The Trade Growth Challenge

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The Trade Growth Challenge

• Liner Shipping Responses to the Growth of Global
  Freight

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• 2003 US International Waterborne Trade (XM)
  807.1 Billion
• 2003 US Containerized Cargo (XM) 491.2
  Billion
• 221.3 million TEUs
• (13.9 Million Import TEUs, 7.4 million Export
  TEUs)
• 1,040 different containerships
• made 17,250 entrances at US ports
• Of Americas largest trading partners in
  containerized cargo ,
• the top 5 are Asian (China, Hong Kong, Japan,
  Taiwan, and Korea)
• and 9 of the top 15 are Asian (Thailand,
  Indonesia, India, Malaysia)

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CARGO FLOW Ports are the Key Nodal Points in the
Ocean Transportation System
I N L A N D T R A N S P O R T A T I O N
I N L A N D T R A NS PORTAT I ON
U.S. EXPORTS
Efficient Container Throughput is Critical
Foreign Port
U.S. Port
Investment in Intermodal Infrastructure Helps
Prevent Bottlenecks
U.S. IMPORTS
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The Growth Challenge
Strong Trade Growth (Long-term planning and
investment)
Trends and Other Challenges

• Trade Imbalances (equipment repositioning,
  service pricing)
• Security Measures (container integrity, access
  control, tracking, and providing advance
  information)
• Environmental Concerns (air pollution, ballast
  water, dredging)
• Freight Infrastructure Development (esp.
  intermodal connectors)
• Logistics Service Expansion (value added
  services)

Note Security measures, and environmental
concerns are not balanced against strategies to
respond to growth (i.e., not treated as a
trade-off), but are integrated into the
industrys long-term efforts to ensure adequate,
reliable, innovative, and efficient services.
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CARGO GROWTHS IMPACT ON THE OCEAN
TRANSPORTATION SYSTEM
To meet the strong growth being forecast,
individual liner companies will be making
strategic decisions with regard to the services
theyll provide, the resources theyll need, and
their investments priorities.

• Equipment Availability Containers, Chassis
• Vessels Number of Strings, Vessel Sizes,
  Innovation
• Route Choices Destination, Time Sensitivity,
  Risk, Alternatives
• Terminal Operations Organization, equipment,
  land use, environmental impacts
• Logistics Services Services and organizational
  support
• Inland Transportation Truck, Rail, Barge
• Infrastructure Development Dredging,
  Intermodal Connectors

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Individual and Collective Responses
Individual Lines Market-driven Decisions
Strategic Planning, Investment, Pricing -- each
company makes its own decisions on plans,
priorities, and individual contracts
w/shippers. Business Partners Co-ordination,
Collaboration, Compromise Operational
Alliances, Port Authorities, Terminal
Operators Trade Lane Organizations Information
Sharing Discussion Agreements, Conferences
information exchange (expected demand, supply,
vessel utilization) to support company-level
planning and pricing decisions Industry Trade
Association Analysis, Advice, Advocacy
Legislative and Regulatory Issues researches
issues and presents liner industry positions to
Congress and government agencies, generally in
coalitions w/port and shipper associations
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• For Additional Information
• HTTP//WWW.WORLDSHIPPING.ORG
• General Information Click on Industry Info
• Security Issues Click on Issues of Interest
  and then Port and Maritime Security
• Ballast Water and Air Emissions Click on
  Issues of Interest and then Environmental
  Issues
• Infrastructure Issues Click on Issues of
  Interest and then Maritime Infrastructure and
  scroll down to Statement