The role of maritime connectivity and logistics services for the seafood value chain.

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The role of maritime connectivity and logistics services for the seafood value chain Jan.Hoffmann@UNCTAD.org

Maritime Transport Trends Fish and Ships Nets and Networks

Maritime Transport Trends Fish and Ships Nets and Networks

Old Scenario: Developing countries exported large volumes of raw materials and imported high value (low volume) manufactured goods

Today s Scenario: Developing countries participate in globalized production. They also import raw materials and also export manufactured goods

Globalized production of "maritime transport" 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" Korea and China 71% of GT (RMT 2018, forthcoming) 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" Greece, Japan, China: 39% of dwt (RMT 2018, forthcoming) 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" Panama, Marshall Islands, Liberia: 41% of dwt (RMT 2018, forthcoming) 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" Denmark and Switzerland ~30% (RMT 2018, forthcoming) 1. Building 2. Owning 3. Registration 4. Operation (container ships) 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" India, Bangladesh, China, Pakistan: 94% (RMT 2018, forthcoming) 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" Financial and other services: UK, Scandinavia 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" Philippines, Indonesia, 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

Globalized production of "maritime transport" Hong Kong, Netherlands, Singapore, UAE: ~ 30% 1. Building 2. Owning 3. Registration 4. Operation 5. Scrapping 6. Financing 7. Classification 8. Insurance services (P&I) 9. Seafarers 10. Container terminal operators

http://stats.unctad.org/maritime

Maritime Transport Trends Fish and Ships Nets and Networks

Logistics of fish Fishing Density of fishing vessels, 2016

Logistics of fish Fishing Transshipment Port High seas

Logistics of fish Fishing Transshipment Port High seas Shipping Reefer ships

Logistics of fish Fishing Transshipment Port High seas Shipping Container Reefer ships

The trend: Containerization of reefer cargo In 1980: One Third was containerized Today: Three Quarters are containerized

Source: Dynamar (2016) Refrigerated cargo flows, 2000-2015 conventional ships / containerised

Why tranship in a port? Option to containerize Option for more value added services Option for better controls by authorities (quotas, quality, )

Maritime Transport Trends Fish and Ships Nets and Networks

Fishing vessels Density of vessel movements, 2016

Container ships Density of vessel movements, 2016

Fishing vessels Density of vessel movements, 2016

Container ships Density of vessel movements, 2016

Fishing vessels Density of vessel movements, 2016

Container ships Density of vessel movements, 2016

(Bernhofen et al, 2013) Introducing containerization leads to more trade

(Arvis et al, 2013) Higher Liner Shipping Connectivity leads to lower trade costs

Sourse: UNCTAD Liner Shipping Connectivity Matrix

Today s container shipping Ever larger ships Extremely low freight rates Idle fleet

Why is this a problem?

Why is this a problem? 1) Total logistics costs may actually go up

Why is this a problem? 2) It s a game: Unless old ships are scrapped, the oversupply will remain, or rather, increase, as carriers build new and larger ships

Why is this a problem? 3) Potential oligopolies in small markets

Maritime Transport Trends Fish and Ships Nets and Networks

The role of maritime connectivity and logistics services for the seafood value chain Jan.Hoffmann@UNCTAD.org