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Home , Bulk cargo, Cargo liner, Freight transport, Maritime transport, Panama Canal Railway, Suez Canal Company

Maritime 1.

2.

3. Supply chains

4. Statistics 1.1 Maritime transport overview

 There are over 140,000 and 170,000 ship owner and manager entries in actual maritime transportation industry.

are the least regulated mode of transportation.

 Ship represents a large capital investment that translates into a large cost per day.

time is expensive and presents diseconomies of scale (port operations, the optimal size of ship).

 Generally, the longer a is, the larger the share of ‐days in a voyage, and the larger the optimal ship size will be. 1.2 Maritime transport overview

 Factors effect the optimal ship size; . the utilization of ship capacity at sea . the “trade balance” . loading and unloading rates at the , . the various costs associated with the ship.

 A ship is a long‐term investment. The useful life of a ship spans 20–30 years.

 During the life of a ship a lot of market volatility may be encountered (eg; fluctation in freight rates

 In the short run the owner may . reduce the daily variable operating cost by slow steaming (reduction in fuel consumption) . the owner may lay up the ship till the market improves. 1.3 Maritime transport overview

 Lay up a ship significantly reduces its daily variable operating cost.

 When the market is depressed,owners older ships.

 The value of a scrapped ship is determined by the weight of its  (the “lightweight” of the ship)

 there is high supply of ships for scrap  the price paid per ton of scrap drops. 1.4 Ship management

 Ship management concerns all activities required to operate the ships effectively, except providing equity finance.

 The Baltic and International Maritime Council (BIMCO) SHIPMAN contract is often used between ship owner and manager.

 The contract defines the ship management services;  Crewing management  arrangements for hull and machinery, and protection and indemnity (P&I) insurance.  Commercial management  Other services 1.5 Ship management

 The operational expenses are used to keep the ship in operation and vary per ship.

 Manning is the largest component of operational expenses OPEX. Expenses for ship finance and voyage operations are not OPEX.

 The ship manager is paid for its services with the annual management fee (roughly 5% of annual operational expenses).

 The ship owner is obliged to indemnify the ship manager against any third‐party claims. 1.6 Shipping industry

 There are different classifications in the industry;

. regularity of service . . ship . charter type

The type of merchant vessel employed on a trade route is determined basically by the traffic carried. There were 3 main divisions;

1. Liner 2. Tramps 3. Specialized vessels (tankers)

 A tramp may be put on a liner berth to compete for liner cargoes. Conversely liners may at times carry tramp cargoes. 1.7 Shipping industry classification per traffic

TRAMP LINER () (GENERAL CARGO)

DRY BULK LIQUID BULK DRY CARGO

PRIMARY DB Crude Oil GENERAL CARGO Chemicals Wine TV Grains Veg-Oil etc Refrigerator

SECONDARY DB All cargoes that needs special Nickel handling and storage Chrome Sugar, 1.8 Industry division according ship types

 Reason for the division; all ships have specific routes and all routes has specific trade and economic issues.  Ships mainly divided into 3 groups as;  Dry cargo ships (Bulk Ships, , RO/RO )  Tankers  Others  Dry bulk ships and tankers are operating in .  ships, Ro/Ro, Reefer operates in liner trade. 1.9 Liners history

 Scheduled trading began with the advent of steam power in 1820s.  When ships became independent from the wind and were much vulnerable to adverse weather, timetabling of services began to be possible as steam power became more reliable and vessels larger  In 1860s regular scheduled services were a feature of many main trade routes.  Liner trade ships operating on fixed routes with a fixed schedule.  Raw materials, manufactured goods mainly carried by container ships which offer;  very reliable,  tightly scheduled and frequent services  with a high level of cargo safety. 1.10 Liners history

• Operate on fixed routes and fixed sailing schedules,serving a group of ports. • Involves an adequately sized fleet and a fairly large shore establishment. • Compose ¼ of seaborne trade. • Generally, cargoes loaded in containers. • Enables unitization and carry heterogenous products • General Cargoes: mainly consumption goods; clothes, TVs,computers. 1.11 Liners history

