With the global economy still unpredictable, industries across the world are striving to protect their profit margins. This is certainly the case for cargo carriers where fluctuating trade volumes and low freight rates continue to fuel the drive for efficiencies.
3. 2015
MSC Oscar TEU
19,224
2006
Emma Maersk TEU
15,500
1996
Regina Maersk TEU
7,100
1972
Tokyo Bay TEU
2,968
TEU = Twenty-foot
Equivalent Unit, the unit
used to define the capacity
of a container ship.
Source: ABB; Maersk
Bigger ships
require
better
infra-
structure
1956
SS Ideal X TEU
96
To transport the 19,224
TEU of MSC Oscar you
would need:
1,100
Boeing
747s
11,400
Trucks
35
2,400 m
long trains
4. = 10
Of the 255 container vessels
commissioned last year,
60 are over 18,000 TEU.
As larger vessels are
introduced, there is a
cascade effect, with smaller
boats becoming feeders.
The average size of a cargo
vessel on the Asia - Europe
trade route is now around
14,000 TEU.
Source: JOC; ABB; Container Management Magazine
Bigger ships
require
better
infra-
structure
5. Bigger ships
require
better
infra-
structure
The Panama Canal expansion has
more than doubled the size of ships
able to pass through –
from 5,000 TEU to 13,000 TEU.
Ports often need bigger quays and
deeper berths to accommodate
significantly larger ships.
Existing shoreside infrastructure
in many ports is insufficient,
e.g. cranes, storage, transportation.
6. Time is
money
The cost per day in port for a
12,600 TEU vessel is around
$60,000 dollars.
Cutting the time needed to
unload and reload represents
significant cost reductions.
By optimising equipment and
capacity usage, automation can
boost overall performance.
Source: Lloyd’s List
7. Increased
Competition
Source: Lloyd’s List
Softening growth in container
trade means ports are
competing for larger vessels.
European and Asian ports
are leading the way in
automating their operations.
Rotterdam World Gateway
aims for 6,000 (container)
moves per day.
9. Mooring
systems
Automatic mooring systems can reduce mooring time,
from 20 minutes to as little as 30 seconds,
as well as increase vessel stability in port.
Image: Cavotec
12. Gates Automated gates register and direct
cargo traffic more quickly.
Image: Portstrategy.com
13. Loading New SOLAS (Safety of Life at Sea) legislation requires
verification of gross mass before containers are loaded.
Automated systems make it easier to ensure compliance.
15. Improved
efficiency
and safety
Better handling performance
reduces time in port
(and for the journey overall).
Safer working
environment
as equipment
is remotely
controlled
from an office.
Set working
hours for
staff means
less fatigue.
Operations can continue under
darkness and in previously
prohibitive weather conditions.
18. Personnel
Source: Lloyd’s List; Port of Los Angeles
Different skill set required – shift
from mariners to system managers.
Disputes with labour unions –
estimated 40%-50% loss
in longshore jobs in Los Angeles
as result of automation.
19. Technology
Terminal operating software needs
to be fail-safe. An AGV being
unable to identify a particular
container in a stack could have
significant consequences.
As with the ships themselves,
port management systems could
become potential targets
for cyber attacks.
Source: Lloyd’s List
20. Costs
Source: Lloyd’s List
Cost of creating a world-class
fully automated port estimated at
$400-$600M.
Maintenance costs are also significant
as specialists are required.
Investment in infrastructure beyond
the port is vital to avoid negative impact
on local communities.
21. Key questions
for insurers:
Has the whole ship-to-gate functionality been
considered when calculating risks?
Can shoreside infrastructure keep up
with unload capacity?
Where are the key bottlenecks in the system
overall and do you understand them?
How seriously would business be affected
if something went wrong?
Has the equipment installed been chosen
with regards to the local geography?
Do you understand the parties and contracts
surrounding the operation of the terminals and
who is responsible for which functions?