From a Logistics and Supply Chain Managers Perspective

1. Shipping – A Cog in the Logistics and Supply Chain Wheel By: Capt. Srinivas Venkatesh M.I.C.S Business Student SP Jain Center Of Mangement Singapore

3. Variety of Products Transported daily

4. A service that runs 24X7 round the year

5. Various types and sizes of vessels deployedIntroduction to the World of Merchant Shipping

6. First Merchant Vessel – A combination of logs dates back to more than 15000 years Largest Tanker – ULCC Knock Nevis previously called Jahre Viking 459m long Largest bulk carrier afloat – 3,65,000 DWT Largest Container Ship – Emma Maersk 396.85 m/15000TEU/31 knots sea speed Cost of building a ULCS – 145 million USD Some Interesting Facts

7. Shipping as a Derived Demand 50000 merchant vessels deployed Market is cyclical in nature Volatility in Freight rate seen often Demand and Supply Economics of Sea Trade

8. Where the ships ply

9. Importance of Dry & Wet Trade Tanker Trade - Carriage of a variety of oil products/chemicals/gasses - Major exporters- Middle East, North Sea, South America, West Africa Liner Trade - Carry manufactured goods through scheduled liner services - Leading terminal operators – PSA, DP World, APM Terminals Bulk Trade - Carry raw materials and bulk commodities – Iron ore, Steel General Cargo Trade – A thing of the past; being replaced by containerization Types of Shipping Trade

11. Supply Chain processes Sourcing of raw materials Distribution of finished products Pipeline Visibility – Customers perspective Enhancing the value chain by better coordination Two sides of a coin- The Operators view Shipping as an Element of the Supply Chain

12. Recessionary Trends Limitations of Sea Transport Optimizing space utilization Reducing fleet size and reducing excess tonnage Planning of fleet deployment by forecasting Understanding customer demand and ability to use resources efficiently Business Challenges facing the Industry

13. Transportation decisions Choosing the right mix Availing discounts on bulk movements Learning to make choices in difficult situations Network Optimization Using Ocean Transport in conjunction with other modes Understanding Limitations of Sea Transport From a Logistics and Supply Chain Manager’s perspective

14. Logistics Infrastructure to match growth Globalization – Logistics trends worldwide Oil movements – Refining capacities Drop in container trade globally Forecasts for trade recovery Oversupply expected due to orders for new buildings in shipyards Reducing the tonnage seen as the only alternative to reduce the imbalance Future of the Industry

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