Shipping Industry Overview (03:33)
Shipping accounts for 90% of world trade movement; the largest vessel class can carry more than 15,000 containers. View the Asia-Europe route transporting cheap consumer goods and luxury items.
An Ancient Sector (03:10)
Tim Smith explains that shipping is the most cost-effective method of moving goods over long distances. Julian Proctor says shipping economics have changed since 2008. Tom Boardley and Sverre Prytz discuss the impact of plummeting oil prices on logistics and shipping technology.
Managing Oil Price Fluctuations (02:52)
Smith holds a long-term view on investing in fuel efficient shipping technology. Boardley discusses the movement toward environmental protection; emissions and fuel type will be increasingly regulated.
Shipping Technology (02:23)
Prytz says that shipping lags in innovation, but there are some developments like battery operated propulsion and fuel efficiency software. Smith discusses how big data is used to manage fleet operations from a central location.
"Help Desk" Factor (05:13)
Proctor tries to apply technology from other marine industries. Boardley explains why ship owners are reluctant to invest in new technology. Software programs must be simple due to the self-sufficient nature of shipping vessels.
Corporate Social Responsibility (03:04)
Shipping produces 2.2% of global carbon emissions. Multinational corporations are under pressure to improve their environmental performance, extending to product transport. Ship owners generally shoulder the costs while customers reap the benefits.
Environmental Stewardship and Social Welfare (03:12)
Prytz noticed ship owning families gaining interest in corporate social responsibility; hear examples of environmentally friendly innovations. Oil companies pressured the tanker industry to prevent spills. Smith discusses how shipping helped lift populations out of poverty.
Potential New Routes (05:13)
View the top three global shipping routes. Panelists discuss China's new Silk Road, port development and emerging markets around the Indian Ocean, import business into China, and trade regionalization. Transport infrastructure in Africa and Latin America will alter ship types.
Opportunities in the Arctic (03:28)
Climate change opened northern waters to transportation. Potential routes would require new ship design and safety features. New legislation is emerging to protect Arctic nations and restrict ship size.
Ports and Shipping (04:07)
Smith discusses environmental impacts of burning heavy fuel oil near dense cities. New technology enables cleaning ship hulls while unloading cargo. Property prices pushed ports away from main harbors; labor disputes have far reaching economic effects.
Relocating Ports (03:53)
Convincing cities in developed countries to move ports is politically difficult; India and China are more willing to help fund the transition. Municipalities must take the port's total value into account.
Long Term Shipping Challenges (05:00)
Powering ships with non-renewable sources is unsustainable. Railway shipping from China to Europe is viable, but government regulation is a challenge. Smith addresses changing technology demands like digitalization, 3-D printing, and trade regionalization. Proctor believes the competitive advantage paradigm will remain.
Shipping Industry Conclusion (01:23)
Smith believes ocean transport will see changes in fuel sources, technology demands, and types of goods.
Credits: Changing Tides: The Future of Shipping (00:23)
Credits: Changing Tides: The Future of Shipping
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