MERCHANT MARINE AND MARITIME TRANSPORT 2014 / 2015 ASOCIACIÓN DE NAVIEROS ESPAÑOLES

Transcription

1 MERCHANT MARINE AND MARITIME TRANSPORT 2014 / 2015 ASOCIACIÓN DE NAVIEROS ESPAÑOLES

2 2 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

3 CONTENTS I. Foreword by the President... 4 II. Executive Committee... 6 III. Board of Directors... 7 IV. Staff World seaborne trade World merchant fleet Shipbuilding Spanish seaborne trade Spanish flagged fleet Spanish controlled fleet International maritime policy National maritime policy Statistical annex...30 Member shipping companies...34 Edition and design: ANAVE Printed by: Gráficas de Diego Reproduction is permitted provided that the source is acknowledged MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015 3

4 IFOREWORD BY THE PRESIDENT In 2014, according to the International Monetary Fund, world economy grew by 3.4%, the same as in There was a slight reduction of the strong imbalances between the different areas: while in China growth receded from 7.8% to 7.4% and in the group of emerging and developing countries from 5.0% to 4.6%, GDP growth of advanced economies increased from 1.4% to 1.8%; that of the USA from 2.2% to 2.4% and, most notably, the Euro zone advanced from -0.5% to +0.9% and, specially, Spain, from -1.2 to 1.4%. World seaborne trade grew last year a moderate 3.5% to a new record level of 10,529 million tonnes (Mt). In terms of t mile, the increase was 4.6%. At the same time, the world fleet transport capacity only grew by 3.6% in dwt, due to a 15% decline in deliveries, although scrapping levels also decreased. Overall, in 2014, maritime transport demand grew more than supply, for the first time in six years from the outbreak of the financial crisis. But the evolution showed to be uneven in the main freight markets. Both tankers and bulk carriers suffered a negative streak from the beginning of the year that changed in September, when freight rates started to show sensitive recoveries. This tendency was maintained in the case of oil tankers, with increases in average rates above 50%, while the bulk carriers market collapsed again shortly after, bringing the Baltic Dry Index in February 2015 down to 509 points, a record low for the past 30 years. Container ship rates remained fairly stable or increased slightly, while oversupply made methane carriers (LNGs) freight rates to fall more than 40%. Positive news was the unexpected decrease, from spring 2014, of crude oil prices and, therefore, of marine fuels. Comparing prices in May 2015 with those of six months ago, fuel oil is now 20% cheaper and diesel oil 31% cheaper (in dollars). But the impact of lower prices on each shipping company was very uneven. On the one hand, for time chartered vessels, fuel costs are covered by the charterer, so the owner has not taken advantage of this decline at all, neither the shipping companies that hedged their fuel price early in In addition, the euro/dollar exchange rate evolved exactly opposite to oil prices, so that shipowners that paid fuel invoices in euro didn t appreciate too much difference either. In Spain GDP increased by 1.4% and national seaborne trade (excluding transhipments), after falling by 3.9% in 2013, recovered by 5.2% to 325 Mt. Exports rose 4.5% to a record 96 Mt. Imports increased even more (5.4%) totalling 188 Mt, a clear evidence that domestic demand has begun to activate. Piracy and armed robbery incidents in Somalia/Gulf of Aden, which had already decreased dramatically during 2013 to 13 attacks, fell further in 2014 to only 7 cases with no reports of successful kidnappings, confirming that, at least in this area, the pirate threat may be considered under control. Similarly, pirate incidents decreased also in Nigeria, from 31 to 18 attacks. On the contrary, in other geographical areas, such as Indonesia and Malaysia, the number of incidents increased slightly, from 115 to 124 cases, thus confirming that the piracy threat remains unchanged in these areas and, in some cases, merchant ships have to rely on private armed security services on board, a possibility which is already accepted by the vast majority of countries. In the international regulatory framework, the maritime industry spent 2014 awaiting a milestone that, in fact, arrived on 1 January 2015, date on which the new 0.1% ceiling for sulphur content in marine fuels in North America and northern Europe Emission Control Areas (ECAs) entered into force. Most shipping organizations and classification societies repeatedly warned on the complex consequences of the implementation of these new standards, which eventually became effective before a solution was found to the existing technical and regulatory barriers to the use of alternative technologies, such as exhaust-gas scrubbers or the use of Liquefied Natural Gas (LNG) as marine fuel. By coincidence, in January 2015 fuel prices had fallen to a 6 year low. This was a decisive factor for the vast majority of the shipping companies concerned, that mostly decided, at least for the time being, to use low sulphur diesel oil, although it is currently a huge 70% more expensive than heavy fuel oil. But, given that fuel prices are likely to continue recovering, it is essential that the referred obstacles are solved, particularly through the deployment of an adequate and sufficient LNG bunkering infrastructure to ships calling at European ports. ANAVE has submitted to the Spanish Government a set of proposals in order to restore the competitiveness lost by the REC in favour of other European registries The following regulatory pressure on shipping companies is likely to be the entry into force of IMO Convention on Ballast Water Management (BWM 2004), by which shipowners shall be required to invest several million euros per vessel. In May 2015, IMO has clarified some technical issues 4 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

5 of this Convention on which there was still great uncertainty. This development is likely to encourage some States to ratify the BWM Convention which may finally come into force in 2016 or In anticipation of this, and given the complexity of the convention, it has been a year now since ANAVE established a working group in order to support our member companies in its implementation. As part of the tasks of this group, ANAVE has been working with the Spanish Administration in order to clarify, as soon as possible, how the Convention is going to be applied to national cabotage trades in Spain. At EU level there has not been any major developments over the past year. The renewal of the Parliament and the Commission logically led to delays in the discussion of several pending pieces of legislation, including the proposal for a regulation on market access to port services, for which, in any case, there is very little expectation from the shipping industry. In November 2014 Regulation (EU) 2015/757 was adopted, on the monitoring, reporting and verification (MRV) of CO2 emissions from shipping, which is not expected to have significant effects, given that IMO will most likely establish a similar system before it enters into force (in 2018). A little earlier, in October, Directive 2014/94/EU, on the deployment of alternative fuels infrastructure, was published in the EU Official Journal, although the final outcome was very disappointing for the maritime transport industry, because it does not contain concrete commitments and it has postponed its effectiveness until 2025, ten years after the 0.1% sulphur limit requirement in the European ECAs enters into force. In May 2015, all European shipping and port industries organizations, including maritime transport users, with a rarely seen unanimity, sent a joint letter to the Commission, Parliament and Member States, calling for concrete measures to achieve the objectives of the so-called Athens Declaration, very positive for the shipping industry, which was signed by EU transport ministers in May The industry organizations placed a special emphasis on the objectives aimed at obtaining the greatest possible potential from Shortsea Shipping, which should not become a mere declaration of good intentions, but should materialize, as soon as possible, in concrete actions and measures for the benefit of the European general interest. Still pending is the decision of the EU General Court about the appeals, including the one from the Spanish Government, against the European Commission s Decision of July 2013 on the Spanish Tax Lease. At the same time, the new tax lease system, approved by the Commission in November 2012, started to operate at a good pace, especially after the rejection of the appeal lodged against it by the Netherlands, what is facilitating the launch of shipbuilding contracts to Spanish shipyards. In July 2014, the Spanish Parliament at last passed Law 14/2014, on Maritime Navigation, which final text ANAVE strongly supports, with only a couple of shortcomings in aspects of detail, regulation of the P&I coverage and limitation of responsibility for Recognised Organisations, which must be solved sooner or later in order to align our maritime legal framework with that of our neighbouring countries. I have left for the end the bad news of the sharp decline suffered last year by the Special Canary Islands (REC) registered fleet, which, together with the one already experienced in 2013 and also in the first months of 2015, means that in two and a half years the Spanish flagged merchant fleet has lost 13% of its units and 27% of its dwt. ANAVE has submitted to the Spanish Government a set of proposals in order to restore the competitiveness lost by the REC in favour of other European registries, justifying that the main beneficiaries of these measures, which would have no budgetary cost, would be on the first place, the Administration itself and, secondly, the employment opportunities for Spanish seafarers. Adolfo Utor MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015 5

6 IIEXECUTIVE COMMITTEE President Mr. Adolfo Utor Martínez Baleària Eurolíneas Marítimas, S.A. Vicepresident and Treasurer Passenger Lines Committee Chairman Executive Committee Member Dry Bulk Cargo Tramp Trade Committee Chairman Mr. Gonzalo Alvargonzález Figaredo Mr. Antonio Armas Fernández Mr. Alejandro Aznar Sainz Mr. José. A. Baura de la Peña Ership, S.A. Naviera Armas, S.A. Grupo Ibaizabal Empresa Naviera Elcano, S.A. Cargo Lines Committee Chairman Mr. Vicente Boluda Fos Grupo Boluda Fos, S.A. Tankers Committee Chairman Mr. Andrés Luna Abella Teekay Shipping Spain, S.L. Special Trades Committee Chairman Mr. Juan Riva Francos Flota Suardíaz, S.L. 6 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

