Demand of maritime transport report

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Maritime Economics Click on the globe to startReporter : Juvy B. RemodoProfessor : Lourdes D. Mendoza

Demand of Maritime Transport

Structure of Seaborne Trade

Major Factors affecting the Demand of Maritime Transport

Geographical Features of Maritime Demand

To Illustrate and Identify the Structure of Seaborne Trade

To identify the major factors affecting the demand of maritime transport.To illustrate and compare the geographic features of maritime demand.

Seaborne Trade Gross Domestic Product (GDP) The exchange or transfer of capital, goods, and services via sea acrossinternationalborders or territories. The sum (US Dollar) of all spending on goods and services in a nation's economy in a year. The formula for GDP is: GDP = C + I + G + (Ex - Im),The parts of the formula are simple:C = total spending by consumersI = total investment (spending on goods and services) by businessesG = total spending by government (federal, state, and local)(Ex - Im) = net exports (exports - imports)

Forex StrategyGross National Product - GNPEstimate of total value of all the final products and services produced in a given period by the means of production owned by a country's residents

GNP is commonly calculated by taking the sum ofpersonal consumption expenditures, private domesticinvestment, government expenditure,net exports, and any income earned by residents from overseas investments, minus income earned within the domestic economy by foreign residents.

Structure of Seaborne Trade

Oil, Gas, Coal & Coke, Molten Sulphur, Bio fuels

Metal Ores: Iron Ore, Scrap Steel, Manganese Ore, Bauxite, Non-ferrous metal oresMinerals: Salt, Sulphur, Limestone, Sand & Gravel

Dry Cargo Wheat, Corase grains, Manioc, Oilseeds and Cakes, Animal feeds, rubber, skinsRefrigerated Fruit & vegetables, meat & fishLiquid vegetable oils, wine, fruit juices, molassesLive Animals Logs, Lumber, Wood chipsEnergyMiningAgricultureForestryLiquid Bulk Coal, Coke, Crude Oil & GasDry BulkMetal Ores, Metals Scrap, Crude, Fertilizers, SaltDry BulkAgricultural materials and forest products shipped to consuming marketsLiquidVegetable Oils & fatsUnit LoadLogs, lumber, paper, pulpSea TransportProcessingRaw MaterialOil Refining LPG, NapthaGasoline, gas oilChemicals OrganicInorganicSteelPig IronSteel ingotsSteel products

ManufacturingGeneral CargoManufactured goods by material shipped to manufacturersMotor VehiclesCars & TrucksFarm vehiclesLight EngineeringWhite GoodsElectrical GoodsFood Processing Meat & DairySugar refiningTextiles, Shoes & ClothingTextiles, Shoes & Clothing

End UserLiquid Bulks Liquid products of Oil refining and chemical processingGeneral CargoManufactured Products of all types shipped to companies and private end usersPower GenerationPower Stations are major users of oil, coal and gas, often dealing direct with the primary supplies.TransportMajor user of energy, vehicles & infrastructure (Cars, rail & air travel, ships)ConstructionUses steel, timber, products, non-ferrous metal (residential, commercial, infrastructure)End MarketsCompaniesMajor market for energy, buildings, capital goods and consumables.RETAILERSConsumersThe final market, but shipping industry has little direct contact and is little knownBulk ShippingSpecialized ShippingLinerAir Freight

Sea Transport

Parcel Size Distribution (PSD) FunctionA parcel is an individual consignment of cargo for shipment. is an arrangement in which goods are left in the possession of another party to sell

PSD Function describes the range of parcel sizes in which the commodity is transported. It answers the question of which cargoes go in which ships It is the unit used in the daily practice for sending and receiving all kinds ofcargo.Factors that limit the parcel size:20,000 and 160,000 tons of coal150,000 iron ore20 cases of wineThestocklevelAvailabledepthEconomies of scale

Freight CostINCOTERMSDuties & Taxes Price Speed(Distance) ReliabilitySecurityService OrientedOn-Time Stock Control SystemCargo InsuranceType of VesselFour Main Aspects in the Transport Service

Structure of International Seaborne Trade, 2014 (UNCTAD)

Volume of seaworld shipments expanded by 3.4% (2014) 2/3 of the Total are dry cargo.Share of tanker trade (crude oil, petroleum & gas) have slightly declined from 30% (2013) to 28.7% (2014)

Developments in International Seaborne Trade, selected years (millions of tons loaded) Ton-Miles: It is the tonnage of cargo x average haul.

