General Introduction to Container Shipping
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1 General Introduction to Container Shipping
2 Discussion Topics History of Container Shipping Container Shipping 101 ships, boxes and trades Innovation in Container Shipping Container Ships and the Environment Slide 2
3 Discussion Topics History of Container Shipping Container Shipping 101 ships, boxes and trades Innovation in Container Shipping Container Shipping and the Environment Slide 3
4 History of Container Shipping Life before the box Slide 4
5 History of Container Shipping Malcolm McLean Father of Containerisation Trucking Entrepreneur North Carolina, USA o In 1955, Malcolm McLean bought a steamship company with the idea of transporting entire truck trailers with their cargo still inside. o Much simpler and quicker to have one container that could be lifted from a vehicle directly on to a ship without first having to unload its contents. Revolutionised cargo transportation and international trade in the last 50 years Slide 5
6 History of Container Shipping 1956 Malcolm McLean converted WWII Tanker, Ideal X. It has reinforced deck carrying 58 metal container boxes as well as 15,000 tons of bulk petroleum Became known as Sea-Land Services 1957 First ship specifically designed for transporting containers, Sea-Land s Gateway City, made its maiden voyage 1960 Matson Navigation Company completed construction of the Hawaiian Citizen, the Pacific s first full container ship International steering groups began discussing what the standard container sizes should be 1961 The International Organisation for Standardisation set standard sizes of which the two most important were, 20-foot and 40-foot lengths The 20-foot container, referred to as a Twenty-foot Equivalent Unit (TEU), became the industry standard reference The 40-foot length container - literally 2 TEUs became known as the Forty-foot Equivalent Unit (FEU) 1966 First international voyage of a container ship by Sea-Land from Port Elizabeth in the USA to Rotterdam in the Netherlands with 236 containers Slide 6
7 Discussion Topics History of Container Shipping Container Shipping 101 ships, boxes and trades Innovation in Container Shipping Container Shipping and the Environment Slide 7
8 Container Shipping 101 Container Ships Container Boxes Main Trades Intermediate Goods Finished Goods Raw Materials Slide 8
9 Container Shipping 101 Ships Feeder/Feedermax Vessel < 1,000 TEU size 1,231 vessels / 717,436 TEU* (Average 582 TEU) Use in short-sea trades e.g. between China and Japan Intermediate Vessel 1,000 2,999 TEU size 1,846 vessels / 3,359,293 TEU* (Average 1,820 TEU) Use in Intra-Asia trades e.g. between Singapore and Chennai Handysize: up to 2,000 TEU; Sub-Panamax: 2,000 2,999 TEU DeepSea Vessel > 3,000 TEU size 1,318 vessels / 6,847,786 TEU* (Average 5,197 TEU) Use in major trades such as Transatlantic, Transpacific and Asia-Europe Panamax: up to about 5,100 TEU; Post-Panamax: above 5,100 TEU As of 1 st st March 2008: 4,395 vessels / 10.9 million TEU By the start of 2009, fully cellular fleet is predicted to reach over 12.3 million TEU of capacity! * Clarksons Research Services (as at 1 st March 2008) Slide 9
10 Container Shipping 101 Ships Newbuilding Prices Feeder/Feedermax Vessel Size TEU US$20.5m US$21.0m 1,000 TEU US$23.0m US$27.5m Intermediate Vessel Size ,700 TEU US$36.0m US$42.0m 2,000 TEU US$40.0m US$46.0m 2,750 TEU US$48.5m US$55.5m DeepSea Vessel Size ,600 TEU US$67.5m US$ 83.0m 6,200 TEU US$89.0m US$108.0m 8,100 TEU - US$137.0m 13,100 TEU - US$170.0m Source: Clarksons Research Services Slide 10
11 Container Shipping 101 Ships Significant trends in container shipping: o Increasing economies of scale o Increasing average size of vessels being seen on almost all major trades Source: Clarksons Research Services Slide 11
