WORLD TUNA TRADE CONFERENCE AND EXHIBITION Thue Barfod Bangkok, - - PowerPoint PPT Presentation

15TH INFOFISH WORLD TUNA TRADE CONFERENCE AND EXHIBITION

Thue Barfod Bangkok, May 2018

AGENDA

• Remote Container Management RCM
• Maersk Line’s Trade Finance Initiative
• Maersk Line’s Block Chain Initiatives
• A Historic Day
• Maersk Line’s view on the World of Fish and Seafood

The historical challenges

Lack of Supply Chain Transparency No data Limited ability to make the right decisions

The solution

The solution

How does Remote Container Management (RCM) work

Shipment Overview

• Status of all reefer containers
• Ability to export overview to excel
• Sorting and search functions for ease of use

Journey Assessment for each container

• Full details on the status of each parameter

Temperature Graph

• View temperature trends for supply and return air.
• Ability to see full journey or data for specific dates
• Graphs for special characters where applicable (O2, CO2, Humidity)

Map

• GPS Location of each container
• Full zoom capabilities, ability to see actual street location on land.

Email notification

• Customers can sign up to receive a daily compiling any new

notification for the day.

Basic Version (No Additional Charge) Premium Version (Paid)

All information in Basic version Datalog Download

• The ability to download a complete history of all data points for

each container.

• Hourly readings and more data points (probes, etc)
• Access is subscription based and cost is figured by customers

annual volume.

Lowering BARRIERS TO TRADE Maersk Line’s Trade Finance Initiative

=

Complex relationships Wasted resources Lost time Lack of status Unfavorable terms Collateral heavy

The structure of modern trade can be difficult to navigate

Why not work with a single partner who provides you both the money and goods as well as VIP benefits?

With Maersk, customers get security and simplicity

Export Financing

1

Reduce Complexity

• One Stop Shop for shipping and

finance.

• Reduced time waste
• Get booking priority
• Reduced administrative costs.
• Simple process for disbursing

funds.

• Single window for problem

resolution.

2

Get Funded Earlier

• Financing based on physical

goods, not documents.

• Pre-Post shipment conversion on

average 7-10 days earlier than banks.

• Reduction of the working capital

gap.

3

Avoid Collateral Traps

• Financing based on merits of the

cargo.

• No additional paid up capital or

collateral required.

• Grow without the concern of

banks closing out.

4

Easy to Implement

• We provide you up to 80%

funding of your trade.

• We are open to consider DP &

DA transactions.

• We are able to offer pre-shipment

and usance financing.

• We also provide up to 90% credit

insurance.

5

Access Global Market

• We offer the largest service

network of all liner shipping companies.

• We have more coverage in the

local market than all of the major banks.

Our core value propositions

Lowering BARRIERS TO TRADE Maersk Line’s Block Chain Initiatives

Time Consuming

1.

Today, as many as 200 interactions involving more than 30 people are required for every shipment

2.

Paper documents can take days to move between relevant parties, with delays compounding across those 30 parties - Verification and processing of Bills

• f Lading can take weeks

3.

Delays in finalizing documentation can stop containers being loaded on ships or released to consignees

Expensive

1.

Each new party to a shipment increases costs. Transferring and Handling costs are up to $200US per Bill of Lading, with other paper documents pushing the processing costs ts up to $100 1000US US per shipment

2.

Manpower requirements for dealing with these different documents are high

3.

Long processing time means higher working costs of capital

Risks of a Paper System

1.

Loss of paper documents increases risks and delays in getting shipments

2.

Forging of paper documents, estimated to cost Billions

• f Dollars annually

3.

Rigidity in paper Bills of Lading mean Short Shipments cannot use banking tools to reduce risks

4.

No one party has visibility over all the information in the shipment – not even the shipper themselves.

BARRIERS TO TRADE FOR SHIPPERS

What is Blockchain

1.

An electronic, decentralised record of transactions between shippers, carriers, customers agents, and more.

2.

The record is a cryptographically secured database that uses unhackable algorithms to protect identity and property.

3.

