Mediterranean Shipping Company

EXPORT MARKETING

REPORT ON MEDITERRANEAN SHIPPING COMPANY                                                                                         Contents                                                                           PAGE#

Executive Summary........................................................................................................................................ . 2

Market Overview............................................................................................................................................. ..3

Market Structure .......................................................................................................................................... ... 4

Economic overview....................................................................................................................................... ... 4

Market Players............................................................................................................................................... ... 5

Introduction to MSC..................................................................................................................................... ... 8

MSC History................................................................................................................................................. ... 8

Services offered by MSC ............................................................................................................................... ... 10

Market Share (Local & International............................................................................................................ ... 11

Awards ............................................................................................................................................................ . 12

Customer Base.............................................................................................................................................. ... 14

Major Challenges Faced  .............................................................................................................................. ... 14

SWOT............................................................................................................................................................ ... 15

Appendix A .................................................................................................................................................. ... 16

Appendix B ..................................................................................................................................................... .17

Executive Summary

This report will highlight a critical study and analyze the Export marketing activities in Mediterranean Shipping Company S.A. (MSC) is the world's largest shipping line in terms of container vessel capacity. MSC operates 469 vessels and has a capacity of 2,100,000,000 twenty-foot equivalent units (TEU). The Geneva-based company operates in all major ports of the world.

MSC serves 270 ports worldwide on the six continents. 350 local offices, employing a total of 29,000 people, provide an agency network representation. Vessels with up to a capacity of 13,800 TEU, including one of the largest container ships

The shipping industry globally is characterized by small number of large players. The top 10 ocean carrier companies have captured more than 60% of the market share in terms of operating capacity. The Logistics industry is divided into three major areas of business

From the shipping perspective, uncertain demand outlook is only part of the picture. Prospects for
shipping remain difficult and uncertain, due in particular to the significant size of the ship supply capacity
and the impact of the demand/supply mismatch on shipping markets. An added challenge relates to the
evolving global regulatory framework, driven by emerging global challenges including energy security, a
potential seafaring crisis, and supply chain security, as well as environmental sustainability and, more specifically, the climate change challenge and the related mitigation and adaptation imperatives

Customer Base : Garments and   textiles,Semi-finished textiles/Raw Cotton products, Food exporters

Sea Food exporters, Misc: (Cement, Dates etc)

Market Overview

The year 2009 witnessed the worst global recession in over seven decades and the sharpest decline in the volume of global merchandise trade. No shipping segment was spared; minor dry bulks and containerized trades suffered the most severe contractions. This reflected the weak consumer confidence which depressed the retail sector, and the low level of capital investment, as well as a slowdown in the real estate and housing sectors, especially in advanced economies.

By early 2010, the global recovery led by fast-growing developing economies was under way, although it
was uneven and fragile. The sustainability of the recovery is challenged, among other things, by the fragile conditions in most advanced economies and the risk of a premature winding-up of the stimulus packages.

From the shipping perspective, uncertain demand outlook is only part of the picture. Prospects for
shipping remain difficult and uncertain, due in particular to the significant size of the ship supply capacity
and the impact of the demand/supply mismatch on shipping markets. An added challenge relates to the
evolving global regulatory framework, driven by emerging global challenges including energy security, a
potential seafaring crisis, and supply chain security, as well as environmental sustainability and, more specifically, the climate change challenge and the related mitigation and adaptation imperatives. Assuming the recovery takes holds and there are no new upheavals on the global scene, the shipping industry and  seaborne trade are expected to recover in 2010, although with more of the ground lost in 2009 likely to be recovered in 2011 and beyond.

In 2010, the volumes of shipping companies grew & all shipping companies recovered. The cargo movement around the world increased by 40%.

Market structure 

The shipping industry globally is characterized by small number of large players. The top 10 ocean carrier companies have captured more than 60% of the market share in terms of operating capacity. The Logistics industry is divided into three major areas of business

Economic Overview

The recovery on the demand side is a welcome development for shipping. Global GDP and international seaborne trade are expected to recover and grow in 2011. The world container traffic is expected to fall where as the fleet capacity will grow consistently. For shipping, economic recovery and trade expansion are only part of the picture and do not tell the full story.

By experiencing the world recovery from the economic disaster in the year 2010, the prospects for 2011
are positive, and point to a potential recovery in the course of the year. GDP growth in developing Asia
in 2011 is forecast to almost double, to 7.8 per cent. Growth is expected in all sub regions, with relatively
high growth rates both in East Asia (8.9 per cent) (with China in the leading position with 10.0 per cent),
and also in South Asia (6.6 per cent) largely on account of robust growth in India (7.9 per cent) Pakistan
(4.5 percent).

