SHIPPING PRACTICE

NMIS
Assignment By Ravikiran Patil
First year 2020-2021
Submitted On 31 Dec. 2020

TEST PAPER 1

1.What is a classification society and what does it do?

Ans: A classification society is an independent, non-profit making body directed by a committee of
persons representing ship owners, shipbuilders, engine-builders and underwriters. They exist for the
purpose of ensuring that ships are properly constructed and maintained in a seaworthy and safe
condition.
Basically, classification societies perform three important functions, viz. –
1. They make and publish rules for the construction of ships which are to be registered with the
individual society to enable the designers to know the sizes (technically referred to as
"scantlings") of component parts that will be acceptable and safe.
2. They receive the plans of the ship for approval, the details of the materials to be used for
construction and. place their surveyors under whose supervision the ship is constructed. Thus, they
ensure a good standard of workmanship and ensure that the ship is properly designed. The rules
also require that periodical (i.e. annual, two-yearly, four-yearly, etc.) surveys are carried out to
maintain the ship in good condition ("in good condition" means to be "in class") during its working
life.
3. They publish a register book which contains in abbreviated form details for all "classed" ships
such as dimensions, hold capacities, derrick capacities and equipment etc., which might be of
interest to charterers, underwriters, bankers, shippers and others interested in shipping.

2.Discuss the difference between liner and tramp shipping.

Ans:

Liner Shipping Tramp Shipping

The liner ship is formed to transport a variety of They are designed in such a way
goods with great room for parcels, bales, that it becomes suitable for them
bundles, etc. It also has the space to carry to carry a simple, identical, and
refrigerated items. The number of the uniform cargo in large quantities.
 compartments and decks may also be different
in the Liner ships than that of the Trampers as
they are designed to take a variety of loads that
can be placed in the container or compartment
complimenting its characteristics.
The handling equipment may differ owing to the
requirement of loading and unloading the cargo
in a shorter time.
It has a pre-determined and fixed route,
schedule, and destination.
For speedy loading and unloading, the ships are
equipped with highly advanced moving
machines.c
The services have a predetermined set of rules
and conditions that define the responsibilities of
the shipowners and the terms related to the
carriage and delivery of the cargo.c
They have fixed freight rates.
3.What are the types of cargo handling equipment used for loading and discharging containers?
So, it is very appropriate for
transporting a specific type of
cargo.
For handling a specific type of
cargo, the equipment to handle it
will be quite simpler than those
used in the Liner Service. The
equipment may include
mechanical elevators and pumps,
etc.
As the ships don’t have a fixed
schedule, route, and destination, it
cuts the cost of the Tramp service.
Besides that, these less expensive
equipment are often fit in the ships
with lesser speed.
The loading and unloading in the
case of the Tramp shipping are
limited to a smaller number of
ports as the tramper transports the
cargo of one or two shippers.
There is no fixed route or
predetermined schedule.
The rates are negotiable.
Ans: The cargo handling equipment on a liner will be varied and sophisticated for quick loading and
unloading of cargo to ensure a quick turnaround. A quick turnaround means that the ship spends the
least possible time in the port and most of its time in transit. Most Liner Ships are Containerized and
are served by dedicated container terminals across the world
Cargo handling Equipment at CY, CFS & ICD:
1. A reach stacker is a vehicle used for handling intermodal cargo containers in small terminals
or medium-sized ports. Reach stackers are able to transport a container short distances very quickly
and pile them in various rows depending on its access.
2. Reach stackers have gained ground in container handling in most markets because of their
flexibility and higher stacking and storage capacity when compared to forklift trucks. Using reach
3. There are also empty stackers or empty container handlers that are used only for handling
empty containers

4.What is the difference between the bill of lading and the mate's receipt?