• After 90s container trade developed rapidly. • Decrease after global crisis in 2008. • Vessels are not loaded with one shipper’s cargo • Even vessels are not full, voyage is completed as per schedule. • Supplied vessel capacity is important. • Joint voyage planning, sharing vessel,common use of port equipments; to keep in accordance with the voyage determined and rigth planning of capacity. 1.12 Liners trade : main ship type and capacities

CONTAINER SHIPS MULTI PURPOSE VESSELS 4.395 SHIPS, 10.924.515 TEU 2.707 SHIPS, 1.139.859 TEU

CONTAINER SHIPS GENERAL 378 SHIPS, 5.34m. DWT "DEEP SEA" POST GENERAL CARGO TRAMP (>3.000 TEU) 726 SHIPS, 6.46m DWT 1.318 SHIPS 647.786 TEU CONBULKER 389 SHIPS, 13.20m DWT "MID GROUP" PANAMAX,SUB-PANAMAX /HEAVY LIFT (1-2.999 TEU) 41 SHIPS, 1.56m DWT 1846 SHIPS 3.359.293 TEU RoRo 1.067 SHIPS, 9.54m DWT "FEEDER" FEEDER,FEEDERMAX CAR CARRIERS (<1.000 TEU) 650 SHIPS, 9.34m DWT 1.231 SHIPS 717.436 TEU REEFER 1.231 SHIPS, 330.1m CU.FT 1.13 Tramp services

• Bulk; unscheduled and irregular shipments • Terms: Common trader, general trader, free maritime transportation, unscheduled trader • Ready to carry all types of dry bulk cargo from any origin port to destination port at any time and to provide the legacy and safety of the voyage. • Cargo based. • Low value cargoes: coal,grain,, timber; carried in complete shiploads. 1.14 Tramp services

• Many of the cargoes are seasonal. • Homogenous characteristic, handled and carried in bulk forms. • Ships:Mid sized, unequipped and unassigned for regular trade; with two to six holds,sub‐standard. • Often family owned companies tend to merge. • Engaged under a document called a charter party; on a time or voyage basis. 1.15 Tramps history

• In the ancient times, Romans import grain from North in bulk and threfore they built a special vessel fleet. • Since 19th century the world trade volume increases; parallel to this bulk cargo transportation increased in order to reach economies of scale. • The trade almost doubled after 90s till today. • Main reason; economic growth of , and South East at the end of 20th century. • Today 80 % of seaborne dry cargo trade is bulk. • Mostly bulk ship carries only one at a time and called . • They vary in size; a few hundred tonnes cargo carrying up to 300.000 tonnes 1.16 Dry bulk transport demand

. volume . International trade structure . Worldwide geographical distribution of raw materials, agricultural and industrial products, finished and semi‐finished goods production and consumption places. . Essentials that form the market are especially market of the cargo, transportation routes and vessels used in maritime transportation. . It’s important to understand the characteristics of the cargo, its own market and specific routes of the transportation. . Dry bulk cargo compose; 57% in tons, 47% in ton‐miles basis of tramp trade volume. . 33% of total maritime transportation in both tons and ton‐miles basis. . Only dry bulk vessels compose 34% of total world fleet. 1.17 Specialized vessels

. Cargo ships designed for carrying a particular commodity as a result of demand. . Ore carriers, sugar carriers and the tankers can be the samples. . The world’s fleet is divided between tramp operators (under a charter party) and those owned by oil companies eg; BP VLGC). . The larger proportion is owned and operated by oil companies and employed on regular routes; operation in this respect similiar with liner operator. . Most independently owned tankers are on long‐term charter to the oil companies. . There is a worldwide network of tanker routes; • Crude oil is transported from the oilfields to refineries; • and from refineries to distribution centers (DCs) and bunkering ports 1.18 Specialized vessels : Tankers

. Cargo ships designed to carry crude oil, petroleum products, natural gas and chemical substances, (LNG), (LPG), vegetal oils, wines . As a Tramp form, tankers have necessary technological to carry such goods. . Tankers cover 1/3 of world seaborne trade in tons carried. . Oil crises, wars, political issues in world arena effects this industry more than the other maritime transportation industries. . Therefore, compared to others tanker trade is fluctuating compared to others. 1.19 Specialized vessels : Tankers

. Countries that export and import are distinct . Importers; China, Japan and other Asian countries,European countries, US . Exporters;Saudi Arabia and other Middle East countries, Iran, Iraq, United Arab Emirates and Kuwait; Latin America, North Sea countries like England and . . Routes are certain and long.

