rolf altorfer president & ceo north america kuehne + nagel, jersey city, nj
TRANSCRIPT
Rolf Altorfer
President & CEO North America
Kuehne + Nagel,
Jersey City, NJ
p. 2
Limitations (i.e. Seafreight)
Possible Consequences
International Trade
Supply & Demand
p. 3
Non-asset based company
More than 830 offices worldwide, 85 in the US
One of the largest global logistics providers
Seafreight, airfreight, contract logistics and supply chain services
Competitors:
DHL, Deutsche Post, Expeditoors, Panalpina, Nippon Express, Maersk Logistics
Who We Are & What We Do
p. 4
Our Customers
Additional 4,000 smaller customers
p. 5
Our Seafreight Partners
NOL
Evergreen
Yang Ming
APL
Hanjin
OOCL
Cosco
All asset-based steamship lines and carriers:
Maersk/Sealand MaerskHapag-Lloyd, CMAMSCHamburg SudZim
The number of lines has diminished by 40% over the past 10 years due to consolidation of the industry
p. 6
MS Emma Maersk – Capacity: 11,000 – 15,000 TEU
p. 7
Market DevelopmentContainer vessels doubled in size during the last decade
Development of Container Vessel Size
1st-2nd Generation
(1968)
3rd - 4th Generation
(1972)
Post-Panmax(1994*)
Suezmax (2006)
TEU 1.000 – 2.000 3.000 – 4.700 4.700 – 9.000 ~ 12.000 – 14.500
Draft 10 – 11,5 m 12,5 m 13,5 -14,5 m 15,5 m
Width 28 m 32 m 39 - 43 m 57 m
* First Post-Panmax already in 1988
p. 8
Glossary
TEU: Twenty foot equivalent unit
FEU: Forty foot equivalent unit
CFR: Cost of goods and freight
Seller’s TEUs, seller owns goods to arrival point/port
FOB: Free on Board
Buyer’s TEUs, buyer owns goods or loaded on ship and pays freight
p. 9
128
140 142
132 136
110
106
92
81
7270
0
20
40
60
80
100
120
140
160
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
F
2010
F
Millions TEUWorld Container Traffic
p. 10
Asia-Europe-Asia Trade
08-4% 08
-6%
09 J-F-23% 09 J-F
-25%
FCST-0.1
FCST-8%
-30%
-25%
-20%
-15%
-10%
-5%
0%
Westbound Eastbound
TEU’s Volume in Millions
Eastbound: 6M Europe Asia
Westbound: 15M Asia Europe
$3,000
$650
$400
$800
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Westbound Eastbound
Volume Rates
Intra Asia: 34M All Directions
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Asia-USA-Asia Trade
086%
08-8%
09 J-F-30%
09 J-F-25%
FCST-0.17
FCST-8%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
Westbound Eastbound
Volume
$400
$800
$1,800
$1,200
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Westbound Eastbound
Rates
TEU Volume in Millions
Pacific: Eastbound 22M Asia North America
Pacific: Westbound 6M North America Asia
Atlantic: Eastbound 2M Westbound: 5M
p. 12
Port of Singapore
• 12% of global container capacity is laid up!
• 17-18M TEU capacity
• Approximately 200 ships of all types and sizes
p. 13
Supply & Demand potentially ineffective under certain economic conditions
Load factors: insufficient levels
i.e. Asia/Europe, lay-ups – reduce capacity
Imbalance of trade
There is a cost for positioning equipment/containers
Consolidation of the carrier industry will increase the leverage of
carriers to influence price/cost
p. 14
Higher costs for consumers may result despite of ample carrier capacity (incl. idle) because:
Higher base rates from carriers and/or capacity
Present rates provide insufficient revenue levels. Carriers may lay up more ships or go out of business
Higher inventory, costs of goods due to fewer services and frequencies
Customer dissatisfaction, late deliveries may result in loss of business
In addition to shipping costs, other incremental costs linked to the supply chain affect goods ultimately reaching the consumer.