7 In addition to the Executive Committee members, the following persons belong to ANAVE s Board of Directors as of 1 June 2015: IIIBOARD OF DIRECTORS OWN RIGHT MEMBERS Mr. Amalio Muñoz Baleària Eurolíneas Marítimas, S.A. Mr. Gorka Carrillo Boluda Lines, S.A. Mr. Ignacio Boluda Boluda Tankers, S.A. Mr. José Rull Distribuidora Marítima Petrogás, S.L.U. Mr. José A. Baura Empresa Naviera Elcano, S.A. Mr. Jaime Álvarez Ership, S.A. Mr. Rafael Rolo Flota Suardíaz, S.L. Mr. Juan Ignacio Liaño Fred Olsen, S.A. Mr. Jorge Zickermann Gas Natural SDG, S.A. Mr. Jesús de Miguel Ibaizabal Management Services, S.L. Mr. Vicente Capell Knutsen OAS España, S.L. Mr. Joaquín Viejo Naviera Armas, S.A. Mr. Jon Santiago Naviera Murueta, S.A. Mr. José Villasante Teekay Shipping Spain, S.L. AREA REPRESENTATIVES Andalucía, Ceuta and Melilla: Mr. Jesús Valdivieso Team Tankers International, LTD Asturias and Cantabria: Mr. Santiago Fernández J&L Shipping, S.L. Canary Islands: Mr. John Nielsen Bernhard Schulte Canarias, S.A.U. Catalonia, Levante and Balearics: Mrs. Virginia Doval Transportes M. Alcudia, S.A. Central area: Mr. Ricardo Rubio Bergé Shipbrokers, S.A. Galicia: Mr. Darío Amor Naviera de Galicia, S.A. Basque country: Mr. León Mengod Mureloil, S.A. MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015 7

8 IVSTAFF CEO Mr. Manuel Carlier Dr. Naval Architect CEO of ANAVE since 1996 and formerly head of the Studies Department since 1985 Deputy Director Mrs. Elena Seco Naval Architect After joining ANAVE in 1996, she has served as Deputy Director since 2003 Safety and Ports Mrs. Araiz Basurko Master Mariner Since 2004, in charge of the Safety and Ports Unit Studies Department Mrs. Maruxa Heras Naval Architect In ANAVE since 2007 Administration Mrs. Désirée Martínez Master in Business Administration In charge of the administrative management since 2008 Legal Advisor Mrs. Esther Celdrán Degree in Law and Business Administration Since 2011, she is responsible for legal advice Press Mr. Rafael Cerezo Journalist Joined the Press Department in MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

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10 01WORLD SEABORNE TRADE GEnERAL OVERVIEW. The International Monetary Fund (IMF), in its April report, estimated that world GDP grew in 2014 by 3.4%, the same figure than in However, the year 2014 has characterized by a slight reduction of the strong imbalances between the different areas. Thus, while GDP growth in China receded from 7.8 to 7.4%, and in the group of emerging and developing countries, from 5.0 to 4.6%, GDP growth of advanced economies increased from 1.4 to 1.8%. The USA records also improved slightly (from 2.2 to 2.4%). Among the advanced economies, only Japan reduced its growth from 1.6% to -0.1%. Spain improved significantly, from -1.2 to +1.4%, as did the whole of the Eurozone, from -0.5 to +0.9%. For 2015, the latest IMF forecast for Spain is a growth of 3.1%, which the Spanish Government increases to 3.5%. It is expected that overall, the Euro zone, will progress to a 1.5% growth, the USA to a solid 3.1%, and the advanced economies growth will increase to 2.4%, while China will continue moderating its growth to a 6.8%. All in all, this would lead to a world GDP growth of 3.5%, marginally higher than in 2014, and again, to a more balanced global growth. During 2014, according to Clarkson, world seaborne trade increased by 3.5%, reaching a new record of million tonnes (Mt). Measured in tonnes mile (t mile), it grew by 4.6% to 52.6 trillion (1012) (See Statistical Annex Table I). At the same time, the world fleet transport capacity only grew by 3.6% in dwt, due to lower deliveries (-15%), although scrapping levels also decreased (-26%). Overall, in 2014, maritime transport demand grew more than supply, for the first time after six years of the outbreak of the crisis, thus starting the absorption of the fleet capacity surplus. BY MERCHAnDISE TYPES. According to the International Energy Agency, world crude oil production increased in 2014 by 2.3%, to 93.5 million barrels per day (Mbd), of which OPEC countries produced 36.7 Mbd, a very similar figure to that registered in 2013 (-0.1%). OPEC countries accounted for 39.2% of world crude oil production. Clarkson estimates that 1,806 Mt of crude oil (-1.5%) and 979 Mt of oil products (+2.1%) were transported by sea. In t mile, crude oil seaborne trade was 9.0 trillion (+0.9%) and product was 2.9 trillion (+3.2%). Maritime transport of main dry bulks (iron ore, coal and grain), according to Clarkson, totalled 2,952 Mt, with an increase of 7.2% as compared to Growth in t mile was 6.5% reaching 15.6 trillion. Iron ore seaborne trade grew a remarkable 12.0% to 1,332 Mt, coal demand increased to a much lesser extent (+1.9%) totalling 1,201 Mt and, finally, grain seaborne trade summed up 419 Mt (+8.3%). The behaviour of the iron ore market was very singular over the past year. On the one hand, ore prices, that have been dropping for two years now, reached 51$/t in April 2015, 55% less than one year ago and 63% less than in April On the other, China's iron ore demand is growing at a slower pace than expected. According to Statista data, it grew by 5.7% during 2014, totalling 872 Mt, after registering growth rates of 9.1% in 2013 and 10.0% in World Steel Production Figures in million tons. Source: World Steel Association 800 China Japan USA India EU(15) World Steel Production in ,637 Million tons Others MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

11 We could think that, due to this lower demand, production should also drop to adjust to the new market scene, but major mining companies are committed to further increasing their production in the coming years, in order to force the closing up of uncompetitive mines and absorb their market share. Brazil's Vale plans to increase its iron ore production by 40% from now to 2018, and to cut its production costs to 19.6$/t. Meanwhile, BHP and Rio Tinto will also increase capacity significantly and will keep costs at 20$/t or less. In this situation, it is possible that the Chinese Government choose to support their less profitable domestic mines to prevent its closure which, together with the fact that currently iron ore stocks in China are the largest in history, and combined with a forecasted growth of only 1% of China's steel demand in 2015 (vs. 2-3% worldwide), could force large mining companies to moderate their production in order to stabilize prices. In 2014, average transport distance for crude oil and petroleum products was 4,282 miles (+1.7%), while major dry bulks registered 5,293 miles (-0.6%) and minor dry bulks 5,293 miles (+4.0%). Always according to Clarkson, a total of 1,629 Mt of containerized cargo (+6.3%) and 1,013 Mt of conventional general cargo (+6.3%)where moved by sea during the year. LNG tonnage increased to 247 Mt (+1.2%). Measured in t mile, the increase was 4.0%. Until September 2014, freight rates remained quite depressed, both for tankers and bulk carriers, due to the low tone of world trade in those months. Then, significant recoveries were observed in both markets from September, that were maintained in the case of tankers, while for the bulk carriers was a brief mirage, as freight rates collapsed again right away. For 2015, Clarkson forecasts crude oil seaborne trade to grow at around 1.4% and oil products seaborne trade by 3.4%. At the same time, it estimates that the tanker fleet will grow only by 2.6%. Both factors could lead to some volatility in freight rates, although no significant changes are expected from current average levels. Positive news last year was the remarkable and unexpected decrease, from spring, of crude oil prices and, therefore, also of marine fuels. Fuel oil prices in early May 2015 were 20% cheaper, as compared to 6 months ago. The same happened with MDO prices, which decreased by 31% during the same period (both figures in $/ton). However, the impact that this falling prices had on each company costs is very uneven. On the one hand, for time chartered vessels, fuel costs are covered by the charterer, so the owner has not benefitted from this decline at all, neither the shipping companies that hedged their fuel price early in In addition, the euro/dollar exchange rate evolved exactly opposite to oil prices, so that shipowners that paid bunker in euro didn t appreciate too much difference either. Finally, crude oil futures are anticipating a recovery in prices in the medium term, which confirms that this has probably been conjunctural. Average freight rates for tankers increased throughout 2014 for all size segments, especially in the largest ones. The greatest growth was experienced by Suezmaxes (+85%) to an average freight rate of 26,100 $/day, followed by VLCC (+66%) which registered an average of 29,200 $/day (the highest since 2010) and, finally, Aframaxes (+42%) to 23,200 $/day. Average rates for product tankers LR (Long Range, 55, ,000 dwt) increased by 39% to 18,700 $/day, while freight rates for MR (Medium Range, 30,000-55,000 dwt) decreased to 11,500 $/day (-29%). Dry bulks freight rates, as already said, ended the year 2014 falling, and this trend continued during the first months of In fact, Baltic Dry Index (dry bulks most representative index) fell in February to 509 World Seaborne Trade (*) Values for 2015 are estimated 12,000 1,013 Conventional Figures in million tons for Source: Clarkson 5,000 10,000 8,000 1,629 Containers 1,564 Other dry bulks 419 Grain 4,000 3,000 6,000 4,000 1,201 Coal 1,332 Iron ore 317 Liquified gases 2,000 1,000 2,000 0 (*) Oil products 1, 806 Crude oil 0 Liquid bulks Dry bulks General cargo MERCHANT MARINE AND MARITIME TRANSPORT 2014/

