b'12American Journal of Transportation ajot.com(EFFICIENTcontinued fromthing breaking?More than 65% of all ships page 10) Where does the industry go next? TEU for new ships entering the con- Stillbiggerships?Orautomated tainership fleet is over twice the sizeships? New fuels or old fuels? Will thecontain asbestosofthecurrentaveragefortheTopcarriers charter in more ships and go 10 carriers. This jump in size is lessasset-light in the future? Or will carri- Despite the introduction ten yearshighcostassociatedwithremoval. about a change in ordering philosophyers expand into other transport modesago of regulations prohibiting the useMoreimportantly,ifseafarersandgoing big is a mantra in shipping likeair,truckandrail?Willthereofasbestosmaterialsonboardship,shipyardworkersareunknowingly and more about the statistical impactbemoremergersandacquisitions?a significant number of existing andhandling asbestos then they are at risk ofindustryconsolidation,aperiodMaybenewoceancarriers?Biggernewbuild vessels continue to operateof developing a respiratory illness.during which top tier ocean carrierscarrier alliances? More IT integrationsystems and machinery containing theUnder SOLAS regulation II-1/3-absorbed into their fleets smaller sizewithsupplychain?Andinkeepinghazardous substance. 5, asbestos is banned in all ships built vesselsfromtheiracquisitions(seewithsupplychainintegration,moreAccordingtomaritimetestingafter 2011. Ships built between 2002 below) and a slow-down in orderingservice offerings outside of the tradi- facilityMaritec,whichcarriedoutand 2011 may have asbestos fitted but following the implementation of IMOtional role of an ocean carrier?asbestos surveys for IMO complianceonly in certain specified areas (rotary 2020 limiting the sulphur content ofSo,manyquestions,somanybetween2011and2020,morethanvane compressors and thermal insula-marine fuels. directions. 55% of in-service vessels and 50% oftion 1000C, for example).Itwasaremarkableindustryall newbuilds were found to containIf during an IHM survey, asbes-d izzyingS peed oFC onSolidation makeover that happened in just sevenasbestos materials. tos is found onboard a ship built after What is remarkable is the dizzy- years. So, what will the industry lookJohnRendi,GeneralManager,2002,thenitneedstoberemoved ing speed in which the industrys top- like in 2028? Environmental Services, Maritec, said:withinaperiodofthreeyearsand tier built an overwhelming superiorityAlthough newbuild ships are deliv- replacedwithanon-asbestosequiv-in ships and TEU capacity comparedered with an asbestos free declaration,alent.Thisreplacementmustnot to the rest. (FIXcontinued from page 8) in many cases asbestos has been foundbeattemptedbyanyoneotherthan Sevenyearsago,intheAJOTswill be borne by end users, the purchas- onboard during subsequent surveys, ortrained and certified professionals.2014OceanCarrierReview,theers of goods, said Moss. Now, it is forport state inspections. Manyownershavediscovered Top10containershipcarriersfleetotherstakeholderstoconsiderwhatThis is placing shipowners in athey have asbestos onboard following totaled 2,455 ships with a capacity ofthey will do to lower risk and increasevery difficult position. It can lead toIHM audits and are anxious to address 11,388,999 TEUs for an average sizeresiliency in their supply chains. finesanddetentionsalongwiththe(ASBESTOScontinued on page 14)of 4,639 TEUs. The next 90 carriers had a fleet entailing 2,722 ships with a capacity of 5,128,882 TEUs. UnlikeCONECT PRESENTS THE 2021 VIRTUALtodaythenext90shippinglineson the list had a larger fleet (2,722 shipsSPRING CARGO CONFERENCEto 2,455 ships) and