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Maritime Transport

1. Maritime Transport

2. Transport geography

3. Supply chains

4. Statistics

There are over 140,000 ship and 170,000 shipowner and manager entries in actual maritimetransportation industry.

Ships are the least regulated mode oftransportation.

Ship represents a large capital investment thattranslates into a large cost per day.

Port time is expensive and presentsdiseconomies of scale (port operations, theoptimal size of ship).

Generally, the longer a trade route is, the largerthe share of sea‐days in a voyage, and the largerthe optimal ship size will be.

1.1 Maritime transport overview

Factors effect the optimal ship size; the utilization of ship capacity at sea the “trade balance” loading and unloading rates at the ports, the various costs associated with the ship.

A ship is a long‐term investment. The useful life of a ship spans 20–30 years.

During the life of a ship a lot of market volatility may be encountered (eg; fluctation in freight rates

In the short run the owner may reduce the daily variable operating cost by

slow steaming (reduction in fuel consumption)

the owner may lay up the ship till the market improves.


Lay up a ship significantly reduces its daily variable operating cost.

When the market is depressed,owners scrap older ships.

The value of a scrapped ship is determined by the weight of its steel

(the “lightweight” of the ship)

there is high supply of ships for scrap the price paid per ton of scrap drops.


Ship management concerns all activities required to operate the ships effectively, except providing equity finance.

The Baltic and International Maritime Council (BIMCO) SHIPMAN contract is often used between ship owner and manager.

The contract defines the ship management services;

Crewing management Technical management Insurance arrangements for hull and

machinery, and protection and indemnity (P&I) insurance.

Commercial management Other services

1.4 Ship management

The operational expenses are used to keep the ship in operation and vary per ship.

Manning is the largest component of operational expenses OPEX. Expenses for ship finance and voyage operations are not OPEX.

The ship manager is paid for its services with the annual management fee (roughly 5% of annual operational expenses).

The ship owner is obliged to indemnify the ship manager against any third‐party claims.

1.5 Ship management

There are different classifications inthe industry;

regularity of service cargo ship charter type

The type of merchant vessel employedon a trade route is determined basicallyby the traffic carried. There were 3 maindivisions;

1. Liner2. Tramps3. Specialized vessels (tankers)

A tramp may be put on a liner berthto compete for liner cargoes.Conversely liners may at times carrytramp cargoes.

1.6 Shipping industry

DRY BULK LIQUID BULK DRY CARGO

PRIMARY DB Crude Oil GENERAL CARGOIron Ore Chemicals CarCoal Wine TVGrains Veg-Oil etc Refrigerator

SECONDARY DBNickelChromeSugar, Salt

TRAMP (BULK CARGO)

LINER (GENERAL CARGO)

All cargoes that needs special handling and storage

1.7 Shipping industry classification per traffic

Reason for the division; all ships have specific routes and all routes has specific trade and economic issues.

Ships mainly divided into 3 groups as; Dry cargo ships (Bulk Ships,

Containers, RO/RO ) Tankers Others

Dry bulk ships and tankers are operating in tramp trade.

Container ships, Ro/Ro, Reefer operates in liner trade.

1.8 Industry division according ship types

Scheduled trading began with the advent of steam power in 1820s.

When ships became independent from the wind and were much vulnerable to adverse weather, timetabling of services began to be possible as steam power became more reliable and vessels larger

In 1860s regular scheduled services were a feature of many main trade routes.

Liner trade ships operating on fixed routes with a fixed schedule.

Raw materials, manufactured goods mainly carried by container ships which offer; very reliable, tightly scheduled and frequent services with a high level of cargo safety.

1.9 Liners history

• Operate on fixed routes and fixed sailing schedules,serving a group of ports.

• Involves an adequately sized fleet and a fairly large shore establishment.

• Compose ¼ of seaborne trade.• Generally, cargoes loaded in

containers. • Enables unitization and carry

heterogenous products• General Cargoes: mainly

consumption goods; clothes, TVs,computers.

1.10 Liners history

• After 90s container trade developed rapidly.

