Containerized Carriers & Specialized Carriers: Competition On The High Seas? by Yntze Buitenwerf, CEO Seatrade Group of Companies March 3, 2015
Disclaimer The information contained herein has been prepared by the Seatrade group of companies from sources believed to be reliable but is not guaranteed by Seatrade, its affiliated companies nor its employees or directors and is not a complete summary or statement of all available data, nor is it considered an offer to buy or sell any securities. Opinions expressed are subject to change without notice and do not take into account the particular objectives, financial situation or needs of individual investors or financial institutions. Employees and directors of Seatrade and Seatrade and its affiliated companies may, at times, release written or oral commentary or analysis that differ from the opinions expressed here within. Past performance should not and cannot be viewed as an indicator of future performance.
Evolution of the reefer industry THE FIRST REEFER VESSEL
Evolution of the reefer industry THE FIRST REEFER VESSEL BREAKBULK REEFERS
Evolution of the reefer industry CONVENTIONAL REEFERS THE FIRST REEFER VESSEL BREAKBULK REEFERS
Evolution of the reefer industry SPECIALISED REEFERS THE FIRST REEFER VESSEL BREAKBULK REEFERS CONVENTIONAL REEFERS
But times have changed...
But times have changed... Quality was exchanged for price
Perishable reefer seaborne cargo flows 2000-2013 (million tonnes) Bananas Citrus Deciduous Exotics Fish/seafood Meat/poultry Dairy Others CAGR 2000-2013: abt. 4% 100 80 60 62.7 64.9 67.1 70.8 73.4 77.0 80.1 84.5 87.1 87.2 89.5 93.6 95.0 98.1 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Sextant Consultancy Ltd
Perishable reefer cargo - modal split 2000-2013 (million tonnes) Reefer container specialised 100 80 27.1 60 40 30.3 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Sextant Consultancy Ltd
Perishable reefer cargo - modal split 2000-2013 (million tonnes) Reefer container specialised 100 80 27.1 60 40 30.3 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Industry growth outpaced newbuilding orders specialised reefers Source: Sextant Consultancy Ltd
Perishable reefer cargo - modal split 2000-2013 (million tonnes) Reefer container specialised 100 80 27.1 60 40 30.3 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Sextant Consultancy Ltd Industry growth outpaced newbuilding orders specialised reefers Diversification
Perishable reefer cargo - modal split 2000-2013 (million tonnes) Reefer container specialised 100 80 27.1 60 40 30.3 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Sextant Consultancy Ltd Industry growth outpaced newbuilding orders specialised reefers Diversification Increased demand for shipment of smaller parcels
Perishable reefer cargo - modal split 2000-2013 (million tonnes) Reefer container specialised 100 80 27.1 60 40 30.3 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Sextant Consultancy Ltd Industry growth outpaced newbuilding orders specialised reefers Diversification Increased demand for shipment of smaller parcels Increased newbuilding prices specialised reefer vessels
Specialised reefers >100,000 cbft: development Additions in cbft Scrapped/Lost in cbft Total Capacity! 30,000,000! 400,000,000 Recycled/New Buildings * 1.000 Cbft! 22,500,000! 15,000,000! 7,500,000! 350,000,000! 300,000,000! 250,000,000 Total Capacity * 1 M Cbft! - 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014! 200,000,000
Specialised reefers >100,000 cbft: development Additions in cbft Scrapped/Lost in cbft Total Capacity! 30,000,000! 400,000,000 Recycled/New Buildings * 1.000 Cbft! 22,500,000! 15,000,000! 7,500,000! 350,000,000! 300,000,000! 250,000,000 Total Capacity * 1 M Cbft IN NUMBERS 40% reduction in number of! - specialised reefer vessels, but only a 12% reduction in cargo carrying capacity 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014! 200,000,000
Specialised reefers >100,000 cbft: development Additions in cbft Scrapped/Lost in cbft Total Capacity! 30,000,000! 400,000,000 Recycled/New Buildings * 1.000 Cbft! 22,500,000! 15,000,000! 7,500,000! 350,000,000! 300,000,000! 250,000,000 Total Capacity * 1 M Cbft! - 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014! 200,000,000 IN NUMBERS 40% reduction in number of specialised reefer vessels, but only a 12% reduction in cargo carrying capacity
Consolidation in the industry CONTAINER SHIPS SPECIALISED REEFERS Mergers, Takeovers and Alliances: 2M (Maersk and MSC) CKTHE (Evergreen, COSCO, Hanjin, K Line,Yang Ming) G6 (APL, Hapag Lloyd, OOCL, NYK, MOL, HMM) Ocean3 (CMA CGM, UASC, China Shipping) From 22 operators in 2000 to 6 operators in 2014: Large segment! Small segment! - Seatrade Group! - Lavinia - Star Reefers! - GreenSea ** - Baltic Reefers! - Cool Carriers *! ** part of Seatrade Group - FCC Fresh Carrier Company - Maestro Reefers * owned by Baltic Reefers
