Trade Marine Ltd. International Woodfiber Resource and Trade Conference September 17 19, 2018 Southern Sun Elangeni & Maharani, Durban, South Africa

Transcription

1 Trade Marine Ltd. International Woodfiber Resource and Trade Conference Southern Sun Elangeni & Maharani, Durban, South Africa

2 Background Founded in London as ship broking and biomass sourcing agent in 2014 Part of Akartas Holding, Pacific Shipping Group branch, Turkey

3 Current activities Identifying new, potential suppliers of wood chips, logs, olive biomass etc, and help them with logistics and market understanding, regulations, pricings, feasibility study Helping existing suppliers and buyers to optimize the logistic chain Acting as project/commercial consultants of a new commercial terminal in Brazil, Ship broking mainly covering Turkey needs

4 Getting the supply from source to destination port Inland logistics 01 Port logistics 02 Ocean logistics 03 Port logistics 04

5 I. Inland logistics (from source to ship) Distance to the port up to KM it makes sense to apply road transportation, over 300 KM railway makes sense if available. (Some of Ukrainian forests are as far as 1000KM) cost and availability of storage: to secure safe loading without demurrage it is important to have the full stem in the port by vessels arrival. free capacity of the port: the biggest bottleneck in some countries especially in Brazil, Rio Grande state Ports prefer fast moving, high value, low stow factor cargo

6 Setting up a logistic chain cont. stevedoring cost: a supplier can offer the cheapest supply before loading, stevedores and port operators can still kill the trade. In Imbituba, Santa Catarina where the port is running at around 25% of its full capacity, loading and storage costs around 18 usd/gmt. (the speed of the loading is correlated to the cost) Sometimes loading/discharging rate is deliberately reduced in order to avoid demurrage and make money on dispatch. However in this case the demurrage is paid up front with the freight. Dispatch is losing money.

7 II. From load port discharge port (ocean logistics) port disbursement: part of the freight. Despite Ukraine is close to Turkey, the freight used to be very high due to excessive port costs (over usd per ship). Now it has been reduced to around Same in Venezuela where the recent PDA s for a wood chip carrier are USD. Chile is also very expensive (over ) Port characteristics (phyisical restrictions, regulations, congestions, facilities/load and discharge rates) Ship characteristics

8 Wood Chip Carriers vs. conventional bulkers Ship's Type Chip Carrier-a Chip Carrier-b Chip Carrier-c Chip Carrier-d Chip Carrier-e Chip Carrier-f Chip Carrier-g Cape Kamsamax Panamax Handymax Small Handy Hold Capacity TPC 2.6Mil 3.0Mil 3.2Mil 3.6Mil 3.9Mil 4.1Mil 4.3Mil 6.7Mil 3.4Mil 3.1Mil 2.4Mil 1.3Mil Deadwei ght LOA Beam Depth Summer Draft Wood Chip (S.Draft base) S/F=85cft/mt Wood WLTHC on Pellet (S.Draft Ballast base) Condition S/F=55c ft/mt 45.7Mt 33,800Mt 175.0m 31.0m 21.40m 10.07m 30,808.1Mt 32,800.0Mt 52.2Mt 42,791Mt 200.0m 30.1m 20.80m 10.82m 35,216.2Mt 41,791.0Mt 55.1Mt 43,951Mt 195.0m 32.0m 21.50m 10.57m 37,866.2Mt 42,951.0Mt 57.5Mt 49,524Mt 199.9m 32.2m 22.75m 11.55m 42,432.2Mt 48,524.0Mt 66.8Mt 54,033Mt 203.5m 37.2m 22.30m 10.82m 46,312.8Mt 53,033.0Mt 66.8Mt 54,086Mt 203.5m 37.2m 22.30m 10.82m 48,069.6Mt 53,086.0Mt 70.1Mt 64,533Mt 209.9m 37.0m 22.85m 12.03m 50,588.2Mt 63,533.0Mt m m m m m m m 118.4Mt 172,000Mt 289.0m 45.0m 24.0m 17.75m 78,985.7Mt 121,068.7Mt 18.00m 70.6Mt 82,175Mt 229.0m 32.3m 20.05m 14.43m 40,422.9Mt 62,471.8Mt 15-16m 66.6Mt 74,000Mt 225.0m 32.0m 19.0m 13.95m 36,998.5Mt 56,179.6Mt 15.70m 55.0Mt 52,454Mt 189.9m 32.2m 17.0m 12.02m 28,167.1Mt 42,531.0Mt 13.60m 38.5Mt 28,000Mt RISI International 169.0mWoodfiber 27.0mResource 14.0m and Trade 9.78m Conference 15,589.6Mt 23,092.9Mt 9m

9 Where can you use? Wood chip carriers Self discharging is necessary (some Turkey ports) Consecutive voyages possible, can be planned and fixed forward No stem/storage restrictions Conventional bulkers Self loading is necessary (new wood chip ports) Spot, not consecutive cargos, Smaller capacity ports (cannot handle 100k m3 wood chips at once) Wider availability is necessary (resticted ports like Venezuela)

10 III. From discharge port to power plant/factory Same CIF delivered on a wood chip carrier or on a bulk carrier might still not mean the same for the reciever. For example stevedores might charge extra to discharge a bulk carrier as it might require shore cranes or more trucks/bulldozers compared to wood chip carriers. It is also slower and usually demurrage of a bulk carrier is much higher than that of a chip carrier. Interesting fact: one onboard crane can discharge around mt per hour, there are 3 of them on a chip carrier. Therefore max discharging capacity of a wood chip carrier is usually shore side bottleneck. (can reach ton/day)

11 III. From discharge port to receiver Biggest bottleneck here could be the storage capacity of the receiver. In the Nordic countries wood chip carriers cannot really participate in the trade due to their volume. In some Danish ports the capacity is about m3, which is the exact capacity of a middle size wood chip carrier so storage must be completely empty before new supply arrives = supply risk

12 Case study Ukraine to Turkey Distance from load port is very long Private ports are expensive, state owned ports are inefficient In the past mainly coastal trades (up to 15k per shipment) On coastal trade: advantage, lower capital commitment, JIT delivery, lower storage costs, more fresh cargo FOB FREIGHT On wood chip carrier trade: advantage lower CIF price, more secure planning and sourcing (commitment) FOB FREIGHT SAVED BY RECEIVER

13 Route optimization In the Atlantic very few chip carriers are trading becuase on single account might not be able to use a ship consecuitively (seasonality, max available volume, portfolio of buyers) Best route China opening, Chile loading, Portugal unloading, USA loading, Turkey discharging, Brazil loading, China unloading

14 Best route for a wood chip carrier Laden Colonel Setubal Mobile Igsas Rio Grande Rizhao Total Ballast Blue Ballast Red Laden

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