. Has a freight system; . 1.20 Specialized vessels : Tankers

. The long distances between production and consumption areas effects the demand on transportation of the crude oil. . Middle East countries with the 60% petroleum reserves are far from the consumption areas. . From Cape of Good Hope to : 12.000 miles; to Japan 6.000 miles . Long routes, petroleum (as an important input) demand increase also increases the tanker trade in ton‐miles. • Tankers compose; %43 in tons, 53% in ton‐miles basis of tramp trade. • 38% of total maritime transportation in ton‐miles basis. • Considering dry bulk as 33% of total maritime transportation; in ton miles basis tanker has the highest portion. • Tanker fleet accounts for 36% of world fleet. 1.21 Tankers classification

CAPACITY CAPACITY TANKERS (CLARKSON) (LR-FAIRPLAY) HANDYSIZE 10.000 -40.000 DWT 20.000 -34.999 DWT HANDYMAX 40.000 -60.000 DWT 35.000 -49.999 DWT PANAMAX 60.000 -80.000 DWT 50.000 -79.999 DWT AFRAMAX 80.000 - 120.000 DWT 80.000 - 99.999 DWT 120.000-200.000 DWT 100.000 - 149.999 DWT VLCC/ULCC 200.000 DWT < 150.000 - 299.999 DWT/ 300.000 DWT < 1.22 Tankers and their cargoes

CARGOES (SHARE IN TOTAL CARRIAGE IN %) LIQUID TANKERS CRUDE OIL DIRTY PRODUCT CLEAN PRODUCT ULCC/VLCC 60% - - SUEZMAX 30% 5% - AFRAMAX 10% 35% 20% PANAMAX & HANDY - 60% 80% 1.23 Types of Tankers 1.24 Liners and Tramps comparison

LINER TRAMP Irregular and discontinious if SERVICE Regular and consistent;whether cargo is not available cargo is available or not General cargo (high volume-high Bulk Cargo (low value) value) CARGO High variety Low variety Heteregenous Homogenous Partly loads Shiploads SHIPPER More than one Generally one Conventional Liners Bulk Carriers RO/RO Tankers Container Combined Vessels SHIP TYPES Lash Conventional Tramps Seabee Bacat Mostly more than two ports Mostly between two ports VOYAGE Mostly "port time" more than Mostly "voyage time" more "voyage time" than "port time" FREIGHT MARKET Determined Flexible and may change daily SERVICE COST EXPENSIVE CHEAP SERVICE Freight Conferences Union of Shipowners ORGANISATIONS Outsiders Operate many vessels Possibility to serve with less Fleet design is a must ves s el SHIP OPERATION Fleet size varies upon Service depend on the cargo requirement and voyage not the route frequency Profit margin is more determined Profit margin is fluctuating due PROFIT to market conditions 1.25 Dry bulk ships capacities

DRY BULK CAPACITY CAPACITY CARGO SHIPS (CLARKSON) (LR-FAIRPLAY) HANDYSIZE 10.000 -40.000 DWT 20.000 -34.999 DWT HANDYMAX 40.000 -60.000 DWT 35.000 -49.999 DWT PANAMAX 60.000 -80.000 DWT 50.000 -79.999 DWT CAPESIZE 80.000 DWT< 80.000 DWT< 1.26 Dry bulk ships cargoes

CARRIERS CARGOES (SHARE IN TOTAL CARRIAGE IN %) COAL GRAIN -ALUMINA PHOSPHATE CAPESIZE 70% 45% 7% - - PANAMAX 22% 40% 43% 45% 20% HANDY 8% 15% 50% 55% 80% 1.27 Containerships generations 1.28 Containerships generations

