can determine the empty surpluses and deficits for a particular shipping line and automatically send the information to BoXchange, which assists in the exchange of empty containers. Besides facilitating the fulfillment of empty container maintenance and repair services to all PSA linked container terminals or any depot that uses the application, GEMS also keeps and updates a registry of shipping lines static and dynamic empty containers information. 5.3 Use of IT in Shipping Lines

Shipping Industry has started utilising Internet B2B Exchanges, a marketplace where many buyer and sellers post buy and sell bids to make trades at dynamically determined market prices. Both shipping lines and shippers are moving towards e-commerce in all dealings. Besides expediting business procedures without errors, e-commerce reduces transactional inefficiencies, cuts cost of operation such as retrieving information about shipment, making bookings and handling documentation, simultaneously grows revenues. With e-commerce, shipping lines can handle routine enquiries and booking without involving their sales representatives. All documents can be received electronically, captured and processed directly into the IT system seamlessly. Apart from that, the IT system also facilitates the shipping lines by providing weather routing, and managing their fuel, water, ballast, ship stability management electronically. The shippers too benefit from the e-commerce application. They can access any shipment information electronically 24 hours a day without depending on other parties.

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Here are some e-commerce services offered by the selected container carriers as in Table 1.3. Among the common online services offered by carriers are Vessel Tracking, Vessel Schedules, Online Booking and Shipment Tracking. As the carriers provide a secured site, most of these services require user identification and password. Hence, users or customers have to register online before they could access their sites to retrieve up-to-minute business information. 5.3.1 E-Booking

The E-booking or online booking request is made available 24 hours a day. This booking channel allows shipper to request for a fresh booking and save any unlimited number of favourite booking. Within the e-booking, shipper has to select the cargo from the commodity list provided, specify the size and type of container, and enter port of receipt or delivery on the latest departure and arrival date. Previous bookings can also be referred and reused when needed. Booking status viewing is also available. Maersk-Sealand, Hanjin, APL and Hyundai are among the carriers offering such service. Maersk-Sealand uses digital certificate (an electronic authentication system) to prove ones identity and enable access to protected area to make booking online faster and safer. The shipper suggests the most appropriate vessel sailing from global schedule system displayed on screen and finally save all information. The shippers request will then be transmitted to the local Maersk-Sealand office, where confirmation of requirement together with the booking reference number will be sent back to the shipper. 5.3.2 Cargo Tracking

Some carriers have the facilities for online Cargo Tracking. Customers can track the routing and status of their cargo by entering Booking Reference Number, Bill of Lading or Container Number. Information such as current location, status and route of shipment, details on local time of arrival and departure from the final port and container list for the shipment can be obtained through the system. Besides providing status of the active shipment from origin to destination, APLs HomePort has an additional feature that alerts on exceptions when the shipment has been at certain statuses such as at the origin, load port, discharge port and destination longer than the specified time period. Its system also allows diversion request to change the shipment destination. The Personal Trace list can be activated if the shipper wants to save a special list of Bill of Lading or Container Number for tracing purpose. MOLs online Navi-Gator system for Cargo Tracking is currently available for Trans-Pacific, Trans-Atlantic and America services. A P&O Nedloyds vessel whereabouts can be tracked by selecting a vessel name from the list in their Vessel Tracking system. All vessels owned, operated, chartered or even vessels on which P&O Nedloyd has slot charters are listed for tracking purpose at any time. It depicts route image and information on current status, recent and next port of call of the indicated vessel. CMA-CGM updates data on cargo routings twice a day via Electronic Container Tracking module in Agent Information Management System (AIMS CMA-CGM Software) to help customers obtain status of a shipment. Hyundai offers Inter-Ports Vessel Monitoring. This system enables the customer to first view the specific route selected from the dropdown box. Customers can further check on vessels sailing status and schedules from the routes required. Long terms schedule for each port can also be viewed.

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5.3.3

Vessel Sailing Schedule

Similar to Cargo Tracking, Vessel Sailing Schedule is available online in all carrier Internet services. Vessel Sailing Schedule displays timetable indicating vessels departure, arrival and transit times at the relevant ports together with the date and time scheduled. This online service enables the customer to search for their real time container shipment voyages. Customers can check the schedule by selecting the appropriate Continent, Port of loading and destination, Region or Calling Port with specific date range. The required input detail varies upon carriers. For Hanjin, Calling Port is more appropriate to use when searching for multi port schedules or inbound schedule. Maersk-Sealands Transport Routing searches for the earliest departure or latest arrival based on date, country and port of load and discharge as required by customer. In the case of feasible schedule that matches their requirements, the transport routing can then be viewed by selecting one or more of the listed container types. APL offers schedules for all its trade lanes and routes, including Intra Asia routes. Its Quick Routes helps customers to save any number of favourite port pairs for easy access. MOL also provides sailing schedules, which can be accessed through Interactive Schedules, Printable Schedules and Spreadsheet Schedules. 5.3.4 Bill of Lading

Online Bill of Lading contains proof copies, which can be checked prior to issuance of the original Bill of Lading. It minimizes re-processing, reduce paper flow and eliminate telefaxing and therefore reducing cost and processing hour between carriers and shippers when changes occur. Maersk-Sealand, Hanjin, APL, NYK, MOL and Hyundai handle such service electronically. APL controls its entire Bill of Lading process through Home Port. This service facilitates them to submit, review, revise and print their Bill of Ladings within 30 minutes of release online. 5.3.5 Notices and Reports Maersk-Sealand, Hanjin and some other carriers send online Arrival Notice to their customers. Transit report and estimated arrival date for shipment with cargo information can be retrieved from Hanjins online service. While NYK enables its customers to review Shipment Summaries, cut-off and availability information of NYK ships in some selected cities electronically, MOL also provides Incoming Shipment Reports for North America imports. Besides terminal information and cut-offs, Hyundai has The Equipment Specification, which gives a detailed online specification (weight, cargo, width, height, length, cubic) of all containers available at Hyundai, such as the dry freight container, refrigerated container, open top container, garment container and many more. APLs Quick Report can transform shipment data into useful information reports. It can generate automatic reports and allows shippers to select standard reports, create custom, modify report for example filter, sort and rearrange columns. Shippers can decide on report delivery via print out, download or even schedule to send by e-mails whenever (daily, weekly or monthly) as required.

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5.3.6 Tariff Rate Request Following the deregulation imposed on 1st May 1999 (please refer Sea Cargo Issues), carriers now provide information on tariff rates, tariff rules and tariff list for all trade lanes to and from United States. Details of trade lane origin, destination, commodity, container type and size, shipping date, rate basis and other relevant fields are needed to view the updated tariff details. Shippers and consignees can also search for Essential Terms in trade lanes to and from United States by keying in Service Contract Number. APLs customers can further request for any international trade lane through its International Rate Quote via e-mail. 5.3.7 Finance Some of the carriers proffer online services for financial management. Maersk-Sealand, for instance uses e-statement, an online service for access to all outstanding freight and charge details. Sorted in columns of Bill of Lading, shipper reference, first vessel and receipt, it states total outstanding amount. Customers can click on any of this column to view the full break down of the detailed amount outstanding. They too can check on the specific rates of exchange applicable to their shipment and invoices by submitting their Bill of Lading number electronically. By doing the same thing, Hyundai customers can find for detention and demurrage charges for inbound and outbound shipment. APL has a special finance channel to manage both payable and receivable payment. Statement of Account, the payable feature displays the charge details by Bill of Lading or invoice in both USD and local currency, and the status of the invoices is monitored via Supplier Invoice, the APLs online receivable feature. 5.3.8 Other Services In early 1999, APL introduced a container Internet service called Home Port. Besides the Home Port services discussed above (Shipments, Quick Report, Bills of Lading, Booking, Schedules, Rates and Tariff and Finance), the one-page customisable web portal keeps its customers well informed about the current shipping news and new services offered by them via Industry News channel. To assist its costumers well with shipping or technical questions while conducting a transaction in Home Port, it also provides 24 hours online Instant Help through real-time dial-text message. APL now offers chat facility with its customer support representative to assist its customer. Cosco America provides some electronic automated system to facilitate the US Customs in its export and import processes. Among the automated systems are, Custom Automated Clearinghouse (ACS)- a simple electronic payment option that allows participants to pay Custom fees, duties and taxes; Automated Manifest System (AMS)- a cargo inventory control and release notification system that expedites cargo flow and entry processing and also provides customers with electronic authorization to move cargo prior to vessel arrival; Automated Broker Interface (ABI)- a voluntary programme available to brokers, importers, carriers, port authorities and independent service centres, that enables qualified customers to file required import data electronically with Customs and Automated Export System (AES)- an electronic network that permits US Customs to file the Shippers Export

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Declaration (SED) and the ocean manifest information directly. These automated systems accelerate the export and import processes within Cosco and the US Customs. Hyundai customers can observe the selected service pairs of train schedule in DST (Double Stack Train) Schedule and view Hyundai Interposal Hubs, which indicate the East, West and North Bound routes via Intermodal System Map. Hyundai too offers a very comprehensive Dangerous Goods and Special Cargo Regulation, and information on Asia local road weight limitation. 5.4 Online Information Services

There are a number of information services available to streamline sea cargo activities. Interbox, Trade Compass, Compare Data, Greybox and Greyslot, Freightgate, Ocean Wide Marine Network, Sealink Information Technologies, Synchronet and E-Transport Rates are among them. 5.4.1 Interbox Launched in April 1999 by International Asset System, Interbox works based on clientserver format using Oracle 8 Database. It is a neutral and cost-effective e-trading system that enables container owners, operators and transport service providers to search and transmit surplus and deficit containers. Carriers sell unsold slots at reduced rates for repositioning empty containers while maximizing their vessel slot capacity. The system helps the registered members to reduce container fleet management costs and improve asset utilization. After a successful login, users type in their requirements. Search and Post for instance needs the user to indicate the location, possible destination for dropping off the containers, range of acceptable dates, container type and condition. They should indicate type of transaction (interchange, one way, lease or empty move) before they could search for boxes needed or offered by others. The empty move is now replaced with SlotXchange, an online marketplace for vessel slot capacity. Container owners and operators who wish to move empty containers can search and post their need here, even at last minute. To get the best price for repositioning via Interbox, users interested in supplying and picking up containers can negotiate on the financial incentive. Other online transaction such as billing of the containers, sending invoices to the lessee and collecting the money can also be done through Interbox. 5.4.2 Trade Compass Trade Compass is an international commerce providing various services and information to traders. Encompassing sea cargo, it offers online sailing schedules, cargo tracking, rate matching, ocean transit analyzer and denied parties screening engine. Users can select any appropriate trade lanes from five options (to/from North America, European Union, Asia & Australia, South America & Caribbean or Africa) to view up to date vessel departure and arrival information. Trade Compass Ocean Cargo Tracking

