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Circumnavigation HELM – PwC Economy of the Sea Barometer () In-depth

HELM

December 2016

Edition nº2 Circumnavigation 2 HELM – PwC Economy of the Sea Barometer (World) We've explored very little of the ocean. We really don't know what's out there. But people think we've figured it all out.

Philippe Cousteau. Jr.

Circumnavigation 3 HELM – PwC Economy of the Sea Barometer (World) This communication is of informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PwC will not accept any responsibility arising from reliance on information hereby transmitted. which is not intended to be a substitute for specific professional business advice.

Circumnavigation 4 HELM – PwC Economy of the Sea Barometer (World) Index

Introduction 7

Executive summary 11

HELM – PwC Economy of the Sea Barometer (World) 19

International context 25

Maritime transport. ports and logistics 29

Shipbuilding, maintenance and equipment 49

Offshore 65

Naval security power, piracy and maritime disasters 73 (oil spills)

Fishing and aquaculture 81

Entertainment, sports, tourism and culture 97

Economy of the sea map 117

List of Tables, Figures and Acronyms 119

Circumnavigation 5 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation: HELM – PwC Economy of the Sea Barometer (World) Edition nº2 - December 2016 is a PwC social responsibility and thought leadership initiative that includes three documents: - Circumnavigation: HELM – PwC Economy of the Sea Barometer (World) Summary - Circumnavigation: HELM – PwC Economy of the Sea Barometer (World) In-depth - Economy of the Sea Map

The economy of the sea is an integrated approach to sea activities with the aim to promote growth and development in a sustainable way.

Please see PwC social responsibility and thought leadership projects about the economy of the sea in http://www.pwc.pt/en/issues/economy-of-the-sea.html

Circumnavigation 6 HELM – PwC Economy of the Sea Barometer (World) Introduction

Circumnavigation 7 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 8 HELM – PwC Economy of the Sea Barometer (World) Introduction

The sea is a valuable global asset that needs to be preserved and valorised.

Only with greater knowledge and an integrated view of this extensive resource are we able to ensure development in line with the principles of environmental, economic and social sustainability of marine resources.

PwC’s social responsibility project, HELM – PwC Economy of the Sea Barometer (World), systematises, in a summarised form, quantitative information on various industries of the sea, enabling the identification of trends of ocean-related industries, and rankings, overlapped on a world map, to help identify the intensity of ocean use in every region of the world.

The results of this exercise are clear. In the period 2005 to 2015, in which there was a profound financial and economic crisis on a global scale, during which time Asia - and in particular the - took the lead in fisheries, aquaculture, cargo handling at ports and shipbuilding. The world's top 10 container ports are in Asia and seven of these are in China. In 2015, Chinese fisheries and aquaculture represented, respectively, 18.2% and 61.7% of total world output of these sectors. Only in the production of offshore energy, the ownership and operation of merchant ships, tourism (cruise) and sports does America and Europe remain ahead of Asia. Africa and South America are regions that will yet reveal important future economy of the sea opportunities. and , in particular, are references for the economy of the sea in Oceania and in the World. This period was also one of increased environmental stress (particularly oil spills) and sea piracy (more than 4,000 people were subjected to maritime piracy attacks, more than 3,500 were taken hostage and 28 were killed - , and are countries with the greatest incidence of attacks). As for the defence industry the of America, China and are the three main naval powers.

The five principal oceans: the Atlantic Ocean, the Indian Ocean, the Pacific Ocean, the Arctic Ocean and the Southern Ocean, together with the other seas of the world, are valuable assets that should be enjoyed by mankind sustainably. Several industries operate in or on this huge natural resource, producing wealth and generating jobs. In order to exploit all this wealth sustainably, it is essential to understand it better, becoming familiar with each of the industries, how they interact with each other, their evolution and how intensively they use the sea around the world.

The HELM – PwC Economy of the Sea Barometer (World) is a contribution of reference about the economy of the sea in the world. It may be also seen as a voyage around the world in which the key countries for each sea industry are identified, this is why this publication has been entitled “Circumnavigation”.

José Bernardo Stephanie Hyde Territory Senior Partner () Global Middle Market Leader

Miguel Marques Ricardo Frederico Correia Economy of the Sea Partner Economy of the Sea Senior Manager

Circumnavigation 9 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 10 HELM – PwC Economy of the Sea Barometer (World) Executive summary

Circumnavigation 11 HELM – PwC Economy of the Sea Barometer (World) Executive summary

The HELM – PwC Economy of the Sea Barometer (World) in-depth has two parts:

1. A summary of quantitative information on various subsectors that make up the economy of the sea in the world, including trend analysis and a number of rankings of countries by industry;

2. An economy of the sea map made by overlapping different rankings of countries by industry on a map of the world;

The economy of the sea is a significant part of the world economy and, as such, is affected by the general evolution of macroeconomics. Taking into account growth rates of the various countries, it may be said that recent years have not been easy. In particular, the year 2009 was a particularly negative year in which the growth rate of global gross national product was negative (-2.1%), and the major contributors to this poor result were the developed economies (their gross domestic product fell in the order of -3.7%). In 2009, the low growth rate of gross domestic product in developing countries (+ 2.6%) was not enough to offset the negative growth in developed countries. The high growth rates of GDP recorded in 2007 (4.0%) have not yet been restored; the growth rate in 2014 and projected to 2015 was a mere 2.5%.

Circumnavigation 12 HELM – PwC Economy of the Sea Barometer (World) Executive summary

Maritime transport, ports and logistics

Recent years have been years of slowdown in global economic growth, which have negatively impacted the growth rate of the volume of exports and imports. As most of the load volume is transported by sea, the maritime transport sector has been considerably affected.

Although oil and gas, as well as bulk, are the load types most transported by sea, containerized cargo has been growing.

Between 2006 and 2014 there was a change in the relative importance of maritime trade in developed economies compared to developing economies. In 2006, developed economies accounted for approximately 53% of the tonnage of cargo transported by sea, a figure which fell to 38% in 2014. However, the share of developing economies in 2006 was 46% and increased to 61 % in 2014. This was primarily because Europe dropped from 54% in 2006 to 39% in 2014, while Asia rose from a 37% in 2006 to 50% in 2014.

Between 1980 and 2014, bulk shipping and container shipping have gained weight compared to oil tankers and general load.

Greece, , China and have the greatest concentration of ship ownership.

Switzerland, , , China and Tawain are the countries where the headquarters of the leading transportation companies are primarily located.

Panama, , The Marshall Islands, China and are the countries with largest ship registers.

The world's ten largest container ports are Asian, and seven of these are Chinese.

The world’s five largest operators of ports have their headquarters in Unitied Arab Emirates or China.

Circumnavigation 13 HELM – PwC Economy of the Sea Barometer (World) Executive summary

Shipbuilding, maintenance and equipment

The order backlog in global shipyards grew between 2002 and 2008; thereafter, orders decreased until 2012. However, for the following three years (2012, 2013 and 2014), this trend has been reversed.

At the end of 2015, 39.6% of ship orders were for solid bulk transport ships, immediately followed by orders for tankers for the transport of crude oil (27.7%).

In 2015, China had the highest volume of orders for ships (36.4%), followed by (26.7%) and Japan (19%). In fourth place appears the 28+ (7.9%).

In 2015, Asia (China, South Korea and Japan), completed more than 80% of the production of ships in that year (35.4%, 31.2% and 18.1% respectively).

Ship production capacity drastically reduced in Europe 28 + Norway, but increased exponentially in China.

China, , and were the locations where there was the most dismantling of bulk volume ships.

Offshore energy

In 2004, after the Middle East and North America and, Europe was the third largest oil and producing region of the world.

By 2015, Europe had been relegated to 4th place; the Middle East continued to lead production, followed by South then North America.

In 2015, more than half of the world's proven gas reserves belonged to and the Russian Federation.

Saudi Arabia, Norway and were the three main producers of offshore oil & gas, in 2015.

Since late 2014, the price of a barrel of Brent oil has been below 100 USD; in mid 2016, the price was slightly above 40 USD. The oil price decline has put pressure on the profitability of offshore operations, which are more expensive than onshore operations.

Offshore wind power capacity in the world is led by four European countries (UK, Denmark and Germany), representing 79.6% of total installed capacity in the world. In fourth place, China represents 8.4% of capacity.

Circumnavigation 14 HELM – PwC Economy of the Sea Barometer (World) Executive summary

Naval security power, piracy and maritime disasters (oil spills)

In 2016, the country with the largest naval fleet (aircraft carriers, frigates, destroyers, corvettes and submarines) is the China with 175, closely followed by US with 162. Russia is the third with 161 large naval craft.

Somalia, Nigeria and Indonesia are countries with the greatest incidence of maritime piracy attacks in the period 2010-2015.

Between 2010 and 2015, about 4,000 people were subjected to maritime piracy attacks, more than 3,500 were taken hostage and 28 were killed.

Accidents involving oil spills have been occurring over time, all over the world.

Fishing and aquaculture

Between 2002 and 2014, as the world population has grown, there has been an increase in the consumption of fish and other food products per capita. In 2004, per capita consumption was 16.2 kg, rising to a per capita consumption of 20.1 kg in 2014. This increase in per capita consumption was met by increased production in aquaculture. In 2004, production in onshore and offshore aquaculture reached about 27,8 and 18,1 million tons, respectively, rising to 47,1 and 26,7 million tons in 2014. Fish catches at sea continue to represent the largest contribution to the supply of fish, but have not grown in recent years.

The top ten countries in terms of fishing, led by China with 18.2% of the catch, represent about 60% of the total of global fishing.

The Pacific Ocean is where most of the fishing takes place, accounting for about 58% of the total.

The fifteen species most fished represent about 1/3 of all fish caught.

In 2014, 91% of world aquaculture was in Asia, and was responsible for the significant growth of aquaculture globally.

Onshore aquaculture is the main contributor to the growth of aquaculture and China represents 61.7% of global aquaculture production.

From 1974 to 2013, there was increasing pressure on fish stocks, significantly increasing the number of species that are in danger of overfishing.

Africa and Latin America are the regions of the world with the lowest per capita consumption of fish and other sea products.

Circumnavigation 15 HELM – PwC Economy of the Sea Barometer (World) Executive summary

Entertainment, sports, tourism and culture

The revenue associated with cruise ships has been increasing.

North America and Europe are the most important markets for cruise ships.

The Caribbean still holds the largest market share in the business of cruise ships, closely followed by the Mediterranean and the rest of Europe.

The number of people participating in cruises has increased.

The largest cruise consumers are North Americans, immediately followed by the British and the Germans.

The USA, Australia, New Zealand, , France and the UK are countries of reference in terms of the recreational boating and marinas business.

In the last four Olympic Games, Europe was the continent with more medals in canoeing, with Germany as the country that led with 32 medals. In sailing, while European countries, led by the UK, continue well classified, winning 19 medals at the last three Olympic Games, Australia appears in second place in the ranking with 11 medals. In rowing, the leads with 24 medals, soon followed by Australia (15) and New Zealand and Germany (both 12).

In surfing, Australia and USA have led consistently in recent years.

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Circumnavigation 19 HELM – PwC Economy of the Sea Barometer (World) HELM – PwC Economy of the Sea Barometer (World)

More than 2/3 of the surface area of our planet is sea.

The five principal oceans: the Atlantic Ocean, the Indian Ocean, the Pacific Ocean, the Arctic Ocean and the Southern Ocean, and the other of seas of the world, are valuable assets that should be enjoyed by mankind sustainably.

Several industries operate in or on this huge natural resource, producing wealth and generating jobs.

In order to enhance all this wealth in a sustainable way, it is essential to understand it better, becoming familiar with each of the industries, and how they interact with each other, their evolution and how intensively they use the sea around the world.

The concept of Economy of the Sea is related to the valorisation of the ocean in environmental, social and economic terms, with the aim to achieve a holistic view of all human action on sea. It includes industries like maritime transport, ports and logistics, shipbuilding, ship maintenance and repair, offshore energy, security and defence, fisheries and aquaculture, entertainment, sport, tourism and leisure.

Learning more about the oceans, also means learning more about maritime industries, in particular, it is crucial to quantify their economic development in each region.

There has been some quantitative information by industry, but there are few studies that quantify the economic development of all the industries related with the sea.

With HELM – PwC Economy of the Sea Barometer (World), we intend to build a tool that allows us to clarify the current situation in respect of the sea as a resource in the world, as well as its development prospects in the future. The HELM is meant to be a monitoring tool that allows its users to draw useful information, easily and quickly.

The HELM is a long-term project, which will act as a compilation of data for monitoring, over time, the evolution of the economy of the sea in the world and simultaneously enable us to analyse trends and the choices that are made by the various economic agents.

Several efforts have been made by various entities in order to quantitatively evaluate the importance of the economy of the sea. Progress has been made; however, the weight of economic activities related to the sea in total world economy remains difficult to measure and evaluate. The indicators do not allow us to measure with complete accuracy or continuously, the actual impact of these activities in the global economy.

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The HELM – PwC Economy of the Sea Barometer (World) has two parts: 1. A summary of quantitative information on various subsectors that make up the economy of the sea in the world, including trend analysis and a number of rankings of countries by industry; 2. An economy of the sea map made by overlapping different rankings of countries by industry on a map of the world.

Sea industries considered

Relevant sub-sectors within the sea economy of the world considered in summary quantitative information: - Maritime transport, ports and logistics; - Shipbuilding, ship repair and maintenance; - Offshore energy; - Security and defence; - Fishing and aquaculture; - Entertainment, sport, tourism and leisure.

There is another set of sub-sectors, such as offshore mineral resources and blue biotechnology that, although reveal a huge potential, will still take some time to gain importance in the global economy.

Rankings

Taking into account the existing quantitative information and respective representation that the variable has on the industry analysis, the following variables were selected for the preparation of rankings considered in the Economy of the Sea Map: - Ownership of the world fleet (top countries) - Top container terminals - Shipbuilding completions (top countries) - Offshore oil & gas production (top countries) - Offshore wind capacity (top countries) - Aircraft Carriers + Frigates + Destroyers + Corvettes + Submarines (top countries) - Pirate attacks locations - Marine capture fisheries (top countries) - Aquaculture (top countries) - Cruises (top markets) - Olympic medals in sailing(top countries) - Commercial shipping trading track with the highest traffic

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Update of the quantitative information

As mentioned above, quantification and measurement of the economy of the sea remains difficult. However, as time goes by, new sources of information appear and new reliable indicators may be used. In this context, every year we do a careful review of all the variables that compose the quantitative summary information and update it with relevant information, which has since become available. Similarly, every year, reconfirm that the comparative data of information sources quantitative information summary remain stable.

In case of restatement, by the issuer, we proceed to the respective update summary quantitative information.

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Circumnavigation 25 HELM – PwC Economy of the Sea Barometer (World) International context

Exclusive Economic Zones

Countries with the largest exclusive economic zones have a bigger potential to have benefits from the oceans. Below is presented the ranking of the 25 countries with the largest exclusive economic zones.

Table 1: Top 25 Exclusive Economic Zones (in millions of square kilometers), 2016

EEZ (Millions of Km2) USA 12.2 Federated States of Micronesia 3.0 France 10.1 Denmark 2.6 Australia 9.1 Norway 2.4 Russia 7.6 Papua New 2.4 United Kingdom 6.8 India 2.3 Indonesia 6.0 Marshall Islands 2.0 5.7 1.8 New Zealand 4.1 Portugal 1.7 Japan 4.0 1.6 3.7 1.5 3.7 1.3 3.5 1.3 3.3

Source: Marineregions.org

Circumnavigation 26 HELM – PwC Economy of the Sea Barometer (World) International context

World Economic Growth

The economy of the sea is a significant part of the world economy and. as such, is affected by the general evolution of macroeconomics. Taking into account growth rates of the various countries, it may be said that recent years have not been easy. In particular, the year 2009 was a particularly negative year in which the growth rate of global gross national product was negative (-2.1%). and the major contributors to this poor result were the developed economies (their gross domestic product fell in the order of -3.7%). In 2009, the low growth rate of gross domestic product in developing countries (+ 2.6%) was not enough to offset the negative growth in developed countries. The high growth rates of GDP recorded in 2007 (4.0%) have not yet been restored; the growth rate in 2014 and projected to 2015 was a mere 2.5%.