Market Players

Introduction of MSC

Mediterranean Shipping Company S.A. (MSC) is the world's largest shipping line in terms of container vessel capacity. MSC operates 469 vessels and has a capacity of 2,100,000,000 twenty-foot equivalent units (TEU). The Geneva-based company operates in all major ports of the world.^[3]

MSC was founded in 1970 as a private company by Gianluigi Aponte when he bought his first ship, Patricia, followed by Rafaela, with which Aponte began a shipping line operating between the Mediterranean and Somalia. The line subsequently expanded through the purchase of second-hand cargo ships. By 1977, the company operated services to northern Europe, Africa and the Indian. The expansion continued through the 1980s; by the end of the decade, MSC operated ships to North America and Australia.^[3]

In 1989, MSC purchased the cruise ship operator Lauro Lines, renamed to Mediterranean Shipping Cruises (MSC Cruises) in 1995, and subsequently increased the cruising business.

In 1994, the line ordered its first newly constructed ships, which were delivered beginning in 1996 with MSC Alexa. They were built by Italian shipbuilder, Fincantieri.

MSC HISTORY

From 1978 to 1995 Arkas Shipping and Transport S.A., one of the Arkas' Transportation companies, served as the Turkish partner for Mediterranean Shipping Company (MSC). In response to MSC's expanding transportation services network all around the world and in Turkey, the MSC Shipping Agency was established in May 1995 as a partnership with Arkas with a distinct and autonomous structure.

MSC provides direct and indirect services from four main marine transportation hubs in Turkey, Istanbul (Marport and Yılport), Izmir (TCDD and Nemport), Mersin, Bursa (Gemport and Borusan), Antalya, Iskenderun and Samsun. Services are also offered in Trabzon by sub-agent.

MSC Shipping Agency, provides its customers with regular weekly services to/from anywhere in the world, rapidly and consistently at competitive freight charges, supported by MSC's other services sector companies, with high capacity regularly scheduled ships, direct lines, land transportation services using the latest model vehicles, services which keep pace with technological developments, and the highest standard of port services.

Information related to the transit periods and modes of transportation of import/ export goods can be found in the sailing schedule section. MSC export contacts and import contacts will be at your disposal to provide all information on any other inquiry.

The company today

MSC serves 270 ports worldwide on the six continents. 350 local offices, employing a total of 29,000 people, provide an agency network representation. Vessels with up to a capacity of 13,800 TEU, including one of the largest container ships, MSC Emanuela and her sistership MSC Beatrice. The company remains independent and wholly owned by its president Aponte and his family.

The growth of MSC is fully organic, and not through Mergers and Aquisition.

The line was named shipping line of the year in 2007 for the sixth time in eleven years by Lloyds Loading List, which is an achievement not matched by any other shipping line. The line has just also placed orders for eleven new vessels that will be able to carry up to 15,000 TEUs each, which are some of the largest container vessels in the world.

MSC India's new headquarters building "MSC House" was inaugurated by Diego Aponte in 2008.

Cyprus being the hub of container shipping market, MSC Cyprus new headquarters was inaugrated on 8th April 2009 by Mr. Diego Aponte.

Interlink Transport Technologies Inc. in Warren, New Jersey is a subdivision serving some of the company's IT needs.

Services offered

 

A Global Transportation Solution

MSC provides an unparalleled service network via dedicated own offices throughout the world and remains a truly independent and private Company able to respond quickly to market changes and implement long term plans, without unnecessary interference or delay. As of the end of November 2011, MSC was operating 463 container vessels with an intake capacity of 2,092,000 TEU's.   With a streamlined management structure in Geneva, MSC has become a leading customer focused and cost effective global transportation solution for many shippers.

MSC Mediterranean Shipping Company is pleased to announce the introduction of two new services linking North American, Central American and South American ports on the Pacific Coast:

The Puma Service will link ports in USA, Mexico, Guatemala, El Salvador, Costa Rica and Panama, offering a weekly service between Balboa, Long Beach, Oakland, Manzanillo, and Puerto Caldera. In addition fortnightly calls will also be made toSalina Cruz, Mazatlan, Puerto Quetzal and Acajutla. The first sailing, the MSC Peru, will inaugurate this service by sailing from Balboa on 29^th April.

The Condor Service will link ports in Peru, Ecuador, Colombia and Panama by offering a weekly service between Balboa, Callao, Paita, Guayaquil, and Buenaventura. The first sailing the MSC Paola will inaugurate this service by sailing from Balboaon 18^th of April.

