MARITIME ECONOMICS

THE FAMILY OF CONTAINER SHIPS FULL CONTAINER VESSELS

 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusons
 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusons
Introduction

Guess what???
 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusons
 History

Production
growth

International
trade
development

Cargo protection
damage decrease

Increase of
shippers demand

Cost reduction by
automation
 History

Containerization has its origins in early coal mining regions in England beginning in the
late 18th century.

Containerization has increased the efficiency of moving traditional break-bulk cargoes

significantly, reducing shipping time by 84% and costs by 35%.

IDEAL X was the first commercial successful container ship in 1956. Capacity = 58 ctnrs
Nowadays containerships capacity reaches 18000 TEUs (MAERSK Triple E-class)
 History

T-2 oil tanker

On April 26, 1956 the Ideal X carried 58 containers from Port Newark , New Jersey,
to Port of Houston, Texas, where 58 trucks were waiting to be loaded with the
containers
 History

Container ships evolution

http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/containerships.html
 History

THE SPEED
Some ships with huge power plant(s) and multiple screws could achieve speeds up to 28 knots.

In 1972/73 Sea-Land took delivery of eight 33-

knot containerships capable of carrying 1900
TEU. This speed was realized by installing two
steam turbines and two screws.

However, they turned out to be an economic

failure when fuel prices went skyward and the
vessels were sold to the U.S. military.

Nowadays service speed is in the 24-26 knot

range.
SS Regulus
 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusons
 Technical Aspects

INFRASTRUCTURE & PORT CALLS

Base Ports (Hub) &

Port-to-port service
Feeder Ports

Port had the control of the cargo,
Vessel went to the port to get cargo,
There was always a vessel looking for
cargo, so port did not invest in
equipment,
Consequences: Vessels navigating
below their capacity,
Ports with low performance.
Liner companies took the control,
Started to plan the itinerary which
gave economic advantage (optimized
vessel capacity = lower cost),
Consequences: competition between
ports to attract liner services,
improvement in port investments,
Improvement on performance =
efficiency and productivity.

...then things
changed

Source: STOP, F. (2009) Maritime Economics (3rd Edition) London and New York
 Technical Aspects

INFRASTRUCTURE & PORT CALLS

Modern container ports can stretch over vast areas of The Port of Singapore handles a vast array of cargo,
land and handle millions of tons of cargo each year. including containers and conventional and bulk cargo

Port designed to attend the

demand of shipper lines.
Source: http://www.ship-technology.com/features/feature75321/feature75321-2.html
 Technical Aspects

Container Vessels
Projects 1. bridge castle front,
2. deck containers,
3. foremast and mast top,
4. forecastle,
5. insulated containers in holds,
6. container refrigeration ducts,
7. double hull composed by a complex
arrangement of steel plates and
strengthening beams
8. passageway

Ship Container = complex engineering

project which should be taken in
consideration:
- Safety
- Balance and stability
- Resistance against the nature forces,
- Profitability & Capacity, etc Bays / Rows / Tiers

http://forshipbuilding.com/ship-types/container-ship/
 Technical Aspects
Cargo Holds

EFFICIENCY = ships are specially

constructed to speed loading and Cell Guides = strong vertical
unloading, and to efficiently keep structures constructed of metal
containers secure while at sea. installed into a ship's cargo holds

CARGO PLAN = Is the key to minimize the vessel time on berth

http://en.wikipedia.org/wiki/Container_ship
 Technical Aspects
LASHING SYSTEM

Numerous systems are used to secure containers aboard ships, depending on factors
such as the type of ship, the type of container, and the location of the container.

Vessel and Cargo Safe!

