1. MARITIME SYSTEM – The supply side in seaborne trade Marina Zanne, M.Sc. Marina.Zanne@fpp.uni-lj.si

2. Introduction System is a set of interacting or interdependent entities/elements forming an integrated whole. Maritime transport is a activity providing movement of goods and passengers around the world; it covers distances – a spatial activity (besides starting and ending port activities), it’s characterized by inseparability - contemporary production and consumption of the service and perishability (imposibility to store it).

3. Introduction It would not be possible to provide martime transport without ports and shipyards. Maritime system forms the supply side in seaborne trade. Supply is described by: world fleet, fleet productivity (depending also on ports’ productivity), scrapping and losess, shipbuilding production and freight revenues.

4. Maritime system Information!

5. Maritime system artificial dynamic complex open system Horizontal or vertical analysis Constant interaction among elements

6. Shipping company ships – the maritime industry’s main asset 426 billion US$ turnover in 2004 (160 billion US$ in 1999) cca 1,23 million seafarers (404.000 officers, 823.000 ratings) Maritime transport is described by: price; transport cost speed; inventory cost, commercial reasons reliability; “JIT” concept security; insurable risk, however many difficulties (for the shipper) arise if loss or domage occur

7. Merchant fleet structure

8. Top 20 container shipping companies CompanyTEU capacity [24] [24] Number of ships A.P. Moller-Maersk Group2,045,776545 Mediterranean Shipping Company S.A. 1,638,962414 CMA CGM1,100,007384 American President Lines589,879147 Evergreen Marine Corporation554,725152 Hapag-Lloyd541,811124 COSCO498,437134 CSAV469,428128 Hanjin Shipping448,05198 China Shipping Container Lines440,236122 NYK Line365,03495 Mitsui O.S.K. Lines363,18894 Orient Overseas Container Line353,33877 Hamburg Süd338,778109 Zim Integrated Shipping Services322,68596 K Line318,19382 Yang Ming Marine Transport Corporation 313,37977 Hyundai Merchant Marine271,60452 Pacific International Lines227,649126 UASC199,08250

9. Ports interface between land and sea; good inland connection are crucial, togetherwith the adequate equipment and service levels 31 billion US$ turnover in 2004 (27 billion US$ in 1999)

12. Shipyards there are more than 300 large merchant shippyards (for large ships; there are numerious small shipyard and boat boatbuilding yards around the globe) 47 billion US$ turnover in 2004 (34 billion US$ in 1999) Marine equipment (equipment, paint…): 90 billion US$ turnover in 2004 (68 billion US$ in 1999) in 2007 the order of new ships was worth 187 billion US$ (in 1990s the order od new ships was worth cca 20 billion US$ per year)

13. Supply & demand relationship Stopford M. (2009): Maritime economics, p. 137

14. Supply & demand relationship Demand; derived, not stable, big fluctations, relatively price inelastic Supply; rigid

15. Conclusions The marine industry is an essential link in international trade, with ocean-going vessels representing the most efficient, and often the only method of transporting large volumes of basic commodities and finished products.

16. Sources & further reading Stopford M.: Maritime economics, London, Routledge (2009), chapter 4