12 Tanker Freight Market Last update as of 31 May Figures in thousand $/day. Source: Fearnleys VLCC Suezmax Aframax Average Freights for Tankers and Bulk Carriers Figures in thousand $/day. Source: Platou VLCC Suezmax Aframax Capesize Panamax Supramax Handysize Dry Bulk Freight Market. Baltic Dry Index (BDI) BDI last 12 months Last data update as of 31 May BDI monthly averages. January 1985 = Source: Baltic Exchange 12,000 10,000 max. value 11,793 1,500 8,000 6,000 1,000 4,000 2,000 min. value jun min. value 509 ago oct dic feb abr 12 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

13 points, the historical minimum for the last 30 years, and by early June had barely recovered the 600 points. Bulk carriers average freight rates for 2014 declined in all fleet segments, with the largest ships experiencing biggest declines. Handy size bulkers average rates for 2014 stood at 7,700 $/day (-6% as compared to 2013); supramaxes averaged at 9,800 $/day (-5%); panamaxes fell a remarkable 19%, from the very low levels of 2013, to 7,700 $/day; and, finally, capesizes freight rates averaged at 14,800 $/day (-11%). The gap between supply and demand for dry bulkers is expected to increase a bit further during 2015, since experts foresee a 4% fleet growth as compared to a 3% increase in maritime transport demand. Therefore, the market will not be able to absorb the existing fleet surplus, and freight rates will very probably continue at very depressed levels. However, Platou warns that certain short seasonal upturns may occur, which could lead to some volatility. Containerships average rates grew around 2% in $/TEU, with relatively high volatility throughout the year 2014, especially in the Asia to Europe route, with a very weak first half, followed by a strong rebound during the third quarter to fall again towards the end of the year. The rest of the main routes showed a more stable evolution. Containerships fleet will grow around 5.8% in 2015, while container transport demand is expected to increase between 6 and 7%, so this year this market should start to rebalance, unless the global economy does not perform as expected. New alliances between large shipowners will continue, in order to increase their market shares, which may keep freight rates in very low levels. The car carriers market remained weak during Japanese and Korean exports declined further than expected, while some emerging export markets, such as China, Thailand and India, increased altogether by 3%. Car sales in major markets (USA, Western Europe and China) increased, although this raise in demand was met, almost completely, by local production. Demand for cars in emerging markets with weaker local production (Russia, Latin America, Africa and Middle East), decreased. As a result of this low maritime transport demand, freight rates averaged around 23,200 $/day, 6% less than in Platou forecasts that, in 2015, the fleet will grow by 2.8% and demand will increase around 3%. Given the present overcapacity in this segment, no major changes are expected in freight rates. Maritime transport demand for LNG improved in 2014, after a two years negative trend. Nevertheless, the average distance continuous decline, together with the higher productivity of the fleet, did not allowed the utilization rate to improve. Due to this capacity surplus, short-term freight rates fell by 40-45%. Platou expects maritime transport demand for LNG to grow around 7% in 2015, while the fleet will increase by 9%, again reducing by 2% the fleet utilization rate, which will decrease to 84%. In addition, LNG carriers has the largest order book as compared to the existing fleet (39%), so freight rates are not expected to recover, not even in the medium term. MERCHANT MARINE AND MARITIME TRANSPORT 2014/

14 02WORLD MERCHANT FLEET ACCORDInG TO LLOYD S REGISTER Fairplay, as of 1 January 2015, the world cargo carrying fleet consisted of 56,636 ships, which means a 1.8% increase as compared to 1 January 2014, with 1,107,776,091 GT (+3.8%) and 1,665,415,099 dwt, (+3.6%) (See Table II of the Statistical Annex). In 2014, all ship types registered GT growths, with the only exception of OBO carriers (dry bulk / oil) that dropped by 12.4% in terms of GT, although they increased by 2 units. The gas carrier s fleet segment registered the biggest increase in GT terms (+6.9%), followed by containerships (+6.5%) and bulk carriers (+4.8%). The oil tanker fleet increased slightly (+0.8%) while general cargo ships remained unchanged. At the beginning of 2015, in terms of GT, bulk carriers represented 36.6% of the world merchant fleet, oil tankers 21.7% and containerships 18.1%, figures all of them very similar to those recorded one year before. According to ISL Bremen statistics, during 2014, 949 merchant ships, with 32.9 million dwt, were broken up, representing 2.0% of the existing fleet. Bulk carriers accounted for 47.0% of the scrapped tonnage, with 295 units and 15.4 million dwt; tankers share reached 26.7%, totalling 149 units and 8.8 million dwt. Finally, 5.4 million dwt of containerships were scrapped (171 units and TEU) involving 16.6% of the number of broken up ships. The average age of oil tankers dismantled increased from 24.7 years to 26.3 years. In the bulk carrier segment, average age was 27.6 years (28.1 years in 2013) and for containerships it remained at 22.4 years virtually unchanged. On 1 January 2015, the world fleet average age was 17.4 years, practically the same as one year before (17.3). The youngest fleet segment was that of bulk carriers (8.2 years in average), followed by crude oil tankers (9.7 years), containerships (10.1), LNG tankers (10.3), chemical tankers (11.9), LPG tankers (15.5) and ro-ro cargo ships (15.8). Above the average age of the world fleet were oil products tankers (21.3 years), general cargo ships (22.7), cruises (23.3), reefers (26.3) and passenger ships (26.6). Panama remained as the first register (See Table III of the Statistical Annex), with million GT (MGT), slightly lower than one year before (-0.6%) and a market share of 19.2% of the world fleet. Liberia ranked second, with MGT (+0.3%) and 11.1% of the global GT, followed by Marshall Islands with MGT, which means an important increase of 15.3% and a market share of 9.5% of world GT. Hong Kong, in fourth place, grew by 7.9% to 82.2 MGT and Singapore, fifth, increased by 11.0% to 75.2 MGT. The first EU register, Malta, comes in sixth place with 55.9 MGT (+13.1%). Half (50.0%) of the GT registered in Panama correspond to bulk carriers (27.1% of the world fleet of such vessels), 15.1% to containerships and 13.4% to oil tankers. In Liberia, 31.4% of the GT are from bulk carriers, 30.6% from container vessels and 29.0% from oil tankers. In Marshall Islands, 38.3% of GT correspond to bulk carriers and 29.0% to oil tankers and finally, in Hong Kong, 50.5% of the registered GT are bulk carriers and 24.5% are containerships. In Bahamas it is registered a 34.0% (in terms of GT) of the world cruise fleet. World Merchant Fleet by Ship Types (1) Includes other tankers, passenger ships, ferries, ro-ros, etc. Figures as of 1 January Source: Lloyd s Register-Fairplay, World Fleet Statistics Oil tankers Gas tankers Bulk carriers General cargo Containerships Other merchants(1) Million GT XX Thousand ships Other non merchants MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

15 World Merchant Fleet by Country of Registration Figures in million GT, as of 1 January Source: Lloyd s Register-Fairplay, World Fleet Statistics EU(28) % Panama % Liberia % Marshall Islands % Hong Kong % Singapore % Malta Bahamas % 3.8% Greece China % 2.9% United Kingdom Cyprus Japan Italy Denmark Norway South Korea Indonesia Germany = 6.2% 0% 6.6% 11.2% 17.5% 4.1% 1.1% 4.4% 10.6% Leading World Merchant Fleets By country of domicile as of 1 January Figures in million DWT. Source: ISL Bremen Foreign flag National flag Greece Japan China Germany S. Korea Norway USA Singapore Taiwan Denmark MERCHANT MARINE AND MARITIME TRANSPORT 2014/