Table 2: World GDP growth, 2006-2015 (Annual percentage change) Region/country 2007 2008 2009 2010 2011 2012 2013 2014 2015ª

World 4.0% 1.5% -2.1% 4.1% 2.8% 2.2% 2.4% 2.5% 2.5a% Developed countries 2.5% 0.1% -3.7% 2.6% 1.5% 1.1% 1.3% 1.6% 1.9% of which: Japan 2.2% -1.0% -5.5% 4.7% -0.5% 1.7% 1.6% -0.1% 0.9% United States 1.8% -0.3% -2.8% 2.5% 1.6% 2.3% 2.2% 2.4% 2.3% European Union (EU-28) 3.0% 0.5% -4.4% 2.1% 1.8% -0.5% 0.1% 1.3% 1.7% South-East Europe and CIS 8.7% 5.4% -6.6% 4.7% 4.6% 3.3% 2.0% 0.9% -2.6% South-East Europe b 6.2% 5.8% -1.8% 1.5% 1.7% -0.6% 2.4% 0.7% 1.5% CIS. incl. 8.9% 5.3% -6.8% 4.9% 4.7% 3.5% 2.0% 0.9% -2.8% of which: Russian Federation 8.5% 5.2% -7.8% 4.5% 4.3% 3.4% 1.3% 0.6% -3.5% Developing countries 8.0% 5.3% 2.6% 7.8% 5.8% 4.7% 4.8% 4.5% 4.1% Africa 6.1% 5.5% 3.0% 5.1% 0.9% 5.1% 3.8% 3.4% 3.2% Latin America and the Caribbean 5.6% 3.6% -1.6% 5.8% 4.7% 3.2% 2.8% 1.4% 0.8% Asia 9.2% 5.9% 4.1% 8.8% 6.9% 5.1% 5.6% 5.6% 5.2% of which: China 14.2% 9.6% 9.2% 10.4% 9.3% 7.7% 7.7% 7.4% 6.9% India 10.1% 6.2% 5.0% 11.0% 6.2% 4.4% 6.4% 7.1% 7.5% Oceania 4.1% 2.1% 1.0% 3.5% 4.4% 3.2% 2.8% 3.3% 5.3%

Note: Calculations for country aggregates are based on GDP at constant 2005 dollars. a) Forecasts. b) . . Montenegro. and the former Yugoslav Republic of Macedonia. Source: UNCTAD – Trade and Development Report 2015

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Circumnavigation 29 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

Recent years have seen a slowdown in global economic growth, which resulted in a fall in the growth rate of export volume and import volumes. As shown in the table below, the growth rate of export volume in the world in 2010 was 13.9%. falling to 2.3% in 2014. The same goes in the growth rate of the import volume in the world: in 2010, it was 13.8%; by 2014, it was 2.3%. This decline in the growth rate of exports and imports affected all developed countries and all developing countries.

Table 3: Growth in the volume of merchandise trade, 2010–2014 (Annual percentage change)

Exports Imports Countries/regions 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 13.9% 5.5% 2.0% 2.6% 2.3% World 13.8% 5.4% 2.0% 2.3% 2.3% 12.9% 4.9% 0.6% 1.4% 2.0% Developed economies 10.8% 3.4% -0.4% -0.3% 3.2%a

of which:

11.6% 5.5% -0.1% 1.7% 1.5% European Union (EU-28) 9.4% 2.8% -2.5% -0.9% 2.8% 27.5% -0.6% -1.0% -1.9% 0.6% Japan 10.1% 4.2% 3.8% 0.5% 2.8% 15.4% 7.2% 3.9% 2.6% 3.1% United States 14.8% 3.8% 2.8% 0.8% 4.7% 16.0% 6.7% 4.0% 4.2% 2.9% Developing economies 18.5% 7.7% 5.1% 6.1% 2.0%

of which:

10.3% -6.8% 5.5% -2.0% -3.6% Africa 6.5% 3.9% 13.2% 5.2% 3.3% 8.1% 5.1% 3.2% 2.1% 2.4% Developing America 22.3% 11.3% 3.3% 4.0% 0.6% 18.2% 8.5% 4.0% 5.2% 3.5% Asia 19.3% 7.3% 7.7% 6.6% 2.2%

of which:

29.5% 13.4% 6.2% 7.7% 6.8% China 25.0% 10.7% 3.6% 9.9% 3.9% 14.0% 15.0% -1.8% 8.5% 3.2% India 13.8% 9.7% 5.9% -0.2% 3.2% 4.2% 9.1% 9.6% 3.1% 0.3% Western Asia 8.6% 8.2% 9.2% 9.6% 0.2% 11.4% 4.1% 0.7% 1.8% 0.2% Transition economies 17.6% 16.8% 5.6% -0.8% -8.5%

Note: Data on trade volumes are derived from international merchandise trade values deflated by UNCTAD unit value indices. Source: UNCTAD - Review of Maritime Transport 2015

Circumnavigation 30 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics Most of the load volume is transported by sea and. Consequently, the maritime transport sector was impacted by slowing growth of exports and imports globally.

Although oil and gas, as well as bulk, are the load types most transported by sea, containerized cargo has been growing.

Table 4: International seaborne trade, selected years (Millions of tons loaded) Year Container Other dry cargo Five major bulks Oil and gas 1980 102 1,123 608 1,871 1985 152 819 900 1,459 1990 234 1,031 988 1,755 1995 371 1,125 1,105 2,050 2000 598 1,928 1,295 2,163

2005 969 2,009 1,709 2,422a 2006 1,076 2,112 1,814 2,698 2007 1,193 2,141 1,953 2,747 2008 1,249 2,173 2,065 2,742 2009 1,127 2,004 2,085 2,642 2010 1,280 2,022 2,335 2,772 2011 1,393 2,112 2,486 2,794 2012 1,464 2,150 2,742 2,841 2013 1,544 2,218 2,923 2,829 2014 1,631 2,272 3,112 2,826 Source: UNCTAD - Review of Maritime Transport 2015 Figure 1: International seaborne trade. selected years (Millions of tons loaded)

12,000

10,000

8,000 Oil and gas

6,000 Five major bulks Other dry cargo Container 4,000

2,000

0 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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Between 2006 and 2014 there was a change in the relative importance of maritime trade in developed economies compared to developing economies. In 2006. developed economies accounted for approximately 53% of the tonnage of cargo transported by sea. a figure which fell to 38% in 2014. However. the share of developing economies in 2006 was 46% and increased to 61 % in 2014. This was primarily because Europe dropped from 54% in 2006 to 39% in 2014. while Asia rose from a 37% in 2006 to 50% in 2014.

Table 5: World seaborne trade in 2006–2014. by type of cargo. country group and region (Millions of tons)

Goods unloaded (Millions of tons)

Region/country Year Petroleum Share of the Total Crude products Dry cargo total and gas

2006 7,878 1,931 894 5,053 100% World a 2014 9,808 1,862 1,123 6,824 100%

Developed 2006 4,165 1,282 536 2,348 53% economies 2014 3,744 985 552 2,206 38%

Transition 2006 71 6 3 62 1% economies 2014 80 1 11 68 1%

Developing 2006 3,643 644 355 2,644 46% economies 2014 5,984 876 559 4,550 61%

2006 350 41 39 269 4% Africa 2014 466 36 69 360 5%

2006 373 50 60 264 5% America 2014 607 70 93 444 6%

2006 2,907 553 249 2,105 37% Asia 2014 4,897 768 393 3,737 50%

2006 4,235 1,288 539 2,409 54% Europe 2014 3,824 986 564 2,274 39%

2006 13 0 7 6 0% Oceania 2014 14 1 4 9 0%

Source: UNCTAD - Review of Maritime Transport 2015

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The largest consumers of oil and natural gas worldwide are East Asia and North America.

Table 6: Major producers and consumers of oil and natural gas. 2014 (Percentage world market share) World oil production World oil consumption Western Asia 32% Asia Pacific 34%

North America 18% North America 22%

Transition economies 16% Europe 15%

Developing America 12% Developing America 10%

Africa 9% Western Asia 9%

9% 5% Asia Pacific Transition economies a Europe 3% Africa 4%

World natural gas production World natural gas consumption

North America 26% North America 26%

Transition economies 22% Asia Pacific 20%

Western Asia 17% Transition economies 17%

Asia Pacific 15% Western Asia 14%

Europe 7% Europe 13%

Developing America 7% Developing America 8%

Africa 6% Africa 4%

Note: Oil includes crude oil. shale oil. oil sands and natural gas liquids. The term excludes liquid fuels from other sources such as biomass and derivatives. Source: UNCTAD - Review of Maritime Transport 2015

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At a global level, shipping containers have increased a lot; however, with the 2009 global crisis and a decrease of world gross domestic product, there was a negative growth of containerization in that year.

Figure 2: Global containerized trade, 1996–2015 (Millions of TEUs and percentage annual change)

180 - Million TEUs (left) Percentage annual change (right) - 20

160 - - 15 140 -

120 - - 10

100 - - 5 80 -

60 - - 0

40 - - 5 20 -

0 -10 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: UNCTAD - Review of Maritime Transport 2015

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In terms of container transport, the transatlantic route in 2014 represented about 3.8% of total TEU’s transported, while the transpacific route accounted for about 13.4%.

Table 7: Distribution of global containerized trade by route, 2011–2014 (Millions of TEUs) Intraregional & Far East- Secondary North-South Trans-Pacific Transatlantic Year South-South Europe East-West (Millions of TEUs)

2011 56.2 25.8 20.8 20.4 18.8 6.0

2012 60.1 26.0 20.8 20.1 19.5 6.1

2013 63.7 27.2 21.7 21.0 20.1 6.2

2014 68.0 28.7 22.7 22.1 21.3 6.5

Source: UNCTAD - Review of Maritime Transport 2014

Figure 3: Distribution of global containerized trade by route, 2011–2014 (Millions of TEUs)

80

70

60

Intraregional & South-South 50 North-South

40 Trans-Pacific Far East-Europe 30 Secondary East-West Transatlantic 20

10

0 2011 2012 2013 2014

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Asia, and particularly China, is the main importer of steel, iron, coal and grain, while the American Continent and Australia are the main exporters of these strategic products.

Table 8: Some major dry bulks and steel: Main producers, users, exporters and importers, 2014 (Percentage world market share)

Steel producers % Steel users % China 50% China 46% Japan 7% United States 7% United States 7% India 5% India 5% Japan 4% Russian Federation 4% Republic of Korea 4% Republic of Korea 4% Russian Federation 3% Germany 3% Transition economies 3% 2% Germany 3% Brazil 2% Turkey 2% 2% Mexico 1% Other 15% Other 22% Iron ore exporters % Iron ore importers % Australia 54% China 68% Brazil 25% Japan 10% South Africa 5% Europe 9% Canada 3% Republic of Korea 6% 2% Other 7% Other 12% Coal exporters % Coal importers % Indonesia 34% China 20% Australia 31% Europe 19% Russian Federation 9% India 18% 6% Japan 15% South Africa 6% Republic of Korea 11% Canada 3% 5% Other 12% 2% 2% Other 9% Grain exporters % Grain importers % United States 26% Asia 33% European Union 14% Africa 21% Ukraine 10% Developing America 20% Canada 9% Western Asia 19% 8% Europe 5% Russia Federation 8% Transition economies 2% Others 25%

Source: UNCTAD - Review of Maritime Transport 2015 Circumnavigation 36 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

From 1980 to 2015 bulk ship and containers have gained relative weight compared to oil and general load tankers.

Table 9: World fleet by principal vessel types, 1980–2015 (Beginning-of-year figures. percentage share of dwt) Year Other Container General cargo Dry bulk Oil tanker 1980 4.5% 1.6% 17.0% 27.2% 49.7% 1990 7.5% 3.9% 15.6% 35.6% 37.4% 2000 9.4% 8.0% 12.7% 34.6% 35.4% 2010 7.2% 13.3% 8.5% 35.8% 35.3% 2014 11.0% 12.8% 4.6% 43.1% 28.6% 2015 11.1% 13.0% 4.4% 43.5% 28.0%

Note: All propelled seagoing merchant vessels of 100 GT and above. excluding inland waterway vessels. fishing vessels. military vessels. yachts. and offshore fixed and mobile platforms and barges (with the exception of FPSOs and drill ships). Source: UNCTAD - Review of Maritime Transport 2015

Figure 4: World fleet by principal vessel types, 1980–2015 (Beginning-of-year figures. percentage share of dwt) 100%

90%

80%

70%

Oil tanker 60% Dry bulk 50% General cargo

40% Container Other 30%

20%

10%

0% 1980 1990 2000 2010 2014 2015

Circumnavigation 37 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

Greece, Japan, China and Germany are the countries with the highest concentration of ship ownership.

Table 10: Ownership of the world fleet. as of 1 January 2015 (dwt and nº of ships)

Dead-weight tonnage (thousand dwt) Number of ships Beneficial Owner Location ª

Greece 279,429 4,017 Japan 230,675 3,986 China 157,557 4,966 Germany 122,035 3,532 Singapore 84,022 2,356 Republic of Korea 80,181 1,618 SAR (China) 75,321 1,258 United States 60,263 1,972 United Kingdom 48,381 1,227 Norway 46,370 1,857 Taiwan 45,514 869 42,222 322 Denmark 36,179 930 Turkey 27,687 1,530 Monaco 23,929 260 Italy 22,002 803 India 21,815 844 Brazil 20,459 391 20,089 243 Russian Federation 18,324 1,739 Iran (Islamic Republic of) 18,080 227

Note: Vessels of 1.000 GT and above. a “Beneficial ownership location” indicates the country/economy in which the company that has the main commercial responsibility for the vessel is located. Source: UNCTAD - Review of Maritime Transport 2015 Ranking included in the economy of the sea map.

Circumnavigation 38 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

Denmark, , France, Taiwan, China and Germany are the countries where the headquarters of the leading transportation companies are primarily located.

Table 11: The 20 leading liner companies (headquarters’ country), 1 January 2015 (Number of ships and total shipboard capacity deployed. in TEUs. ranked by TEU)

Ranking Headquarters Vessels TEU 2014 2015 2014 2015 1 Denmark 456 478 2,505,935 2,526,490 2 Switzerland 461 451 2,609,181 2,483,979 3 France 348 375 1,508,007 1,502,417 4 Taiwan 229 204 1,102,245 954,280 5 China 163 158 879,696 854,171 6 China 134 136 750,644 751,507 7 Germany 159 145 762,613 732,656 8 Republic of Korea 115 104 671,210 640,490 9 Japan 119 111 607,562 599,772 10 Singapore 121 96 629,479 545,850 11 China 98 103 510,115 520,328 12 Germany 112 104 539,793 498,902 13 Japan 104 104 488,848 494,953 14 Taiwan 107 103 561,172 487,771 15 Republic of Korea 64 65 392,874 399,791 16 Japan 72 77 368,746 397,623 17 Singapore 137 139 365,693 374,849 18 73 53 610,294 372,841 19 71 66 305,192 296,554 20 Chile 58 40 320,273 237,567

Note: Includes all container-carrying ships known to be operated by liner shipping companies. Source: UNCTAD - Review of Maritime Transport 2015

Circumnavigation 39 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

Panama, Liberia, The Marshall Islands, China and Singapore are the countries with largest ship registers.

Table 12: The 20 flags of registration with the largest registered fleets. as of 1 January 2015 (dwt)

Dead-weight tonnage Per cent Flag of registration Number of ships (thousand dwt) of world total (dwt)

2014 2015 2014 2015 2014 2015 Panama 7,068 8,351 355,700 352,192 21.2% 20.1% Liberia 3,126 3,143 205,206 203,832 12.2% 11.7% Marshall Islands 2,207 2,580 152,339 175,345 9.1% 10% Hong Kong SAR, China 2,065 2,425 138,134 150,801 8.2% 8.6% Singapore 2,318 3,689 103,467 115,022 6.2% 6.6% 1,698 1,895 72,935 82,002 4.4% 4.7% Greece 883 1,484 77,078 78,728 4.6% 4.5% Bahamas 1,327 1,421 74,874 75,779 4.5% 4.3% China 2,802 3,941 73,522 75,676 4.4% 4.3% 937 1,629 32,594 33,664 1.9% 1.9% Isle of Man 409 1,079 23,711 23,008 1.4% 1.3% Japan 766 5,224 17,915 22,419 1.1% 1.3% Norway 531 1,558 18,221 20,738 1.1% 1.2% Italy 719 1,418 20,022 17,555 1.2% 1% United Kingdom 658 1,865 18,805 17,103 1.1% 1% Republic of Korea 777 673 16,881 16,825 1.0% 1% Denmark 381 7,373 14,371 16,656 0.9% 1% Indonesia 1,609 1,604 13,846 15,741 0.8% 0.9% India 702 1,174 15,245 15,551 0.9% 0.9% 1,207 650 13,391 12,753 0.8% 0.7% Rest of the world 15,411 36,288 219,046 227,832 13.1% 13% Total World 47,601 89,464 1,676,853 1,749,222 100.0% 100.0%

Note: Propelled seagoing merchant vessels of 1.000 GT and above; ranked by dead-weight tonnage. For a complete list of all countries for ships of 100 GT and above see http://stats.unctad.org/fleet. NIS: Norwegian International Ship Register; DIS: Danish International Ship Register. Source: UNCTAD - Review of Maritime Transport 2015

Circumnavigation 40 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

Most ship owners register their ships in different location from the country where they are located, looking for better conditions.

