FONASBA – GOTHENBURG October 2014 Container Sector Review Sverige – Goteborg Dr. YORAM SEBBA. References: Alphaliner (3, 7-11, 15-31, 33) Drewry (12-13, 34-36), Unctad (38-42), YS (4-6, 44)

FROM PAST TO FUTURE

The Pandora case was opened The challenges which emerged simultaneously during the last ten years: 1) Changes in the origin/destination matrix – huge over tonnage. 2) The world economy crisis. 3) Fuel prices. 4) Changes in regulation. 5) New building prices. 6) Freight rates.

The hope appeared as well… Remedies adopted by the carriers: 1) Enhancing operational cooperation. 2) No deterioration of services – trade growth continues. 3) Flexibility in New building deliveries. 4) acceleration of demolitions. 5) Slow steaming. 6) Idling of vessels. 7) Efficiency measures, as usual.

CASE STUDY A container service, Felixtowe-Hamburg-Rotterdam-Suez- Hong Kong- Shanghai-Ningbo-Yantian-Suez-Felixtowe. 7 vessels of 5000 teu with 22.5kn are replaced by 9 vessels with 16.8kn. Same weekly service, but longer voyages. Charter hire $16,000. Daily fuel consumption reduced from 154t at sea to 76t. Result: annual savings of $49.2m.

Utilization

2007 32,111 2014F 480,000

Current Idle Fleet = TEU 240,000= 1.3%

STATUS REPORT

End 2016F / End2014F=1.13

16,566,637= 92%

Total Order Book Total Current Managing Owners 65.9% 100% 55% 52% 62% SHIPS TEU 1,331 6,741,518 94 907,327 1237 5,834,191 65.9% 3,035 11,300,468 300 2,447,371 2735 8,853,097 100% 55% 52% 62% 69% 48.9% From Existing Fleet

Trade Capacity by Carrier

Bunker Watch

PORTS HIGHLIGHTS

UNCTAD – MACRO PERSPECTIVE

HOMAGE TO SHIPPING

SHIPPING – Past and Present Loading cost of one ton of General cargo: 2014: $0.14 ; 1956: $6 Output of a port employee: 2014: 4,234 tons ; 1959: 0.6 tons Cargo weight on a ship: 2014: 150,000 tons ; 1950: 10,000 tons Vessel speed: 2014: 25 knots ; 1950: 16 knots