Ans: Bill of lading is a legal document between the shipper of a particular good and the
carrier detailing the type, quantity and destination of the good being carried. The bill of lading
also serves as a receipt of shipment when the good is delivered to the predetermined
destination. This document must accompany the shipped goods, no matter the form of
transportation, and must be signed by an authorized representative from the carrier, shipper
and receiver.
Mate’s receipt is a document originally issued by the first mate of the ship. He was the officer
responsible for cargo. The document would be issued by him after the cargo was tallied into
the ship by tally clerks. The shipper or his representative would then take the mate’s receipt
to the master or the agent to exchange it for a bill of lading, which would incorporate any
conditions inserted into the mate’s receipt

S.No MATES RECEIPT BILL OF LADING

Mate’s receipt is issued when goods

Bill of Lading is prepared & issued based on
1 are placed on board ship after
Mate’s receipt.
verification of quantity and condition.

Mate’s Receipt is prepared and issued B/L is issued by Master, or Agent, or Owner of the
2
by chief officer. ship, or charterer.

Mate’s receipt simply acknowledges

the receipt of goods inboard prior to B/L acknowledges receipt of specified goods for
3
carriage. It does not guarantee carriage carriage on board the particular ship.
of goods.

Once B/L is prepared cargo must be carried unless

Cargo maybe refused to carriage even
4 refused for valid reasons.(Dangerous cargo,
after preparation of Mate’s Receipt.
improper declaration, suspicious cargo, etc)

Mate’s Receipt is not evidence of

B/L is the evidence of existence of contract of
5 existence of any contract of
affreightment.
affreightment.
S.No MATES RECEIPT BILL OF LADING

Mate’s Receipt is prepared by chief B/L is signed by the Master in capacity of Agent of
6
officer in capacity of servant of Master. carrier.

B/L is a legal requirement in accordance with

Mate’s Receipt is not legal requirement
7 section 3 & 4 of Hague-Visby rules ( COGSA
but a procedural convenience.
1925)

Mate’s Receipt is not a legal document

B/L is legal document. It is admissible in court of
8 and is not admissible as evidence in
law even in absence of person who has signed it.
court of law.

9 Mate’s receipt does not bind carrier. B/L binds the carrier.

Mate’s Receipt is a temporary

document prepared for the purpose of
10 B/L is a permanent document.
verifying cargo when it is brought
onboard.

B/L must be preserved for a period of 3 years from

Mate’s Receipt may be destroyed once
11 the date of delivery of cargo or the cargo claims are
B/L is prepared.
settled which ever is later.

Mate’s Receipt is not a negotiable B/L is a negotiable document unless specifically

12
document. barred.

B/L is superior document to Mate’s Receipt. In

Mate’s Receipt is inferior document to case of any disputes between Mate’s Receipt and
13
B/L. B/L as to quantity or quality of cargo, the B/L will
prevail.

Cargo cannot be delivered against

14 Cargo must be delivered against B/L.
Mate’s Reciept.

Mate’s Receipt does not give title to

15 B/L gives right to title to the goods.
goods.

Holder of Mate’s Receipt is not owner Bonafide holder of B/L is the owner of goods
16
of goods. described therein.