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traces the latest status of a shipment sailing with APL and OOCL. In order to retrieve this information, users have to aptly enter the Bill of Lading and submit online. RateMatch, is a feature in Trade Compass that enables the shippers to compare the shipment rates between different carriers before deciding on the best bid. The online tariff information service has three exclusive options to search tariff rates; Commodity Keyword, Individual Rate (TRI) or Trade Lane. Different inputs are needed to access each option. Trade Compass uses XML (eXtended Mark-up Language) format in operating tariff information to develop and expedite a complex tariff search system. Transport buyers can determine the best routing with the most appropriate carrier and service for their container shipment via the subscription of Ocean Transit Analyzer. They can retrieve the fastest transit-times, arrange for just-in-time delivery schedules and retrieve details of carrier space sharing activity. Using the Ocean Transit Analyzer, user can compare different carriers prompt schedule reliability by checking their on-time performance before booking a service. Dealing with illegal foreign business parties will lead to serious criminal penalties by the US Government. Denied Parties Screening Engine (DPSE) is therefore a latest feature included in Trade Compass for U.S. persons to screen against the list of foreign companies and individual denied parties. U.S. persons may include overseas companies owned or controlled by a U.S. person and in some instances, agents of U.S. companies. By entering specific words such as name, company name or country, the DPSE system searches a unified database containing the name and identifies them, if any. 5.4.3 Other Online Information Services One way to address the container imbalance is by providing ocean carriers access to information about each others empty containers. Similar to Interbox, CargoExchange.Net and Greybox and Greyslot function based on this concept. The CargExchange.Net unites buyers and sellers of containerised cargo space to optimise asset utilization. Greybox and Greyslot facilitate shipping lines to match each others container requirement using information received via telephone, fax, Internet or EDI and alert customers by e-mail of potential matches. By moving empty containers this way, the container repositioning cost is reduced. Established in 1996, SynchroNet is another Norwegian company, serving similarly as a broker or agent between carriers to address the container imbalances. It receives updated information of container supply and demand weekly and monthly, and uses a complex program to match them. Using the carriers secured locations on SynchroNets Internet, carriers view the matches and make their own arrangements for the container repositioning. The SynchroNet is paid some transaction fee by both parties for successful matches. SynchroNet has further introduced AsiaMax Service to help short-sea operators and major trade lane carriers in the Pacific Rim reduce container management cost and introduced US Overland Service to help international carriers cheaply shift boxes from inland USA. The Electronic Shipping Guide (ESG) is designed to improve the delivery of schedule and contact information. The DOS, Windows and Web-based developed and weekly updated system covers all trade lanes to and from North America, Asia and Australia, and Europe,

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including intra-Europe voyages. ESG allows the user to directly compare and evaluate voyages by date, carrier, departure and arrival port before a shipment booking. As this schedule service is sponsored by shipping lines, all details of their locations, agencies and phone numbers are also available here. Shippers auction off a single shipping request to many service providers. Service providers place their bids for the selected and profitable request. If both the requirement and offer meets and the shipper accepts the bid, the trade is confirmed. This is how GoCargo, a secured bidding system works. Besides slashing negotiation cost for shippers, GoCargo increases service providers sale and maximizes their asset utilization. Similar to GoCargo, CargoNet also identifies shipping opportunity between the shippers and towers. By advertising their needs to ship a cargo or fill up an empty slot, both the parties can engage in business and increase sales while expanding their network services. Key details of shipment to be shipped and towed including the registered users contact number is submitted in the record for business dealing. Enterprise Ocean Shipping Software (ITABS++) is developed by Interlink Transport Technologies, mainly to support the carriers within the shipping industry. This software can assist them in overall ocean shipping procedures such as shipment booking, import and export processes, terminal operation, electronic container reservation, intermodal, documentations, freighting, credit and collections, equipment control and even in sales and marketing. 5.5 Electronic Documentation Management

5.5.1 Bolero Bolero is a neutral messaging system that allows importers, exporters, banks, customs, freight forwarders, shipping lines and shippers to communicate electronically to handle ecommerce for international trade and ocean shipping. As Bolero carries legal status in all electronic document exchanges and transactions, it serves users with high certainty. Trade documents sent via Core Messaging Platform (CMP) are secured using digital signatures and encryption. The Bolero Rulebook is a contract that binds and ensures all users to agree upon Boleros common rules and services. With the legal rules in Rulebook, users can transact electronic Bill of Landing (Bolero Bill of Lading) with poise. There are a lot more features in Bolero. BoleroXML is introduced to create a simple method to enable the trading partners exchange data and document over the Internet without bilateral data interchange agreement. With the ability to distinguish original document with the forwarded document, this paperless document exchange system assures users on document originality. Its unique messaging protocol guarantees deliveries of all transmitted messages and documents. Senders will receive warning from Bolero if a document is not received by its counter-party. Message transmission, accuracy and retention are all guaranteed by Bolero.

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Among the initial service offered by Bolero is the Bolero Bill of Lading. To further underpin the Bolero Bill of Lading, an application called the Title Registry was introduced for recording and transferring the rights and obligations contained in a Bolero Bill of Lading. Besides preventing unauthorized amendments, it also helps in internal Bill of Lading auditing. The Title Registry together with Bolero Bill of Lading provides a complete functional equivalent to the faultless paper Bill of Lading. Basically the port and terminal operators can use Bolero to communicate on bookings, invoices, vessel manifest and berth control, while the logistics operator can use the system for communication in freight bookings and confirmation, invoices and custom clearance. Apart from Bill of Lading, carriers can expedite communication on vessel bayplans, container arrival notice, transshipment container list, container lease requirement, freight invoices, sublease and interchange arrangements and custom documents via Bolero. It leads to a faster turn round of vessels, improves dwell times and increases internal systems efficiencies and customer service. Importers and exporters benefit from the accelerated logistics processing and reductions in operation cost. Custom agencies too can use this system to handle custom clearance, capture of duty and quota control. Communication in letters of credit, claims and risk intermediation product will be made easy for banks and other financial institution using this system. Generally, Bolero offers a faster and more transparent service to the key players in a sea cargo team. 5.5.2 TradeCard Owned by the Full Service Trade System Ltd. in Bermuda, TradeCard is an online service using XML document model. TradeCard is used in international trade and document transaction. Exporter, importer and freight forwarder have real-time access to the information they need to keep transaction on schedule. Shipping line activities is currently not incorporated in the system. TradeCard is available for transactions between Hong Kong, Korea, Taiwan, Singapore, Canada and US. This trading network will be expanded to Japan, Western Europe, China and Latin America in 2001. Using TradeCard, buyers and sellers can seamlessly create, digitally approve and amend Purchase Orders. Users can issue payment, create and send Invoice and Packing List, receive Payment Notification and Assurance of Payment securely. Negotiation of contract terms, approval of discrepancies and compliance monitoring are possible using the B2B marketplace integrated system. It further offers access to inspection services and cargo insurance, all electronically. As the documents are exchanged between parties, the system makes thorough checks and detects fraud, if any, in transactions. 5.5.3 E-Transport Two useful features in E-Transport are FreightView and FreightLink. These features help putting together, communicating and managing the documentation involved in container shipping. FeightLink is a system, works rather similar to FreightView, that manages shipment information among trading partners. Similar to other electronic document managements, these systems allow carriers, shippers and intermediaries to electronically create, amend, transmit and even detect exceptions in

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booking request, booking confirmation, purchase order, shipping order, service contract, Bill of Lading, bank documents, delivery notice and payment documents. As this is a flexible software, user can change the underlying rules of the system if any there are any changes in their existing business process. For example, FreighLink will automatically route respective information to appropriate departments. Online negotiation between carriers and shippers to create service contracts and file tariffs with the carriers database and government agencies can also be handled using this system. 5.6 Global Positioning System

Started in 1973, the Global Positioning System (GPS) is a satellite-based radionavigation combined with mapping software system developed and deployed by the United States Department of Defence. It can be used by land, sea and airborne operators on or near Earth, 24 hours a day, to determine their three dimensional position, direction, velocity, altitude and time in all weather. In ocean shipping, GPS is being very useful in navigation and real-time tracking system to provide customers with accurate details on cargo status and location. This technology allows improved positioning to track aboard vessels and land transportation such as trailers, freight wagons and similar platforms, thus enabling them to monitor the status of their freight containers at any particular moment. Besides determining vertical location (distance from the ellipsoid) of vessel, GPS can be used to measure and predict vessel SAS (Squat And Settlement), which are the two important balancing components in determining under keel (vessel bottom) clearance. Being able to trace when component shipment will arrive and where they are within the factory ground, the manufacturer can better operate the Just In Time assembly philosophy. The accuracy of GPS has recently been improved. During the implementation of SA (Selective Availability), the built-in degradation of GPS signals, civilian receivers were made less accurate than military units. But when the SA was officially turned-off on 1st May 1999, the GPS accuracy for civilian users was improved from within 100m to within 20m. The accuracy was further developed to within 10m with DGPS (Differential GPS), a regular GPS with an additional correction signal. There is also an advanced navigation systems for civilian, which is even more accurate. WAAS (Wide Area Augmentation System) is a satellite system that transmits differential GPS correction data to all specially equipped GPS receivers. It reports a position of 2.5m within the coverage area. 5.7 Electronic Container Seal

Though the traditional container seal offers reliable protection, the Electronic Container Seal (ECS) is a new development which has many advantages for shippers, freight forwarders, port, railroad and warehouse operators. It is mainly because the reusable electronic container seal can record the exact time, date and duration of every opening and closing of the load seal. ECS is an active wireless battery-powered transmitter system that uses Radio Frequency Identification (RFID) for communications between the container seals and the readers.

