Global trends in the logistics and shipping industry and its effects on the supply chain Jordi Torrent Strategy Director
Contents 1 Global logistics trends and its impact in the supply chain 2 What does Barcelona offer as an Euro- Mediterranean distribution center? 3 Port of Barcelona, main logistics hub in the Mediterranean
The impact of logistics costs on the price of products Logistics costs in relation to annual turnover Source: European Logistics Association Logistics costs include all costs of maritime transport (port passage, sea freight), land transport and inventory costs
Main features of world logistics today Global scale companies (Multinationals) New logistics mega-operators Change in typology and amount of Logistics costs (- inventory costs vs. + transport costs) Retailers and e-commerce warehousing increasing needs And tomorrow? Goods delivery in hours E-commerce Predictability 3D printing Automated transportation Environment Big data Geography of maritime transport Main maritime routes Main straits and canals Countries without sea connections Main navigable rivers
E-commerce
E-commerce
Trends on supply chain Smart Port Physical Internet Operative efficience Security Alternative fuels Drons Platooning Mobile systems Non-intrusive inspection л-containers IT systems Automation of terminals Sensorisation and telemetry Piggyback transport (ferroutage) Augmented reality Smart roads Synchromodality Encapsulation Internet of Things (IoT) Autonomous driving Construction methods Big data Control of emissions AGV 3D printing Robots Open data
Don t expect again two digit growth in TEU exchanges Substantial slow-down in TEU growth +8,1% 2000-2008 from +2,5% 2008-2016 ( % CARGR) Because of Western crisis, Europe-Asia trade lane slow-down, Changes in economy and trade Source: SEABURY Consulting Economy Trade patterns TEU growth Containerization GDP growth slowing down China becoming less export oriented, more service oriented Small scale of new emerging markets (Cambodja, Vietnam) China in control One road & one belt Some production and assembly are moving back towards endconsumer markets & less additional outsourcing to Asia- Pacific Different commodities driving growth (intermediate goods and raw materials) Structurally lower More intra trades (particularly intra Asian) and N-S trades Growing non-dominant legs Containable commodities have been containerized Reefer growth potential (eg. Daily train BCN- ZGZ)
Unstable market in the shipping business Freight & connectivity volatility Fuel price volatility Inland transport involvement Environmental considerations Bigger vessels Overcapacity in terminals and vessels (Asia-Europe trade line). Under construction additional worldwide port capacity for 450 M TEU Concentration (The Alliance, Ocean Alliance & 2M) Shipping lines under stress (Hanjin bankruptancy) Slow steaming Less bunker costs, less carbon footprint, longer shipping times & more ships on service
Today and future trade routes One Road & One Belt Artic Route Less distance Arctic Route Less distance Suez Route Similar distances The Suez canal will still be the main Europe MED Asia trade route for decades Bigger capacity in Panama & Suez Canal
Contents 1 Global logistics trends and its impact in the supply chain 2 What does Barcelona offer as an Euro- Mediterranean distribution center? 3 Port of Barcelona, main logistics hub in the Mediterranean
What does BARCELONA offer as an Euro- Mediterranean distribution center? BARCELONA 1,5% Spanish area and 10% Spanish population, account for: 15 % Spanish GDP 30% Spanish exports of goods ±20% Spanish industry Spanish exporting companies Spanish foreign trade Spanish tourists Global clusters Automotive, chemical, pharmacy, fashion. 6 biggest metropolitan area in Europe with more than 5 million inhabitants. (source: Eurostat) Headquarters of Global Companies SEAT, MANGO, Desigual, E-dreams, TOUS... MAZDA European Showroom in Barcelona 3rd city in Europe and 10th in the world as tourist destination 2 Business schools among the 10 best in Europe and in the top 25 worldwide Industrial specialization, sectorial clusters & powerful partnership opportunities
What does BARCELONA offer as an Euro- Mediterranean distribution center? a Biggest industrial & consumption in the MED & Southern Europe b Logistics specialization c Distribution capacity to Europe/MED/Africa d An integrated logistics hub with port, airport and logistics facilities
a European market Catching Central European traffic: Potential maritime market to gain in South, Central & North Europe Foreign maritime trade. FULL TEUs (Thousand) Peninsular export potential Total value of exports July 2015 - July 2016 TOTAL SPAIN: 128.000 M 425 500 365 489 507 600 4.500 28.000 M 9.500 M 18.000 M 50.800 M 450 2.150 9.000 M 300 5.500 M VALUE OF EXPORTS (MILLIONS ) Source. Elaborated by APB based on Customs statistics. Total full TEUS 2015 Spain: 3.700.000 Source: Puertos del Estado Source. Tax Agency and El País. 24/09/2016
