This document discusses the shipping industry and economics. It provides an overview of CSAV, one of the oldest shipping companies in the world based in Chile with a fleet of 64 ships and capacity of 277,000 TEUs. It also discusses trends in the industry like the use of larger vessels that provide economies of scale but less flexibility. Environmental regulations around reducing pollution are discussed as opportunities for technologies like LNG fuel. Ports will need to evolve to handle much larger vessels with over double the container capacity within the same timeframes and integrate efficient intermodal infrastructure.

1. Shipping's Trade and Economics
52th International Boat Salon
By Graziano Previato
Genoa, Oct 12, 2012

2. CSAV Profile
More than 140
years of history…
…based in Chile, CSAV
is one of the oldest
shipping companies in
the world
…with strong leadership
in the routes to and from
both coasts of South
America
…as well as important
presence in the traffics of
main emerging markets.
CSAV Group has 36
liner services and 12
special services
…placed 20th
worldwide in terms of
capacity.
…operated a fleet of 64
ships with a capacity close
to 277,000 TEUs as of
June 2012
…CSAV Group today is
present in the most
important world markets
…we also offer other
kinds of cargo services
such as refrigerated,
frozen, bulk and vehicles.
After the latest successful capital increase of
US$ 1,200 million, The Luksic Group became
the largest shareholder with 37.44% of the
company.

3. The Vessel's Economics
From Maritime Economics: “...Thus, a ship
is not just a transportation vehicle, it is a
speculation” and “...ship finance is
generally regarded as a specialist business
and, for example, the rating agency
Moody’s classifies it as ‘exotic’ finance...”

4. Freight Market: Shanghai Container
Freight Index vs Utilization
Source: Alphaliner

5. Solution: Giant Vessels
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Advantage: far lower
bunker/capital per Teu
Disadvantage: a far lower
flexibility;
To obtain the estimated
advantage, the vessel has
to be quite full.

6. The Environmental Pressure - Opportunities
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International Convention
for the Prevention of
Pollution from Ships
(MARPOL) reduce SOx
From 1/1/2013 the EEDI
(Energy Efficiency Design
Index) will affect quite
every new building.
LNG? Avoid SOx, reduce
NOx, reduce CO2 by 25%

7. How the Port will have to evolve
Harbors have to be ready to receive new 22000 Teus
vessels, as long as 460mt, wide upto 60 mt and height upto
30 mt;
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More than the double of containers will have be loaded
and discharged... possibly in the same timeframe...
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The big challenge will be the intermodal infrastructure with
the Port as a rapid, efficient HUB
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DnV said that in 40 years LNG will be the dominant fuel for
Vessels...
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