Mate’s Receipt does not give right to

17 B/L gives right to cargo claims.
cargo claims.
 5. List ten different types of ships and their uses.

Ans:
1. Cargo Ships
Cargo ships are generally used to transport cargo safely from one place to another. They will
have a ship with a multi-deck or single-deck hull. There are thousands of cargo ships on the
move around the world, transporting good across the globe. They are crucial to international
trade. Cargo ships can transport things such as food, petroleum, furniture, metals, clothes and
machinery.
2. RoRo (Roll on Roll Off)
Most vehicles that are being transported over water internationally are done on a Roll on Roll off
ship. The reason this ship is so popular to transport vehicles is that it’s safer and much faster to
just drive a car onto the ship than using a crane. Once the cars are aboard, they are braced to
the ship’s deck to keep them from moving around while the ship is at sea.
3. Tankers
Tankers are ships that primarily carry huge quantities of liquid. They can carry a wide range of
liquids such as oil, water, wine and lots of different chemicals that need transporting. They come
in lots of different sizes but some of the larger vessels have the capacity to carry several hundred
thousand tons.
4. Passenger Ships
Passenger ships are officially defined as ships that carry more than 12 passengers. If you own a
passenger ship then you will need to abide by strict safety regulations. There have been several
disasters with passenger ships lately so the rules and regulations have been updated in a bid to
try and improve safety. Passengers should be able to travel in a safe and comfortable
environment. Passenger ships also include cruise and holiday ships.
5. Fishing Vessel
Fishing vessels are boats and ships designed to catch fish and marine wildlife. They are used for
leisure purposes but also for commercial fishing. There are millions of fishing vessels being used
to catch fish around the world. If you are considering working on a fishing vessel then it is
important to know that they are very dangerous. According to the International Maritime
Organisation (IMO) there are around 24,000 deaths on fishing vessels each year. All ships
engaged in international voyages must install an ECDIS. Electronic chart display and information
systems can help fisherman avoid bad weather and navigate through international seas.
6. High Speed Craft
High speed crafts are also sometimes called ‘fast ferries’. They are mainly designed for civilian
use as passenger ferries. They also include hovercrafts, catamarans and hydrofoil boats. High
speed crafts are able to go faster because they use air pressure and powerful turbine propellers.

6. What is the role of an agent?

Ans: As a Owner/Charterer Representative. Shipping agents have been in existence for over a
hundred years. Every time a ship visits a port, the owner or charterer (lessor of the vessel) needs to
appoint a shipping agent as representative of his own interest in the port of visit. The shipping agent
will be the sole appointed figure between the vessel owner/charterer and the country’s authorities
and suppliers during the port stay of the ship. He will be entitled to liaise with all the relevant parties
in the place of the owner to arrange of a whole range of goods and services required by the ship
during its port stay.

Responsibilities of the shipping agent

Before the arrival of the ship, the shipping agent will receive a nomination from the vessel
owner/charterer or the upcoming port call. Once the nomination is received, the shipping agent starts
to prepare for the visit of the ship. Amongst other things this procedure will include:
 Berth/Anchorage Spot booking for the vessel with the port authorities (Call announcement).
 Liaison with the various service suppliers (Courier services, Water Taxis, Ship Chandlers, Fresh Water
Supply, Bunker Suppliers, Transportation services etc) for scheduling and delivery of goods and
services to the vessel.
 Liaison with the various authorities required in providing different services to the vessel (Custom,
Authorities, Fire Fighting Services etc).
 All in all the shipping agent is fully responsible and liable to ensure that ships visiting its port of
operations are provided with all required goods and services in a timely, efficient and above all legally
respectful manner.
The services provided by a ship agent can indeed be quite complex depending on the nature and
purpose of the port call.

7. What is chartering? What are the different types of charters:

Ans: Chartering is an activity within the shipping industry whereby a shipowner hires out the use of their
vessel to a charterer. The contract between the parties is called a charterparty (from the French "charte
partie", or "parted document"). The three main types of charter are: demise charter, voyage charter,
and time charter.

A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge
port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port
costs (excluding stevedoring), fuel costs and crew costs. The payment for the use of the vessel is
known as freight. A voyage charter specifies a period, known as laytime, for unloading the cargo. If
laytime is exceeded, the charterer must pay demurrage. If laytime is saved, the charter party may
require the shipowner to pay despatch to the charterer.

A Contract of Affreightment is a contract similar to a voyage charter, but ship-owner undertakes to

carry a number of cargoes within a specified period of time on a specified route. Agreed frequency
of cargoes may require more than one ship.

A time charter is the hiring of a vessel for a specific period of time; the owner still manages the
vessel but the charterer selects the ports and directs the vessel where to go. The charterer pays for
all fuel the vessel consumes, port charges, and a daily hire to the owner of the vessel.

