1. Rolf Altorfer
President & CEO North America
Kuehne + Nagel,
Jersey City, NJ

2. International Trade Supply & Demand
Limitations (i.e. Seafreight)
Possible Consequences

3. Who We Are & What We Do Non-asset based company
More than 830 offices worldwide, 85 in the US
One of the largest global logistics providers
Seafreight, airfreight, contract logistics and supply chain services
Competitors:
DHL, Deutsche Post, Expeditoors, Panalpina, Nippon Express, Maersk Logistics

4. Our Customers
Additional 4,000 smaller customers

5. Our Seafreight Partners
All asset-based steamship lines and carriers:
NOL
Evergreen
Yang Ming
APL
Hanjin
OOCL
Cosco
Maersk/Sealand
Maersk
Hapag-Lloyd, CMA
MSC
Hamburg Sud
Zim
The number of lines has diminished by 40% over the past 10 years due to consolidation of the industry

6. MS Emma Maersk – Capacity: 11,000 – 15,000 TEU

7. Development of Container Vessel Size
Market Development Container vessels doubled in size during the last decade
Development of Container Vessel Size
1st-2nd
Generation
(1968)
3rd - 4th
(1972)
Post-Panmax
(1994*)
Suezmax
(2006)
TEU
1.000 – 2.000
3.000 – 4.700
4.700 – 9.000
~ –
Draft
10 – 11,5 m
12,5 m
13,5 -14,5 m
15,5 m
Width
28 m
32 m m
57 m
* First Post-Panmax already in 1988

8. Glossary TEU: Twenty foot equivalent unit
FEU: Forty foot equivalent unit
CFR: Cost of goods and freight
Seller’s TEUs, seller owns goods to arrival point/port
FOB: Free on Board
Buyer’s TEUs, buyer owns goods or loaded on ship and pays freight

9. World Container Traffic
Millions TEU

10. Asia-Europe-Asia Trade
Volume
Rates
TEU’s Volume in Millions
Eastbound: 6M Europe Asia
Westbound: 15M Asia Europe
Intra Asia: 34M All Directions

11. Asia-USA-Asia Trade TEU Volume in Millions
Rates
TEU Volume in Millions
Pacific: Eastbound 22M Asia North America
Pacific: Westbound 6M North America Asia
Atlantic: Eastbound 2M Westbound: 5M

12. Port of Singapore 12% of global container capacity is laid up!
17-18M TEU capacity
Approximately 200 ships of all types and sizes

13. Load factors: insufficient levels
Supply & Demand potentially ineffective under certain economic conditions
Load factors: insufficient levels
i.e. Asia/Europe, lay-ups – reduce capacity
Imbalance of trade
There is a cost for positioning equipment/containers
Consolidation of the carrier industry will increase the leverage of
carriers to influence price/cost

14. Higher costs for consumers may result despite of ample carrier capacity (incl. idle) because:
Higher base rates from carriers and/or capacity
Present rates provide insufficient revenue levels. Carriers may lay up more ships or go out of business
Higher inventory, costs of goods due to fewer services and frequencies
Customer dissatisfaction, late deliveries may result in loss of business
In addition to shipping costs, other incremental costs linked to the supply chain affect goods ultimately reaching the consumer.