Shipping Company

Presented By-
Niketa Singh
Overview of Shipping Industry
Around 90% of world trade is carried by the
international shipping industry

The container shipping market is projected to growth at

an annual rate of 8.4% until 2013.

Demand for crude oil tankers to increase by 4.7% and

3.3% in 2010 and 2011, respectively.

There are around 50,000 merchant ships trading

internationally, transporting every kind of cargo.

The world fleet is registered in over 150 nations, and manned

by over a million seafarers of virtually every nationality
Industry Trends
Positive Trends
 Represents 90% of the world
trade.
 Most effective form of
transportation that costs only 11%
and 20% of what transportation by
roads and rails costs, respectively
 High return on capex of 25% per
year
Future Prospects
 Proactive developments for making
ships environmental friendly
 Long term planning for recruitment,
education and training skilled seafarers
 Improved propulsion technology:
E-navigation, improved computerized
cargo handling
Negative Trends
 Shortage of skilled labour and
management
 Poor image of the industry
 Pollution: CO2 emissions -
dispose of waste - subsea
noise.
 Cyclical industry.
Future Risks
 Recession
 Political Instability
 Security
 Long Delivery Period of new ships
 Capacity bottleneck at some ports
 Hapag-Lloyd
Germany's largest ocean liner shipping company

Formed in 1970 when Hapag and Lloyd merged

Involved with chartered aircraft in 1973, at the end

of 1991 Hapag-Lloyd owned 20 aircrafts

Core Business Strategy in 1990’s - Deep Sea Liner

Shipping

In 2000, Hapag-Lloyd achieved its best results

In 2005, Hapag-Lloyd acquired the British-Canadian

container line CP Ships
 Key Business Activities

Total 137
 300 sales offices in  Owns many  Transport
Vessels
114 countries and Cruise ships Services
77 liner service Leased 9  Low-fare, high-  Insurance
network Vessels frequency airline Services
 Most of their fleet Chartered 70  Merger with
is new and built in Vessels TUIfly in
the last decade Owned 58 2007
 Majority of the Vessels
vessels have flag
of Germany Total 1025
Containers TTEU
 Swot Analysis
Strengths
S
 Younger fleet. Weaknesses
W
 Balanced, company-owned
 Opportunity cost:
and chartered vessels.
lower risk, lower
 Focus on customer needs. return

 Strong business processes  Operational risks

and IT.
 Financing risks
 High Operating Cash flow

 Optimum Utilization of
available ship and
container capacities.
O Opportunities

 Global container tranpsort  AP Molar Mearsk : Provides

volume is growing at a fast Integrated Supply Chain
rate. Services & has tankers as well
 CMA CGM: Provides logistics
 Scope of expansion into
T Threats and multimodal services
related businesses.
 Political instability.

 Global competition.

 Technological threats.

 Global transport volume is

dependent on economic
developments around the
world.

 Freight rates fluctuate

heavily.
 Recommendations
 IT innovations in container shipping

 Equipment deficit action planning

 Cooperation with International partners

while developing technology

 Sustainability and energy efficiency