Worldwide Regional National Leading international brands have distribution hubs in Barcelona IKEA Ikea located its Southern European logistics centre in Valls (Tarragona) with an investment of 46 M. AMAZON (Under construction) Amazon is building a new logistics center of 63.000 m2 in El Prat de Llobregat (Barcelona). The center will be part of its European network and is scheduled to open in autumn 2017. INDITEX From its logistics center in Tordera (Barcelona) distributes some of its brands worldwide. Decathlon In ZAL Barcelona they have their logistics center for stock management & for sport materials delivery to their warehouses and shops in Spain. Schneider Electric Schneider Electric has built an integrated logistics centre in Sant Boi del Llobregat (greater area of Barcelona). SEAT Nissan Their factories are in Barcelona from where they distribute their cars by road, rail and sea, all over the world. HONDA Logistics Factory & logistics center in Santa Perpetua de la Mogoda (Barcelona) for distributing Spain & Portugal & Morocco LIDL Logistics platform for the Iberian Peninsula in Moncada i Reixac (Barcelona) MANGO MAZDA Car imports from Japan through the Port of Barcelona to be distributed to other Mediterranean countries. New logistics centre in Barcelona with 150.000 m2 of warehouses handling 80% of the company s internationals flows. The proximity to the port was a decisive factor in choosing the location of our new logistics park.
c Reduced & competitive logistics costs Stock costs Short maritime transit times and high frequency of ships reduce stock costs. Warehousing & labor costs Competitive warehousing cost and labour costs for preparing orders (picking). Transportation & distribution costs Competitive road costs Daily air freight services to all major European cities & direct connections to cities in America. Short Sea Shipping services with Italy and North Africa. Lower logistics costs allow an easy access to markets improving your products competitiveness
Contents 1 Global logistics trends and its impact in the supply chain 2 What does Barcelona offer as an Euro- Mediterranean distribution center? 3 Port of Barcelona, main logistics hub in the Mediterranean
The Port of Barcelona s mission To contribute to the competitiveness of the customers of the Port by providing efficient services responding to their needs for maritime transport, land transport and logistics services 1. Competitiveness of shippers, industries, logistics operators & shipping lines. 2. Attraction of new industries & distribution centers.
Port of Barcelona strategy European & Mediterranean logistics hub in order to serve our clients located in Spain, France, Italy, Portugal and North Africa Madrid Bordeaux Paris Lyon Basel Milano Location of the Port s customers Expansion of the Port and Logistics areas + Improved connectivity with hinterland and foreland + Efficiency in the provision of services Largest part completed Hinterland strategy Port services New investments: Hutchison & Carnival, Grimaldi, Salamanca group Direct services with Far East with excellent transit time 3rd most productive port in Europe JOC's Port Productivity Report 2014
Port of Barcelona strategy Expansion Connectivity Efficiency Digitalization Sustainability Innovation Price Reliability Transparency Resilience Speed Productivity Agility
Example of a competitive logistics chain through the Port of Barcelona Wednesday 08:00 AM Container ship arrives at the Port of Barcelona. Containers are unloaded and transferred to the train. Thursday 06:00 AM Cargo train leaves the port destination Madrid Thursday 06:00 PM Cargo train arrives to Azuqueca intermodal terminal (Guadalajara, Madrid) Thursday 08:00 PM Trucks pick up containers and transport them from the terminal to the nearby distribution centre Friday 10:00 AM From the distribution center the pieces of clothing are shipped throughout the world
Port Links Build on-line your container transport chain through the Port of Barcelona With all updated information about maritime and land transport services Select Type of container 20, 40 or 45 Hinterland location Bergerac (France) Foreland port Yantian (China) Import or export? Import Inland mode: truck or rail Rail Rail service TP Nova Barcelona-Bordeaux 121 km road haulage Bergerac-Bourdeaux terminal Maritime service JADE/AE-11
Port Links Results Aggregated results Path info CO2 emissions and other pollutants Externalities ( ) + Information about port passage through Barcelona: transit time, Efficiency Network, taxes and tariffs + Possibility of enter your transport costs Free access on line http://www.portdebarcelona.cat/port-links