Marinair© An introduction to Sea + Air Product Sea-Air A cost and time efficient alternative route to the market What Sea-Air isn’t What is Sea-Air Cargo is exported from origins by ocean to an ocean/air hub transshipment point (custom free zone operation) Cargo is discharged from the ocean vessel container, re-palletized at the hub and expedited onwards with airlines Cargo proceeds as airfreight to final destination point Cargo moved under one single document, the Multimodal Transportation Document (MTD) from origin to destination, covering all different transportation modes Faster than pure Ocean, slower than pure Airfreight Significant savings compared to direct Airfreight (+1000 kgs) Sea-Air: The cost and time efficient option Traditional Forwarding Methods Ocean transit time = ~ 28 days port / port Suppliers Air transit time = ~ 3-4 days airport / airport Distribution Centre Sea-Air: The cost and time efficient option Suppliers Ocean transit time = ~ 28 days port / port Sea / Air transit time = ~ 9-20 days port / airport Transit Hub Air transit time = ~ 3-4 days airport / airport Distribution Centre Why Sea-Air Cost effective both in terms of rate and transit time Cost savings of approximately 30% to 40% off airfreight rates Transit time savings of approximately 20% to 40% off ocean sailing times| Time to market, getting cargo to destination at the right time with the right transport mode Reduction in storage and inventory costs Mitigates delays in origins with airport congestions by moving large volumes in containers Useful where airline capacity is limited Ease of CFS operations and procedures Phasing in of cargo to meet scheduled departure dates Reduction in carbon emission levels through reduced usage of airfreight 3 common situations, 1 solution: Sea-Air Planned Sea-Air Client wants an alternative that is cheaper than direct air and with a transit time shorter than pure ocean freight. Extraction Container arrives at seaport of feeder vessel. Before mother vessel arrives, certain PO’s out of the total need to be air lifted Roll/over containers Container arrives at seaport on feeder vessel misses mother vessel. Client needs the whole consignment urgently. Sea-Air will optimize your Enterprise Value 1-3 days Priority Air Transport Cost 3-5 days Economy Air Sea - Air 9-20 (depending on the hub) 25 days + FCL Ocean 28 days + Transit Time LCL Ocean Sea-Air Route via Dubai Sea-Air Route via Colombo Sea-Air Route via Incheon (* refer to t/t table) Sea-Air Origins in Asia PEK DAO TSN ICH TAO DEL SEL XMN KHI DXB CGP SHA TPE BOM SZX MAA HKG BKK BLR CMB KOS SGN KUL SIN CGK SUB NGO Sea-Air origins & transit time break down Origin Qingdao (* 8 days) Xiamen (* 8 days) Shanghai (* 7 days) Transshipment Gateway Carrier Name Ocean transit time Transshipment Handling Airfreight Total Transit (PTP) Colombo OOCL 15 1 2 18 Dubai MOL, COSCO 18 1 2 21 Colombo HAPAG 11 1 2 14 Dubai PIL, YML 16 1 2 19 Colombo EVERGREEN 13 1 2 16 Dubai APL ,RCL, YML, WANHAI 16 1 2 19 Colombo EVERGREEN 9 1 2 12 Dubai APL, HAPAG, HHL, TS Line 12 1 2 15 Colombo APL 13 1 2 16 Dubai CSCL, WANHAI, COSCO 18 1 2 21 Hong Kong Ningbo (* 9 days) Sea-Air origins & transit time break down Transshipment Gateway Carrier Name Ocean transit time Transshipment Handling Airfreight Total Transit (PTP) Colombo MOL 17 1 2 20 Dubai OOCL, MOL 25 1 2 28 Colombo MOL 17 1 2 20 Dubai OOCL, MOL 25 1 2 28 Colombo MOL 17 1 2 20 Dubai OOCL, MOL 25 1 2 28 Colombo MOL 17 1 2 20 Dubai OOCL, MOL 25 1 2 28 Shenzhen (* 8 days) Colombo OOCL 8 1 2 11 Xingang (Tianjin) – (* 7 days) Colombo EMIRATES 18 1 2 21 Origin Kobe Tokyo Osaka Yokohama Sea-Air origins & transit time break down Origin Transshipment Gateway Carrier Name Ocean transit time Transshipment Handling Airfreight Total Transit (PTP) Huangpu (Guangzhou) Colombo OOCL 14 1 2 17 Taipei Colombo EVERGREEN 12 1 2 15 Busan Colombo APL, OOCL 20 1 2 23 Kaohsiung Dubai YML 17 1 2 20 Sea-Air Product Features Neutral NVOCC sea-air product with a wide service range (freight forwarders is the only client basis) Guaranteed 24 hour response with confirmed booking and AWB numbers 2-3 weekly sailing from popular origins Direct MAWB from the hub to Freight forwarder’s destination office Dedicated sea-air team in Dubai, Colombo Carbon emission savings reporting (highest CO2 saving tool) EDI capability for hight tech / electronics / retail sectors Sea-Air Additional Services No restriction on the size of sea-air shipment FCL, Factory loading or dedicated GOH on Hang-Pack cartons Multi country consolidation / deconsolidation Mix and match PO’s per destination countries Palletizing, shrink wrapping and EU/US palletizing Purchase order management, kitting and new commercial documents as a new PO (available only in Dubai hub) Sea-Air cartons for GOH Sea-Air Cost savings Assumptions 1. HKG/LHR air freight rate at HKD 25 /kg all in. ATA rate valid till end of Sept. 2. 