• Decrease after global crisis in 2008.• Vessels are not loaded with one

shipper’s cargo• Even vessels are not full, voyage is

completed as per schedule.• Supplied vessel capacity is

important.• Joint voyage planning, sharing

vessel,common use of port equipments; to keep in accordance with the voyage determined and rigth planning of capacity.

1.11 Liners history

CONTAINER SHIPS MULTI PURPOSE VESSELS4.395 SHIPS, 10.924.515 TEU 2.707 SHIPS, 1.139.859 TEU

CONTAINER SHIPS GENERAL CARGO LINER378 SHIPS, 5.34m. DWT

"DEEP SEA"POST PANAMAX GENERAL CARGO TRAMP(>3.000 TEU) 726 SHIPS, 6.46m DWT1.318 SHIPS 647.786 TEU CONBULKER

389 SHIPS, 13.20m DWT"MID GROUP"PANAMAX,SUB-PANAMAX BARGE/HEAVY LIFT(1-2.999 TEU) 41 SHIPS, 1.56m DWT1846 SHIPS 3.359.293 TEU RoRo

1.067 SHIPS, 9.54m DWT"FEEDER"FEEDER,FEEDERMAX CAR CARRIERS(<1.000 TEU) 650 SHIPS, 9.34m DWT1.231 SHIPS717.436 TEU REEFER

1.231 SHIPS, 330.1m CU.FT

1.12 Liners trade : main ship type and capacities

• Bulk; unscheduled and irregular shipments

• Terms: Common trader, general trader, free maritime transportation, unscheduled trader

• Ready to carry all types of dry bulk cargo from any origin port to destination port at any time and to provide the legacy and safety of the voyage.

• Cargo based.• Low value cargoes: coal,grain,ores,

timber; carried in complete shiploads.

1.13 Tramp services

• Many of the cargoes are seasonal.

• Homogenous characteristic, handled and carried in bulk forms.

• Ships:Mid sized, unequipped and unassigned for regular trade; with two to six holds,sub‐standard.

• Often family owned companies tend to merge.

• Engaged under a document called a charter party; on a time or voyage basis.

1.14 Tramp services

• In the ancient times, Romans import grain from North Africa in bulk and threfore they built a special vessel fleet.

• Since 19th century the world trade volume increases; parallel to this bulk cargo transportation increased in order to reach economies of scale.

• The trade almost doubled after 90s till today.

• Main reason; economic growth of China, India and South East Asia at the end of 20th century.

• Today 80 % of seaborne dry cargo trade is bulk.

• Mostly bulk ship carries only one commodity at a time and called bulk carrier.

• They vary in size; a few hundred tonnes cargo carrying up to 300.000 tonnes

1.15 Tramps history

International trade volume International trade structure Worldwide geographical distribution of raw

materials, agricultural and industrial products, finished and semi‐finished goods production and consumption places.

Essentials that form the market are especially market of the cargo, transportation routes and vessels used in maritime transportation.

It’s important to understand the characteristics of the cargo, its own market and specific routes of the transportation.

Dry bulk cargo compose; 57% in tons, 47% in ton‐miles basis of tramp trade volume.

33% of total maritime transportation in both tons and ton‐miles basis.

Only dry bulk vessels compose 34% of total world fleet.

1.16 Dry bulk transport demand

Cargo ships designed for carrying a particular commodity as a result of demand.

Ore carriers, sugar carriers and the tankers can be the samples.

The world’s tanker fleet is divided between tramp operators (under a charter party) and those owned by oil companies eg; BP VLGC).

The larger proportion is owned and operated by oil companies and employed on regular routes; operation in this respect similiar with liner operator.

Most independently owned tankers are on long‐term charter to the oil companies.

There is a worldwide network of tanker routes;• Crude oil is transported from the oilfields to

refineries;• Petroleum and fuel oil from refineries to

distribution centers (DCs) and bunkering ports

1.17 Specialized vessels

Cargo ships designed to carry crude oil, petroleum products, natural gas and chemical substances, liquefied natural gas (LNG), liquefied petroleum gas (LPG), vegetal oils, wines

As a Tramp form, tankers have necessary technological infrastructure to carry such goods.