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Some ECS uses locks and keys containing electronic ID chips with unique individual coding while the others use electronic security cards. With this feature, the control system can easily identify who gains access and when, even while the cargo is in transit. The system also has the ability to read several container seals from the central location. The ECS increases security of a cargo besides eliminating physical checking of the container. It speeds up clearance of containers by Customs, thus expediting all operations. Reference:
[1]

Containerisation International, November 2000

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6. 6.1

Sea Cargo Issues Ocean Shipping Reform Act of 1998 (OSRA)

The Ocean Shipping Reform Act of 1998 or OSRA is a new US legislation designed to amend the Shipping Act of 1984. OSRA was signed into law by President Clinton on October 14, 1998 and went on effect on May 1 1999. The key purpose of OSRA is to promote the growth and development of US exports through competitive and efficient ocean transportation by placing a great reliance on the marketplace. It deregulates the international ocean shipping business. Among the revamped structures of OSRA are: Confidential contracts: No more open rates. Prior to OSRA, shippers and carriers are now allowed to negotiate and reach service contracts in which rates, discounts, charges, inland service points, service commitments, liquidated damages and other pricing terms will be confidential. Certain terms, unrelated to pricing, such as commodities, port pairs, contract duration minimum volume commitments will still be available to the general public via the Internet. Carriers no longer will be required to provide similarly situated shippers with me too contract terms. In addition, OSRA permits contract among combinations of multiple shippers and carriers in associations and conferences and other groupings. The major benefit is that shippers will be able to keep details of their service contracts with carriers, secret from competitors. As shippers will not be able to compare rates with other similar shippers as a strategy to negotiate contract terms, shippers are more likely to enter global relationship with carriers. Tariff Filling with FMC eliminated: Carriers need not file tariffs with the Federal Maritime Commission (FMC). Instead, they must publish their tariff information via the Internet or other media in an FMC-approved format. OSRA require the FMC to continue enforcing tariff rates. NVOCC/Freight Forwarders: Under the Shipping Act of 1984, only freight forwarders and not NVOCCs (refer to Glossary) must be licensed by the FMC. Under the new law, both freight forwarders and NVOCCs are lumped into one definition called the Ocean Transport Intermediaries (OTI) and it requires every OTI to be licensed by FMC and have a bond or other proof of financial security on file with the FMC. In the past, NVOCCs could participate in contracts as the contract shipper or as members of shippers association. But now OSRA prohibits NVOCCs from offering and participating in service contracts with shippers. NVOCCs will still be able to offer time/volume arrangements, but the rates must be published in the NVOCCs tariffs. To skirt such restriction, NVOCCs form shippers associations, which are permitted to enter into confidential service contracts with carriers. Some large NVOCCs are already taking this step. Discrimination prohibited: Ocean carriers can differentiate more between customers but they are prohibited from discriminating against middleman, such as NVOCCs and shippers associations.

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There are still some pieces of legislation which are not amended. For example, ocean carriers conference retain their antitrust immunity and they must continue to file their agreements with FMC. Besides that, the FMC also retains authority to monitor carriers activities and investigate possible anti-competitive actions. As a result of OSRA, shippers and carriers are now paying closer attention in analysing rates and transportation costs. The introduction of OSRA has undoubtedly changed the nature of the US shipping trend. Though there are some parties for or against the reform act, the new law is sure to have big impact on every link in the sea cargo chain. 6.2 Container Imbalance on US Trade

During the currency crisis in Asia, the export and import ratio was unbalance; more goods were exported than imported. Consequently, the Trans-Pacific trade between Asia and North America became busier one way (Asia to US) than the opposite direction. Though the Asia economy recovers, but the ratio of container imbalance still remains substantial. Similarly, there were more outbound containers from Europe to US than inbounds. As the consequence, the US container terminals are overflowing with empty containers! The imbalance in container flows had resulted in a container repositioning problem which burdens the carriers, shippers and container leasing companies with enormous cost. Below is a monthly statistics of container cargo movement in a Trans-Pacific trade.
ASIA Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1998 387,614 356,593 425,186 430,780 437,258 477,290 502,403 506,214 510,389 520,233 501,928 440,985 1999 432,652 450,735 454,780 490,080 531,896 528,569 533,662 560,014 542,798 562,576 560,631 490,885 US Growth 11.6% 26.4% 7.0% 13.8% 21.6% 10.7% 6.2% 10.6% 6.3% 8.1% 11.7% 11.3% 2000 511,501 501,880 508,534 548,819 592,213 597,510 642,940 666,765 640,373 Growth 18.2% 11.3% 11.8% 12.0% 11.3% 13.0% 20.5% 19.1% 18.0% 1998 223,566 219,242 254,376 234,146 233,036 232,575 214,235 208,560 214,073 US 1999 223,805 236,366 258,267 245,883 240,082 243,573 226,369 223,828 235,797 264,030 257,964 262,798 ASIA Growth 0.1% 7.8% 1.5% 5.0% 3.0% 4.7% 5.7% 7.3% 10.1% 12.0% 7.3% 4.5% 3.7% 1,589,152 2000 253,107 262,072 280,650 258,159 273,306 261,858 250,122 269,732 257,709 Growth 13.1% 10.9% 8.7% 5.0% 13.8% 7.5% 10.5% 20.5% 9.3% -100.0% -100.0% -100.0% 9.7%

-100.0% 235,642 -100.0% 240,468 -100.0% 251,453

Jan/Jun 2,514,721 2,888,712 14.9% 3,260,457 12.9% 1,396,941 1,447,976 Jan/Sep 4,033,727 4,525,186 12.2% 5,210,535 15.1% 2,033,809 2,133,970 Jan/Dec 5,496,873 6,139,278 11.7% 5,210,535 -15.1% 2,761,372 2,918,762 Jan/Mar 1,169,393 1,338,167 14.4% 1,521,915 13.7% Apr/Jun 1,345,328 1,550,545 15.3% 1,738,542 12.1% Jul/Sep 1,519,006 1,636,474 7.7% 1,950,078 19.2% 0 Oct/Dec 1,463,146 1,614,092 10.3% 697,184 699,757 636,868 718,438 729,538 685,994 784,792

4.9% 2,366,715 10.9% 5.7% 2,366,715 -18.9% 3.0% 4.3% 7.7% 7.9% 795,829 793,323 777,563 0 10.8% 8.7% 13.3% -100.0%

-100.0% 727,563

Table 6.1: Monthly container cargo movements in TEU (Asia/US Trade)-Jan 1998-Sep 2000[1]
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Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan/Jun Jan/Sep Jan/Dec Jan/Mar Apr/Jun Jul/Sep Oct/Dec Table6.2: Imbalance ratio between Trade [1]

1998 1999 2000 57.7% 51.7% 49.5% 61.5% 52.4% 52.2% 59.8% 56.8% 55.2% 54.4% 50.2% 47.0% 53.3% 45.1% 46.1% 48.7% 46.1% 43.8% 42.6% 42.4% 38.9% 41.2% 40.0% 40.5% 41.9% 43.4% 40.2% 45.3% 46.9% #DIV/0! 47.9% 46.0% #DIV/0! 57.0% 53.5% #DIV/0! 55.6% 50.1% 48.7% 50.4% 47.2% 45.4% 50.2% 47.5% 45.4% 59.6% 53.7% 52.3% 52.0% 47.1% 45.6% 41.9% 41.9% 39.9% 49.7% 48.6% #DIV/0! West Bound and East Bound (WB/EB) in Asia/US

The statistics above indicates that the Asia-US container flows are more imbalanced in recent years. The average container ratio (E/B:WB) in 1998 and 1999 is 20:10 and 21:10, respectively. This imbalance ratio has widened further to 25:10 in the third quarter of 2000. Repositioning empty containers back to Asia can incur substantial cost, for example it cost around US$300 to US$500 per container, but sometimes the cost can also run up to US$800. In past years, the Trans-Pacific carriers have lost an estimated $30 million per week, repositioning empty containers from the U.S. to Asia. One identified way to address this issue is by the utilization of IT based systems, such as Interbox, CargoExchange.Net, Greybox and Greyslot and other similar softwares as discussed in chapter 5. 6.3 Shortage of Container Chassis in US Ports

Chassis is a heavy metal frame with one set of wheels in front and two sets in the rear, used to move containers from place to place. A container locked into a chassis is attached to a truck or yard tractor for local or long-distance transportation. When the US container terminal receives a vast number of containers from Asia, there can be a situation of insufficient chassis to move them all immediately off the docks. The

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critical shortage of container chassis slows down container removal from the terminal and caused congestion in inland storage sites. One solution is to buy more chassis. Another alternative is by imposing free time, - the time containers can be left at a port before fees (demurrage) are charged. For example, any containers that exceed seven days for imports and ten days for exports (including Saturday, Sunday and holidays) in port will carry demurrage charge of US$19 per day for a 20-foot container and US$40 per day for a 40-foot container. The fees will further be increased to US$37 and US$79 per day, respectively after another five days. 6.4 Equipment Imbalance Surcharge (EIS)

In order to offset the cost of repositioning the empty boxes within the US trade, carriers are assessing surcharges, also known as Equipment/Container Imbalance Surcharges (EIS) with different rates for various trades. The surcharge rate for exports moving from Europe (Continent/UK/Ireland/ Denmark/ Finland/ Norway/Sweden) to US is US$250 per container, effective from 15 September 1999. Effective from 1 October 1999, a surcharge of US$150 per 20-foot container and US$225 per 40-foot container will be assessed by shipping lines serving US/South African trade. With effect on 26 December 1999, the US/Australasia trade routes surcharge will be US$200 per 20-foot container and US$350 per 40-foot container. A peak season surcharge of US$150 per 20-foot container and US$300 per 40-foot container will also be implemented for US/Asia trade during the June to November period. These rates however vary within the carriers. 6.5 Megaships

In recent years, container vessels have increased in size from 3,900 TEU containers to more than 5,000 TEUs. Such vessels (with a capacity of greater than 5,0006,000 TEUs) are much larger than the Post Panamax class of ships and commonly referred as Megaships. Generally, mega-shippers prefer megaships as they can use single carriers to provide services to all main trades. Furthermore, larger container carrying capacity vessels will provide a lower cost-per-unit of shipment. Below is a list of Maersk Sealands megaships. Vessel Name TEU Built Regina Maersk 6,000 1996 Karen Maersk 6,000 1996 Kate Maersk 6,000 1996 Knud Maersk 6,000 1996 Katrine Maersk 6,000 1997 Kirsten Maersk 6,000 1997 Sovereign Maersk 6,600 1998 Sally Maersk 6,600 1998 Svendborg Maersk 6,600 1998 Table 6.3: Maersk Sealands Megaships [2] Vessel Name Clifford Maersk Skagen Maersk Sofie Maersk Soroe Maersk Svend Maersk A.P.Mller Caroline Maersk Carsten Maersk TEU 6,600 6,600 6,600 6,600 6,600 6,600 6,600 6,600 Built 1999 1999 1999 1999 1999 2000 2000 2000

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Maersk Sealands first megaship was built in 1996. Maersk Sealands megaships can achieve the optimum speed of 24.6 knots, with the length of 318.2m, width of 42.8m and draft of 14.5m. They are all built in Denmark. All megaships built in 1998 onwards have an increased capacity of 6,600 TEU with a greater length of 347m. OOCL, whose largest ship now is the 5,700 TEU S class will be ready with two new megaships of 7,200 TEU by end 2003. Currently, the Samsung Heavy Industries Co., a Korea shipbuilder claims that it has the ability to build an 8,800 TEU megaships with length of 330m, height of 26.8m and draft of 13m. Megaships with capacity of carrying 12,000 TEU are also expected to be in operation on major trade lanes by the year 2011. As megaships generally have deeper draft of 12-13.8m (40-46 feet) when fully loaded, it would require megaports with at least 50 feet berth depths to physically accommodate them. Megaport also needs other facets to handle the larger amount of containers loaded and discharged by megaships. It includes suitable terminal facilities, expanded terminal infrastructure (more cranes and container storage yards, stronger wharves, rail and railways access) and a superb information system to faultlessly expedite port operations. Unfortunately not all port can accommodate megaships. In US for example, only top 5 of the 15 ports, namely Long Beach, Baltimore, Tacoma, Hampton Roads and Seattle, and those on the west coast have adequate channel depths. Analysts from marine consulting firm forecast that megaships will handle up to one-third of all container ship tonnage by the year 2010. To capture this trade, many ports will have to deepen and widen their existing channels.

