Container Part of Maritime Leaders Shipping Leaders ......Container Shipping Leaders 22 June 2020...
Transcript of Container Part of Maritime Leaders Shipping Leaders ......Container Shipping Leaders 22 June 2020...
Container Shipping Leaders22 June 2020 • 15:00-15:45 BST
Part ofMaritime Leaders Webinar Week22-26 June 2020
Presentation documents:Page 2: Andrew Abbott, Atlantic Container LinePage 7: Henning Schleyerbach, Digital Container Shipping AssociationPage 12: Jan-Olaf Probst, DNV GLPage 18: Alessandro Menezes, Vinmar
Right-Sizing Business:
Can You be Too Big?
MARTIME LEADERS WEBINAR WEEK
THE CURRENT REALITY
IN TIMES OF MARKET DECLINE, THERE IS NOT ENOUGH CARGO AROUND TO FILL A BIG SHIP – THERE IS ALWAYS ENOUGH CARGO TO FILL A SMALL SHIP
EVERY LARGE CARRIER HAS BLANKED SAILINGS – THE SMALL CARRIERS HAVE MAINTAINED FULL SCHEDULES
EVERY LARGE CARRIER IS LOSING MONEY –THE SMALL CARRIERS STILL MAKE MONEY
MANY LARGE CARRIERS NEED GOVERNMENT SUPPORT TO SURVIVE NOW – THE SMALL CARRIERS RELY ON THEMSELVES
HOW CAN YOU BABYSIT SO
MANY SHIPMENTS?
CARRIER SHIPSTEU
CAPACITYAVERAGE TEU SIZE
APM-MAERSK 657 3,999,000 6,086MSC 548 3,663,000 6,684COSCO 467 2,862,000 6,128CMA CGM 484 2,673,000 5,524HAPAG LLOYD 238 1,716,000 7,210ONE 212 1,569,000 7,402EVERGREEN 189 1,215,000 5,554YANG MING 92 598,000 6,498HMM 67 552,000 8,235PIL 111 350,000 3,157ZIM 58 284,000 4,904WAN HAI 91 236,000 2,598
ECONOMY OF SCALE ILLUSION
BIG SHIP BENEFIT: LOWER UNIT COST IF FULL
THE PRICE YOU PAY:
• FOCUS ON FILLING SLOTS NOT PROFITS• CUSTOMERS ARE NUMBERS, NOT PEOPLE• SERVICE DETERIORATES BECAUSE LESS
PERSONAL – SO WHOLESALERS TAKE OVER THE END CUSTOMER
• HIGH VOLUME-LOW PROFIT CUSTOMERS GET BETTER SERVICE THAN LOWER VOLUME-HIGH PROFIT CUSTOMERS SO YOU LOSE THE MOST PROFITABLE CARGO
• YOU CAN’T CALCULATE ACTUAL COSTS• YOU TAKE EVERYTHING AND PRAY THAT THE
AVERAGES WORK OUT IN THE END
WHAT DOES THE
CUSTOMER WANT?
CHEAPEST PRICE – SEAMLESS SERVICE
HOWEVER, IF THINGS GO WRONG:
• VOYAGE IS LONG – SHIP IS FAR FROM A REPAIR YARD
• MOTHER NATURE ALWAYS CAUSES PROBLEMS
• PORT CONGESTION IS UNFORESEEN
• CUSTOMS CAUSES DELAYS
A MACHINE CAN’T FIX THE PROBLEMS.
Container Shipping LeadersHenning Schleyerbach, COO of DCSA
June 22, 2020
Digital Container Shipping Association at a glance
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Members represent 70% of global container tradeFounded in 2019, HQ in Amsterdam
To enable system interoperabilitythrough open source standards
Vendor neutral
Non-profit
COVID-19 highlights shortcomings of today’s supply chains
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NEXT 4-WEEK SPENDING INTENT
21%Everyday household goods
27%Groceries
10%Medicines
-13%Restaurants/takeout food
-12%Alcohol
-12%Apparel/footwear
-4%Books
-14%Electronics
CONSEQUENCES
Storagespace shortage Lower
demand &blanksailing
Impeded workforce
Less reliablesupply chain
Goodspile up
DISRUPTION
COVID-19
Longitudinal biweekly surveys of consumers across 17 countries. 1.000 respondents per country. Data update: 30-May-2020
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Global supply chains need collaboration and standardisation to enable:
Simplicity TransparencyMultimodal Reliability
It is easy to order and change shipping services using digital documentation and connected systems
Use self-service for fast, secure and automated collaboration
Collaborative awareness and decision making to manage changes
Real-time visibility of cargo location and status
Confidence in arrival time
Pro-active communication in case of exceptions
Responsive support across all stakeholders, also during a crisis (e.g. pandemic or cyber attack)
Transparency and trust between all parties in the supply chain
Solid access management following the need-to-know principle
Everyone clearly states and commits to their operational and commercial promises
Transport parties share data about their performance
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Thank you
DNV GL ©
Confidential
22.June 2020 SAFER, SMARTER, GREENERDNV GL ©
Confidential
MARITIME
Jan-Olaf Probst, Business Development, Executive Vice President
Container Shipping Leaders webinarSuitable fuel solutions beyond 2030
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22nd June 2020
DNV GL ©
Confidential
22.June 2020
Initial IMO Strategy on reduction of GHG emissions:Vision and ambitions
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Short-term 2018 – 2023
Tighter EEDI & SEEMP
Energy efficiency indicators
Speed reduction
National Action Plans
Mid-term 2023 - 2030
Energy efficiency measures for new and existing ships, using new indicators
Carbon pricing / MBM
Plan for low carbon fuels
Long-term 2030
Development of zero carbon fuels
New/innovative emission reduction mechanisms
DNV GL ©
Confidential
22.June 2020
Fuel availabilityCurrent production of possible ship fuels per year (relative energy content)
Some fuel alternatives can meet possible shipping demand for the next 10 years when a small growth in shipping applications is assumed
If a rapid demand in alternative ship fuel occur a strong increase in production capacity is needed for all fuels except LNG
Fuels from hydrogen and CO2(PtoF) are currently not produced in relevant quantities
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HFO,MGO assumed consumption 2020 (330 Mio t/a)
LPG production in 2015
LNGproduction capacity end 2018 (approx. 10% of natural gas production)
CH3OH (Methanol ) production capacity 2016
Bio fuel production 2016 (Bio Diesel and straight vegetable oil)
H2 production 2016
PtoF Power to Liquid and Power to Gas: CO2+H2 --> fuel
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22.June 2020
Fuel volume: How much space future fuels will need?
Todays ship fuel has the highest volumetric energy density
Hydrogen needs more than 4,5 times the volume of oil based fuel. In this regard not suitable for deep sea shipping
Other fuel alternatives are acceptable for deep see shipping with regard to required volume
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Reference energy density
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22.June 2020
Rules and RegulationsLNG as a fuel for merchant ships is regulated by IMO
International Code for Safety for Ships using Gases or other Low-Flashpoint Fuels
MSC.391(95), 2016 Edition
In force since 2017-01-01
– For LNG and CNG
Methanol and LFF oil fuels are under development
No other fuels are currently proposed
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Combustion engines for alternatives fuels
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22.June 2020
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Suitable fuel solutions beyond 2030
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Jan-Olaf ProbstE-mail: [email protected]: +49 172 419 2102