Tankers cover 1/3 of world seaborne trade in tons carried.

Oil crises, wars, political issues in world arena effects this industry more than the other maritime transportation industries.

Therefore, compared to others tanker trade is fluctuating compared to others.

1.18 Specialized vessels : Tankers

Countries that export and import are distinct

Importers; China, Japan and other Asian countries,European countries, US

Exporters;Saudi Arabia and other Middle East countries, Iran, Iraq, United Arab Emirates and Kuwait; Latin America, North Sea countries like England and Norway.

Routes are certain and long.

Has a freight system; WORLDSCALE.


The long distances between production and consumption areas effects the demand on transportation of the crude oil.

Middle East countries with the 60% petroleum reserves are far from the consumption areas.

From Cape of Good Hope to Europe: 12.000 miles; to Japan 6.000 miles

Long routes, petroleum (as an important input) demand increase also increases the tanker trade in ton‐miles.

• Tankers compose; %43 in tons, 53% in ton‐miles basis of tramp trade.

• 38% of total maritime transportation in ton‐miles basis.

• Considering dry bulk as 33% of total maritime transportation; in ton miles basis tanker has the highest portion.

• Tanker fleet accounts for 36% of world fleet.


CAPACITY CAPACITY(CLARKSON) (LR-FAIRPLAY)

HANDYSIZE 10.000 -40.000 DWT 20.000 -34.999 DWTHANDYMAX 40.000 -60.000 DWT 35.000 -49.999 DWTPANAMAX 60.000 -80.000 DWT 50.000 -79.999 DWTAFRAMAX 80.000 - 120.000 DWT 80.000 - 99.999 DWTSUEZMAX 120.000-200.000 DWT 100.000 - 149.999 DWTVLCC/ULCC 200.000 DWT < 150.000 - 299.999 DWT/ 300.000 DWT <

TANKERS

1.21 Tankers classification

CRUDE OIL DIRTY PRODUCT CLEAN PRODUCTULCC/VLCC 60% - -SUEZMAX 30% 5% -AFRAMAX 10% 35% 20%PANAMAX & HANDY - 60% 80%

LIQUID TANKERSCARGOES (SHARE IN TOTAL CARRIAGE IN %)

1.22 Tankers and their cargoes

1.23 Types of Tankers

LINER TRAMP

High variety Low varietyHeteregenous HomogenousPartly loads Shiploads

SHIPPER More than one Generally oneConventional Liners Bulk CarriersRO/RO TankersContainer Combined VesselsLash Conventional TrampsSeabeeBacatMostly more than two ports Mostly between two ports

FREIGHT MARKET Determined Flexible and may change dailySERVICE COST EXPENSIVE CHEAP

Freight Conferences Union of ShipownersOutsidersOperate many vesselsFleet design is a must

Regular and consistent;whether cargo is available or not

Irregular and discontinious if cargo is not available

General cargo (high volume-high value)

Bulk Cargo (low value)

SERVICE ORGANISATIONS

Fleet size varies upon tonnage requirement and voyage frequency

Possibility to serve with less vesselService depend on the cargo not the route

Profit margin is fluctuating due to market conditions

SERVICE

CARGO

SHIP TYPES

VOYAGE

SHIP OPERATION

PROFIT Profit margin is more determined

Mostly "port time" more than "voyage time"

Mostly "voyage time" more than "port time"

1.24 Liners and Tramps comparison

CAPACITY CAPACITY(CLARKSON) (LR-FAIRPLAY)

HANDYSIZE 10.000 -40.000 DWT 20.000 -34.999 DWTHANDYMAX 40.000 -60.000 DWT 35.000 -49.999 DWTPANAMAX 60.000 -80.000 DWT 50.000 -79.999 DWTCAPESIZE 80.000 DWT< 80.000 DWT<

DRY BULK CARGO SHIPS

1.25 Dry bulk ships capacities

CARRIERSIRON ORE COAL GRAIN BAUXITE-ALUMINA PHOSPHATE

CAPESIZE 70% 45% 7% - -PANAMAX 22% 40% 43% 45% 20%HANDY 8% 15% 50% 55% 80%

CARGOES (SHARE IN TOTAL CARRIAGE IN %)

1.26 Dry bulk ships cargoes

1.27 Containerships generations

• Vessels have their names according to their characteristics.• Panamax; the largest vessel that may pass Panama Canal safely.• Capesize has the highest capacity and can not pass Suez Canal.• Therefore trade route determined round Cape of Good Hope.