Figure 5: Top 20 ship owning nations. beneficial ownership, 1 January 2015 (1.000 dwt. by country/economy of ownership)

300,000

250,000

200,000 Foreign flag National flag 150,000

100,000

50,000

0

Circumnavigation 41 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

Most ships are registered in developing countries.

Table 13: Distribution of dwt capacity of vessel types, by country group of registration, January 2015 (Beginning-of-year figures, per cent of dwt)

General Container Total fleet Oil tankers Bulk carriers Others cargo ships

World total 100% 100% 100% 100% 100% 100%

Developed countries 22.70% 26.26% 17.82% 28.38% 26.81% 25.75%

Countries with economies 0.71% 0.78% 0.26% 5.35% 0.03% 1.22% in transition

Developing countries 76.36% 72.91% 81.90% 65.41% 73.14% 71.45% of which:

Africa 13.14% 17.18% 9.98% 5.96% 20.19% 9.93%

America 26.74% 20.68% 31.93% 22.57% 19.75% 31.53%

Asia 26.05% 21.46% 29.46% 33.92% 28.00% 18.92%

Oceania 10.42% 13.60% 10.53% 2.95% 5.20% 11.07%

Unknown and other 0.24% 0.05% 0.01% 0.86% 0.02% 1.57%

Note: Propelled seagoing merchant vessels of 100 GT and above. Source: UNCTAD - Review of Maritime Transport 2015

Circumnavigation 42 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

The years 2009, 2011, 2013 and 2014 were years of decline in freight prices.

Table 14: Container freight markets and rates Freight markets 2009 2010 2011 2012 2013 2014 a Trans-Pacific ($ per FEU) Shanghai - United States West Coast 1,372 2,308 1,667 2,287 2,033 1,970 Percentage change 68% -28% 37% -11% -3% Shanghai - United States East Coast 2,367 3,499 3,008 3,416 3,290 3,720 Percentage change 48% -14% 14% -4% 13%

Far East-Europe ($ per TEU) Shanghai - Northern Europe 1,395 1,789 881 1,353 1,084 1,161 Percentage change 28% -51% 54% -20% 7% Shanghai-Mediterranean 1,397 1,739 973 1,336 1,151 1,253 Percentage change 24% -44% 37% -14% 9%

North-South ($ per TEU) Shanghai-South America (Santos) 2,429 2,236 1,483 1,771 1,380 1,103 Percentage change -8% -34% 19% -22% -20% Shanghai-Australia/New Zealand 1,500 1,189 772 925 818 678 (Melbourne) Percentage change -21% -35% 20% -12% -17% Shanghai-West Africa (Lagos) 2,247 2,305 1,908 2,092 1,927 1,838 Percentage change 3% -17% 10% -8% -5% Shanghai-South Africa (Durban) 1,495 1,481 991 1,047 805 760 Percentage change -1% -33% 6% -23% -6%

Intra-Asian ($ per TEU) Shanghai-South-East Asia (Singapore) 318 210 256 231 233 Percentage change -34% 22% -10% 1% Shanghai-East Japan 316 337 345 346 273 Percentage change 7% 2% 0% -21% Shanghai-Republic of Korea 193 198 183 197 187 Percentage change 3% -8% 8% -5% Shanghai-Hong Kong (China) 116 155 131 85 65 Percentage change 34% -15% -35% -24% Shanghai-Persian Gulf (Dubai) 639 922 838 981 771 820 Percentage change 44% -9% 17% -21% 6%

Note: Data based on yearly averages. FEU: 40-foot equivalent unit. Source: UNCTAD - Review of Maritime Transport 2015

Circumnavigation 43 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

In the period 2000-2015, the supply of transport in containers always grew; however, in 2009, the demand decreased. The growth in demand after 2009, on average, is lower than the growth in demand before 2009.

Table 15: Growth of demand and supply in container shipping. 2000–2015 (Annual growth rates) Year Demand Supply 2000 10.7% 7.8% 2001 2.4% 8.5% 2002 10.5% 8.0% 2003 11.6% 8.0% 2004 13.4% 8.0% 2005 10.6% 10.5% 2006 11.2% 13.6% 2007 11.4% 11.8% 2008 4.2% 10.8% 2009 -9.0% 4.9% 2010 12.8% 8.3% 2011 7.2% 6.8% 2012 3.2% 4.9% Note: Supply data refer to the total capacity of the container-carrying fleet. including multi-purpose and other vessels with some degree of container carrying capacity. 2013 5.0% 5.0% Demand growth is based on million TEU lifts. The data for 2014 are projected figures. 2014 6.0% 5.0% Source: UNCTAD - Review of Maritime Transport 2015 2015 (prevision) 6.5% 6.0%

Figure 6: Growth of demand and supply in container shipping. 2000–2015 (Annual growth rates)

15.00%

10.00%

5.00%

Demand 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Supply

-5.00%

-10.00%

-15.00%

Circumnavigation 44 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

The Baltic Dry Index is a reference index in the analysis of the price of maritime transport.

Figure 7: Baltic Exchange Dry Index, 2012–2016 (16 July 2016) (Index base year 1985 = 1,000 points)

Baltic Exchange Dry Index

2,500

2,000

1,500

1,000

500

0

2011-11-01

2015-11-01

2013-11-01

2012-11-01

2014-11-01

2011-07-01

2011-05-01 2015-01-01

2011-03-01 2013-01-01

2012-01-01

2014-01-01 2011-09-01 2016-01-01

2015-07-01

2015-05-01 2013-07-01

2012-07-01

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2013-05-01 2015-03-01

2012-05-01

2014-05-01 2015-09-01 2016-05-01

2013-03-01

2012-03-01

2013-09-01 2014-03-01 2016-03-01

2012-09-01 2014-09-01

Note: The BDI is a composite of 3 sub-indices. each covering a different carrier size: Capesize. Panamax. and Supramax. Capesize carriers are the largest ships with a capacity greater than 150.000 DWT. Panamax refers to the maximum size allowed for ships travelling through the Panama Canal. typically 65.000 - 80.000 DWT. The Supramax Index covers carriers with a capacity of 50.000 - 60.000 DWT. Source: www.quandl.com/data/LLOYDS/BDI-Baltic-Dry-Index

Circumnavigation 45 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

The world's ten largest container ports are Asian, seven are Chinese.

Table 16: Top 20 container terminals and their throughput for 2011, 2012, 2013 and 2014 (Million TEUs and percentage change)

Percentage Percentage Port Name Country 2012 2013 2014 change share in the 2013-2014 world Million TEUs Shanghai China 32.5 36.6 35.3 -3.62% 5.16% Singapore Singapore 31.6 32.6 33.9 3.89% 4.95% Shenzhen China 22.9 23.3 24.0 3.27% 3.51%

Hong Kong (China) Hong Kong (China) 23.1 22.4 22.2 -0.68% 3.24%

Ningbo China 15.7 17.4 19.5 12.10% 2.85% Busan South Korea 17.0 17.7 18.7 5.61% 2.73% Guangzhou China 14.7 15.3 16.6 8.50% 2.43% Qingdao China 14.5 15.5 16.6 6.83% 2.43%

Dubai United Arab Emirates 13.3 13.6 15.2 11.43% 2.22%

Tianjin China 12.3 13.0 14.1 8.15% 2.06% Roterdam 11.9 11.6 12.3 5.83% 1.80% Port Klang Malaysia 10.0 10.4 10.9 5.76% 1.59% Kaohsiung Taiwan 9.7 9.9 10.6 6.59% 1.55% Dalian China 8.1 10.0 10.1 1.15% 1.47% Hamburg Germany 8.9 9.3 9.7 5.09% 1.42% Antwerp Belgium 8.6 8.6 9.0 4.66% 1.32% Xiamen China 7.2 8.0 8.6 7.04% 1.26% Tanjung Pelepas Malaysia 7.7 7.7 8.5 11.43% 1.24% Los Angeles United States 8.1 7.9 8.3 5.99% 1.21% Jacarta Indonesia 6.1 6.2 6.1 -1.91% 0.89% Total top 20 284.1 296.8 310.1 4.49% 45.31%

Note: In this list Singapore does not include the port of Jurong. Source: UNCTAD - Review of Maritime Transport 2015 Ranking included in the economy of the sea map.

Circumnavigation 46 HELM – PwC Economy of the Sea Barometer (World) Maritime transport, ports and logistics

The five largest ports operators in the world have their headquarters in United Arab Emirates or China.

Table 17: World’s leading ports by productivity, 2014 (container moves per ship, per hour on all vessel sizes and percentage increase)

Percentage Percentage 2012 berth 2013 berth 2014 berth Port Country increase increase productivity productivity productivity 2013/2012 2014/2013 Jebel Ali United Arab Emirates 81 119 138 47% 16% Tianjin China 86 130 125 51% -4% Qingdao China 96 126 125 31% -1%

Nansha China 73 104 119 42% 14%

Yantian China 78 106 117 36% 10% Khor al Fakkan United Arab Emirates 74 119 108 61% -9% Ningbo China 88 120 107 36% -11% Yokohama Japan 85 108 105 27% -3% Busan Republic of Korea 80 105 102 31% -3% Xiamen China 76 106 90 39% -15%

Source: UNCTAD - Review of Maritime Transport 2015

Circumnavigation 47 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 48 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

Circumnavigation 49 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

The order backlog in global shipyards grew between 2002 and 2008; thereafter. orders decreased until 2012. However, for the following four years (2012, 2013, 2014 and 2015), this trend has been reversed.

Table 18: Summary of activity in World Shipyards (Thousands of CGT)

Year Order book New orders Completions 2002 48,946 20,471 21,396 2003 70,807 41,705 22,824 2004 92,800 45,128 25,461 2005 107,200 39,588 29,353 2006 138,000 57,315 34,123 2007 183,740 85,277 34,640 2008 194,166 42,953 41,873 2009 156,200 16,554 44,401 2010 128,013 38,581 51,573 2011 111,442 30,823 51,126 2012 92,300 24,713 47,967 2013 102,900 53,839 38,068 2014 108,146 45,592 36,450 2015 109,690 39,354 37,601

Note: CGT - Compensated Gross Tonnage- International unit of measure that facilitates the comparison of different shipyards’ production regardless of the types of vessel produced. The CGT of a ship is calculated using a table of conversion factors published by OECD. The conversion factors vary with ship type. GT – Gross Tonnage; unit of 100 cubic feet or 2.831 cubic meters. used in arriving at the calculation of gross tonnage. Source: Sea Europe. Shipbuilding Market Monitoring 2015

Figure 8: Summary of activity in World Shipyards (Thousands of CGT)

200,000

180,000

160,000

140,000

120,000 Order book 100,000 New orders

80,000 Completions

60,000

40,000

20,000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Circumnavigation 50 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

The evolution of activity in Chinese shipyards has followed the trend in the shipyards globally, although the growth recorded between 2002 and 2008 was more significant than that in the rest of the world.

Table 19: Summary of activity in Chinese shipyards (Thousands of CGT) Year Order book New orders Completions 2002 5,943 2,669 1,561 2003 9,327 5,235 2,604 2004 12,589 5,691 2,929 2005 15,629 6,067 4,343 2006 25,701 13,366 5,148 2007 50,221 28,925 6,638 2008 62,011 13,864 9,053 2009 54,359 7,113 12,520 2010 48,923 16,102 18,801 2011 40,878 8,339 19,739 2012 32,209 8,555 19,701 2013 36,649 21,402 13,377 2014 40,641 16,900 11,907 2015 39,925 13,119 13,326

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Figure 9: Summary of activity in Chinese shipyards (Thousands of CGT) 70,000

60,000

50,000

40,000 Order book New orders 30,000 Completions

20,000

10,000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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Although in general. the activity of South Korean shipyards is below the activity of Chinese shipyards, at the end of 2014, the number of finished ships was very similar.

Table 20: Summary of activity in South Korean shipyards (Thousands of CGT) Year Order book New orders Completions 2002 15,215 5,663 6,650 2003 26,368 18,671 7,167 2004 33,365 15,806 8,348 2005 37,243 13,960 10,136 2006 46,544 21,884 11,868 2007 63,389 32,969 11,135 2008 64,357 14,780 14,535 2009 47,576 3,383 14,463 2010 39,145 11,915 14,906 2011 35,529 13,615 15,954 2012 28,517 7,111 13,393 2013 31,169 17,437 12,027 2014 31,244 12,588 11,606 2015 29,257 10,120 11,750

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Figure 10: Summary of activity in South Korean shipyards (Thousands of CGT) 70,000

60,000

50,000

40,000 Order book New orders 30,000 Completions

20,000

10,000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Circumnavigation 52 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

Japanese shipyards have also seen a recovery in the last four years in terms of order book.

Table 21: Summary of activity of Japanese shipyards (Thousands of CGT)

Year Order book New orders Completions 2002 13,052 7,965 6,570 2003 19,076 11,779 6,887 2004 25,113 13,675 7,996 2005 26,894 8,620 8,479 2006 29,372 11,193 9,551 2007 30,714 10,125 8,851 2008 30,649 7,820 9,741 2009 24,460 3,877 9,628 2010 19,836 5,374 9,821 2011 16,132 4,118 9,162 2012 12,534 4,396 8,415 2013 13,615 7,550 7,092 2014 17,442 10,256 6,768 2015 20,855 10,222 6,795 Source: Sea Europe. Shipbuilding Market Monitoring 2015

Figure 11: Summary of activity of Japanese shipyards (Thousands of CGT) 35,000

30,000

25,000

20,000 Order book New orders 15,000 Completions

10,000

5,000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Circumnavigation 53 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

European yards also have experienced a recovery of the order book as from 2012.

Table 22: Summary of activity of EU28+ Norway shipyards (Thousands of CGT)

Year Order book New orders Completions 2002 9,666 2,341 4,896 2003 9,610 3,951 4,498 2004 12,406 6,798 4,194 2005 15,738 7,226 3,766 2006 17,430 5,597 4,762 2007 17,376 5,257 4,637 2008 14,209 2,229 4,962 2009 9,647 571 3,966 2010 6,495 2,487 4,020 2011 5,836 1,830 2,474 2012 5,058 1,859 2,232 2013 5,705 2,515 1,975 2014 7,247 3,394 2,179 2015 8,715 3,240 1,706

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Figure 12: Summary of activity of EU28+ Norway shipyards (Thousands of CGT)

20,000

18,000

16,000

14,000

12,000 Order book 10,000 New orders

8,000 Completions

6,000

4,000

2,000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Circumnavigation 54 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

At the end of 2015, 39.6% of the order ships refer to solid bulk load ship, immediately followed by orders for tankers for the transport of crude oil (27.7%).

Table 23: Orderbook by Ship Types - 31.12.2015 Types NO. 1,000 GT 1,000 CGT 1,000 DWT % DWT Crude Oil Tanker 437 40,523 13,872 76,219 27.7% Oil Products Tanker 193 3,199 2,009 5,200 1.9% Chemical Tanker 497 9,922 6,888 16,020 5.8% Other Liquids 6 4 11 3 0.0% Tankers 1,133 53,648 22,780 97,442 35.5% Bulk Dry 1,299 59,938 25,430 108,904 39.6% Bulk Dry / Oil 4 174 99 322 0.1% Self-Discharging Bulk Dry 8 207 112 314 0.1% Other Bulk Dry 20 185 133 239 0.1% Bulk Carriers 1,331 60,504 25,774 109,779 40.0% General Cargo 349 2,988 2,745 4,288 1.6% Container 497 39,521 18,569 41,942 15.3% Refrigerated Cargo 15 135 193 132 0.0% Ro-Ro Cargo 134 5,858 3,267 1,912 0.7% Other Dry Cargo 22 669 422 684 0.2% Dry Cargoes 1,017 49,171 25,196 48,958 17.8% LNG Tanker 143 15,696 12,059 11,126 4.0% LPG Tanker 212 6,115 4,330 6,884 2.5% Gastankers 355 21,811 16,389 18,010 6.6% Passenger/Ro-Ro Cargo 80 588 785 130 0.0% Passenger (Cruise) 52 5,344 5,389 413 0.2% Other Passenger Vessels/Ferries 49 75 130 27 0.0% Ferries / Passenger Ships 181 6,007 6,304 570 0.2% Fish Catching 91 142 365 0 0.0% Other Fishing 34 64 162 0 0.0% Offshore Supply 710 1,841 3,995 0 0.0% Other Offshore 306 7,931 6,162 0 0.0% Research 36 176 286 0 0.0% Towing / Pushing 600 251 1,102 0 0.0% Dredging 29 194 285 0 0.0% Other Activities 216 523 889 0 0.0% Other Non Cargo Vessels 2,022 11,122 13,246 0 0.0% Total 6,039 202,265 109,690 274,758 100.0%

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Circumnavigation 55 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

In 2015, China had the highest volume of orders for ships (36.4%), followed by South Korea (26.7%) and Japan (19.0%). Fourth, is the European Union 28+ Norway with 7.9%.