A trip time charter is a comparatively short time charter agreed for a specified route only (as
opposed to the standard time charter where charterer is free to employ the vessel within agreed
trading areas).

A bareboat charter or demise charter is an arrangement for the hiring of a vessel whereby no
administration or technical maintenance is included as part of the agreement. The charterer obtains
possession and full control of the vessel along with the legal and financial responsibility for it. The
charterer pays for all operating expenses, including fuel, crew, port expenses and P&I and hull
insurance. In commercial demise chartering, the charter period may last for many years; and may
end with the charterer acquiring title (ownership) of the ship. In this case, a demise charter is a form
of hire-purchase from the owners, who may well have been the shipbuilders. Demise chartering is
common for tankers and bulk-carriers.

8.Expand and explain the following terms: LC, BV, SHEX, CIF, tpi and BIMCO.

Ans:
BV- Bureau Veritas (BV): A classification society established in 1828, based in Paris. Its activities are
similar to Lloyd's Register of shipping for vessels' inspection.

SHEX- Sundays and Holidays excepted (SHEX). While laytime is the period during which the vessel is
made available for loading and/or discharging some days may occur during this period when it would
not be usual to carry out cargo operations in certain countries. In some Islamic countries, Friday take
the place of Sunday. It has become common for Sundays and holidays to be excepted from the
counting of laytime. The occurrence of a Sunday or holiday temporarily “stops” the “laytime clock”.
An “interruption” to laytime occurs. The charterparty will therefore contain a term in the laytime
clause stating that Sundays and holidays are to be excepted from the counting of laytime. The clause
may also provide that if loading or discharging is carried out on these days, laytime will count, either
in full or at a half rate.

Tpi-Tons per inch- Tons per inch immersion (usually abbreviated to TPI) is the number of tons
that need to be loaded on a vessel for the draft to increase by one inch. Old imperial TPI
measurements are stil occasionally used within the United States and the Panama Canal. As no
ship has been measured by a classification society since the 1950s using imperial measures,
modern TPI figures are therefore a conversion from the original metric measurements.

BIMCO- Baltic and International Maritime Council (BIMCO) A commercial shipping trade
organisation headquartered in Copenhagen. BIMCO is one of the largest international organisations
of ship owners in the world. BIMCO therefore works to promote and secure global standards and
regulations for the maritime sector.
CIF- Cost, Insurance and Freight: “Cost, Insurance and Freight” means that the seller delivers the
goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to
the goods passes when the goods are on board the vessel. The seller must contract for and pay the
costs and freight necessary to bring the goods to the named port of destination.
LC: Letter of credit, a document issued to provide a payment undertaking. A letter of credit is
a definite undertaking, pursuant to an authenticated record, usually by a commercial bank (referred to
as the "issuer"), for the benefit of another person (referred to as the "beneficiary") at the request and
for the account of a third person (referred to as the "applicant") to honor a documentary presentation
by payment or delivery of an item of value.
FOB Free On Board: “Free On Board” means that the seller delivers the goods on board the vessel
nominated by the buyer at the named port of shipment or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the
buyer bears all costs from that moment onwards.

Model test paper 2

1. Name five classification societies

Ans:

Name Abbreviation Head office

American Bureau of Shipping ABS Houston

DNV GL (Det Norske Veritas) DNV GL Oslo

Germanischer Lloyd GL Hamburg

Nippon Kaiji Kyokai (ClassNK) NK Tokyo

2. Describe the main differences between a bulk carrier and a tanker?

Ans:

Structural Feature Bulk Carrier Tanker

They are single decker vessels A tanker (or tank ship or

capable of carrying cargo tankship) is a ship designed
underdeck protected from to transport or store liquids or
weather and used for carrying gases in bulk. Major types of
tankship include the
large quantities of bulk
oil tanker, the
commodities. These ships chemical tanker, and gas
have unobstructed, large carrier. Tankers also carry
holds and hatches and are commodities such as
usually gearless. vegetable oils, molasses and
wine.