1.28 Containerships generations



3. Supply chains

4. Statistics

1. The Geo‐strategy of International Transportation 2. The Panama Canal 3. The Suez Canal 4. The Strait of Malacca 5. Other Important Maritime Passages

2.1 The strategic space for international transport

Features of international transportation Involves geopolitical considerations. Passages subject to conflicts aimed to assure a control of a strategic location. International transport infrastructures:

• Ports, airports and canals.• Also subject to geopolitical considerations.• Access to strategic resources or key markets.

Acknowledged early in the history of international transportation:• "Whosoever commands the sea commands trade; whosoever commands

the trade of the world commands the riches of the world, and consequently the world itself". Sir Walter Raleigh (c1610).

2.2 The geostrategy of international transport

Maritime transportation Dominant purveyor of international freight distribution and evolves over a

global maritime space. Constrained system:

o Profile of continental masses.o Forced to pass through specific locations corresponding to passages,

capes and straits. Freight flows:

o Commodities.o Parts.o Finished goods.


SuezHormuz

PanamaMalacca

Bosporus

Magellan

Good Hope

Gibraltar

Bab el-Mandab

2.4 Maritime routes and strategic locations

Standard Capacity Depth TEU

Panama 120,000 dwt 16 meters (58 feet) 12,000

Suez 120,000 dwt 16 meters (58 feet) 12,000Malacca 300,000 dwt 21 meters (68 feet) 18,000

2.5 Capacity of key strategic maritime passages

Hormuz

Malacca

Sunda

Lombok

Makassar

Tsugaru

2.6 Shipping lines and strategic Indian and Pacific passages

Conquest Initially a mean to acquire and conquer oceans, territories and resources Maritime technology:

o European powers first to improve significantly maritime technology.o Able to establish maritime trading roads and colonies all over the world.

Railroad technology:o Mean to achieve territorial conquest.o North America for nation building.o Africa for colonialism.


Competition Mean to compete on the global economy. Prevalent force in shaping modern transportation systems. Right to carry national passengers and freight:

o Often reserved for national transport companies.o Cabotage laws.o Air freedoms.

Transport related activities also compete:o Shipbuilding, trade and insurance.o Usage of flags of convenience.


Cooperation Common interests favor agreements. Involving access to infrastructures or setting standards:

o 1792: most countries along the Rhine agreed to free navigation.o 1871: Canada and the United States agreed to the development of the St.

Lawrence Seaway in 1954.o International trade within Europe was enhanced by the adoption of a standard

over rail gauges (1.435 meters).o International air transportation is subject to regulations over security and prices.o Emergence of economic blocs:• European Union and the North American Free Trade Agreement.

• Leans on common rules about

transport standards and prices.


2.10 The northern East – West freight corridor

Russia

ChinaCanada

Uni

ted

Stat

es

Kazakhstan

Mongolia

Vostochny

Lianyungang

Archangel'sk

Brest

Druzhba

Zabaykalsk

Oulu

Lokot

Perm'

Astana

Harbin

Urumqi

Beijing

Irkutsk

Lanzhou

VologdaVainikkala

Ulaanbaatar

Novosibi rsk

Yekaterinburg Presnogorkovka

Halifax

MoscowSt. Petersburg

Haparanda/Tornio

BostonNew York

Rotterdam

Transatlantic Segment

Rail Main Trunk (Broad Gauge)

Rail Main Trunk (Standard Gauge)

Rail Connector (Broad Gauge)

Rail Connector (Standard Gauge)

Russia

Sweden

FinlandNarvik

Haparanda/Tornio

OuluVainikkala St. Petersburg

Port

Gauge Change

Rail Terminal

g

Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, November 2005

Scandinavian Segment

Azimuthal Equidistant Polar Projection

Halifax 8 Days Narvik

1 Day

Tornio0.6 Day

0.3 Day

Vainikkala1 Day

1 Day

Vostochny8.2 Days5,600 km 600 km 970 km 9,870 km

Freight Transport Sequence

Source: International Union of Railways (2004) The Northern East West (N.E.W.) Freight Corridor, Transportutvikling AS.