• Vessels have their names according to their characteristics. • Panamax; the largest vessel that may pass Panama safely. • Capesize has the highest capacity and can not pass Canal. • Therefore trade route determined round Cape of Good Hope. 1. Maritime Transport

2. Transport geography

3. Supply chains

4. Statistics 2.1 The strategic space for international transport

 1. The Geo‐strategy of International Transportation  2. The  3. The  4. The Strait of Malacca  5. Other Important Maritime Passages 2.2 The geostrategy of international transport

 Features of international transportation . Involves geopolitical considerations. . Passages subject to conflicts aimed to assure a control of a strategic location. . International transport : • Ports, airports and . • Also subject to geopolitical considerations. • Access to strategic resources or key markets. . Acknowledged early in the history of international transportation: • "Whosoever commands the sea commands trade; whosoever commands the trade of the world commands the riches of the world, and consequently the world itself". Sir Walter Raleigh (c1610). 2.3 The geostrategy of international transport

 Maritime transportation . Dominant purveyor of international freight distribution and evolves over a global maritime space. . Constrained system: o Profile of continental masses. o Forced to pass through specific locations corresponding to passages, capes and straits. . Freight flows: o . o Parts. o Finished goods. 2.4 Maritime routes and strategic locations

Bosporus Gibraltar Suez Hormuz

Bab el-Mandab Panama Malacca

Good Hope

Magellan 2.5 Capacity of key strategic maritime passages

Standard Capacity Depth TEU Panama 120,000 dwt 16 meters (58 feet) 12,000 Suez 120,000 dwt 16 meters (58 feet) 12,000 Malacca 300,000 dwt 21 meters (68 feet) 18,000 2.6 Shipping lines and strategic Indian and Pacific passages

Tsugaru

Hormuz

Malacca Makassar

Sunda Lombok 2.7 The geostrategy of international transport

 Conquest . Initially a mean to acquire and conquer oceans, territories and resources . Maritime technology: o European powers first to improve significantly maritime technology. o Able to establish maritime trading roads and colonies all over the world. . Railroad technology: o Mean to achieve territorial conquest. o for nation building. o Africa for colonialism. 2.8 The geostrategy of international transport

 Competition . Mean to compete on the global economy. . Prevalent force in shaping modern transportation systems. . Right to carry national and freight: o Often reserved for national transport companies. o Cabotage laws. o Air freedoms. . Transport related activities also compete: o , trade and insurance. o Usage of flags of convenience. 2.9 The geostrategy of international transport

 Cooperation . Common interests favor agreements. . Involving access to infrastructures or setting standards: o 1792: most countries along the Rhine agreed to free . o 1871: and the agreed to the development of the St. Lawrence Seaway in 1954. o International trade within Europe was enhanced by the adoption of a standard over rail gauges (1.435 meters). o International air transportation is subject to regulations over security and prices. o Emergence of economic blocs: • European Union and the North American Free Trade Agreement. • Leans on common rules about transport standards and prices. 2.10 The northern East – West freight corridor g 1 Day 0.3 Day 1 Day 5,600 km 600 km 970 km 9,870 km R u Halifax 8 Days Narvik 0.6 Day To r ni o 1 Day Vainikkala 8.2 Days Vos toch ny s Vostochny Haparanda/Tornio s Sequence ia Narvik Finland Oulu Vainikkala St. Petersburg Sweden Harbin Lianyungang

Beijing Scandinavian Segment

Zabaykalsk s

e

t Lanzhou a t Canada Ulaanbaatar

S China Irkutsk Mongolia d

e

t

i

n

U Russia

Urumqi Novosibi rsk Druzhba Lokot

Astana New York Presnogorkovka Boston Yekaterinburg Kazakhstan Perm'

Halifax Haparanda/Tornio Archangel'sk Oulu Vologda Vainikkala St. Petersburg Mo scow Transatlantic Segment

Rail Main Trunk (Broad Gauge)

Port Rail Main Trunk (Standard Gauge) Brest Gauge Change Rotterdam Rail Connector (Broad Gauge)

