Vessel Accumulation
and Cargo Value
Estimation© 2017 IHS Markit. All Rights Reserved.

2Agenda• Industry Facts – how trade data can help
• Data Sources and Limitations• Vessel Cargo Accumulation: Examples of accumulation on
containerized and bulk vessels• Port Cargo Accumulation: Hurricane Sandy Impact and Tianjin
Explosion• Most and Least Valuable Commodities Per TEU© 2017 IHS Markit. All Rights Reserved.

3

Insurance Industry Overview
How much capital is laid out annually on marine
insurance?

© 2017 IHS Markit. All Rights Reserved.

4

USD 29.9 Billion Premiums issued in 2015*

Allocation of Insurance Premiums

15%25%7%
53%

Transport / Cargo
Global Hull
Offshore EnergyMarine Liability*IUMI 2016, Genoa© 2017 IHS Markit. All Rights Reserved.

5USD 15.7 Billion Cargo Premiums issued in 2015*• Tianjin port explosion largest single loss event ever
• Auto industry major contributor to cargo/stocklosses

BBC*IUMI 2016, Genoa© 2017 IHS Markit. All Rights Reserved.

6USD 7.5 Billion Hull Premiums issued in 2015*• Gross tonnage has increased 150%+ in last 20 years• Global marine hull premiums has dropped 25% since2012• Inflow of high value vessels continues, outweighsvalue reduction on renewals*IUMI 2016, Genoa© 2017 IHS Markit. All Rights Reserved.

7

Data Sources© 2017 IHS Markit. All Rights Reserved.

Data Sources For Analysis

AIS ShipMovements

GlobalTradeStatistics

MARITIME& TRADE

Ship Data© 2017 IHS Markit. All Rights Reserved.

Bill ofLading9Vessel Information© 2017 IHS Markit. All Rights Reserved.

10Benjamin Franklin Cargo Accumulation
The CMA-CGM Benjamin Franklin has capacity to carry over 18,000 TEUs and is thelargest vessel to ever call the United States and was carrying in excess of 985 million
USD.

© 2017 IHS Markit. All Rights Reserved.

11Event Information© 2017 IHS Markit. All Rights Reserved.

12Cargo and PortInformation
Total US–centric value aboard the
CMA CGM Benjamin Franklin Q2 sailing

Total value by US company: Imports
First Solar Electric

38,830,000

GEA Products LP

26,993,000

Sunbeam Products

13,687,000

Kemin Europa NV

11,595,000

K Mart

5,746,000

Ameriwood Industries

5,536,000

Fuyao Automotive

4,642,000

Jimco Lamp and Manufacturing

3,945,000

020406080Value, $ millions

Total value by US port
Seattle3,591,339

WAMTORID

WY

Exports:

79,865,000

Oakland
22,894,105

Imports: 986,682,000

NVUTCALos Angeles
13,876,081

COExports
Imports
ARSource: IHS MarkitNM© 2017 IHS Markit. All rights reserved. Provided “as is”, without any warranty. This map is not to be reproduced or disseminatedand is not to be used nor cited as evidence in connection with any territorial claim. IHS is impartial and not an authority on
international boundaries which might be subject to unresolved claims by multiple jurisdictions.

© 2017 IHS Markit. All Rights Reserved.

100

13MSC Flaminia
The MSC Flaminia suffered a fire onboard while carrying over $115 million USD in cargo.
The resulting cargo losses and general average expenses were significant. Detailed bill oflading information shows which exporters were most impacted by the incident.

© 2017 IHS Markit. All Rights Reserved.

14MSC Flaminia Voyage String
THE MSC Flaminia made aregular voyage that called
Houston, New Orleans, andCharleston before heading
across the Atlantic. This isthe exact string she madebefore the casualty.

The MSC Flaminia voyage
1225 was involved in theincident. On board at the time
were 2,976 containers
carrying an average of about$38k worth of cargo percontainer.
© 2017 IHS Markit. All Rights Reserved.

15MSC Flaminia: Shippers Impacted and Value (USD)
General Logistics –USD 16.5m

Southern Recycling –USD 13.2m

Total value by US exporter
General Logistics Inte... 16,559,000
Southern Recycling SA...13,209,000
9,406,000
N A S Services
ExxonMobil Lubricants 8,617,000
7,732,000
Panal Pina
Ascend Performance M...5,543,000
4,382,000
Dow Chemicals
4,024,000
ICC Chemicals
DHL Global Forwarding 3,509,000
3,079,000
Mercedes Benz US
Newport Tank Container...2,885,0000246810Value, $ millions© 2017 IHS Markit. All Rights Reserved.

12141618

16MSC Alexandra incident
The MSC Alexandra was damaged in April 2016 in a collision with the very large crude
carrier, Dream II, in the Singapore Strait.

© 2017 IHS Markit. All Rights Reserved.

17Casualty Position on Map
The spatial layering of verified events can lend more insight when seen on a map. Thisslide shows the location of the collision between The MSC Alexandra and Dream II on 3,August 2016.

© 2017 IHS Markit. All Rights Reserved.

18Vessels Involved
MSC Alexandra

Dream II••The Dream II wascarrying an estimated$190,000,000 worth ofcrude oil at the time ofcollision.
Cargo was notdamaged in thisparticular incident, but
the vessel did go forrepairs for hulldamage.

© 2017 IHS Markit. All Rights Reserved.

••

The MSC Alexandra
was a transportingcargo between Italyand China.
Suffered both cargoloss and hull damage.

