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

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th/

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