andry hernawan prihananto (SS1417) arif maulana kaukab (SS1410) audy nirsa kusuma (SS1411) dwi astuti (SS1401)
01) vishnu rajendran (SS1418)
INTRODUCTION OF MSC
MSC is private company. Headquarter location is in Geneva, Switszerland
HISTORY
1970: 1977: Was founded by Gianluigi Aponte Expands services to northern Europe, Africa, and Indian Ocean : MSC operated ships to North America and Australia beginning in 1996 with MSC
End of 1980s
1989: MSC purchased the cruise ship operator Lauro Lines 1994: The line ordered its first newly constructed ships, which were delivered Alexa
MSC IN 2013
2nd largest carrier in respect of container slot capacity and the number of container vessel operated Serving the 6 continents and calling at 316 ports through 200 direct and combined weekly liner services
Has 480 agency offices in all around the world, 37,500 employee
MSCS AGENCY OFFICES
FINANCIAL PERFORMANCE
MSC is private-owned company, therefore they dont publish their financial performance report MSC has subsidiary company : - MSC Cruise - Terminal Investment Limited SA MSC terminal division
FLEET OF MSC
MSCs VESSEL IN TERM OF SIZE
Size of vessels are varies ---> serve all around the world with different condition Since 2009, MSC has initiated an ambitious renewal program for its container ship fleet Some of MSCs ship are :
NAME OF SHIPS MSC BEATRICE MSC EMANUELA MSC BARCELONA MSC ALBANY
START TO OPERATE 2009 - NOW 2010 - NOW 2011 - NOW 2012 - NOW
MAXIMUM CAPACITY 13,798 TEU 13,800 TEU 5,568 TEU 8,900 TEU
LENGTH 366 366 270,28 299,18
ROUTE SERVICE INITIALLY IN THE EURO-ASIAN ASIA BLACK SEA II West Bound
North Europe - North Europe / Baltic / Scandinavia / British Islands STRING I
ASIA - EUROPE
QUANTITY OF VESSEL
(per October 23, 2013 )
Source : http://www.alphaliner.com/top100/index.php
The Growth of Vessel Quantity
October 2013 : 488 ships
The Growth of Vessel Quantity
Growth of Container Volumes Transported
1970
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Liner service network of the shipping line:
a. What are the main areas served ?
The main areas served by MSC shipping company are Americas, Africa, Europe, Middle East and Asia Pasific. The countries are :
Sources : http://www.mscgva.ch/about_us/routes.htm
b. Type of liner services (hub-and-spoke, line-bundling services, etc..)
MSC is one of the few carriers able to offer worldwide coverage with allowing rapid movement of goods throught transhipment Hub. MSC therefore provides swift connections and efficient on carriage services.
Sources : http://www.mscgva.ch/about_us/routes.htm
c.
NO 1
Patterns in terms of ports of calls
AREA ROUTE PATTERN OF MSC LINER SHIPPING NAME OF ROUTE PATTERN Silk Services Simetris Bundling Line LOADING PORT Ningbo Shanghai Xiamen - Hong Kong Yantian Chiwan - Singapore DESTINATION PORT Antwerp Felixstowe Hamburg Bremerhaven - Rotterdam
Europe, Mediterranean, Black Sea, North Africa, West Africa, Red Sea, South America East Coast, Canada
Lion Services
Simetris Bundling Line
Qingdao - Pusan Ningbo Shanghai Nansha Sines - Le Havre Hamburg Bremerhaven Hong Kong Yantian Chiwan Antwerp Felixstowe
3 4 South Africa, Indian Ocean, East Africa 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Intra Asia 19 20 21 Middle East Bangladesh Mexico, South America West Coast, Central America WC USA, Carribean
Dragon Services Tiger Services Cheetah Services Golden Gate Pendulum Orient Services Pearl River Sunrise Services Jaguar Services Andes Services Wallaby Services Koala Services Panda Services Capricorn Services Falcon Services Keokradong Services
Simetris Bundling Line Simetris Bundling Line Asimetris Bundling Services Pendulum Simetris Bundling Line Simetris Bundling Line
Dalian Xingang Pusan Qingdao - Ningbo Shanghai Yantian Hong Kong - Chiwan Singapore Qingdao Shanghai Ningbo Hong Kong Chiwan - Singapore Fuzhou Xiamen Kaohsiung Hong Kong Chiwan Singapore Ningbo Shanghai Chiwan Yantian Singapore