19Italy – China Waterborne Trade Market

The Italy to China market is sizeable and highly valuable. Understanding the scope and sizeof a market helps to assess potential risk along trade routes.
5,971 TEUs of cargo are traded per week$231 million of cargo value traded per week

© 2017 IHS Markit. All Rights Reserved.

20Typical Volumes Moved

The top 15 commodities listed above range in value from relatively cheap TEUs worth of Wood andWood Products in large volumes through very expensive textiles on this trade. Understanding thismarket composition allows underwriters to have a better idea of potential risk.
© 2017 IHS Markit. All Rights Reserved.

21

Estimating Bulk Tanker
Accumulation© 2017 IHS Markit. All Rights Reserved.

22

Eagle Boston Accumulation© 2017 IHS Markit. All Rights Reserved.

23

Eagle Boston Accumulation© 2017 IHS Markit. All Rights Reserved.

24

Estimating Cargo Accumulation for Bulk Tankers• There are cases where bills of lading are not necessary at all to estimate cargo on board avessel> Bulk Tankers are the best example of this, and the analysis can be done between any
two ports on earth.
> Using information on vessel positioning, port callings, and depth in the water an
estimate of the total volume of cargo on board can be created.
> To apply a value estimation, one may use global trade statistics. Based on historical
trade flows and volumes we can estimate value figures based on the volume on board.
> By measuring loading and discharging of cargo, one can monitor accumulation over thecourse of a string.

© 2017 IHS Markit. All Rights Reserved.

25Port Accumulation Information© 2017 IHS Markit. All Rights Reserved.

26Port of NY/NJ© 2017 IHS Markit. All Rights Reserved.

27Hurricane Sandy
Hurricane Sandy had a huge impact on the Port of NYNJ vs. the rest of the US east coast interms of import volume. The week before Hurricane Sandy, NYNJ accumulated $2.3 billion
worth of value. We can see that in the weeks following Sandy, the entire east coast ports
increased their accumulation.

New YorkOther© 2017 IHS Markit. All Rights Reserved.

28Port of NY/NJ Typical Cargo Accumulation

Typical values for commodities imported into the Port of NY/NJ are over $2.5 billion per week.
The major commodities and companies that have the most cargo value going through the port
are listed above.

© 2017 IHS Markit. All Rights Reserved.

29Chinese Ports© 2017 IHS Markit. All Rights Reserved.

30

Throughput in China’s Districts
The numbers on the maps above
indicate daily throughput in terms ofvalue for districts in China. Using datalike these we can understand thepotential accumulation of cargo in thecase of a disaster.

© 2017 IHS Markit. All Rights Reserved.

Noteworthy Ports:

Tianjin:$477M/dayGuangzhou:$311m/dayShanghai:$1.6B/dayShenzhen:$681m/day31Tianjin Incident© 2017 IHS Markit. All Rights Reserved.

32Ships types in port Tianjin at time of incident
Ship Types

Other205
157
103
98
50
30
2321
17743

Total754

Bulk Carrier
Container Ship
General Cargo
TankerTug/Supply Ship (O.R.S.V.)
Vehicles Carrier
Supply Ship (O.R.S.V.)
Tug
Liquefied Gas Tanker
Ore Carrier© 2017 IHS Markit. All Rights Reserved.

No of Ships

Total Cargo Capacity in $$19,911,825,729$17,718,503,473$3,040,725,897$6,941,662,283$4,073,348,174$21,795,691$1,640,114,970$53,347,976,217

33Tianjin top 10 daily commodity throughput
Average Daily Value of Tianjin Imports & Exports

USDVehicles

74M

Nuclear Reactors, Boilers, Machinery & Mechanical Appliances

59M

Iron & Steel

46M

Mineral Fuels & Oils

34M

Electrical Machinery & Equipment/Parts

30M

Iron & Steel Articles

25M

Plastics & Articles

16M

Ores, Slag & Ash

15M

Oil Seeds, Fruits, Misc Grains

15M

Optical, Photographic, cinematographic, Medical Instruments

14M

Looking specifically at Tianjin, we can see their top 10 commodities make up almost$200m of daily throughput. In the case of another disaster these are the industries that
could be hit hardest.

© 2017 IHS Markit. All Rights Reserved.

34

Commodity Values© 2017 IHS Markit. All Rights Reserved.

35

Commodity Values Per TEU
Commodity

USD Per
TEU

Machinery and Mechanical Appliances$10,058

Cellular Phones$440,136

Hydraulic Turbines$113,742

Soy Beans$8,130Bananas$5,295Chemical Wood Pulp

$8,870Generators$190,754

Maize$3,784

Furniture and parts thereof$14,702© 2017 IHS Markit. All Rights Reserved.

36

Top 10 Commodities Value per TEU•

Commodity

USD Per TEU

Diamonds$1,188,631,862

Platinum$144,261,377

Jewelry$64,357,405

Gold$39,803,169

Pearls$17,605,939

Wristwatches$9,152,707

Silver$5,104,682

Paintings$3,233,022

Human Blood$3,085,526

Note: these values of commodities per TEU are IF they moved via ocean, most do not.

© 2017 IHS Markit. All Rights Reserved.

37

Bottom 10 Commodities Value Per TEU
Commodity

USD Per TEU

Water

$80

Slag Sand$220

Pebbles andgravel$240

Sands of all kind$313

Sheets forVeneering$539

Salt$630

Ash$645Ceramic building
bricks$657

Chalk$782© 2017 IHS Markit. All Rights Reserved.

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