In general we have 3 systems:

- lashing systems (secure containers to the ship)
- locking systems (the effectiveness of lashings is increased by securing containers to each other )
- buttress systems ( = pillar = used on some large container ships - system of large towers attached
to the ship at both ends of each cargo hold)

http://en.wikipedia.org/wiki/Container_ship
 Technical Aspects
INCIDENT - LASHING SYSTEM
 Technical Aspects
CONTAINER - TYPES

Dry storage container Flat rack container Open top container Tunnel container

Open side storage container Refrigerated ISO containers Tanks Car carriers

According to Drewry Maritime Research:

Global container fleet = 32.9 million TEU in 2012**

Dry container 92%, refrigerator 7%, tank 1%

http://www.marineinsight.com/sports-luxury/equipment/16-types-of-container-units-and-designs-for-shipping-cargo/
 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusons
 Operations

WHAT TO DO TO TRANSPORT CARGO IN A

CONTAINER VESSEL?
 Operations

1st Step

The Owner decides attend the demand using the maritime modal.

This demand can be domestic (cabatoge) or an import / export operation.

 Operations

2nd Step

Check which shipper line could attend with the best conditions (price,
route, schedule).

Should be in accordance with what was planned.

 Operations

3rd Step

Inform the shipper line how many containers and what kind of goods will
be loaded. Shipper line will inform your Booking number.

Booking Number: reference number of your reservation that contains type of container,
which vessel, dead line, Origin and Destination Port.
 Operations

4th Step

With this #Booking number# you can provide the pick up of your empty
container from the depot.
DEPOT = is the local that shipper line storage your empty and full containers.
 Operations

5th Step

Load the cargo inside the container in this stage its necessary to arrange
all details to load the cargo in a safe way.

Plan whats necessary to maintain the integrity of the cargo and vessel during navigation.

Steel Coil = 12 ton

 Operations

6th Step

ORIGIN PORT load the FULL container in the vessel.

Attention to the dead-line to avoid losing the ship.

 Operations

7th Step

During your cargo navigation its possible to track & trace.

This information comes from the Shipper Line.

 Operations

8th Step

DESTINATION PORT UNLOAD the containers

Shipper Line gives some free days to pick up the FULL container and then return EMPTY in perfect
condition. In this moment, DEPOT makes an inspection in the container, and if detected any damage
caused by the cargo owner will pay this cost.
 Operations

9th Step

The terminal UNLOAD the cargo.

Use appropriate equipments to unload in a safe way and without damage.

 Operations

10th Step

Final destination

Lessons learned and check which items shoud be improved!!

 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusons
 Market of today

Trends & Key Development of Global Container Ship Industry:

How it looks now?

Containerization has rapidly increased over the

past 30 years;

Standardization of transports constantly

increases the intermodal transport from door-
to-door, improves transit and turnaround times
and reduces cargo damage;

Containers continue to replace bulk and other

forms of shipping goods, especially with
specialized and higher value-added products;

Sophisticated systems and controls are the key

in creating a competitive advantage for
container shipping companies.
 Future of
Market Vision
today

The Role of Container Shipping on the Global Trade

In comparison with DWT share %16 of the

of vessels and the share of the seaborne trade
value carried, container ships tonnages are
carry 27 more seaborne trade containerised.
than dry bulk carrier.

From the economic

perspective, rise of the
In terms of value of the costs and low margin of
good, container shipping earnings enforce
account for more than companies to make
50% of the global trade. alliances and oligopolies.

Source : Review of Maritime Trade 2012 UNCTAD, EU Commission Press 28/03/2012

 Market of today

Global Container Trade 1996-2013 (millions of TEU and annual growth)

Source : Review of Maritime Trade 2012 UNCTAD

 Market of today

Distribution of Container Ships among the Companies

Source : Alphaliner Annual Review 2012

 Market of today

Trends & Key Development of Global Container Ship Industry: what it

is challenged by?
NEW SHIPPING ALLIANCES
TOP 3 container shipping companies of the
world CMA CGM, Maersk Line and MSC
Mediterranean Shipping Company SA have
agreed to establish a long-term operational
alliance on East West trades, called the
P3 Network.

The aim is to improve and optimize

operations and service offerings.

