Cool logistics 2016 presentation santo domingo
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This document discusses topics related to perishable goods logistics and container shipping. It notes that global trade growth is expected to pick up to 3.6% in 2017. It also discusses challenges for the container shipping sector and how perishables may provide opportunities for growth. Specifically, it summarizes information about increasing vessel sizes, new shipping alliances, and the impact of the expanded Panama Canal on global trade routes and ports.
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Cool logistics 2016 presentation santo domingo
- 1. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com CONTAINER SHIPPING AND CRISIS MANAGEMENT – COULD PERISHABLES THROW A LIFE LINE TO THE SECTOR? FRUIT LOGISTICA LOGISTICS HUB 2017
- 2. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Sluggish growth in 2016 + 2.8% Fifth consecutive year of trade growth below 3%. WTO estimates global trade growth to pick up reaching 3.6% in 2017 FRUIT LOGISTICA LOGISTICS HUB 2017
- 3. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Whoever commands the trade of this world commands the riches of the world ... and consequently the world itself Sir Walter Raleigh adventurer and navigator, early 17th century FRUIT LOGISTICA LOGISTICS HUB 2017
- 4. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com FRUIT LOGISTICA LOGISTICS HUB 2017
- 5. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com The bigger the better? • ‘Fresh air’ and ballast water? • Orders exceeding 20,000 TEU on their way • But also order cancellations Maersk Line for example Development 2011-2014 • Vessel size increase on the Asia to Europe: 9,000 to 11,000 TEU; from 6,000 to 7,500 TEU on the Asia to the West Cost of the US • from 4,500 to 7,500 TEU on the routes into the Caribbean (largest increase.) FRUIT LOGISTICA LOGISTICS HUB 2017
- 6. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Too big to fit the frame FRUIT LOGISTICA LOGISTICS HUB 2017
- 7. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com New Alliances • 2 M: Maersk/MSC (no change) + HMM? • The Ocean Alliance CMA CGM/Cosco/ Evergreen/OOCL 2017 • The Alliance • Hapag Lloyd, Yang Ming, NYK MOL K Line, Hanjin 2017 Mergers /takeovovers • Cosco/China Shipping • CMA CGM /APL • Hapag Lloyd/ UASC? • HMM/Hanjin? • Who’s next? • Japanese Lines? LOGISTICA LOGISTICS HUB 2017 FRUIT
- 8. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Time over distance to market = logistics Anybody knows where this is? LOGISTICA LOGISTICS HUB 2017 FRUIT
- 9. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Denken ist handeln LOGISTICA LOGISTICS HUB 2017 FRUIT
- 10. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Fruit and vegetables Protein Flowers Pharmaceuticals Confectionary Ready meals Food ingredients Electronics Wine (high quality) LOGISTICA LOGISTICS HUB 2017 FRUIT
- 11. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Source Rabobank: Cool Logistics 2015
- 12. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com LOGISTICA LOGISTICS HUB 2017 FRUIT
- 13. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Dimensions of Locks and Ships 32.3 m 49 m 18.3 m min. 28.3 m max. 12.04 m 15.2 m Maximum size of vessels in existing Locks: Max size of vessels in new locks: 33.5 m
- 14. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com LOGISTICA LOGISTICS HUB 2017 FRUIT
- 15. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com • 18 percent of the total TEU = reefers • By mid May 13.1 million long tons of reefer cargo use the Panama Canal • Average size vessel from WCSA: 3510 TEU (Source: PPC) Reefer cargo is important FRUIT LOGISTICA LOGISTICS HUB 2017
- 16. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Reefers by numbers • Global reefer box fleet 1.8 mill TEU • 75.4 percent of total seaborne reefer cargo transported in reefers • This is expected to increase to 82.3 percent or 19.4 million tons approximately by 2019 • Worldwide perishable trade was 189.5 million tons and approximately 55 percent was seaborne Source: Drewry FRUIT LOGISTICA LOGISTICS HUB 2017
- 17. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Nicaragua Canal: Could the lake dry up? Financing issues Is there a need for it? FRUIT LOGISTICA LOGISTICS HUB 2017
- 18. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com • The final nail in the coffin of the 4,000 - 5,000 Teu panamax ships? • Shift of ships away from Asia to the USEC and Latin America via the Suez Canal in favour of the Panama Canal from July onwards. (Source: Drewry) Unemployed vessels FRUIT LOGISTICA LOGISTICS HUB 2017
- 19. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Fruit Logistica LOGISTICS HUB 2017
- 20. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com FRUIT LOGISTICA LOGISTICS HUB 2017
- 21. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Wider impact of the new Panama Canal • Demand for more competitive port rates • Risks: more port congestion • Port dredging delays in the Caribbean • Social unrest (Imponderable) • Cascading effect • More transshipment of reefers • Port competition • Demand for greater port efficiency FRUIT LOGISTICA LOGISTICS HUB 2017
- 22. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com • Mariel, Cuba (PSA) • Kingston, Jamaica (CMA committed?) • Caucedo, Dominican Republic (DP World) • Port Moin, Costa Rica 2019 (APMT) • Freeport, Bahamas (ready) Dredge as dredge can! FRUIT LOGISTICA LOGISTICS HUB 2017
- 23. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com
