1 / 24

Logistics Session Part 2 - Transportation

Logistics Session Part 2 - Transportation. Henry L. (Rick) Wen Jr. VP Business Development & Public Affairs OOCL (USA) Inc. 2006 AAFA International Sourcing, Customs & Logistics Integration Conference Savannah, March 22-24, 2006. Agenda. Introduction to OOCL

ketan
Télécharger la présentation

Logistics Session Part 2 - Transportation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Logistics Session Part 2 - Transportation Henry L. (Rick) Wen Jr. VP Business Development & Public Affairs OOCL (USA) Inc. 2006 AAFA International Sourcing, Customs & Logistics Integration Conference Savannah, March 22-24, 2006

  2. Agenda • Introduction to OOCL • Record trade growth from Asia and China’s impact upon US transportation infrastructure • California Crisis-Shipping Landscape-How cross industry collaboration improved results • Affect on cost and infrastructure investment • Future outlook and trends

  3. Introducing OOCL • Hong Kong’s largest container shipping company • Grand Alliance member • Publicly traded and privately held • 4M shipments & $4.7B in annual revenue • China expert • ISO certified and process driven • Technology Innovation – IRIS 2 & CargoSmart • Highest industry return on revenue in 2004 • Green Flag Award environmental recognition

  4. INTRA-ASIA 33 million TEU (including Australia, Indian Subcontinent and Middle East) 12 % Growth World Container Flow 2005 TRANS-ATLANTIC 5.4 million TEU 5.3% Growth ASIA-EUROPE 12.2 million TEU 10.9% Growth TRANS-PACIFIC 18 million TEU 10.4 % Growth OTHER TRADES North-South 19.2 million TEU Intra-Regional 16.1 million TEU Source: Drewry Consultants, 2005

  5. China’s Share of U.S. Import Volume 1995 2000 2005 Source: PIERS Trade Horizons

  6. China’s Share of Trans-Pacific Imports 1995 2000 2005 Source: PIERS Trade Horizons

  7. China’s apparel & footwear trend China market share China-US growth p.a. Source: US Census Bureau

  8. Major Port Throughput Source: Drewry Shipping Consultants Ltd(figures include empties and transshipment)

  9. Volume Growth (m Teu) Source: Ports (Dec est.)

  10. Projected Growth (POLA/POLB) (in Million TEUs) Source: Marine Exchange of Southern California

  11. 2004 California Crisis • West Coast problem was compounded by many issues: • Trade growth and inadequate customer forecasting • Shortage of longshore labor and lower productivity of new hires • Port congestion • State and Federal regulations • Intermodal equipment (railcar, locomotive) and crew shortages • Terminal crane capacity • Rail volume capacity (ramp, on dock rail limits, trackage pinch point at Cajon Pass) • Strained truck capacity and limited trailer availability • Chassis shortage • Larger Mega Ships • Rising costs of doing business

  12. 2004 Labor Shortage No. of In-Service Cranes Source: www.pmanet.org

  13. Shipping Landscape • New mega ships increase trade capacity • Global trade growth outpaces United States infrastructure, including port, railroad, trucking, terminal and warehouse. • Congestion & delays reduce effective vessel capacity • Panama Canal approaches 100% capacity • Supply chains become pro-longed and segmented West (intermodal) and East (all-water) • Cross-industry collaboration and synchronized activities improved shipment performance & efficiency after 2004 crisis Here’s how:

  14. 2006 Port Congestion: Beyond 2006 • US Ports Lag International Productivity: • Throughput (Teu) per gross acre: • East Coast /Gulf 4,100 • West Coast 4,600 • Major world ports 10,000 to 15,000

  15. Port Terminal Capacity Constraint Million TEU Source: SSA

  16. Port Terminal Capacity Constraint Source: SSA Million TEU

  17. Cross Industry Collaboration: Ocean Carrier and Terminal Action • More labor, high capacity cranes and terminal equipment (resources) • Convert from wheeled to grounded operations: increase terminal capacity (space) • Extend Terminal’s Hours of Service “Pier-Pass” appointment system to increase capacity (time) • Implemented on July 23, 2005 • Over 30% of daily cargo moves during off-peak • 1 Million container milestone December 2005

  18. Cross Industry Collaboration: Ocean Carrier and Terminal Action • Redeploy ships to East Coast and Pacific Northwest ports to balance port capacity: (asset utilization) • Reduce terminal free time from 5 to 4 days to accelerate goods movement (velocity) • Implement 1st receiving dates for exports to minimize terminal congestion (space) • Synchronize block stowage and promote on dock rail to improve intermodal rail performance and maximize terminal efficiency (congestion) • Develop off-dock Container Yards to relieve terminal congestion (overflow capacity)

  19. Cargo Interest • Order earlier and prepare to hold more inventory in your pipeline • Move information up your supply chain (at origin) and available at least 24 hours prior vessel loading • Align your delivery schedules with changes in the international delivery process • Focus more on time definite vs. time to market and avoid “double dipping” • Use “cost of goods sold” profit model (20 cents a kilo vs. 6 dollars a kilo?) to build your supply chain

  20. Value per kg of shipment Source: US Census Bureau

  21. Increased Cost of Liner Shipping • Bunker fuel and inland fuel • Additional labor • Terminal • Extended operation hours • Wheeled to ground operation (expensive yard machinery) • Terminal appointment system • Storage charges have increased • Equipment • Trade imbalance (import: export) increases empty repositioning • Cost of equipment is up as steel costs doubled • Carriers are building larger vessels but equipment supply lags behind • Rail • Trucking

  22. TSA Revenue Index Trending

  23. Future Outlook & Trends • Intermodal rail service improves • More “Hub and Spoke” shipments (inland distribution) • Less West Coast transloading • More East Coast distribution using trucks instead of rail • Integration of international with domestic transportation • International intermodal outpaces domestic growth • Railroads drive double stack intermodal • Smaller and more frequent shipments favor container vs. trailer • Cost and environmentally friendly for shipments >700 miles Domestic infrastructure changes to accommodate international • CPRR bans cross Canada intermodal trailers effective January 1st 2006 (others to follow) • TTX converting 48’ car wells to 40’ wells • New flatcar wells will be mostly 40’

  24. Future Outlook and Trends • Economy of Scale & Asset Utilization • More and larger container vessels • More and larger consortia of carriers • More mergers and Acquisitions • Don’t put all your eggs in one basket • Liner shipping logistics plays a more strategic role in supply chain including domestic applications • Technology drives standardized efficiency, shipment visibility and Home Land Security applications • Moving towards a global economy

More Related