THE FUTURE OF

CARGO SHIPPING

Group 3:
Phạm Đoàn Hà Nhi - 79292
Mai Thu Giang - 76173
Nguyễn Thị Hương Trang –
76243
Đặng Thị Phương - 76133
Nguyễn Minh Ngọc 76217
 Table of contents

01 02 03

Introduction of Conclusion
The future of
cargo shipping cargo shipping
 01
Introduction of cargo shipping
 1.1 Cargo

a. Definition
o Cargo refers to goods or products carried in a truck, van, airplane, train,
or ship, and transported by land, sea, or air. (Market Business News)
o In economics, the word “cargo” in particular refers to goods or products
that are transported - generally for commercial gain.
b. Types of cargo transported by sea

CARGO

Bulk cargo General

cargo

Non-
Liquid •Containerized containerized
Dry bulk
bulk cargo (Break bulk)
cargo
cargo cargo
Refrigerated
cargo
Liquid bulk cargo Dry bulk cargo

Refrigerated cargo

Containerized cargo Break bulk cargo

 1.2 Shipping

a. What Is Shipping?
The term shipping can be used to refer
to various modes of transporting cargo
and other goods through land, sea or
air. Although it is most commonly
used to refer to the transportation of
objects and cargo by sea, it can also
refer to air and land transportation of
goods.

(Source: Vietnam Maritime University -

Foreign language 2)
 b. Types of Shipping

Sea Shipping:
o Shipping by sea can be for various
purposes such as commercial,
recreational or military
o The goods or cargo that gets
transported by sea can be packaged into
boxes, cases, pallets and barrels
o This is done aboard ships and can
transport anything from clothing,
technological gadgets and shoes to cars,
raw materials such as iron or coal and
even oils chemicals.
 Land Shipping (rail & road)  One of the earliest form of transporting cargo and
goods, land shipping is very useful in transporting
goods within a country or across borders which are
not very far away.
 Using trucks to transport goods via land is the
most common means of transportation. Beside
trucks to deliver cargo, it can be trains.

Air Freight
 It makes use of aircrafts to transport
goods. Items that are required to be
delivered quickly can be transported via
air cargo.
 Can’t transport oversize cargo and this is
the most expensive as compared to the
other two methods.
c. Shipping Routes
o Shipping routes or shipping
canals are narrow passage of
water ways in seas and oceans to
help facilitate the passage of
cargo ships. They have been
particularly designed to
accommodate large vessels.
o Provide alternate shorter paths to
cargo vessels in seas and oceans
thus managing traffic and
preventing chaos.

(Kelvinsee, March 28, 2021, Major Shipping

Routes of the World )
 Main Shipping Routes

Strait of Hormuz Strait of Malacca

Suez Canal Panama Canal
The South and East China Seas
 02
The future of cargo shipping
 2.1 Cargo shipping in the past
a. Cargo

 World seaborne trade volumes expanded

by 2.6%, up from 1.8% in 2015, which
was below the historical average of 3%
recorded over the past four decades. Total
volumes reached 10.3 billion tons.
 In 2017, UNCTAD estimates that
seaborne trade will increase by 2.8%,
with total volumes reaching 10.6 billion
tons.

Source: UNCTAD
 b. Transport
- Tanker trade
 In 2016, world seaborne tanker trade – crude oil, refined petroleum products and gas – continued to grow amid
a surplus in oil market supply and low oil prices. Total volumes reached 3.1 billion tons, reflecting an increase
of 4.2% over the previous year.
 Refined oil products and gas trade volumes expanded by 4%, taking total shipments to 1.2 billion tons in
2016.

 LNG shipments were

estimated to have
expanded by 7.2% in
2016, with shipments
reaching 268 million
tons.
 LPG trade rose by
10.1%, with volumes
reaching 87 million
tons in 2016.

Source: UNCTAD
 - Dry cargo trade

 In 2016, world demand for dry bulk

commodities grew at a modest rate of
1.3%, taking total shipments to 4.9
billion tons.
 Within the dry bulk segment, trade in
the major bulk commodities increased
by 1.6%. Iron ore trade showed the
strongest growth with volumes
expanding by 3.4%, reaching 1.4
billion tons in 2016.
 Coal trade diminished in 2016, owing
to flat demand for coal. Total volumes
were estimated at 1.14 billion tons,
with both coking coal and thermal coal
volumes stagnating at 249 million tons
and 890 million tons, respectively.

Source: UNCTAD
- Container trade

Following a modest expansion of 1.2% in 2015, global containerized trade expanded at a

faster rate of 3.1% in 2016, with volumes attaining an estimated 140 million 20-foot.

Source: UNCTAD
c. Shipping routes

- Suez Canal:

 More than 193km in length,

connecting the Mediterranean Sea
with the Red Sea of ​the Indian
Ocean.

 First opened in 1869, the Suez

Canal could accommodate ships of
up to about 4,500 tons at a depth of
6.7 meters.

