A SHIPPING LINE PERSPECTIVEOCTOBER 2018

Pleased to meet you|2

DOMINGOS SILVA JUNIOR

Brazilian from Santa Catarina

Nearly 20 years with Maersk

Recent Roles

Panama 2018 – Head of Port Optimization and Husbandry Performance (Americas)

London 2015-2018 – Head of Vessel Efficiency – 2M (Maersk and MSC alliance)

Mumbai 2013-2015 – Head of Global Voyage Performance Centre (Global Scope)

Panama 2010-2013 – Head of Stowage and Nautical Projects (Latin America)

Our perspective on the new bunker regulation

1 Commitment to sustainable shipping and Port optimization support emission reduction

2 Brazil as a very important region

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Will speak today about|3A SHIPPING LINE PERSPECTIVE

IMO 2020 Regulations|4

AT PRESENT

As of January 1st 2020, new Sulphur regulations will require all vessels to emit less Sulphur particles

3.5%2020

0.5%

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How can shipping lines comply?

Use fuel with 0.50% Sulphur

1 Install scrubbers (exhaust gas cleaning systems) onboard

2 Use LNG3

THERE ARE THREE WAYS IN WHICH SHIPS CAN COMPLY WITH THE NEW RULES

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What does this mean for container shipping?

of the global fleet will comply by using 0.5% fuel by 2020

Vast MajorityRise in cost for container shipping industry

+ 15 billionExtra fuel costs for Maersk

+2 billion

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What are we doing to prepare?

Maersk is looking into all possible and available options to comply with the 2020 sulphur cap, that is low sulphur fuels, LNG, and scrubbers

To enable customers to plan for 2020, Maersk has introduced a simple, predictable surcharge (BAF) to recover the extra costs

Various initiatives are being taken to secure the right compliant fuels at the best possible price

Investments have been made in scrubbers for a limited number of vessels

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We are also committed to sustainable shipping

Innovation: A modern fleet, radical vessel upgrades, leading network efficiency and cutting-edge fleet performance management are key

As of 2017, Maersk has reduced the CO2 emissions per container transported by 43%

Maersk has set a 2020 target of reducing CO2 emissions per container moved by 60%(baseline 2007)

ENABLING A LOW CARBON FUTURE BY LOW IMPACT SHIPPING

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Photo credits from left to right: Keith Lambert – Nike’s VP Global Logistics, Lee Kindberg – Maersk Line Sustainability, Samantha Callas – Nike’s Global Operations & Logistics Director, James Dunn – Maersk Line’s Key Client Manager for Nike

Nike Supply Chain Sustainability IndexMAERSK recognised in 2017 as the only ocean carrier with a Gold Ranking

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Three key aspects on port optimizationPort efficiencies can substantially support emission reduction

A shipping line perspective

Utilization: Create operational opportunities to ensure our assets are fully utilized

Efficiencies: Work in unison with internal and external stakeholders seeking short port stay

Sustainable shipping: Support and comply with environmental programs to reduce emissions

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Brazilian ports into perspective

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Brazil - important locationsCurrent Port restriction compared to key destinations

0

2

4

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13,5

12,8

Itapoa

Para

nagua

Sepetiba

Santo

s

Itaja

i

Rio

Gra

nde

Tanjier

Alg

eciras

14,3

16,3

12,5

11,8

12,2

17,0

-21%340 336 336 335

306336

430 425

0

50

100

150

200

250

300

350

400

450Para

nagua

Rio

Gra

nde

Santo

s

Sepetiba

Alg

eciras

Itapoa

Itaja

i

Tanjier

MAX LOA PORT DRAFT RESTRICTION

Note: Public information

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Brazil into perspective - SantosAdditional time in port – commercial and environmental impact

Note: Internal records

-25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 40 45 50

12,0

11,0

11,5

12,5

13,0

14,0

13,5

14,5

15,0

Delayed on departure

Draft

Arrived from previous port late and recovered on the call.

15h – 13,95m

46h – 14,30m

30h – 12,90m

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Future forums like this oneWe would like to engage on discussion related to these three aspects

Sustainable shipping: Environmental incentives to boost lines participation on sustainability programs

Digitalization: A common platform for lines, terminals, fleets and authorities to interact.

Nautical improvements: Deeper, safe and restriction free ports.

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Q&A

THANK YOU

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