Rail Terminal Rail Connector (Standard Gauge) Azimuthal Equidistant Polar Projection Source: International Union of Railways (2004) The Northern East West (N.E.W.) Freight Corridor, Transportutvikling AS. Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, November 2005 2.11 The geostrategy of international transport

 Control . The control of strategic places. . Vulnerability: o Developed countries are becoming more vulnerable to supplies of freight and raw materials. o Some developing countries, like China, are becoming dependent on supplies of and energy. . United States: o Became more dependent on external supplies of oil. . Foreign policy shifted at keeping an eye on strategic locations in oil trade, dominantly in the Middle East. 2.12 Shipping lanes and strategic maritime passages in Middle East

Oil transited (millions of 1.0 barrels per day) 2012-2013 figures 3.0 Bosporus Turkey

Iran Iraq Suez 3.8 Hormuz 15.5 Egypt Saudi Arabia

Oman Sudan Yemen

3.3 Bab el-Mandab

PG: Persian Gulf 2.13 Oil transited at major strategic locations ( 2014) 2.14 The Panama Canal

 Context . Joins the Atlantic and Pacific oceans at the : • From Cristobal on , an arm of the Sea, to Balboa, on the . • Ranks as one of the greatest works of all time. . Composed of three main elements: • Gatun Locks (Atlantic side). • Gaillard Cut (continental divide) • Locks (Pacific side). . Dimensions: • Slightly more than 64 km long. • Depth of 12.5 m (40 feet) and width of 91.5 m. Depth 16 m since 2016 . Prevents a 21,000 km detour around . . Handles about 12% of the American international seaborne trade. 2.15 The Panama Canal

Atlantic Ocean

Cristobal Colon

Gatun Locks

Gatun Dam Panama Canal Railway

Pedro Miguel Locks Miraflores Locks Gaillard Cut Balboa

8084Miles Pacific Ocean 2.16 The Panama Canal : Gatun locks 2.17 The Panama Canal : Gaillard cut 2.18 The Panama Canal : early history

 Early history . Interests: • Began with explorers of the early 16th century: • In 1534, the Spanish surveyed the Panama region. • Was judged impossible. . American involvement: • Gold was discovered in in 1848. • Panama Canal railway constructed in 1855. . French attempts: • French Geographical Society of Paris signed a treaty with Columbia (then the owner of the Province of Panama; 1878). • French Canal Company undertook construction (1879‐1899). • Project failure: financial problems, tropical diseases (20,000 workers killed) and the technical difficulties of trying to build a sea level canal. 2.19 The Panama Canal : early history

 American intervention . Panama revolt from Columbia (1903), supported by the United States. . Hay‐Bunau‐Varilla Treaty: • United States guaranteed the independence of Panama. • Perpetual lease on a 16‐km (10 miles) strip with complete sovereignty. • Compensation of $10 million and an inflation‐indexed annual compensation.  Construction . Constructed between 1904 and 1916. . Cost of $387 million (compensation to Panama and $40 million to purchase the previous project from the French Canal Company). . Under the authority of the U.S. Army Corps of Engineers. . 70,000 people worked on the project and about 5,600 died in the process. . Sanitation of the entire canal area (mosquitoes; and ). 2.20 The Panama Canal : early history

• Operations and traffic – Under the jurisdiction of the (1999): • Collect tolls on all ships crossing the canal. • A loaded ship pays about $2.57 per net ton. • The average toll is about $45,000. – Traffic: • 13,000 ships transit the canal every year, (35 ships per day). • After Enlargement it is expected to rise to 16.000 ships/year • Grains (43% of the traffic transited). • Containers (11%) and petroleum products (10%). • Loss of some of its strategic importance due to super‐tankers. – Panamax standard: • Equals to 65,000 tons and a of 12 meters. 2.21 The Suez Canal

