Global Container Shipping and GFFs- With Challenges and Marketing Opportunities
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TAPISH PANWAR
Content
Marketing OpportunitiesChallenges
Global Freight
Forwarder
SCM in Container Shipping
Container Shipping
Container ShippingTransporting goods by means of high-capacity, ocean-going ships loaded with Containers
Modern container shipping began in 1956, when Malcolm McLean, bought a steamship company with the idea of transporting entire truck trailers with their cargo still inside
In 1966, the vessel Fairland owned by Sea-Land sailed from the U.S. to Rotterdam in the Netherlands with 256 containers. This was the first international voyage of a container ship
20 foot (6.09 m), 40 foot (12.18 m) , 45 foot (13.7 m), 48 foot (14.6 m), and 53 foot (16.15 m
Container capacity is measured in twenty-foot equivalent units (TEU) or forty-foot equivalent unit (FEU)
A forty-foot equivalent unit (FEU) can be loaded with about 20 tons of cargo.
The containers are stacked on the ship with up to 8 containers stacked on top of each other on deck
Many container ships can comfortably carry more than 8,000 containers.
Liner VesselContainer Ships-
80% Liner Ships- 20%
PCPT/PCC/General
World Shipping Council
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Container Types and Evolution
New containership orders with US$15.5 billion worth of new
orders in 2013, and $10 billion this year. The money is being spent mostly on new ships of
13,000 TEU-plus
World Shipping Council
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Container Shipping & Sustainability60 percent of the goods by value Is
moved internationally by sea
each year
There are 5,085 container ships with total capacity of 19 millions TEUs in the global fleet among the total 6001 ships
90 percent of world trade happens
through sea
Nearly than 5,000 container vessels
transport over 134 million containers (TEU) around the world, every year
Container Shipping SCM in Container ShippingContainer Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Trade, Major Ports & Standing
2015 container shipping volumes are forecasted to grow by 5.5 per cent year on year across major trade lanes- Drewry Maritime Research
http://www.3plogistics.com/top25_ff.htm
Container Shipping SCM in Container ShippingContainer Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Global Fleet Operator standings
6,001 ships active on liner
trades, for 19,536,206
TEU
5,085 fully cellular ships
for 19,099,459 TEU
http://www.alphaliner.com/top100/index.php
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Supply Chain involving Container Shipping
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Supply Chain SignificanceReduce Costs• Inventory• JIT
Improve Coverage• Hub-Hub Connectivity• Last mile transport
Extend Control• Wider visibility of value chain
Induce Agility• Asset-light• Right allocation of resources
Plan for Contingencies• Accurate planning horizons• Better Risk planning
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Global Freight Forwarders
Less-than-container load
Multimodal ‘sea/air’
Industry specific solutions
Customs brokerage services
Trade consulting services
2016 outlook• Positive
Expected Growth• 6.8%
Greenshoots• Asia-Pacific• Middle East• South
America
Services offered by GFFs
Container Shipping SCM in Container Shipping Global Freight Forwarders
Shipper GFF/NVOCC Carrier
Transport Intelligence Report
Challenges Marketing Opportunities
Global Freight Forwarders
Management
Buying Power
Overheads
Technology
Transport Intelligence
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Global Sea Freight Forwarding Market
Kuehne + Nagel leads the pack with around 7 bn Euros in Revenue and 3.5 million TEUs
Followed by Deutche Post+ DHL at around 4 bn Euros and 2.8 million TEUs
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges Marketing Opportunities
Challenges faced by Shipping Industry
Container Shipping SCM in Container Shipping Global Freight Forwarders Challenges
Changing Customer
Needs
Capacity Utilizatio
n
Macro-economic Scenario
Talent Retention
Mac
ro C
halle
nges
• Falling Rates• Declining Margins per box• Higher buyer power
Declining volume Growth
• Unused capacity • Falling RoI
Over-capacity conundrum
• Higher buyer power leading to specific demands• Consortium of buyers to push the prices down and demand better services• End-to-end solutions sought by customers with price advantage
Changing customer needs
• Multiple new liners causing resource crunch for right talent
Talent Retention
Marketing Opportunities
Marketing OpportunitiesContainer Shipping SCM in Container Shipping Global Freight Forwarders Marketing Opportunities
Strong thought leadership for the business with aggressive communication and customer partnership
• Sustainability, Green shipping, Ocean safety etc
End-to-end service offering as major service differentiation
• Inland, Documentation, Custom clearance etc
Restructuring Key-clients to include small but fast growing customers
Tailored solutions for big accounts with flexibility based charges to address business uncertainty
Aggressive IT investments to create a unique customer experience at all touch points
Innovative route customization to suit medium size customer while also improving capacity utilization
Conscious
•Environmental•Social•Sustainable
Innovative
•Operations•Solutioning•Customer Service
Flexible
•Customer-centric•Partner adaptable•Agile
Challenges
Thank You
Bibliography & Sources• http://www.generationhireandsale.co.uk/images/export/export_supply_chain.jpg• http://
www.alixpartners.com/en/Publications/AllArticles/tabid/635/articleType/ArticleView/articleId/1590/Finding-Focus.aspx#sthash.4WrZt3yE.dpbs
• http://www.alphaliner.com/top100/index.php• www.worldshipping.org• http://www.ibef.org/industry/ports-india-shipping.aspx• http://
www.livemint.com/Opinion/PQ7fpVtEnCikq58EzggiLI/Indias-stateowned-ports-cry-for-overhaul-as-market-share-p.html
• http://www.slideshare.net/ResearchOnIndia/shipping-and-port-market-in-india-2014-sample• http://www.mckinsey.com/insights/corporate_finance/the_hidden_opportunity_in_container_shipping• http://www.seanews.com.tr/news/108175/Container-Markets-Industry/• http://www.hellenicshippingnews.com/moodys-global-shipping-industry-outlook-is-stable-with-moderate-ebitda-grow
th/
• https://en.wikipedia.org/wiki/Maersk#Maersk_Supply_Service• en/the-maersk-group/about-us/publications/maersk-post/2014-2/an-outside-in-perspective-of-india
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