Control The control of strategic places. Vulnerability:

o Developed countries are becoming more vulnerable to supplies of freight and raw materials.

o Some developing countries, like China, are becoming dependent on supplies of food and energy.

United States:o Became more dependent on

external supplies of oil. Foreign policy shifted at keeping an eye

on strategic locations in oil trade, dominantly in the Middle East.


IranIraq

Saudi ArabiaEgypt

Turkey

Hormuz

Bosporus

Bab el-Mandab

Suez

Oman

Yemen

PG: Persian Gulf

15.5

3.3

3.8

3.0

1.0 Oil transited (millions ofbarrels per day)

2012-2013 figures

Sudan

2.12 Shipping lanes and strategic maritime passages in Middle East

2.13 Oil transited at major strategic locations ( 2014)

Context Joins the Atlantic and Pacific oceans at the Isthmus of Panama:

• From Cristobal on Limon Bay, an arm of the Caribbean Sea, to Balboa, on the Gulf of Panama.

• Ranks as one of the greatest engineering works of all time. Composed of three main elements:

• Gatun Locks (Atlantic side).• Gaillard Cut (continental divide)• Miraflores Locks (Pacific side).

Dimensions:• Slightly more than 64 km long.• Depth of 12.5 m (40 feet) and width of 91.5 m. Depth 16 m since 2016

Prevents a 21,000 km detour around South America. Handles about 12% of the American international seaborne trade.

2.14 The Panama Canal

Gatun Locks

Miraflores LocksPedro Miguel Locks

8 0 84 Miles

Atlantic OceanAtlantic Ocean

Pacific Ocean

Gatun Lake

Panama City

Colon

Gaillard Cut

Gatun Dam

Balboa

Cristobal

Panama Canal Railway

2.15 The Panama Canal

2.16 The Panama Canal : Gatun locks

2.17 The Panama Canal : Gaillard cut

Early history Interests:

• Began with explorers of Central America the early 16th century:• In 1534, the Spanish surveyed the Panama region.• Was judged impossible.

American involvement:• Gold was discovered in California in 1848.• Panama Canal railway constructed in 1855.

French attempts:• French Geographical Society of Paris signed a treaty with Columbia (then

the owner of the Province of Panama; 1878).• French Canal Company undertook construction (1879‐1899).• Project failure: financial problems, tropical diseases (20,000 workers

killed) and the technical difficulties of trying to build a sea level canal.

2.18 The Panama Canal : early history

American intervention Panama revolt from Columbia (1903), supported by the United States. Hay‐Bunau‐Varilla Treaty:

• United States guaranteed the independence of Panama.• Perpetual lease on a 16‐km (10 miles) strip with complete sovereignty.• Compensation of $10 million and an inflation‐indexed annual

compensation. Construction

Constructed between 1904 and 1916. Cost of $387 million (compensation to Panama and $40 million to purchase

the previous project from the French Canal Company). Under the authority of the U.S. Army Corps of Engineers. 70,000 people worked on the project and about 5,600 died in the process. Sanitation of the entire canal area (mosquitoes; yellow fever and malaria).


• Operations and traffic– Under the jurisdiction of the Panama Canal Authority (1999):

• Collect tolls on all ships crossing the canal.• A loaded ship pays about $2.57 per net ton.• The average toll is about $45,000.

– Traffic:• 13,000 ships transit the canal every year, (35 ships per day).• After Enlargement it is expected to rise to 16.000 ships/year• Grains (43% of the traffic transited).• Containers (11%) and petroleum products (10%).• Loss of some of its strategic importance due to super‐tankers.

– Panamax standard:• Equals to 65,000 tons and a draft of 12 meters.