Table 24: Orderbook by Country - 31.12.2015 Country NO. 1,000 GT % 1,000 CGT % 38 717 0.4% 526 0.5% 12 879 0.4% 889 0.8% Germany 28 1,860 0.9% 1,766 1.6% Italy 37 1,985 1.0% 2,158 2.0% Netherlands 75 247 0.1% 383 0.3% 75 187 0.1% 348 0.3% 83 1,923 1.0% 1,080 1.0% 52 718 0.4% 521 0.5% United Kingdom 15 32 0.0% 64 0.1% Other EU-28 26 757 0.3% 724 0.6% EU-28 441 9,305 4.6% 8,459 7.7% Norway 34 160 0.1% 256 0.2% Russia 49 319 0.2% 373 0.3% Turkey 141 368 0.2% 621 0.6% Ukraine 13 39 0.0% 68 0.1% Others 1 0 0.0% 1 0.0% Other European 238 886 0.4% 1,319 1.2% Japan 991 40,585 20.1% 20,855 19.0% South Korea 774 59,974 29.7% 29,257 26.7% China 2,354 77,855 38.5% 39,925 36.4% Brazil 128 3,111 1.5% 2,184 2.0% India 120 292 0.1% 502 0.5% Indonesia 110 181 0.1% 321 0.3% Malaysia 129 106 0.1% 315 0.3% Philippines 93 5,170 2.6% 2,347 2.1% Singapore 56 192 0.1% 281 0.3% Taiwan 33 1,444 0.7% 796 0.7% USA 111 845 0.4% 856 0.8% 206 1,606 0.8% 1,300 1.2% Others 255 711 0.4% 973 0.9% Rest of the world 1,241 13,658 6.8% 9,875 9.0% World Total 6,039 202,265 100% 109,690 100.0%

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Circumnavigation 56 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

At the end of 2015, 38.7% of the new order ships refer to tanks for the transport of crude oil, immediately followed by new orders of container carriers (23.1%) and solid bulk load ships (21.8%).

Table 25: New Orders by Ship types 2015

Types NO. 1,000 GT 1,000 CGT 1,000 DWT % DWT Crude Oil Tanker 225 21,346 7,258 40,230 38.7% Oil Products Tanker 71 1,508 878 2,466 2.4% Chemical Tanker 200 4,040 2,784 6,619 6.4% Other Liquids 1 0 1 0 0.0% Tankers 497 26,894 10,921 49,315 47.4% Bulk Dry 318 12,744 5,755 22,692 21.8% Bulk Dry / Oil 8 207 112 314 0.3% Other Bulk Dry 16 166 114 211 0.2% Bulk Carriers 342 13,117 5,981 23,217 22.3% General Cargo 125 911 867 1,363 1.3% Container 265 22,939 10,475 24,017 23.1% Refrigerated Cargo 11 68 112 76 0.1% Ro-Ro Cargo 65 2,998 1,687 898 0.9% Other Dry Cargo 6 123 90 81 0.1% Dry Cargoes 472 27,039 13,231 26,435 25.4% LNG Tanker 29 3,160 2,402 2,056 2.0% LPG Tanker 72 2,463 1,655 2,759 2.7% Gastankers 101 5,623 4,057 4,815 4.6% Passenger/Ro-Ro Cargo 41 307 402 72 0.1% Passenger (Cruise) 19 2,002 2,004 152 0.1% Other Passenger Vessels/Ferries 27 39 60 22 0.0% Ferries / Passenger Ships 87 2,348 2,466 246 0.2% Fish Catching 43 59 153 0 0.0% Other Fishing 24 50 125 0 0.0% Offshore Supply 160 309 706 0 0.0% Other Offshore 57 788 816 0 0.0% Research 12 66 105 0 0.0% Towing / Pushing 261 97 464 0 0.0% Dredging 11 81 112 0 0.0% Other Activities 41 149 219 0 0.0% Other Non Cargo Vessels 609 1,599 2,700 0 0.0% Total 2,108 76,620 39,354 104,029 100.0%

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Circumnavigation 57 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

Table 26: New Orders by Country 2015

Country NO. 1,000 GT % 1,000 CGT % Croatia 15 331 0.4% 244 0.6% Germany 8 722 0.9% 672 1.7% Italy 15 731 1.0% 782 2.0% Netherlands 22 64 0.1% 101 0.3% Poland 29 54 0.1% 114 0.3% Romania 35 200 0.3% 213 0.5% Spain 33 589 0.8% 329 0.8% United Kingdom 10 22 0.0% 39 0.1% Other EU-28 18 657 0.8% 653 1.7% EU-28 185 3,370 4.4% 3,147 8.0% Norway 17 50 0.1% 93 0.2% Russia 4 54 0.1% 59 0.1% Turkey 79 153 0.2% 278 0.7% Ukraine 4 1 0.0% 6 0.0% Other European 104 258 0.3% 436 1.1% Japan 513 20,555 26.8% 10,222 26.0% South Korea 276 23,634 30.8% 10,120 25.7% China 712 25,327 33.1% 13,119 33.3% Brazil 6 10 0.0% 22 0.1% India 5 4 0.0% 11 0.0% Indonesia 33 52 0.1% 88 0.2% Malaysia 21 16 0.0% 49 0.1% Philippines 43 2,268 3.0% 1,046 2.7% Singapore 19 25 0.0% 61 0.2% Taiwan 15 363 0.5% 269 0.7% USA 23 35 0.0% 86 0.2% Vietnam 81 554 0.7% 426 1.1% Others 72 151 0.2% 252 0.6% Rest of the world 318 3,478 4.5% 2,310 5.9% World Total 2,108 76,620 100.0% 39,354 100.0%

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Circumnavigation 58 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

At the end of 2015, 50.4% of completed ships worldwide were related to transport dry bulk ships, 20% of completed ships refer to container carriers, and 11.9% for transport tanks of crude oil.

Table 27: Completions by Ship types 2015 Types NO. 1,000 GT 1,000 CGT 1,000 DWT % DWT Crude Oil Tanker 61 6,041 2,013 11,237 11.9% Oil Products Tanker 68 342 329 520 0.6% Chemical Tanker 207 4,585 2,867 7,585 8.1% Tankers 336 10,968 5,209 19,342 20.5% Bulk Dry 616 26,272 11,533 47,438 50.4% Self-Discharging Bulk Dry 2 107 45 187 0.2% Other Bulk Dry 26 140 117 183 0.2% Bulk Carriers 644 26,519 11,695 47,808 50.8% General Cargo 161 1,202 1,058 1,833 1.9% Container 212 17,339 8,246 18,847 20.0% Refrigerated Cargo 1 5 9 5 0.0% Ro-Ro Cargo 88 2,090 1,241 851 0.9% Other Dry Cargo 8 266 159 326 0.3% Dry Cargoes 470 20,902 10,713 21,862 23.2% LNG Tanker 31 3,021 2,411 2,482 2.6% LPG Tanker 83 2,205 1,565 2,482 2.6% Gastankers 114 5,226 3,976 4,964 5.3% Passenger/Ro-Ro Cargo 57 271 392 86 0.1% Passenger (Cruise) 8 642 670 51 0.1% Other Passenger Vessels/Ferries 49 54 101 16 0.0% Ferries / Passenger Ships 114 967 1,163 153 0.2% Fish Catching 153 139 420 0 0.0% Other Fishing 13 16 43 0 0.0% Offshore Supply 305 658 1,493 0 0.0% Other Offshore 92 1,706 1,446 0 0.0% Research 23 78 142 0 0.0% Towing / Pushing 417 135 663 0 0.0% Dredging 12 54 94 0 0.0% Other Activities 148 270 544 0 0.0% Other Non Cargo Vessels 1,163 3,056 4,845 0 0.0% Total 2,841 67,636 37,601 94,128 100%

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Circumnavigation 59 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

In 2015, Asia (China, South Korea and Japan), completed more than 80% of the production of ships in that year (35.4%, 31.2% and 18.1% respectively). In the European Union 28 + Norway finished only 4.6% of all finished ships worldwide.

Table 28: Completions by Countries 2015 Country NO. 1,000 GT % 1.000 CGT % Croatia 7 73 0.1% 67 0.2% Germany 10 384 0.6% 375 1.0% Italy 6 219 0.3% 254 0.7% Netherlands 33 89 0.1% 144 0.4% Poland 32 60 0.1% 130 0.3% Romania 39 485 0.7% 346 0.9% Spain 27 38 0.1% 107 0.3% Other EU-28 24 128 0.2% 178 0.5% EU-28 178 1,476 2.2% 1,601 4.3% Norway 21 59 0.1% 105 0.3% Russia 14 47 0.1% 72 0.2% Turkey 91 173 0.3% 347 0.9% Others 7 1 0.0% 8 0.0% Other European 133 280 0.4% 532 1.4% Japan 520 13,005 19.2% 6,795 18.1% South Korea 360 23,365 34.5% 11,750 31.2% China 941 25,160 37.2% 13,326 35.4% Brazil 31 365 0.5% 252 0.7% India 26 26 0.0% 65 0.2% Indonesia 171 182 0.3% 412 1.1% Malaysia 105 61 0.1% 203 0.5% Philippines 40 1,865 2.8% 943 2.5% Singapore 22 11 0.0% 43 0.1% Taiwan 55 748 1.1% 522 1.4% USA 75 427 0.6% 453 1.2% Vietnam 89 591 0.9% 495 1.3% Others 95 72 0.1% 211 0.6% Rest of the world 709 4,348 6.4% 3,599 9.6% World Total 2,841 67,636 100.0% 37,601 100.0%

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Ranking included in the economy of the sea map.

Circumnavigation 60 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

The ship production capacity has drastically reduced in Europe 28 + Norway, but has increased exponentially in China, South Korea and Japan have been able to maintain their importance.

Figure 13: Completions in global shipyards (in CGT)

EU 28 + Norway

Japan

South Korea

China

Others

2002 2008 2015

Source: Sea Europe. Shipbuilding Market Monitoring 2015

Circumnavigation 61 HELM – PwC Economy of the Sea Barometer (World) Shipbuilding, maintenance and equipment

China, India, Bangladesh and Pakistan were the locations where there was the most dismantling of bulk volume ships. China was the country that dismantled most container ships.

Table 29: Tonnage reported sold for demolition, major vessel types and countries where demolished. 2014 (Thousands of GT)

Others Indian China Índia Bangladesh Pakistan Turkey Others World total subcontinent

Year 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014

Oil tankers 748 393 791 827 994 368 2,680 2,227 278 160 57 86 296 420 5,844 4,482 Bulk 3,524 1,576 2,934 2,771 4,222 2,888 1,335 1,458 132 111 241 151 277 143 12,665 9,098 carriers General 332 719 930 301 202 313 99 65 12 332 349 306 259 2,211 2,008 cargo Container 795 3,455 3.195 777 888 303 22 32 119 77 63 128 139 5,223 4,769 Ships

Gas carriers 249 215 63 8 62 6 29 28 35 29 382 342

Chemical 13 136 75 3 23 10 40 13 13 34 53 1 218 196 tankers Offshore 13 127 127 6 115 199 943 331 39 3 9 190 26 1,429 697 Ferries and passenger 74 109 13 19 171 67 42 22 322 194 ships Other 450 270 186 168 63 106 49 53 10 12 758 609

Total 6,124 6,965 8,409 4,873 6,506 4,269 5,118 4,127 586 271 973 839 1,336 1,051 29,052 22,394

Note: Propelled seagoing merchant vessels of 100 GT and above. Source: UNCTAD - Review of Maritime Transport 2015

Circumnavigation 62 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 63 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 64 HELM – PwC Economy of the Sea Barometer (World) Offshore energy

Circumnavigation 65 HELM – PwC Economy of the Sea Barometer (World) Offshore energy

In 2004, after the Middle East and North America and, Europe was the third largest oil and natural gas producing region of the world. By 2015, Europe had been relegated to 4th place; the Middle East continued to lead production, followed by Latin then North America. Table 30: Total onshore and offshore proved reserves of At end 2004 At end 2013 At end 2014 At end 2015 Thousand Thousand Thousand Thousand Share of the million million million million world total barrels barrels barrels barrels USA 29.3 48.5 55.0 55.0 3.2% Canada 179.6 172.9 172.2 172.2 10.1% Mexico 14.8 11.1 10.8 10.8 0.6% Total North America 223.7 232.5 238.0 238.0 14.0% Brazil 11.2 15.6 16.2 13.0 0.8% 5.1 8.2 8.0 8.0 0.5% 79.7 298.3 300.0 300.9 17.7% Other Central & South America 7.4 7.6 7.5 7.3 0.4% Total & Center South America 103.4 329.8 331.7 329.2 19.4% 7.0 7.0 7.0 7.0 0.4% 9.0 30.0 30.0 30.0 1.8% Norway 9.7 7.0 6.5 8.0 0.5% Russia 105.5 105.0 103.2 102.4 6.0% United Kingdom 4.0 3.0 2.8 2.8 0.2% Other Europe & Eurasia 5.6 5.1 5.1 5.1 0.2% Total Europe & Eurasia 140.8 157.2 154.6 155.2 9.1% Iran 132.7 157.8 157.8 157.8 9.3% 115.0 150.0 143.1 143.1 8.4% 101.5 101.5 101.5 101.5 6.0% 5.6 5.0 5.2 5.3 0.3% Qatar 26.9 25.1 25.7 25.7 1.5% 264.3 265.9 267.0 266.6 15.7% United Arab Emirates 97.8 97.8 97.8 97.8 5.8% 3.0 3.0 3.0 3.0 0.2% Other Middle East 3.3 2.8 2.7 2.7 0.1% Total Middle East 750.1 808.7 803.8 803.5 47.3% 11.8 12.2 12.2 12.2 0.7% 9.0 12.7 12.7 12.7 0.7% 3.6 3.9 3.7 3.5 0.2% 39.1 48.4 48.4 48.4 2.8% Nigeria 35.9 37.1 37.1 37.1 2.2% South 0 3.5 3.5 3.5 0.2% Other Africa 8.3 12.4 11.8 11.8 0.8% Total Africa 107.6 130.1 129.3 129.1 7.6% Australia 3.9 4.0 4.0 4.0 0.2% China 15.5 18.5 18.5 18.5 1.1% India 5.6 5.7 5.7 5.7 0.3% Indonesia 4.3 3.7 3.6 3.6 0.2% Malaysia 5.2 3.8 3.6 3.6 0.2% Vietnam 3.1 4.4 4.4 4.4 0.3% Other Asia Pacific 3.1 2.7 2.8 2.8 0.2% Total Asia Pacific 40.6 42.7 42.6 42.6 2.5% Total World 1 366.2 1 701.0 1 700.0 1 697.6 100.0%

Source: BP Statistical Review 2016

Circumnavigation 66 HELM – PwC Economy of the Sea Barometer (World) Offshore energy

In 2015, more than half of the world's proven gas reserves belonged to Iran and the Russian Federation.

Table 31: Total proved reserves of natural gas by country

At end 2004 At end 2013 At end 2014 At end 2014 Trillion Trillion Trillion Trillion cubic cubic cubic cubic metres metres metres metres US 5.5 9.6 10.4 10.4 Other North America 2.0 2.3 2.3 2.3 Total North America 7.5 12.0 12.8 12.8 Venezuela 4.3 5.6 5.6 5.6 Other S. & Cent. America 2.6 2.1 2.0 2.0 Total S. & Cent. America 7.0 7.7 7.6 7.6 Russian Federation 3.1 32.3 32.4 32.3 2.3 17.5 17.5 17.5 Other Europe & Eurasia 9.3 7.7 7.1 7.0 Total Europe & Eurasia 42.7 57.5 57.0 56.8 Iran 27.5 34.0 34.0 34.0 Iraq 3.2 3.6 3.7 3.7 Qatar 25.4 24.7 24.5 24.5 Saudi Arabia 6.8 8.2 8.3 8.3 United Arab Emirates 6.1 6.1 6.1 6.1 Other Middle East 3.3 3.5 3.5 3.4 Total Middle East 72.2 80.0 80.1 80.0 Algeria 4.5 4.5 4.5 4.5 Nigeria 5.2 5.1 5.1 5.1 Other Africa 4.5 4.5 4.5 4.5 Total Africa 14.2 14.2 14.1 14.1 Australia 2.3 3.7 3.5 3.5 China 1.5 3.5 3.7 3.8 Other Asia Pacific 9.2 8.2 8.2 8.3 Total Asia Pacific 13.0 15.2 15.4 15.6 Total World 156.5 186.5 187.0 186.9

Source: BP Statistical Review 2016

Circumnavigation 67 HELM – PwC Economy of the Sea Barometer (World) Offshore energy

Since late 2015, the price of a barrel of Brent oil has been below 100 USD; in mid 2016, the price was slightly above 40 USD. The oil price decline has put pressure on the profitability of offshore operations, which are more expensive than onshore operations.