 Context . Running across the Isthmus of Suez in northeastern Egypt. . Connects the Mediterranean Sea with the Gulf of Suez, an arm of the Red Sea. . Dimensions: • Artificial of about 163 km in length. • Width of 60 meters. • No locks, because the Mediterranean Sea and the Gulf of Suez have roughly the same level. . Ships of 16 meters (58 feet) draft can make the transit. . Capacity: • 150,000 deadweight tons loaded. • 25,000 ships per year, but handles about 14,000. 2.22 The Suez Canal : early history

 History . First canal excavated about the 13th century BC. . Expand trade between the Mediterranean and the Middle East. . Restoration efforts were abandoned in the 8th century AD. . Colonial expansion of Europe in Asia revitalized the idea of a canal.  French construction . French and Egyptians interests (1859‐69). . Cost of about 100 million dollars. . Brought forward a new era of European influence in Pacific Asia. . Saving 6,500 km from the circumnavigate African route. 2.23 The Suez Canal : geographical impact in 1869

10,000 KM

16,000 KM 2.24 The Suez Canal : early history

 British purchase . In 1874, Britain bought the shares of the Suez Canal Company and became its sole owner. . According to a 1888 agreement, the canal was open to the vessels of all nations in peace or in war. . Britain claimed the need to control the area to maintain maritime power and colonial interests. . In 1936, Great Britain acquired the right to maintain defense forces in the Suez Canal. . Strategic importance during World War II to maintain Asia‐Europe supply routes for the Allies. 2.25 The Suez Canal : early history – end of S.XIX 2.26 The Suez Canal : modern times

 Nationalization . Nationalized by Egypt (1956). . Israeli ships were not permitted to cross the canal. . Threat was also extended to and Britain: . Refused to help finance the Aswan High Dam project. . Israel, France and Britain invaded Egypt (1956). . Egypt sank ships in the canal; closing it between 1956 and 1957.  Israel – Arab Wars . Tensions between Israel and Arab nations in the 1960s: • Six Days War Israel and Egypt (1967); Invasion of Sinai by Israel. • Canal Closed (Between 1967 and 1975) . Significantly destabilized international transportation. . Re‐opened in 1975 as Egypt agreed to let Israel use the canal.  Modern canal . Widened between 1976 and 1980 to accommodate super‐tankers 150,000 dwt. . Support the oil trade between Europe and the Middle East. . Ultra large crude carriers (ULCCs) cannot pass through the Canal. . Important with economic growth taking place along Pacific Asia. . Growing movements of containers along the Suez Canal. 2.27 The Suez Canal : modern times , 1990 2.28 The Malacca Strait

 Context – One of most important strategic passage of the World: • Supports the bulk of the maritime trade between Europe and Pacific Asia. • Account for 30% of the world trade. – Main passage between the Pacific and the Indian oceans: • Accounts for 50,000 ships per year (600 per day). • Second passage: The Strait of Sunda (Indonesia). • Outlet to the . – Dimensions: • 800 km in length and between 50 and 320 km in width (2.5 km at its narrowest point). • Minimal depth of 70 feet. • Can accommodate ships of about 120,000 tons. 2.29 The Strait of Malacca

Strait of Malacca

South China Sea

Singapore

Indonesia

Strait of Sunda

0100 200 400 600 800 Miles 2.30 The Strait of Malacca

 History . Important passage point between the Chinese and the Indian worlds. . Controlled at different points in time by Javanese and Malaysian kingdoms. . Arab control: • From the 14th century, the region came under the control of Arab merchants. • Established several fortified trading towns. • Malacca: most important commercial center in Southeast Asia. . European control: • Shifted as the era of European expansion began in the 16th century. • In 1511, Malacca fell to the Portuguese. • Marked the beginning of European control over the Strait. 2.31 The Strait of Malacca

 English control . In 1867, England took control of the passage. . Singapore as a main . . Other important centers such as Malacca and Penang, forming the Strait Settlements. . Control lasted until the Second World War and the independence of Malaysia in 1957. . Growing importance of the strait with the growth of trade. . Singapore: • Located at the southern end of the Strait of Malacca. • One of the most important port in the world. • Major oil refining center. 2.32 The Port of Singapore 2.33 Other important maritime passages

