A Presentation On Maersk Line

Submitted To: Prof. Surta Mehta

Submitted by: Sagar Nathani (M00134)

About shipping industry

The Indian coastline is dotted with 12 major ports and 187 minor ports. According to the Indian Ports Association, these major ports together handled a total of 519.24 million tonnes (MT) of cargo in 2007-08, an increase of 11.94 per cent over 463.78 MT handled in 2006-07. In 2008-09, cargo traffic at major ports increased to 530.4 MT.

Cont..
The share of non-major ports in cargo traffic has increased from less than 10 per cent in 1990 to the current level of 26 per cent. India is also likely to emerge as a major destination for container operations. The container trade went up to 7.2 million twenty-foot equivalent units (TEUs) by 2007 from 2.47 million TEUs in 2000. Gujarat, Maharashtra and Andhra Pradesh are likely to drive the port capacity expansion of the country over the next five years.

About Maersk line

The worlds largest container shipping company and a customerfocused leader in reliable, eco-effi cient transport. Reliability is a top priority for Maersk Line. They are frequently ranked by independent third parties as the most reliable carrier among the worlds 20 largest shipping lines. shipping company in the world by revenue and employs approximately 25,000 people. Maersk Line operates over 600 vessels and has a capacity of 2.6 million TEU (Twenty-foot Equivalent Units).The company was founded in 1928.

Key figure
Employees -25,000 Number of offices -325 Number of countries- 125 Number of vessels- 600 CEO- Soren Skou

Maersk Line overview

Over 100,000 customers globally,18,000 customers in North America. 35,000 employees world-wide Total revenue of Maersk Line in 2005 DKK 128.9 billion (USD 21 billion) Total net profit of Maersk Line in 2005 DKK 7.6 billion (USD 1.2 billion) More than 500 operated vessels A container fleet of more than 1.4 million container units More than 40 terminals across the world

Types of container service

Dry Storage Container Flat rack container Open top Container

Reefer Container

Open side storage Container

Tank Container

Located in: More than 128 countries

About 325 offices globally

Maersk Line Fleet: 600 vessels

Employees about 25000 globally

Export producer container service

Shipper

Sales
Consignee

Booking

Maersk line

Delivery Trucking Loading Discharge

Volume growth market container service

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Market share(ML) 2 2.7 3.5 4 4.2 4.8 5.5 5.6 6 6.5 7.5

2012

7.7

Volume growth container (Ml)

8

market share

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

What are the major risks involved?

The security arrangements in place at any particular time or location or for any particular vessel will depend, of course, on the perceived level of threat. In this regard it is useful to consider establishing a series of threat levels against which various actions might be taken, tightening security at each higher level. A universally recognised threat level indicator does not exist although a widely used and simple threat level table is as follows: Level 1 - background level of threat; Level 2 - heightened threat due to type of ship, port, current events etc., but with no defined target; Level 3 - high level of threat against a specific target.

What are major issues/problems in the container trade

The global shipping industry is oversupplied. Because supply far exceeds demand, shipping rates have plummeted, as have the prices of ships. Some shipping companies have sought to capitalize on this trend by purchasing newer, larger ships at lower prices so that they can remain price competitive.

Traffic charges of container

Particular Charges Sure charge Maintance Other charges 20ft 10000 225 1000 As per condition 40ft 20000 225 1000 As per condition

Profit margined

45%

40%

supply chain of container service

Shipper Sales person Fright forwarder CHA

Port agency

Vessel agent

Line agent

Consignee

Percentage volume tread

name Asia north- America Asia- Europe Intra- Asia Other intra regional Other Global trade 15% 12% 24% 16% 28% Maersk line 13% 40% 5% 10% 22%

Distribution on container shipping unit cost

2011 Terminal cost Vessel cost Bunker(fuel) Inland transportation 24% 26% 26% 12% 2010 25% 24% 21% 15% 2009 25% 25% 18% 14%

Administration cost
Container equipment

8%
4%

11%
4%

12%
6%

Are you going to start part time or full time business Model?
Maersk line Pvt. Ltd is largest company in World. Company has already 130 country present. So company is stared full time business Model.

Do you Plan to Export or Import Both?

Maersk line Pvt. Ltd having stock capacity of 25 00000 lakh container and also available different type of container service provide. That is way company has to import-export container service in world.

will you work as agent ?

international market requirement still company is able to fulfill the international requirement of container That is way company has to import-export container service from more than 120 of country like Indonesia, Malaysia,usa,quatr ,gulf country etc..

what will be company name and form of organization?

Company Name: Maersk Line Pvt. Ltd

Form of organization: Container industry

Company yard Contact Person: Mr. A.P. Moller Telephone: +91-2436-245534 Fax No: +91-2436-245536 Address: Mundra Port nh-8,adani house near seabird cfs Office Address Contact Person: Sagar Nathani Telephone: +91-2446-246532 Fax No: +91-2436-245546 Address: sector-8, Gandhidham, Gujarat, India

where will your base of operation be? Where will you located your office?

What types of product will choose to deal in?

Dry storage container Flat rack container Open top Container Reefer Container Open side storage Container Tank Container

who will be the consumer/ users/ and buyer of your products?

List of consumer/ users/ and buyer Retail industry Food industry Commodity Dry cargo Break bulk cargo Others cargo

Shipping Terms QUANTITY & SHIPMENT PERIOD PRICE PACKING COUNTRY OF ORIGIN VALIDITY DOCUMENTS CONSTITUTING CONTRACT LETTER OF CREDIT (DOCUMENTARY CREDIT) INSPECTION SHIPMENT INSURANCE PAYMENT

which mentions international transportation and insurance will you use? Which shipping terms?

List of Bank State bank of India Bank of Baroda HDFC Insurance Company International Insurance company Ltd. ACE group company Freight forwarder LP international Freight forwarder Rausch Freight forwarder AN Deringer Freight forwarder

who will be your bank? Your insurance company? Your costume agents? Your freight forwarder?

Export charges
Particular Thc Thc-haz cargo Hazardous docs charges b/l charges 20 8000 12000 2500 1800 40 12000 18000 2500 1800

b/l surrender charges

1800

1800
1000

b/l re-issue charges 1000

Service tax 12.36%applicable on all charges.

Import charges
Particular Thc Thc-haz cargo Cleaning chargesnormal Cleaning chargesheavy 20 7000 10500 1000 1500 40 11000 16500 2000 2500

Seal charges-import 250 Survey charges 225

250 225

Service tax 12.36%applicable on all charges.

Set Price? Promote yourself your product?

Container rate Additional process expenses Other expenses Margine Disc-10% 9000 3000 2000 5000 1900

Sales

17100

Conti..
Promotion of the product Advertisement trough Newspaper. Sponsorship

Thank you Sailing on trust