REVIEW OF MARITIME TRANSPORT 2016-17

DEVELOPMENTS IN INTERNATIONAL
SEABORNE TRADE
 Introduction
• Seaborne accounts for over 80 per cent of world merchandise trade by
volume and more than 70 per cent of its value.
• Total volume reached 10.3 Billion Tons an increase of 2.6% in 2016 from
1.8% in 2015
• With Developing Economies contributing to 59% of exports and 64% of
imports.
• World Bank 2016 report suggests that 1 percentage GDP point decline in
Brazil, China, India, the Russian Federation and South Africa could reduce
growth in other emerging and developing economies by around 0.8
percentage points and global growth by 0.4 percentage points.
World economic growth
• Recession in Brazil and Russian
Federation.
• Slow down of Chinese Economy
Manufacturing sector facing
overcapacity and limited growth,
consumer-driven services sector is
growing at a rapid pace
• Falling Energy prices, llifting of
Sanctions on islamic republic of iran,
The United States lifted a 40-year ban
on crude oil exports
• Lowering commodity price levels and
weak global demand slowing down the
growth rates
World merchandise trade
• Slow down in Europe and large Developing nations have slowed down
the global Trade.
• World Merchandise trade under performed expanding only 1.9% in
2016 from 1.7% in 2015
• Weaker trade is both a cause and an effect of a slowdown in global
economic activity in view of the strong linkages between investment,
growth and trade.
 World seaborne trade
• Total volumes reached
10.3 billion tons,
reflecting the addition
of over 260 million
tons of cargo
• Seaborne dry cargo
shipments totaled 7.23
billion tons in 2016
Out of which 5 major
Bulk (coal, iron ore,
grain and
bauxite/alumina/phos
phate rock) was 43.9%
• Global shipping ton-
miles reached 55,057
estimated billions
Share of international seaborne trade
World seaborne trade by type of cargo and country
grouping
Goods Loaded Goods Unloaded
Year Total Petroleum
Crude ProductsDry
andcargo
gas Total Petroleum
crude ProductsDry
andcargo
gas
2015 10023.50 1761.00 1170.90 7091.60 10016.40 1910.20 1187.20 6919.00
% change 1.80% 3.07% 4.49% 1.04% 1.80% 3.15% 5.06% 0.87%
%share 100.00% 17.57% 11.68% 70.75% 100.00% 19.07% 11.85% 69.08%
World
2016 10286.90 1837.60 1217.90 7231.40 10281.60 1990.00 1233.30 7058.30
%share 100.00% 17.86% 11.84% 70.30% 100.00% 19.35% 12.00% 68.65%
% change 2.56% 4.17% 3.86% 1.93% 2.58% 4.01% 3.74% 1.97%
Developed Economies
• Australia largest exporter of Iron ore 54% market share and coal 33%, Japan the second largest importers
of Iron Ore with 10% market share

• USA with 34% market share of grain exports and USA 7% Steel importers
• North America, second largest producers and consumers of Oil with 19% and 23% respectively
• North America, Largest Producers and consumers of Natural gas with 26% and 25% respectively

Goods Loaded Goods Unloaded

Year Total Petroleum
Crude ProductsDry
andcargo
gas Total Petroleum
crude ProductsDry
andcargo
gas
2015 3417.40 129.60 467.20 2820.60 3733.70 994.30 530.90 2208.50
% change 2.16% 6.02% 0.81% 2.20% 1.17% 3.01% 2.26% 0.08%
Develop
%share 100.00% 3.79% 13.67% 82.54% 100.00% 26.63% 14.22% 59.15%
ed
2016 3594.70 143.50 505.00 2946.30 3633.00 990.80 533.50 2108.70
economi
%share 100.00% 3.99% 14.05% 81.96% 100.00% 27.27% 14.68% 58.04%
es
% change 4.93% 9.69% 7.49% 4.27% -2.77% -0.35% 0.49% -4.73%
Developing Economies
• Import volumes into China – accounting for over two thirds of world iron ore imports. With market share of 70%
• India the largest coal importers with 19% market share
• Brazil the second largerst exporters of iron ore with market share of 27%
• Asia the largest grain importers with market share of 33% followed by Africa 22%
• Indonesia’s ban on the export of bauxite in January 2014,

Goods Loaded Goods Unloaded

Year Total Petroleum
Crude ProductsDry
andcargo
gas Total Petroleum
crude ProductsDry
andcargo
gas
2015 5973.80 1466.90 660.60 3846.30 6224.00 915.60 651.90 4656.50
% change 1.12% 2.32% 6.42% -0.25% 2.36% 3.27% 7.33% 1.48%
Developi
%share 100.00% 24.56% 11.06% 64.39% 100.00% 14.71% 10.47% 74.82%
ng
2016 6045.70 1517.70 664.70 3863.20 6587.10 998.90 695.40 4892.80
economi
%share 100.00% 25.10% 10.99% 63.90% 100.00% 15.16% 10.56% 74.28%
es
% change 1.19% 3.35% 0.62% 0.44% 5.51% 8.34% 6.26% 4.83%
Containerized Cargo
• Volumes estimated at
140 million 20-foot
equivalent units
• Negative performance
(-2.2 per cent) on the
headhaul of Europe–
Asia trade, which
reflected weaker
import demand in
Europe
• Deceleration of Russian
economy
• Overall weak
growth in global
demand, the
shipping industry
has turned to
consolidation and
rationalization
• In 2016 and first
half of 2017, the
container
shipping industry
intensified its
consolidation
efforts, both
Key developments
• Containerized trade continued to face the upsizing of container ships
vessel sizes increased beyond 18,000 TEUs which may lead to reduced service
frequency, higher container traffic and greater pressure at ports to handle cargo
• Environmental effects from dredging deeper channels
Infrastructure Developments all around the world
• Opening of the new Panama Canal
• One Belt, One Road Initiative
China has already committed over $10 billion in investment to develop the
Bagamoyo port in the United Republic of Tanzania and has contracts to build
railways connecting the ports of Dar es Salaam and Mombasa, with inland
countries
• Japan along with Asian development bank expected to provide $110 billion to
finance Quality infrastructure development in Asia over the next 5 years (2016
report).