Two canals (abandoned) under Pharaoh Senusret III

Source: dantri.com
 By 1956, it was able to pass oil
tankers with a tonnage of about
27,000 tons at a depth of 10.7
meters.
 In 2015, this route can receive ships
with a tonnage of about 217,000
tons.

Source: Placebook.org
 - Panama Canal:

 48-mile (77 km) man-made waterway

in Panama that connects the Atlantic
and Pacific oceans.
 Brings in 20 billion USD/year for
Panama (according to 2016 statistics).
 According to the Panamanian
government, the canal's revenue since
December 1999 has exceeded 10
billion USD.
 Over 1,000 ships are transported
through the canal every month.

Source: World security newspaper

- Strait of Malacca

 805 km in length, connecting the East Sea and the Indian Ocean.

 In 2003, half of the oil

transported by sea passed
through Malacca (about 11
million barrels/day).

 According to 2006-2007 data

from the US Department of
Energy, nearly a third of all oil is
transported by ships through this
strait.

Source: Sophie geography

 2.2 Cargo shipping nowadays
a. Cargo

 Approximately 80% of the world's cargo is moved by ships.

 According to a report by UNTACD (United Nations Conference on Trade and
Development), global maritime trade grew by 4% in 2017, reaching 10.7 billion tons
of cargo, an increase of 411 million tons compared to 2016.
 In 2018 the volume of maritime cargo grew by around 2.7% compared with the
previous year and in 2019 the growth reached just 0.5%.
 Due to the Covid-19 pandemic, the year 2020 is expected to see a contraction in the
volume of seaborne trade, the volume should shrink by around 4% compared with
2019.
 The Covid-19 pandemic caused severe disruptions to supply chains worldwide,
leading to plummeting cargo volumes. As the pandemic will be getting under control,
the year 2021 should bring a better outlook for the shipping industry.
b. Shipping

 For a year now, it's been difficult to maintain

the global timetables that regulate
intercontinental shipping, as the COVID-19
pandemic, blank sailings increased by some
200% in February 2020.
b. Shipping

 The shipping industry had to adapt to this new reality, reducing vessel capacity,
cutting costs, and in some cases, increasing freight rates. Countries imposed
varying periods of quarantine and still others allowed access to ships only if they
had not come from specific countries or ports and had been at sea for varying
periods.
 This resulted in blank sailings, reductions in cargo throughput, ships being
diverted from some countries.
c. Shipping route

 Shipping cargo navigate the ocean follow specific shipping routes to

and from the world’s busiest seaports.
 Each day, more than 500 vessels cross the 350-mile-long English
Channel — widely considered the busiest shipping lane in the world
and a critical route in the European shipping network.
 The Strait of Malacca is the shortest sea route between India and
China. It’s one of the most heavily traveled shipping channels in the
world and is a major route for oil transport and goods like Indonesian
coffee, coal and liquified natural gas
Besides, the Panama Canal is one of the
international waterways with more than 14,000
ships navigating it each year. It can now
accommodate vessels carrying up to 14,000.

Suez Canal is used shipping lanes with average of

100 vessels crossing each day.
On March 23, 2021, the container ship Evergreen
made a mistake in the Suez Canal due to a
sandstorm that lost control, causing a great
impact on the global supply chain.
Currently, as climate change accelerates and ice melts in the Arctic
Ocean, the shipping route along Russia’s northern coast that has sat
at the center of discussions on Arctic development. To replace the
routes that has existed for many years, for journeys between Europe
and Asia, the Northern Sea Route can already be two to three weeks
faster than the Suez Canal.
3. Cargo shipping in the future
a. Cargo
o Seaborne trade: rise by 35% to 2030,
12% to 2050
o Increased all trade except crude oil and oil
products, peak around 2030
o Gas and container cargo: rise by 135-
150%

Source: DNV GL 2017 maritime

forecast to 2050

Source: DNV GL 2017

maritime forecast to 2050
b. Shipping

Bigger and Better ship

Going Green
Autonomous Vessels
 Increased
Specialization
Data Analytics
 c. Shipping Routes Suez Canal: 34 days
Artic Route: 23 days.
Arctic Route
- According to a study from the
Copenhagen Business School, the
Arctic Route has the potential to
bypass the Panama Canal and cut the
time of voyages between Asia and
Europe by 40%.
- According to searoutes.com, a ship
traveling from South Korea to
Germany via the Cape of Good Hope,
South Africa, would take
approximately 46 days.
Source: www.businessinsurance.com
 Thai Kra
Canal
- Project: 100km canal between
the Gulf of Thailand and the
Andaman Sea
- $5.3m to research
- About a quarter of the world’s
traded goods pass through the
strait, and a canal would relieve
this pressure and cut sea routes
between the Indian and Pacific
oceans by some 1,100km.

Source: www.newindianexpress.com
 03
Conclusion
We have come up with solutions to better serve for the
future of cargo shipping:
 Improvement of container ships
 Increased Specialization
 Focus on environmental friendliness
 Autonomous Vessels
 Data analysis in shipping operations
 Apply robots and automated machinery in the future
 Construction/development of new shipping routes:
Arctic Route, Thai Kra Canal, etc.