Abdulla Wanis Tabet / July 2017 - Global Maritime Hub · ©Abdulla Wanis Tabet / July 2017 ....
Transcript of Abdulla Wanis Tabet / July 2017 - Global Maritime Hub · ©Abdulla Wanis Tabet / July 2017 ....
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The importance of maritime freight transport
©Abdulla Wanis Tabet / July 2017
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PRESENTATION OUTLINE
TRADE COSTS INTERNATIONAL TRADE FLOW
TRANSPORT COMPONENTS TRANSPORT COST STRUCTURE
TRANSPORT MODES WATER TRANSPORT
WATER TRANSPORT CHARACTERISTICS
WORLD SEABORNE TRADE SIZE
MARINE CARGO WORLD MERCHANT FLEET
LIQUID BULK (ENERGY) TRANSPORT
DRY BULK TRADE
CONTAINER SHIPPING
OTHER CARGOES
THE LOGISTICS TECHNOLOGIES IN THE FORESEEABLE FUTURE
CONCLUSION
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Trade costs
Transaction
Tariffs
Time Transport
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Transport
Infrastructure Transport
Services
Transport
Environment
Transport and transport component TRANSPORT is process of the physical movement of materials / persons
between points in the supply chain
Transport conditions are : safe , efficient , reliable , and suitable
movement of persons and goods over time and space.
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Necessity to transport::
1) Place Utility.
2) Employment Opportunities.
3) High Standard of Living.
4) Distribution of Perishable Goods.
5) Industrial Development.
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Transport modes
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Transport Modes
Air
Water
Land intermodal
River
Pipeline
Rail Road
Sea
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Mode Fixed Costs Variable Costs
Rail High- Equipments, Terminals ,
Tracks ,etc
Low
Road Low-Highway provided by
government
Medium-Fuel , Maintenance, etc
Water Medium-Ships and Equipment Low-As capacity is huge
Pipeline Highest-Right of the way ,
construction, Equipment for
control station and Pumping
capacity
Lowest-Insignificant labour costs
Air Low-Aircraft and cargo handling
systems
High- Fuel, labour, Maintenance
COST STRUCTURE OF EACH TRANSPORT MODE
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Choice of Modes * Choice of mode depends on a variety of factors such as :
nature and volume of materials to be moved and distance.
SPEED VOLUME SECURITY COST TYPE OF GOODS
HIGHWAY High Low Medium Low All
RAIL Medium High High Medium Commonly for heavy and
large loads
WATER Low Very High High Low Commonly for heavy and
large loads
AIR Very High
Low
Very High
High urgent, perishable goods or
of high value
MULTIMODAL High Medium Medium Medium All
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World Transport modes usage
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• Water transport uses ships and large commercial vessels that
carry billions of tons of cargo.(85-90% international trade)
• water transport is used primarily for the movement of large bulk
commodity shipments and it is the cheapest mode for carrying
such load. (economies of scale )
• Water transport is particularly effective for significantly large
quantities of goods that are non-perishable in nature and for
cities or states that have water access.)locative benefit)
Water transport
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Water transport characteristics
It is a relatively economical mode of transport for bulky and heavy
goods.
The cost of maintaining and constructing routes is very low because most
of them are naturally made.
It promotes international trade.
The depth and navigability of rivers and canals vary and thus affect
operations of different transport vessels.
It is a slow moving mode of transport and therefore not suitable for
transport of perishable goods.
It is adversely affected by weather conditions.
Sea transport requires large investment on ships and their maintenance.
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Basic types of water transport;
* Rivers and Canals →
← * Coastal Shipping
* Ocean Transport →
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MARITIME TRANSPORT
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World seaborne trade as @ 1/1/2015
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Seaborne Trade is exchange or transfer of capital, goods, and
services via sea across international borders or territories
World trade demand and its value by 2020
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Commodity prices decreased over last 24 months
which promote maritime transport
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saG
Maritime cargoes
Other Containerized Dry Bulk
Minor Major
Liquid Bulk (Energy)
Product Crude
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Main maritime routes
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World merchant fleet as @ 1/1/2016 (ISL ,2016)
Bulk32.9%- GC 21.2% -Crude13.7% -Con10.2%-Ch10.1% -RORO-PAX8.4% -Gas3.4 %Total 51409
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WORLD OIL (ENERGY) TRANSPORT
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Tankers
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Chemical tanker Product
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LPG
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Bulk carriers
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Bulk carriers (dry bulk)
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Dry bulk cargoes
• Major Dry Bulks:- Iron Ore
Coal (Steam for Power) (Coking for Steel Production)
Grain (Wheat, Corn, Soya, Sorghum, etc)
Bauxite and Alumina
Phosphates
Minor Dry Bulks:- Forest Products such as
Packaged Timber, Newsprint , Paper Pulp & wood chips.
Animals Feed & fertilizer
Sugar, Rice , salt
Cement, gypsum & sulphur
Steel products, steel scrap, non-ferrous metal ores.
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Dry bulk trade 1992-2012
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Dry Bulk Trade Growth 2005-2020
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Container shipping
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Container ship evolution (generations)
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Containerization advantages
1- Standard transport product
2- Flexibility of usage
3- Management
4- Economies of scale
5- Speed
6- Security
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Global containerized trade 1996-2015
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World market share % Fleet capacity
(Million TEUs)
Company
15.2 3.048 MAERSK
13.4 2.678 MSC
9 1.794 CMA CGM
4.8 0.953 EVERGREEN
4.7 0.945 HAPAG-LLOYD
4.3 0.864 COSCO
3.5 0.700 CSCL
3.11 0.629 HAMBURG-SUD
3.10 0.620 HANJIN
3 0.592 OOCL
Largest Container Shipping Companies as @ 1/1/2016
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Containerization challenges
1- Site constraints
2- Infrastructure costs
3- Stacking
4- Thefts and losses
5- Empty travel
6- Illicit trade
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Other cargoes (general cargo)
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Drones
Driverless vehicles
robotics
3-D printing
Wearable technologies
The logistics technologies in the foreseeable future
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Total price of any Commodity/product includes
initial price 60-65% + added Value 35-40%
Transport cost is one of the most important added value to the commodity/product final price
Factors affecting choice of any transport mode are : fixed and variable costs , speed , security, volume and type of goods
Temporal and locative benefits come @ the top of transport benefits
Maritime transport achieves economies of scale in comparison with other modes of transport
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About 80% of international maritime transport activities (fleet) are dry & liquid bulk beside containerization
Demand for maritime transport grows steadily over last decades and carrying about 85-90% of the international trade volume
Far East ports are the largest and busiest ports in the world due to region’s economic boom
Continued declining of commodities prices will promote international maritime transport
Drones and IT technologies will affect transport and sea port activities in the near future
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References
companies/-/logistics09/03/2016http://cerasis.com/
Cerasis is a third party logistics company
www.clarkson.com
www.cruisemapper.com
wiki/2259-largest-container-ships
www.drewry.com
www.unctad.org
www.utk.edu
University of Tennessee, Knoxville’s Global Supply Chain Institute
www.wto.org
©Abdulla Wanis Tabet July 2017