References:
[1] [2]

http://www.mol.jp/JE3/e3/hokube/hokube.html http://www.maersksealand.com

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7. 7.1

Proposed Research Projects Contract Planning and Load Allocation for Ocean Carriers

With the advent of the Ocean Reform Shipping Act (OSRA) 1998, carriers are given the freedom to negotiate and to set prices in individual service contract with shippers. Usually such contracts are negotiated once a year, that is one or two months before the trades peak season starts. One TLI-AP related project is looking at the issue of contract planning and load allocation. The main parameter in a contract is price-setting. The price charged in a contract for transporting a container depends on the origin-destination pair, the time of the year and the classification of the goods in the container (this factor is usually not considered within intra-Asia transportation). In order to structure these prices, some important aspects, such as the price structure of competitors, the behaviour of customer demand, the availability of transportation capacities (capacities of voyages, domestics transports-truck, rail and barge transportation), and the availability and flow balance of equipment (container and truck chassis) have to be considered. Thus to optimise contract planning requires a model which can determine the target commodity mix and corresponding price levels and pricing periods. When shippers request cargo bookings, ocean carriers have to make decisions on how to manage the bookings. Such operational decisions, called load allocation, need to be organised in a way that sustains good customer relations which maintains operational efficiency. Before confirming a shipment dispatch with the shipper, carriers have to consider their capacity on the voyage, booked loads and its origin-destination pairs, future booking requests, relative importance of different shippers and urgency of their loads and also other alternatives for obtaining additional capacity, which includes buying capacity from other carriers. The increased competitiveness environment post OSRA has increased the urgency for developing, optimizing and managing contracts at both the strategic and operational level. One important research direction is focused at developing decision support system to facilitate carriers to make decision on contract planning and load allocation. Models for a planning tool can be developed for carrier to plan their coming year contract price structure, target mix of origin-destination flows and cargo classes. Once the best match is obtained, carriers profitability can be maximized.

7.2

Empty Container Allocation and Distribution Planning

As discussed in the Sea Cargo Issues, container imbalance is a core problem faced by the carriers. While ports in some regions, for example the Far East are experiencing empty container deficits, the US ports, particularly brimming with surplus containers. The imbalance in supply and demand of empty containers in ports at different regions requires proper allocation and distribution planning of empty containers. Moreover, there is a significant impact on operations for carriers to manage the empty container movements as the key component of their total operating cost (TOC) is associated with repositioning empty containers around its many ports.

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Some planning decisions, such as leasing-in (lease containers from a leasing company), off-leasing (return containers to a leasing company), positioning-in (bring in containers from other ports) and positioning-out (move containers out to other ports) are ways of addressing the container imbalance. Among the identified operational constraints in the planning process are, the vessel space limitation to carry empty containers to the demand port, off-leasing limitation by leasing companies and leasing-in uncertainty (container unavailable or insufficient from the leasing companies). Deviation of projected demand compared to the actual requirement due to the demand changes requested by the customers further adds the difficulty to the planning process. Some existing work is Shen and Khoong (95) [1], which looks at a large scale planning problem for empty container distribution and Lai, Kokim Lam and Chan (95)[2] which looks at a simulation model to identify container planning policies. This work has only focused on empty containers that are transported from the Middle East to ports in the Far East. Potential research issues are to look at other ports and to get better models for the allocation and repositioning of empty containers. More advanced forecasting techniques, perhaps using data mining, will also be important component of more sophisticated planning models.

References:
[1]

W.S.Shen and C.M.Khoong, A DSS for empty container distribution planning, Desicion Support Systems, 15:(1), 75-82 (1995) K.K.Lai, Kokim Lam and W.K.Chan, Shipping container logistics and allocation, Journal of the Operational Research Society, 46:(6), 687-697 (1995)

[2]

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Appendix 1 Profile of the Top 10 World Ports

Hong Kong Port, Hong Kong Hong Kongs traditional advantages for shipping are due to its strategic location in relation to China and its natural deep sea water harbour. Hong Kong was thus founded as a port for China trade some 160 years ago and has flourished as an entrepot since then. The Port of Hong Kong has become the busiest container port in the world in recent years. Whilst a significant proportion of Hong Kongs traffic is transshipment (27.06% in 1997), the majority of its cargo is that moving directly to or from Mainland China. Hong Kong owns significant shipowners in the international shipping sector. They control approximately 6%(in terms of tonnage) of the merchant ships in the world, ranking fifth after Greece, Japan, Norway and the US. Facilities as ship management, brokerage, finance, insurance, arbitration, legal, naval architecture and ship surveying services are provided by 1,000 shipping related companies operating in Hong Kong. On an average day some 1,300 ocean-going vessels and river trade craft enter or leave the port, with more than 200 ocean-going ships are working in the port and about 10,000 harbour craft are busy providing services to the port activities.
Source: http://www.info.gov.hk & Short Sea Container Market

Singapore Port, Singapore Singapores strategic location at the crossroads of major shipping routes makes it the major port of call for over 320 shipping lines from more than 738 ports worldwide. As it provides global connectivity to ports world wide, coupled with sailing frequencies, Singapore Port or better known as PSA Corp (Port of Singapore Authority Corporation) is an ideal hub for transshipment of containers. Shipping lines can therefore maximize slot utilization on their mother vessels through the choice of feeders to various trade routes. Singapore FastConnect Transshipment System offers shipping lines efficient transshipment connections in Singapore. Their customers are also offered rebates for enabling faster connections for increased operational efficiency. PSA Corp handles 2,000 containers per vessel routinely, and turns vessels around in less than 12 hours.
Source: http://www.mpa.gov.sg & Short Sea Container Market

Port of Kaohsiung, Taiwan The International Port of Kaoshiung is the largest port in Taiwan. It is situated in the south western coast of Taiwan, and is the pivot point at the intersection between Taiwan Strait and Bashi Strait. It features a broad area, vast interland, clement weather and a long developed sand bar forming a natural breakwater for the
i

harbour. The Port of Kaoshiungs network extends to all major ports of the world. Its annual handling capacity is about 98 million tons, accounting two-thirds of Taiwans import and export tonnage. With a total loading and unloading volume of 328 million in 1998, and a significant container throughput of 6,271,053 TEU, made the port the third largest port in the world in the same year.
Source: http://www.khb.gov.tw

Port of Pusan, Korea The Pusan Port has a 120 years long history. Located in the southern part of the Korea Peninsula, the port is a principle gateway linking the Pacific Ocean to the continent of Asia. The port of Pusan consists of the North Port, South Port, Gamcun Harbour and Tadaepo Harbour. With a fine, natural deep harbour experiencing only minor tidal changes and a location that connects Asia and North and South America, the Port of Pusan plays a vital role as the hub of seaborne transportation throughout the Northeast Asia region.
Source: http://www.kca.or.kr

Port of Rotterdam, Netherlands The first port activities in the Port of Rotterdam began around 1328 with the construction of Oude Haven. Before that Rotterdam was still a fishing port situated on the river Rotte. Imports and exports of products soon drew attention to the small town and links were formed with ports in England and Portugal. And today Rotterdam is the capital city of European container transport. The Port of Rotterdam handled containers totalling to some 6.3 million TEU in 1997, more than any other European port, Port of Rotterdam occupied the fifth place on the list of the top 10 world container ports. Some 70% of the containers handled in Rotterdam are destined for European regions outside Netherlands. From this port, containers are then forwarded to the other European countries by coastal shipping, barge, truck and train. The Rotterdam Municipal Port Management expects a throughput of around 11.3 million TEU by the year 2020.
Source: http://www.containershipping.com

Port of Long Beach, US Long Beach was the first port in Southern Colifornia with docksides rail facilities, which allows cargo to be transferred directly between ship and train. The Port of Long Beach has been the busiest container port in the U.S since 1995. It is also ranked the sixth busiest in the world. This port, combined with the Port of Los Angeles represent the third busiest container port complex in the world. In 1999, the value of cargo through the port was nearly US$89 billion and container totalling 4,408,480 TEUs were handled here. Container throughput and volume of all forms of cargo have increased by more than 175% and 50%, respectively since 1990.
ii

Some 50% of the cargo passing through the port is moving to or from the southwest region of the US, which is moving to and from the LA region. The remaining 50% of the cargo passing through the port is moving to or from markets east of the Rocky Mountains and the Gulf and East coasts of the US. With a ready consumer market for import trade and an established agricultural, manufacturing and transportation base for export trade, the port has direct access to 17 million Southern Colifornia residents.
Source: http://www.polb.com

Port of Shanghai, China Shanghai is the largest port in China. It is located on the Huangpu River at the month of the Changjiang River. Some 99% of Shangais foreign-trade goods are handled by its port; its annual cargo throughput ranks first in China. It has established trade relationship with about 160 countries and regions throughout the world and is served by 20 international shipping lines. The Changjiang River links the port to inland provinces and its central coastal position gives access to all Chinese ports, north and south. Shanghai Container Terminals (SCT), a joint venture set up by Shanghai Port Authority and Hutchison Whampoa Ltd, owns and operates all container facilities in Shanghai. Besides cargo handling facilities, ship repair, drydocks and other repair facilities are also available in the port. The port also provides five floating cranes with maximum capacity of 2,500 tons.
http://www.info.gov.hk

