Transport Sustainability Management Economic Sustainability - - PowerPoint PPT Presentation

Maritime Transport Sustainability Management

Economic Sustainability Aspects

Levers of change for sustainability

• Economic

Sustainability Aspects

Shipping Markets

• Freight market - agreements for the use of ship

and derivative contracts - FFA

• New construction market - purchase & sale of

new ships

• Buying and selling market - purchase & sale of

used ships

• Shipbreaking market - last sale of the ship
• Economic

Sustainability Aspects

Global container operators

Ow Owned ned and and char arter tered ed ships ps

200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000 APM-Maersk Mediterranean Shg Co CMA CGM Group Evergreen Line Hapag-Lloyd COSCO Container L. CSCL Hanjin Shipping MOL Hamburg Süd Group OOCL APL NYK Line Yang Ming Marine Transport… UASC K Line PIL (Pacific Int. Line) Hyundai M.M. Zim Wan Hai Lines Number of TEUS SHIP OWNERr Own Fleet Charters

Conce ncentr ntration tion of

• f the

e oper eration tion

• Economic

Sustainability Aspects

0,02 0,04 0,06 0,08 0,1 0,12 0,14 0,16 15,3% 13,1% 9% 5,1% 5% 4,3% 3,7% 3,3% 3,2% 3,1% 3% 2,9% 2,5% 2,4% 2,1%2%1,9% 1,9% 1,7% 1,1% Share of world liner fleet

• Economic

Sustainability Aspects

Movement of goods by sea: extracted from “Maritime Economics” Martin Stoppford 3rd Edition

Financial flows

• Owner-charterer (freight 1)
• Shipper-charterer (freight

2)

• Consumer/manufacturer

(purchase/sale)

• Cycle inversion for

manufacturing

End or intermediate consumers Shipperr Charterer Ship Owner

• Economic

Sustainability Aspects

Finantial Flows

Company B

• Economic

Sustainability Aspects

Definitions

• Shipper
• Charterer
• Voyage, time and bareboat charter party
• FFA – forward freight agreement
• Broker
• Construction shipyard
• Shipbreaking site
• Economic

Sustainability Aspects

Ships: dimensions and typologies

Commer mercial cial dimensions ensions

• Cape size
• Panamax/new panamax
• Supramax
• Handysize
• Handymax
• Suezmax

Constr struct uction ion dimension ension

• Length
• Draught
• Breadth
• Air draft
• Displacement
• Deadweight
• Lightship displacement
• Economic

Sustainability Aspects

Limitations to ship dimensions

Panamá amá Canal nal - Panamax amax Su Suez z Canal al – Su Suezmax zmax maxi ximum um sectional tional area ea 1006 06 m2

• Economic

Sustainability Aspects

Maritime transport indicators

• Baltic Dry Index (BDI) - Weighted index with

contract values for capesize, panamax, supramax and handysize

• There are separate indexes for each type of ship
• BCTI and BDTI – tanks
• BDI max 11793 in 20/05/2008
• BDI in 05/12/2008 = 663
• Economic

Sustainability Aspects

World fleet of bulk carriers

• Japan, Greece, Germany,

China and Norway control 50% of the fleet

• Bulk fleet structure is

highly fragmented (2100 companies control 9000 ships)

• Fleet adaptation involves

the entrance/exit of participants

• Economic

Sustainability Aspects

Maritime transport indicators

BDI I Evolution ution: : source stock charts

• Economic

Sustainability Aspects

Drivers of the freight market

• Number of ships available by type, number of ships

available for delivery, number of ships being dismantled

• Demand for raw materials: levels of industrial

production, agricultural production, fuel consumption, ore, etc.

• Seasonal variations
• Bunker prices
• Choke points
• Market sentiment
• Economic

Sustainability Aspects

• Economic

Sustainability Aspects

Shareholder performance of the freight market

Perfor

• rmance

mance of

• f conta

tainer iner shipow powner ers Performance

• rmance of
• f bulk shipowner
• wners
• Economic

Sustainability Aspects

Used ships market

Reasons for sale:

• Adjust the mix and capacity

(route*type) of each ship

• Market expectations
• Obsolescence and fleet

renewal

• Financial engineering
• Economic

Sustainability Aspects

Used ships market

Reasons for buying 2nd hand:

• Answer to a sudden

increase in demand

• Entry opportunity in a new

market

• Market expectations
• Economic

Sustainability Aspects

Used ships market in 2012

• Economic

Sustainability Aspects

New ships market

Purchase of new ships:

• The need for ships not

available in the used market

• Ships for specific projects

(e.g. drilling vessels)

• Investment
• Economic

Sustainability Aspects

New ships market

Purchase contract:

• Price
• Ship specifications
• Contract terms and

conditions

• Financing

Global LNG Ship Orders Piling Up in Shipbuilding News 14/05/2015 Ship owners around the world are placing

• rders for new vessels one after another.

Not a few of them are expected to go to Korean shipbuilders.

• Economic

Sustainability Aspects

Containership fleet adaptability

• Economic

Sustainability Aspects

Construction of new ships in 2014

Source: IHS; Shipbuilders' Association of Japan Note:

data

5000 10000 15000 20000 25000 China South Korea Japan Philippines Taiwan Germany Vietnam Romania Italy U.S. Brazil 22.682 22.455 13.421 1.878 600 519 375 326 312 293 212 Orders in thousand gt Source: IHS; Shipbuilders' Association of Japan

Shipbreaking market (scrapping)

Shipbreaking market:

• Valorisation in function of

light displacement

• Price per ton rather volatile
• Retrofitting unfeasible
• Scraping due to regulation

(phase out)

• Economic

Sustainability Aspects

Scrapping market

• Economic

Sustainability Aspects

Port Interface

• Infraestructures: ports and

canals

• Port authority
• Port operador
• Port terminal
• Challenges due to the

change in fleet profile

• Small scale local ports
• Big scale local ports
• Regional ports
• Regional distribution

centers (hubs)

• Transhipment ports
• Economic

Sustainability Aspects

5 10 15 20 25 30 35 40 35,28 33,9 24,03 22,3 19,45 18,65 16,62 16,16 15,24 14,05 12,3 10,94 10,59 10,59 1,23 0,67 Moviment in milions of TEUs

Major world ports in container handling

2014

• Economic

Sustainability Aspects