Xingang Dalian Qingdao - Shanghai Fuzhou - Xiamen Chiwan Hong Kong Yantian Kobe Kwangyang Busan Hakata Nagoya Yokohama Kaohsiung Hong Kong Xiamen Shanghai(WGQ) Ningbo Hong Kong Chiwan Ningbo Shanghai Pusan Yokohama Yokohama Osaka Busan Qingdao Shanghai Ningbo - Xiamen Kaohsiung Yantian Hong Kong Singapore - Jakarta Singapore Singapore
Destination Ports: Gioia Tauro Valencia La Spezia Fos Barcelona Jeddah Beirut Piraeus Istanbul Port Louis Durban Coega (Port Elizabeth) Salalah New York Baltimore Norfolk Charleston Freeport Los Angeles Oakland Long Beach - Oakland Los Angeles - Oakland Long Beach Oakland Manzanillo Balboa Callao Iquique Valpariso San Vicente Melbourne Sydney Melbourne - Brisbane Melbourne Sydney Brisbane Fremantle Melbourne Sydney Bluff Port Chalmers Lyttelton Wellington Napier Tauranga Bandar Abbas Jebel Ali Dammam - Jubail Chittagong
Simetris Bundling Line Simetris Bundling Line Asimetris Bundling Services Simetris Bundling Line Simetris Bundling Line Asimetris Bundling Services Pendulum End to End Hub and Spoke Hub and Spoke
Australia, New Zealand
Bangkok Unithai, Laem Chabang Ho Chi Minh Singapore City Surabaya Semerang Jakarta Panjang Belawan Penang Port Klang Pasir Gudang Hakata Kobe Yokkaichi* Nagoya Omaezaki* - Yokohama Cai Lan (Haiphong) Shantou Ningbo Singapore Chiwan Hong Kong Xingang - Busan
Shogun Services Tongking Services Yellow Sea Express
Simetris Bundling Line End to End Triangle Line
ASIA - EUROPE Silk Services Lion Services
Dragon Services
Tiger Services
ASIA INDIA - AFRICA
Cheetah Services
Golden Gate Services
USA - CARRIBEAN Orient Services
Pearl River Services
Sunrise Services
Jaguar Services
CENTRAL AMERICA & WC SOUTH AMERICA Andes Services
AUSTRALIA NEW ZEALAND Wallaby Services Panda Services
Koala Services
Capricorn Services
MIDDLE EAST Falcon Services
BANGLADESH Keokradong Services
INTRA ASIA EX Sea to Singapore 8 Services Tongking Services
Mallaca Straits
Yellow Sea Express
Shogun Services
d.
Does the shipping line have specific hubs ?
NO 1 AREA Asia - USA & Carribean HUB PORT COUNTRY China, Singapore Egypt, USA China USA USA Korea USA USA Singapore UEA, Egypt China, Singapore, Korea Belgium, UK, Germany, Nedherland France, Germany, Belgium, UK Italy, Spain UEA, Saudi Arabia, Turkey 4 5 Mexico, Central America, South America West Coast Australia, New Zealand China, Korea Peru, Panama, Chile, Puertorico Korea Australia SPECIFIC HUB PORT OF MSC NAME OF ROUTES Golden Gate Pearl River Orient Services Sunrise Services Jaguar Services Falcon Services Silk Services Lion Services Dragon Services Tiger Services HUB PORT Ningbo, Chiwan, Singapore Salalah, New York, Baltimore, Norfolk, Charleston, Freeport Chiwan, Hongkong Long Beach, Oakland - (direct port) Los Angeles, Oakland Busan Los Angeles, Oakland - (direct port) Long Beach, Oakland Singapore Bandar Abbas , Jebel Ali, Dammam, Jubail Ningbo, Shanghai, Hongkong Antwerp, Felixstowe, Hamburg, Bremerhaven, Rotterdam Busan, Ningbo, Hongkong, Chiwan Sines, Le Havre, Hamburg, Bremerhaven, Antwerp, Felixstowe Busan, Hongkong, Chiwan, Singapore Gioia Tauro, Valencia, La Spezia, Fos, Barcelona Qingdo, Ningbao, Hongkong, Chiwan, Singapore Jeddah, Beirut, Piraeus, Istanbul Hongkong, Chiwan, Busan Manzanillo, Balboa, Callao, Iquique, Valpariso, San Vicente Pusan Melbourne, Sydney - (direct port) Sydney, Melbourne, Brisbane Chiwan Melbourne, Sydney, Brisbane Singapore Fremantle, Melbourne, Sydney, Bluff, Port Chalmers, Lyttelton, Wellington, Napier,Tauranga Singapore Hongkong, Chiwan, Singapore Port Louis, Durban, Coega (Port Elizabeth) Singapore, UEA, J Hakata, Kobe, Yokkaichi, Nagoya, Omaezaki, Yokohama
2
3
Far East - Middle East
Asia - Europe
Andes Services
Wallaby Services Koala Services Panda Services Capricorn Services
Australia China Australia Singapore
Australia, New Sealand 6 7 8 Bangladesh Far East - South / East Africa Intra Asia China, Singapore South Africa
Keokradong Cheetah Services
