1 3 rd polar shipping summit may 30 th & 31 st 2012, london, uk
TRANSCRIPT
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3rd Polar Shipping Summit
May 30th & 31st 2012, London, UK
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Background Erik Rabjerg Nielsen
Education:
> Joined A.P. Moller – Maersk in 1993
> Master Mariner educated
> Sailed on primarily container vessels but also briefly on gas, supply & tank vessels
> MAESTRO management graduate
> B.Sc. Copenhagen Business School, Business Management.
Positions:
> Technical Organisation - Vessel administration
> Technical organisation - Nautical department
> Group Procurement Coordination - Initial strategic sourcing (Lube oil, Paint, Steel & Main engines)
> Europe Line Management – Cargo stowage coordinator
> Vessel Management – Centre Operations & Deployment
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Agenda
Brief overview of A.P. Moller – Maersk and Maersk Line
Commercial attractiveness of NSR
Comparison of routes
Conclusion
Q&A
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Heritage of more than 100 years
1994: Maersk Oil starts oil
production in Qatar
1928: First tanker added to the fleet
1977: Mercantile (now: Damco)
established
1904: Company established with
one freighter
1964: Dansk Supermarked
established
2001: APM Terminals
established
1975: First container vessel
added to the fleet
1972: Maersk Contractors (now:
Maersk Drilling) established
1959: Lindø Shipyard opened
1967: Maersk Supply Service
established
1972: Maersk Oil produces first oil in
the North Sea
2008: New global oil strategy
launched
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Group OverviewContainer activities Other businessesRetail activityTankers, offshore and other shipping activitiesOil & Gas activitiesTerminal activities
> 2011 revenue: USD 60.2 billion
> Some 70,000 shareholders
> Controlling stake held by A.P. Møller and Chastine Mc-Kinney Møller Foundation
1: Maersk Line
2: Maersk Oil
3: Maersk Drilling
4: APM Terminals
5: Maersk Tankers
6: Maersk Supply Service
7: Maersk FPSOs
8: Svitzer
9: Damco
10: Maersk Container Industry
11: Dansk Supermarked
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1,400 ships 60 container terminals
115 platforms and rigs 900 offices
1,100 retail activity + 3 million containers
Fleet and other assets
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World’s no. 1 container business
World’s largest container line
2011 revenue USD 25.1 billion
Fleet of 645 vessels 2.5 million TEU
Operates in 125 countries
+3 million containers
42 new vessels 2012-15 0.5 million TEU
Investing in innovative, record-setting vessels: Triple-E
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Maersk Line focus areas
Profitable cargo
Beat competitors cost levels and never accept unjustified cost
Organisation to deliver a superior customer experience
Be our customers’ first choice> Severe competition,
industry is struggling to make sustainable profit.
> Customer satisfaction
> High Competitiveness
> On-time delivery
> Environmental performance
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Agenda
Brief overview of A.P. Moller – Maersk and Maersk Line
Commercial attractiveness of NSR
Comparison of routes
Conclusion
Q&A
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Commercial attractiveness of NSR
> Can NSR present an opportunity for shorter transit time?
> Can NSR present an opportunity for offering a cheaper product?
> Can NSR present an opportunity for higher reliability?
> The joker!
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Agenda
Brief overview of A.P. Moller – Maersk and Maersk Line
Commercial attractiveness of NSR
Comparison of routes
Conclusion
Q&A
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Comparison of routes – Transit time
• Columbine Maersk
• Vessel size 8500 TEU
• 11.300 nautical miles
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Comparison of routes – Transit time
• 7.600 nautical miles?
• Average speed 13kn?
• 4 month transit window
• 11.300 nautical miles
• Average speed 13kn
• Full year transit window
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> Transit time in the traditional network 36 days
> Possible transit time YOK-ROT via NSR:
> Distance 7.600nm
> Average speed 13kn
> Days needed, including inspection etc. 26
> The NSR presents an opportunity for a shorter transit time during the “Ice free” period.
Comparison of routes – Transit time
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> Size limitation on NSR
> Ice damage (lack of repair facilities)
> Emergency - evacuation options
> Modifying machinery (especially if non-ice classed vessel)
> Ice and extra safety training of crew
> Ice-breaker assistance
> Upgrade of navigation-, communication- and safety equipment
> Actual cost of transiting
Comparison of routes – Costs
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Comparison of routes – Costs
Rate ? ?
Lifting capacity 2.000 6.500
Days 26 36
Distance 7.600nm 11.300nm
Vessel costs 575.000 1.250.000
Bunker costs 650.000 2.000.000
Port costs 1.250.000 250.000
Total Costs 2.475.000 3.500.000
* The above figures are only indicative as an example, and does not reflect a true picture of the full complexity of container transport
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Comparison of routes – Costs
Rate ? ?
Lifting capacity 2.000 6.500
Days 26 36
Distance 7.600nm 11.300nm
Total Costs 2.475.000 3.500.000
* The above figures are only indicative as an example, and does not reflect a true picture of the full complexity of container transport
Slot costs USD/TEU 1.238 538
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Present network
Repair flexibility
Piracy
Weather
Contingency
Casualty coverage
Port flexibility
Complexity
NSR
Comparison of routes – Reliability
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Present network> Reliability is a key driver
> On-time delivery +99%
NSR> Reliability factors are more
insecure and more dominant
> 99% reliability will be very expensive
Comparison of routes – Reliability
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Comparison of routes – The Joker
> Freight rates!
> Is a faster and more unreliable product, of higher value to customers, then a reliable slower product?
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Agenda
Brief overview of A.P. Moller – Maersk and Maersk Line
Commercial attractiveness of NSR
Comparison of routes
Conclusion
Q&A
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Conclusion
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> Shorter transit time?
> A cheaper product?> Vessel size / Ice breaker costs
> Higher reliability?
> The joker!
Conclusion
YES
???
NO
NO
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Agenda
Brief overview of A.P. Moller – Maersk and Maersk Line
Commercial attractiveness of NSR
Comparison of routes
Conclusion
Q&A
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Questions & Answers