04: Global Shipping

Question 1

Maritime Shipping Demand

Answer 1

• sees significant growth against China’s export boom and port congestion
• Asia-Pacific demands dominates Maritime shipping

Question 2

Maritime shipping shortage

Answer 2

• all shipping routes from Asia are experiencing severe capacity shortage
• yet capacity & demand is balanced in Euro-NA shipping route (why)

Question 3

Rising air shipping demand

Answer 3

• response to e-commerce boom and ocean shipping constraints
• low value cross border e-commerce demand continues to surge
• goods (tech, pharma & perishables) are the leading sectors of the air trade growth

Question 4

Impact of China & Hong kong air exports

Answer 4

• low value air exports distrupt trade causing air cargo capacity shortages

Question 5

Covid impact on Maritime Shipping

Answer 5

1. 7% decline in maritime container imports
   - b/c empty containers are not being returned to suppliers quick enough
2. reduced workforce availability & lockdowns
   3, emergence of shipping alliances

Question 6

Covid impact on Air Shipping

Answer 6

1. reduced air freight capcity
   - reduced passenger flight schedules
   - passenger aircraft turned into cargo carriers
2. increase demand for goods
   - PP&E products
   - medical supplies
3. rising air freight rates
   - demand > supply

Question 7

Red Sea Attacks

Answer 7

What: Iranian backed Houthi rebels in Yemen
- disrupts the Asia-Europe trade & causes round trip
- increased insurance premiums
- massive supply chain management
- higher cost would affect inflation

Question 8

Implementation of Straits

Answer 8

• transport goods easily and quickly throughout the world
• locations history & strategic positions
  –> how can we use AI to improve

Question 9

How to implement AI to improve

Question 10

Response to Risk

Answer 10

1. build resilience
   - diversify production & shipping routes
   - nearshoring & restoring
2. tracking
   - anticipate arrivals & departures
   - vessel location & crew status to prepare for potential rescues or reroute ships

Question 11

Digital Transformation

Answer 11

1. cybersecurity
   - increased syber attacks due to COvid
   - improved security assurance for operational & regulatory data
2. optimize operations
   - robotic process automation
   - digital ship services
   - predictive analytics to optimize shipping routes

Question 12

Talk about the Suez Canal

Answer 12

• owned by Egypt and manages who goes through it
• connects the Mediterranean sea to the red sea
• reduce travel from Europe and Asia (more accessible)
• makes money on tolls
  –> makes vessel, size (how big the ship is), cargo capacity
• it can fit two ships each way
• took them six days clear the ship the blocking the way (route)

Question 13

Impacts of Red Sea Attacks

Answer 13

• went away to around Africa
• cost effecitve
  –> time is money
  –> not fuel effective

Question 14

How do shipping costs affect the prices and products like electronics or medicine that are shipped around the world

Answer 14

electronics
- large corporations
- manufacturing

medicine
- basic needs
- not enough supply to help patients