World seaborne trade, by country group, 2014 (percentage share in world tonnage)

World seaborne trade, by region, 2014 (percentage share in world tonnage)

World Seaborne Trade in Cargo ton-miles by cargo Type, 2000-2015 (billions of ton-miles) In 2014 : Growth in ton-miles is 4.4% from 3.1% in 2013


1. World Economy2. Seaborne Commodity TradesCrude OilOil ProductsIron OreCoalGrainContainers3. Average Haul(av. distance cargo shipped)4. Random Shocks(e.g. financial crisis)5. Transport Costs(driven up and down by the market)Demand(billion ton miles)

Cargo Shippers Decision

(1a) Business Cycles determine short term cycles(1b) Regional Development cycles determine the medium to long term trends in seatrade.


The World EconomySeaborn Commodity TradesAverage HaulRandom ShocksTransport Cost

Determine the broad volume of goods traded by sea.

Developments in particular commodity may modify growth trends.

2 Different AspectsBusiness Cycle (short term fluctuation)(affected by External & Internal Factors)Trade Development Cycle(long term fluctuation)

2 Parts*Short Term Volatility(seasonality of some trades)* Long Term TrendsChanges in the demandChanges in supply sourceProcessing RelocationTransport PolicyThe average distance material is transported from where it originates to where it is depositedWeather changes, wars, new resources, commodity price changes, political unrest etc. (Economic Shocks)The expenses involved in moving products or assets to a different place, which are often passed on to consumers.The final demand in shipping services is measured in Ton Miles.It is the tonnage of cargo x average haul. Causes of Short Term Fluctuation:The multiplier and acceleratorTime-lagsStockbuildingMass psychologyCauses of Long Term FluctuationChanges in Economic Structure (countries)Depletion of local resources to meet local demand

A load of 10 tons carried 200 miles is thus described as 2,000 ton-miles.

Assuming that the load is carried in a 10-ton lorry which costs $18 per mile to run, the total cost of the job-is $3,600., and the cost per ton $360. The cost -per ton-mile is $1.8., found by dividing the total


Triangular tradeorTriangle tradeis a historical term indicating trade among three ports or regions. Triangular trade usually evolves when a region hasexportcommodities that are not required in the region from which its majorimportscome

https://www.bimco.org/Reports/Market_Analysis/2010/0423_Need_for_rethinking.aspxcomputationGeographical Features of Maritime Demand196 Countries 4936 Ports

The Panama Canal is a man-made 48-mile waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean. The canal cuts across the Isthmus of Panama and is a key conduit for international maritime trade.Length:77kmThe Suez Canal is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez

Geographical Features of Maritime DemandThe science which deals explicitly with complex transport problemsIt involves integrating transport modes , storage facilities, information management and performance measurement and monitoring.LOGISTICSHow do you optimize transport logistics? DistanceShip SpeedShip SizeShip TypeCargo Volume, Service Frequency & Cost4 Maritime Logistics VariablesAffects Cost and Journey TimeBigger Ships Produce Economies of Scale and have lower unit cost per tonAffect Logistical efficiencyDetermines the journey time, the bunker cost and the design of the shipLevel of Freight RatesVessel Size RestrictionsTransit Times / Alternative RoutesPanama and Suez Canal TollsFuel CostsPort DisruptionsLabor RelationsContainership CapacityInland Rails and Road Transport CostAvailable capacity in Key Chokepoints

World Export Map

WTO , 2014 Trade Growth

https://www.searates.com/reference/portdistance/?A=ChIJdZOLiiMR2jERxPWrUs9peIg&D=12117&G=15332&shipment=1&container=20st&weight=1&product=0&request=0&


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Demand of maritime transport report