P.1

Introduction to Liner Shipping

Instructor: Eric Ting

National Taiwan Ocean UniversityDepartment of Transportation and Navigation Science

P.2

E

S

N

W

We are the world.

P.3

1. Introduction to Liner Shipping

RTM

BRV

FXT

LEH

HKG

UKB

KHH

SIN HKG

KEL

TYO

NGO

•Fleet•Containers•Route, Schedule•Space (Slots)•Ports of call•Cargo

•Head Quarter•Subsidiaries•Branch Offices

•Agents•Forwarders•Direct Accounts

P.4

RTM

BRV

FXT

LEH HKG

UKB

KHH

SIN HKG

KEL

TYO

NGO

Westbound

Eastbound

An Example for Service Route: Asia/N. Europe

P.5

An Example for Service Route: Asia/N. Europe

HKGKHH

UKBNGO

TYO

KEL

SIN

RTMFXT

BRV

LEH

P.6

Calling ETB

?

LIS

RTM

BRV

FXT

ANR

HST

MIA

CHS

ETD Buffer

MIA

ANR

HST

FXT

BRV

LIS

RTM

CHS

NEO?

Service Networks

Calling ETB

?

LIS

RTM

BRV

FXT

ANR

HST

MIA

CHS

ETD Buffer

MIA

ANR

HST

FXT

BRV

LIS

RTM

CHS

NEOCalling ETB

?

LIS

RTM

BRV

FXT

ANR

HST

MIA

CHS

ETD Buffer

MIA

ANR

HST

FXT

BRV

LIS

RTM

CHS

NEO

Rail

FeederService

Trailer

P.7

US USEC

SA

FE

AUNZ

N.Europe

MED

AF

Canada

End to End Service RoutePendulum Service RouteRound The World Service RouteCombined Service Route

Asia USWC

E

S

N

W

Service Route Patterns

P.8

N. America N. America

N. Europe

Asia10,530

4,807

5,753

3,474

2,296

1,622

Med

8661,985

4861,040

2004 Container Trade Flow Volumes

of East/West Axis (Unit: 1000 teu)

Source: The Drewry Container Market Quarterly, June 2005.

P.9

67

37

146 6 5

148

52.3%

23.7%

13.1%

4.9%2.1% 2.1% 1.8%

0

20

40

60

80

100

120

140

160

Europe/Far East Transpacific Pendulum Med/Far East Europe/ECSA Europe/MiddleEast

Middle East/FarEast

Strings

Ves

sels

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Perc

enta

ge

Source: The Drewry Container Market Quarterly, June 2005.

2004 Post-Panamax Containership

Deployment Patten

P.10

N. America N. America

N. Europe

Asia10,530

4,807

5,753

3,474

2,296

1,622

Med

8661,985

4861,040

Source: The Drewry Container Market Quarterly, June 2005.

2004 Container Trade Flow Imbalance

Volumes (Unit: 1000 teu)

5,7232,279

1,119

674

554

P.11

20,450

18,410

11,09310,439

10,227

8,843

7,179

6,0005,450 5,152

87.6%

60.1%

77.9%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

HongKon

g

Sing

apor

e

Shan

ghai

Shek

ou

Busan

Kaohs

iung

LosAng

eles

Hambu

rg

Antwer

pDub

ai

Long

Beach

Qingda

o

Bremerha

ven

Laem

Chaba

ng

Tian

jin/Xinga

ng

Ningb

o

Guang

zhou

/Hua

ngpu

Algec

iras

Xiam

en

Keelung

Valenc

ia

Oaklan

d

Taco

ma

Dalian

Hampton

Roads

Barce

lona

Genoa

Sant

os

Vanc

ouve

r

Seattle

Container Ports

Thr

ough

puts

(uni

t:10

00T

EU

)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Cum

ulat

ive

Perc

enta

geag

e

Top10

Top 30

Top 20

2004 Top 30 Container Port Throughputs(Unit: 1000 teu)

P.12

Mega Carriers and Shipping Alliances

NYK

P&O Nedlloyd

MSC

Hapag Lloyd

APL NOLMitsui

OSK

OOCL

Hyundai

Maersk Sealand

COSCO

K Line

Yangming

Evergreen & LT

Hanjin

Grand

AllianceCKYH

New

World

Alliance

CMA-CGM

P.13

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.14

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.15

Q & AThanks for your attention.

Your questions or commentswill be greatly appreciated.

Email: ericting@mail.ntou.edu.tw