Cargo Hold openings Large cargo hold openings Small opening to enter cargo
hold

Cargo Operation By Ship/Shore gear, Sling, suit By pipe line

or conveyor

Appearence Pipelines all around deck Comparatively less pipelines

Cargo gear when fitted Cranes, Derricks Usually one or two mid ship
cranes

Extra Machinery Doesn’t require extra Inert Gas, Separate pump room
machinery

Construction of Hull Not Compulsory Double Hull Compulsory

 Cat walks Fitted Athwart ship Fitted longitudinally

Cargo Tank Cleaning Easy Comparatively different and

COW washing

Company’s permission No need to obtain permission Permission from company is

to enter in cargo hold. (Risk mandatory, (Risk Assessment
Assessment Carried out) Carried out)

3. What role does a freight forwarder play in liner shipping?

Ans: A freight forwarder is responsible for the transportation of goods between one destination and
another. Freight forwarding companies specialise in arranging the whole process for their shippers, from
the storage to the shipping of their merchandise. They act as an intermediary between the shipper and
transportation services, liaising with various carriers to negotiate on price and decide on the most
economical, reliable and fastest route.
Using a freight forwarder to import and export goods can make the whole process much less stressful.
Extremely knowledgeable in the elements of supply chain, freight forwarders can assist on all levels,
from the packing and warehouse stages to the customs procedure, taking some of the pressure off you.

Freight forwarders can assist with the supply chain process on multiple levels including:

 Customs Clearance
 International export and import documentation
 Insurance
 Packing
 Storage
 Inventory management

Using a freight forwarding company for the transportation of goods to your consumer can be
advantageous to your business in many ways. Using their knowledge and expertise, freight forwarders
will ensure that your goods will arrive at the correct destination on time and save you money in the
process, compared to doing it alone
With freight forwarding comes a lot of paperwork, especially when shipping overseas. Your
freight forwarder should provide you with all of the relevant documents, including:

 Commercial invoice
 Bill of Lading contract
 Certificate of origin statement
 Inspection certificate
 Export license
 Export packing list
 Shippers export declaration document
It’s essential that all of these documents are provided in order to ensure that your goods reach
your customer without any issues arising
 4. What are the functions of the bill of lading?
Ans:
FUNCTIONS OF A BILL OF LADING:
1. EVIDENCE of Contract of Carriage : It sets out the terms of the contract of carriage in
writing but is not the actual contract itself, the contract having been made earlier by offering of
cargo for shipment by the shipper and acceptance of that cargo by the ship owner. The
preliminary contract will be acknowledged by both the shipper and carrier to incorporate the
carrier's standard terms of business.
2. RECEIPT for Cargo : The principal use of the bill of lading is as a receipt issued by the
carrier once the goods have been loaded onto the vessel. This receipt can be used as proof of
shipment for customs and insurance purposes, and also as commercial proof of completing a
contractual obligation.
3. Document of Title to the Goods : It is a title of the document shipped on board a vessel
without which delivery of goods cannot normally be obtained.
4. Quasi-Negotiable Instrument (Partially negotiable) : It is a commercially quasinegotiable document
enabling transference of goods by endorsement and/or delivery. It is only
negotiations of the documents.

5.Discuss the different roles of the port agent and the liner agent.

Ans: 1. Port Agents are those which look after the tramp ships, those that are operating on a charter
party rather than a liner service. Their remuneration is always an agency fee.
2. The duties of an agent will vary depending upon the ship, cargo and port, besides of course, what
precisely his principal wants him to do Notwithstanding the same, the reason for requiring an agent
will always be to look after all the needs of the ship and her personnel while she is arriving at,
staying in anddeparting from the port. It would be impossible for the principal to take care of the
needs of the ship andher personnel at ports all over the world. Hence, someone who is akin to local
conditions besides havingan establishment has to be appointed to do the job.
3. The first thing an agent must do is to identify that the principal. This is very important because
the agent will spend substantial amounts and establishing where the money is coming from has to
be apriority. At this stage you may easily say that the principal can be none other than the ship-
owner. Thiswould be largely true, but what if the ship is on time charter? In such a situation the
time-charterer is the principal and that is why in legal terms he is referred to as the “Disponent
Owner”.
4. If you are clear on the above, it would be right to state that the principal for whom the agent is
working is the person who pays him.