The record is continuously updated to ensure real- time information is available to all relevant parties at all times.

Why Shippers Win

1.

Unimpeachable security means shippers can be sure their property is safe and can make decisions accordingly.

2.

Quicker processing time reduces delays to getting shipments to consignees; meaning cargo arrives on time.

3.

Fewer parties to the shipment means cheaper shipping.

4.

Transparent information made available in real-time means shippers can know now where their shipment is as it advances through the supply chain.

Why Trade Wins

1.

Customs processing is made easy, as agents and

• fficial globally can access and process data

immediately, without needing to wait for paper to arrive.

2.

Trade is easier, as there are fewer chances of things going wrong.

3.

As new digital opportunities become available – like Maersk Line’s Remote Container Monitoring – the Blockchain can incorporate this data immediately, adding further visibility to the global supply chain.

A BLOCKCHAIN SOLUTION

NEXT STEPS – BUILDING PARTNERSHIPS

Maersk Line and IBM Inc have announced a partnership to develop Blockchain technologies for shipping.

Technology Partners

Maersk Line will work with shippers and ports globally to build this digital solution to trade barriers, leveraging knowledge and experience from a range of countries and industries.

Shippers and Ports

Maersk Line and IBM will work with governments and agencies globally to digitize shipping to help increase compliance, reduce fraud, and make trade easier.

Governments

HOW THE WORLD IS DEALING WITH THE BLOCKCHAIN

• Consortium of start-ups,

financial firms and tech giants

• Established to review the

technology and its impact

• Created Global Blockchain

Council

• SEVERAL FINANCIAL INSTITUTIONS & COMMODITY CENTERS HAVE

ACKNOWLEDGED THE BENEFITS OF THE BLOCKCHAIN…

• Contributing to funding

rounds raised by distributed ledger startup Ripple

• Digital Currency Group and

Digital Asset Holdings.

• Blockchain investment

conglomerate

• Japanese exchange group
• Partnered with IBM as a user
• f its Blockchain-as-a-Service

(BaaS) offering.

• $10 Million investment in

industry startup ‘Digital Asset Holdings’ in January as part

• f its R&D efforts.
• Operators of Toronto Stock

Exchange

• TMX Group hired Ethereum

project Co-founder Anthony Di Loro in March 2016

• Launched blockchain based

private share trading platform Linq in 2015

• $75 Million funding in

Blockchain based services firm Coinbase in 2015

A Historic Day

NOVEMBER 30TH 2017.

Two top tier shipping companies, each with over 100 years in the industry came together to enhance their separate customer offers and cement their global position

Maersk Line’s view on The World of Fish & Seafood Future Trends

World Of Fish and Seafood

• Truly global industry with cargo moving inter regional,

East <-> West, South <-> North and from Emerging Markets <-> Developed markets

• Price range varies from high end sashimi to cheapest

available protein

• Moves throughout the year -> can extend the seasonal

loadings from the Southern hemisphere

• Volumes subject to
• Catch
• Weather
• Political environment (Sanctions)
• Sustainability
• Economic conditions (US$ and Oil economy

challenges such as Nigeria and Angola)

• Consumer patterns / concerns
• Cargo moves in multiple transport modes and at a wide

range of Temperatures

• Fish and Seafood will remain amongst the cheapest proteins available.
• Human consumption or utilization driven by:
• Price & availability in developing countries
• Developed countries continued focus on health & diet.
• In volume terms, Aquaculture will soon overtake the wild caught segment.
• Increasing movement of processing & value adding activities towards EEZ where the fish is caught, or alternatively

frozen & processed at sea.

• With the increase in costs in the traditional processing countries, facilities to the extend possible will begin to relocate.
• Increasing Containerization however the Bulk vessels will never fully disappear.
• Continuous focus on waste reduction.
• Sustainability and traceability requirements will continue to increase.
• The NGO community further increases its focus on the segment; from the fishing itself, through the supply chain to the

retailer and the end consumer.

FUTURE TRENDS – WE WILL CONTINUE TO SUPPORT YOUR GROWTH!

The End Thank you