• The Strait of Hormuz . Strategic link between the oil fields of the Persian gulf and the gulf of Oman (Indian Ocean). . Between 48 and 80 km of width (6 km wide navigation channel). . The most important strategic passage in the world (oil). . Contested by Iran and the United Arab Emirates. • Gibraltar . Peninsula between the Atlantic and the Mediterranean oceans. . Obligatory passage point between these two oceans. . 64 km long and varies in width from 13 to 39 km. . Under British control since its conquest from Spain (1704). . Second World War: Gibraltar blocked the access to the Atlantic to the Italian and German fleets of the Mediterranean. 2.34 Other important maritime passages

 Bosporus . Passage of 30 km in length and of only 1 km in width at its narrowest point. . Only link between the Black Sea and the Mediterranean Ocean. . Passage of growing strategic importance, notably after the fall of the Soviet Union. . The Caspian Sea has vast oil reserves. . A large amount must transit trough the Black Sea and Bosporus to reach external markets. . About 50,000 ships a year, including 5,500 tankers, are transiting through the passage each year. 2.35 The Dardanelles and Bosporus maritime passages

Greece

Black Sea Turkey Bosporus Istanbul

Marmara Denizi

Turkey

Mediterranean 4020 0 40 Miles Ocean 2.36 The Bosporus maritime passages 2.37 Other important maritime passages

 The Strait of Magellan . Discovered in 1520 by the Portuguese explorer Ferdinand Magellan. . Separates South America to Tierra del Fuego. . 530 km long and 4 to 24 km of width. . Held secret during more than one century to assure the supremacy of Portugal and Spain for the Asian trade of spices and silk. . The Panama Canal (1916) and the North American transcontinental in the 1980s undermined its strategic importance.  The Cape Good Hope . Extreme tip of Africa discovered by the Portuguese (end of the 15th century). . Separates the Atlantic and Indian oceans. . Vasco de Gamma (1497) and was the first European to reach India by sea. . Lost some of its strategic importance with the widening of Suez canal. 1. Maritime Transport

2. Transport geography

3. Supply chains

4. Statistics 3.1 Transport Chain , Logistic Chain and Supply Chain

Supply Chain

Assembly Distribution Retailing Production Storage planning Sorting Storage Gate Gate Gate Gate Order Order Sorting planning planning

Logistics Chain 1 LC 2 LC 3 Chain n Product Focus

Extraction Processing Fabrication Assembly Distribution Retailing

Transport Chain 1 TC 2 TC 3 TC 4 TC 5

Extraction Processing Gate

Rail Port Maritime Port Road Focus Transport Gate

Source: adapted from L. Ramstedt and J. Woxenius (2006). 3.2 Transport Chains : Ports functions 3.3 Transport Chains : Ports as logistic centres 3.4 Transport Chains : the key role of the Container 3.5 Transport Chains : the key role of the Container 3.6 Transport Chains : tools to analyse bottlenecks 3.7 Intermodality sea‐rail in US

•American rail network , mostly Private •Full connectivity and interoperability between rail operators •Rail gauge 1.435 mm all the country • Common Voltage, signalling and synchro systems •One single working language : english

LOS ANGELES Port (160 Mtons, 8 MTEUs)

“LAND-BRIDGE” East-West rail . ALAMEDA CORRIDOR 30 km. Two- floor Capacity : 100 convoys / day 1,500 m. 600 TEUs COST : 1 TEU / km = 1 US$ APL RR & Sea Container terminal 3.8 Intermodality sea‐rail in EU

• Rail network part of TEN‐T • Rail : UIC‐ 1435mm : 250.000 KM • Other 10 track gauges : 1.000, 1667, 1776mm • Voltage supply systems : 12 different AC/DC • Control & Signalling systems : 20 different • Working languages : 22 different • Cost 1 TEU / km : 6.4 US$ HAMBURG Port ( 180 mTON , 10 MTEUs) 3.9 Evolution of logistical integrations 1960 ‐2000