Port of Hamburg, Germany Being the largest container port in Germany and the second largest in Europe, Hamburg handles a quarter of all container shipment through the main ports of the northern European seaboard. In 1999, Hamburgs container throughput reached a record of 3.7 million TEU, confirming its position as the top ten container port in the world. Approximately 50% of all the containers handled at Hamburg are bound for or received from ports of Asia. This reflects the importance of Asia as a trading partner to Hamburg. Hamburgs position as a river-port on the Elbe enables vessels to be loaded and discharged right in the heart of Hamburg regions main freight centre and this saves on transport cost. With a project to deepen the Elbe is going ahead, Hamburg will be able to receive vessels of 6,000 TEU and even larger.
Source: http://www.hafen-hamburg.de

Port of Antwerp, Belgium Antwerp is an important crossroad in the European motorway network. Located in the second largest city in Belgium, Antwerp has the most central location (among the ports of that range) with respect to the main production and consumption areas
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in the hinterland. Its central position is boosted by an extensive network of communication routes with some significant areas making it the deal distribution point for European market. In Antwerp, general cargo handling goes beyond container handling. It is the terminus of twelve international rail-cargo lines and 20% of Antwerps maritime traffic comes in or goes out by rail. A total of 960 km of tracks of the quays are connected to the port railway system. Every year some 15,9000 ships call at the port, flying the flags of 100 different nations. The port also offers 300 regular liner services to over 800 overseas destinations. An information processing system called APICS (Antwerp Port Information and Control System) was developed especially to plan shipping arrivals and departures and control vessel traffic in the port itself. The main objective of APICS is to increase Antwerps efficiency in organising the nautical operations.
Source: http://www.portofantwerp.be

Port of Los Angeles, US The Port of Los Angeles, an independent, self-supporting department of the City of Los Angeles, Colifornia was founded in 1907 and its the second busiest port in US. The port is often referred to as the Los Angeles Harbour Department. It is one of the premier US gateway for international trade and commerce. About 29 facilities for handling all types of cargo are available. This is inclusive of six state-of-art container terminals. The port is now completing its Pier 300/4000 Implementation Program, with an anticipated doubling of cargo expected. The port has 29 major cargo terminals and is continually upgrading and improving its facilities.
Source: http://www.portoflosangeles.org

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Appendix 2 Profile of the Selected Major Carriers Maersk Sealand Maersk Sealand has a service network spans of six continents and more than 325 offices around the globe. Based in Denmark, Maersk Sealand has subsidiary organizations located in more than 100 countries to ensure a consistent service in all the geographic areas where they do business. Their country organization reports to the head offices in Europe, North and South America, Asia, Middle East and Australasia and Africa. The Maersk/Sealand operates more than 250 vessels with a total capacity of around 600,000 TEU. In 1999, Maersk Line acquired the international container business of Sea-Land Service Inc. and changed its name to Maersk Sealand.
Source: http://www.maersksealand.com

Evergreen/Uniglory The Evergreen Marine Corporation (Taiwan) Ltd, and together with its other affiliates including Evergreen International SA, Panama and Uniglory Marine Corporation, Taiwan formed a container shipping group in 1968. Including vessels on order, the Evergreen/Uniglory fleet will stand at 134 ships totalling over 360,000 TEU by the end of 2001. The main routes operated by Evergreen link North America, Asia and Europe. It operates ships of around 4,200 TEU for the eastbound and westbound weekly sailings and employs 5,364 TEU vessels for its three Trans-Pacific services. Evergreen has recently extended its services in to the North-South trades, South Africa and Australia.
Source: http://www.evergreen-marine.com.tw

P&O Nedlloyd In December 1996, Anglo-Dutch liner operator, the P&O Nedlloyd Container Line limited, was formed as a 50:50 joint venture of P&O and Royal Nedlloyd. It has two head offices; in Rotterdam and in London. P&O Nedlloyd is now one of the largest container carriers worldwide, with routes connecting all parts of the globe and a yearly turnover of around US$4 billion. It has over 70 trade lanes and provides connections to more than 250 main ports serving 120 countries worldwide. P&O Nedlloyd also has a fleet of 130 owned and chartered vessels, and a container fleet numbering some 635,000 owned and leased TEU. Among the strengths of P&O Nedlloyd are its well developed feeder lines and extensive inland transport capabilities. Their services are supported by a combination of the latest technology and with a ready-made network of local offices.
Source: http://www.ponl.com

Hanjin/DSR-Senator Established in 1977 under the name of Hanjin Container Lines (HJCL) as a member of Hanjin Group, Hanjin Shipping Co. Ltd. (HJS) is one of the youngest global carriers in the shipping industry. The South Koreas Hanjin is a transportation provider with more than 200,000 containers of all types and sizes with three terminals in Long Beach, New York and Seattle. Intermodal service is available throughout the North America continent from all these exclusive terminals. In 1999, Hanjin acquired 80% interest in DSR Senator Lines. Hanjins global bulk operations consist of three main service areas, namely, liner, tramper and specialized services. At present, HJS holds a comparative percentage ratio of 75% container to 25% bulk. It is now actively seeking to optimise the balance between container and bulk operations.
Source: http://www.hanjin.com

MSC Founded in 1970, Mediterranean Shipping Company (MSC), S.A. of Geneva, Switzerland is a privately owned shipping line. MSC serves 5 continents and calls at 174 ports through 81 main direct and 55 combined weekly liner services. It controls over 300 inland depots worldwide with 350 local offices. MSC operates a container fleet of 420,000 TEU containers which include 20 foot and 40 foot drybox units, reefers, open-tops, flat racks, collapsible and high cube containers. MSC has its own private facilities for the refurbishing, repairing and maintenance of its own container fleet. In some countries, it operates local transport companies dedicated to the collection and delivery of MSC shipments.
Source: http://www.mscgva.ch

Cosco Chinese national carrier, China Ocean Shipping (Group), Cosco is a large conglomerate taking international shipping as its core business. Cosco Group owns many firms and offices in many parts of China, such as Guangzhou, Shanghai, Qingdao, Tianjin and Dalian, and the group has successfully established its representative offices in 38 different countries. Founded 1997 in Shanghai China, Cosco Container Lines Co. Ltd, which is known as COSCON is a key company specialized in container transport under Cosco Group. Its business scope ranges from international and domestic container transport by sea, space booking, ships chartering, shipping agencies, ships trade, ships stores, spare parts, provision and bunkers, on-land enterprises, telecommunication service, labour leasing service, warehousing and multi modal transport. The biggest ocean shipping company in Shenzen and a joint venture of Cosco, Shenzen Ocean Shipping Co. Ltd, owns seven ocean going vessels, with a tonnage of 283,000 and the total assets of 390,000,000 yuan and operates six chartered vessels. Another Cosco Group,

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Xiamen Ocean Shipping Company (COSCOXIAMEN) owns 17 various types of ships, including bulk carrier, general cargo ship, LPG carrier, totalling 350,000dwt.
Source: http://www.cosco.com

NOL/APL Founded in 1968, Neptune Orient Lines Ltd (NOL) is one of the five largest shipping companies worldwide. Being the largest shipping company listed on the Stock Exchange Market in Singapore with a market capitalization of S$2.05 billion (as of August 2000), the NOL operates a network of container transportation services on major international trade routes. NOLs container transportation division merged with the American President Line (APL) in November 1997 to represent a significant force in terms of global container terminal development. Some 77% of its turnover of US$4,276 million in 1999 was contributed by container shipping. Besides covering container transshipment in the trans-Pacific, Asia-Europe, Mediterranean, Latin America, intra-Asia and Australia markets, APL/NOL also provides supply chain management services for international shippers through its subsidiary, APL Logistics. It also provides worldwide chartering services in the liquid and dry bulk trades.
Source: http://www.nol.com.sg

Nippon Yusen Kabushiki Kaisha Established in 1885 in Japan, Nippon Yusen Kabushiki Kaisha (NYK Line) has led the Japanese shipping industry consistently in volume handled and destinations served through liner services. NYK Lines operates a liner fleet of about 100 vessels, including more than 70 containerships. Apart from operating the worlds largest fleet of car carriers, they too operate some 35 crude oil tankers, including 31 very large crude carriers (VLCCs). They operate 3 of over 100,000 dwt, 1 of over 70,000 dwt, and 5 of over 40,000dwt totalling 9 carriers for Clean Petroleum Products (CPP), mainly naphtha for petrochemical feedstocks and other fuels such as gasoline, gas oil, jet fuel and kerosine and also methanol. Their strength in liner services is in their breakage-free cargo handling.
Source: http://www.nyk.com

CMA CGM/ANL The CMA CGM (Compagnie Gnrale Maritime Compagnie Maritime dAffrtement) group was created in 1996 with the worldwide unification of CMA and CGM agencies taking place in 1997. In December 1998, CMA CGM acquired regular container lines activity of the Australian national company, ANL. Together, the CMA CGM/ANL offers shipping services to all worldwide destinations, including Europe, Mediterranean, North Africa, Pacific Islands, North America, Asia. It operates a fleet of more than 80 vessels, a quarter of which are company
vii

owned, to make a global network of more than 220 agencies present in 120 countries. Its turnover accounted to US$1.4 billion and it transported some 1.35 million TEU in 1999. It has 23 deep-sea services and 14 regional relay services for operating feeder vessels form a worldwide network of interconnecting services. CMA CGM/ANL operates a container fleet of 220,000 TEU of all types; dry container, high cubes, porthole reefers, self-powered reefers.
Source: http://www.cma-cgm.com

CP Ships Group CP Ships started as a cargo specialist in 1886. It is a wholly owned subsidiary of Canadian Pacific that provides international ocean and inland transportation for containerised cargo. Its six shipping lines (Canada Maritime, CAST, Lykes Lines, Contship Containerlines, TMM lines and Australia-New Zealand Direct Line) offer world-wide network of regional services. Their combined fleet of 80 ships transports about 2 million containers per year. CP Ships also included Americans Ships, CP Ships Logistics and Montreal Gateway Terminal to provide better container shipping services. The American Ships specializes in Americas-based container shipping services, CP Ships Logistics helps the individual CP Ships lines achieve greater efficiencies, increase cost saving and build more competitive service products through operational synergy, while the Montreal Gateway is dedicated to the operations of Canada Maritime, Cast and their service partners.
Source: http://www.cp.ca

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Appendix 3-Singapore Examples of Importation, Exportation and Transhipment Processes Importation of Laden Containers in Singapore

