SHIPPING LINE

A company which operates a ship or ships

between advertised ports on a regular
basis and offers space for goods in return
for freight based on a tariff of rates.

INTRO
Container shipping is the main way to transport

goods around the world it enables global

trade.
Everything from door handles and strawberries,

to make-up and computers, have seen the

inside of a container. Without container
shipping connecting the world we would not
have the variety of goods we have today!

FACTS ABOUT CONTAINERS

A standard container can hold 24,914 tin cans.

Container capacity is measured in twentyfootequivalent units (TEU). This is the size of

the standard 20-foot long (6.09 m) container.

Another standard size is the forty-foot (12.18

m)container (i.e. two TEUs). A forty-foot
equivalent unit (FEU) can be loaded with about
20 tons of cargo.

TYPES OF CONTAINERS

Open tops are used for

easy load of cargo such
as logs, machinery and
odd sized goods.

Flat racks can be used

for boats, vehicles,
machinery or industrial
equipment.

 Open sides may be

used for vegetables

such as onions and
potatoes.
Tank containers

transport many
types of liquids such
as chemicals, wine
and vegetable oil.

HISTORY
A HISTORICALLY FATHER-SON TEAM
Arnold .Peter. Moller
A MAN WHO CREATE OPPORTUNITY
FOR HIM SELF

HIS PHILOSOPHY:
No loss should hit us, which could be
avoided with constant care

Arnold Maersk Mc-Kinney Moller

A MAN WHO AVAIL EVERY POSSIBLE
OPPORTUNITY BY COLLOBRATING
WITH US NAVY

There are two only ways to grow,

organically or via acquisitions.

VISION STATEMENT
We create opportunities in global commerce

MISSION STATEMENT
Truly understanding our clients and their business.
Offering second-to-none transportation solutions.
Being profitable - and delivering sustainable, profitable

growth.
Continuously reducing costs and increasing efficiency.
Offering our colleagues personal growth and a motivating
place to work.
Being innovative.
Being good corporate citizens.

MAERSK LINE AT A GLANCE

Employees: about 16,900 and 7,600 Seafarers.

Number of representations: about 500 offices
Located in: more than 167 countries

MAERSK LOGO IN 1928 & IN 1972

KEY PERSONNEL IN MAERSKLINE

Eivind Kolding
Chief Executive Officer

Lucas Vos
Chief Process officer

Eivind Kolding
Chief Executive Officer

Lars Jakobsen
Head of network & process

Morten Engels toft

Chief Operating Officer

PETER ANDERSON
Chief Financial Officer

RNK

OPERATOR

MARKET SHARE

NO OF COUTNER

FLEETS

OWNED FLEETS

18%

2,166,332

570

245

13.2%

2,029,758

472

207

403

94

APM-Maersk

Mediterranean Shg
Co

CMA CGM Group

8.6%

1,350,232

Evergreen Line

5.4%

594,154

Hapag-Lloyd

4%

543,293

138

59

APL

3.5%

472,804

119

44

COSCO Container
L.

3.5%

469,491

145

94

CSCL

3.4%

460,717

140

88

NYK

3%

410,185

108

59

409,363

92

18

162

90

2.5%
10

Hanjin Shipping

SOME MAJOR
UNCONTROLLABLE
THREATS TO
SHIPPING INDUSTRIES

FLUCTUATION IN FUEL PRICES

PIRACY ATTACKS

STRATEGIC
MANAGEMENT
MATRIXES

BCG MATRIX
The example of service TP1 i.e trans pacific
routing 1 is the best example of bcg matrix
The service had a routing of Yantian, Xiamen,
Kaohsiuing, Los Angeles, Oakland, Honolulu and
Guam which have been dismissed recently
because of low freight and increment in bunker
lost .
The service have been in continues loss since 3
years and now the board decided to dismissed the
service and
introduce new service serving some port from
previous service
The new routes as per market demand TP1 have
been replaced by TAIWAN EXPRESS
which routing will be KAOHSIUNG(TAIWAN)TAIPAI(TAIWAN)-LOS
ANGELES(
USA)OAKLAND(USA)

THE GRAND STRATEGY MATRIX

AS PER ABOVE GRAPH IT IS CLEAR

THAT MAERSK FALLS IN Q4
AS THEY HAVE STRONG
COMPETATIVE ADVANTAGE BUT
MARKET GROWTH IS SLOW

EXPORT AND IMPORT

PROCEDURE

There are six basic and most

important documents required for
shipment:
Invoice
Packing list
Certificate Of origin
Declaration
Shipping bill
Bills of lading

INVOICE
Internal Invoice: It Is an intra company document used to account for the total

expense of manufacturing and exporting goods.

Commercial involves: it is a document which specifies all the details of the

exporter and the recipient.

It is used as a customs declaration provided by the company that is exporting an

item across international borders.

