Transcript Template

THE SHIPPING INDUSTRY IN A CHANGING
ENVIRONMENT
DRAFT
PROPELLER CLUB BASEL
November 13th 2008
Jean Philippe Thenoz
SUMMARY
I. What have been the changes affecting the
shipping industry during the past decade ?
1. Change of ship size / Change of ship characteristics
2. Importance of terminal / Strategic approach
3. Role and importance of intermodal
4. Impact of bunker in shipping operations
5. Change of legal environment
6. Environment requirements
II. CMA CGM snapshot
Page 2
1. Change of ship size / Change of ship characteristics
Page 3
A brief history
The following vessels already ordered, are under construction :
2008 / 2009 : 11 000 TEU class and 11 400 TEU
2009 / 2010 : 12 600 TEU + class
2006 : 9400 teu class
2004 : 8500 teu class
2001 : 6500 teu class
Page 4
2008: 11 000 TEU class
Main characteristics
6 500’s
8 500’s
9 400’s
11 400’s
Length overall (m)
300
334
349
363
Width (m)
40,3
42,8
42,8
45,6
Depth (m)
24,1
24,6
27,3
29,7
Draft (m)
14,3
14,5
15,0
15,5
Deadweight (t)
80 000
100 000
115 000
130 000
Nominal capacity (teu)
6 621
8 488
9 415
11 356
Deck
3 614
4 653
4 742
5 512
Hold
3 007
3 835
4 673
5 844
Deck
16
17
17
18
Hold
14
15
15
16
Deck
7
8
8
8
Hold
9
9
10
11
Rows of containers :
Numbers of tiers :
Page 5
Page 6
Principe de propulsion
Page 7
Propulsion principle
The easiest solution :
One main engine slow speed (about 100 rpm), 2 stroke engine
- A shaft line
- A propeller
Page 8
2. Importance of terminal / Strategic approach
Page 9
Terminals networking

Shipping lines having a worldwide coverage were
pushed to invest into terminals to secure berth
windows and give a dedicated fully integrated service
to customers

The shipping industry went into a vertical integration :
terminals being a key element of their operation.

Malta Free Port, Malta
This strategy is especially valid in a hub port operation
concept on East / West route
Page 10
Terminals networking

