The Survival Strategies of Container Shipping

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My thesis defence presentation.

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The Survival Strategies of Container Shipping

  1. 1.   EGEST BARBULLUSHI The Survival Strategies of Container Shipping.   Strategies for exiting crisis and returning to profitability.
  2. 2. Crisis: What happened?
  3. 3. Crisis: What happened? <ul><li>Lehman Brothers defaulted </li></ul><ul><li>World economies started contracting </li></ul><ul><li>Banks, bondholders, shipyards, shipowners, lines were affected </li></ul><ul><li>Demand collapsed </li></ul><ul><li>Industry lost $20 bil . </li></ul><ul><li>Newbuildings still in the pipeline </li></ul>
  4. 5. Before the crisis <ul><li>Horizontal integration </li></ul><ul><ul><li>Conferences </li></ul></ul><ul><ul><li>Strategic alliances </li></ul></ul><ul><ul><li>M&A and internal growth </li></ul></ul><ul><li>Vertical integration </li></ul><ul><ul><li>Terminal operations </li></ul></ul><ul><ul><li>Intermodal services </li></ul></ul><ul><ul><li>Logistics services </li></ul></ul><ul><li>Vessel scale increase </li></ul>
  5. 7. During the crisis <ul><li>Short-term strategies </li></ul><ul><li>Long-term strategies </li></ul>
  6. 8. Short-term strategies <ul><li>Cancelations, Deferment, Conversions, </li></ul><ul><li>Scrapping </li></ul><ul><li>Redeliver chartered ships to shipowners </li></ul><ul><li>Lay-up </li></ul><ul><li>Service loops suspended </li></ul><ul><li>Container box shortage </li></ul><ul><li>Surcharges </li></ul><ul><li>Debt restructuring (+State aid) </li></ul>
  7. 9. Long-term strategies <ul><li>Cut costs </li></ul><ul><li>Slow and extra slow steaming </li></ul><ul><li>Container Swaps </li></ul><ul><li>Innovations </li></ul>
  8. 11. Conclusions <ul><li>Container shipping lost 2 years of growth </li></ul><ul><li>The worst period is over </li></ul><ul><li>Operational and financial rationalism </li></ul><ul><li>Lines came out stronger </li></ul><ul><li>Slow-steaming and laying-up ships strategies </li></ul><ul><li>The right ship for the right trade strategy </li></ul><ul><li>Consolidations? </li></ul><ul><li>Every crisis brings opportunities.. </li></ul>
  9. 12. Will the sunshine days continue or winter is coming earlier?
  10. 13. Outlook <ul><li>Could Double-dip recession be on the way? </li></ul><ul><li>Trade growth and shipping markets will remain volatile </li></ul><ul><li>Consolidations? </li></ul><ul><li>Orderbook still inflated </li></ul><ul><li>2010 second half deliveries </li></ul>

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