16 As already mentioned, among EU member States registers, Malta ranks first in terms of registered fleet, with 55.9 MGT (+13.1%), followed by Greece (eighth position in the world rank) with 42.3 MGT (+1.5%). The fleet registered in UK decreased by 6.2% to 30.0 MGT although it remained the third in the EU ranking and the tenth at world level, followed by Cyprus with 20.3 MGT, practically the same value registered the previous year. Overall, on 1 January 2015, EU(28) countries flagged a total of MGT, 3.4% more than in 2014 and accounted for 20.1% of world GT tonnage supply. As shown in the attached figure, the UE registered fleet altogether would rank first, with 223 MGT (20.1% of the world fleet tonnage). During 2014, the fleet registered in Portugal (mostly in Madeira s register) doubled its GT up to 4.5 MGT. The fleets registered in Bulgaria (+44.4%), Belgium (+39.5%), Denmark (+17.5%), Ireland (+10.5%) and Sweden (+10.1%) also grew very noticeably. Other European registers recorded smaller growth, like Estonia (+3.4%) and Latvia (+2.6%) while Netherlands (+0.2%) and Romania (0.0%) remained practically unchanged. French (-0.7%), Finnish (-1.8%), Lithuanian and Croatian (both -3.6%) flagged fleet slightly decreased. Finally, the fleet registered in Spain (-10.0%), Germany (-10.6%), Italy (-11.2%), Luxembourg (-13.2%) and, above all, Poland (-51.8%) experienced important decreases during the year. As of 1 January 2015, Spanish flagged fleet remained in 42nd place of the world ranking. According to ISL Bremen, and as shown in the attached figure, the fleet rank according to the nationality of the shipowner was, once again, led by Greece, with million dwt (18.6% of the global shipping capacity) with a significant increase of 9.2% over the previous year, operating 75.7% of its fleet under foreign flags. Japan stood second, with million dwt (+2.9%) and 92.1% of their tonnage 16 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

17 under foreign flags. China ranked third, with a total controlled fleet of million dwt (+2.9% as compared to the previous year) and 62.1% of their fleet under foreign flags. Fourth came Germany, with million dwt (-2.7%) and 89.9% of its tonnage controlled under foreign flags. According to LRF, EU(28) member countries + Norway controlled, overall, million dwt, 37.5% of world tonnage. The Spanish shipowners controlled fleet felt 2 positions on the world rank, to the 38th place, and totalled 3.5 million dwt. Greek shipowners operated 22.3% of the world tanker fleet, followed by Japanese with 9.6%. The bulk carrier segment is mainly controlled by Japanese owners (21.1%), followed by Greeks (20.9%) and Chinese (16.9%) while German shipowners control 29.4% of the containerships fleet. For 2015, Clarkson forecasts that the world bulk carrier fleet will grow around 4%, although this figure could be lower if the present high scrapping levels are maintained. However, given an expected growth in demand for bulk commodities of only 3%, it seems difficult that current capacity oversupply can be absorbed, which would keep freight rates at really depressed levels. The tanker fleet is expected to grow about 2.6 % in 2015 which, combined with low oil prices and robust demand from Asia, can give a modest but positive boost to the freight market. In the segment of product tankers, demand prospects are good but the growing deliveries may end up exerting downward pressure on the market. Finally, Clarkson estimates that the fleet of containerships will grow by 5.8% in 2015 while demand will increase by 6.7%, so it seems that this market may start to rebalance. However, the containers ships freight market is not expected to recover practically, due to continued deliveries. Still, the main strategies of the major shipping alliances on routes between Asia and Europe suggest that new orders of large containerships will continue, even in the long term. MERCHANT MARINE AND MARITIME TRANSPORT 2014/

18 03SHIPBUILDING new SHIPBUILDInG ORDERS that, in 2013, despite the general unfavourable situation of the freight market, exceeded all expectations, during 2014 were more in line with the market. According to Platou, a total of million dwt (Mdwt) (16% less than during the previous year) and 39 million CGT (Compensated Gross Tonnage, unit related to the amount of work necessary to build a given ship and, therefore, to the workload for the shipyard), 15% less than in Despite this reduction, the full investment in new ships is estimated at 75,000 million dollars (M$), M$ 10,000 more than in 2013, due in part to the rise of new building prices but also to the increased number of contracts for specialized vessels with greater value, such as tankers, chemical tankers and cruise ships, which orders grew by 50% in terms of CGT. New building orders for tankers, bulk carriers and containerships, despite having reduced by 40% with respect to 2013, still represent 57% of the total CGT contracted worldwide, a figure that rises to 86% measured in terms of dwt (unit related with the transport capacity of the fleet).throughout 2014, a total of 25 Mdwt of oil tankers were ordered, 38% less than in 2013; 67 Mdwt of bulk carriers (-20%) and 1.15 million TEUs of containerships (-42%). It is worth noting that almost 90% of the containerships contracted exceeded 8,000 TEU and that no orders for such ships in the range of 4,000-8,000 TEU where placed. Figures of new building contracts for 2014 are still important in historical terms (fifth largest registry), although it is true that account for only 7.5 % of the World Shipbuilding Figures in million DWT. Source: Fearnleys, Platou Deliveries New orders Order book World Shipbuilding by Country and Ship Type 2014 Figures in million DWT. Source: Fearnleys, Platou Orderbook / Fleet % Figures as of 1 january Source: Platou Order book New orders Deliveries Oil tankers 276 million DWT 113 million DWT 86 million DWT Bulk carriers Containerships Offshore LNG Others MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

19 existing fleet, a relatively moderate figure, especially when compared with the 24% that was contracted in Deliveries fell by 15% in 2014, totalling 86.2 Mdwt. Bulk carriers (with 53% of the total delivered tonnage), tankers and containerships (with 19% each), accounted jointly for 90% of the delivered dwt. The remaining 10% includes nearly 3 Mdwt of LNG tankers (5.3 million cubic meters), almost 10% of the capacity of the existing global fleet of such ships. Because more new contracts than deliveries were recorded, the order book increased by 16% and, as of 1 January 2015, included 276 Mdwt. In 2014, according to Clarkson, and in terms of CGTs, 88% of new orders were placed at shipyards in China (39%), South Korea (29%) and Japan (20%). European shipyards managed to raise its market share from 4 to 9%, a figure not seen since The same source estimates that new building contracts signed by Chinese shipyards accounted for 31% of the total investment, shipyards in South Korea obtained 30% and Japanese shipyards 15%. European shipyards attracted 18% of the investment, well above the percentage they obtained in terms of CGT, a fact that, once again, confirms that ships built in Europe have an added value and technology well above the world average. Romania EU Shipyards Order Book an la Pol nd 282,427 Bulk carriers account for more than half of the vessels on order (53%) with 146 Mdwt, approximately 20% of the existing fleet of such ships, followed by tankers, with 63 Mdwt and 13% of the existing fleet, and containerships, with 3.2 million TEUs, which represents 18% of the existing fleet. LNG tankers stood at the fourth position, with nearly 22 million cubic meters, 35% of the existing fleet. It ta al ly 1, ,14 Cargo Passenger Offshore Others 43 Figures in CGT as of 1 January Source: Lloyd s Register-Fairplay Spain 139, , Neth,44 49 her rl la an nds million CGT , , ,529 Fi Spanish shipyards obtained 134,000 CGT of merchant ships new building orders, a very modest figure which is, nevertheless, almost three times the figure registered in 2013 but only 3.6% of the new contracts signed by European shipyards, very far from the figures around 7-10% registered between 2007 and In 2014, Spanish shipyards signed contracts for 2 chemical tankers, one ferry and 15 ships for different purposes (tugs, logistical support, supply platforms, oceanographic...). in nl ma rm er la Ge an nd ny an Ot th her ers Between 2013 and 2014 the Spanish shipping companies ordered a total of 11 ships with 957,000 dwt and almost 514,000 CGT, which will be delivered between 2015 and Among these ships there are 3 chemical tankers, 4 LNG and 4 bulk carriers. By the time of closing this report, it is still pending the final signing by a Spanish shipping company of the contract for the construction in Spain of 4 Suezmax tankers (with an option for 2 more), that could start their construction by late New buildings prices continued to grow in all market segments, especially during the first half of the year. The average rise was 4.0%. Prices increased well above the average for Suezmax tankers (9.2%) and also for LPG tankers (7.0%). At the other end of the scale, prices remained virtually unchanged for smaller containerships (1,000 zx) and LNG tankers. Platou forecasts that, in 2015, new orders will be around million CGT, between 5 and 8% above 2014 levels, while new buildings prices will maintain very stable, by the levels recorded in MERCHANT MARINE AND MARITIME TRANSPORT 2014/

20 04SPANISH SEABORNE TRADE WE ARE GRATEFUL to the Statistical Department of Spanish State Ports (Puertos del Estado) for the data provided on Spanish seaborne trade, detailed by trades and types of merchandise, necessary to draft this chapter. For Spanish national cabotage trades, we have used, in addition to data provided by State Ports, information from ports managed by the Autonomous Communities. During 2014, the Spanish maritime trade (exports + imports + national cabotage) increased to million tonnes (Mt), up by 5.2% as compared to These figures do not include the port movement of containerized cargo in international transhipment regime that, in 2014, totalled 43.6 Mt, 2.0% less than the previous year. All trades experienced increases, being the most notable that of dry bulk commodities (+11.2%) with 82.5 Mt, followed by general cargo, which grew by 4.6% to Mt. Liquid bulks, which totalled Mt (+2.3%), accounted for 41.6% of the total tonnage of the Spanish seaborne trade, general cargo for 33.1% and dry bulks for 25.4% (See table IV of the Statistical Annex). AnALYSIS BY TRADES. In 2014, Spanish foreign seaborne trade (imports + exports) increased by 5.1% to Spanish Seaborne Trade Seaborne Trade 2014 Figures in million tons. Source: Puertos del Estado. Data processing: ANAVE Total Imports 150 Cabotage Exports Imports Exports Cabotage Liquid bulks Dry bulks General cargo 50 Cabotage Imports Exports Figures in million tons. Source: Puertos del Estado. Data processing: ANAVE Total General cargo Dry bulks Liquid bulks 20 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

