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MOL @ THE PROPELLER CLUB OF BASLE. 20 th November 2013 Philippe J. Dartois. A liner industry in motion A carrier perspective. Topics. 1. MOL quick overview 2 . Challenges to the liner Industry 3. MOL direction forward. MOL Overview (1) Who is. Strategically Balanced Portfolio.
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MOL @ THE PROPELLER CLUB OF BASLE 20th November 2013 Philippe J. Dartois
A liner industry in motion A carrier perspective
Topics 1. MOL quick overview 2. Challenges to the liner Industry 3. MOL direction forward
Who is MOL? In Container ShipBusiness < MOL Liner Business in Mitsui O.S.K Lines>
Growing own MOL Terminals • We currently operate 9 terminals in: - USA: Long Beach, Oakland & Jacksonville • Japan: Tokyo, Yokohama, Osaka & Kobe • Thailand: LaemChabang • Vietnam: Cai-Mep(New) • We will operate 1 more: - Netherlands: Maasvlakte 2, Rotterdam - 2014
Growing value added products Reefers • Double digit annual growth • Young fleet: average age 3.5 years *All fleet size in TEU at the beginning of fiscal year (April 1) 08/2013: 100 kTeus
Growing MOL Liner Network Europe 20 Offices North America 29 Offices 4 Transatlantic Services West (2) & South (4) – Africa 3 Transatlantic via Suez 16 Asia / North America 13 Transpacific Services 16 Asia / North America 6 Asia Europe Services 3 Asia /Med Black Sea Africa 11 Offices MOL Services Asia / North America 16 Transpacific 13(9 USWC/ 4 USEC) Transatlantic 3 via Suez Canal Asia / Latin America 3 Asia / Europe 6 Asia / Mediterranean/Black Sea 3 Intra-Asia 33 Asia / Oceania 6 Asia / Africa / Middle East 8 North America / Latin America 6 North America / South Africa 1 (overlapped) South America / Africa 1 (overlapped) Europe / North America 3 Europe / Africa 4 Mediterranen/North America 189 6 NA/Latin Services Asia & Oceania 80 Offices South America 6 Offices MOL Global Offices
FYI – MOL Latest Rating Highest Class Rating in Shipping Industry. FYI – MOL Latest Rating FYI – MOL Latest Rating
Industry challenges The increase of vessel capacity on global basis. The continued high level of fuel costs on the longer term Differentiation between carries. How can a Line make a difference?
Cellular Fleet Growth vs Global Throughput Source: Alphaliner (February 2013)
Financial performance and the supply chain impact The impact of Carriers failing to achieve a sustainable rate of return on investment. • Further consolidation to achieve economies of scale leading to larger vessels but less sailings • A further reduction of the cost base by increasing slow steaming which will increase transit times. Limited incentives to speed up and make up for delays • Carriers have changed their perception of fixed costs. Fluctuating volumes or inadequate volumes will lead to more blank sailings
MOL approach to over capacity • Containerships: Major Operators/Alliances Share by TEU (as of Apr.2012) Asia / Europe Route G6 MOL APL Hyundai Hapag Lloyd NYK OOCL CYKH Cosco K- Line Yang Ming Hanjin
Alliances benefits A case for G6 • Excellent direct coverage • Improved frequencies • Improved transit times • Increase port coverage • Facilitating the smooth phase in of larger and more economical vessels • Lowering the unit cost of production • A larger entity will be able to adjust capacity to demand, either way, in a more controlled manner Grand Alliance The New World Alliance
MOL Unique selling points How do WE differentiate ourselves • Ensuring Equipment supply at origin • Carrier haulage costs and capabilities • Documentation quality • Price & conditions • Multi Trade Relationships with customers • Financial strength of the carrier • Products expertise (Reefer, OOG) & customer friendly advice
MOL approach to making a difference • We depend on a loyal customer base • We will meet and exceed our customer needs by: • Providing a premier, cost effective and reliable service • Prioritizing safety, environmental protection and financial stability • Our commitment to our customers will be translated in publishing • Key Performance Indicators that show our performance. • www.countonmol.com
Count on MOL GLOBAL Operations Safety Environmental
Count on MOL Count on MOL Establishment of Regional Key Performance Indicators in Europe: 1. Europe Export Invoicing Speed MOL calculates the monthly average speed of issuing import/export ocean freight invoices. The average is taken by dividing the total number of calendar days by the number of first freight invoices.
Count on MOL Count on MOL Establishment of Regional Key Performance Indicators in Europe: 2. Europe Import Invoicing Speed MOL calculates the monthly average speed of issuing import/export ocean freight invoices. The average is taken by dividing the total number of calendar days by the number of first freight invoices.
Count on MOL Count on MOL Establishment of Regional Key Performance Indicators in Europe: 3. Europe Import Invoicing Accuracy On a monthly basis, MOL measures the percentage of ocean freight invoices issued correctly the first time (no credit notes issued subsequently).
Count on MOL Count on MOL Establishment of Regional Key Performance Indicators in Europe: 4. Europe Export Invoicing Accuracy On a monthly basis, MOL measures the percentage of ocean freight invoices issued correctly the first time (no credit notes issued subsequently).
Count on MOL Thank You