APL UPDATE LONG BEACH MARCH 2019 APL UPDATE

Transcription

1 LONG BEACH MARCH 2019

2 % YoY growth Trans-Pacific market expected to remain robust in 2019 Trans-Pacific Supply & Demand YoY% Growth % 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% Demand +6.0% Supply +7.0% Beat the Tariffs rush Forecasted 3.0% -3.4% 8.7% 4.1% Demand +3.3% Supply +3.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Market showing restraint in capacity growth; Option to further rationalize if demand weakens FY YoY% 5.5% 2.7% Supply 3.1% 2.1% Demand Against an exceptionally high 2018 Q4 demand Source: PIERS, CTS for historical volumes Alphaliner, Drewry Container Forecaster Q4 and APL analysis for forecasted growth 2

3 Despite tariff war, China will remain a major US exporter Exports from key Asia emerging countries are nowhere near China s scale today 2018 share of US imports YoY % growth % 5% 3% 2% 2% China Vietnam India Thailand Indonesia Source: PIERS/IHS Markit 3

4 LA-LB port congestion an industry-wide issue LA-LB is the most complex port environment in the US: 12 container terminals Handles >16M TEUs p.a. 30,000 gate moves daily Beat the tariffs rush: BCOs scramble to bring inventory into US What happened in Q4 2018? 34 extra loaders: Adding 250,000+ TEUs Port volume surge: +17% YoY in Dec 2018 Shippers experienced: Full warehouses Local dwells up 3x Slower cargo availability Truck turns >90 mins Truck power shortage Chassis dislocation Rail connectivity issue Source : IHS Markit, 30 Jan

5 FMS commitment LA-LB is the most complex port environment in the US: 12 container terminals Handles >16M TEUs p.a. 30,000 gate moves daily Beat the tariffs rush: BCOs scramble to bring inventory into US What happened in Q4 2019? 34 extra loaders: Adding 250,000+ TEUs Port volume surge: +17% YoY in Dec 2019 Shippers experienced: Local dwells up 3x Chassis dislocated Lack of truck power Rail delays Source : IHS Markit, 30 Jan

6 sidesteps the LA-LB congestion New off-dock express rail service offers daily departures and shaves 4 days transits into key inland destinations No appointment, no queue; 25-min truck turn-time via Bobtail gate EXX remains >90% on-time Guaranteed chassis for local EXX delivery, from APLdedicated pool 6 99% local EXX cargo on wheels and available for pick-up within 12 hours of vessel operation

7 Choose EXX for its proven performance in speed, timeliness and service WHITE GLOVE SERVICE from dedicated APL team throughout the journey WHEELED CARGO Within 12 hours of vessel discharge CARGO PICKUP by trucks averaging* 100% >90% SPACE & EQUIPMENT availability upon booking confirmation no rolls ON TIME 11 days from Shanghai 12 days from Ningbo 99% 25minutes from entry to exit at FMS terminal Source: On-time performance based ion Seaintel s Ocean Liner Performance for Q4 2018; Others based on APL s internal analysis in Jan 2019 data. *Average truck turn time via EXX-dedicated Bobtail gates 7

8 Cuts 4 days of inland transits with daily-departing express rail Available for shipments sailing from Shanghai on 14 March onwards City *Includes Ocean transit + 3 days dwell 8

9 Cargo available on wheels within 2 hours of discharge at L.A. Specially reserved for dry 40 containers on APL s services: Eagle Express (EX1) South China 1 (SC1) Pendulum Loop 1 (PE1) NEW! Guaranteed chassis from APL s dedicated pool Instant appointment confirmation Dedicated bobtail gates for swift pick-up NEW! Expanded to all origins in Asia * EXPRESS ACCESS LOS ANGELES - FMS *Terms & Conditions apply Effective voyages: SVC Vessel Voyage POL ETA POD ETA EX1 President FD Roosevelt 0DB3NE1PL Qingdao, 7 Mar 19 L.A., 24 Mar 19 PE1 APL Detroit 0TU4ZE1PL Port Klang, 6 Mar 19 L.A., 3 Apr 19 SC1 CMA CGM Alaska 0TX2HE1PL Fuqing, 3 Mar 19 L.A., 23 Mar 19 9

10 End-to-end visibility to optimize your supply chain Data & Services Two Product Offerings Your Benefits Geolocation Temperature Humidity Advanced Data (AD) US$90*/ container *volume discounts available. Talk to your APL sales rep Monitor transit time, shipment movement & status. Operate exception management with little to no disruption. Acceleration Supply Chain Diagnostic (SCD) US$120/ container Optimize your supply chain. Identify and implement concrete operational enhancements Exception Alert (temperature/humidity, acceleration out of range; longer than expected idle time) Set KPIs to drive efficiencies and costs reduction. Notifications (container has entered/ exited designated zone, door opening) Bookings available for dry boxes! 10

11 Project LIFT: Now in steady state Underlying platform proven robust for years Website interface upgraded to APL ebusiness, fully replacing the familiar HomePort New APL mobile app to be launched in 2 months Oct Dec 2018 Jan 2019 TODAY Parallel-run of legacy and new systems Running 100% on new & improved Improved user familiarity Bugs, processes fixed Systems enhanced Thanks to your support, and together with the commitment of APL employees, the most difficult period is now over EDI issues (customer cases): 3 open Booking confirmation in 2 hours: 94.9% Draft BL in 8 hours: 84.8% BL accuracy: 98.4% Issue resolution in 12 hours: 84.0% Invoice dispute resolved in 7 days: 80.6% Note: Figures are as of Week 7,

12 Sulfur Cap 2020: APL s new BAF offers visibility of fuel cost impact Revised formula makes the extent of fuel price changes on your total freight rate in different trades more transparent and predictable BAF Also known as Bunker Surcharge (BSC) and Fuel Adjustment Factor (FAF) in some Trades. Applicable for all contracts with > 3-month duration = FUEL PRICE (Per Ton) 3 months market average historical fuel price* prior to quarterly BAF quantum announcement. X TRADE COEFFICIENT = Fuel oil consumed (in ton) per round voyage per trade Total number of full TEUs carried Trade-specific quantum revised and published quarterly. Trade-relevant Low Sulphur Fuel surcharge for ECAs will be applied on top of BAF. *Referencing IFO 380 s at: 40% Rotterdam + 50% Singapore + 10% Houston When APL starts switching over from regular to low sulphur fuel in 2019, fuel reference and index will be updated and announced accordingly. 12

13 THANK YOU