The P3 Network will operate a capacity of

2.6 million TEU (initially 255 vessels on 29
loops) on three trade lanes: Asia Europe,
Trans-Pacific and Trans-Atlantic.
 Market of today

Trends & Key Development of Global Container Ship Industry: Challenges

NEW SHIPPING ALLIANCES: how are going do this?
42 % of the Asia-Europe
market share
24 percent of the
transpacific routes

Maersk Lines Lars

Mikel Jensen will be
the organizations
CEO

Staff of approximately
200 will run the alliance Between 40 and 42
from offices in London, percent of all transatlantic
UK and Singapore crossings
 Market of today

Latest developments of Global Container Ship Industry: Facts and Figures

 Market of today

Trends & Key Development of Global Container Ship Industry: what it is

challenged by?
Pricing volatile and
demand driven, at the The container
same time fuel cost and market is
is unpredictable that struggling to
makes margins volatile. handle surplus
capacity in a
period with
low demand
growth and an
orderbook
entirely filled
by large post-
Container shipping dependent on global trade, subject panamax
to economic fluctuations and is extremely seasonal, vessels.
that increase uncertainty and limited ability of the
shipping companies to influence the situation.
 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusons
 Future Vision

Gigantic Container Ship Circumnavigating Around World

Modified version of Emma Maersk

Carrying capacity 18.000 TEU

400 m. length , 59 m. beam , 14.5

m. draft , 165.000 DWT

50% less CO2 per container

compared to average of the market

Constructed by Daewoo
Shipbuilding & Marine Engineering

Source : www.worldslargestship.com
 Future Vision

Malacca-max : The New Opportunity or Escapade

Max Draught 21 m. , 400.0 m. length , 60.0 m. Beam , 18.000+ TEU Capacity

Opportunities Threats
Operation cost per Twin propulsion
container goes down requiring more
The lesser ship the maintenance
lesser CO2 emissions Port limitations
Expected acceleration Utilisation of capacity
in economic growth Oversupply in
Competitive advantage container market
Too many eggs in one

Source : Long-Term Trends in Container Shipping the Revised Fourth Revolution (Ashar, 2012), The future of containerization: perspectives from maritime and inland freight distribution (
Notteboom, Rodrigue 2009) , www.containershipping.com , The feasibility of mega container vessels ( van Ham, 2005)
 Future Vision

World Merchandise Growth Trade and GDP*

It is expected to be seen a recovery after the crisis

GDP growth of among the countries The positive consequences of
is expected to increase in 2014 , expanding to container shipping
consumption is forecasted to be core can be seen in the next years.
factor of the growth.
80% of world trade by volume is carried by sea
Source : WTO 2013 Press Release , 19 September
 Future Vision

Projections of Global Trade in terms of TEU(1)

Source : Data Hub Trade Statistics 2013, Lloyds List

 Future Vision

Projections of Global Trade in terms of TEU(2)

Source : Data Hub Trade Statistics 2013, Lloyd List

 Future Vision

Alterations of Global Trade Pattern in the Future

Russia - Brasil India China Republic
of Korea will comprise more than 50%
of the total grow GDP between 2011
and 2025. ( average %4.7 increase per
year for developed countries %2.3).
It is forecasted that by 2050 60% of
exports will go from developed Asia
to emerging Asia. That means the
future centre of trade will be South-
South trade.

It is expected that Asian countries Acording to OECD report, by 2030

bloc will take lead from NAFTA and main trade corridor will not include
Eurozone by 2015 US and Europe but extend Asian side
Thailand and Vietnam
Source : Review of Maritime Transport 2012, UNCTAD
 Future perspective

For surviving in the storming market environment, container shipping

companies are advised to keep the following route

To be proactive
and flexible

Technical
progress in
line with
infrastructure
development

Easiest for
customers to do
business with
 Table of Content

Introduction

History

Technical Aspects

Operations

Market of Today

Future Vision

Conclusions
 Conclusion

The container service is constantly changing to meet the needs of trade.

By using containers to mechanize the transport of general cargo, it has, in

Adam Smiths words opened the whole world to a market for the produce of
every sort of labor
Source: STOPFORD, M. (2009) Maritime Economics (3rd Edition) London and New York

God must have been shipowner. He placed the raw materials far from where
they were needed and covered two thirds of the earth with water.
Erling Naess

Whosoever commands the sea commands the trade ; whosoever commands

the trade of the world commands the riches of the world and consequently the
world itself
Knight Sir Walter Raleigh, 1650
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