# Presentation: 692012

## The Trade Growth Challenge

**Liner Shipping Responses to the Growth of Global Freight**

##   2003 US International Waterborne Trade (X+M): $807.1 Billion

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-   2003 US International Waterborne Trade (X+M): **$807.1 Billion**
-   2003 US Containerized Cargo (X+M): **$491.2 Billion**
**221.3 million ****TEUs**
** ****(13.9 Million Import ****TEUs****, 7.4 million Export ****TEUs****)**
-   **1,040** different containerships
- made **17,250** entrances at US ports
-   Of America’s largest trading partners in containerized cargo ,
- the top 5 are Asian (China, Hong Kong, Japan, Taiwan, and Korea)
- and 9 of the top 15 are Asian  (Thailand, Indonesia, India, Malaysia)

## Foreign Port

**U.S. Port**

*U.S.*
*EXPORTS*

*U.S. *
*IMPORTS*

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**PORTAT**
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**ON**

**CARGO FLOW: Ports are the Key Nodal Points in the Ocean Transportation System**

**Efficient Container Throughput is Critical**

**Investment **
**in Intermodal **
**Infrastructure **
**Helps Prevent **
**Bottlenecks**

## The Growth Challenge:

**Strong Trade Growth** (Long-term planning and investment)

**Trends and Other Challenges:**

-  **Trade Imbalances** (equipment repositioning, service pricing)
-  **Security Measures** (container integrity, access control, tracking, 		and providing advance information)
-  **Environmental Concerns** (air pollution, ballast water, dredging)
** ****Freight Infrastructure Development** (esp. intermodal 	connectors)
** ****Logistics Service Expansion** (value added services)

- Note: Security measures, and environmental concerns are not “balanced” against strategies to respond to growth (i.e., not treated as a trade-off), but are integrated into the industry’s long-term efforts to ensure adequate, reliable, innovative, and efficient services.

## 		CARGO GROWTH’S IMPACT 

**	****ON THE OCEAN TRANSPORTATION SYSTEM**

-  **Equipment Availability:**** **Containers, Chassis
-  **Vessels:** Number of Strings, Vessel Sizes, Innovation
-  **Route Choices:** Destination, Time Sensitivity, Risk, Alternatives
-  **Terminal Operations:**  Organization, equipment, land use, 		environmental impacts
-  **Logistics Services:**  Services and organizational support
-  **Inland Transportation:** Truck, Rail, Barge
-  **Infrastructure Development:**  Dredging, Intermodal Connectors

**To meet the strong growth being forecast, individual liner companies will be making strategic decisions with regard to the services they’ll provide, the resources they’ll need, and their investments priorities.**

## Individual and Collective Responses:

_**Individual and Collective Responses:**_

_**Individual Lines**_** ****[****Market-driven Decisions****]****:****  ****Strategic Planning, ****	****Investment, Pricing****  ****-- ****each**** ****company makes its own decisions on ****	****plans, priorities, and individual contracts w/shippers.**
_**Business Partners**_** ****[****Co-ordination, Collaboration, Compromise****]****:****  ****	****Operational Alliances, Port Authorities, Terminal Operators**
_**Trade Lane Organizations**_** ****[****Information Sharing****]****:****  ****Discussion ****	****Agreements, Conferences**** ****– ****information exchange (expected ****	****demand, supply, vessel utilization) to support company-level ****	****planning and pricing decisions**
_**Industry Trade Association**_** ****[****Analysis, Advice, Advocacy****]****:**** **** ****Legislative ****	****and Regulatory Issues**** ****– ****researches issues and presents liner ****	****industry positions to Congress and government agencies, ****	****generally in coalitions w/port and shipper associations**

## HTTP://WWW.WORLDSHIPPING.ORG

_**For Additional Information**_**:**
-  _**General Information**_**:**** ****Click on “Industry Info”**
** **_**Security Issues**_**:**** ****Click on “Issues of Interest” and then ****	****“Port and Maritime Security”**
** **_**Ballast Water and Air Emissions:**_** ****Click on “Issues of ****	****Interest” and then “Environmental Issues”**
** **_**Infrastructure Issues**_**:**** ****Click on “Issues of Interest” ****	****and then “Maritime Infrastructure” and scroll ****	****down to “Statement”**