1. Ben Vandenberghe
CTL Westrans Shipbrokers
June 15 2012

2. CTL Westrans Shipbrokers
 Established in 1966 – proven record of success in ship broking
 Experienced with many types of cargo: forest products
including wood pellets & chips, grains, iron ore, machinery,
pulp, sulphur, coal…
 In-house ship agency: Compass Marine Services
 Head office in Vancouver, BC
www.ctlwestrans.com

3. Freight Markets into Asia
 Large Shipments : 20,000mt to 50,000mt
 Economies of scale with full bulk vessels
 Medium Shipments : 5,000mt to 15,000mt
 Semi-liner services & cargo parcelling
 Small Shipments : < 5,000mt
 Full liner services (containers)

4. Bulk Vessels – Full Cargo
 Large bulk shipments of 20,000mt to 50,000mt
 Economies of scale = lowest cost per M/T
 Limited by restrictions at both load port and discharge port:
 Draft restrictions
 Terminal equipment
 Storage capacity

5. Full Vessel - Calculation
Shipment Size : 25,000mt 50,000mt
Vessel Daily Rate : $ 7,600/day $ 7,000/day
Voyage Time : ~47.0 days ~58.2 days
Vessel Cost : $ 357,200 $ 407,700
Bunkers (Fuel) : $ 571,500 $ 749,200
Port Costs : $ 82,000 $ 110,000
Misc, Days, TT: $ 35,300 $ 44,300
Lump sum: $ 1,046,000 $1,311,200
$ 41.84 /mt $26.23 /mt
+ Loading costs ~ $15 - $25 / mt

6. Semi-Liners & Cargo Parcelling
 Shipments of 5,000mt to 15,000mt
 Carriers regularly calling Vancouver for dedicated base cargo
 Monthly or bi-weekly service
 Base cargoes of pulp, lumber, concentrates
 Parcelling of spot fixture cargo
 3 of 5 holds with grain space for 2 holds of pellets
 Combination shipment (same product)
 2-3 shippers sharing space on the same vessel

7. Part Cargo - Calculation
 What is the “Contribution to the Voyage” of the additional cargo?
 Consider additional costs -vs.- revenue on 1 hold of cargo
 The key is to minimize deviations like extra ports and extra time
 Owners consider what other contract cargoes could pay:
 10k Copper concentrate parcels to Korea paying ~$45/mt
 10k Canola parcels to Japan paying ~$53/mt
 Current rule of thumb is ~$50/mt on 10,000 parcels to Japan

8. Full Liner (Container)
Small Shipments < 5,000mt
22 - 24mt pellets / 20’ container
26 - 28mt pellets / 40’ container
Vancouver to Busan:
$1,150 - $1,250 per 20’ container = $50-$55/mt
$1,500 per 40’ container = $57/mt
Transloading, Stuffing, Drayage = $20-$25/mt

9. Freight Market – Critical Factors
 Supply and demand of vessels – currently an oversupply of tonnage
 High bunker prices account for 55-65% of current voyage costs
 Competition from other cargoes – what do they pay?
 Very good market for Vancouver to Asia – many ships and options

10. Considerations & Strategies
 Parcelling or combining several shippers on a single vessel
 Single hold on semi-liner vessels with regular service
 Getting product from origin to Vancouver & other ports?
 Terminal transloading abilities?
 Storage -vs.- direct load from railcar to vessel
 Bagged product – handling, storage, tiers in vessel or containerization
 Stowage Factor = 53 Cubic Feet Per Metric Tonne 40’ vs 20’

12. Ben Vandenberghe
CTL Westrans Shipbrokers
www.ctlwestrans.com