A liner agent will “market” the transport offered by the shipping line, while balancing the satisfaction
of the shipper. Every shipment on the liner service must have the correct paperwork, which in the
case of a large containership could be in the hundreds of thousands. A liner agent will complete all
that paperwork, or these days, complex electronic procedures, identifying the ownership of the
goods, recording their precise description and weight, making an accurate detail of their destination,
and ensuring that all legal obligations are met. All of this information needs to be received by the
discharge port well before the goods reach the ship. Collection of payment for carriage of goods will
also be organized by the liner agent.
Liner agents can be employed by the shipping line itself, but there are many independent
outsourced companies offering liner agency. In contrast with port agents, liner agents are not
normally based in ports, as a port is only one channel of many for the liner trades. With an
integrated network, from manufacturer by road or rail to ship, to end user, liner agents can easily be
based away from ports.

6. How is dry bulk cargo loaded and discharged?

Ans: Planning and control of cargo loading and unloading operations for Bulk Carriers
Preparing vessel for cargo operations -Collecting cargo and Port Information:
The safe operation of bulk carriers is dependant on not exceeding allowable stresses in the cycle of
loading, discharging, ballasting and de-ballasting. To prepare the vessel for cargo stowage and a safe
planning, the loading and unloading sequences and other operational matters should be informed
well in advance.

The shore terminal should provide the ship with the following information :

i) Prior to loading bulk cargo , the shipper should declare characteristics & density of the cargo,
stowage factor, angle of repose, amounts and special properties.

ii) Cargo availability and any special requirements for the sequencing of cargo operations.

iii) Characteristics of the loading or unloading equipment including number of loaders and unloaders
to be used, their ranges of movement, and the terminal's nominal and maximum loading and
unloading rates, where applicable.

iv) Minimum depth of water alongside the berth and in the fairway channels.

v) Water density at the berth.

vi) Air draught restrictions at the berth.

vii) Maximum sailing draught and minimum draught for safe manoeuvring permitted by the port
authority.

viii) The amount of cargo remaining on the conveyor belt which will be loaded onboard the ship after
a cargo stoppage signal has been given by the ship.

ix) Terminal requirements/procedures for shifting ship.

x) Local port restrictions, for example, bunkering and deballasting requirements etc.

Cargo trimming is a mandatory requirement for some cargoes, especially where there is a risk of the
cargo shifting or where liquefaction could take place. It is recommended the cargo in all holds be
trimmed in an attempt to minimise the risk of cargo shift.

The ship's Master should be aware of the harmful effects of corrosive and high temperature cargoes
and any special cargo transportation requirements. Ship Masters, deck officers, charterers and
stevedores should be familiar with the relevant IMO Codes (for example, the IMO Code of Safe
Practice for Solid Bulk Cargoes, the IMO Code of Practice for the Safe Loading and Unloading of Dry
Bulk Carriers and the SOLAS Convention).
Devising a Cargo Stowage Plan and Loading/Unloading Plan

Exceeding the permissible limits specified in the ship's approved loading manual will lead to over-
stressing of the ship's structure and may result in catastrophic failure of the hull structure. The
amount and type of cargo to be transported and the intended voyage will dictate the proposed
departure cargo and/or ballast stowage plan. The officer in charge should always refer to the loading
manual to ascertain an appropriate cargo load distribution, satisfying the imposed limits on
structural loading.

