mark worsley cil ts presentation (final) worsley
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Securing Shipping Services to New Zealand
‘Considering the Environmental Impact’
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What is the attraction for shipping operators to call at NZ?
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Pros
• High volume of refrigerated cargo (higher freight paying). I.e. Reefer = 25% of NZ’s total containerised exports.
• Fairly balanced trade ratio approximately 40:60 - (Laden Imports Vs Laden Exports).
• Relatively stable trade to New Zealand. Resilient during the GFC.
• Shipping capacity balanced.
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0 500 1,000 1,500 2,000 2,500 3,000
APM Maersk
MSC
CMA CGM
COSCON
Evergreen
Hapag-Lloyd
APL (NOL)
CSCL
Hanjin
MOL
OOCL
Hamburg Süd
NYK Line
Hyundai M.M
K Line
Yang Ming
Zim
PIL
UASC
CSAV
TEU '000
Top 20 Shipping Lines
Source: Alphaliner (Sept 2012)
10 of Top 20 call at NZ
Container Shipping Services
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Cons• Only 1.6 million TEU’s annually of freight
paying cargo. (2.3 million TEU counting empty containers).
• Isolated location:Steaming distance high.
• High cost area compared to other countries. (Ports, labour, and transport costs).
• Regional import/export imbalance.
• Seasonal cargo stream.
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TRG + Metro27%
NPE11%WLG
5%AKL25%
LYT12%
PCH9%
NSN5%
NPL2%
BLU2%
TMU3%
Export Full (TEU)
TRG + Metro15%
NPE3%
WLG6%
AKL52%
LYT17%
PCH2%
NSN2%
NPL1%
BLU0%
TMU1%
Import Full (TEU)
Import / Export Imbalance
Auckland (AKL)
New Plymouth (NPL)
Tauranga (TRG)
Napier (NPE)
Nelson (NSN)
Lyttelton (LYT)
Port Chalmers (PCH)
Wellington (WLG)
Bluff (BLU)
Timaru (TMU)
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0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TEU
s
NZ Container (Imp/Exp) - Seasonality (2010)
Imports Exports
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Tyranny of Distance
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• How far away is NZ from the market really?
Considering:
• New Zealand’s carbon footprint from shipping, compared with other countries/competitors.
• Food miles.
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Tyranny of Distance
1 Shanghai, China 31.742 Singapore, Singapore 29.943 Hong Kong, China 24.384 Shenzhen, China 22.575 Busan, South Korea 16.176 Ningbo-Zhoushan, China 14.727 Guangzhou Harbor, China 14.268 Qingdao, China 13.029 Jebel Ali, Dubai, United Arab Emirates 13.0110 Rotterdam, Netherlands 11.8811 Tianjin, China 11.5912 Kaohsiung, Taiwan, China 9.6413 Port Kelang, Malaysia 9.614 Hamburg, Germany 9.0415 Antwerp, Belgium 8.6616 Los Angeles, U.S.A. 7.9417 Keihin Ports, Japan* 7.6418 Tanjung Pelepas, Malaysia 7.519 Xiamen, China 6.4720 Dalian, China 6.4
Source: World Shipping Council
Throughput 2011 (TEUS)
Port, CountryRanking
World Container Port Rankings
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Singapore
Lyttelton = 5,113 Nm
Auckland = 4,857 Nm
Tauranga = 4,922 Nm
Av. 10 days at 20kts
Key hub ports (nodes) offer NZ access to the rest of the globe through the shipping line’s global
networks.
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Hong Kong
Lyttelton = 5,391 Nm
Auckland = 5,063 Nm
Tauranga = 5,127 Nm
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Shanghai
Lyttelton = 5,525 Nm
Auckland = 5,197 Nm
Tauranga = 5,261Nm
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Pusan
Lyttelton = 5,432 Nm
Auckland = 5,091 Nm
Tauranga = 5,156 Nm
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Lyttelton = 5,988 Nm
Auckland = 5,659 Nm
Tauranga = 5,634 Nm
Los Angeles
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Lyttelton = 6,631 Nm
Auckland = 6,603 Nm
Tauranga = 6,501 Nm
Manzanillo, PA
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How does NZ compare with Australia?
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To/From Hong Kong
Melbourne = 5,036 Nm
Brisbane = 6,656Nm
Auckland = 5,659 Nm
To/From Los Angeles
Auckland = 5,063 Nm
Diff. Only 27Nm
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1. Tauranga/Singapore = 4,922Nm (Via Torres Strait)
2. Tauranga/Shanghai = 5,261Nm
1. Rotterdam/Singapore = 8,265Nm2. Rotterdam/Shanghai = 10,409Nm
Rotterdam
Singapore
Tauranga
Shanghai
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Destinations
Source: Statistics New Zealand
0
2,000
4,000
6,000
8,000
10,000
12,000
NZ$
mill
ions
Top 20 - Export Destinations
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Is NZ well served by the shipping lines?
‘Connectivity’
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NZ’s Connectivity - Example• MOL’s services to Singapore. An important node or
network hub port .
• Each service may be 8 or more vessels.
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Other Hubs
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2nd, 3rd and 4th tier nodes
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MOL’s total Network. Just one of many shipping networks.
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Slow Steaming
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TYO UKB PUS SHA YTN HKG
TRG NPE AKLLYT BNE
Round Trip 13,478 Nm
• 6 x 3500 TEU Vessels• Weekly Service• Round Trip 42 days• Average Speed = 18.3 knots
Economical Speed
Fuel Consumption 1,699 Tonnes/voy
CO2 = 5,389 Kgs/voy SOx = 157 Kgs/voy
11 Port Rotation
431 Nm 349 Nm 447 Nm 766 Nm 20 Nm
4028 Nm
1289 Nm675 Nm335 Nm288 Nm
485
0 N
m
Many NZ services call at Australian ports. This helps make the service
viable.
