container shipping – the challenges for perishable tradesjulian thomas, ceo region south america...

Container Shipping – The challenges for perishable trades

Cool Logistics Americas, 14th May 2014Julian Thomas, CEO Region South America East Coast, Hamburg Süd & Aliança

2Julian Thomas, Cool Logistics – May 14th 2014

Market Trends3

Reefer Market2

Industry Challenges1

1

Agenda

1

‐15

‐10

‐5

0

5

10

15

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Container Transport Growth World Economic Growth

Growth in Container Transport / World Economic Growth (in %)

3

Forecast

Source: Clarkson Research January 2014, Int. Monetary Fund - WEO Update January 2014

Julian Thomas, Cool Logistics – May 14th 2014

1

Global Cellular Fleet Growth* 2004-2017F

4

Source: AXS Alphaliner, Cellular Fleet Forecast January 2014*Forecast Figures take into account delivery deferrals and slippage .Scrappings and de-cellings are estimated to reach 400,000 teu in 2014 and 250,000 teu in 2015-17.


1

1

Decline in revenue

5

0

20

40

60

80

100

120

140

160

180

200

9|42

9|47

9|52

10|0

510

|11

10|1

610

|22

10|2

710

|32

10|3

710

|45

10|5

011

|03

11|0

911

|14

11|1

911

|24

11|2

911

|34

11|3

911

|45

11|5

012

|03

12|0

912

|14

12|1

912

|24

12|2

912

|34

12|3

912

|45

12|5

013

|03

13|0

913

|14

13|1

913

|24

13|2

913

|34

13|3

913

|45

13|5

014

|03

14|0

814

|13

14|1

8

Rate Development – Asia-Europe

source: Shanghai Container Freight Index


1

1

Bunker Price Development 2006-2014 IFO 380 Rotterdam

Source: Platts Oilgram Bunkerwire [CON-C]


1

1

Average operating margin Container Carrier* 2009-2013

7

4%

-2%

Q3 Q4 Q1 Q2 Q2Q2Q1 Q1

-6%

Q2

7%

Q4

-18%

Q3

-8%

1%

Q1

-19%

15%

-18%

-12% -12%

Q3 Q4

10%

-1%

-11%

Q3

-1%

Q4

-4%

Q1

-1%

0%

Q2 Q3

-4%

Q4

*: Average of APL, CMA CGM (from 2010), CCNI, CSAV, CSCL, EMC, Hanjin, HMM, Hapag-Lloyd, KL,Maersk, MOL, NYK, RCLWHL, YML, Zim Source: AXS Alphaliner Newsletter No. 14, 2014

2009 2010 2011 2012 2013


1

1

Focus on costs

Ship size

Consortia

Slow Steaming


1

1

Development of Newbuilding Orders and Deliveries 2009-2016F

*Forecast Figures are based on the current orderbook. Source: AXS Alphaliner-Database, Januar 2014


1

10

To cope with the reefer demand and drive down cost our vessels are becoming bigger

3

Year

2013/14

2010/12

2004/09

2001/07

1990

1981

Class

Cap San

Santa

Monte/Rio

Cap San/Bahia

Cap Trafalgar

Monte Rosa

Length(m)

333

300

272/287

254

200

185

Width(m)

48

43

40

32

32

28

Capacity(TEU)

9,600

7,100

5,500/5,900

3,700

2,000

1,200

Reefer Capacity(plugs)

2,100

1,600

1,365

800

650

270

3


11

Economy of Scale – the new “Cap San Class”

Cap San Nicolas and Cap San Marco were launched in May 2013 with a nominal slot capacity of 9,600 TEU.

The two vessels were the largest in Hamburg Süd’s history.

With 2,100 plugs, their reefer capacity is the largest in the world.

In total ten ‘Cap San’ vessels will be delivered in 2013/2014.

1 3

Specifications

Slot capacity: 9,600 TEU

Reefer plugs: 2,100

Length overall: 333.2 m

Width: 48.2 m

Draught max: 14 m

Speed: 21 knots


1

Focus on costs

Ship size

Consortia

Slow Steaming


1

• Operational Statistics – Brazilian Ports, Performance 2013

(A) Total delays: 83,296 hours. Berthing delays: 68,837 hours (83%). Unberthing delays: 14,459 hours (17%)

68.8

14.5Esperas para atracação

Esperas paradesatracação

source: CNNT

Operational Statistics

11


14

Agenda

1

Market Trends3

Reefer Market2



1

Growth in Container Transport / World Economic Growth (in %)

15

‐15

‐10

‐5

0

5

10

15

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Container Transport Growth World Economic Growth Reefer Market Growth

Forecast

Source: Clarkson Research January 2014, Int. Monetary Fund - WEO Update January 2014


2

16

Majority of the seaborne reefer commodities are less impacted by global financial activity than dry commodities

1

Source: Drewry

2

38%

17%

25%

18%

2%

Fruit & Vegetables (excl Bananas)

Bananas

Meat & Poultry

Fish & Seafood

Others


17

Majority of the global reefer volume moves in North-South Trades

11 2


18

Market Reefer Rates ECSA to NEUR

11 2

Source: Container Trades Statistics

60

70

80

90

100

110

120

13020

08 Feb

Apr

Jun

Aug Oct

Dec

Feb

Apr

Jun

Aug Oct

Dec

Feb

Apr

Jun

Aug Oct

Dec

Feb

Apr

Jun

Aug Oct

Dec

Feb

Apr

Jun

Aug Oct

Dec

Feb

2009 2010 2011 2012 2013 2014

ECSA to NEUR Reefer Aggregated Price Indices

ECSA to NEUR


19

Hamburg Süd has made significant investment in the reefer segment

1 2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Hamburg Süd Reefer Fleet

∆ 2000 – 2013 ~ 54,000 Units


1

Participation in the reefer business requires significant investments

2

20

44.000

46.000

48.000

50.000

52.000

54.000

56.000

2013 2014

40'HR Replacement New Invest

5%USD 46 mill

USD 76 mill

USD 122 Mill

* Based on Hamburg Süd’s fleet of 40‘hc, annual replacement of 8% and annual growth of 5% to cater for market growth

40‘HR Units



Market Trends3

Reefer Market2


1

Agenda

22

Market Trends

1 3

ASIA

China Population growth projecting +5% upto 2020 Emerging Middle Class Aging population

Bovine Meat Poultry – incl. Islamic Countries Fresh Fruit

MID EAST

Poultry Fresh Fruit

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2,006 2,007 2,008 2,009 2,010 2,011 2,012 2,013 2,014

MID EAST ASIA

Container Reefer Market


23Presentation 2012

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container shipping – the challenges for perishable tradesjulian thomas, ceo region south america...

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