sb iv class unit 1 2 2

7/31/2019 SB IV Class Unit 1 2 2

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For shipping, all standsand falls with worldwide


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macroeconomic

conditions.

Developments in the

world economy andmerchandise trade are

also driving developments

in seaborne trade.

World seaborne trade in

2011 grew by an

estimated 7 per cent.


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Tanker trade 33%,

Dry Cargo 40%

Containerized cargo

20%

The five major dry

bulks, namely iron ore,

coal, grain, bauxite and

alumina and phosphate.

Asia is by far the most

important loading andunloading area, with a

share of 40 per cent of


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total goods loaded and 55

per cent of goods

unloaded.

Other loading are theAmericas (21 per cent),

Europe (19 per cent),

Oceania (11 per cent) and

Africa (9 per cent).


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1) A Global new design

a potential growth inregionalization;

multilateral trade

negotiations;

the proliferating tradeagreements;

efforts of balancing

global economic growth

and trade flows; andthe complex nexus

between energy


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security, oil prices,

transport costs, climate

change and generally

environmental

sustainability.

2) Energy security, oil

prices and transport costs

3) Cutting carbon

emissions from

international shipping

4) Environmental

sustainability and


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corporate social

responsibility

5) Maritime piracy and

related costs

The containership fleet

1.6% (1980) to 13%

(2011).


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35 per cent of

seaborne perishable reefer

cargo was transported by

specialized reefer vessels

Dry bulk fleet 27%

(1980) to 38% (2011).

Oil Tanker fleet 50%

(1980) to 34% (2011).


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In January 2011, there

were 103,392 seagoing

commercial ships in

service

In 2011, Container

ships increased to 8.7 per

cent over 2010.

The general cargo fleet

remained stable.


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Indonesian traffic, and for

exports from Saudi Arabia

to India and Egypt.

Under exceptionspermitted by IMO, single-

hulled tankers are allowed

to trade until 2015, so long

as they are under 25 yearsold and are able to pass a

condition assessment

survey.


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532

475

184

0

100

200

300

400

500

600

Dry Bulk Vessel Oil Tanker Container Ship

Millionsofdwt

Vessel Types

Structure of World fleet in 2011


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As on 2011, owners

from Greece controlled anestimated 16.2 per cent of

the worlds deadweight

tonnage a record

amount, equating to morethan 202 million dwt.

Next were Japan (15.8

per cent), Germany (9.2


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per cent) and China (8.6

per cent).

In terms of vessel

numbers, owners fromGermany, Japan and China

have more ships than

Greek owners.

In terms of nationally

flagged and nationally

owned tonnage, the Greekfleet continues to be by far

the worlds largest,


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accounting for 65 million

dwt, followed by the

Chinese-owned and

-flagged fleet which

accounts for 46 million

dwt.

Eight of the top ten ship

owning countries useforeign flags for more than

half of their tonnage.

The exceptions are the

United States, which uses


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the national flag for53 per

cent of its nationally

owned fleet, and owners

from Hong Kong (China),

who use the flag of Hong

Kong (China) for 75 percent of their tonnage.

Together, the top 35

shipowning countries have

an estimated market share

of 95.6 per cent of the

world tonnage.


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The market share of the

top 20 liner shipping

companies reached 70 per

cent of TEU capacity in

January 2011.

The highest year-on-year

growth was recorded by

Chilean carrier CSAV(Compaa Sud Americana

de Vapores), followed by

PIL from Singapore, and

Israels Zim.


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Maersk Line from

Denmark occupy the top

position

MSC (2nd) and

CMA CGM (3rd) -

Compagnie Maritimed'Affrtement /CompagnieGeneral Maritime,

grew three to four timesfaster during the year.


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In 2011, more than 68 per

cent of the worldstonnage is registered

under a foreign flag.


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Most of the major flags of

registration are notably

from Panama, with 306

million dwt (21.9 per centof the world fleet), Liberia

(11.9 per cent) and the

Marshall Islands (7.1 per

cent).

In January 2011, the 35

largest flags of registration together

accounted for 93.8 per


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cent of the world fleet, a

further increase from the

93.2 per cent share of one

year earlier.