There are two stages in the development of a safe plan for cargo loading or unloading:

a) Step 1: Given the intended voyage, the amount of cargo and/or water ballast to be carried and
imposed structural and operational limits, devise a safe departure condition, known as the stowage
plan.

b) Step 2: Given the arrival condition of the ship and knowing the departure condition (stowage
plan) to be attained, devise a safe loading or unloading plan that satisfies the imposed structural and
operational limits.

In the event that the cargo needs to be distributed differently from that described in the ship's
loading manual, stress and displacement calculations are always to be carried out to ascertain, for
any part of the intended voyage, that:

a) The still water shear forces and bending moments along the ship's length are within the
permissible Seagoing limits.

b) If applicable, the weight of cargo in each hold, and, when block loading is adopted, the weights of
cargo in two successive holds are within the allowable Seagoing limits for the draught of the ship.
These weights include the amount of water ballast carried in the hopper and double bottom tanks in
way of the hold(s).

c) The load limit on the tanktop and other relevant limits, if applicable, on local loading are not
exceeded.

The consumption of ship's bunkers during the voyage should be taken into account when carrying
out these stress and displacement calculations.

Whilst deriving a plan for cargo operations, the officer in charge must consider the ballasting
operation to ensure:

a) Correct synchronisation with the cargo operation.

b) That the deballasting/ballasting rate is specially considered against the loading rate and the
imposed structural and operational limits.

c) That ballasting and deballasting of each pair of symmetrical port and starboard tanks is carried out
simultaneously.

During the planning stage of cargo operations, stress and displacement calculations should be
carried out at incremental steps commensurate with the number of pours and loading sequence of
the proposed operation to ensure that:
1) The SWSF and SWBM along the ship's length are within the permissible Harbour limits.

2) If applicable, the weight of cargo in each hold, and, when block loading is adopted, the weights of
cargo in two adjacent holds are within the allowable Harbour limits for the draught of the ship.
These weights include the amount of water ballast carried in the hopper and double bottom tanks in
way of the hold(s).

3) The load limit on the tanktop and other relevant limits, if applicable, on local loading are not
exceeded.

4) At the final departure condition, the SWSF and SWBM along the ship's length are within the
permissible Seagoing stress limits.

During the derivation of the cargo stowage, and the loading or unloading plan, it is recommended
that the hull stress levels be kept below the permissible limits by the greatest possible margin. A
cargo loading/unloading plan should be laid out in such a way that for each step of the cargo
operation there is a clear indication of:-

i) The quantity of cargo and the corresponding hold number(s) to be loaded/unloaded.

ii) The amount of water ballast and the corresponding tank/hold number(s) to be discharged/loaded.

iii) The ship's draughts and trim at the completion of each step in the cargo operation.

iv) The calculated value of the still water shear forces and bending moments at the completion of
each step in the cargo operation.

v) Estimated time for completion of each step in the cargo operation.

vi) Assumed rate(s) of loading and unloading equipment.

vii) Assumed ballasting rate(s)

The loading/unloading plan should indicate any allowances for cargo stoppage (which may be
necessary to allow the ship to deballast when the loading rate is high), shifting ship, bunkering,
draught checks and cargo trimming.

The loading or unloading plan should only be changed when a revised plan has been prepared,
accepted and signed by both parties. Loading plans should be kept by the ship and terminal for a
period of six months.

A copy of the agreed loading or unloading plan and any subsequent amendments to it should be
lodged with the appropriate authority of the port State.

Operational guidance

All bulk carrier officers should have clear guidance and instructions available onboard their ship.
There should be guidance on:
  preparation of holds
 carriage requirements of bulk cargo
 safety aspects of bulk cargo carriage etc (liquefaction, heating, hazardous gases, oxygen
depletion, entry into enclosed spaces)

7. What is the difference between the statement of fact and the notice of readiness?

The Notice of Readiness (NOR) is the document used by the Ship Master, to notify his ship
readiness, in every respect, to load and/or unload the goods during the period of his charter. NOR is
an extremely important document as it triggers the commencement of laytime. “Laytime” is the
term used to refer to the time allowed to the charterers to load/discharge cargo in return for
payment of freight to the owners.In a case of invalid NOR, the vessel might not be considered as
arrived ship and therefore all waiting time until berthing will be refuted in the demurrage claim.