How has the economic crisis affected the lines liner service network ? In a response to the deteriorating trading environment MSC Mediterranean Shipping Company will rationalize Far East Eurpe Services with doing port rotational routes such as : e. 1. Jade Service = 9 ships of 9500 to 11500 TEUs 2. Silk Service= 10 ships of 9500 TEUs 3. Dragon Service = 11 ships of 8100 TEUs 4. Lion Service = 10 ships of 6500 to 8100 TEUs This new set up reduced MSC weekly space availability on the route from the Far East to Europe/Mediterranean by 2000 TEUs This move reflected the lack of volumes in the market as a consequence of the economic crisis and the difficulties of managing the vessels on these liner services. MSC done some action to minimize the looses such as : 1. Compete on the routes using vessels smaller than 10.000 TEU in specific routes 2. Seling old ship to secondary market
3. Chartering the ship with long term period
4. Cut some expenses to reduce cost in operation
MSC GROWTH & HORIZONTAL INTEGRATION
MSC following a path of organic growth MSCs growth rate is achieved by increasing overall customer base rather than through merger and acquisition.
ALLIANCE
MSC & CMA CGM Alliance (2012)
Route : Asia-Northern Europe, Asia-Southern Europe, South America MSC assigned some vessels into this alliance.
example : In Asia-Northen Europe MSC : 26 vessel Maersk, MSC, CMA-CGM Alliance (P3 Network) Intend to start operations in the 2nd quarter of 2014 Long-term operational alliance on East-West Trade
P3 NETWORK
Planning of P3 NETWORK
Will operate a capacity of 2.6 million TEU (initially 255 vessels)
0.6 Million TEU (24%) 1.1 Million TEU (42%) 0.9 Million TEU (34%)
Maersk MSC CMA-CGM
Vertical Integration
Terminal Operation
MSC Controlled 26 CT in all around the world through joint venture Principal Customers of CT : MSC
MSCs dedicated terminal
MSC has also some dedicated terminal
Source : http://www.econstor.eu/bitstream/10419/68788/1/589780166.pdf
FEEDER OPERATION
MSC offers feeder services for some regions : Example : Middle East : Hub Port : Jebel Ali To :Abudhabi-Sharjah-Bahrain-Muscat-Doha-Shuwaikh&Shuaiba-Umm Qasr Europe : Main European Hub Port : Antwerp To : North West Continent
Another region which offer feeder services are Argentina, Colombia, Brazil, Peru, Georgia, Turkey, Japan & South Africa
Inland Transport Road
MSC offers door to door service in some part of their service area, by using truck, train, or barge Inland transportations are provided through 1st class subcontractor, longstanding contractual relationship with inland transportation provider Example of region which provide inland transportation :
AMERICA Bolivia
Working with a selected group of trucking companies
ASIA Uzbekistan
-By truck or rail - Using 1st class dedicated subcontractors
MIDDLE EAST Turkey
By truck fleet
EUROPE Belgium
-By truck fleet -Railway Service (long contract) -Barge
AFRICA South Africa
-By truck Fleet or railways - Longstanding contractual relationship with Transnet Freight Rail (TFR)
LOGISTICS/VALUE-ADDED ACTIVITIES
MSC provide logistics services a. Warehousing b. Dry Port c. Depot d. Customer Clearance
COPING WITH INCREASED BUNKER COST
BAF (Bunker Adjustment Factor) Slow Steaming - Transatlantic services - Transpacific services (only slow steaming on the return leg to Asia)
EFFECT OF ECONOMIC CRISIS TO HORIZONTAL AND VERTICAL INTEGRATION
Horizontal integration : Form alliance with another shipping line Vertical Integration : Develop mutual relationship with logistic services providers in some countries to create integrated services. In order to keep customer satisfaction and loyality
MSC EFFORTS IN TERM OF :
Ease of Doing Business - Local agency office spread all around the world - Each agent have their own web site - Simple administration : single B/L - Track and trace services - Using Interlink Transport Technologies - Provide door-to-door service in some countries
Environmental
MSC has developed guidance of environmental policy Has Designed & imposed ECO KPI Delivering positive contribution to biodeversity & protection of aquatic life Minimize CO2 emission : - Using low sulphur fuels - Using new efficient technology - Improving supply chain services & logistical network
