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National Taiwan Ocean University

Department of Transportation and Navigation Science

Introduction to Liner Shipping

Instructor: Eric Ting

P.1
We are the world.

W E

P.2
1. Introduction to Liner Shipping

•Head Quarter SIN HKG


•Subsidiaries RTM
•Fleet KEL
•Branch OfficesFXT •Containers TYO
•Route, Schedule
BRV
•Space (Slots) NGO
•Ports of call
•Agents LEH
•Cargo UKB
•Forwarders HKG KHH
•Direct Accounts
P.3
An Example for Service Route: Asia/N. Europe

Westbound
RTM SIN HKG
KEL

FXT
TYO

NGO
BRV

UKB
LEH HKG KHH
Eastbound

P.4
An Example for Service Route: Asia/N. Europe

BRV
FXT
RTM
LEH TYO
NGO
KEL UKB
KHH
HKG

SIN

P.5
Service Networks
Trailer CHS

MIA LIS
Calling ETB ETD Buffer

Rail CHS

MIA
HST CHS HST
RTM

HST
MIA
Calling

CHS

MIA
ETB ETD

NEO
Buffer
ANR

FXT

BRV

RTM
? ?
LIS

HST
LIS RTM
ANR
? BRV CHS

FXT MIA
Calling ETB ETD Buffer
FeederLIS

BRV
ANR Service
CHS

NEO HST
MIA

RTM FXT HST

ANR

FXT
?
RTM

LIS
BRV NEO
BRV

RTM

LIS
BRV

ANR ANR
FXT
FXT
P.6
Service Route Patterns

N.Europe
Canada

MED
Asia FE USWC
US USEC

AF
N SA
AUNZ
W E
End to End Service Route
S Pendulum Service Route
Round The World Service Route
Combined Service Route P.7
2004 Container Trade Flow Volumes
of East/West Axis (Unit: 1000 teu)

N. Europe
1,622 5,753
10,530
N. America Med N. America
2,296
486
Asia4,807
1,040 3,474
1,985
866

Source: The Drewry Container Market Quarterly, June 2005.


P.8
2004 Post-Panamax Containership
Deployment Patten
160 148 60.0%

140 52.3%
50.0%
120
40.0%
100

P ercen tag e
V essels

80 67
30.0%

60 23.7%
20.0%
37
40 13.1%
14
10.0%
20 4.9%
6 2.1% 6 2.1% 5 1.8%
0 0.0%
Europe/Far East Transpacific Pendulum Med/Far East Europe/ECSA Europe/Middle Middle East/Far
East East

Strings

Source: The Drewry Container Market Quarterly, June 2005.


P.9
2004 Container Trade Flow Imbalance
Volumes (Unit: 1000 teu)

N. Europe
674 1,622 5,753
N. America 2,279 5,723 10,530
2,296 Med Asia4,807 N. America
486
1,040 3,474
1,985
554 1,119 866

Source: The Drewry Container Market Quarterly, June 2005.


P.10
Throughputs (unit: 1000TEU)

-
H
on

10,000
12,000
14,000
16,000
18,000
20,000
22,000
g

2,000
4,000
6,000
8,000
K
Si o
ng ng
ap
Sh ore
20,450
an
gh
18,410
Sh ai
ek
ou

11,093
B
K us
ao an

10,439
Lo hs
s iun
A
ng g

10,227
el
H e

8,843
am s
bu
A r

7,179
nt g
w
er
p

6,000
Lo u D

5,450
ng ba
B i
ea
B Q ch
i

5,152
re ng
m da
o
Top 10

La er
em ha
60.1%

ve
Ti C n
an hab
jin an
/X g
G in
ua ga
ng ng
zh N
ou in
/H gb
ua o
ng
A pu
lg
ec
ira

Container Ports
Xi s
am
K en
ee
lu
Va ng
le
nc
O ia
ak
(Unit: 1000 teu)

la
n
Ta d
Top 20

co
77.9%

H m
am a
pt Da
on ia l
R n
oa
B ds
ar
ce
lo
na
G
en
o
Sa a
Va nto
nc s
ou
ve
Se r
at
tle
87.6%
2004 Top 30 Container Port Throughputs

0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Top 30 90.0%
100.0%

Cumulative Percentageage
P.11
Mega Carriers and Shipping Alliances
Yangming
NYK Hapag Lloyd

Grand COSCO
Alliance
CKYH
MSC Hanjin
OOCL

P&O Nedlloyd K Line


Mitsui
APL NOL
OSK Maersk Sealand
New
World
Evergreen & LT
Alliance
Hyundai CMA-CGM
P.12
Scope of Cooperation in Alliance

 Joint Terminals or Terminal Contracts


 Joint Services
 Joint Feeder Services
 Joint Purchase or Ownership of Ships
 Joint Purchase and Usage of Containers
 Joint Intermodal, Rail or Trucking Operations
 Joint Container Depots
 Jointly-managed Pools of Containers and Equipments
 Joint Bunker Purchase
 Joint EDI Systems
 Interchange of Empty Containers
P.13
The Trends in Liner Shipping

 Large containerships - Main trade routes


 Trade imbalances - Surging repositioning costs
 Hub-and-spoke operations - Mega hub ports
 Strategic alliances - Mega carriers and alliance
 Undifferentiated services - Price wars

P.14
Q&A
Thanks for your attention.

Your questions or comments


will be greatly appreciated.
Email: ericting@mail.ntou.edu.tw
P.15