Cool Logistics Asia. September 2017 RAUL SACA
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1 1 Cool Logistics Asia September 2017 RAUL SACA
2 2 Agenda Fruit trades, Volumes and trends. Reefer Container Perishable Shipping. Trends and Developments affecting Fruit trades. Digitization of the industry.
3 Projected 2017 Reefer volumes by sea. Million Tons SF FFE Bananas ,667 Citrus ,556 Decidious ,778 Exotics ,222 Fish/Seafood ,400 Meat/Poultry ,046,400 Dairy ,800 Other ,216, ,206,322 FFE: 40 Reefer Container Equivalent SF : Tons per 40 Reefer Container
4 World Banana s Exports Volume Region Millions of Kgs boxes Volume (Millions of Kgs boxes) Latin America Asia Africa EU Exporting Regions Latin America % Asia % Africa % EU % TOTAL: %
5 Philippines Bananas 2017 Estimated million tons Japan 40.77% Middle East 30.94% S.Korea 16.43% China 6.48% Hong Kong 3.16% Singapore 0.90% New Zealand 0.70% Malaysia 0.55% Mongolia 0.07% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Japan Middle East S.Korea China Hong Kong Singapore New Zealand Malaysia Mongolia
6 LAM Banana Trade to Asia Ecuador is the main supplier. Main destinations are Japan, Kore and China estimated volume of bananas exported from Ecuador to Asia is 217,000 tons
7 Top 10 Citrus Exporting Countries / Destinations Million Tons DesFnaFon Origin W.EUR USA E.EUR FE LAM ME Others Spain South Africa Turkey China USA Mexico Egypt Morocco Greece ArgenFna
8 Top 10 Decidious Exporting Countries / Destinations Million Tons Destination Origin W.EUR USA E.EUR FE LAM ME Others Italy USA Chile China South Africa Poland Netherlands France Lithuania Turkey
9 Estimated Modal Split by Commodity. Containers Conventional Bananas 55% 45% Citrus 60% 40% Decidious 80% 20% Exotics 65% 35% Fish/Seafood 70% 30% Meat/Poultry 84% 16% Dairy 95% 5% Other 95% 5% Total: 78% 22%
10 Reefer Container Fleet by Carrier ESTIMATED SHARE OF REEFER CAPACITY2016 OPERATOR REEFER TEU CAPACITY Maersk 555'384 MSC 474'093 CMA CGM 372'845 Hapag-Lloyd (incl. UASC) 285'050 Cosco 243'674 Hamburg Süd 199'614 Evergreen 168'404 OOCL 99'964 Yang Ming 96'658 MOL 91'987 APL 89'335 NYK 89'054 K Line 68'802 PIL 66'287 HMM 63'708 ZIM 60'224 MCC Transport 50'544 Wan Hai 43'718 TOTAL 3'119'345
11 New Trends and Developments: Bigger vessels entering main fruit trades. Smaller vessels calling direct ports vs bigger vessels with transshipments. Bigger vessels usually tend to have longer transit times. Economies of scale. Expansion of Panama Canal. Cascade of large vessels down to smaller trades. Shippers will have last word. Reefer container fleet expansion and renewal. Shortage of equipment in the last 12 months. Looking ahead in the industry seems there is not enough newbuilds to cover demand. Need to discard older units. Digitazion of the industry. RCM Automated Cold Treatment / RCM Monitoring.
12 Digitazation of the Industry Remote Container Management Tranparency Container performance GPS Locator Automated Cold Treatment Constant monitoring Instant corrections when needed Success guaranteed
13
14 14 The Problem Lack of Supply Chain Transparency No data Reduced ability to make good decisions about your cargo
15 15 The Maersk Solution: Remote Container Management (RCM) Basic Version (No Additional Charge) Shipment Overview Status of all reefer containers Ability to export overview to excel Sorting and search functions for ease of use Premium Version (Paid) Journey Assessment for each container Full details on the status of each parameter All information in Basic version Temperature Graph View temperature trends for supply and return air. Ability to see full journey or data for specific dates Graphs for special characters where applicable (O2, CO2, Humidity) Datalog Download The ability to download a complete history of all data points for each container. Hourly readings and more data points (probes, etc) Access is subscription based and cost is figured by customers annual volume. Map GPS Location of each container Full zoom capabilities, ability to see actual street location on land. notification Customers can sign up to receive a daily compiling any new notification for the day.
16 The Technology behind RCM 16
17 17 The Parameters that Matter Pull down Temperature Off power
18 18 What does this mean for your cargo? Pull Down A lettuce shipper noticed wilting at destination. By using RCM, customer could see from the pull down that the vendors at origin were hot stuffing the lettuce. This was against the agreed process. The customer was able to remedy this and improve the quality of cargo at destination Temperature The compressor on a container filled with fruit failed in transit. The customer and Maersk worked together to trans load cargo before the cargo was affected. Before RCM, this would have been discovered at destination, at which point the cargo would be lost. Off Power A customer noted damaged fruit at destination and had already been investigating their loading practices. We could see by looking at RCM that the containers were off power for extended periods after being out gated from the port. We concluded that delivery delays coupled with a lack of genset use led to the damage.
19 19 Security Who has access? Contractual Party ONLY We will only be providing RCM data to the contractual customer of record as this is the customer that has entered a legal agreement with Maersk Line. We have added features to the platform which will allow the contractual customer to share data with anyone they choose via . The shipment overview is exportable to Excel. The Datalog (premium only) is exportable to PDF.
20 Automated Cold Treatment Maersk Line now has a dedicated reefer team in place to manage Cold Treatment shipments. They receive live data from our Remote Container Management (RCM) - having this visibility, enables swift corrective measures to be taken if/when required in order to pass the protocol. In the event of Cold Treatment failure, Maersk Line will compensate the difference in value of the goods between the value at the original destination and the value at the new destination chosen by the customer.
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