Information Flow

Physical Flow

1. Job Order 2. InHouse System Update 3. InHouse System * Vessel ETA * Container delivery application * Container details 4. Generate Schedule 5. Pregating

6. Job Instruction * Container number * Origin, Destination * Time Windows

PortNet

7. Container Collection (PSA) * Customs * EIR out

8. Container Delivery (Warehouse) * LTO delivery note to client

10. Update InHouse System 11. First Leg Closed

9. Return Documents

12. Storing order 13. InHouse System * Container available time 14. Generate Schedule

15. Job Instruction * Container number * Origin, Destination * Time Windows 16. Container Collection (Warehouse) 17. Container Delivery (Yard) * Depot handling charges * Equipment interchange report

19. Update InHouse System 20. Job Closed

18. Return Documents

Importation of Laden Containers

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Procedure: P1 Job Order: receive documents and job instruction by fax. P1.1 Instructions and documents received either from: a) Clients directly b) LTOs freight services department c) LTOs documentation unit P1.2 Documents include: a) Import permit b) Shipping documents: Bill of lading, Invoice, Packing List c) Delivery order (optional) d) Storing order (optional) e) Clients instruction letter P1.3 Information provided: a) Consignees name b) Vessel name, voyage number and ETA c) Container number(s), size and type d) Cargo weight e) Unstuffing location f) Customer reference number (optional) g) Special instructions, if any InHouse System Update. Create job profile and enter data. InHouse System. InHouse System will automatically download and update the container details including vessel ETA, type of cargo, length and weight of container, origin and destination location, time windows for delivery and complete the container delivery application. All these transactions are done through the connection between LTOs network and PSA PortNet. Generate Schedule. Upon the availability of the job details, the status of the job will be set to ready for scheduling. Pregating. Pregating is needed before the truck could go to PSA port to collect the container. Job Instruction. The controller will inform the driver on where to collect and deliver the container together with the container number and time windows. Container Collection from PSA. When the truck goes out of PSA, it needs to go through custom and collect an EIR OUT which prints the out-gate time. Container Delivery to Warehouse. The driver asks the warehouse manager to sign the LTOs delivery note. Return Documents. Driver will return the EIR OUT to LTO. Update InHouse System. Upon the job completion, the InHouse system must be updated. First Leg Closed. The first leg of importation of laden container is closed. Storing Order. After the container unstuffing in warehouse is done, the customer will notify LTO and give the order of returning empty containers to yard. InHouse System. InHouse System will be updated on the empty container available time. Generate Schedule. The returning job is set to ready for scheduling. Job Instruction. The controller will inform the driver, on where to collect and deliver the containers together with the container number and time windows. Container Collection from Warehouse.

P2 P3

P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14 P15 P16

P17 P18 P19 P20

Container Delivery to Yard. Driver needs to pay the depot handling charge and obtain the equipment interchange report, which is issued by the yard. The depot handling charges is billable to customer. Return Documents. Driver will return receipt of depot handling charge and equipment interchange report to LTO. Update InHouse System. Upon the job completion, the InHouse system must be updated. Job Closed. The second leg of importation of laden container is closed.

Constraints: C1 C4 C5 Normal Cargo: There are three days free-storage time. COD + 72hrs EIR OUT, where COD means Complete of Discharge of cargo. EIR OUT = EIR IN + HandlingTime, Handling time 30 mins. Earlier pickup of container will get rebate. Class 2 Cargo (recommended for storage): There are 24 hours free-storage time. COD + 24hrs EIR OUT EIR OUT = EIR IN + HandlingTime, Handling time 30 mins. Class 2 Cargo (not recommended for storage): Direct Delivery. Arrival time of truck at PSA ETA, where ETA means Estimated Arrival Time for vessel. The truck must wait at PSA before the discharge of container. Handling time is variable. The vessel instructor will estimate on how long the truck will be waiting at PSA to pick up the container, depending on the location of container in the vessel. Handling time varies from 30 mins to several hours. Two choices for the truck when waiting a) to wait at PSA itself b) to go for another job, then come back later Special Containers (over-height, over-weight, over length): Process same as Direct Delivery Warehouse Stuffing Bay Problem: Some customers warehouse provide with only one or two container bays. As they do not supply trucks, the LTO has to provide its own trucks to move the laden/empty containers to or away from the bays. Hence it is not recommended to send more containers than the number of bays in warehouse at the same time. In order to over come such problem in warehouse, the LTO at present, sends its trucks one after another. The newest in coming truck will move away the completed container from the bay, before placing them. For the final completed container, LTO sends a truck to move it away. Storing of Empty Containers: Once the container is moved out from PSA (EIR OUT), the unstuffing of container needs to be completed and the empty container to be returned to yard within three days. EIR OUT + 72hrs Arrival time of empty container to yard.

C2 C3

C6

xi

Importation of Empty Containers in Singapore

Information Flow Physical Flow

1. Job Order 2. InHouse System Update 3. InHouse System * Vessel ETA PortNet * Container delivery application - nominated: individual application - non-nominated: batch application * Container details 4. Generate Schedule 5. Pregating

6. Job Instruction * Container number * Origin, Destination * Time Windows

7. Container Collection (PSA) * Customs * EIR out

8. Container Delivery (Yard) * Depot handling charges * Equipmnet interchange report

10. Update InHouse System 11. Job Closed

9. Return Documents

Importation of Empty Containers Procedure: P1 Job Order: receive job instructions from clients by fax P1.1 Instructions are received from clients directly, and normally referred as Trucking Order or Authorization Slip P1.2 Information provided: a) Clients name b) Vessel name, voyage number and ETA c) Container number(s), size and type d) Off-loading yard location e) Customer reference number (optional) InHouse System Update. Create job profile and enter data. InHouse System. InHouse System will automatically download and update the container details including vessel ETA, type of cargo, length and weight of container, origin and destination location, time windows for delivery and complete the container delivery application. All these transactions are done through the connection between LTOs network and PSA PortNet. Container delivery application: Automatically done by InHouse System. a) Nominated containers: process delivery application for each container b) Non-nominated containers: process delivery application for each batch of containers. The batch of containers displayed in PortNet is created by clients.

P2 P3

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P4 P5 P6 P7 P8 P9 P10 P11

Generate Schedule. Upon the availability of the job details, the status of the job will be set to ready for scheduling. Pregating. Pregating is needed before the truck could go to PSA port to collect the container. Job Instruction. The controller will inform the driver on where to collect and deliver container together with the container number and time windows. Container Collection from PSA. When the truck goes out of PSA, it needs to go through custom and collect an EIR OUT which prints the out-gate time. Container Delivery to Yard. Driver needs to pay the depot handling charge and obtain the equipment interchange report issued by the yard. The depot handling charge is billable to customer. Return Documents. Driver will return the EIR OUT, the receipt of depot handling charge and the equipment interchange report to LTO. Update InHouse System. Upon the job completion, the InHouse system must be updated. Job Closed.

Exportation of Laden Containers in Singapore Procedure: P1 Job Order: receive documents and instructions by fax. P1.1 Documents and instructions are received either from: a) Clients directly b) LTOs freight services or warehouse department P1.2 Documents received include: a) Clients instruction letter P1.3 Information provided: a) Shippers name b) Loading vessel name, voyage number and ETA c) Container size and type, and number of containers d) Delivery address of containers e) Data/time for empty positioning (optional) f) Booking reference number g) Special instruction, if any InHouse System Update. Create job profile and enter data. The shipping agent will provide the container information on where to pick up container, where to collect container seal, when to deliver to warehouse and issue the release order to LTO. InHouse System. InHouse System will automatically download and update the vessel ETA. Generate Schedule. Upon the availability of the job details, the status of the job will be set to ready for scheduling. Job Instruction. The controller will inform the driver on where to collect and deliver the container together with the time windows. Document/Equipment Collection. The driver needs to collect the release order, container seals and labels for dangerous cargo before collecting container at yard. It is not necessary for the driver to obtain the container seal and labels from LTO, as sometimes they will be passed to yard directly.

P2 P3 P4 P5 P6

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Information Flow

Physical Flow

1. Job Order 2. InHouse System Update Shipping Agent * Container information -which yard -where to collect container seal -release order 3. InHouse System * Vessel ETA 4. Generate Schedule

5. Job Instruction * Origin, Destination * Time Windows 6. Documents/Equipment (Shipping Agent) *release order *container seal *labels(DG) 7. Container Collection (Yard)

PortNet

* Container seal, label * Depot handling charge * Equipment interchange report 8. Container Delivery (Warehouse) * CWT delivery note * Container seal & labels to customer

10. Update InHouse System 11. First Leg Closed

9. Return Documents

Client PortNet

12. InHouse System Update * Stuffing completion time * Export container record * Book TT 13. Export permit (Bonded Cargo) 14. Generate Schedule

16. Job Instruction * Container number * Origin, Destination * Time Windows 17. Documents * Export permit (bonded cargo) 18. Container Collection (Warehouse)

15. Pregating 19. Container Delivery (PSA) 21. Update InHouse System 22. Job Closed 20. Return Documents

Exportation of Laden Containers P7 Container Collection at Yard. If the container seal and labels are present at yard, driver will collect them from here. Driver needs to pay the depot handling charge and obtain the equipment interchange report issued by the yard. The depot handling charge is billable to customer. Container Delivery to Warehouse. The driver asks the warehouse manager to sign the LTOs delivery note and pass the container seal and labels to warehouse. Return Documents. Driver returns the release order, the receipt of depot handling charge and the equipment interchange report to LTO. Update InHouse System. Upon the job completion, the InHouse System is updated.
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P8 P9 P10

P11 P12

P13 P14 P15 P16 P17 P18 P19 P20 P21 P22

First Leg Closed. The first leg of exportation of laden container is closed. InHouse System Update. Client will inform LTO the stuffing completion time of container. The container records, such as type of cargo, length and weight of container will be stored in PortNet. Before delivering the container, LTO will book TT (transtainer). Export Permit. Only Bonded Cargo, which is GST free needs export permit. Generate Schedule. Upon the availability of the job details, the status of the job will be set to ready for scheduling. Pregating. Pregating is needed before the truck could go to PSA port to collect container. Job Instruction. The controller will inform the driver where to collect and deliver container with the container number and time window for TT. Documents. Driver must collect the export permit for bonded cargo before going to PSA. Container Collection from Warehouse. Container Delivery to PSA. Return Documents. Driver will return document if there is any. Update InHouse System. Upon the job completion, the InHouse system will be updated. Job Closed. The second leg of exportation of laden container is closed.

