This document discusses shipping and its role in the global logistics and supply chain system. It provides a brief history of shipping and outlines key facts, such as the variety of vessels and cargoes transported by sea. The document then explains how shipping is derived from demand in the supply chain and discusses different types of shipping trades. It emphasizes that shipping is an important element of the supply chain, ensuring raw materials and finished goods are transported globally. The challenges facing the shipping industry, such as oversupply of vessels, are also summarized.

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

2. HistoryPhonecian Merchants of the MediterraneanSteam propulsion and use of Iron in shipbuildingOpening of the Suez Canal in 1869Importance of Sea Trade- Accounts for carriage of 90% of world tradeLife Blood of Global Economy

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 yearsLargest Tanker – ULCC Knock Nevis previously called Jahre Viking 459m longLargest bulk carrier afloat – 3,65,000 DWTLargest Container Ship – Emma Maersk 396.85 m/15000TEU/31 knots sea speedCost of building a ULCS – 145 million USDSome Interesting Facts

7. Shipping as a Derived Demand 50000 merchant vessels deployedMarket is cyclical in natureVolatility in Freight rate seen oftenDemand and Supply Economics of Sea Trade

8. Where the ships ply

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

10. The mission of Logistics Management - Planning and coordination - Required Service levels at lowest possible cost - Ensuring economies of scale are achieved during bulk transportationThe Role of 3 PL’sExpertise in providing logistics solutions to clients - Multimodal Transportation- Networking with service providers Shipping in the Logistics Domain

11. Supply Chain processesSourcing of raw materialsDistribution of finished productsPipeline Visibility – Customers perspectiveEnhancing the value chain by better coordinationTwo sides of a coin- The Operators viewShipping as an Element of the Supply Chain

12. Recessionary TrendsLimitations of Sea TransportOptimizing space utilizationReducing fleet size and reducing excess tonnagePlanning of fleet deployment by forecastingUnderstanding customer demand and ability to use resources efficientlyBusiness Challenges facing the Industry

13. Transportation decisionsChoosing the right mixAvailing discounts on bulk movementsLearning to make choices in difficult situationsNetwork Optimization Using Ocean Transport in conjunction with other modesUnderstanding Limitations of Sea TransportFrom a Logistics and Supply Chain Manager’s perspective

14. Logistics Infrastructure to match growthGlobalization – Logistics trends worldwideOil movements – Refining capacitiesDrop in container trade globally Forecasts for trade recovery Oversupply expected due to orders for new buildings in shipyardsReducing the tonnage seen as the only alternative to reduce the imbalanceFuture of the Industry

15. THANK YOUQ&A