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TYO UKB PUS SHA YTN HKG
TRG NPE AKLLYT BNE
431 Nm 447 Nm349 Nm
4028 Nm
766 Nm 20 Nm
1289 Nm335 Nm288 Nm 675 Nm
485
0 N
m Round Trip 13,478 Nm
• 7 x 3500 TEU Vessels• Weekly Service• Average Speed = 16.2 knots• Round Trip 49 days Additional week
Slow Speed
Fuel Consumption 852 Tonnes/voy
CO2 = 2,703 Kgs/voy SOx = 79 Kgs/voy
Most of the fuel saving is achieved on long haul
legs.
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Vessels 6 7
Frequency (Annual) 52 52
No. of Calls Per Year Per Vessel 8.67 7.43
Complete Round Trip Voyage Nautical Miles 13,478 13,478
Round Trip Bunker Consumption Tonnes 1,699 895
Total Annual Steaming All Vessels Nautical Miles 700,856 700,856
Annual Bunker Consumption Nautical Miles 88,348 46,540
Bunk Costs (US$700) / Tonne Tonnes $700 $700
Total Annual Bunker Cost (US$) Millions $ 61.8 $ 32.6
Vessel Hire - (US$) / vessel Annual $ 6.8 $ 6.8
CO2 Emissions (Kgs) Annual 280,063 147,532
Nominal /Actual Conversion (1.36) 1.36 1.36Annual Cargo Volumes TEUs 133,824 133,824
ECO Speed 6 x Vessels
SLOW Speed 7 x Vessels
(Av. Speed 18.3) (Av. Speed 16.2)
Slow Steaming Table
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Fuel Costs
0
100
200
300
400
500
600
700
800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Av. Bunker Prices (US$)
2009 2010 2011 2012
Source: Drewry Shipping Insight
MOL’s Annual Fuel Consumption
Bunker oil = 5.5 million tonnes Diesel oil = 75,000 tonnes
(All vessel types: Bulkers, Tankers, Containerships, Car Carriers etc)
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Slow Steaming - Issues• NZ importers & exporters will have to adjust.
• So called ‘premium services’ with quicker transit times may not exist in the future.
• Acceptance by importers/manufacturers of more inventory in transit.
• Exporters of perishable goods may have to look to new technologies to improve ‘shelf life’.
• Slow steaming may not be all bad from NZ’s viewpoint in terms of reducing our total transport emissions.
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Slow Steaming - Issues• Slow steaming is difficult to implement due to port
congestion on a global scale.
• Larger ships have added to congestion problems, as they are required to stay in port for longer periods.
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Slow Steaming - Issues• In NZ there is the opposite problem. Several carriers have
been introducing smaller ships – increasing congestion at some NZ ports.
• Although Tauranga is increasing it’s capacity now, Lyttelton is further way as earth quake repairs take priority.
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Refrigerated (Reefer) Cargo
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Refrigerated Cargo• Few reefer imports to NZ. 90% of containers are
imported MT.
• Most exporters prefer 20’ reefers because you cannot load double the weight of a 20’ into a 40’. – Max payload 20’ reefer = up to 27.5 tonnes– Max payload 40’ reefer = up to 30.5 tonnes
• Reefer cost US$20k / 40’ approx. Only $2k less for a 20’ reefer. Lines building mostly 40’s.
• Increased bunker consumption to carry reefer. (either by shaft or auxiliary generators)
A case study of NZ refrigerated imports and exports in 2007 by maritime transport, estimated that vessels were required to generate 280 GWh
electricity, which produced 190 kt of CO2 emissions.
Source: University of Otago Study (2011)
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Refrigerated Cargo• Exporters are demanding better cargo care. Cargo
that previously moved in DRY containers is now moving to reefers.
• Produce – onions, squash etc now requiring humidity control. Better outturn especially for long haul to Europe.
Door-off onions less common
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Refrigerated Cargo• Refrigerated container technology
is constantly improving.
a) More features – Customersb) More energy efficient – Shipping lines
• C/A (controlled atmosphere) containers becoming more common.
• More in transit care by vessel crew required. (Temp, vent, changes in transit etc)
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Transport Efficiency at a Local Level
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Local Network Efficiency• Crawford Street Hub – linking Waikato sites with the
ports of Auckland and Tauranga.
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Network Efficiency (Golden Triangle)
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Network Efficiency (Crawford St. Dairy Hub)
• According to Waikato Regional Council Report (2011) Crawford Street hub achievements are:
Av. haul distance reduced by 45% in truck-kilometres.
Reduction of 751,000 litres of diesel from 2005 to 2010.
This provided 1989 tonne reduction in CO2 emissions.
Waikato Road maintenance fell by 53%.
Reduction in truck movements by 9,000 p.a between Waikato sites.
According to Fonterra, total truck movements reduced by 65,000 p.a.
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Network Efficiency
Crawford St.
Auckland
TaurangaFull (EXPS) = 38,000 TEU
MT (Supply) = 38,000 TEU
M
T (S
uppl
y) =
7,0
00 T
EU
Full
(EXP
S) =
7,0
00 T
EU
MT Repo = 35,000 TEU
CO2, SOx, NOx...cough!
DRY containers only.
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Innovations
Improving Shipping Efficiency
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Innovations• Super slow-stroke engines, similar to those used in bulk ships,
are now being fitted in large container vessels.
• Engines in containerships are not designed for slow steaming. (Engine damage/decreased efficiency/increased emissions)
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Innovations
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Innovations
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End