Winning the Future Now

Transcription

1 AUTOMOTIVE LOGISTICS SOUTH AMERICA Ana Quaresma December 06 th, 2016 Winning the Future Now

2 Automotive Logistics South America Agenda This is Wallenius Wilhelmsen Logistics Global auto trends 04. WWL & South America 03. Production Shifts

3 This is Wallenius Wilhelmsen Logistics A global offering covering the entire outbound logistics value chain Ocean Transportation Terminal Services SUPPLY CHAIN SOLUTIONS Inland Distribution Technical Services

4 Global auto trends Connectivity tops executives perceived key trend until 2025 Consumers behavior perceived to change rapidly Executives perceived key trend until 2025 Source: KPMG Global Automotive Executive Survey 2016

5 Human driven Autonomous Global auto trends The automotive industry is rapidly changing A shift from a product centric to a service driven model «Owned Autonomy» Sensors, algorithms, mechatronics «Autopia» Autonomous PODS On-demand public transport Asset owned Asset shared New technology and user habits has the impact to change the auto industry «Today» 100 year old model No computer tech «Shared Mobility» Human driven mobility on-demand via software Source: Morgan Stanley, McKinsey

6 Global auto trends Electric vehicles to see significant growth lot of new models enter the global market Manufacturers appear to have made the technology choice Strong growth in number of fully electric car models offered in the global auto market, outgrowing any other alternative technology EV models, number on offer in the market, FC FC Oct15 FC Apr Average price of lithium-ion battery packs used in EVs fell 65% over the period and continues to drop. +95% % Source: GMI

7 Global auto trends Electrification of the vehicle - a growing market By 2020, sales of alternative fuel vehicles (AFV) are expected to double. This means some changes for the companies transporting these types of vehicles WWL has transported electric cars for several years and is taking steps to make sure it s ready to handle these new types of vehicles in the years to come

8 Production shifts Automakers using Mega-Platforms to reduce costs All larger manufactures using platforms Flexible platforms where the OEMs can adjust length between the shafts and in the front/end Economy of Scale Platforms....allow the manufacturer to serve different niches in the market...simplifies production..allows for more efficient service..reduces costs

9 Production shifts The automotive industry has become more global and flexible Opportunistic sourcing of manufacturing Automotive manufacturing increasingly opportunistic in choice of location Several factors influence sourcing decisions: US Tupelo-138k Canada Cambridge-274k Turkey Sakarya-64k China Tianjin -287k Japan Kanto Iwate-45k Takaoka -35k Sendai -31k Taiwan Chung Li-121k Currency situation Trade agreements Skilled labor vs price of labor Inbound and outbound logistics Brazil Indaiatuba-73k Pakistan Bin Qasim-49k Thailand Gateway -37k Vietnam Me Linh -6k Politics and policies S Africa Isipingo -12k Toyota have in plants in 11 countries that produce the Corolla model. Volume for sales in Western Europe has shifted from Japan to Turkey Manufactures makes production facilities more flexible This makes it easier to change the models that are produced at the plant. Examples of OEMs can change model of production over the weekend increased complexity and flexibility in the global auto industry makes it harder to forecast flow volumes

10 Production Shifts & our Trades Ocean transportation, processing services, supply chain solutions, terminal services and inland distribution to auto, heavy equipment and specialised cargo OEMs

11 This is Wallenius Wilhelmsen Logistics WWL South America South American Ports Regular Calls Challenges Opportunities

12 Market under pressure The RoRo markets are rough Auto volumes driving improvement, HH remains under pressure Development in global cargo shipments has seen some improvement since fall 2015, led by automotive volumes Automotive, HH and BB cargo, exports, y-o-y comparison of 12mo moving average, Q Q Note: Total export volume of roro type cargo, not distinguishing on mode of transportation Source: GTA, GMI

13 South America auto sales Auto sales in South America expected to recover slowly after the fall Import from outside South America 29% in 2015 expected to increase to 36% in 2023 Import to S Amr from outside S America Domestic S Amr production -1,673 (-31.2%) 5,355 1,485 4,354 1,271 3,682 1,132 3,644 1,154 3,786 1,214 3,962 1, % 4,245 1,354 4,592 1,427 4,963 1,485 5,298 1,568 3,870 3,083 2,549 2,490 2,572 2,681 2,891 3,165 3,478 3,

14 South America - Highlights - Auto market growth (10-15%) Vehicle restriction - Low copper price Chile - Presidential Election - Tax reduction - Quotas Ecuador Bolivia Peru - Investments (Construction, Mining) - Mining & Social - Agriculture growth

15 Thank you! Ana Quaresma Head of Commercial - Latin America ana.quaresma@2wglobal.com Brazil, Sao Paulo 2wglobal.com