Do you really know me?

1. LOOKING INSIDE THE BOX: EVIDENCE FROM THE CONTAINERIZATION OF COMMODITIES AND THE COLD CHAINJean-Paul RodrigueDept. of Global Studies & Geography, Hofstra University, New York, USATheo NotteboomITMMA - University of Antwerp and Antwerp Maritime Academy, BelgiumEuropean Conference on Shipping & Ports – ECONSHIP 2011Chios, Greece, June 22-24 2011

2. Do you really know me? Growth Factors Market Potential What’s in a box? Commodities inContainers Commodity and Cold Chains The container is more than a transport unit; a supply and commodity chain unit.

3. Growth Factors for Containerization

4. Containerization as a Diffusion Cycles:World Container Traffic (1980-2010) and Possible Scenarios to 2015 Adoption Acceleration Peak Growth Maturity 1966-1992 1992-2002 2002-2008 2008 - Reference New (niche) services Productivity gains Network development Productivity multipliers Divergence Depression Niche markets Massive diffusion Network complexities

5. The Main Driving Forces of Containerization: The Importance of Niches

6. Market Potential

7. Commodity Group and Containerization Potential

8. Growth Factors behind the Containerization of Commodities

9. CRB Index (CCI), Monthly Close, 1970-2011 Paradigm shift in input costs… Reaping the consequences of monetary policy. Could be positive for containerization…

10. Income per Capita and Perishable Share of Food Imports “Permanent global summertime”

11. The Usual Suspect: China’s Share of the World Commodity Consumption, c2009

12. Continuous Commodity Index and Baltic Dry Index, 2000-2011 (2000=100)

13. Continuous Commodity Index and Average Container Shipping Rates, 1994-2011 (1994=100)

14. From Bulk to Containers: Breaking Economies of Scale

15. Containerized Cargo Flows along Major Trade Routes, 1995-2009 (in millions of TEUs) Empties; an export subsidy

16. Commodities in Containers

17. Challenges for the Containerization of Commodities Balance between retail, intermediate goods and commodities

18. Challenges for the Containerization of Commodities

19. Challenges for the Containerization of Commodities

20. Challenges for the Containerization of Commodities

21. Asymmetries between Import and Export-Based Containerized Logistics Customer Distribution Center Import-Based Inland Terminal Gateway • Many Customers • Function of population density. • Geographical spread. • Product customization. • Incites transloading. • High priority (value, timeliness). Repositioning Supplier Export-Based • Few Suppliers • Function of resource density. • Geographical concentration. • Lower priority. • Depends on repositioning opportunities.

22. CONTAINERIZED COMMODITIES AND COLD CHAINS

23. Bulk and Containerized Commodity Chains: An Emerging Complementarity Cost / volume driver Low frequency Dedicated terminals One way flows Bulk Commodity Chain Supplier Customer Port Point-to-Point Consolidationcenter Time / flexibility driver High frequency General terminals More balanced flows Complementarity Container port Pendulum Services Intermodal terminal Containerized Commodity Chain

24. The Cold Chain: A Highly Constrained Niche

25. Conditional Demand: Shelf Life of Selected Produce

26. Conditional Demand: Lettuce Shelf Life by Storage Temperature

27. Temperature Integrity along a Cold Chain Potential integrity breach Temperature Range Temperature Potential integrity breach Time Transport Unloading – Warehousing – Loading Transport

28. Reefers and Source Loading: Securing Cold Chain Integrity Gain 25 days of shelf life (10 days net gain)

29. Slow Steaming: Potential Impacts on Commodities and the Cold Chain

30. Conclusion: Commodities and the Cold Chain as Value Propositions