Table 32: Evolution of the Brent’s price Price in Price in Price in Price in Price in Date Date Date Date Date USD USD USD USD USD 05-10 74.65 08-11 114.85 11-12 111.23 02-14 109.07 05-15 65.56 06-10 75.01 09-11 102.76 12-12 111.11 03-14 107.76 06-15 63.59 07-10 78.18 10-11 109.56 01-13 115.55 04-14 108.07 07-15 52.21 08-10 74.64 11-11 110.52 02-13 111.38 05-14 109.41 08-15 50.05 09-10 82.31 12-11 107.38 03-13 110.02 06-14 112.36 09-15 48.37 10-10 83.15 01-12 110.98 04-13 102.37 07-14 106.02 10-15 49.56 11-10 85.92 02-12 122.66 05-13 100.39 08-14 103.19 11-15 44.86 12-10 94.75 03-12 122.88 06-13 102.16 09-14 94.67 12-15 37.89 01-11 101.01 04-12 119.47 07-13 107.7 10-14 85.86 01-16 34.74 02-11 111.8 05-12 101.87 08-13 114.01 11-14 70.15 02-16 35.10 03-11 117.36 06-12 97.8 09-13 108.37 12-14 57.33 03-16 40.44 04-11 125.89 07-12 104.92 10-13 108.84 01-15 52.99 04-16 48.13 05-11 116.73 08-12 114.57 11-13 109.69 02-15 62.58 05-16 49.32 06-11 112.48 09-12 112.39 12-13 110.8 03-15 55.11 06-16 49.68 07-11 116.74 10-12 108.7 01-14 106.4 04-15 66.78 07-16 42.46 Source: Bloomberg Note: The price corresponds to the last working day of the month.

Figure 14: Evolution of the Brent’s price in the last 5 years USD 140

120

100

80

60

40

20

0

01-10-2010 01-12-2011 01-04-2016 01-08-2010 01-12-2010 01-02-2011 01-04-2011 01-06-2011 01-08-2011 01-10-2011 01-02-2012 01-04-2012 01-06-2012 01-08-2012 01-10-2012 01-12-2012 01-02-2013 01-04-2013 01-06-2013 01-08-2013 01-10-2013 01-12-2013 01-02-2014 01-04-2014 01-06-2014 01-08-2014 01-10-2014 01-12-2014 01-02-2015 01-04-2015 01-06-2015 01-08-2015 01-10-2015 01-12-2015 01-02-2016 01-06-2016

Circumnavigation 68 HELM – PwC Economy of the Sea Barometer (World) Offshore energy

In 2015 the top 3 countries in offshore oil and gas production were Saudi Arabia, Norway and Qatar.

Table 33: Offshore Oil & Gas Production (Million bbl)

Country 2010 2011 2012 2013 2014 2015

Saudi Arabia 1,170.5 1,179.1 1,195.4 1,309.3 1 349.0 1,572.0 Norway 1,449.7 1,379.7 1,417.4 1,353.7 1 375.7 1,447.6 Qatar 1,225.3 1,411.4 1,446.1 1,441.5 1 429.2 1,411.8 Iran 848.7 893.4 896.2 918.5 979.3 1,171.3 Brazil 751.1 766.8 775.6 780.9 849.2 928.0 Mexico 922.8 906.9 905.5 906.8 895.7 852.5 USA 1,040.2 858.0 782.0 761.4 756.9 822.4 Nigeria 753.3 743.8 755.4 692.3 720.5 722.2 United Arab Emirates 568.3 606.8 632.1 629.8 655.2 688.8 Angola 695.0 655.5 699.6 678.2 670.2 687.9 United Kingdom 837.4 692.0 593.5 539.6 538.9 608.5 Malaysia 592.1 542.9 528.6 532.4 526.5 551.0 Australia 441.5 403.1 415.1 415.6 441.8 428.2 China 375.3 358.0 343.4 352.7 373.8 414.1 Azerbaijan 477.8 454.4 443.5 431.8 412.7 410.8 Indonesia 446.4 412.2 395.2 383.7 386.9 361.7 India 414.4 376.4 348.6 294.6 305.9 319.1 Venezuela 337.3 309.3 298.2 282.0 264.7 265.4 Russia 197.4 211.2 214.9 218.3 228.7 255.9 Egypt 373.6 372.3 368.7 335.2 278.2 254.9 275.1 259.5 260.7 274.3 268.4 252.0 Thailand 236.4 229.8 272.6 262.3 260.2 250.7 Vietnam 172.0 167.8 191.8 188.5 184.9 195.5 170.5 162.0 175.3 167.6 162.0 151.6 74.9 75.7 75.3 76.8 91.0 115.6 Other countries 1,497.6 1,444.2 1,440.9 1,442.2 1,363.8 1,221.3 Total 16,344.6 15,872.0 15,871.7 15,670.0 15,769.6 16,361.0

Source: FLAD and Rystad Energy Ranking included in the economy of the sea map.

Circumnavigation 69 HELM – PwC Economy of the Sea Barometer (World) Offshore energy

Offshore wind power capacity in the world is led by three European countries (UK, Germany and Denmark), representing 79.6% of total installed capacity in the world. Fourth, China represents 8.4% of capacity.

Table 34: Global cumulative offshore wind capacity in 2015

Total 2011 Total 2012 Total 2013 Total 2014 Total 2015 Share of the (MW) total UK 2,094 2,948 3,681 4,500 5,067 41.9% Germany 200 280 520 1,012 3,295 27.2% Denmark 874 921 1,271 1,271 1,271 10.5% PR China 263 390 429 654 1,015 8.4% Belgium 195 380 572 712 712 5.8% Netherlands 247 247 247 247 427 3.5% Sweden 164 164 212 212 202 1.7% Japan 25 25 50 50 53 0.4% Finland 26 26 26 26 26 0.2% Ireland 25 25 25 25 25 0.2% South Korea 2 5 5 5 5 0.04% Spain - - 5 5 5 0.04% Norway 2 2 2 2 2 0.01% Portugal 2 2 2 2 2 0.01% USA - - 0 0 0 0% Total 4,119 5,415 7,046 8,724 12,107 100.0%

Source: Global Wind Report Market update 2015 Ranking included in the economy of the Figure 15: Global cumulative offshore wind sea map. capacity in 2015 MW Figure 16: Annual cumulative capacity (2011-2015)

6,000

5,000 Cumulative Capacity 2013 MW 4,000 Cumulative 14,000 12,107 Capacity 2014 12,000 3,000 Cumulative 10,000 8,724 Capacity 2015 8,000 7,046 2,000 5,415 6,000 4,119 1,000 4,000 2,000 0 0 2011 2012 2013 2014 2015

Circumnavigation 70 HELM – PwC Economy of the Sea Barometer (World) Offshore energy

Figure 17: Distribution of tidal companies in the world (2014)

Non-EU EU 49% 51%

Source: 2014 JRC Ocean Energy Status Report

Circumnavigation 71 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 72 HELM – PwC Economy of the Sea Barometer (World) Naval security power, piracy and maritime disasters (oil spills)

Circumnavigation 73 HELM – PwC Economy of the Sea Barometer (World) Naval security power, piracy and maritime disasters (oil spills)

In 2016, the country with the biggest number of heavy naval equipments (aircraft carriers, frigates, destroyers, corvettes and submarines) is China with 175 , followed by the US with 162, Russia is the third with 161 large naval craft.

Table 35: Total Naval Ship Power by Countries. 2016 (Sum of the number Aircraft Carriers, Frigates, Destroyers, Corvettes and Submarines)

Total Top 25 (Aircraft Carriers + Frigates + Destroyers + Corvettes + Submarines)

Year 2016 2015 1 China 175 163 2 USA 162 164 3 Russia 161 146 4 75 76 5 India 66 66 6 Japan 63 61 7 Republic of Korea 57 55 8 Iran 42 41 9 Turkey 37 37 10 France 36 35 11 Italy 30 31 12 UK 30 30 13 Taiwan 29 30 14 Greece 24 25 15 Vietnam 23 19 16 Australia 22 19 17 Egypt 21 19 18 Germany 20 20 19 Algeria 20 13 20 Brazil 19 21 21 19 19 22 Indonesia 18 34 23 Singapore 18 18 24 Canada 17 17 25 Argentina 16 16

Source: Global Firepower – September 2016 Ranking included in the economy of the sea map.

Circumnavigation 74 HELM – PwC Economy of the Sea Barometer (World) Naval security power, piracy and maritime disasters (oil spills)

In 2015, Indonesia is the country with greatest incidence of pirate attacks.

Table 36: Locations of actual and attempted attacks (2010-2015) Locations 2010 2011 2012 2013 2014 2015 Total Indonesia 40 46 81 106 100 108 481 Malaysia 18 16 12 9 24 13 92 South East Asia Singapore Straits 3 11 6 9 8 9 46 Other Asia 9 7 5 4 9 17 51 South China Sea 31 13 2 4 1 0 51 Far East Vietnam 12 8 4 9 7 27 67 Other Far East 1 2 1 0 0 4 8 Bangladesh 23 10 11 12 21 11 88 Indian Sub Continent India 5 6 8 14 13 13 59 Brazil 9 3 1 1 1 0 15 Colombia 3 4 5 7 2 5 26 Ecuador 3 6 4 3 0 0 16 2 1 0 2 1 0 6 South America 5 2 2 0 0 2 11 Peru 10 2 3 4 0 0 19 Venezuela 7 4 0 0 1 1 13 Other South America 1 3 2 1 0 0 7 0 20 2 0 0 0 22 Egypt 2 3 7 7 0 1 20 Guinea 6 5 3 1 0 3 18 Gulf of Adena 53 37 13 6 4 0 113 4 1 5 4 3 1 18 Africa Nigeria 19 10 27 31 18 14 119 Red Seaa 25 39 13 2 4 0 83 Somaliaa 139 160 49 7 3 0 358 0 6 15 7 2 0 30 The Congo 1 3 4 3 7 5 23 Other Africa 10 9 12 11 14 11 67 Rest of the World 4 2 0 0 2 1 9 Total 445 439 297 264 245 246 1,936 Source: ICC International Maritime Bureau - Piracy and Armed Robbery Against Ships All Incidents with “a” above are attributed to Somali pirates

Ranking included in the economy of the sea map.

Circumnavigation 75 HELM – PwC Economy of the Sea Barometer (World) Naval security power, piracy and maritime disasters (oil spills)

Between 2010 and 2015, there was a downward trend of pirate attacks at sea.

Of the 1936 attacks recorded between 2010 and 2015, only 344 did not have more serious consequences. In 1.134 cases, the pirates managed to board ships. In 174 of the attacks. there were abductions of people.

Table 37: Comparisons of the type of attacks (2010 – 2015)

Category 2010 2011 2012 2013 2014 2015 Total Attempted 89 105 67 28 28 27 344 Boarded 196 176 174 202 183 203 1.134 Fired upon 107 113 28 22 13 1 284 Hijack 53 45 28 12 21 15 174 Total 445 439 297 264 245 246 1,936

Source: ICC International Maritime Bureau - Piracy and Armed Robbery Against Ships

Between 2010 and 2015, except 2014, there was a reduction in the level of violence of attacks on ships' crews.

Between 2010 and 2015, about 4.000 people were subjected to maritime piracy attacks, more than 3.500 were taken hostage and 28 were killed.

Table 38: Types of violence to crew (2010 – 2015) Types of Violence 2010 2011 2012 2013 2014 2015 Total Assaulted 6 6 4 0 1 14 31 Hostage 1,174 802 585 304 442 271 3,578 Injured 37 42 28 21 13 14 155 Kidnap/Ransom 27 10 26 36 9 19 127 Killed 8 8 6 1 4 1 28 Missing 0 0 0 1 1 0 2 Threatened 18 27 13 10 9 14 91 Total 1,270 895 662 373 479 333 4,012

Source: ICC International Maritime Bureau - Piracy and Armed Robbery Against Ships

Circumnavigation 76 HELM – PwC Economy of the Sea Barometer (World) Naval security power, piracy and maritime disasters (oil spills)

In 2015,the types of ships that were the target of pirate attacks were transport ships of bulk products and chemicals.

Table 39: Types of vessels attacked (2010-2015)

Type 2010 2011 2012 2013 2014 2015 Total Bulk Carrier 80 100 66 53 55 86 440 Container 74 62 39 30 20 30 255 General Cargo 63 35 15 17 14 15 159 Tanker Chem / 96 100 76 82 86 62 502 Product Tanker Crude Oil 43 61 32 39 24 20 219 Trawler/Fishing 19 11 5 2 3 2 42 Tug 20 32 23 18 7 10 110 Other 50 38 41 23 36 21 209 Total at year end 445 439 297 264 245 246 1,936

Source: ICC International Maritime Bureau - Piracy and Armed Robbery Against Ships

Of the 246 ships attacked in 2015, 4o were sailing under the flag of The Marshall Islands, 38 of Panama and 32 of Singapore.

Table 40: Nationalities of ships attacked (2010-2015)

Flag State 2010 2011 2012 2013 2014 2015 Total Antigua Barbuda 24 16 5 7 5 9 66 Bahamas 10 11 16 7 4 5 53 Hong Kong (SAR) 18 21 17 20 16 19 111 Liberia 57 57 45 43 20 28 250 Malaysia 14 14 12 10 9 12 71 Malta 19 25 8 8 6 11 77 Marshall Islands 36 45 21 31 36 40 209 Panama 82 71 49 32 44 38 316 Singapore 40 32 43 39 32 32 218 Other 145 147 81 67 73 52 565 Total year end 445 439 297 264 245 246 1,936

Source: ICC International Maritime Bureau - Piracy and Armed Robbery Against Ships

Circumnavigation 77 HELM – PwC Economy of the Sea Barometer (World) Naval security power, piracy and maritime disasters (oil spills)

Accidents involving oil spills have been occurring over time, all over the world.

Table 41: Location of major shipping oil spills (Since 1967) Spill size Top 20 Year Location (thousand Shipname tonnes) 1 Atlantic Empress 1979 Off Tobago. West Indies 287 2 ABT Summer 1991 700 nautical miles off Angola 260 3 Castillo de Bellver 1983 Off Saldanha Bay. South Africa 252 4 Amoco Cadiz 1978 Off Brittany. France 223 5 Haven 1991 Genoa. Italy 144

6 Odyssey 1988 700 nautical miles off Nova Scotia. Canada 132

7 Torrey Canyon 1967 Scilly Isles. UK 119 8 Sea Star 1972 Gulf of Oman 115 9 Irenes Serenidade 1980 Navarino Bay. Greece 100 10 Urquiola 1976 La Coruna. Spain 100 11 Hawaiian Patriot 1977 300 nautical miles off Honolulu 95 12 Independenta 1979 Bosphorus. Turkey 94 13 Jakob Maersk 1975 Oporto. Portugal 88 14 Braer 1993 Shetland Islands. UK 85 15 Aegean Sea 1992 La Coruna. Spain 74 16 Sea Empress 1996 Milford Haven. UK 72 120 nautical miles off Atlantic coast of 17 Khark 5 1989 70 18 Nova 1985 Off Kharg Island. Gulf of Iran 70 19 Katina P 1992 Off Maputo. 67 20 Prestige 2002 Off Galicia. Spain 63 Source: ITOPF – Oil Tanker Spill Statistics 2015

Table 42: Other relevant offshore spills

Description Year Location

1 Deepwater Horizon 2010 Mexican Gulf 2 Ixtoc 1 Oil Well 1979 Bay of Campeche. Mexico 3 Nowruz Oil Field 1983 Persian Gulf

Source: The Telegraph

Circumnavigation 78 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 79 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 80 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

Circumnavigation 81 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture Between 2004 and 2014, as the world population has grown, there has been an increase in the consumption of fish and other food products per capita. In 2004, per capita consumption was 16.2 kg, rising to a per capita consumption of 20.1 kg in 2014. This increase in per capita consumption was met by increased production in aquaculture. In 2004, production in onshore and offshore aquaculture reached about 27.8 and 18.1 million tons, respectively, rising to 47.1 and 26.7 million tons in 2014. Fish catches at sea continue to represent the largest contribution to the supply of fish. but have not grown in recent years.

