Reducing transportation costs by using large bulkcarriers

Transcription

1 Reducing transportation costs by using large bulkcarriers Ad Ligthart Cement Distribution Consultants Birth of the super terminal 1st & 2nd November 2000 The Mills House Hotel Charleston, South Carolina

2 The use of larger bulkcarriers can reduce the transportation costs of cement but only if a number of conditions can be met

3 Size, type and age of ship Shipping distance Loading and unloading days Fuel costs Port costs Type of contract Market conditions

4 Size, type and age of ship - Capital cost Larger ships are more expensive but not pro rata - Crew cost Are almost the same for older handy size and modern Panamax vessels - Maintenance cost Depending strongly on age - Insurance and overhead Depending strongly on age

5 Shipping distance Approx. current daily time charter - Handy size ( Dwt) US$ (approx. $ 0,32 / ton) - Handy max ( Dwt) US$ (approx. $ 0,25 / ton) - Panamax ( Dwt) US$ (approx. $ 0,20 / ton) The longer the distance the more beneficial it is to use larger ships

6 Loading and unloading days - Ship loading capabilities of cement supplier - Average capacity of shipunloading system at cement import terminal - When is the ship clean!!

7 Loading and unloading days - Ship loading capabilities of cement supplier Handy size Dwt tpd 5 days Panamax Dwt tpd 13 days! Big ships require high loading rates!

8 Loading and unloading days - Average capacity of shipunloading system at cement import terminal a) maximum capacity of unloader b) number of movements from hold to hold c) clean-up capability Big ships require high unloading rates!

9 Loading and unloading days - When is the ship CLEAN! The larger the ship the larger the clean-up problem

10 Making a hold Machine clean

11 But after that there is still a lot left

12 Panamax ships carry mostly grain Machine clean in a Panamax ship still means that several hundreds of tons are left. Who removes this? The problems with cement clean-up make Panamax ship owners very reluctant to accept cement cargo which adversely affects the transportation cost

13 Fuel costs Fuel consumption at 13 knots - Handy size 28 tons/day - Handy max 35 tons/day - Panamax 40 tons/day

14 Port costs - Port costs are higher for bigger ships but not pro rata - Port costs at present are growing and are becoming a major factor where to locate a cement terminal

15 Type of contract Spot market Time charter Contract of afreightment

16 Market conditions Direction of trade routes (Front haul versus back haul) Availability of ships of the required size on the required route Trend: the fleet of handy size vessels is ageing and not being replaced. Ship owners focus on Handymax and Panamax size vessels in respect to newbuildings

17 Dimensions (approx) Handysize Handymax Panamax 25/ Dwt 40/ Dwt 60/ Dwt Length 180 m / 590 ft 210 m / 650 ft 240 m / 790 ft Beam 26 m / 85 ft 30 m / 100 ft 32 m / 106 ft Draft 10,6 m / 35 ft 12 m / 40 ft 13,5 m / 45 ft Holds

18 Freight comparison (very approx!!) Handysize Large Handymax/Panamax / tpd / tpd loading / discharging loading /discharging Asia - US westcoast $ 13,00 / t $ 9,00 Asia - US Gulf / Eastcoast $ 23,00 / t $ 18,50 East Med - US Gulf / Eastcoast $ 12,00 / t $ 10,50 Note: Above will vary according to actual load and discharge ports. As yet very few Panamax ship owners are willing and reported as fixing Bulk Cement

19 Conclusions The use of larger ships can reduce the transportation costs but only if the following conditions are met: The cement supplier should have a port with sufficient draft, high loading rates (and sufficient buffer storage) This strongly limits the number of possible suppliers The cement import terminal needs to have a suitable dock with sufficient draft high capacity shipunloading and large buffer storage (except for mid stream ship to barge transfer) A solution has to be found to improve the clean-up of the vessels