1960s 1980s 1990s 2000s Fragmentation Consolidation Functional Integration Value Capture Demand Forecasting Purchasing Materials Requirements Planning Management Production Planning Manufacturing Inventory Warehousing Warehousing Supply Chain Materials Handling Materials Handling Logistics Management Packaging Packaging Inventory Distribution Planning Physical Order Processing ICT Distribution Transportation Marketing Copyright © Customer Service Strategic Planning 3.10 Cargo flows : conventional and contemporary models‐

Conventional Raw Materials & Parts Manufacturing Distribution

Raw National Regional Local Retailers

Storage Customers Materials Distribution Storage Distribution

Contemporary

Raw Manufacturing Distribution Retailers Materials Center Customers

Material flow () Core component Information flow (order) 3.11 The four layers of Logistic services

Actors Services

Cargo owners Manufacturing 1PL & Retailing

Carriers 2PL Service integration Transport chain

Logistics service Logistics chain providers 3PL

Lead logistics providers Supply chain & consultants 4PL

Supply chain integration Hub-and-spoke Network Structure Point to

Dispersed Clustered Locations 3.12 Logistic networks 3.13 City logistics and land use

Scope

A Distribution Center Urban Logistics Zones Suburbia

B Central City Urban Freight C Distribution Centers

Urban A Freight D Stations 3.14 Transport infrastructure and economy growth

Transport Infrastructure Investment

Additional Transport Capacity, Efficiency, Reliability and Level of Service

Lower Transport Shorter Transit Expansion Costs Times

Increased Productivity

Increased Competitiveness

Economic Growth 3.15 Logistics just‐in‐time

Delivery units for parts Production unit Delivery units for goods

Warehousing

Assembly line

Assembly and Moving storage units warehousing Moving storage units 3.16 Ports Free Trade zones and other logistic centers

12.5 Free trade zoneLas Tecnologías de la Información US ‐UE S‐XIX 2 Maquila industries Mexico 1965 3 Industrial Free Zone 1970 4 Export Free Zone Ireland 1975 5 Export Processing Zone and Duty‐Free Korea 1975 6 Export Processing Zone Filipinas 1977 7 Special Economic Zone China 1979 8 Investment Promotion Zone Sri Lanka 1981 9 Foreign Trade Zone India 1983 10 Free Zone EUA 1983 11 Export Free Zone Korea 1990 12 Logistic Activity Zone Spain 2000

Total World 2014: approx 1,000 zones 1. Maritime Transport

2. Transport geography

3. Supply chains

4. Statistics 4.1 Source . UNCTAD Maritime Transport Review 2015 4.2 Source : UNCTAD Maritime Transport Review 2015 4.3 International seaborne trade 1980 ‐ 2014 4.4 Structure of International seaborne trade 2014 4.5 Structure of World seaborne trade 2014 by Region 4.6 Structure of World seaborne trade 2014 by Cargo 4.7 Structure of World seaborne trade 2014 by Containerized cargo 4.8 Structure of World seaborne trade 2014 by Sea Routes 4.9 Structure of World fleet by vessel types 4.10 Structure of World fleet by vessel types 4.11 The top 12 liner companies 4.12 International maritime transport costs factors 4.13 World Ports : KPI Key Performance Indicators (2013)

x 1.000 x MM x MM RANK PORT COUNTRY UNIT TONS TEUS US$ 1 Shanghai China MT 696.985 33.6 1.000 2 Singapore Singapore FT 560.888 32.5 930 3 Tianjin China MT 477.339 12.9 73 4 Guangzhou China MT 472.760 15.3 150 5 Qingdao China MT 450.111 15.5 483 6 Rotterdam Netherlands MT 440.464 11.6 217 7 Ningbo China MT 399.250 17.3 340 8 Port Hedland MT 372.301 0.0 150 9 Dalian China MT 320.843 9.9 95 10 Busan South Korea RT 313.295 17.6 68 11 Hong Kong China MT 276.055 22.3 300 12 Qinhuangdao China MT 253.293 0.0 90

MT Metric Ton US 1.000 kg RT Revenue Ton UK 1.000 kg x 1 m3 FT Freight Ton US 1.000 kg x 40 ft3 Maritime Transport