Table 43: World fisheries and aquaculture production and utilization

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(Million tonnes)

Production Inland Capture 8.9 9.7 10.1 10.1 10.3 10.5 11.3 11.1 11.6 11.7 11.9 Aquaculture 27.8 29.6 31.6 29.9 32.4 34.3 36.9 38.6 42.0 44.8 47.1 Total inland 36.7 39.3 41.7 40.0 42.7 44.8 48.1 49.7 53.6 56.5 59.0 Marine Capture 85.7 84.5 81.9 80.7 79.9 79.7 77.9 82.6 79.7 81.0 81.5 Aquaculture 18.1 18.9 20.1 20.0 20.5 21.4 22.2 23.2 24.4 25.5 26.7 Total marine 103.8 103.4 102.0 100.7 100.4 101.1 100.0 105.8 104.1 106.5 108.2 Total capture 94.6 94.2 92.0 90.8 90.1 90.2 89.1 93.7 91.3 92.7 93.4 1 Total aquaculture1 45.9 48.5 51.7 49.9 52.9 55.7 59.0 61.8 66.5 70.3 73.8 TOTAL WORLD 140.5 142.7 143.6 140.7 143.1 145.9 148.1 155.5 157.8 162.9 167.2 FISHERIES 1 UTILIZATION1 Human consumption 104.5 107.1 110.4 117.3 120.9 123.8 128.1 130.8 136.9 141.5 146.3 Non-food uses 36.0 35.6 33.3 23.4 22.2 22.0 20.0 24.7 20.9 21.4 20.9 Population (billions) 6.4 6.5 6.6 6.7 6.8 6.8 6.9 7.0 7.1 7.2 7.3 Per capita food fish supply 16.2 16.4 16.7 17.6 17.9 18.1 18.5 18.6 19.3 19.7 20.1 (kg) 1 Note:Data in this section for 2014 are provisional estimates. Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 18: Total Capture. Total Aquaculture and Total World fisheries in million tonnes

180 160 140 120 100 Total Capture 80 Total Aquaculture 60 Total World Fisheries 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Circumnavigation 82 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

The top ten countries in terms of fishing, led by China with 18.2% of the catch, represent about 60% of the total global fishing.

Table 44: Marine capture fisheries: major producer countries

Weight Variation 2014 2003 2011 2012 2013 2014 Country 2014 2003/2014 Ranking (Million tonnes) (Percentage) (Percentage) 1 China 12.2 13.5 13.9 13.9 14.8 18.2% 21.3% 2 Indonesia 4.3 5.3 5.4 5.6 6.0 7.4% 39.5% 3 USA 4.9 5.1 5.1 5.1 5.0 6.1% 2.0% 4 Russian Federation 3.1 4.0 4.1 4.1 4.0 4.9% 29.0% 5 Japan 4.6 3.7 3.6 3.6 3.6 4.4% -21.7% 6 Peru 6.1 8.2 4.8 5.8 3.5 4.3% -42.6% 7 India 3.0 3.3 3.4 3.4 3.4 4.2% 13.3% 8 Vietnam 1.6 2.3 2.4 2.6 2.7 3.3% 68.8% 9 Myanmar 1.1 2.2 2.3 2.5 2.7 3.3% 145.5% 10 Norway 2.5 2.3 2.1 2.1 2.3 2.8% -8.0% 11 Chile 3.6 3.1 2.6 1.8 2.1 2.7% -38.9% 12 Philippines 2.0 2.2 2.1 2.1 2.1 2.6% 5.0% 13 Republic of Korea 1.6 1.7 1.7 1.6 1.7 2.1% 6.2% 14 Thailand 2.7 1.6 1.6 1.6 1.6 2.0% -40.7% 15 Malaysia 1.3 1.4 1.5 1.3 1.5 1.8% 15.4% 16 Mexico 1.3 1.5 1.5 1.5 1.4 1.7% 7.7% 17 Morocco 0.9 1.0 1.2 1.2 1.4 1.7% 55.6% Total 17 major countries 56.8 62.4 59.3 59.8 59.9 73.5% 5.5% Rest of the world 22.9 20.2 20.4 21.2 21.6 23.5% -5.7% World total 79.7 82.6 79.7 81.0 81.5 100.0% 2.3% Share 17 major countries (%) 71.3 75.5 74.4 73.8 73.5

Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 19: Marine capture fisheries: major producer countries Ranking 16 included in the 14 economy of the 12 sea map. 10 8 6 2003 4 2 2012

Million tonnes Million 0 2013 2014

Circumnavigation 83 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

The Pacific Ocean is where most of the fishing takes place, representing about 58% of the total.

Table 45: Marine capture: major fishing areas Weight Variation 2003 2011 2012 2013 2014 Fishing area name (area 2014 2003/2014 code) (Million Tonnes) (Percentage) (Percentage) Atlantic. Northwest (21) 2.3 2.0 2.0 1.9 1.8 2.2% -21.7% Atlantic. Northeast (27) 10.3 8.0 8.1 8.5 8.7 10.7% -15.5% Atlantic. Western Central (31) 1.8 1.5 1.5 1.3 1.2 1.5% -33.3% Atlantic. Eastern Central (34) 3.6 4.3 4.1 4.2 4.4 5.4% 22.2% Mediterranean and Black Sea 1.5 1.4 1.3 1.2 1.1 1.3% -26.7% (37) Atlantic. Southwest (41) 2.0 1.8 1.9 2.0 2.4 2.9% 20.0% Atlantic. Southeast (47) 1.7 1.3 1.6 1.4 1.6 2.0% -5.9% Indian Ocean. Western (51) 4.4 4.2 4.5 4.6 4.7 5.8% 6.8% Indian Ocean. Eastern (57) 5.3 7.1 7.4 7.6 8.1 9.9% 52.8% Pacific. Northwest (61) 19.9 21.4 21.5 21.3 22.0 27.0% 10.6% Pacific. Northeast (67) 2.9 3.0 2.9 3.2 3.1 3.8% 6.9% Pacific. Western Central (71) 10.8 11.6 12.1 12.3 12.8 15.7% 18.5% Pacific. Eastern Central (77) 1.8 1.9 1.9 2.0 1.9 2.3% 5.6% Pacific. Southwest (81) 0.7 0.6 0.6 0.5 0.5 0.6% -28.6% Pacific. Southeast (87) 10.6 12.3 8.3 8.5 6.9 8.5% -34.9% Arctic and Antarctic areas 0.1 0.2 0.2 0.2 0.3 0.4% 200.0% (18.48.58.88) World total 79.7 82.6 79.7 81.0 81.5 100.0% Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 20: Marine capture: major fishing areas

Arctic and Antarctic areas (18,48,58,88) Pacific, Southeast (87) Pacific, Southwest (81) Pacific, Eastern Central (77) Pacific, Western Central (71) Pacific, Northeast (67) Pacific, Northwest (61) 2014 Indian Ocean, Eastern (57) 2013 Indian Ocean, Western (51) 2012 Atlantic, Southeast (47) Atlantic, Southwest (41) 2003 Mediterranean and Black Sea (37) Atlantic, Eastern Central (34) Atlantic, Western Central (31) Atlantic, Northeast (27) Atlantic, Northwest (21) 0 5 10 15 20 25

Circumnavigation 84 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

The fifteen species most fished represent about 1/3 of all fish caught.

Table 46: Marine capture: major species and genera Weight Variation 2014 FAO English 2003 2011 2012 2013 2014 Scientific name 2014 2003/2014 Ranking name (Million Tonnes) (Percentage) (Percentage) Theragra Alaska pollock (= 1 2.9 3.2 3.3 3.2 3.2 3.9% 10.3% chalcogramma walleye pollock) Anchoveta (= 2 Engraulis ringens 6.2 8.3 4.7 5.7 3.1 3.8% -50.0% Peruvian anchovy) Katsuwonus 3 Skipjack tuna 2.2 2.6 2.8 3.0 3.1 3.8% 40.9% Pelamis 4 Sardinella spp. Sardinellas nei 2.1 2.3 2.3 2.3 2.3 2.8% 9.5% Scomber 5 Chub mackerel 1.8 1.7 1.6 1.7 1.8 2.2% 0.0% Japonicus 6 Clupea harengus Atlantic herring 2.0 1.8 1.8 1.8 1.6 1.9% -20.0% Thunnus 7 Yellowfin tuna 1.5 1.2 1.4 1.3 1.5 1.8% 0.0% Albacares 8 Decapterus spp. Scads 1.4 1.4 1.4 1.4 1.5 1.8% 7.1% 9 Scomber scombrus Atlantic mackerel 0.7 0.9 0.9 1.0 1.4 1.7% 100.0% Engraulis 10 Japanese anchovy 1.9 1.3 1.3 1.3 1.4 1.7% -26.3% Japonicus 11 Gadus morhua Atlantic cod 0.8 1.1 1.1 1.4 1.4 1.7% 75.0% Trichiurus 12 Largehead hairtail 1.2 1.3 1.2 1.3 1.3 1.6% 8.3% Lepturus Sardina European pilchard 13 1.1 1.0 1.0 1.0 1.2 1.5% 9.1% Pilchardus (= sardine) 14 Dosidicus gigas Jumbo flying squid 0.4 0.9 1.0 0.8 1.2 1.5% 200.0% Micromesistius 15 Blue whiting - - - 0.6 1.2 1.5% 100.0% poutassou Total 15 major species and genera 26.2 29.0 25.8 27.8 27.2 33.3% 3.8% Rest of the world 53.5 53.6 53.9 53.2 54.4 66.7% 1.7% World total 79.7 82.6 79.7 81.0 81.6 100.0% 2.4% Share 15 major species and genera (%) 32.9 35.1 32.4 34.3 33.3

Note: nei = not elsewhere included. Catches for single species have been added to those reported for the genus. Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 21: Marine capture: major species and genera

8 6 2003 4 2012 2 2013 0

Million tonnes Million 2014

Circumnavigation 85 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

Worldwide, the inland freshwater fish catch is also led by China.

Table 47: Inland waters capture: major producer countries Weight Variation 2014 2003 2011 2012 2013 2014 2014 2003/2014 Rankin Country (Percentag (Percentage g (Million Tonnes) e) ) 1 China 2.1 2.2 2.3 2.3 2.3 19.3% 9.5% 2 Myanmar 0.3 1.2 1.2 1.3 1.4 11.8% 366.7% 3 India 0.8 1.1 1.5 1.2 1.3 10.9% 62.5% 4 Bangladesh 0.7 1.1 1.0 1.0 1.0 8.4% 42.9% 5 0.3 0.4 0.4 0.5 0.5 4.2% 66.7% 6 0.2 0.4 0.4 0.4 0.5 4.2% 150.0% 7 Indonesia 0.3 0.4 0.4 0.4 0.4 3.4% 33.3% 8 Nigeria 0.2 0.3 0.3 0.3 0.4 3.4% 100.0% United Republic of 9 0.3 0.3 0.3 0.3 0.3 2.5% 0.0% 10 Egypt 0.3 0.3 0.2 0.3 0.2 1.7% -33.3% Total 10 major countries 5.5 7.7 8.0 8.0 8.3 69.7% 50.9% Rest of the world 3.1 3.4 3.6 3.7 3.6 30.3% 16.1% World total 8.6 11.1 11.6 11.7 11.9 100.0% 38.4% Share 10 major countries (%) 64.0% 69.4% 69.0% 68.4% 69.7% Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 22: Inland waters capture: major producer countries in 2014 (in percentage of the total)

China

Myanmar

India

Bangladesh

Cambodia

Uganda

Indonesia

Nigeria

United Republic of Tanzania

Egypt

Circumnavigation 86 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

In 2014, 88.91% of world aquaculture was in Asia, and was responsible for the significant growth of aquaculture globally.

Table 48: Aquaculture production by region: quantity of world total production Weight Weight Variation Selected groups and 2000 2010 2012 2014 2012 2014 2000/2014 countries (Million Tonnes) (Percentage) (Percentage) Africa 0.400 1.286 1.484 1.711 2.2% 2.3% 328% North Africa (excluding 0.005 0.010 0.014 0.017 0.0% 0.0% Egypt) 240% Sub-Saharan Africa 0.029 0.156 0.199 0.244 0.3% 0.3% (excluding Nigeria) 741% Americas 1.423 2.514 2.988 3.352 4.5% 4.5% 136% Caribbean 0.040 0.037 0.029 0.033 0.0% 0.1% -17.5% Latin America 0.408 1.117 1.285 1.544 1.9% 2.1% (excluding Chile) 278% North America 0.585 0.659 0.604 0.560 0.9% 0.8% -4% Asia 28.423 52.439 58.955 65.602 88.7% 88.9% 131% China 21.522 36.734 41.108 45.469 61.9% 61.6% 111% Central Asia 0.007 0.008 0.016 0.026 0.0% 0.0% 271% Eastern Asia (excluding 1.372 1.573 1.533 1.545 2.3% 2.1% China) 13% Europe 2.051 2.544 2.852 2.930 4.3% 4.0% 43% Northern Europe 0.309 0.364 0.391 0.403 0.6% 0.6% (excluding Norway) 30% Southern Europe 0.641 0.574 0.579 0.595 0.9% 0.8% -7% Oceania 0.122 0.190 0.186 0.189 0.3% 0.3% 55% World 32.418 58.973 66.466 73.784 100.0% 100.0% 128%

Notes: Data exclude aquatic plants and non-food products. Data for 2014 for some countries are provisional and subject to revisions. For the purpose of this table. Cyprus. classified as part of Asia by FAO. is included under Europe as one of the 28 members of European Union (Member Organization). Source: FAO - The State of the World Fisheries and Aquaculture in 2016 Figure 23: Aquaculture production by region: Figure 24: Aquaculture production by region: quantity of world total production (in million quantity of world total production (weight in tonnes), 2000, 2012 and 2014 percentage), 2014

70,000 60,000 2000 Africa 50,000 2012 40,000 Americas 30,000 2014 20,000 Asia 10,000 0 Europe Africa Americas Asia Europe Oceania Oceania

Circumnavigation 87 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

Onshore aquaculture is the main contributor to the growth of aquaculture and China represents 61.7% of global aquaculture production.

Table 49: Farmed food fish production by top 15 producers and main groups of farmed species in 2014 Finfish a Share in Inland Other speciesª National total Producer Mariculture world total Aquaculture (Million Tonnes) (Million Tonnes) (Percentage) China 26.03 1.2 18.3 45.5 61.7% India 4.4 0.1 0.4 4.9 6.6% Indonesia 2.9 0.8 0.6 4.3 5.8% Vietnam 2.5 0.2 0.7 3.3 4.6% Bangladesh 1.73 0.1 0.1 2.0 2.7% Norway 0.0 1.3 - 1.3 1.8% Chile 0.1 0.9 0.2 1.2 1.6% Egypt 1.1 - - 1.1 1.5% Myanmar 0.9 0.0 - 1.0 1.4% Thailand 0.4 0.02 0.5 0.9 1.2% Philippines 0.3 0.4 0.1 0.8 1.1% Japan 0.0 0.2 0.5 0.7 0.9% Brazil 0.5 - 0.09 0.6 0.8% Republic of Korea 0.0 0.08 0.4 0.5 0.7% Malaysia 0.1 0.06 0.1 0.3 0.4% Top 15 subtotal 41.01 5.34 22.05 68.50 92.8% Rest of the world 2.59 0.96 1.89 5.28 7.16% World 43.60 6.30 23.90 73.78 100.0%

Note: The symbol “…” means the production data are not available or the production volume is regarded as negligibly low. a Other species includes crustaceans. molluscs and other species. Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 25: Farmed food fish production share of the top 15 producers in 2014 (in percentage of the total)

China India Indonesia Vietnam Ranking Bangladesh Norway included in the Chile economy of the Egypt sea map. Myanmar Thailand Philippines Japan Brazil Republic of Korea Malaysia Rest of the world

Circumnavigation 88 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

Asia is responsible for the production of more than 90% of aquaculture algae.