21 284.5 Mt, a figure which is still 4.8% lower than the alltime high of Mt recorded in Exports increased by 4.5%, to a record level of 96.2 Mt. Imports also grew (+5.4%) totalling Mt, a clear signal that domestic demand had started to activate. Among imports, liquids in bulk had a share of 50.5%, dry bulk cargo of 31.9%, being the remaining 17.5% for general cargo. During 2014, all these three groups recorded increases. Dry bulk cargo recorded the highest growth (+12.9%) and totalled 60.2 Mt, followed by general cargo (+4.9%) and 33.0 Mt, while liquid bulk imports increased by 1.3%, to 95.2 Mt. By products (see table V of the Statistical Annex), grains and flours imports registered a significant increase (+27.1%), as well as coal imports (+17.4%), other minerals and construction materials (+10.5%) and steel products (+9.4%), hence the remarkably growth of dry cargoes. Imports of liquefied gases (+8.2%), other products of animal and vegetable origin (+7.8%) and crude oil (+2.0%) also grew, while iron ore and petroleum products imports decreased by 1.6% and 8.2% respectively. Chemical products remained practically unchanged (-0.1%). Finally, it should be noted the remarkable growth of biofuels (+68.5%) and machinery and spares (+38.0%) imports. Regarding exports, the highest growth was registered, as in the previous year, by dry cargoes (+10.0%) totalling 18.8 Mt with a share of 19.5% of the total Spanish exports. Nevertheless, general cargo remained as the biggest item of our exports, accounting with a 53.9% share and 51.9 Mt (3.6%). Liquid bulk exports grew by 2.5% to 25.5 Mt. CRUDE OIL AnD OIL PRODUCTS. During 2014, Spanish crude oil imports rose by 2.0% to 58.9 Mt, accounting for 61.9% of liquid bulk imports, with an average distance of 3,565 miles, 2.5% more than the previous year. Nigeria was our main crude oil supplier, followed by Mexico, Saudi Arabia and Russia. Overall, OPEC countries provided us with 52.0% of our oil imports, 30.7 Mt (+3.2%) (See more detail in the attached graph). During the first 6 months of 2014, Brent crude oil prices remained fairly stable at around 109 $/barrel and then decreased gradually in the second half to an average value of 62.5 $/barrel in December, 42.7% lower than the average of the first half. Thus, the average CIF cost of crude oil imported by Spain in 2014 fell by 9,4% to 72.9 /barrel (96.5 $/barrel). The average euro/dollar exchange rate was $/ practically unchanged as compared to the previous year (+0.3 %). Spanish oil products imports fell by 8.2% to 17.2 Mt, representing 18.1% of total liquid bulks imported by Spain. USA was, once again, on top of the suppliers ranking, with a share of 12.1% followed by the Netherlands, with a share of (8.8%) and an increase of its exports to Spain of 23.3%. Algeria (+15.9%) and Saudi Arabia (+63.1%) stood third and fourth, while Italy step down from the third to the fifth position. As a result of these changes in our main suppliers, the average distance of our oil product imports increased by 8.1% to 2,474 miles. Spanish exports of petroleum products fell by 7.3% to 17.5 Mt. Trade with our main destination, France, fell by 15.4%, with a share of 10.5%. Second was the USA, that experienced a significant growth (+19.9%) with a share of 9.1%, followed by Italy, which decreased by 15.5% with a share of 8.2%. Average distance of these exports was 2,019 miles, 8.6% higher than in 2013, due to the increase of exports to USA to the detriment of European destinations. According to data published by the Spanish Tax Agency, the deficit in the Spanish energy balance was reduced by 7.1%, totalling 38,071 million euro, with a degree of national coverage of 31.3%, due to an increase in the renewable energies supply. Spanish Crude Oil Imports by Country of Origin Share (% total imports) Figures in million tons. Source: Cores 16.8% 14.5% 12.3% 12.0% 8.9% 6.7% 4.9% 24.0% 52.0% Nigeria % Mexico % Saudi Arabia % Russia % Angola % Colombia % Venezuela % Others % OPEC countries % MERCHANT MARINE AND MARITIME TRANSPORT 2014/

22 05SPANISH FLAGGED FLEET THIS CHAPTER AnALYSES the Spanish flagged merchant fleet, all of which is registered in the Special Canary Islands Register (REC), either operated by Spanish or foreign shipping companies. In 2014, the merchant fleet registered in the REC experienced its largest decline since its inception in As of 1 January 2015, the Spanish fleet comprised 119 merchant ships with 2,094,068 GT and 1,661,115 dwt. This represents a decrease of 7 units, 10.2% of its GT and 18.2% of its dwt. From the beginning of 2013 to May 2015, the loss of competitiveness of the REC as compared to other European registers has led to an accumulated decline exceeding 18% in GT and 27% in dwt. As of 1 January 2015, Spanish shipowners operated 117 of these 119 ships, 4 units less than 1 year ago, with significant reductions, both in GT terms (-9.9%) and especially in dwt (-18.0%). It should also be noted that merchant ships registered in the REC and operated by foreign shipowners fell from 5 units in January 2014 to just 2 units at the beginning of 2015, totalling 21,100 GT (-33.7%). During 2014, none of the segments of the Spanish fleet increased. Bulk carriers, reefers, ro-ro ships and gas tankers remained unchanged. The number of passenger ships did not change either, but its GT decreased by 9.9%, due to the replacement of large units with smaller ones. Containerships decreased by 1 unit (-50.0% of the GT) so there was only 1 vessel of this type under Spanish flag at the beginning of There were also 2 general cargo ships less in the REC, although their GT increased by 0.7%, and oil tankers dropped out 3 units, one of them of large tonnage, which led to a drastic decline of 44.9% Spanish Flagged Fleet Oil tankers Bulk carriers General cargo Containerships Roll-on/Roll-off Reefers Gas carriers Passenger & Ferries Others Thousand GT XX Number of ships Figures as of 1 January Source: ANAVE , ,000 1,200 Fleet Average Age 25 Figures as of 31 December each year. Source: ANAVE World merchant fleet Spanish flagged fleet MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

23 in its GT. Finally, the group of special ships (comprising cement carriers, asphalt tankers, supply ships, chemical tankers and cable tenders) lost 1 unit and 5.4% of their GT. (See also table VI of the Statistical Annex). Throughout the year, a total of 11 ships left the Spanish flag, out of which 3 were scrapped, 5 were sold to foreign interests and other 3 were flagged out to other registers by their owners. In number of units, passenger ships remain as the fleet segment with the highest share in the Spanish flag (37.8%), followed by general cargo ships (16.0%), ro ro ships (11.8%), oil tankers (10.9%) and gas tankers (10.1%). Reefers (2.5%) and containerships (0.8%) are the segments with fewer vessels, apart from bulk carriers, which there aren t any under the Spanish flag. But, in terms of GT, gas tankers (especially LNGs) have the largest share (51.7%), followed by passenger ships (20.9%), oil tankers (10.5%) and ro-ro ships (9.3%). General cargo ships (3.4%), reefers (0.7%) and containerships (0.4%) have the lowest shares. Finally, the special ships group have a share of 3.3%. During 2014, no new merchant ship joined the Spanish flagged fleet, so its average age grew from 13.6 years at the beginning of 2014 to 14.2 years by 1 January 2015, although it is still much lower than the average age of the world merchant fleet (17.4 years). Gas tankers are the youngest segment of our fleet, with an average age of 8.7 years, followed by oil tankers (10.2 years), containerships (11.0 years) and general cargo ships (12.6 years). Ro-ros (15.2 years), passenger ships (15.5 years) and reefers (21.7 years) have an average age over that of the total Spanish fleet. The group of special ships has an average age of 17.9 years. During the first months of 2015, the Spanish flagged fleet has lost an additional unit, which lead to a decrease of 0.5% in terms of dwt although total GT has increased by 1.0%. During the four months of this year, one general cargo ship has left our Special register to be scrapped, and there have been 2 additional changes: one chemical tanker that has left the REC to another EU register and one passenger ship that has returned to our register. MERCHANT MARINE AND MARITIME TRANSPORT 2014/