The top five registries

together accounted for

52.6 per cent of the

worlds dwt, and the topten registries accounted

for 72.7 per cent both

figures again showing

increases over theprevious year.


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As regards the number of

ships, the largest fleets

are flagged in

Panama (7,986),

United States (6,371),Japan (6,150),

Indonesia (5,763),

China (4,080) and

Russian Federation(3,485).


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The year 2010 set a

new record in the history

of shipbuilding, the

deliveries recordedamounted to 3,748 ships,

with a total gross

tonnage of 96,433,000

GT.


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In the container sector

especially,

nondeliveries amounted

to an estimated 39 per

cent of the order book.

In terms of gross

tonnage,

45.2%

Dry bulkcarriers,

27.7% Tankers.

15.2% Container

ships


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Demolitions of tankers

more than doubled,

whereas demolitions of

container ships

decreased by more thanhalf.

As demand has picked

up, new orders have

resumed. The ordersplaced with Japanese

shipyards as at January


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2011 had more than

tripled compared to one

year earlier.

End-of-2010 data forChina suggest that new

orders in Chinese

shipyards increased

fourfold in the space ofone year.

Many of the new ordersare for container ships,

with the value of the


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vessels ordered during

the first three months of

2011 reportedly

amounting to $7 billion

compared to orders

worth $2.8 billion for drybulk ships and just $0.5

billion for tankers

1) The price that a carrier,

that is, a ship-owner or


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charterer, charges for

transporting cargo is

known as the freight rate.

2) The freight ratedepends on many factors,

including the cost of

operating the vessel (for

example, crew wages,fuel, maintenance and

insurance); the capital

costs of buying the vessel,

such as deposit, interestand depreciation; and the

cost of the shore-side


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operation, which covers

office personnel, rent and

marketing.

3) Freight rates are not

all-inclusive but a subjectto numerous additions, for

example, the currency

adjustment factor,

terminal handling charges,war risk premiums, piracy

surcharges, container seal

fees, electronic release of

cargo fees, late fees orequipment shortage fees.


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4) Maersk Line, the

largest liner shipping

company, lists on its

website 107 possible fees

and surcharges.

5) In general, freight

rates are affected by the

demand for the goodsbeing carried and the

supply of available vessels

to carry the goods.


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6) In addition to the

fluctuations in supply and

demand, the bargaining

power of the service user

(the shipper), the number

of competitors and theavailability of alternative

transport modes also

affect price.

7) In the tanker market,

ship operators decided to

use very large crudecarriers (VLCCs) and ultra-

large crude carrier


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(ULCCs) as floating

storage facilities. The

advantage of laying up

tanker vessels is that the

cargo can be quickly put

into storage by anchoringthe vessel at a suitable

place.

8) Freight rates can be

obtained through an agent

or shipbroker. The

shipbroker, whose role isto bring together cargo

and vessel owners, may


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calculate, publish and

maintain indices on

historical data.

The top 20 container

ports combined

accounted for approximately 47.9 per

cent of world container.


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In 2009, the top 20

container ports recorded

negative growth, except

the ports of Guangzhou(China), Tanjung Pelepas

(Malaysia) and Tianjin

(China).


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Hutchison Port Holding

of Hong Kong, China,

with a combined

throughput of 75

million TEUs

Following closely

behind is APM Terminals,

with an estimated 70million TEUs.

PSA International ofSingapore increased its

throughput of containers


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by 14.4 per cent to 65.1

million TEUs.

China Merchants

Holdings Internationalincreased its throughput

in 2010 by 19.2 per cent

to 52.3 million TEUs with

the launch of newoperations in Vietnam

and Sri Lanka.


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DP World of Dubai

increased its container

throughput by 14 per

cent to 49.6 million TEUs.

COSCO Pacific

container throughput

grew by 19 per cent to

48.5 million TEUs.


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Shipping connectivity is

an important determinant

of trade costs, and

understanding them will

allow policymakers to

improve their countrystrade competitiveness.

The LSCI covers 162coastal countries and is

made up of five

components:

(a) the number of ships,(b) their container

carrying capacity,


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(c) the number of

companies,

(d) the number of

services provided and

(e) the size of the

largest vessels thatprovide services from

and to each countrys

seaports.

END OF UNIT-2END OF UNIT-2

sb iv class unit 1 2 2

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