Table 50: Aquaculture production of farmed aquatic plants in the world and selected major producers Weight Variation 2000 2010 2012 2014 2014 2000/2014 (Million Tonnes) (Percentage) (Percentage) China 6.94 11.09 12.83 13.3 48.7% 91.6% Indonesia 0.21 3.92 6.51 10.07 36.9% 4695% Philippines 0.71 1.80 1.75 1.5 5.5% 111.3% Republic of Korea 0.37 0.90 1.02 1.09 4.0% 195% Japan 0.53 0.43 0.44 0.4 1.5% -24.5% Malaysia 0.02 0.21 0.33 0.2 0.73% 900% Subtotal 8.78 18.35 22.88 26.56 97.3% 202.5% Rest of the world 0.53 0.66 0.9 0.74 2.71% 39.6% World 9.31 19.01 23.78 27.30 100.0% 193.2%

Notes: The Democratic People’s Republic of Korea and Vietnam are among the major producers of farmed seaweeds. They are not listed separately in this table due to the unavailability of reliable statistics data. Instead. they are included in “Rest of world”. ... = data not available. Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 26: Aquaculture production of farmed Figure 27: Aquaculture production of farmed aquatic plants in the world per country (in million aquatic plants in the world and selected major tonnes). 2000 and 2014 producers (Weight in percentage). 2014

14 China

12 2000 Indonesia 10 2012 8 Philippines 2014 6 Republic of Korea 4

2 Japan

0 Malaysia

Rest of the world

Circumnavigation 89 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

In 2014, Asian fishermen and aquaculture producers represented 84% of employment in this sector. In addition to the growth registered in Asia (20.4%) between 2000 and 2014, there was growth in Africa (35.9%), in Latin America (37.8%) and a decrease in Europe (-47%).

Table 51: World fishers and fish farmers by region Weight Variation 2000 2010 2012 2014 2014 2000/2014 (Thousands) (Percentage) (Percentage) Africa 4,175 5,027 5,885 5,674 10.0% 35.9% Asia 39,646 49,345 49,040 47,730 84.3% 20.4% Europe 779 662 647 413 0.7% -47.0% Latin America and the 1,774 2,185 2,251 2,444 4.3% 37.8% Caribbean North America 346 324 323 325 0.6% -6.1% Oceania 126 124 127 46 0.1% -63.5% World 46,845 57,667 58,272 56,632 100.0% 20.9% Of which. fish farmers Africa 91 231 298 284 1.5% 212% Asia 12,211 17,915 18,175 18,032 96.2% 47.7% Europe 103 102 103 66 0.4% -35.9% Latin America and the 214 248 269 356 1.9% 66.4% Caribbean North America 6 9 9 9 0.0% 50.0% Oceania 5 5 6 6 0.0% 20.0% World 12,632 18,512 18,861 18,753 100.0% 48.5%

Notes: Some statistics provided to FAO by national offices. in particular those for 2011–2012. are provisional and may be amended in future editions. and in other FAO publications. Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Figure 28: World fishers and fish farmers by region

Africa

Asia

Europe

Latin America and the Caribbean North America

Oceania

Circumnavigation 90 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

In 2014, 80% of motorised fishing ships were in Asia.

Figure 29: Distribution of motorized fishing vessels by region in 2014

Africa 6% North America 3%

Latin America and the Caribbean 7%

Europe 3%

Pacific and Oceania 1%

Asia 80%

Fonte: FAO - The State of the World Fisheries and Aquaculture in 2016

Circumnavigation 91 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

From 1974 to 2013, there has been a significant increase in the pressure on fish stocks, causing overfishing - or at the limit of what is acceptable - of a number of species.

Figure 30: Global trends in the state of world marine fish stocks. 1974–2013

Percentage of stocks assessed

100

90 Overfished 80

70

60

50 Fully fished

40

30

20 Underfished 10

0 74 78 82 86 90 94 98 02 06 10 13

At biologically unsustainable levels Within biologically sustainable levels

Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Circumnavigation 92 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

China is currently the greatest exporter of food products from the sea, while EUA is the most importer country.

Table 52: Top ten exporters and importers of fish and fishery products 2004 2014 Annual Growth (US$ millions) (%) Exporters China 6,637 20,980 12.2% Norway 4,132 10,803 10.1% Thailand 4,060 6,565 4.9% Vietnam 2,444 8,029 12.6% USA 3,851 6,144 4.8% Chile 2,501 5,854 8.9% Canada 3,487 4,503 2.6% Denmark 3,566 4,765 2.9% India 1,409 5,604 14.8% Netherlands 2,452 4,555 6.4% Top ten subtotal 34,539 77,801 8.5% Rest of the World total 37,330 70,346 6.5% World total 71,869 148,147 7.5% Importers USA 11,964 20,317 5.4% Japan 14,560 14,844 0.2% China 3,126 8,501 10.5% Spain 5,222 7,051 3.0% France 4,176 6,670 4.8% Germany 2,805 6,205 8.3% Italy 3,904 6,166 4.7% Sweden 1,301 4,783 13.9% UK 2,812 4,638 5.1% Republic of Korea 2,250 4,271 6.6% Top ten subtotal 52,119 83,447 4.8% Rest of the world total 23,583 57,169 9.3% World total 75,702 140,616 6.4%

Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Circumnavigation 93 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

Africa and Latin America are the regions of the world with the lowest per capita consumption of fish and other sea products.

Table 53: Per capita food fish supply by continent and economic grouping in 2010 and 2013 Per capita sea Per capita sea food supply food supply (2010) (2013) (kg/year) (kg/year) World 18.9 19.7 World (excluding China) 15.4 15.3 Africa 9.7 9.8 North America 21.8 21.4

Latin America and the Caribbean 9.7 9.4

Asia 21.6 23.0 Europe 22.0 22.2 Oceania 25.4 24.8 Industrialized countries 27.4 26.8 Other developed countries 13.5 13.9 Least-developed countries 11.5 12.4 Other developing countries 18.9 20.0

LIFDCs - Low-income food- 10.9 7.6 deficit countries.

Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Circumnavigation 94 HELM – PwC Economy of the Sea Barometer (World) Fishing and aquaculture

Since 1970, aquaculture has increased its relative importance in the supply of food from the sea, reaching a similar weight to the fisheries.

Figura 31: Relative contribution of aquaculture and capture fisheries to fish for human consumption

12 Capture fisheries Aquaculture

10

8

6 (KG/Capita)

4 Fish Fish forhuman comsumption

2

0 1954 1964 1974 1984 1994 2004 2014

Source: FAO - The State of the World Fisheries and Aquaculture in 2016

Circum-navegação 95 LEME – Barómetro PwC da Economia do Mar (Mundo) Circumnavigation 96 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture

Circumnavigation 97 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture

Gross revenue associated with the cruise ship activity has been increasing.

Figure 32: Revenue of the cruise industry worldwide from 2008 to 2015 (in billion U.S. dollars)

45

39.60 40 37.10 36.27 34.54 35

29.40 30 27.56 26.85 24.93 25

20

15 Revenue in billion U.S. dollars U.S. billion in Revenue 10

5

0 a 2008 2009 2010 2011 2012 2013 2014 2015

Source: Cruise industry - Statista Dossier a Forecast

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North America and Europe are the most important markets for cruise ships.

Figure 33: Market size of the global cruise industry in 2014, by region (in billion U.S. dollars)

Market size in billion U.S. dollars 0 5 10 15 20 25

North America 21.21

Europe 11.59

Asia 1.80

South America 1.27

Australia and New Zealand 1.13

Middle East and Africa 0.07

Source: Cruise industry - Statista Dossier

Circumnavigation 99 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture

The Caribbean still holds the largest market share in the business of cruise ships, closely followed by the Mediterranean and the rest of Europe.

Figure 34: Global cruise industry deployment market share in 2016, by region

40%

35% 33.7%

30%

25%

20% 18.7%

15% 13.8% Market share Market 11.7% 9.2% 10% 6.1% 4.1% 5% 2.7%

0%

Source: Cruise industry - Statista Dossier

Ranking included in the economy of the sea map.

Circumnavigation 100 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture

The number of people participating in cruise travel has increased.

Figure 35: Number of cruise passengers worldwide from 2005 to 2015 (in millions)

25

21.31 23.10 20.49 20.90 22.04 20 19.07 17.59 15.87 16.29 15.11 14.32 15

10

Number of passengers in millions in passengers of Number 5

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Cruise industry - Statista Dossier

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The largest cruise consumers are North Americans, immediately followed by the Germans and the British.

Figure 36: Leading passenger source countries in the global cruise industry in 2014

Global passenger share 0% 10% 20% 30% 40% 50% 60%

USA 51.0%

Germany 8.0%

United Kingdom 7.3%

Australia 4.5%

Italy 3.8%

Canada 3.6%

China 3.2%

France 2.7%

Spain 2.0%

Norway 0.8%

Source: Cruise industry - Statista Dossier

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The cruise industry has been increasing its overall capacity.

Figure 37: Passenger capacity of the global cruise industry from 2011 to 2015 (in thousands)

500 445 450 428 415 399 400 387

350

300

250

200

150

Passenger capacity in thousands in capacity Passenger 100

50

0 2011 2012 2013 2014 2015

Source: Cruise industry - Statista Dossier

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By the end of 2014, in terms of business volume, the three biggest companies involved in cruise line activity have their headquarters in Miami (USA). The fourth largest company is headquartered in the Switzerland.

Figure 38: Leading cruise line companies headquarters location worldwide in 2014, by revenue (in billion U.S. dollars)

Revenue in billion U.S. dollars 0 2 4 6 8 10 12 14 16 18

Miami, USA 15.88

Miami, USA 8.07

Miami, USA 3.13

Geneva, CH a 1.65

Miami, USA a 0.94

Luton, UK a 0.71

Kowloon, HK a 0.71

a / b Tromsø, Norway 0.61

Los Angeles, USA a 0.61

Monaco a 0.53

a Via Cruise Market Watch b Figure was converted from Norwegian krone to U.S. dollars (exchange rate of 1 krone = 0.17 U.S. dollars was used). Source: Cruise industry - Statista Dossier

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In 2015, in a comparison of the "accommodation" on cruises, the ranking of the world's largest companies are headquartered in the US, Italy and Switzerland.

Figure 39: Forecast capacity passenger capacity of the cruise industry worldwide in 2015. by cruise line.

Capacidade de Passageiros 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Miami, EUA 68,478

Miami, EUA 62,368

Los Angeles, EUA 40,996

Miami, EUA 38,546

Genova, IT 37,220

Geneva, CH 30,174

Miami, EUA 24,320

Seattle, EUA 23,126

Source: Cruise industry - Statista Dossier

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The USA, Australia, New Zealand, Italy, France and the UK are the countries of reference in terms of the recreational boating and marinas business.

According to six 2015 edition of Pleasure Boat International Resource Guide Published by the National USA Marine Manufacturers Association, the USA exports of recreational marine craft and accessories totaled USD 2.1 billion in 2014. The U.S. recreational marine market makes up approximately 75 percent of the entire world market for these products.

Table 54: US Exports Top 20 Markets by FAS Value Recreational Marine Craft. Parts. and Accessories. as defined by the Harmonized Tariff System.

Top 20 Markets by FAS Value (Annual + Year-To-Date Data from January–October. USD Thousands) Country 2011 2012 2013 2014 2014 YTD 2015 YTD Variation YTD 2014–15 Canada 642,270 694,383 716,112 654,230 385,388 327,208 -15.1% Mexico 84,623 103,060 104,289 167,775 75,160 91,559 21.8% Australia 247,447 196,885 197,616 152,448 62,758 53,238 -15.2% Belgium 92,978 106,304 114,589 107,151 62,150 88,786 42.9% Spain 41,467 29,664 44,514 74,878 63,508 52,465 -17.4% Italy 71,652 53,874 53,076 74,791 64,775 57,376 -11.4% Brazil 72,565 85,103 68,894 56,331 28,392 15,325 -46.0% Japan 35,273 61,114 51,271 50,009 25,701 31,288 21.7% United Arab Emirates 29,916 45,819 35,528 48,624 27,034 19,266 -28.7% Germany 51,268 50,209 43,038 45,556 26,969 22,791 -15.5% 33,581 42,277 24,122 44,932 4,034 3,267 -19.0% China 37,133 36,161 40,710 36,435 17,881 23,647 32.2% Netherlands 57,193 35,943 32,662 33,731 20,338 12,498 -38.5% France 29,383 26,671 27,200 29,055 18,479 17,809 -3.6% Colombia 26,038 14,597 20,989 28,692 9,023 13,048 44.6% United Kingdom 38,709 29,585 21,790 27,387 16,981 15,629 -8.0% New Zealand 24,163 35,848 31,585 24,577 8,118 8,624 6.2% Russia 17,985 30,829 25,340 23,275 19,659 7,078 -64.0% Norway 16,245 15,413 13,701 21,000 13,712 13,015 -5.1% Korea 11,425 14,191 13,881 19,506 10,155 10,193 0.4% Subtotal 1,661,314 1,707,930 1,680,908 1,720,381 960,215 884,110 -7.9% All others 538,192 566,463 486,748 428,093 215,666 208,827 -3.2% World Total 2,199,506 2,274,393 2,167,656 2,148,475 1,175,881 1,092,937 -7.1%

Source: Pleasure boat International Resource Guide. A Reference for U.S. Exporters. 2016 Edition Circumnavigation 106 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture

USA marina industry According to the National Maritime Manufacturers Association (NMMA), there are more than 10.000 marinas in the United States of America. In the state of Florida alone there are more than 2.200 marinas, which is a number that is higher than the number of marinas in several other well-known recreational boat countries. Nationwide, the number of berths available in the marina industry is estimated to be over 1.1 million. The marina industry is a sound contributor to the US employment statistics, it is believed that for each 100 berths there are 3 jobs created, which results in a total of 32.000 full-time workers in the whole country. (In marinamanagement – December 2001)

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The Yacht Harbour Association is a leading association in the UK and abroad in the marinas business. this association has an accreditation process.

Table 55: Top countries with five and four gold anchor marinas (2016)

Number of five gold Number of four gold Country Country anchor marinas anchor marinas United Kingdoma 49 United Kingdom 26 Turkey 11 France 3 Portugal 6 Belgium 2 Netherlands 4 Italy 2 United Arab Emirates 4 Netherlands 1 Belgium 3 Ireland 3 Italy 2 Croatia 2 France 2 Spain 1 Singapore 1 Malta 1 Montenegro 1 Greece 1 Qatar 1 Thailand 1 China 1 Hong Kong 1 Mexico 1 Cyprus 1 US Virgin Islands 1 Malaysia 1 West Indies 1

Source: Yacht Harbour Association. September 2016 a Includes Jersey and .

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In the ranking of 5 best aquariums in the world, three aquariums are located in the United States, one in Portugal and one in Spain.

Table 56: Top 25 Best Aquarium of the World

Aquarium Location Ranking 2015 Oceanário de Lisboa Lisbon - Portugal 1º Georgia Aquarium Atlanta – USA 2º Monterey Bay Aquarium California – USA 3º Oceanografic Valencia – Spain 4º Ripley's Aquarium of the Smokies Gatlinburg – USA 5º Ripley's Aquarium of Canada Toronto – Canada 6º Aquaworld Aquarium & Reptile Rescue Centre Hersonissos – Greece 7º Tennessee Aquarium Chattanooga – USA 8º Okinawa Churaumi Aquarium Motobu-cho – Japan 9º Vancouver Aquarium Vancouver – Canada 10º Mundomar Benidorm – Spain 11º S.E.A. Aquarium Sentosa Island – Singapore 12º Genoa Aquarium Genoa – Italy 13º Parque Explora Medellin – Colombia 14º Mote Marine Laboratory and Aquarium Sarasota – USA 15º Two Oceans Aquarium Cape Town Central - South Africa 16º Aquario Vasco da Gama Lisbon – Portugal 17º Shedd Aquarium Chicago – USA 18º National Aquarium. Baltimore Baltimore – USA 19º Dallas World Aquarium Dallas – USA 20º Aquarium La Rochelle La Rochelle – France 21º Voronezh Oceanarium Voronezh – Russia 22º Cretaquarium Thalassocosmos Heraklion – Greece 23º Dubai Aquarium & Underwater Zoo Dubai - United Arab Emirates 24º Marine Habitat at Atlantis Paradise Island - Bahamas 25º Source: TripAdvisor. September 2015

Circumnavigation 109 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture Europe remains the continent with more medals in canoeing, Germany being the country that leads with 32 medals. Table 57: Top 15 countries with gold. silver and bronze medals in canoeing (sum of last four Olympic Games)

Athens London Country Medals Beijing 2008 Rio 2016 Total 2004 2012 Table 57: Top 15 countries with gold. silver and bronze medals in canoeing Gold 4 3 3 4 Germany(sum of last three OlympicSilver Games) 4 2 2 2 32 Bronze 1 3 3 1 Gold 3 2 3 3 Silver 1 1 2 0 19 Bronze 2 1 1 0 Gold 0 1 2 2 United Silver 1 1 1 2 14 Kingdom Bronze 2 1 1 0 Gold 2 3 0 1 Silver 1 1 0 2 13 Bronze 1 0 2 0 Gold 1 1 0 3 Spain Silver 1 2 2 0 12 Bronze 0 0 1 1 Gold 0 1 1 0 Australia Silver 2 1 1 0 11 Bronze 0 3 0 2 Gold 0 1 1 0 Russia Silver 1 1 0 0 10 Bronze 2 1 2 1 Gold 2 0 2 1 France Silver 0 1 0 1 10 Bronze 1 1 0 1 Gold 1 0 0 0 Canada Silver 0 1 1 0 8 Bronze 2 1 2 0 Gold 0 2 0 0 Silver 0 0 2 0 8 Bronze 1 1 1 1 Gold 0 1 1 1 Ukraine Silver 0 0 2 0 8 Bronze 1 1 0 1 Gold 0 0 0 0 Czech Silver 0 1 1 1 7 Republic Bronze 1 0 1 2 Gold 0 0 1 0 Italy Silver 2 1 0 0 5 Bronze 0 1 0 0 Gold 0 0 0 0 Poland Silver 0 1 0 1 5 Bronze 1 0 1 1 Gold 1 0 1 0 Norway Silver 0 1 0 0 4 Bronze 1 0 0 0 Note: These results include slalom canoeing and sprint canoeing Source: Graphic of self-elaboration based on the portals data of the Olympic Games.