Context Running across the Isthmus of Suez in northeastern Egypt. Connects the Mediterranean Sea with the Gulf of Suez, an arm of the Red Sea. Dimensions:

• Artificial waterway of about 163 km in length.• Width of 60 meters.• No locks, because the Mediterranean Sea and the Gulf of Suez have

roughly the same water level. Ships of 16 meters (58 feet) draft can make the transit. Capacity:

• 150,000 deadweight tons loaded.

• 25,000 ships per year, but handles about 14,000.

2.21 The Suez Canal

History First canal excavated about the 13th century BC. Expand trade between the Mediterranean and the Middle East. Restoration efforts were abandoned in the 8th century AD. Colonial expansion of Europe in Asia revitalized the idea of a canal.

French construction French and Egyptians interests (1859‐69). Cost of about 100 million dollars. Brought forward a new era of European influence in Pacific Asia. Saving 6,500 km from the circumnavigate African route.

2.22 The Suez Canal : early history

16,000 KM

10,000 KM

2.23 The Suez Canal : geographical impact in 1869

British purchase In 1874, Britain bought the shares of the Suez Canal Company and became its

sole owner. According to a 1888 agreement, the canal was open to the vessels of all

nations in peace or in war. Britain claimed the need to control the area to maintain maritime power and

colonial interests. In 1936, Great Britain acquired the right to maintain defense forces in the Suez

Canal. Strategic importance during World War II to maintain Asia‐Europe supply

routes for the Allies.

2.24 The Suez Canal : early history

2.25 The Suez Canal : early history – end of S.XIX

Nationalization Nationalized by Egypt (1956). Israeli ships were not permitted to cross the canal. Threat was also extended to France and Britain:

Refused to help finance the Aswan High Dam project. Israel, France and Britain invaded Egypt (1956). Egypt sank ships in the canal; closing it between 1956 and 1957.

Israel – Arab Wars Tensions between Israel and Arab nations in the 1960s:

• Six Days War Israel and Egypt (1967); Invasion of Sinai by Israel.• Canal Closed (Between 1967 and 1975)

Significantly destabilized international transportation. Re‐opened in 1975 as Egypt agreed to let Israel use the canal.

Modern canal Widened between 1976 and 1980 to accommodate super‐tankers 150,000 dwt. Support the oil trade between Europe and the Middle East. Ultra large crude carriers (ULCCs) cannot pass through the Canal. Important with economic growth taking place along Pacific Asia. Growing movements of containers along the Suez Canal.

2.26 The Suez Canal : modern times

2.27 The Suez Canal : modern times , 1990

Context– One of most important strategic passage of the World:

• Supports the bulk of the maritime trade between Europe and Pacific Asia.• Account for 30% of the world trade.

– Main passage between the Pacific and the Indian oceans:• Accounts for 50,000 ships per year (600 per day).• Second passage: The Strait of Sunda (Indonesia).• Outlet to the South China Sea.

– Dimensions:• 800 km in length and between 50 and 320 km in width (2.5 km at its

narrowest point).• Minimal depth of 70 feet.• Can accommodate ships of about 120,000 tons.

2.28 The Malacca Strait

0 200 400 600 800100Miles

IndonesiaIndian Ocean

Strait of Malacca

Singapore

Strait of Sunda

South China Sea

2.29 The Strait of Malacca

History Important passage point between the Chinese and the Indian worlds. Controlled at different points in time by Javanese and Malaysian kingdoms. Arab control:

• From the 14th century, the region came under the control of Arab merchants.

• Established several fortified trading towns.• Malacca: most important commercial center in Southeast Asia.

European control:• Shifted as the era of European expansion began in the 16th century.• In 1511, Malacca fell to the Portuguese.• Marked the beginning of European control over the Strait.


English control In 1867, England took control of the passage. Singapore as a main harbor. Other important centers such as Malacca and Penang, forming the Strait

Settlements. Control lasted until the Second World War and the independence of Malaysia

in 1957. Growing importance of the strait with the growth of trade. Singapore:

• Located at the southern end of the Strait of Malacca.• One of the most important

port in the world.• Major oil refining center.