Let’s take as an example what CMA CGM group has been doing the past 7 years :
Terminal Link S.A.
• Subsidiary of CMA CGM group, incorporated in 2001
• MRS development team of 15 + CMA CGM support
• Terminal Link holds ports interests of CMA CGM
dating before 2001 and has now interests in 17 ports
with an estimated total throughput in 2006 of 4.7 millions TEUs.
Terminal Link’s Assignments :
• External growth:
•
Invest in multi-user container terminals in appropriate locations
•
Develop green sites or brown sites projects, buy stakes, tender for concessions
• Internal growth & development:
•
Leverage on synergies with CMA CGM and market terminals world wide
•
Optimize management of container terminals by using and developing modern
state-of-the-art container handling equipment and IT systems
Page 11
31 DECEMBER 2006: 17 TERMINALS
Rotterdam
Dunkerque
Le Havre
Montoir
Houston
Mobile
Anvers
Zeebrugge
Marseille
Fos
Damiette
Casablanca
Odessa
Tianjin
Um Q’sar
Wenzhou
Xiamen
Miami
Guadeloupe
Martinique
Lomé
Caï Mep
Guyane
Page 12
31 OCTOBER 2008: 26 TERMINALS
Busan
3. Role and importance of intermodal
Page 13
Intermodal strategy in Europe
Door to door advantages
Priority loading in the port for containers under Rail C.H
Easier documentation and Customs formalities at sea port
Customs clearance at destination done by customer
Competitive combined tariff “door to door”
Storage facility at Rail terminal with free days
Empty pick up or drop off for merchant haulage from / to inland
terminal without any extra cost
Page 15
Our rail & barge product today and coming plans
Gdynia
Manchester
Hamburg
Bremerhaven
Liverpool
Poznan
Felixstowe
Rotterdam
Cardiff
Warsaw
Tilbury
Southampton
Zeebrugge
Antwerp
Duisburg
Koln
Le Havre
Dourges
Prague
Mannheim /
Ludwigshafen
Gliwice
Paris
Strasbourg
Stuttgart
Munchen
Basel
Montoir
ClermontFerrand
Bordeaux
Wien
Salzburg
Sopron
Bratislava
Budapest
Milano
Lyon
Triestes /
Padova Koper
Genoa
Bradu De Sus
Bucarest
Livorno
Constanza
Toulouse
Fos/Mer
Barge
Rail Link shuttles
Combined Rail/barge Service
Partners’ rail services
Development Rail
Marseille
Page 16
Intermodal strategy in China
A strategic lay out in China
Harbin
Shenyang
Office of China
Direct ports of call in China
Ports
Beijing
Tianjin
Shijiazhuang
Xingang
Zhangjiagang
Zhengzhou
Qingdao
Jinan
Xian
Zhenjiang
Nanjing
Heifei
Chongqing
Changsha
Wuhan
Hangzhou
Dalian
Yantai
Lianyungang
Nantong
Shanghai
Suzhou
Ningbo
Yiwu
Fuzhou
Dongguan
Quanzhou
Kunming
Xiamen
Guangzhou
Shantou
Keelung
Shunde Yantian
Huizhou
Zhongshan
Shenzhen Kaohsiung
Macau Hong Kong
nd
2 largest carrier from China to North Europe
1st from China to Mediterranean sea
Every 6 hours, a CMA CGM ship leaves China.
13 Ports of call in China.
Page 18
64 agencies throughout China (staff: 1515)
Location of 18 terminals and double-deck block trains
planned network
Page 19
Compared market share of rail container transport
 As of total railway freight traffic percentage
Page 20
4. Impact of bunker in shipping operations
Page 21
Bunker impact on a voyage
8100 TEUS VESSEL – ASIA / USWC at 22.5 knots (35 days voyage)
September 2006
Voyage cost
Hire
Bunkers
313 USD / t
August 2008
%
%
31,1 %
18,0%
62,6 %
706 USD / t
78,5%
Canal costs
0,0 %
0,0%
Port costs
6,3 %
3,5%
Misc.
0,0 %
0,0%
Total
100,0 %
100,0%
5100 TEUS VESSEL – ASIA / USEC at 23.1 knots (56 days voyage)
September 2006
Voyage cost
Hire
Bunkers
Canal costs
314 USD / t
August 2008
%
%
24,1 %
16,8%
51,9 %
673 USD / t
68,4%
18,3 %
11,3%
Port costs
5,7 %
3,5%
Misc.
0,0 %
0,0%
Total
100,0 %
Page 22
100,0%
09/10/2008
25/09/2008
11/09/2008
28/08/2008
14/08/2008
31/07/2008
17/07/2008
03/07/2008
19/06/2008
05/06/2008
22/05/2008
08/05/2008
24/04/2008
10/04/2008
27/03/2008
13/03/2008
28/02/2008
14/02/2008
31/01/2008
17/01/2008
03/01/2008
USD
Bunker prices evolutions YTD 2008
750
700
650
600
Hkg
Rtm
550
Fos
Hou
500
450
400
350
Page 23
5. Change of legal environment
Page 24
The process
1986 – Regulation 4056/86 passed by European Council
March 2003 – repeal process initiated, ELAA set up
October 2006 – formal abolition of Regulation 4056/86 by European Council
September 2007 – publication of draft Guidelines
Summer 2008 – publication of final Guidelines
October 2008 – implementation of the new law – Guidelines in force
Page 25
Impact of repeal of regulation 4056/86
Liner conferences to and from Europe will become illegal
Liner conferences outside European trades remain legal
However, European solution will heavily impact the thought
processes of other jurisdictions
Others may follow over time
Page 26
Impact of repeal of regulation 4056/86
on conference lines
No more :
conference tariffs
conference THCs
conference surcharges such as CAF and BAF
conference business plans
No :
individual capacity discussion
immediate publication of individual market shares
Page 27
What is the new lines environment ?
How will they act ?
All lines must have their own tariff and/or pricing policy
Individual negotiations with customers