the difference in capacity between the Top 10 and the bottom 90 was only 6,260,117 TEUs.TRYING TIMES IN TRANSPORTATION AND TRADEEven the average TEU capacity com-parison was a relatively narrow 4,639 TEUs to 1,884 TEUs. Two Days of Expert Industry EducationMay 12 & 13, 2021So,whathappened?Aquick review of the Top 20 shipping lines of 2014 illustrates the impact of consoli- CONECTs exciting program features industry experts speaking on the state of the container dation. For example, #7 APL is now part of CMA-CGM, #8 Hanjin wentshipping industry, challenges and solutions in intermodal transportation, e-commerce, U.S. bankrupt, #9 China Shipping is nowCBPs trade agenda, import regulations, and much more.part of COSCO, as is #13 OOCL, #11 Hamburg Sud is now part of Maersk, while#19UASCand#20CSAV merged into Hapag Lloyd while theTRANSPORTATION DAY Japanesecarriers#10MOL,#12WEDNESDAY, MAY 12, 1:00-3:30 PMNYK and #17 K Line merged into a new containership operator ONE. InKeynote Speaker: Lars Jensen, CEO and Partner, SeaIntelligence Consultingshort, half of the top twenty operatorsState of the Industry Overview & Economic Updatewere merged into the Top 10. Whatdrovethisconsolidation?TRADE DAY The bottom line. Ocean carriers werent gettingasufficientROI(ReturnonTHURSDAY, MAY 13, 1:00-3:30 PMInvestment)asthereweretoomanyKeynote Speaker: Walter Kemmsies, Managing Partner, The Kemmsies Groupshipschasingtoolittlefreightand doing so at rates too low to produceNew Trade Patterns Post-COVID: On the Cusp of Explosive Growthprofits and sustain growth. The South KoreancarrierHanjinsbankruptcy was simply an exclamation point andALSO FEATURING:a reminder that anyone could fail if the system didnt change. John Leonard, Executive Director, TradePeter Friedmann, CONECT Washington Policy & Programs, U.S. CBP Counsel, FBB Federal RelationsF lipping theS CriptTodd Owen, President, Cross BorderNicole Uchrin, Managing Director, Gemini TheoceancarrierswereabletoAdvisory Network LLC Shippers Associationflip the script quickly from the Hanjin debacle. They did so by emphasizing Susie Hoeger, Senior Director, Global Trade Paula Connelly, Member, Sandler, Traviseconomies of scale as the guiding prin- Compliance & Policy, Abbott Labs & Rosenberg, P.A.cipleindictatingvesselacquisition Mary Jo Muoio, Sr. VP, Trade Services and Christa Hurley, Director Customs & Logistics and deployment. A tactic designed toGovernment Relations, Geodis USA NAFTA, H.C. Starck Tungstenachieve lowest costs per TEU moved. Weston LaBar, CEO, Harbor Trucking The carriers also embarked on re-engi- Association (Long Beach, Calif.) PLUS:neering the backroom ITs to achieve Virtual networking opportunitiesgreater efficiencies while becoming a Brandon Unterbrink, VP International more dynamic part of the supply chainIntermodal Marketing, BNSF RailwayCONECT Partner and Sponsor virtualitself.Fromtheseendeavors,avery Ryan Houfek, Chief Marketing Officer, exhibit and display opportunitiesdifferentindustryemerged: Aleaner,Direct ChassisLink Inc.2.5 CCS/CES/MES/MCS points each daymoreefficientbutincreasinglytop-Ari Ashe, Associate Editor, Journalheavy industry. And it is an industryof CommerceREGISTER NOW!that when the ocean carrier alliancescarrier networks are taken into con-at CONECT.orgsideration (see Alliances on page 6) is really only a three party affair. GiventhecompressioncanthePARTNERSHIPS, SPONSORSHIPS AND BOOKLET ADS ARE AVAILABLE!system of container carriage be ratch- Call Coalition of New England Companies for Trade at 508-481-0424 or go to CONECT.org for details.eted down any tighter without some-JOC_FP_0426.indd 1 4/9/21 11:23 AM'