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale)
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost)
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost) Increase load factors
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost) Increase load factors Further consolidation
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost) Increase load factors Further consolidation Fast
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost) Increase load factors Further consolidation Fast Direct
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost) Increase load factors Further consolidation Fast Direct Dedicated
Outlook in the industry CONTAINER LINES SPECIALISED REEFER OPERATORS Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost) Increase load factors Further consolidation Fast Direct Dedicated
Outlook in the industry CONTAINER LINES Focus on larger vessels (economies of scale) Slow Steaming (overcapacity and cost) Increase load factors Further consolidation SPECIALISED REEFER OPERATORS Fast Direct Dedicated
Fast, Direct and Dedicated: FDD FAST DIRECT DEDICATED Operating specialised vessels with high speed capability that travel directly and on schedule from load to discharge port From load to discharge port without transhipment Loading and discharge at dedicated terminals closest to the cargo origin/consumer Knowhow and experience in perishable logistics Dedication to cargo and closeness to our clients Reduce risk and cargo damage
Fast, Direct and Dedicated: FDD FAST DIRECT DEDICATED Operating specialised vessels with high speed capability that travel directly and on schedule from load to discharge port From load to discharge port without transhipment Loading and discharge at dedicated terminals closest to the cargo origin/consumer Knowhow and experience in perishable logistics Dedication to cargo and closeness to our clients Reduce risk and cargo damage Fast Direct and Dedicated (FDD) transportation of perishable goods is what specialised reefers excel at
Fast, Direct and Dedicated: FDD FAST DIRECT DEDICATED Operating specialised vessels with high speed capability that travel directly and on schedule from load to discharge port From load to discharge port without transhipment Loading and discharge at dedicated terminals closest to the cargo origin/consumer Knowhow and experience in perishable logistics Dedication to cargo and closeness to our clients Reduce risk and cargo damage Fast Direct and Dedicated (FDD) transportation of perishable goods is what specialised reefers excel at Cargo is delivered in the best possible condition to the satisfaction of the customer
Fast, Direct and Dedicated: FDD FAST DIRECT DEDICATED Operating specialised vessels with high speed capability that travel directly and on schedule from load to discharge port From load to discharge port without transhipment Loading and discharge at dedicated terminals closest to the cargo origin/consumer Knowhow and experience in perishable logistics Dedication to cargo and closeness to our clients Reduce risk and cargo damage Fast Direct and Dedicated (FDD) transportation of perishable goods is what specialised reefers excel at Cargo is delivered in the best possible condition to the satisfaction of the customer Shorter transit times prolong shelf-life for the retailer giving longer sales time and reducing wastage of fruit
Fast, Direct and Dedicated: FDD FAST DIRECT DEDICATED Operating specialised vessels with high speed capability that travel directly and on schedule from load to discharge port From load to discharge port without transhipment Loading and discharge at dedicated terminals closest to the cargo origin/consumer Knowhow and experience in perishable logistics Dedication to cargo and closeness to our clients Reduce risk and cargo damage Fast Direct and Dedicated (FDD) transportation of perishable goods is what specialised reefers excel at Cargo is delivered in the best possible condition to the satisfaction of the customer Shorter transit times prolong shelf-life for the retailer giving longer sales time and reducing wastage of fruit Minimise wastage and maximise social responsibility: smaller carbon footprint, less food miles and reduced loss lead to a more responsible exploitation of crops and thus better sustainability.
Seatrade s ongoing commitment to the industry 2020 fleet renewal
Seatrade s ongoing commitment to the industry 2020 fleet renewal 20 FDD reefer container vessels
Seatrade s ongoing commitment to the industry 2020 fleet renewal 20 FDD reefer container vessels first (4) deliveries in 2016 WATER COOLING AND VENTILATION
FDD specialised reefer (container) services here to serve you, now and in the future
FDD specialised reefer (container) services here to serve you, now and in the future Thank you for your attention!