24 06SPANISH CONTROLLED FLEET THIS CHAPTER AnALYSES the total fleet of transport merchant ships controlled by Spanish shipping companies, both under Spanish and foreign flags (See also Table VII of the Statistical Annex). Since early 2005, the Spanish controlled fleet has decreased by 98 units and a 14% of its GT, despite the fact that, in this same 10 year period, the Spanish fleet controlled under other European flags grew by 57% in terms of GT. By comparison, the EU registered fleet has increased by 60% since As of 1 January, 2015, the Spanish controlled fleet comprised a total of 203 vessels, with 3,574,466 GT and 3,369,082 dwt, representing a decrease of 8 units, 6.7% in GT and 12.3% in dwt, as compared to the beginning of The average size of the controlled fleet was 17,608 GT, 3.1% lower than one year before. The number of ships controlled under Spanish flag fell by 4 units to 117 vessels with 2,072,968 GT (-9.9 %) and 1,631,365 dwt (-18.0%). The Spanish fleet controlled under foreign flags includes 86 ships, 4 less than one year ago, with 1,501,498 GT (-2.0 %) and 1,737,717 dwt (-6.1 %). Throughout 2014, the ro-ro fleet tonnage increased by 6.0%, thanks to the addition of a ship, and the tonnage of the general cargo ships grew by 1.4%, even though it lost 2 units. Containerships, reefers and gas carriers remained unchanged, both in GT and number. Meanwhile, oil tankers recorded the largest decline, losing 3 units and 26.0% of its GT, together with bulk carriers, which decreased by one unit and 20.2% of its GT. Finally, the group of special ships (asphalt, cement and alumina carriers, supply vessels, cable layers and chemical tankers) reduced its GT by 4.5%. In number of units, 30.5% of the controlled fleet belongs to the passenger ships segment, 17.2% are general cargo and 15.8% are special ships. Oil tankers account for 10.3%, followed by ro-ro ships (9.4%) and gas carriers (7.4%). In terms of GT, gas carriers (33.6%), passenger ships (24.1 %), oil tankers (13.6%) and ro-ro ships (7.8%) are the most important fleet segments. During 2014, there were no deliveries of new merchant ships to the Spanish controlled fleet, what contributed to the increase of the fleet s average age, from 15.4 years on 1 January 2014 to 15.8 years by 1 January The youngest fleet segment is the one of LNG tankers (9.2 years), followed by containerships (11.0 years), bulk carriers (10.8), crude oil and oil products tankers (12.3), special ships (13.9) and ro-ro ships (15.1 years). Above the average fleet age are passenger ships (16.3), general cargo ships (20.1) and reefers (29.4 years). During 2014, 6 Spanish controlled vessels were scrapped, 3 of which were operated under Spanish flag and 3 under foreign flags, totalling 92,550 GT and an average age of 32.5 years. As of 1 January 2015, 58.0% of the GT controlled by Spanish shipowners operated under Spanish flag. The remaining tonnage is distributed into 14 foreign registers. In terms of GT, Malta is the preferred option for Spanish shipowners (39.1%), followed by Madeira (25.5%), Bahamas (11.9%) and Cyprus (11.5%). In number of ships, Panama is the preferred foreign registry, with 26.7% of the units under foreign flag, followed by Malta (24.4%), Madeira (22.1%) and Cyprus (11.6%). Out of the total fleet controlled under foreign flags, 62.8% of the vessels, which accounted for 79.8% of the GT, operate under EU registers. Including the ships registered under Spanish flag (REC), 84.2% of the units and 91.5% of the GT controlled by Spanish shipowners operate under EU flags. Moreover, out of the total fleet controlled by Spanish owners, 87.7% of vessels and 88.3% of GT operated under flags included in the White List of the Paris MOU. Under Spanish flag operated 80.0% of the gas carriers, with 90.1% of its GT; 73.7% of ro-ro ships (69.5% of GT); 72.6% of passenger ships (50.9% of GT); 57.1% of the oil tankers (42.2% of the GT) and 54.3% of general cargo ships (58.6% of GT). At the beginning of 2015, 100% of the bulk carriers and containerships controlled by Spanish shipowners were operated under foreign flags, along with 62.5% of the reefers (with 50.6% of the GT) and 84.2% of the chemical tankers (85.0% of GT). During the firsts four months of 2015, the total Spanish controlled fleet declined further by 4 units, 0.4% of the GT and 1.6% of the dwt, to 199 ships, 3,589,256 GT and 3,314,345 dwt. Until early May, 3 passenger ships and 2 product tankers had joined the controlled fleet while 2 general cargo vessels, 2 asphalt carriers and 1 chemical tanker had dropped out. 24 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

25 Spanish Controlled Fleet Number of ships XX 12 1,082 Thousand GT Thousand DWT 883 1, 200 1, Spanish Flag (REC) Oil tankers Bulk carriers General cargo Containerships Ro-Ro Reefers Liquefied gas Passenger Others Figures as of 1 January Source: ANAVE Other flags Controlled Fleet Figures in thousand GT as of 31 December each year. Source: ANAVE Controlled Fleet Age Figures in number of ships as of 1 January Source: ANAVE 5,000 4,000 Foreign flag Special register Ordinary register Oil tankers General cargo Passenger & Ferries Container / Ro-ros Others 3, , , Registers Used by Spanish Owners Figures as of 1 January Source: ANAVE Spain Malta Number of ships Madeira Total tonnage 11 Cyprus 203 Panama thousand GT Bahamas 587 3, Others 2,073 MERCHANT MARINE AND MARITIME TRANSPORT 2014/

26 07INTERNATIONAL MARITIME POLICY GLOBAL SCEnE: Piracy and armed robbery incidents in the Gulf of Aden and off the coast of Somalia, which had already decreased dramatically during 2013 to 13 attacks, fell further in 2014 to only 7 cases. There were no reports of successful kidnappings, confirming that, at least in this area, the pirate threat can be considered under control. Nevertheless, military protection should not be withdrawn until a satisfactory solution ashore is obtained. Similarly, pirate incidents decreased also in Nigeria, from 31 to 18 attacks. On the contrary, in other geographical areas, such as Indonesia and Malaysia, the number of incidents increased slightly, from 115 to 124 cases, thus confirming that the piracy threat remains unchanged in these areas and, in some cases, merchant ships have to rely on private armed security services on board, a possibility which is already accepted by the vast majority of countries. In the international regulatory framework, the maritime industry spent much of the year 2014 awaiting a milestone that, in fact, took place on 1 January 2015, date on which entered into force the new 0.1% ceiling on the sulphur content in marine fuels in North America and northern Europe Emission Control Areas (ECAs). Most shipping organizations and classification societies repeatedly warned on the complex consequences of the implementation of these new standards, which eventually became effective before a solution was found to the existing technical and regulatory barriers to the use of alternative technologies, such as exhaustgas scrubbers or the use of Liquefied Natural Gas (LNG) as marine fuel. In fact, the use of open loop exhaust-gas scrubbers is facing serious problems due to the extremely strict enforcement of the Water Framework Directive (2000/60/UE) made by some northern European countries, and, at the same time, to the fact that the new IGF Code, that shall regulate the safety of ships that use LNG as marine fuel, has been finally adopted at IMO only on this month of June 2015 and it will not take effect until Coincidentally, in January 2015, fuel prices had fallen to a 6 years low. This was a decisive factor for the vast majority of the shipping companies concerned, that instead of investing in scrubbers or retrofitting their vessels to use LNG, decided, for the time being, to use low sulphur diesel oil, although it is currently a huge 70% more expensive than heavy fuel oil. But, given that fuel prices will likely continue to recover, it is essential that the referred obstacles are solved, particularly through the deployment of an adequate and sufficient LNG bunkering infrastructure to ships calling at European ports. The following regulatory pressure on shipping companies is likely to be the entry into force of IMO Convention on Ballast Water Management (BWM 2004), by which shipowners shall be required to invest several million euros per vessel. In May 2015, IMO has clarified some technical issues of this Convention on which there was still great uncertainty. In particular, IMO has accepted that it is necessary to review the procedures for the authorization of exemptions to ships that take and discharge ballast water in ports or locations within a same risk area, avoiding, as much as possible, Shortsea Shipping being adversely affected. This development is likely to encourage some States to sign up the BWM Convention which may finally come into force in 2016 or In anticipation of this, and taking into account the complexity of the Convention, it has been a year now since ANAVE established a working group in order to support our member companies in its implementation. As part of the tasks of this group, ANAVE has been working with the Spanish Administration in order to clarify, as soon as possible, how the Convention is going to be applied to national cabotage trades in Spain. Another environmental convention pending ratification for its entry into force is the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships. The main shipping organizations: ICS, ECSA, etc., are urging maritime States to speed up its ratification, in order to have, as soon as possible, a uniform international framework also in this field. As regards the oil tanker industry, 2014 was an excellent year due to the low accident rates registered in polluting discharges. Once again, there were no major accidental marine pollution cases from oil tankers. According to the International Tanker Owner's Pollution Federation (ITOPF), while in the five year period the average oil lost to the environment was 6,800 t/year, in 2014 this figure fell to approximately 4,000 t, the vast majority of which (3,000 t), due to a single accident. The last major incident, which led to an oil spill of 11,000 t, took place in 2007, 8 years ago. As a reference, over the 10-year period the average volume of oil spilt was 21,300 t/year. These figures once again demonstrate the strong commitment of tanker operators and their crews for a safer, cleaner and more efficient seaborne trade. The industry remains determined to a process of continuous 26 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