A commercial invoice is used to calculate tariffs, and is commonly used for

customs purposes.
It also includes a statement certifying that the invoice is true and has a signature of

the authority.

Some specific information that the invoice has are:

Name and Address of the shipper
Name and address of the consignee
Invoice date
Purchase order no.
Number of units, unit value, total value of each unit
Total value of the shipment, including currency settlement
Reason for export
Number of packages and total weight of packages , etc
Terms of payment
Terms of delivery

TERMS OF DELIVERY:-

FAS Free Alongside Ship (named port of shipment)- The seller must place the goods

alongside the ship at the named port. The seller must clear the goods for export.
FOB Free on Board -The seller must load the goods on board the vessel nominated by the

buyer. Cost and risk are divided when the goods are actually on board of the vessel (this rule
is new!). The seller must clear the goods for export .This the most commonly used term.
CFR Cost and Freight Seller must pay the costs and freight to bring the goods to the port of

destination. However, risk is transferred to the buyer once the goods are loaded on the vessel.
CIF Cost, Insurance and Freight Exactly the same as CFR except that the seller must in

addition procure and pay for the insurance. Maritime transport only.
Delivery duty paid DDP
Delivery duty unpaid DDU

DOCUMENTS USED SUCH AS : Packing list- Itemized list of articles usually included in each shipping

package, giving the quantity, description, and weight of the contents.

Prepared by the shipper and sent to the consignee for accurate tallying of
the delivered goods. Also called bill of parcels, packing slip, or unpacking
note.It also mentions the dimensions that is length breadth n height of the
packages.
Certificate of origin- Certificate of Origin is a certificate stating the

country of origin of the goods. Depending on the importing country's

requirements, this can be as simple as being issued by the seller or the
manufacturer. In most cases however, it is required to be issued by a
Chamber of Commerce in the country of origin.
Declaration- An export declaration form is a document that is submitted to

the customs previous to the export of goods.

This document is used by the customs to charge any

applicable duties and taxes and is also used to provide

accurate statistic data to the government.
The company that fulfils an export declaration has to
provide details such as:
Detail of the goods, quantity, value, origin.
Country of destination and entity receiving the goods.
Detail of the exporter.
Signed declaration of the exporter.

DOCUMENTS NEEDED SUCH AS :Shipping bill- The shipping bill is prepared in the name of the

exporter reflecting the goods, its quantity to be exported along with

price. It can be prepared by the exporter or its agent. The shipping
bill prepared should be entered in the data base of the Customs
Authorities or their authorized representatives office for
authentication / approval. It Is the CHA's job to file the shipping
bill.
SDF- A document submitted to customs authorities by exporters

verifying that shipping bills are accurate and complete. An exporter

confirms on form SDF that the amount paid by the buyer is the
same as the full export value stated on the shipping bill. Also called
statutory declaration form.

 After these documents are ready the shipper gives the documents to the

freight forwarder who hands over these documents to the CHA. The
customs officials go through the documents assess them and after
confirming that the documents are authentic they approve the shipment.
The freight forwarder collects the shipment or cargo from the CHA and
loads it onto the ship. It is the cha's job to clear the goods from the
custom and hand it over to the freight forwarder. The freight forwarder
has to Book a space in advance with the shipping line stating all the
Cargo that needs to be transported. When the cargo is in possession with
the shipping line, they give the shipper or the consignor the bill of
lading.
Bill of Lading- It is a document which covers transport by sea Signed
by the carrier or the freight forwarder. it serves as a receipt to the
consignor for the goods, as evidence of the contract of transport
containing the conditions of transport, and as a document of title by
which possession of the goods can be transferred. It is the proof that the
carrier has received the goods in good order and condition and that they
were also placed on board the ship.

IMPORTS
The first thing done before importing is selecting the

supplier. The lookout for suppliers in the foreign market

through Internet and after receiving quotations from
different suppliers they select the supplier with best
quotation.
The company appoints the freight forwarder and gives

them the contact number, the supplier saying that the

particular material needs to be imported from another
country

 The freight forwarder contacts with a branch in the country

from where the material has to be imported and asks them to

contact with the supplier.
After the material is ready to be imported the freight
forwarder in the home country again confirms from the
consignee that should he ship out the cargo.
After the cargo has reached its destination that is the home
country the freight forwarder asks the company to inform
the custom house agent to clear the goods from the customs.
The custom house agent files the bill of entry in the
customs.

 Bill of Entry-A declaration by an importerof the exact nature, precise quantity

and value of goods that have landed it is examined by customs authorities for
its accuracy and conformity with the tariff and regulations.
To clear the goods some duties have to be paid in the customs.
The duty as to be charged on the assessable value of the cargo-

assessable value =( cost price + freight +insurance) 1% landing charges..

The other duties:

basic duty 10% 5% 7% and nil.

Counter valuing duty it is always 12%.
Secondary education cess 2%
higher education cess 1%
additional duty 4%