2.32 The Port of Singapore

• The Strait of Hormuz Strategic link between the oil fields of the Persian gulf and the gulf of Oman

(Indian Ocean). Between 48 and 80 km of width (6 km wide navigation channel). The most important strategic passage in the world (oil). Contested by Iran and the United Arab Emirates.

• Gibraltar Peninsula between the Atlantic and the Mediterranean oceans. Obligatory passage point between these two oceans. 64 km long and varies in width from 13 to 39 km. Under British control since its conquest from Spain (1704). Second World War: Gibraltar blocked the access to the Atlantic to the Italian

and German fleets of the Mediterranean.

2.33 Other important maritime passages

Bosporus Passage of 30 km in length and of only 1 km in width at its narrowest point. Only link between the Black Sea and the Mediterranean Ocean. Passage of growing strategic importance, notably after the fall of the Soviet

Union. The Caspian Sea has vast oil reserves. A large amount must transit trough the Black Sea and Bosporus to reach

external markets. About 50,000 ships a year, including 5,500 tankers, are transiting through the

passage each year.


40 0 4020 Miles

Black Sea

MediterraneanOcean

Marmara Denizi

Bosporus

Istanbul

Turkey

Turkey

Greece

2.35 The Dardanelles and Bosporus maritime passages

2.36 The Bosporus maritime passages

The Strait of Magellan Discovered in 1520 by the Portuguese explorer Ferdinand Magellan. Separates South America to Tierra del Fuego. 530 km long and 4 to 24 km of width. Held secret during more than one century to assure the supremacy of Portugal

and Spain for the Asian trade of spices and silk. The Panama Canal (1916) and the North American transcontinental bridge in

the 1980s undermined its strategic importance. The Cape Good Hope

Extreme tip of Africa discovered by the Portuguese (end of the 15th century). Separates the Atlantic and Indian oceans. Vasco de Gamma (1497) and was the first European to reach India by sea. Lost some of its strategic importance with the widening of Suez canal.




3. Supply chains

4. Statistics

Extraction Processing Fabrication Assembly Distribution Retailing

Extraction Processing

Supply Chain

Logistics Chain 1

Transport Chain 1

LC 2 LC 3 Logistics Chain n

TC 2 TC 3 TC 4 TC 5

Assembly Distribution Retailing

Productionplanning

StorageGate Ga

te

Gate GateRoadPortMaritimePortRail

Orde

rpla

nning

Sortin

g StorageSortingGate Ga

teOr

der

plann

ing

Prod

uct F

ocus

Tran

spor

t Foc

us

Source: adapted from L. Ramstedt and J. Woxenius (2006).

3.1 Transport Chain , Logistic Chain and Supply Chain

3.2 Transport Chains : Ports functions

3.3 Transport Chains : Ports as logistic centres

3.4 Transport Chains : the key role of the Container

3.5 Transport Chains : the key role of the Container

3.6 Transport Chains : tools to analyse bottlenecks

APL RR & Sea Container terminal

LOS ANGELES Port (160 Mtons, 8 MTEUs)

“LAND-BRIDGE” East-West rail .

Two- floor train

1,500 m. 600 TEUs

ALAMEDA CORRIDOR 30 km.

Capacity : 100 convoys / day

COST : 1 TEU / km = 1 US$

•American rail network , mostly Private

•Full connectivity and interoperability between rail operators

•Rail track gauge 1.435 mm all the country

• Common Voltage, signalling and synchro systems

•One single working language : english

3.7 Intermodality sea‐rail in US

HAMBURG Port ( 180 mTON , 10 MTEUs)

• Rail network part of TEN‐T• Rail track Gauge : UIC‐ 1435mm : 250.000 KM• Other 10 track gauges : 1.000, 1667, 1776mm• Voltage supply systems : 12 different AC/DC• Control & Signalling systems : 20 different• Working languages : 22 different• Cost 1 TEU / km : 6.4 US$