Circumnavigation 110 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture In sailing, while European countries, led by the UK. continue well classified, winning 19 medals at the last four Olympic Games, Australia appears in second place in the ranking with 11 medals. Table 58: Top 15 countries with gold. silver and bronze medals in sailing (sum of last four Olympic Games) Athens London Country Medals Beijing 2008 Rio 2016 Total 2004 2012 Gold 2 4 1 2 United Kingdom Silver 1 1 4 1 19 Bronze 2 1 0 0 Gold 0 2 3 1 Australia Silver 0 1 1 3 11 Bronze 0 0 0 0 Gold 1 0 0 1 France Silver 0 1 0 0 9 Bronze 1 2 1 2 Gold 1 1 2 0 Spain Silver 2 1 0 0 7 Bronze 0 0 0 0 Gold 0 0 1 2 Netherlands Silver 0 2 1 0 7 Bronze 0 0 1 0 Gold 0 1 0 0 Denmark Silver 0 0 1 0 7 Bronze 2 0 1 2 Gold 0 1 1 1 New Zealand Silver 0 0 1 2 7 Bronze 0 0 0 1 Gold 2 0 0 1 Brazil Silver 0 1 0 0 6 Bronze 0 1 1 0 Gold 1 1 0 0 USA Silver 1 1 0 0 5 Bronze 0 0 0 1 Gold 0 1 1 0 China Silver 1 0 0 1 5 Bronze 0 1 0 0 Gold 0 0 1 0 Sweden Silver 0 0 0 0 4 Bronze 1 1 1 0 Gold 1 0 0 0 Greece Silver 1 0 0 0 4 Bronze 0 1 0 1 Gold 0 0 0 1 Argentina Silver 0 0 0 0 4 Bronze 1 1 1 0 Gold 0 0 0 1 Croatia Silver 0 0 0 1 2 Bronze 0 0 0 0 Gold 0 0 0 0 Poland Silver 0 0 0 0 3 Bronze 1 0 2 0

Source: Graphic of self-elaboration based on the portals data of the Olympic Games. Ranking included in the economy of the sea Circumnavigation map. 111 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture

In rowing. the UK leads with 24 medals, followed by Australia (15) and New Zealand and Germany (12 both) Table 59: Top 15 countries with gold. silver and bronze medals in rowing (sum of last four Olympic Games) Athens London Country Medals Beijing 2008 Rio 2016 Total 2004 2012 Gold 1 2 4 3 United Kingdom Silver 2 2 2 2 24 Bronze 1 2 3 0 Gold 1 2 0 1 Australia Silver 1 1 3 2 15 Bronze 2 0 2 0 Gold 1 1 3 2 New Zealand Silver 0 0 0 1 12 Bronze 0 2 2 0 Gold 2 0 2 2 Germany Silver 2 1 1 1 12 Bronze 0 1 0 0 Gold 1 1 1 1 USA Silver 1 1 0 1 10 Bronze 0 1 2 0 Gold 0 1 0 1 Netherlands Silver 1 1 0 1 9 Bronze 2 0 1 1 Gold 0 1 0 0 Canada Silver 1 1 2 1 8 Bronze 0 2 0 0 Gold 1 1 1 0 Denmark Silver 0 0 1 1 8 Bronze 0 1 1 1 Gold 1 0 0 1 France Silver 1 0 1 0 7 Bronze 0 2 0 1 Gold 0 0 0 0 Italy Silver 0 1 1 0 7 Bronze 3 0 0 2 Gold 3 1 0 0 Romania Silver 0 0 0 0 6 Bronze 0 1 0 1 Gold 1 1 0 1 Poland Silver 0 1 0 0 6 Bronze 0 0 1 1 Gold 0 0 1 0 Silver 1 1 1 0 5 Bronze 0 0 0 1 Gold 0 1 0 0 China Silver 0 1 1 0 5 Bronze 0 0 0 2 Gold 0 0 0 0 Belarus Silver 1 0 0 0 4 Bronze 1 2 0 0 Source: Graphic of self-elaboration based on the portals data of the Olympic Games Circumnavigation 112 HELM – PwC Economy of the Sea Barometer (World) Entertainment, sports, tourism and culture

In surfing, Australia and USA have been consistently leading in recent years.

Table 60: Top countries with first, second and third places in surf (sum of last three World Surf League championships)

Country Positions 2012 2013 2014 2015 2016 Total First 2 1 1 0 1 Australia Second 1 1 2 1 1 7 Third 1 2 0 1 0 First 0 1 0 1 1 USA Second 1 1 0 1 1 7 Third 1 0 2 0 1 First 0 0 1 1 0 Brazil Second 0 0 0 0 0 4 Third 0 0 0 1 1

Note: includes men and women leagues Source: World Surf League

Circumnavigation 113 HELM – PwC Economy of the Sea Barometer (World) Circumnavigation 114 HELM – PwC Economy of the Sea Barometer (World) Economy of the sea map

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Circumnavigation 118 HELM – PwC Economy of the Sea Barometer (World) List of Tables, Figures and Acronyms

Circumnavigation 119 HELM – PwC Economy of the Sea Barometer (World) List of Tables, Figures and Acronyms

Tables Page

Table 1: Top 25 Exclusive Economic Zones in (in millions of square kilometers). 2015 26

Table 2: World GDP growth. 2006-2015 (Annual percentage change) 27

Table 3: Growth in the volume of merchandise trade. 2010-2014 (Annual percentage change) 30

Table 4: International seaborne trade. selected years (Millions of tons loaded) 31

Table 5: World seaborne trade in 2006-2014. by type of cargo. country group and region 32 (Millions of tons) Table 6: Major producers and consumers of oil and natural gas. 2014 (Percentage world market 33 share)

Table 7: Distribution of global containerized trade by route. 2011-2014 (Millions of TEUs) 35

Table 8: Some major dry bulks and steel: Main producers. users. exporters and importers. 2014 36 (Percentage world market share) Table 9: World fleet by principal vessel types. 1980-2015 (Beginning-of-year figures. percentage 37 share of dwt)

Table 10: Ownership of the world fleet. as of 1 January 2015 (Dwt and No of ships) 38

Table 11: The 20 leading liner companies (headquarters' country). 1 January 2015 (Number of 39 ships and total shipboard capacity deployed. in TEUs. ranked by TEU)

Table 12: The 20 flags of registration with the largest registered fleets. as of 1 January 2015 (Dwt) 40

Table 13: Distribution of dwt capacity of vessel types. by country group of registration. January 42 2015 (Beginning-of-year figures. per cent of dwt)

Table 14: Container freight markets and rates 43

Table 15: Growth of demand and supply in container shipping. 2000-2015 (Annual growth rates) 44

Table 16: Top 20 container terminals and their throughput for 2011. 2012. 2013 and 2014 46 (Million TEUs and percentage change) Table 17: World’s leading ports by productivity. 2014 (container moves per ship. per hour on all 47 vessel sizes and percentage increase)

Table 18: Summary of activity in World Shipyards (Thousands of CGT) 50

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Tables Page

Table 19: Summary of activity in Chinese shipyards (Thousands of CGT) 51

Table 20: Summary of activity in South Korean shipyards (Thousands of CGT) 52

Table 21: Summary of activity of Japanese shipyards (Thousands of CGT) 53

Table 22: Summary of activity of EU28+ Norway shipyards (Thousands of CGT) 54

Table 23: Orderbook by Ship Types - 31/12/2015 55

Table 24: Orderbook by Country - 31/12/2015 56

Table 25: New Orders by Ship types 2015 57

Table 26: New Orders by Country 2015 58

Table 27: Completions by Ship types 2015 59

Table 28: Completions by Countries 2015 60

Table 29: Tonnage reported sold for demolition. major vessel types and countries where 62 demolished. 2014 (Thousands of GT)

Table 30: Total onshore and offshore proved reserves of Oil by country 66

Table 31: Total proved reserves of natural gas by country 67

Table 32: Evolution of the Brent's price 68

Table 33: Offshore Oil & Gas Production (Million bbl) 69

Table 34: Global cumulative offshore wind capacity in 2015 70

Table 35: Total Naval Ship Power by Countries. 2015 (Sum of the number Aircraft Carriers. 74 Frigates. Destroyers. Corvettes and Submarines)

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Tables Page

Table 36: Locations of actual and attempted attacks (2010-2014) 75

Table 37: Comparisons of the type of attacks (2010 – 2014) 76

Table 38: Types of violence to crew (2010 – 2014) 76

Table 39: Types of vessels attacked (2010-2014) 77

Table 40: Nationalities of ships attacked (2010-2014) 77

Table 41: Location of major shipping oil spills (Since 1967) 78

Table 42: Other relevant offshore spills 78

Table 43: World fisheries and aquaculture production and utilization 82

Table 44: Marine capture fisheries: major producer countries 83

Table 45: Marine capture: major fishing areas 84

Table 46: Marine capture: major species and genera 85

Table 47: Inland waters capture: major producer countries 86

Table 48: Aquaculture production by region: quantity of world total production 87

Table 49: Farmed food fish production by top 15 producers and main groups of farmed species in 88 2014 Table 50: Aquaculture production of farmed aquatic plants in the world and selected major 89 producers

Table 51: World fishers and fish farmers by region 90

Table 52: Top ten exporters and importers of fish and fishery products 93

Table 53: Per capita food fish supply by continent and economic grouping in 2010 and 2013 94

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Tables Page

Table 54: US Export - Top 20 markets by FAS Value 106 Recreational Marine Craft. Parts. and Accessories. as defined by the Harmonized Tariff System.

Table 55: Top countries with five and four gold anchor marinas (2016) 108

Table 56: Top 25 Best Aquarium of the World 109

Table 57: Top 15 countries with gold. silver and bronze medals in canoeing 110 (sum of last four Olympic Games) Table 58: Top 15 countries with gold. silver and bronze medals in sailing 111 (sum of last four Olympic Games) Table 59: Top 15 countries with gold. silver and bronze medals in rowing 112 (sum of last four Olympic Games) Table 60: Top countries with first. second and third places in surf (sum of last three World Surf 113 League championships)

Circumnavigation 123 HELM – PwC Economy of the Sea Barometer (World) List of Tables, Figures and Acronyms

Figures Page

Figure 1: International seaborne trade. selected years (Millions of tons loaded) 31

Figure 2: Global containerized trade. 1996-2015 (Millions of TEUs and percentage annual 34 change)

Figure 3: Distribution of global containerized trade by route. 2011-2014 (Millions of TEUs) 35

Figure 4: World fleet by principal vessel types. 1980-2015 (Beginning-of-year figures. percentage 37 share of dwt) Figure 5: Top 20 ship owning nations. beneficial ownership. 1 January 2015 (1.000 dwt. by 41 country/economy of ownership)

Figure 6: Growth of demand and supply in container shipping. 2000-2015 (Annual growth rates) 44

Figure 7: Baltic Exchange Dry Index. 2012-2016 (16 August 2016) (Index base year 1985 = 1.000 45 points)

Figure 8: Summary of activity in World Shipyards (Thousands of CGT) 50

Figure 9: Summary of activity in Chinese shipyards (Thousands of CGT) 51

Figure 10: Summary of activity in South Korean shipyards (Thousands of CGT) 52

Figure 11: Summary of activity of Japanese shipyards (Thousands of CGT) 53

Figure 12: Summary of activity of EU28+ Norway shipyards (Thousands of CGT) 54

Figure 13: Completions in global shipyards (in CGT) 61

Figure 14: Evolution of the Brent's price in the last 5 years 68

Figure 15: Global cumulative offshore wind capacity in 2015 70

Figure 16: Annual cumulative capacity (2011-2015) 70

Figure 17: Distribution of tidal companies in the world (2014) 71

Figure 18: Total Capture. Total Aquaculture and Total World fisheries in million tonnes 82

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Figures Page

Figure 19: Marine capture fisheries: major producer countries 83

Figure 20: Marine capture: major fishing areas 84

Figure 21: Marine capture: major species and genera 85

Figure 22: Inland waters capture: major producer countries in 2014 (in percentage of the total) 86

Figure 23: Aquaculture production by region: quantity of world total production (in million 87 tonnes). 2000. 2012 and 2014 Figure 24: Aquaculture production by region: quantity of world total production (weight in 87 percentage). 2014 Figure 25: Farmed food fish production share of the top 15 producers in 2014 (in percentage of 88 the total) Figure 26: Aquaculture production of farmed aquatic plants in the world per country (in million 89 tonnes). 2000 and 2014 Figure 27: Aquaculture production of farmed aquatic plants in the world and selected major 89 producers (Weight in percentage). 2014

Figure 28: World fishers and fish farmers by region 90

Figure 29: Distribution of motorized fishing vessels by region in 2014 91

Figure 30: Global trends in the state of world marine fish stocks. 1974-2013 92

Figure 31: Relative contribution of aquaculture and capture fisheries to fish for human 95 consumption

Figure 32: Revenue of the cruise industry worldwide from 2008 to 2015 (in billion U.S. dollars) 98

Figure 33: Market size of the global cruise industry in 2014. by region (in billion U.S. dollars) 99

Figure 34: Global cruise industry deployment market share in 2016. by region 100

Figure 35: Number of cruise passengers worldwide from 2005 to 2015 (in millions) 101

Figure 36: Leading passenger source countries in the global cruise industry in 2014 102

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Figures Page

Figure 37: Passenger capacity of the global cruise industry from 2011 to 2015 (in thousands) 103

Figure 38: Leading cruise line companies headquarters location worldwide in 2014. by revenue 104 (in billion U.S. dollars) Figure 39: Forecast capacity passenger capacity of the cruise industry worldwide in 2015. by 105 cruise line

Circumnavigation 126 HELM – PwC Economy of the Sea Barometer (World) List of Tables, Figures and Acronyms

Acronyms

GDP - Gross Domestic Product

EEZ - Exclusive Economic Zones

km - Kilometre

Kg - Kilogram

kbbl/d - Kilobarrel per day

FEU - Forty-foot Equivalent Unit

TEU - Twenty-foot Equivalent Unit

dwt - Deadweight Tonnage

FPSO - Floating Production. Storage and Offloading

BDI - Baltic Exchange Dry Index

GT - Gross Tonnage

CGT - Compensated Gross Tonnage

FAO - Food and Agriculture Organization

LNG - Liquefied Natural Gas

LPG - Liquefied Petroleum Gas

Circumnavigation 127 HELM – PwC Economy of the Sea Barometer (World) Environmental preservation gives value to the sea!

Contribute to a culture of safety at sea! In leisure or work. follow the safety rules for lives at sea. Go to sea and return safely.

Circumnavigation 128 HELM – PwC Economy of the Sea Barometer (World) Contacts

Miguel Marques Economy of the Sea Partner [email protected]

Lisbon Praia

Palácio Sottomayor Edifício BAI Center. Piso 2 Direito Rua Sousa Martins. 1 – 2º Avenida Cidade de Lisboa 1069 – 316 Lisboa C.P. 303 Cidade da Praia Tel.: 213 599 000 República de Cabo Verde Fax: 213 599 999 Tel: (+238) 261 5934 Fax: (+238) 261 6028

Oporto Luanda

O´Porto Bessa Leite Complex Edifício Presidente Rua António Bessa Leite. 1430 – 5º Largo 17 de Setembro n.º 3 4150 – 074 Porto 1º andar – Sala 137 Tel.: 225 433 000 Luanda – República de Angola Fax: 225 433 499 Tel: (+244) 227 286 109 (+244) 227 286 111 Fax: (+244) 222 311 213

Circumnavigation 129 HELM – PwC Economy of the Sea Barometer (World) © 2016 PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas. Lda. All rights reserved. In this document. “PwC” refers to PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas. Lda. which is a member firm of PricewaterhouseCoopers International Limited. each member firm of which is a separate legal entity.