The Shipping Industry - ΑΡΧΙΚΗ · 2017-03-29 · Page 2 The Shipping Industry Represents 90%...

Page 1

The Shipping Industry

G.Skrimizeas Athens University of Economics and Business

Page 2

The Shipping Industry

Represents 90% of world trade

Reflects world economy

In 2016, about 10.000 millιon tonnes of cargo were

transported

Page 3

World Seaborne Trade

Total World Seaborne Trade

2017(f) World Seaborne Trade Breakdown

0,00

2000,00

4000,00

6000,00

8000,00

10000,00

12000,00

Mill

ion

Tonn

es

18%

18%

30%

4%

30%Minor Bulk Trade( Scrap etc) (1.886  million tonnes)

Container Trade ( 1.794 million tonnes)

Oil Trade( 3.035 million tonnes)

Gas Trade ( 377 million tonnes)

Major Bulk Trade( iron etc .)  ‐ (3.094 million tonnes)

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Main Dry bulk Routes

Major Coal Trades

Australia – Far East

Australia – W. Europe

S. Africa – W. Europe

Colombia – W. Europe

Major Iron Ore Trades

Australia – Japan

Australia – China

Brazil - China

Brazil – W. Europe

Major Grain Trades

U.S. Gulf – Latin America

U.S. Gulf - Japan

U.S. Gulf - China

Argentina – Middle / Far East Asia

Coal

Grains

Iron Ore Coal

Iron Ore

Coal

Grains

Grains

Coal

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Main Tanker & Product Routes

Major Crude Oil Routes

Arabian Gulf – USA Black Sea – Europe

Arabian Gulf – Far East North Sea – Europe

West Africa – USA North Africa – Europe

West Africa – Far East South America – USA

Major Oil Products Routes

Arabian Gulf – USA North Sea – Europe

Arabian Gulf – Far East North Africa – Europe

Arabian Gulf – Europe South America – USA

Europe – USA South Korea – USA

Europe – West Africa Inter – Far East

Black Sea – Europe

Products

Crude Oil

Crude Oil

Products

Crude Oil Products

Products

Crude Oil

Products

Crude Oil

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Main Container Routes

Trans-Pacific

Trans-AtlanticEurope-Asia

Eastbound

Asia-EuropeWestbound

Container

Container

Container

Intra-Asia

Major Container Routes

Trans – Pacific

Trans – Atlantic

Asia – Europe (Westbound)

Europe – Asia (Eastbound)

Intra – Asia

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Vessel Sizes – Dry bulk Carriers

Vessel Size DWT Range

VLOC > 200,000

35% of World Fleet(By % of GT)

Capesize 110,000 199,999

Post-Panamax 90,000 109,999

Panamax / Kamsarmax 68,000 89,999

Ultramax 60,000 67,999

Handymax / Supramax 40,000 59,999

Handysize < 39,999

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Vessel Sizes – Tankers

Vessel Size DWT Range

VL/ULCC > 200,000

25% of World Fleet(By % of GT)

Suezmax 120,000 199,999

Aframax 80,000 119,999

Panamax 60,000 79,999

MRs 30,000 59,999

Handy < 30,000

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Vessel Sizes – Containerships

Vessel Size TEU Range

Very Large > 10,000

18% of World Fleet(By % of GT)

Large 8,000 9,999

Post-Panamax 5,000 7,999

Panamax 3,000 4,999

Sub-Panamax 2,000 2,999

Handy 1,000 1,999

Feeder < 999

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Greek Shipping Cluster About 5.150 vessels – Bss GT, 16% of Global & 44% of EU fleet

About 650 ship-owning companies

15.000 Greek Seafarers

165.000 shore personnel ( directly or indirectly)

58% of US listed shipping companies are of Greek interest

World Champion

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Ship Type Analysis of The Greek – owned Fleet in Dwt

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Fleet Percentage held by Each Size Group –DWT Terms

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Number of Greek Shipping Companies in operation 1998-2016

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Number of Greek Shipping Companies in terms of fleet size

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Greek Shipping Powers

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Benefits for Greece

€13.4 billion annually – 6% of Greek GDP

Employs approximately 165.000 people – 3.5% of total Greek employment

€136 billion receipts in Services Balance for the past decade

Invests shipping funds in basic sectors of Greek economy

Example for other sectors

Reverses negative stereotypes for Greece

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Strategic Decisions

Sector Selection

Revenue - Cash Management

Leverage

Equity

Timing

Slide 18

Corporate

Strategy

CURRENT ASSETS

- Chartering strategy (spot or period)

- Counterparty risk

FIXED ASSETS (Fleet)

- Sector

- Type

- Age

- Timing

FINANCE

- Leverage, how much?

- Type of borrowing (bilateral, syndicate, bonds etc.)

EQUITY

- Private

- Public

CURRENT ASSETS

- Chartering strategy (spot or period)

- Counterparty risk

FIXED ASSETS (Fleet)

- Sector

- Type

- Age

- Timing

FINANCE

- Leverage, how much?

- Type of borrowing (bilateral, syndicate, bonds etc.)

EQUITY

- Private

- Public

LIABILITIES & EQUITYASSETS

Balancing Fleet Investment

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Main Drivers

Changes in Demand

Changes in Supply

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Changes in Demand

Political Decisions – Bans, Boycotts, War, Trade Agreements

Global Economy

Environmental Regulations

Natural Phenomena

Unexpected Crises

NO Control over Demand

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Changes in Supply

Scrapping

Lay-Up

Slow Steaming

New Deliveries (Ordering)

• Future Prospects

• New building Prices

• Access to Finance

• Interest Rates

• Technological Improvements of New Designs

Owners CAN Control

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The Shipping Cycle

LOW:

Surplus of Ships

Deliveries: Depending on

Yard Capacity

Strong Market

Weak Market

Average

Demand: Unknown

Scrapping:

Ordering:

Scrapping:

Ordering:

Demand: Unknown

Global Fleet Shrinks

HIGH:

Shortage of

Ships

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TIMING !!

Investment Environment

Funding

Demand

Supply

Asset Values & Charter Levels

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0

25

50

75

100

0

15.000

30.000

45.000

60.000

75.000

90.000

2004 2007 2010 2013 2016

1 Yr TC Rate Average 5 Yr Old Value Average

0

25

50

75

100

0

15.000

30.000

45.000

60.000

75.000

90.000

2004 2007 2010 2013 2016

1 Yr TC Rate Average 5 Yr Old Value Average

0

25

50

75

100

0

15.000

30.000

45.000

60.000

75.000

90.000

2004 2007 2010 2013 2016

1 Yr TC Rate Average 5 Yr Old Value Average

Panamax – Drybulk Carrier Aframax – Tankers

3,500 TEU – Containerships

Source: Clarkson’s Research

Asset Values

TC Rates

Bulk Carriers -53% -57%

Tankers -32% -21%

Containers -76% -54%

USD

Per

Day

USD

Million

USD

Per

Day

USD

MillionU

SD P

er D

ay USD

Million

Asset Values & Charter Levels

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Challenges Ahead

• Crewing

• Compliance

• Capital Markets

• Demand

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Key Takeaways

• Shipping is a very dynamic, yet demanding industry.

• Greek Shipping : The Global Leader.

• Greek Shipping is mainly “ International Shipping”.

• Shipping should be one of the driving forces for the

Greek Economy.

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15, Karamanli Avenue,

Voula, GR 166 73,

Athens, Greece

Telephone: +30 210 8914 600 Fax : +30 210 8955 140

Email: info@allseas.gr

Web Site: www.allseas.gr - www.box-ships.com - www.paragonship.com

Thank you