1 cbm=167 kgs 3. Transit time on CX/VS on air freight HKG – LHR Transit time 3 cbm / 500 kgs 25 cbm / 4000 kgs 55 cbm / 10000 kgs Air Direct 2 12.593,75 100.750,00 251.875,00 Sea – Air Via DXB 13 7.943,75 63.550,00 158.875,00 Via CMB 18 8.060,00 64.480,00 161.200,00 Via DXB - 4650,00 37.200,00 93.000,00 Via CMB - 4533,75 36.270,00 90.675,00 Via DXB - 37% 37% 37% Via CMB - 36% 36% 36% Savings % Savings If 25% of cost saving offered to the customer check what is the margin for the forwarder? Sea-Air Cost savings Assumptions 1. PVG/FRA air freight rate at RMB 20 /kg all in. ATA rate valid till end of Sept. 2. 1 cbm=167 kgs 3. Transit time on BA/CA on air freight HKG – LHR Transit time 3 cbm / 500 kgs 25 cbm / 4000 kgs 55 cbm / 10000 kgs Air Direct 2 10.240,00 81.920,00 204.800,00 Sea – Air Via DXB 16 6.848,00 54.784,00 136.960,00 Via CMB 18 6.016,00 48.128,00 120.320,00 Via DXB - 3.392,00 27.136,00 67.840,00 Via CMB - 4.224,00 33.792,00 84.480,00 Via DXB - 33% 33% 33% Via CMB - 41% 41% 41% Savings % Savings If 25% of cost saving offered to the customer check what is the margin for the forwarder? Sea-Air transit time breakdown / PTP vs Pure Ocean Origin Transshipment Gateway Ocean T/T Hub T/T Air T/T: FRA Total PTP Colombo 11 1 1 13 Dhaka Pure Ocean T/T 28 Dubai 5 1 2 8 Colombo 12 1 1 14 Hong Kong 21 Dubai 9 1 2 12 Colombo 16 1 1 18 Shanghai 34 Dubai 13 1 2 16 Colombo 17 1 1 19 Kobe 38 Dubai 17 1 2 20 Colombo 12 1 1 14 Taiwan 24 Colombo 12 1 2 15 Sea-Air Benefits of using our service Most competitive rates in market under neutral NVOCC service (no direct selling to clients). Client does not know who operated the sea-air product The only sea-air product that offers minimum 2 sailings a week from +14 origins in Asia The only sea-air product which has a shorter transit time than Dubai at the closest competitive rate Forwarding agents do not need to operate dedicated sea-air boxes on their own Any size can be handed over to the twice weekly consolidation ex China/HK and other Asian origins 24 x 7 coverage or sea-air operations between Dubai and Sri Lanka. Personalized track and trace updates. On line customs in UAE, bonded transfer in Colombo Dubai as transshipment hub Dubai is the longest sea-air hub in the world (+20 years history) Direct vessels from Asia Over 70 airlines calling Dubai, Sharjah, Abu Dhabi Middle East has the fastest air-capacity growth compared to any other region Less impact on Dubai during peak seasons than Asian hubs Availability of charters for special lift requirements Growing capacity to Latin America Colombo as transshipment hub Largest transshipment ocean port in the Sub Continent 4 million TEUs as throughput with 75% of it as transshipment All mother vessels call Colombo for cargo in/out of India, Pakistan, Bangladesh and Maldives All Middle Eastern Airlines operates minimum of daily passenger flights and minimum of 2 freighters a week. Carriers are QR/EY/SV/UL/MH Container available in 4-6 hours from vessel berth Special approval to operate during weekends on express channel Transshipment Control Towers & Service Desks Dubai * Sri Lanka * Russia Transshipments Control Towers Russia China Hong Kong Russia Europe * Main Transshipment Control Towers Origin CFS to Airport follow-up Monitor and guide documentation process Ensure capacity is secured for ocean & air, communicate with airlines and brokerage teams Follow up and handover of arrived shipments to sea-air destinations desk for POD GOH solutions by Sea-Air Carbon Emission Savings by Sea-Air …………………………..The highest CO2 savings tool in the supply chain industry CO2 Emission output by transport mode Following Matrix of CO2 output is based on Door to Port comparison only. All CO2 studies need to cover door to door emission output. Shipping industry has adopted different methods like Slow Steaming to use less fuel and emit lower carbon output. The shipping industry and Rail emits lower amount of CO2 compared to other modes of transport. However the transport industry needs faster modes of transport like Air freight & Courier. CO2 Emission calculation for Sea-Air Scenario: Origin: Shenzhen / Destination: Brussels / Shipment Size: 4000 kgs / 3 modes of transport options Start Mode Distance CO2 output Saving Ocean 9.778 kms 1.698,86 kgs 94% Sea-Air 10.169 kms 17.698,46 kgs 42% Air 9.310 kms 30.737,02 kgs 100% 1st of Jan 2012 _ Eurozone Cost of Carbon USD 7.80 per Ton (tradable) / USD 24.0 per Ton (taxable , Estimated) Savings from this Shipment USD 101.70 ( Carbon Trading) / USD 312.93 ( Taxable ) End Marinair© Thank You