1 / 7

Ocean Carrier Outlook 2010/2011

Ocean Carrier Outlook 2010/2011. November 18, 2010. 2008 Increased Carrier Costs. Carrier Fuel Costs Up 75% New ILWU Contract Inland Transport and Repositioning Costs Panama Canal Fees Rising Environmental and Security Initiatives Source: TPM 2008. 2008 Carrier Response.

lark
Download Presentation

Ocean Carrier Outlook 2010/2011

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

E N D

Presentation Transcript

  1. Ocean Carrier Outlook2010/2011 November 18, 2010

  2. 2008Increased Carrier Costs • Carrier Fuel Costs Up 75% • New ILWU Contract • Inland Transport and Repositioning Costs • Panama Canal Fees Rising • Environmental and Security Initiatives Source: TPM 2008

  3. 2008Carrier Response • Demand & Utilization Levels High Levels Still High. • Rate Increases Sought. • Vessels Re-Deployed • New Vessel Sharing Arrangements • “Slow Steaming” Source: TPM 2008

  4. 2009Economic Downturn • Inventories Slashed • Decreased Demand • Excess Capacity • Rates Slashed In Most Lanes • Top 10 Carriers Reported Losses of $11 Billion

  5. 2010Rate Negotiations • Revenue Recovery Above Customer Relations • Carriers Uniquely Unified In Negotiation Strategy • Rate Increases • Capacity Reduced/The Singapore Parking Lot • Increased “Slow Steaming” • Inventory Rebuild • The “New Economics” (Drewry Shipping)

  6. 2010/2011“New Economics” • 2010 Rate/Volume Boom In Spite Of, Not Because Of, The Economy. • Housing Market Stalled • Unemployment High • Retail Sales Unexciting • Boom Over? Inventory Rebuild Over • Carriers Return To Profitability (JOC, Nov. 2010) • Spot Rates Moving Down. (Drewry, Nov. 2010)

  7. 2011Rate Environment Driving Rates Up Driving Rates Down Weak Macro Economics Early Peak Season End Added Capacity Trans Pac and Asia/Europe Carrier Vessel Order Book New/Niche Players Government Regulation? • Trade Growth • Capacity Management • Carrier Revenue Strategy • Fuel Prices • “New Economics” Can The Carriers Continue To Manage The Supply-Demand Balancing Act??

More Related