The Carriers Supply Chain

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The Carriers Supply Chain
Container Logistics
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Maersk Sealand Part of A.P. Moller Group
The A.P. Moller Group, whose headquarters are at
Esplanaden, Copenhagen, employs over 60,000
people worldwide and has offices in more than 100
countries.The A.P. Møller Fleet comprises more
than 250 vessels with a total deadweight of about
12,000,000 tons and includes container vessels,
tankers, bulk carriers, supply ships, special
vessels and drilling rigs.Besides shipping, the
A.P. Moller Group is engaged in exploration for
and production of oil and gas, shipbuilding,
aviation, industry, supermarkets and IT services.

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MAEU6395667 YTD 2002 Travel
Vancouver 10/17
Winnipeg
Vienna
Toronto
Nagoya
N. Bergen
Newark
Shenzhen 01/10
New Orleans
Long Beach
Hong Kong
San Salvador
(F) 01/10 - Shenzhen -----gt Yantian ---------gt
Long Beach
(E) 02/07 - Long Beach --gt Nagoya
(F) 02/25 - Nagoya --------gt Hong Kong
(F) 03/10 - Hong Kong ---gt Long Beach ----gt
Newark ------------gt North Bergen
(F) 04/09 - Newark -------gt Freeport
---------gt S. T. de Castilla --gt San Salvador
(E) 05/14 - San Salvador -gt S.T. de Castilla -gt
New Orleans
(F) 05/24 - Mobile --------gt New Orleans ---gt
Long Beach -------gt Nagoya
(F) 07/23 - Nagoya -------gt Gioia Tauro ----gt
Koper ---------------gt Vienna
(F) 09/18 - Vienna -------gt Montreal -------gt
Toronto
(E) 10/09 - Toronto -------gt Winnipeg
(E) 10/15 - Winnipeg -----gt Vancouver
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The Effect on Carriers
Headlines
K-Line Scales Down Profit Forecast
American
Shipper 10/1/01
GLOBAL CONTAINER SHIPPING MARKET COLLAPSES
American Shipper
10/01
Liner Outlook Bleak JOC 10/2/01
Med Freight Rates Plummet Fairplay
10/15/01
Rate Collapse Sparks FEFC Action Fairplay
11/7/01
Evergreen Reports Slide in Revenue
American Shipper 10/10/01
State Bank Standing By With Bridging Loan for
Hyundai Lloyds List 11/8/01
A.P. Moller Warns of Lower Profit American
Shipper 10/23/01
Peak Season Brings Coal for Pacific Northwest.
JOC 10/18/01
Freight Rates Freefall Continues Unabated
Containerisation International
8/17/01
West Coast Volume Slumps JOC 9/20/01
Rate and Capacity Ills Prompt New Alliance



Containerization
International, 9/25/01
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Source Clarkson Intelligence Monthly August 2002
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Source Clarkson Intelligence Monthly August 2002
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Source Clarkson Intelligence Monthly August 2002
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Americas Asia Trade
Source Clarkson Intelligence Monthly August 2002
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Source Clarkson Intelligence Monthly August 2002
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Equipment Flow Imbalance
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Approx. 40 of all Import Containers are empty
repositioned from North America!
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Cost Factors
Fleet size - equipment and operating Turnaround
times/Storage Inter-city repositioning, fx
Midwest Empty move to evacuation
port Stevedoring - load, tranship, discharge
moves Full or partial space charters
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Equipment Investment
Global fleet 15 Million Teus Size/Type decisions
important 55/45 operator/leasor ownership
split Lease/Own leverage for RONA 2.75 teus per
containership slot
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Container Days
Halifax
Toronto
Montreal
Vancouver
Winnipeg
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MAEU6395667 While in Canada YTD 2002
Montreal Disch. 09/27 On Rail 09/28
Winnipeg Gate In Mty 10/10 Gate Out Mty 10/15
Vancouver Gate In Mty 10/17
Toronto Gate In Mty 10/07 Gate Out Mty 10/09

Empty
Full
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Cost Avoidance Back Haul Leg
Market expansion, ie breakbulk commodities
Equipment interchange with competitors Equipment
Substitution, fx 40s for 20s Utilize for
Domestic Freight (Cabotage)
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Cost Avoidance Head Haul
Equipment Substitution, fx reefers for
drys One-ways Import transloading to domestic
equipment Pre-planned evacuation triggers
Demurrage charges at destination Yield
Management forecasting tools
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Industry Consolidation
APL Cosco DSR Evergreen Hanjin Hapag-Lloyd Hyundai
K Line Maersk MOL MSC Nedlloyd NOL NYK OOCL PO S
ea-land UASC Yang Ming Zim
APL Cosco Evergreen Hanjin/DSR Hapag
Lloyd Hyundai Maersk MOL MSC NYK OOCL PO
Nedlloyd Sea-land UASC Yang Ming Zim
Maersk/Sea-land Grand New World United Cosco/Yang
Ming/K Line Evergreen MSC Zim
2000
1998
1993
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C.I.T.T Annual Conference
Halifax 11/ 4/02
Thank you