3.8 Intermodality sea‐rail in EU

Copyright ©

Demand Forecasting

Purchasing

Requirements Planning

Production Planning

Manufacturing Inventory

Warehousing

Materials Handling

Packaging

Inventory

Distribution Planning

Order Processing

Transportation

Customer Service Strategic Planning

MaterialsManagement

PhysicalDistribution

Logistics Supply ChainManagement

ICT

Marketing

1980s 1990s 2000s1960sFragmentation Consolidation

Warehousing

Materials Handling

Packaging

Functional Integration Value Capture

3.9 Evolution of logistical integrations 1960 ‐2000

Raw Materials & Parts Manufacturing Distribution

RawMaterials

Storage NationalDistribution

RegionalStorage

LocalDistribution

Retailers

Supply Chain Management

RawMaterials

DistributionCenter

RetailersManufacturing

Cus

tom

ers

Cus

tom

ers

Conventional

Contemporary

Material flow (delivery)

Information flow (order)Core component

3.10 Cargo flows : conventional and contemporary models‐

1PL

2PL

3PL

4PL

Manufacturing& Retailing

Transport chain

Logistics chain

Supply chain

Cargo owners

Carriers

Logistics serviceproviders

Lead logistics providers& consultants

Supply chain integration

Actors Services

Service integration

3.11 The four layers of Logistic services

Dispersed

Clustered

Point to Point Hub-and-spoke

Locations

Network Structure

3.12 Logistic networks

Central City

Urban Logistics Zones

Urban Freight Distribution Centers

Urban Freight Stations

Scope

Suburbia

Distribution CenterA

A

B

C

D

3.13 City logistics and land use

Transport Infrastructure Investment

Additional Transport Capacity, Efficiency, Reliability and Level of Service

Lower Transport Costs

Shorter Transit Times Business Expansion

Increased Productivity

Increased Competitiveness

Economic Growth

3.14 Transport infrastructure and economy growth

Delivery units for goods

Moving storage units

Delivery units for parts

Moving storage units

Production unit

Assembly andwarehousing

Assembly line

Warehousing

3.15 Logistics just‐in‐time

2.5 Las Tecnologías de la Información1 Free trade zone US ‐UE S‐XIX2 Maquila industries Mexico 19653 Industrial Free Zone Ireland 19704 Export Free Zone Ireland 19755 Export Processing Zone and Duty‐Free Korea 19756 Export Processing Zone Filipinas 19777 Special Economic Zone China 19798 Investment Promotion Zone Sri Lanka 19819 Foreign Trade Zone India 198310 Free Zone EUA 198311 Export Free Zone Korea 199012 Logistic Activity Zone Spain 2000

Total World 2014: approx 1,000 zones

3.16 Ports Free Trade zones and other logistic centers



3. Supply chains

4. Statistics

4.1 Source . UNCTAD Maritime Transport Review 2015

4.2 Source : UNCTAD Maritime Transport Review 2015

4.3 International seaborne trade 1980 ‐ 2014

4.4 Structure of International seaborne trade 2014

4.5 Structure of World seaborne trade 2014 by Region

4.6 Structure of World seaborne trade 2014 by Cargo

4.7 Structure of World seaborne trade 2014 by Containerized cargo

4.8 Structure of World seaborne trade 2014 by Sea Routes

4.9 Structure of World fleet by vessel types

4.10 Structure of World fleet by vessel types

4.11 The top 12 liner companies

4.12 International maritime transport costs factors

x 1.000 x MM x MMRANK PORT COUNTRY UNIT TONS TEUS US$

1 Shanghai China MT 696.985 33.6 1.0002 Singapore Singapore FT 560.888 32.5 9303 Tianjin China MT 477.339 12.9 734 Guangzhou China MT 472.760 15.3 1505 Qingdao China MT 450.111 15.5 4836 Rotterdam Netherlands MT 440.464 11.6 2177 Ningbo China MT 399.250 17.3 3408 Port Hedland Australia MT 372.301 0.0 1509 Dalian China MT 320.843 9.9 9510 Busan South Korea RT 313.295 17.6 6811 Hong Kong China MT 276.055 22.3 30012 Qinhuangdao China MT 253.293 0.0 90

4.13 World Ports : KPI Key Performance Indicators (2013)

MT Metric Ton US 1.000 kg

RT Revenue Ton UK 1.000 kg x 1 m3

FT Freight Ton US 1.000 kg x 40 ft3

Maritime Transport

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