27 improvement in the safety culture and it aims, as a realistic mid-term goal, to achieve a zero level of pollution damage to the marine environment. EUROPEAn SCEnE: At EU level there has not been any major developments over the past year. The European Parliament elections and the renewal of the European Commission logically led to delays in the discussion of several pending pieces of legislation, including the proposal for a regulation on market access to port services, which is still in parliamentary procedure, for which, in any case, there is very little expectation from the shipping industry. Directive 2014/94/EU on the deployment of alternative fuels infrastructure (such as Liquefied Natural Gas, LNG) was adopted, although the final outcome was very disappointing for the maritime transport industry, because it does not contain concrete commitments and it has postponed its effectiveness until 2025, ten years after the 0.1% sulphur limit requirement in the European ECAs enters into force. Regulation (EU) 2015/757 on the monitoring, reporting and verification of CO 2 emissions from shipping wasn t either well received by the shipping sector, because it includes the obligation to report on commercially sensitive information, such as ship cargoes. However, it is not expected to have any significant effect, given that IMO will most likely establish a similar system, perhaps even before the EU instrument becomes effective, which will not happen until The European Sustainable Shipping Forum (ESSF) has continued to work within the EU, with several working groups studying, in close cooperation with Member States and the industry, the anticipated effects and palliative measures of the new regulations on the sulphur content of marine fuels. The Spanish Shortsea Promotion Centre, which ANAVE chairs, is the only Spanish private entity represented in the plenary of this forum. In May 2015, all European shipping and port industries organizations, including maritime transport users, with a rarely seen unanimity, sent a joint letter to the Commission, Parliament and Member States, calling for concrete measures to achieve the objectives of the socalled Athens Declaration, very positive for the shipping industry, which was signed by EU transport Ministers in May The industry organizations placed a special emphasis on the objectives aimed at obtaining the greatest possible potential from Shortsea Shipping, which should not become a mere declaration of good intentions, but should materialize, as soon as possible, in concrete actions and measures, for the benefit of the European general interest. MERCHANT MARINE AND MARITIME TRANSPORT 2014/

28 08NATIONAL MARITIME POLICY AFTER 10 YEARS OF WORkS and one of parliamentary discussions, in July 2014 the Spanish Parliament finally passed Law 14/2014, on Maritime Navigation, which from ANAVE s point of view has simplified and modernised the legal framework of the shipping industry, ruling out the previous existing duality between national and international regulations in several areas, and incorporating the large number of existing maritime conventions. Most of the proposals submitted by ANAVE have been taken on board, with only two exceptions in areas of detail. On the one hand, the possibility to limit the liability of recognised organisations, in the terms provided in Directive 2009/15/EC, and on the other, recognition of the specific nature of the Protection and Indemnity coverage, so that direct action by the injured party would only apply when required by an international Convention or an European Regulation. These anachronistic differences between the new law and the maritime legal framework of most European countries must be solved sooner or later, as they encourage shipowners to leave the Spanish flag and seek for other European alternatives. In November 2013, following a complaint, the European Commission opened before the Luxembourg Court a case against the legislation applicable in Spain to the port cargo handling services (stevedoring). In December 2014, the Court ruled in favour of the Commission, declaring the Spanish legislation on this matter (contained in Royal Legislative Decree 2/2011) contrary to the right of establishment laid down in article 49 of the Treaty on the Functioning of the European Union. Six months after the sentence, there have been several contacts between the Administration and stevedore associations and Unions, without, for the time being, the opening of a formal negotiating table to find a solution that, while meeting the requirements of the judgment, and therefore respecting the EU legislation, could be acceptable to all parties. Also in the port sector, ANAVE has been actively participating in the Permanent Observatory of the Spanish Port Services Market, both in plenary meetings that are held twice a year, and working groups formed to support the consultants appointed for several studies on the costs of port terminals and other port services. The results emerging from this initiative, which is pioneer worldwide, clearly show those areas where it is possible to improve the efficiency and, consequently, the competitiveness of Spanish ports. For example, from a study on the costs of container port terminals, it follows that the total costs per TEU are considerably higher in main UK terminals (103 euro/teu) and in Germany (86) than the average costs in Spanish terminals (64). And this despite the fact that labour costs in Spain (33 euro/teu) are the highest of all the analysed terminals (32 euro/teu in Germany and 25 in the UK and the Netherlands). At the same time, indicators of infrastructure utilisation (TEU moved/ha, TEU/mooring line meters or TEU/crane) are in average significantly higher in Spanish ports than in the European ports analysed. The result is immediate: if labour cost could be rationalized, some Spanish container terminals would be among the most competitive in Europe. Still pending is the decision of the EU General Court about the appeals, including the one from the Spanish Government, against the European Commission s Decision of July 2013 on the Spanish legal tax regime applicable to certain ship leasing schemes (Tax Lease). At the same time, the new tax lease system, approved by the Commission in November 2012 as being not constitutive of State aid, has begun to operate at a good pace, especially after the appeal lodged against it by the Netherlands was rejected, which is facilitating the taking off of shipbuilding contracts to Spanish shipyards. Between May 2015 and August 2016, the Spanish flagged merchant vessels shall be subject to an intermediate inspection to ensure continuing compliance with the requirements of the Maritime Labour Convention (MLC 2006). ANAVE, in contact with the General Directorate for Merchant Marine, the Inspectorate of Labour and Social Security and the Social Marine Institute, has highlighted the need for a flexible procedure to carry out the inspections of these ships flying the Spanish flag that do not usually call at Spanish ports, and the need to adapt the Spanish regulations to some of the requirements laid down in the Convention, as the operation of manning agencies and the acceptance of medical certificates of foreign seafarers. Related to Shortsea Shipping (SSS), there has been bittersweet news on the Atlantic coast: while, in autumn 2014, a French shipping company interrupted the Gijon-Saint Nazaire line and a Dutch company, the Bilbao-Zeebrugge service, in January 2015, the Motorway of the Sea from Vigo to Saint Nazaire was finally launched, operated by Flota Suardiaz, after a long and complex process, which has lasted almost eight years since the call for tenders was published. On the contrary, the report of the Spanish observatory on SSS services, produced by SPC-Spain, shows that in 2014, on the Mediterranean coast, the 28 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

29 demand of ro-ro transport in SSS increased by 19.8% and the supply by 29.5%. Within the technical field, due to the currently more moderate prices of conventional fuels, the recovering periods of the large investments necessary for the use of LNG as bunker have logically increase. But, in the understanding that this price levels will be probably temporary, the interest of the maritime sector on this matter is still growing and, in Spain, several ports, shipowners, equipment manufacturers and LNG suppliers are already participating in pilot projects with the aim of taking advantage of Spain s huge potential in this area. Finally, in 2014, the fleet of the Special Canary Islands Register recorded a new and important decline which, added to those suffered in 2013 and also in the first months of 2015, means that, in two and a half years, the Spanish flagged merchant fleet has lost 13% of its units and 27% in terms of dwt. Besides this, it is also very a very bad news that, due to the results of the Port State Control inspections on the Spanish flagged ships, from 1 July this year, the Spanish flag will returns to the Grey List of Paris MOU, after 10 years appearing in the White one. ANAVE agrees with the General Directorate for Merchant Marine on the need to bring the Spanish flag back to the White List as soon as possible but, rather than through coercive measures and additional inspections, we have proposed to deepen in the ongoing and positive cooperation between shipping companies and the Administration and, at the same time, expand the possibilities of delegation in Recognized Organizations. MERCHANT MARINE AND MARITIME TRANSPORT 2014/

30 09STATISTICAL ANNEX I. WORLD SEABORnE TRADE YEAR CRUDE OIL AnD OIL PRODUCTS ,219 9,353 1,262 6, , , , ,311 30, ,193 8,971 1,307 6,954 1,003 5, , , ,492 31, ,347 9,698 1,388 7,466 1,064 5, , , ,857 33, ,496 10,393 1,509 8,086 1,141 6, , , ,307 35, ,589 10,729 1,609 8,647 1,185 6,632 1,002 5, , ,638 37, ,660 11,036 1,715 9,257 1,271 7,252 1,091 5, , ,007 39, ,710 11,012 1,851 9,991 1,367 7,531 1,216 6, , ,363 40, ,725 11,200 1,953 10,511 1,359 7,392 1,271 6, , ,573 41, ,648 10,622 2,026 11,027 1,191 6,385 1,134 6, , ,259 40, ,756 11,236 2,264 12,359 1,340 7,343 1,291 6, , ,147 9,031 44, ,766 11,418 2,398 13,059 1,443 7,841 1,405 7, , ,344 9,440 46, ,824 11,903 2,607 14,159 1,492 8,190 1,454 7, , ,346 9,839 48, ,792 11,754 2,755 14,674 1,575 8,666 1,532 7, , ,346 10,175 50, ,785 11,924 2,952 15,624 1,564 8,951 1,629 8,480 1,013 5, ,414 10,529 52, (*) 2,843 12,281 3,058 16,211 1,609 9,176 1,744 9,063 1,085 5, ,504 10,959 54,857 14/13 (%) /14 (%) (1) Coal, Iron Ore, Grain Source: Clarkson (*) Estimated MAIn DRY BULkS (1) OTHER DRY BULkS CARGO In COnTAInERS GEnERAL CARGO LIQUEFIED GASES TOTAL SEABORnE TRADE t t miles t t miles t t miles t t miles t t miles t t miles t t miles t: Million tons t miles: Billion tons miles II. WORLD MERCHAnT FLEET BY SHIP TYPES SHIP TYPES ns GRT ns GRT ns GRT ns GT ns GT ns GT ns GT ns GT ns GT Oil & product tankers Gas tankers Bulk carriers General cargo Containerships Other merhant (1) TOTAL MERCHANT , ,107.8 Other non merchants TOTAL , ,166.8 (1) Includes chemical tankers, other tankers, passenger ships, ferries, ro-ros, etc Figures as of 1 January, except 1980, 1985 y 1990 (figures as of 1 July) Source: Lloyd s Register Fairplay - World Fleet Statistics NS: Thousand ships GRT: Million GRT GT: Million GT 30 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

