How is the shipping today?

-Containerized transportation

By Leslie Zhu

Agenda Self-introduction Shipping industry overview Containerized shipping outlook -Market brief -Products -Customers -Commodities -Competition -Trends Shipping company structure and development Talent market & trends

Leslie Chu( 朱文蕾 ) 2006-now: DGM, Sales of Greater China, TMT-Safmarine 2005-2006:Regional Manager, Eastern/Central China 2004-2005:Sales Manager, China Area

2003-2004:Regional Ocean Manager, Eastern/Central China, Maersk Logistics 2001-2003:Branch Manager, Maersk Logistics Shanghai ITM

1994-2001:Asst. to GM & Ocean freight Manager, Geologistics/LEP

1993-1994:Executive, Test-Rite

1992-1993:Commercial & Sales, Beihai Port Authority

1988-1992:Maritime Law, Shanghai Maritime University

Shipping Industry Overview

Containerized Non-containerized: Tanker, Break

Bulk, Chartering, Brokers… Others: supply, shipping agency,

trucking, Train, Customs/broker, equipment lease, Air Freight…

Containerized Shipping Outlook- Market brief

Export vs. Import CIF vs. FOB vs. third parties Peak season vs. Slack season Volume vs. Freight Rate vs. Profit

per Area Growth in China vs. Defense in

EU/USA

Products

China-IntraAsia China-Europe China-North America/Latin America China-Mid East/East Asia China-Africa China-South America China-Oceania

Products Regular by weekly or multi-sailings per

week Fixed ETD/ETA Direct service vs. Transshipment Routine Inland service Transit time Stability of service

Customers

FOB Customers CIF Customers Triangle Biz Customers NVO Customers BCO Customers

Commodities -Export

E-Goods Machinery Textile & Garments Shoes Computers Other Consumer Goods

Commodities -Import

Hi-Tech Parts Oil Raw plastics Auto Parts Timber Foodstuff

Competition(Part I/1)Carrier Market Share Tonnage Vessel

1.Maersk-SL 12.4% 1015908 377 2.MSC 7.8% 637358 2453.Evergreen 5.4% 443938 1534.PONL 5.2% 427430 1545.CMA 5.0% 408131 1826.APL 3.8% 210745 997.Hanjin 3.5% 283808 788.NYK 3.4% 278893 1039.COSCO 3.4% 276506 11510.China Shipping 3.1% 251459 103

Competition(Part I/2)

11.OOCL 2.7% 218140 6512.K-line 2.5% 207584 7313.Zim 2.5% 202472 8914.MOL 2.4% 199558 6415.PIL 2.4% 199118 7716.Hapag Lloyd 2.4% 193240 7817.CSAC 2.3% 190000 5018.YML 2.2% 181294 6219.Hamburg –Sud 1.9% 152991 7920.Hyundai 1.8% 148681 39

Competition(Part II)-Logistics1.UPS2.FedEx3.DHL4.Maersk Logistics5.Nippon Express6.Ryder7.TNT8.EI9.Panalpina10.Exel DHL

Shipping Line features Profit: fill the vessel at highest rate Volume: depends on vessel capacity Credit terms: do not offer or offer

less than 1 month Products: own service port/port Service: Standardized Customer: NVOCC, Forwarding,

Manufactory, trading company etc…

NVOCC feature Profit: Freight margin Volume: Depends on allocation from

shipping lines Credit terms:0-90days,even longer… Products: Source from shipping lines Service: Flexible and various Customer: Direct customer and co-

loader

Trends

Cost increase-oil, steel, manpower etc. Bigger vessel for best cost effectiveness Export growth 10-18% Y-O-Y Next 1-2 year will be tough to shipping

company Market will be more in favor of buyer E-commerce

Shipping Company Structure

General

Sales Marketing Human Resource

Customer Service

Operations

Pricing/CapacitySystem support/IT

Finance

AdministrationDocumentation

Company Development

Centralized documentation center Centralized Customer service

center Dual branding Migration and Acquisition Flat Structure and Silo Structure Multi-industry for risk management

Talent Market

Demands vs. Supplies Preferences-What matter most? Recruitment process Pros & Cons of different kinds of

companies Own company Personal Career Plan

Q & A

Thank you!