- 24. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Source: Cool Logistics 2015
- 25. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Mature market? Global port operators • Hutchison • APMT • PSA International • Cosco Group • DP World FRUIT LOGISTICA LOGISTICS HUB 2017
- 26. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com The net result for the shipper could be a zero sum game as the biggest ships transiting the Panama Canal will turn in Callaou (Peru), but not reach out any further the Latam West Coast (Source: a trusted opinion) FRUIT LOGISTICA LOGISTICS HUB 2017
- 27. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com FRUIT LOGISTICA LOGISTICS HUB 2017
- 28. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Top speakers • Produce expertise • Logistics expertise • 10 seminars • Spring board for Cool Logistics Asia and Cool Logistics Global Top issues • Supply chain innovation • Produce case studies • E-commerce and logistics • Frozen logistics lessons • Emerging markets FRUIT LOGISTICA LOGISTICS HUB 2017
- 29. Cool strategies for core markets 8th Global Conference: 27-28 September 2016, Bremen, Germany 2nd Asia Conference: 7 September 2016, Hong Kong www.coollogisticsresources.com Thank you for listening! FRUIT LOGISTICA LOGISTICS HUB 2017 See you in Hong Kong, Bremen or Berlin
Editor's Notes
- Trying to imagine which questions I may or may not be asked on my way to this country, I came up with the following: Which of these three questions would be the most relevant to this audience here today: What will be the impact of the outcome of Brexit? What will be the longterm effect of the Panama Canal? Or what do I need to know to sell more fruit to the rest of the world?
- Zheng He’ flag ship vessel (15th Century) was 2.5 half time bigger than Columbus’s ship. 220 ft compared with 85ft)
- Economies of scale, will continue to manage capacity and does not plan to exercise the previously announced options for six 19,630 TEU vessels and two 3,600 TEU feeders and will postpone decision on the optional eight 14,000 TEU vessels.
- A slippery slope. 19,224 TEU m 400 meters in length, with a beam of 59 meters
- Slow steaming poor vessel reliability dipping below 80%
- Slow steaming poor vessel reliability dipping below 80%!
- Fresh produce : Fresh produce fruit and vegetables and flowers When a producer in Chile or in New Zealand or here in Santo Domingo packs his fruit this will be of the best quality it will ever be. Anything else makes no commercial sense. But after that the quality will deteriorate. Ironically this is when the logistics process starts and takes over. It's up to him and technology to make the best of it and preserve quality throughout the delivery process. Denken ist handeln. To think is to act. To act is to trade. To trade is to tango!
- Fruit and veg, seafood, beef and poultry together make up the bulk of what the shipping. Industry would qualify as 'reefer cargo' and what the machinery typically the reefer unit can deliver. Fresh produce therefore has to sometimes vie with other potentially more lucrative cargo. There are four well-known reefer unit manufacturers who can supply reefer boxes to the ocean carriers.
- Highest relative increase: Frozen processed and chilled processed foods (biggest jump). Fish and seafood will increase Fruit only small increase predicted
- After phenomenal growth in both Middle East & South Asia (India) and Intra Asia in the first decade and part of the second decade, Latam trades will bounce back , according to Thomas Eskesen, firmer head of global reefers at Maersk. Maersk still remains the single largest carrier owning over 270,000 boxes.
- Capacity 13,000 TEU plus, but experts believe that it will take several years before vessels of this size will use the Panama Canal.
- 9,443 Teu Cosco Shipping Panama (renamed for the historic occasion)
- More scrapping expected partly as a result of the opening of the new Panama Canal which added to the current overcapacity crisis is not good news for the carriers 3000 -7999 TEU According to Alphaliner, there are about 40 panamax container vessels currently seeking employment on the spot market against an unfavourable backdrop of oversupply. It said that charter rates remained “stuck at rock-bottom levels” – typically at about just $5,000-$5,500 a day. This is a massive $20,000 a day lower than what could have been achieved for the ships five years ago.
- Seatrade 2,200 TEU container ships. Smaller ships such as the Seatrade vessels, i.e. the new smaller dedicated reefer container carrier or even the Roro vessels, could suddenly have very strong cards, especially as traditional deep sea container carriers will have to calculate with an even sharper nib. Any deviation costs money, even though lower fuel costs are no longer the critical factor here. Conversely lower fuel costs could help smaller and faster vessels.
- Port Moin: This will effect cargo for the Far East enormously. Feeder to Guatemala/Mexico and then back to Manzanillo for Korea, China and Japan. Geared up to handle 14,000 TEU vessels: It could have a ‘suction effect’ on the other hub ports, especially for reefers !
- Lifting of the trade sanctions from the US could help put Cuba back on the map! Sanctions are expected to be lifted within the next 24 months
- Port productivity will be key for container vessels if they want to keep up with the smaller and nimbler reefer vessels and small container carriers.
- Hamburg Sud vessels transiting the Panama canal 17 boxes across. That vessel could not have gone through the old Panama Canal.