Calls at Balboa will enable both services to connect with the full range of our extensive services that transit the Panama Canal.

These additional services compliment MSC Mediterranean Shipping Company’s already established comprehensive service network in the Pacific, providing customers with exceptional market coverage and short transit times, through dedicated services.

Further information about these revised services can be obtained from your local MSC Agency Office

Market Share Local and International

LOCAL SHARE

JAN-OCT 2011 PAKISTAN

1-MAERSK     11.8%

2-MSC 11.6%

3-APL 8.8%

AWARDS

Awards gained by MSC/Mediterranean Shipping Company Ltd

·IFW Container Line of the Year  2011

·IFW Container Line of the Year  2010

·Lloyds Shipping Line of the year - 2007, 2006, 2005, 2003, 2002, 2000 and 1996

·Lloyds Customer Services Award for Australasia and Africa and North America Services - 2007

·Lloyds Customer Services Award for the Mediterranean Service - 2006

·Lloyds Fastest Transit Times Star Performer - Arabian Peninsular Route 2004

·Lloyds Fastest Transit Times Star Performer - South America East Coast 2002

·Lloyds Customer Service Star Performer - Africa 2001 and 2002

·Lloyds Fastest Transit Times - South Africa 1993, 1994, 1999 and 2002

·Lloyds Customer Service Star Performer - North America 2002

·Lloyds Customer Service Award - Africa 2001

·Lloyds Fastest Transit Times - South America, Atlantic Coast 2000, 2001, 2002 and 2004

·Containerisation International's 1999 "Company of the Year"

·Lloyds Fastest Transit Times - East Africa 1999

·Lloyds Star Performer - South America, Atlantic Coast 1998 and 1999

·Lloyds Star Performer - US South Atlantic/Gulf 1995, 1996, 1997, 1998 and 1999

·Lloyds Star Performer - South Africa 1995, 1996, 1997, 1998 and 1999

·Lloyds Star Performer - East Africa 1995, 1996, 1997 and 1998

·Lloyds Star Performer - North Atlantic 1995, 1996 and 1997

·Lloyds Customer Service Star Performance - Australia 1995, 1996, 1997 and 2004

·ICI Liner Agent of the Year - 1994 and 1996

·Lloyds Schedule Reliability - East Africa 1993

·BIFA Freight Services Award for Deep Sea and Multimodal Services 1990

• British Shipper and Forwarder Silver Award for services to Africa - 1989 and 1990

ISO 9001

Since June 2010, MSC Belgium has been certified to the ISO 9001:2008 standard for the provision of liner shipping agency services of MSC (Geneva) S.A, including sales, export/import operations, forwarding operations, customs activities and logistics. 

The certification of MSC Belgium has been done by Lloyd's Register, the leading organisation in Maritime Auditing, Quality Assurance and International Standards in general. 


ISO (International Standards Organizations) is a network of the national standards institutes of 157 countries, on the basis of one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. 

ISO 9000 is concerned with "Quality Management". This means what the organization does to enhance customer satisfaction by meeting customer and applicable regulatory requirements and continuously to improve its perform

Customer Base

1.      Garments and textiles

2.      Semi-finished textiles/Raw Cotton products

3.      Food exporters

4.      Sea Food exporters

5.      Misc: (Cement, Dates etc)

The Importers

This is a smaller segment  of the customers of MSC.

•        The Automotive Assemblers.

•        Beverages companies.

•        FMCG Companies

•        Tiles and Ceramics  etc

Major Challenges Faced

1.   In terms of industrial growth and trade the year 2009 was the worst year ever experienced.

2.   The supply / demand balance continued to worsen the next year.

3.   The ships/Carriers focused on profitability, not market share keeping in view the economic

conditions.

4.   The strategies followed by the companies proved to be suicidal, but most carriers denied the

facts.

5.   The freight rates for the operational regions East/West fell by 30% for the next year.

6.   Standards of service started suffering due to losses and trade gaps.

SWOT

Strength

•         GLOBAL COVERAGE

•         MSC is the 2^nd biggest container company

•         MSC has an excellent safety oriented work culture and treats its employees as part of the family.

•          Very Strong Customer Services

•          3-4 weeks inventory of Equipment

•          Availability of Space

Weakness

•         25% CASES OF DELAYS IN DELIVERIES

(5- 10 days )

OPPORTUNITIES

•         Can expand business for U.S market

•          Reefer Market

THREATS

•         Recession in World Economies

For More Information Related To MNC(Mediterranean Shipping Company) Click The Below Link

http://exportpakistan.blogspot.com/2011/12/mediterranean-shipping-company.html

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