The basic concept underlying system of shipping innovation Invention - can be defined as the creation of a product or introduction of a process for the.

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Presentation transcript:

The basic concept underlying system of shipping innovation Invention - can be defined as the creation of a product or introduction of a process for the first time. Innovation - is the application of better solutions/improvement that meet new requirements, unarticulated needs, or existing market needs. Examples: handphone smartphone shipgreen ship

The shipping world is fast becoming a more complex place. New technologies and innovation will play a vital role in the immediate and long term future of shipping. Emissions regulation and higher energy prices are the two leading factors changing our industry.

Innovation in shipping  Engines We now see hybrid options emerging: gas engines are alongside diesels and the use of wind as auxiliary power is emerging.  Designs The wave-piercing bow. Single hull to double hull.  Fuels the ‘LNG as fuel’ developments with their clean burning

The development and innovation in shipping

Innovating the oil tankers.  Single hull tankers Designed in Gothenburg in 1878 for the Brothers Nobel oil company, Zoroaster was the first oil tanker carrying oil in two iron tanks joined by pipes. In 1883 tankers design advances and the liquid in tanks was divided in smaller compartments to eliminate instability due to free surface effects. The single hull tanker design for the tankers of about DWT (dead weight tons) remained almost unchanged until the WW II. After the WWII due to economy expansion the demand for energy increased and crude oil had to be transported in large amounts from distant sources. The tankers fleet multiplied several times and the size grew to about several hundred thousand DWT during the period (IMO, 2008) and in the late 1970’s giant ships appeared exceeding 500,000 DWT. In addition, propulsion (novel technical solutions for giant propellers powered by large engines) and maneuvering issues had to be considered.

 Double hull tankers The first significant change in design of tankers took place when double hull requirement was introduced at the end of the 20th century. This innovation was a direct consequence of the emergence of the environmental friendliness. A double hull tanker is a ship designed for carriage of oil in bulk where the cargo spaces are protected from the environment by a double side and double bottom spaces dedicated to the carriage of ballast water (AMSA, 2001). All tankers of 600 DWT or more delivered as of 1996 had to be with double hull, according to MARPOL (IMO, 1992).

TRIPLE E – MAERSK LINE

TRIPLE E  1E : EFFICIENCY The Triple-E is designed and optimized for lower speeds. The unique hull design, energy-efficient engine and system that uses exhaust gas to produce extra energy to help propel the ship, make the Triple-E unmatched in energy efficiency. It started with a simple idea: move at a lower speed. A small change in knots cuts fuel consumption and lowers CO 2 emissions. The hull is designed and optimized for lower speeds. The Triple-E vessel will appear more bulky than previous container vessels, such as Emma Mærsk, which were designed for higher speeds. This allows the Triple-E to hold and transport more containers.

 2E : ECONOMY OF SCALE The Triple-E not requiring more engine power. This design takes economy of scale to a new level. The capacity of a Triple-E vessel, 18,000 TEU surpassing the capacity of Emma Mærsk by 16%. Length: 20 ft (5,9 m) Width: 8 ft (2,4 m) Height: 8ft (2,4m) Volume: 1,165 cu (33m 3 )

 3E : ENVIRONMENT These vessels reduce CO2 emissions by 50% per container moved, compared to industry average on the Asia-Europe trade. Waste heat recovery system. The Triple-E class will be designed for future safe and sound recycling, which will list and describe the materials used to build the vessel, where they are located, and how they can be correctly disassembled and recycled / disposed.

The goal is that the ship should be safe and environmentally friendly – meaning that the ship should have enough strength, structural integrity and stability to minimize the probability of ship loss or pollution to the marine environment.

FirmsEnvironments This interaction between shipping firms and its network of customers and suppliers. Involves broader factors shaping the behavior of firms, infrastructure, the processes which create and distribute scientific knowledge. Innovation involves complex interactions between a firm and its environment.

OWNERSHIP A shipowner is the owner of a merchant vessel (commercial ship). Shipowners typically hire a licensed crew and captain rather than take charge of the vessel in person. Usually the shipowner is organized through a company, but also people and investment funds can be ship owners. If owned by a ship company, the shipowner usually performs technical management of the vessel through the company. Usually a ship will not be owned by a single person but it will be owned by a group of persons, who form a company or partnership. A company or partnership that fits and operates ships is called a "shipping company".

Ship operator is responsible for managing vessel performance, bunkers quality and quantity pricing, and ship routing. In most cases, ship operators are usually at the same time the owners of the ship. They are also known as shipping companies. The four largest are A.P. Møller-Mærsk, COSCO, Nippon Yusen, and Mitsui OSK Lines.

There are numerous national, regional and international rules and regulations imposed on ship owners and operators to ensure that their operations are carried out in a safe and secure manner. The most important governing body is The International Maritime Organization (IMO). Since the ownership and management chain surrounding any ship can embrace many countries and ships spend their economic life moving between different jurisdictions the IMO was formed to make international standards which would regulate the shipping industry (IMO, 2011).

Shipbuilding is dominated by a vast number of the Chinese shipyards and the South Korean mega shipbuilding companies like Hyundai, Samsung, and Daewoo. Shipbuilding has been always a labor intensive industry which requires high skill craftsmen. It is not uncommon that it can take 2 years to build large freighters or cruise ships. However, shipyards are being intensively modernized with robots and are improving with innovating the manufacturing techniques and process. Due to the high level of complexities, required procedures and scarce knowledgeable labor force they often specialized for niche markets e.g. oil tankers, container ships, cruise ships, etc.

Ownership Advantages Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology, and management that form the basis for a company's advantage over other firms.