Constraints: C1 C2 Normal Cargo: Book TT TT1 EIR IN TT2, where TT1 and TT2 defines the starting and ending time of the TT period. The truck must go to PSA gate (EIR IN) within TT time slot. Handling time 30 mins Three days free-storage time before ETD (Estimated Departure Time). Later delivery will get rebate. Class 2 Cargo (recommended for storage) (ETD-24hrs) EIR IN ETD. Containers can be delivered to PSA one day before the departure of vessel. No need to book TT Handling time 30 mins Class 2 Cargo (not recommended for storage) No need to book TT Direct Delivery. Arrival time of truck at PSA ETA, The truck must wait at PSA for the mounting of container. Handling time is variable. The vessel instructor will estimate on how long the truck will be waiting at PSA for the mounting of container. Handling time is varies from 30 mins to several hours. Two choices for the truck when waiting: a) to wait at PSA itself b) dismount container at LTOs cargo region, go for another job, then come back later Special Containers (over-height, over-weight, over length): Process same as Direct Delivery

C3

C4

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C5

Warehouse Stuffing Bay Problem: Some customers warehouse provide with only one or two container bays. As they do not supply trucks, the LTO has to provide its own trucks to move the laden/empty containers to or away from the bays. Hence it is not recommended to send more containers than the number of bays in warehouse at the same time. In order to over come such problem in warehouse, the LTO at present, sends its trucks one after another. The newest in coming truck will move away the completed container from the bay, before placing them. For the final completed container, LTO sends a truck to move it away.

Exportation of Empty Containers in Singapore

Physical Flow

Information Flow

1. Job Order 2. InHouse System Update 3. InHouse System * Vessel ETA * Export container record * Book TT - less than 15: individual booking - more than 15: block booking

6. Job Instruction * Container number * Origin, Destination * Time Windows

PortNet

7. Container Collection (Yard) * Depot handling charges * Equipmnet interchange report

4. Generate Schedule 5. Pregating 10. Update InHouse System 11. Job Closed

8. Container Delivery (PSA)

9. Return Documents

Exportation of Empty Containers

Procedure: P1 Job Order: receive job instructions from clients by fax P1.1 Instructions from clients directly P1.2 Information provided: a) Clients name b) Booking reference number

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P2 P3

P4 P5 P6 P7 P8 P9 P10 P11

c) Number of containers, container numbers (for nominated containers only), size and type d) Location for picking up containers e) Loading vessel name, voyage number and ETA f) Customer reference number (optional) InHouse System Update. Create job profile and enter data. InHouse System. InHouse System will automatically download and update the vessel ETA. The container record such as type of cargo, length and weight of container will be captured in PortNet. Before delivering the container, LTO must book TT. TT booking: Nominated containers: process delivery application for each container a) Less than 15 containers: Individual booking b) Equal and More than 15 containers: Block booking (4 hours per block) Generate Schedule. Upon the availability of the job details, the status of the job will be set to ready for scheduling. Pregating. Pregating is needed before the truck could go to PSA port to deliver the container. Job Instruction. The controller will inform the driver on where to collect and deliver container together with time window for TT. Container Collection from Yard. Driver needs to pay the depot handling charge and obtain the equipment interchange report issued by the yard. The depot handling charge is billable to customer. Container Delivery to PSA. Return Documents. Driver will return document if there is any. Update InHouse System. Upon the job completion, the InHouse system must be updated. Job Closed.

Constraints C1 Block Booking of TT. One block booking takes 4 hours. Since there is no sub-division of time slots for each container, there is a chance for too many containers to go into PSA at the same time within the TT period, therefore causing congestion.

Transshipment of Containers in Singapore Procedure: P1 Job Order: receive instructions from client by fax. P1.1 Documents received include: a) Clients instruction b) Transshipment pink or white (i) A pink permit is required if the container carries controlled cargo: such as food, weapon, computer (ii) A white permit is required for non-controlled cargo c) Shipping order (optional)

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P2 P3

P4 P5 P6 P7 P8

Information provided: a) Discharge and loading vessel name and voyage number b) ETA and ETD c) Discharge terminal d) Loading terminal InHouse System Update. Create job profile and enter data. InHouse System. InHouse System will automatically download and update the vessel ETA in port1 and vessel ETD in port2. Before delivering the container to port2, LTO must book TT. TT booking: a) Less than 20 containers: Individual booking b) Equal and more than 20 containers: Block booking Generate Schedule. Upon the availability of the job details, the status of the job will be set to ready for scheduling. Pregating. Pregating is needed in both ports before the truck could go to PSA port to collect and deliver the container. Job Instruction. The controller will inform the driver on where to collect and deliver container together with the container number and time windows. Documents. Driver must collect the transshipment permit. Container Collection from PSA port1. There is custom endorsement on transshipment permit at exit gate.

P1.2

Information Flow

Physical Flow

1. Job Order 2. InHouse System Update 3. InHouse System * Vessel ETA, ETD PortNet * Book TT - less than 20: individual booking - more than 20: batch booking

6. Job Instruction * Container number * Origin, Destination * Time Windows 7. Documents * Transshipment permit 8. Container Collection (PSA: Port1) * Custom endorsement on transshipment permit (Exit)

4. Generate Schedule 5. Pregating 10. Update InHouse System

9. Container Delivery (PSA: Port2) * Custom endorsement on transshipment permit (Entrance) 10. Return Documents

11. Job Closed

Transshipment of Containers

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P9 P10 P11 P12

Container Delivery at port2. There is a custom endorsement on transshipment permit at entrance gate. Return Documents. Driver will return documents if there is any. Update InHouse System. Upon the job completion, the InHouse system must be updated. Job Closed.

Constraints: C1 C2 C3 Free Storage: There is 9 days free-storage time in port1. Delivery: Same as exportation TT and Rebate: No TT, No rebate

Empty Containers Information Flow Physical Flow

1. Job Order 2. InHouse System Update * Collecting/returning yard location 3. InHouse System 4. Generate Schedule

5. Job Instruction * Container number * Origin, Destination * Time Windows 6. Container Collection (Yard1) * Depot handling charges * Equipmnet interchange report 7. Container Delivery (Yard2) * Depot handling charges * Equipmnet interchange report

9. Update InHouse System 10. Job Closed

8. Return Documents

Off-Hire Container

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Procedure: P1 Job Order: receive instructions from client by fax. P1.1 Documents are received directly from clients. P1.2 Information provided: a) Collecting and returning yard locations b) Number of containers involved c) Container numbers d) Returning period InHouse System Update. Create job profile and enter data including collection and returning yard locations. InHouse System. The job profile will be transferred to SunRay system. Generate Schedule. Upon the availability of the job details, the status of the job will be set to ready for scheduling. Job Instruction. The controller will inform the driver on where to collect and deliver container together with the container number and time windows. Container Collection at Yard1. Driver needs to pay the depot handling charges and obtain interchange report, issued by the yard. The depot handling charge is billable to customer. Container Delivery at Yard2 Driver needs to pay the depot handling charges and obtain interchange report, issued by the yard. The depot handling charge is billable to customer. Return Documents. Driver will return documents if there is any. Update InHouse System. Upon the job completion, the InHouse system must be updated. Job Closed.

P2 P3 P4 P5 P6 P7 P8 P9 P10

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Glossary Asia-Pacific The Asia-Pacific region, with approximately 57% of the world population can be divided into five sub-regions as listed in the table below. Asia-Pacific is a region of tremendous potential and some rapid growing economies. Having an annual growth rate of 7% with a total market size of 1.5 billion people in the year of 1995, the region widely acclaimed as the engine of universal economic growth. Asia-Pacific is expected to be the worlds most dynamic area in the years ahead. Region Central Asia South Asia North East Asia Countries in the Region Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka China, Hong Kong (Special Administrative Region of the PRC), Japan, Korea (Democratic Peoples Republic), Korea (Republic of), Macau, Mongolia, Russian Federation (east of Urals), Taiwan China Brunei Darussalam, Cambodia, Indonesia, Laos (Peoples Democratic Republic), Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam America Samoa, Australia, Christmas Island, Cocos (Keeling) Islands, Cook Islands, Fiji, French Polynesia, Guam, Kiribati, Marshall Islands, Micronesia, Nauru, New Caledonia, New Zealand, Niue, Norfolk Island, Northern Mariana Islands, Palau, Papua New Guinea, Pitcairn, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, U.S Outlying Islands, Vanuatu, Wallis ad Futuna Islands.

South East Asia South Pacific

In chapter 2, the inward containerised cargo handled in Singapore Port was classified into eight main regions. The classification of these regions consists of the following countries. Region South East Asia North East Asia South Asia West Asia Africa Countries in the Region Brunei, Cambodia, Malaysia, Myanmar, Philippines, Thailand, Vietnam and other countries in South East Asia. China, Hong Kong, Japan, South Korea, Taiwan and other countries in North East Asia. Bangladesh, India, Pakistan, Sri Lanka and other countries in South Asia. Bahrain, Cyprus, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen and other countries in West Asia. Cote Divoire, Djibouti, Egypt, Ghana, Kenya, Madagascar, Mauritius, Nigeria, Seychelles, Tanzania, South Africa and other countries in Africa.

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Region Europe

Oceania America

Countries in the Region EU (Australia, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom) AND other European countries (Bulgaria, Croatia, Hungary, Malta, Norway, Poland, Romania, Russia, Slovak Republic, Switzerland, Turkey, Ukraine and other countries in Europe). Australia, Fiji, New Zealand, Papua New Guinea and other countries in Oceania. North America (Canada and USA) AND Central and South America (Argentina, Brazil, Chile, Colombia, Cuba, Dominican Rep, Ecuador, Mexico, Netherlands Antilles, Panama, Peru, Uruguay, Venezuela, and other countries in Central and South America).

