Maritime Crisis from 1970-2010 (Shipping and its importance in international logistics)

Presented to Juan Alejandro Vasquez as a note of work in the subject international logistical

Presented by Santiago Cortes; Daniela Seplveda. Catholic University of Pereira.

MARITIME CRISIS FROM 1970-2010

In the following essay is to analyze and understand the behavior of shipping and its importance in international logistics, will discuss the status of shipping containers, among others, to begin we must ask is what is shipping and how is it done?

Ship transport is watercraft carrying goods . Sea transport has been the largest carrier of freight throughout recorded history. Although the importance of sea travel for passengers has decreased due to aviation, it is effective for products transport. Transport by water is cheaper than transport by air. Ship transport can be over any distance by boat, ship, sailboat or barge, over oceans and lakes, through canals or along rivers. Shipping may be for commerce, or the order military. Virtually any material that can be moved, can be moved by water, however water transport becomes impractical when material delivery is highly time-critical. "General cargo" is goods packaged in boxes, cases, pallets, and barrels. Containerization revolutionized ship transport in the 1960s. When a cargo is carried in more than one mode, it is intermodal or co-modal.1

Website www.maritimetransport.com/careers/ page 2, Link by wikip.

The evolution of freight rates for container market

Maritime

freight

rates are an important component of

the costs

of

international

marketing, which is why Ocean freight rates are determined by supply warehouses and ships is rigid and any increase in demand for wineries produce a sharp increase in rates. The rigidity of the wineries offer because the demand the for

shipbuilding 'long', which makes the adjustment of supply to the demand is very slow. and also the strong increase in

requirements of expenses of

operating

the vessels by increased crude oil are a major factor in Maritime freight rates.

Dry bulk shipping Voyage charter is a subtype of time charter in which the charter takes responsibility for the crewing and maintenance of the ship during the time of the charter, assuming the legal responsibilities of the owner and is known as a disponent owner. In a voyage charter, the charterer hires the vessel for a single voyage, and the vessel's owner (or disponent owner) provides the master, crew, bunkers and supplies In the history of freight have Exchange: been identified 4 major index produced by the Baltic

Baltic Exchange is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 550 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic.

As the index is derived from polling the market and not traded, there is no speculative factor influencing the movement of the index. This index is a concurrent indicator of the growth or decline in global cargo trades.

Capezise Index: One of the subset of Baltic indices is the Baltic Capesize Index, BCI, which tracks the shipping costs on the largest of the dry bulk ships, the Capesize. Capesize vessels are those in excess of 80,000 dwt and primarily carry coal and iron ore.

The Baltic Panamax Index (BPI): is calculated from the weighted, average rates on major routes, both voyage and timecharter, as assessed by a panel of brokers.

The Baltic Capesize Index (BCI): is calculated from the weighted, average rates on major routes, both voyage and timecharter, as assessed by a panel of brokers.

The Baltic Handymax Index (BHMI): is calculated from the weighted, average rates on major timecharter routes, with two trial voyage routes, as assessed by a panel of brokers.

The Baltic Dry Index (BDI): is the average of the Baltic Handymax Index (BHMI), the Baltic Panamax Index (BPI) and the Baltic Capesize Index (BCI). The BDI provides a good general indicator of movement in the dry bulk market, and continues the established time series of the Baltic Freight Index (BFI) which was introduced in 1985.

TRANSPORT OF BULK LIQUID (OIL AND DERIVATIVES)

According to the above, this index of the maritime industry is controlled by The Dirty Tanker Index (oil transportation) and the Clean Tanker Index (transport of oil products). The Baltic Exchange Dirty Tanker Index (BDTI) and Clean Tanker Index (BCTI) were introduced in 1998, and in April 1999 the Baltic Cape Index (BCI) and the Baltic Panamax Index (BPI) became active. This was followed by the introduction of the Baltic Handy Index (BHI) in November 1997, which then became the Baltic Handymax Index (BHMI) in 2001. In January 2006 the Baltic Supramax Index (BSI) superseded the BHMI as part of the general evolution of ship types and the Baltic Handysize Index was introduced in 2007 to represent the smaller dry bulk vessels trading in the market.2

Magazine Report Clarkson Securities Page 12, 2005

The behavior of

the rates for this sector is also different ,

because

reflecting

the of

high volatility that makes the periods of low or 2002 and in high at the

determination

time analyzed. they are in points earned by

2009. Similarly, the highest

Maritime Bulletin 44 are in late 2004 and mid 2008.

Supply and demand of maritime

Supply

and demand of

maritime have

transport have a arisen from the

positive point

performance, of view of

taking into account changes that

economic

supply and demand have increased regardless of certain times of world crisis start with the following analysis: These last six months the world of international shipping of goods

suffered major global tensions that directly affected the main sectors of our economy. Since last December to day logistical problems and, most importantly, increases in sea freight, exports and imports penalized companies engaged in natural stone. The brutal rise in imports of raw materials from China, the shortageof containers in countries like Brazil, the lack of mercha nt ships in South Africa, India or Finland, or the reduction of the fleet ready in the Eastern Mediterranean due to hardening safety inspections, among otherfactors,forced a strong and steady increase in worldwide. shipping freight

According to the 2009 Ranking of container movements in Latin America and the Caribbean

All ports have generally shown significant growth in relation to other world ports, the only port that did not exceed expectations was that of Santos (Brazil), Something paradoxical as this port ranks first in the ranking for a long time . But lately the growth has stalled, one of the reasons is the port congestion and strong competition among others. As for the port of Cartagena Colombia has built a remarkable growth, being able to compete with the port of Buenos Aires (Argentina). In conclusion it is evident the growth of Latin America, these increases were due to internal conditions of each country. But he has also submitted that due to disasters, accidents, congestion and other calamities that prevent full mobilization

and

subsequent

growth.