All elements of the charge are potentially negotiable unless a line decides
that certain charges are non-negotiable
Structure of charges, i.e. origin THC, ocean freight, destination THC, CAF,
BAF is up to individual lines
Lines will have to decide their individual policies on THC’s BAF and CAF
Charges need not be related to costs – lines are free to charge what they
like taking advantage of the market
Increases in charges will be subject to lines own discretion and subject to
individual contracts – no need, unless the contract says, to give notice
Page 28
6. Environment requirements
Page 29
Advanced Shipping, Environment Minded
Our policy relies on 3 key axis :
Prevent any risk of pollution and continuously improve
the environmental performance of our operations
Develop eco-friendly services and solutions i.e. rail and
barge transportation, eco-containers
Reinforce our environmental management system and
corporate culture for our employees
CMA CGM is member of the Clean Cargo Group and
adheres to « Charte Bleue » from Armateurs de France.
Page 30
Reducing vessel’s ecological footprint
Our new buildings are equipped with the
latest proven environmental technologies i.e.
electronic injection, fast oil recovery,
alternative maritime power, waste heat
recovery, non toxic paints….
New Buildings Green Technologies Overview
Ecospeed policy on major lines, weather and fuel
routing, optimal trim, are additional operational measures
to reduce vessels’ environmental impacts.
CMA CGM Fleet Navigation Center
Page 31
Developing eco-products and services
Development of alternative and eco-friendly
transports : Rail and Barge.
Investment in Rail Development in China, India,
North Africa notably.
Pioneer and leader in Eco-Containers with bamboo
flooring with more than 72 000 TEUs, which
represents so far average 10 % of our owned fleet.
Page 32
Developing environmental partnerships
From the beginning, CMA CGM is actively participating to the Ports of Los
Angeles and Long Beach environmental programs and initiatives, considered
as the most leading and aggressive ports environmental policies worldwide.
Clean Fuel Program participation since July
2008, using ultra-low sulphur fuel in main and
aux engines
Green Flag Award compliant for 100 % of our
vessels for the 2nd consecutive year, for
vessels speed reduction.
Exhibition at Long Beach Green Port Fest :
hundreds of people visited our eco-bamboo
container as well as the Group environmental
initiatives.
Page 33
II. CMA CGM snapshot
CMA CGM MEDEA – 9400 evp
Page 34
CMA CGM: Number of containers carried
(thousand of TEUs)
7700
7000
6000
6000
5200
5000
3900
4000
2800
3000
2000
1615
1900
2300
1000
0
2000
2001
2002
2003
2004
2005
2006
Source: CMA CGM Data
Page 35
2007
CMA CGM GROUP – EAST / WEST SERVICES
 6 services
 4 480 TEUs weekly
Europe
North
America
Asia
Africa
South
America
Oceania
NB : Asia is including Indian Subcontinent
Page 36
CMA CGM GROUP – NORTH / SOUTH SERVICES
 10
services
 6 940
TEUs
weekly
Europe
 12 services
 6 210 TEUs
weekly
 20 services
 9 830 TEUs
weekly
 8 services
 6 750 TEUs
weekly
North
America
Asia
 8 services
 4 290
TEUs weekly
Africa
South
America
Oceania
 13 services
 8 320 TEUs
weekly
NB : Asia is including Indian Subcontinent
Page 37
Fleet volume
TODAY
(17/10/2008)
CMA CGM
368 ships (280 chartered + 88 owned) for 972 393 TEUs
CHENG LIE
19 ships (15 chartered + 4 owned) for 25 934 TEUs
COMANAV
10 ships (1 chartered + 9 owned) for 2 923 TEUs
GROUP TOTAL
397 ships for 1 001 250 TEUs (296 chartered and 101 owned)
(396 ships for 986 196 on 02/10/08)
Page 38
Fleet volume
SHIPS TO BE DELIVERED
78 ships on order for a total capacity of 648 679 TEUs (out of which 55 owned)
+ 2 cruise ships for CIP
Ships
Teu
2008
2009
2010
2011
2012
7 (3 owned)
32 (22 owned)
26 (21 owned)
11 (7 owned)
2 owned
54 989
259 906
239 571
90 813
3 400
Page 39
TOP 10: Global carriers
1. Maersk Line – Denmark
2 034 000
15.8 %
2. MSC – Switzerland
1 421 600
11.0 %
3. CMA CGM – France
970 300
7.5 %
4. Evergreen – Taïwan
634 100
4.9 %
5. Hapag Lloyd – Germany
501 000
3.9 %
6. COSCO – China
497 300
3.9 %
7. APL – Singapore
482 300
3.7 %
8. CSCL – China
430 100
3.3 %
9. NYK – Japan
416 900
3.2 %
10. MOL – Japan
376 100
2.9 %
Source: AXS-Alphaliner dtd October 08
Page 40
CMA CGM Group Key Figures
Turnover 07
11.8 billion US Dollars
Teus carried 07
7,7 million TEUs
Vessels
394
Slots available
966,900 TEUs
Services
more than 150
Staff Worldwide
16 000
Staff France
4 200
Offices Worldwide
600
Ports of call
400
Page 41
A testimonial of the group’s soaring growth
FEATURES
147 meters tall / 33 stories high
75 meters in its widest point
Total capacity: 2,700 people
15 elevators / 5 parking levels
53,000 m² of total exterior glass surface area
Gross floor area: 64,000
sq meters
CMA
CGM
Start of construction: July 2006
Real :Estate
Building delivery
3rd quarterInvestments
of 2009
Architect: Zaha Hadid
Norfolk, USA
Page 42
Page 43
CMA CGM Orfeo – 9700 TEUs passing by Los Angeles break wate