Bill of Lading The contract between carrier and shipper, which have a direct bearing on the cost of ocean transport. Bulk cargo Homogenous unpacked dry cargo such as grain, iron ore or coal. Oil is also categorised in bulk cargo. A cargo shipped in this way is said to be in bulk. Cargo A physical product that the carriers move. Cargo can be categorised into two: general cargo and bulk cargo. General cargo consists of containerised cargo and conventional cargo. Containerised cargo can be a packaged commercial product like cartons of canned tomatoes; conventional cargo like lumber or bulldozers; or bulk cargo like crude oil or grain, pumped or conveyed directly into the ship. Carrier - A firm that offers transportation, or the movement of good, from place to place. An ocean carrier moves goods by ship. Cellular containership - Ship which is dedicated to the carriage of shipping containers. It is fitted with cell guides, uprights which provides a framework design to accommodate standard size containers in such a way that the container are fixed and do not move. Common carrier A carrier that serves all shippers who tender cargo under similar terms. This in theory makes shipping services, and hence the ability to export and import, available to any company that so desires. A common carrier that moves Alpha Brand Widgets cannot refuse to carry Beta Brand Widgets as well if both tendered cargo under the similar terms. See for example: U.S Shipping Act of 1984 Sec 3.DEFINITIONS: As used in this Act --(6) common carrier means a person holding itself out to the general public to provide transportation by water of passengers or cargo between the United States and a foreign country for compensation that --(A) assumes responsibility for the transportation from the port or port of receipt to the port or point of destination, and (B) utilises, for all or part of that transportation, a vessel operating on the high seas or the Great lakes between a port in the United States and a port in a

xxii

foreign country, except that the term does not include a common carrier engaged in ocean transportation by ferry boat, ocean tramp, or chemical parcel tanker. Consignee The party to whom the goods will be delivered in the country of destination. The consignee is usually the importer; a company that is receiving the goods and is responsible to pay customs duties to the government in the country of destination. Referring to its physical role in the transaction, the consignee is often referred as the receiver. Consignors The party that owns or controls the cargo at its origination point. Generally this is the manufacturer of the goods, or a distributor in the country of origin. The consignor is often referred to as the shipper. Container Metal box structure of standard design, used for carrying general cargo in unitised form. Containerised cargo Cargo that have been physically, conventionally and economically stowed in a container. Contract carrier A carrier that typically transports an entire shipload of cargo for a single shipper. The freight is negotiated privately between shipper and carrier. Conventional cargo Cargo not carried in containers, flats etc., but stowed in normal packages. Custom broker - A firm or individual that has arranged the importation of the goods and clearance of the goods through customs in the country of destination. Often, a broker is influential in the choice of carrier. For that reason carriers often pay a commission to the broker to attract further business. The broker is often listed as the consignee on the Bill of Lading, not because the broker is the beneficial recipient of the cargo, but because it is more expedient for all communication from the carrier as to the arrival to be directed to the party; the party that is responsible to co-ordinate the receipt of the goods and subsequent clearance through customs. Discharge to remove or unload cargo from a vessel. Feeder container ship These are used to collect containers from such places as outlying port and river berths and then deliver them to a ocean-going container ship. Feeder container ships vary in vary in size from between 100 TEU to 2000 TEU capacity and at the lower end could even be constructed as a Rhine river barge. Freight forwarder A firm or individual that has arranged the transportation or performed other tasks to facilitate the shipment. The freight forwarder is an agent of the carrier because it receives compensation from the carrier, but in fact the forwarder is chosen by and acts in the interest of the shipper, as well as performing services that are directly charged to the consignor or consignee. General cargo Cargo consisting of good shipped unpacked or packed (containerised and conventional) for example in cartoons, crates, bags or bales, but specifically not cargo shipped in bulks, or trailers or in shipping container. A general cargo ship is one desired

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to carry such cargo, often having several decks because of the number of ports served and the range of products carried. Liner operator A common carrier that offers a regularly scheduled service on particular routes. It is the opposite of tramp operator. Load To move export containers from the terminal onto the vessel. Lo-Lo Lift on/Lift off vessels. Usually cellular vessels, which are loaded or unloaded with containers by means of a gantry crane, over the ships side. Non-Vessel-Operating Common Carrier (NVOCC) A common carrier that neither owns nor operates its own ship(s). It has the same contractual obligation to the shipper to transport goods in exchange for the payment of freight. An NVOCC may buy the transportation service from a VOCC, another NVOCC, or a contract carrier. An NVOCC acts as a middleman in the ocean transport industry. It enjoys this position by virtue of additional services it provides the shipper, or lower freight made possible by volume purchase. See for example: U.S Shipping Act of 1994 Sec 3.DEFINITIONS: As used in this Act --(18) non-vessel-operating common carrier means a common carrier that does not provide the vessels by which the transportation is provided, and is a shipper in its relationship with an ocean common carrier. Pricing The means by which the market prices for international transportation (freight rates) are set. Port A port is a terminal and an area within which vessels load or discharge cargo whether at berth, anchorages, buoys, or the like, and shall also include the usual places where vessels wait for their turn or are ordered or obliged to wait for their turn no matter the distance from that area. If the word PORT is not used, but the port is (or is to be) identified by its name, this definition shall still apply. Usually it has an interface with other forms of transport and in doing so provides connecting services. Ro-Ro Roll on/Roll off ship designed for conveyance of cars, road haulage units and unitised cargo. A number of vessels so equipped have passenger accommodation for coaches, motorist and foot passengers. Seaport A terminal and an area within which ships are loaded with and/or discharged of cargo and includes the usual places where ships wait for their turn or are ordered or obliged to wait for their turn no matter the distance from that area. Shipper An individual or firm that desires to move goods that it owns or controls. A shipper does not own or operate ships, but it owns or controls goods it desires to be moved. TEU Twenty-foot equivalent unit. Technique of quantifying ISO containers i.e. 1 x 40ft = 2 TEU; 1 x 20ft = 1 TEU. The common unit used in indicating the capacity of a container vessel or terminal based on 20ft long container.

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Traffic The document or computer file in which a carrier or group of carriers records all of its rates. In some countries, like the USA, traffic must be filed with the government. Traffic has another meaning in the international trade. It is the rate of duty, or tax assessed on imported goods by the government. Traffic manager The person who negotiates pricing rates on behalf of the shipper. Tramp operator A contract carrier that offers service on demand, sending its ship wherever there is cargo to be moved. Transshipment Transfer of goods from one vessel to another. This transfer may be direct or indirect or it may be necessary to discharge the goods onto the quay prior to loading them onto the second vessel, or onto a vehicle should the second vessel be loading at a different berth. Vessel Operating Common Carrier (VOCC) A common carrier that operates its own ship(s). A VOCC may own its ship(s), or charter/lease them, but it is the firm responsible for the physical movement of the goods. A single ship qualifies a company as a VOCC. So, if a company operates at least one ship, while it may have its primary business other activities than vessel operations, it is always referred as a VOCC. Common Abbreviation For Ocean Carriers ANL : APL : COSCO : HMM : 'K'-Line : MSC : MOL : NOL : NYK : OOCL : TSK : UASC : YML : Australian National Line American President Line China Ocean Shipping Company Hyundai Merchant Marine Kawasaki Kisen Kaisha Mediterranean Shipping Company Mitsui OSK Line Neptune Orient Lines Nippon Yushen Kaisha Orient Overseas Container Line Tokyo Senpaku Kaisha Ltd United Arab Shipping Company Yang Ming Marine Line

Source: Dictionary of Shipping International Business Trade Terms and Abbreviations. Illustrated Dictionary of Cargo Handling. Dictionary of Marine Technology. Singapore Port Statistics. http://www.aviation-charts.com/ofk_1htm

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References 1. World Container Port Markets To 2012, Ocean Shipping Consultants Ltd, 1999. 2. The Future of Container Shipping Industry, Cargo Systems, IIR Publications Ltd, 1999. 3. World Container Terminals; Global Growth and Private Profit, Drewry Shipping Consultants Ltd, April 1998. 4. Opportunities for Container Ports, Cargo Systems, IIR Publications, 1998. 5. Short Sea Container Markets; The Feeder and Regional Trade Dynamo, Drewry Shipping Consultants Ltd, September 1997. 6. Recent Developments in Information Technology for Container Terminals, Cargo Systems, IIR Publications Ltd, January 1999. 7. Electronic Commerce and Container Shipping; Cargo System containershipping.com, IIR Publications Ltd, June 1999. 8. IT in Ports, Opportunities in Information Technology, Cargo Systems, IIR Publications Ltd, November 1998. 9. The New World of E-Logistics and Shipping, It Conference 2000. 10. Singapore Port Statistics, January 1995-December 1997. 11. Logistics Information System (LIS) Project, Industry Model, 1998. 12. PSA: http://www.psa.com.sg 13. MPA: http://www.mpa.gov.sg 14. Hong Kong Port: http://www.info.gov.hk 15. Port of Kaoshiung: http://www.khb.gov.tw 16. Port of Pusan: http://www.kca.or.kr 17. Port of Rotterdam: http://www.containershipping.com 18. Port of Long Beach: http://www.polb.com 19. Port of Hamburg: http://www.hafen-hamburg.de 20. Port of Anterwerp: http://www.portofantwerp.be 21. Port of Los Angeles: http://www.portoflosangeles.org 22. MaerskSealnd: http://www.maersksealand.com 23. P&O Nedlloyd: http://www.ponl.com 24. CMA CGM: http://www.cma-cmg.com 25. Hanjin: http://www.hanjin.com 26. NOL: http://www.nol.com.sg 27. Cosco: http://www.cosco.com 28. NYK Line: http://www.nyk.com 29. OSK Line: http://www.mol.co.jp 30. Hyundai: http://www.hmm.co.kr 31. World Ports: http://www.ports.com 32. World Cargo News: http://www.worldcargonews.com 33. UN Economic Commission for Latin America and the Caribbean, ECLAC: http://www.eclac.cl 34. Logistics Online: http://www.manufacturing.net 35. Ocean Freight: http://www.aviation-charts.com 36. Port Cargo Forecasts: http://www.info.gov.hk 37. Port CommunITy Rotterdam: http://www.pcr-info.nl 38. PortNet: http://www.portnet.com 39. GPS Information: http://www.srimap.com, http://www.zdnet.com, http://destinationcrm.com

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40. Cargo Protection Devices: http://www.tamper.com 41. E-Transport E-Commerce Solutions: http://www.etransport.com 42. Marine Line: http://www.line.net 43. Trade Card: http://www.tradecard.com 44. Bolero: http://www.bolero.net, http://www.boleroltd.com 45. Cargonet: http://www.cargonet.com 46. Gocargo: http://www.gocargo.com 47. Electronic Shipping Guide: http://www.shipguide.com 48. Synchronet AsiaMax: http://www.synchronetmarine.com 49. Trade Compass: http://www2.tradecompass.com 50. Tradenet: http://www.tradenet.com.sg 51. Cargoexchange: http://www.cargoexchange.net 52. Ocean Shipping Reform Act: http://www.itds.treas.gov, http://www.customslaw.com, http://www.lawoffice.com, http://www.nusa.net, http://www.seanet.co.uk, http://www.house.gov 53. Organising Transport: http://www.mbendi.co.za 54. Press Review-Infomarine: http://www.infomarine.it 55. Container Shipping: http://www.containershipping.com

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