31 III. WORLD MERCHAnT FLEET BY COUnTRY OF REGISTRATIOn COUnTRY Figures as of 31 July until As of 1 January since 1995 (1) Until 1990 Marshall Islands were included in the USA GT change(%) 15/14 15/05 Panama 13,352 23,327 39,544 38,410 63, , , , , , Liberia 65,638 80,167 57,979 54,231 57,172 52,932 52,527 90, ,065 12, Marshall Islands (1) ,130 6,656 21,876 47,648 91, , Hong Kong 411 1,709 6,842 6,533 7,673 7,944 26,025 45,300 85,464 92, Singapore 3,853 7,520 6,398 7,815 11,720 21,500 25,814 39,665 67,788 75, Malta ,843 4,473 15,424 28,107 22,220 34,760 49,382 55, Bahamas ,864 13,464 22,628 28,952 33,707 45,017 48,029 49, Greece 22,451 39,377 30,895 20,384 30,061 24,756 31,971 38,776 41,652 42, China 2,744 6,556 10,188 13,303 15,089 15,456 19,381 28,636 40,995 42, United Kingdom 32,231 26,105 13,942 7,778 5,867 8,305 18,238 27,590 32,021 30, Cyprus 3,217 2,079 8,179 18,304 23,224 23,344 21,147 19,842 20,328 20, Japan 38,042 39,194 38,184 25,673 20,771 15,641 12,103 13,728 18,928 20, Italy 9,931 9,698 8,587 7,482 6,371 7,750 10,653 15,210 17,548 15, Denmark 4,354 5,211 4,767 4,900 5,518 5,567 7,311 10,663 12,103 14, Norway 25,847 21,530 14,774 22,684 21,753 22,382 17,584 14,779 14,143 13, South Korea 1,388 4,281 6,664 7,213 6,420 5,119 7,225 12,238 11,318 11, Indonesia 785 1,276 1,715 1,879 2,397 2,939 3,732 7,389 10,940 11, Germany 9,592 9,384 7,176 5,324 5,484 6,329 8,046 14,931 12,124 10, Bermuda 1,450 1, ,258 2,861 6,187 6,166 9,372 10,539 10, Antigua & Barbuda ,837 4,214 7,164 9,947 10,582 9, USA 13,674 17,177 17,907 19,571 12,152 10,276 8,616 8,383 8,489 8, India 3,869 5,911 6,605 6,476 6,067 6,915 7,518 8,280 8,291 8, OTHER EU Netherlands 5,418 5,430 3,650 3,069 3,841 5,175 6,384 7,528 7,706 7, France 10,389 11,557 7,885 3,525 4,069 3,067 4,615 6,371 5,291 5, Belgium 1,249 1,697 2,251 1, ,829 4,105 3,804 5, Portugal 1,055 1,208 1, ,051 1,217 1,172 4,465 4, Sweden 7,418 4,186 3,006 2,667 2,692 1,846 3,561 3,928 2,630 2, Luxembourg ,135 1, ,809 2, SPAIN 4,936 7,178 5,214 3, ,547 2,386 2,319 2,332 2, Finland 1,956 2,472 1,916 1,000 1,319 1,566 1,334 1,364 1,601 1, Croatia ,000 1,367 1,329 1, Lithuania Estonia Ireland Latvia Bulgaria 937 1,233 1,322 1,360 1, Romania 667 1,627 2,757 3,798 2,502 1, Poland 2,509 3,250 2,972 3,081 2,393 1, Total EU (15) 111, ,780 90,880 62,039 68,412 68, , , , , Total EU (28) 118, , ,214 93, , , , , , , World totals 325, , , , , , , ,566 1,067,069 1,107, EU 15 / World 34.2% 31.0% 22.8% 15.6% 15.2% 13.3% 16.7% 16.0% 13.5% 13.0% Figures in thousand GRT to 1990.Thousand GT from 1995 Source: Lloyd s Register Fairplay - World Fleet Statistics IV. SPAnISH SEABORnE TRADE IMPORTS EXPORTS CABOTAGE TOTAL MERCHAnDISE % % % % Liquid bulks 93,964 95, ,911 25, ,321 14, , , Dry bulks 53,300 60, ,060 18, ,798 3, ,159 82, General cargo 31,481 33, ,061 51, ,386 22, , , TOTAL 178, , ,032 96, ,506 40, , , Figures in thousand tons - %: 2014/2013 growth Source: State Ports - Data processing: ANAVE MERCHANT MARINE AND MARITIME TRANSPORT 2014/

32 V. SPAnISH SEABORnE TRADE BY MERCHAnDISE TYPE MERCHANDISES IMPORTS EXPORTS % % Crude oil 51,266 56,199 53,320 57,756 58, , Oil products 9,742 18,100 22,536 18,754 17, ,348 9,145 10,556 18,879 17, Liquefied gases 4,040 9,119 22,688 12,177 13, ,251 1,166 2,424 4, Chemical products 2,557 5,005 6,197 5,773 5, ,602 5,368 8,704 8,251 8, Biofuels Grains and flours 2,736 4,722 8,292 8,041 10, , Oilseeds 3,592 3,049 3,384 3,338 3, Iron ore 6,946 7,059 6,353 6,614 6, , Coal 13,131 26,474 12,891 15,221 17, ,282 2, Other min. / building materials 4,784 9,358 11,045 10,085 11, ,524 9,968 9,213 14,180 14, Concrete and clinker 2,912 4,338 1, ,890 1,400 2,193 6,550 7, Scraps 3,236 4,650 3,856 3,226 3, Fertilizers 3,893 4,695 3,330 3,021 3, , ,364 1,615 1, Wood 1,689 2,986 1, ,353 1, Siderurgical products 2,623 6,557 6,503 5,580 6, ,267 3,375 5,765 6,812 7, Other food products 6,960 13,053 12,756 13,140 14, ,750 5,539 8,541 10,333 11, Other metalurgical products Vehicles and parts 461 1,101 1,126 1,082 1, ,871 2,336 3,017 3, Machinery and spares ,595 1,498 1, ,022 1,805 2,532 2, Vehicles and container tares 1,464 3,935 6,475 7,683 7, ,299 3,908 7,127 8,133 8, Rest 1,691 2,596 4,446 3,785 4, ,751 2,597 2,955 2, TOTAL 124, , , , , ,188 52,262 64,401 92,032 96, Figures in thousand tons - %: 2014/2013 growth Source: State Ports - Data processing: ANAVE VI. SPAnISH FLAGGED CARGO CARRYInG FLEET SHIP TYPES ns GRT ns GRT ns GRT ns GT ns GT ns GT ns GT ns GT ns GT Oil & prod. tankers 105 4, , , Bulk carriers 61 1, , General cargo Containerships Roll-on/Roll-off Reefers Gas tankers , , ,082 Passenger & ferries Other TOTAL 681 7, , , , , , , , ,115 Figures as of 31 December each year, except for 2015 (figures as of 15 May) - NS: Number of ships - GRT y GT: thousand GRT and GT- Source: ANAVE VII. CARGO CARRYInG FLEET COnTROLLED BY SPAnISH SHIPOWnERS SPAnISH FLAG (Canary Islands Register) FOREIGn FLAGS TOTAL SHIP TYPES SHIPS GT dwt SHIPS GT dwt SHIPS GT dwt Oil & prod. tankers , , , , , ,353 Bulk carriers , , , ,776 General cargo 19 71, , ,626 74, , ,990 Containerships ,674 74, ,674 74,168 Roll-on/Roll-off ,973 78, ,218 42, , ,080 Reefers 3 14,087 14, ,404 15, ,491 30,220 Gas tankers 12 1,082, , , , ,200,695 1,007,120 Passenger & ferries ,492 83, ,505 64, , ,623 Other 12 68,170 93, , , , ,752 TOTAL 117 2,072,968 1,631, ,501,498 1,737, ,574,466 3,369,082 Figures as of 1 January 2015 Source: ANAVE 32 MERCHANT MARINE AND MARITIME TRANSPORT 2014/2015

33 MERCHANT MARINE AND MARITIME TRANSPORT 2014/