12 Container Shipping 101 Boxes Container capacity is measured in twenty-foot equivalent units (TEU) 20 feet (6.09 metres) in length, 8 feet (2.44 metres) wide and 8 feet or 8 feet 6 inches in height Another key size is the forty-foot container (i.e. One FEU = two TEUs) 40 feet (12.18 metres) in length, 8 feet (2.44 metres) wide, and 8 feet or 8 feet 6 inches in height Can be loaded with about 30 tons of cargo High cube containers with heights of 9 feet 6 inches (2.9 metres) have also come into common use although they occupy more space and reduce the capacity of the vessel An empty TEU container weighs approximately 2 tons A standard 20-foot container can hold 24,914 tin cans Available in a variety of types that include end-opening, side-opening, half heights, opentop, flatrack, refrigerated (known as reefer ), liquid bulk (tank), and modular The equivalent of about 141 million loaded twenty-foot containers moved across the oceans in 2007* * Drewry Shipping Consultants Ltd Slide 12
13 Container Shipping 101 Trades Without global container shipping, most international trade would simply not happen as... Most of the world s manufactured goods and products are carried by container ships. That means that almost everything around you in your home, office or internet cafe has at some point (or more likely multiple points) seen the inside of a container. Between 1982 and 2005, containerised cargo trade grew three and a half times as fast as world GDP and 40% faster than international trade overall. World container traffic in 2007 was estimated at million TEUs, representing a 12% increase compared to 2006*. Global container trade has now seen five consecutive years of average double-digit growth*. In March 2008, it was estimated that the global container fleet had a total capacity of 10.9 million TEUs. The estimated most popular shipping routes* (by TEUs) in 2007 were as follows: Intra-Asia 28.3 million Transpacific 20.6 million Asia Europe 18.6 million Transatlantic 6.5 million * Drewry Shipping Consultants Ltd Slide 13
14 Discussion Topics History of Container Shipping Container Shipping 101 ships, boxes and trades Innovation in Container Shipping Container Shipping and the Environment Slide 14
15 Innovation in Container Shipping From Simple Steel Box.. To Global Supply Chain Factory From origin Warehouse Consolidation using container shipping Distribution... to destination Warehouse Retail Information Technology Slide 15
16 Innovation in Container Shipping THEN. Ideal X First ship to carry containers in 1956 Carried 58, 35-feet metal container boxes Emma Mærsk Emma Mærsk was the largest container ship ever built As of 2008, the longest containership Officially, able to carry around 11,000 TEU boxes although suspected that capacity is significantly greater than the listed capacity between 13,500 TEU and 15,200 TEU* AND NOW * AXS-Alphaliner Slide 16
17 Innovation in Container Shipping StackTrain Technology invented by APL in 1984 Streamline the transfer of containers from one mode to the next (from ship to train or train to truck) Maximize the efficiency of containerized transportation - doubled train capacity because containers could be stacked two high Slide 17
18 Discussion Topics History of Container Shipping Container Shipping 101 ships, boxes and trades Innovation in Container Shipping Container Shipping and the Environment Slide 18
19 Container Shipping and the Environment It is estimated that on average a container ship emits: Forty times less CO 2 than a large freight aircraft Over three times less than a heavy truck Source: The Network for Transportation and the Environment Slide 19
20 Container Shipping and the Environment Container shipping is also estimated to be more energy efficient: Two and a half times more than rail Seven times more than road Source: The Network for Transportation and the Environment Slide 20
21 Container Shipping and the Environment Do You Know..... a container ship now typically emits a quarter of the CO 2 it did in the 1970s as well as carrying up to ten times as many containers?.. it is now possible to recycle 98% of most container ships?.. containers are made of steel and are 100% recyclable?.. container shipping lines take steps to ensure that their ships travel at the optimum speed for efficient fuel consumption?.. increasing use of lower sulphur fuels and maximum sulphur content allowed in marine heavy fuel is now limited to 4.5% and 1.5% in defined areas?.. all fuel is cleaned by filters and purifiers on board before use to help produce cleaner emissions?.. replacing tin-based anti-fouling paint on ship hulls with a more environmentally-friendly alternative? Slide 21
22 Container Shipping and the Environment New Uses for Old Containers... Slide 22
23
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