The Notice Of Readiness (NOR) is always to be tendered in accordance with the terms of the
Governing Charter Party. Unless otherwise advised, the NOR should be tendered to all parties as per
voyage orders, stating that vessel is in all respects ready to load or discharge her cargo. If the vessel
becomes not ready, then NOR will be tendered when the vessel has corrected whatever was the
cause of her not being ready to present NOR.

Contents of NOR

The notice of readiness is the notice to the charterer, shipper, receiver or another person as may be
required under the charter-party that:

1. The vessel has arrived at the specified destination where the notice of readiness can be given.
It can be said briefly that the specified destination will depend on the terms of the
contract. Various clauses in the charter party may advance the time that the vessel may
tender the notice even though she may not be at the specified destination. The most familiar
are the WIBON (“whether in berth or not”) provision which means that under a berth charter
party, if the berth is not immediately accessible, the notice of readiness may be given when
the vessel is in the port in which the berth is situated. Similarly a WIPON (“whether in port or
not”) provision will enable the notice in certain circumstances to be tendered even if the
vessel has not yet entered the port area.
2. The vessel is ready to load or discharge the cargo as the case may be. This means that the
vessel must be both physically ready in that the holds are ready to receive the cargo and
legally ready in that all documentation necessary to enable her to commence loading is in
order. If, however, the vessel is ready to subject only to a mere formality then the notice may
still be able to be tendered. For example, if customs clearance is only obtainable on berthing
but the notice can be tendered when the vessel is off berth then this will not affect the
vessel’ ’s readiness.
3. All other requirements under the charter party concerning the form, timing and the party to
whom the notice is to be tendered have been complied with.

Requirements for a valid notice of readiness to be served

1. The vessel is an arrived vessel.

2. The vessel is ready to receive or discharge the cargo.
3. The notice of readiness is tendered to and received by the proper person according to the
charter-party.
 4. The notice of readiness is tendered in a contractual way.
5. The notice of readiness is tendered at a time that is allowed by the charter-party.

Statement of Facts (SOF) is a detailed chronological description of the activities of the vessel
during the stay in a port: taking the sea pilot onboard, hailing in, locking through (if
applicable), mooring, preparing the loading and unloading operations, the actual loading and
unloading operations, the amount of load transfer, unmooring and departure.
The SOF further states whether or not tugs were used and the amount of fuels onboard
when mooring and departing.
In the event of voyage chartering, the periods during which no work can be carried out due
to weather conditions (e.g. in the event of rain) must also be clearly stated. After all, this
time is not counted as lay days when the lay days are “weather lay days” or “weather
working days”.

8. Expand and explain the following terms: SOLAS, ULCC, YAR, FAK, DNV and IMO.

Ans: SOLAS: The International Convention for the Safety of Life at Sea (SOLAS) is an international
maritime treaty which sets minimum safety standards in the construction, equipment and operation
of merchant ships.

ULCC: an ultra large crude carrier (ULCC) has a DWT of anything between 2, 50,000 to 5, 00,000
tons.

YAR: York-Antwerp Rules . The York Antwerp Rules are a set of maritime rules that were established
in 1890. Amended several times since their inception, this set of maritime rules outlines the rights
and obligations of both ship and cargo owners in the case that cargo must be jettisoned in order to
save a ship. Generally, bills of lading, contracts of affreightment and marine insurance policies all
include the York Antwerp Rules in their language.

The York Antwerp Rules state three clear principles, all of which must be met in order for the rule to
be applied. The first stipulation is that danger to the ship must be imminent. Second, there must be
a voluntary jettison of a portion of the ship’s cargo in order to save the whole. Third, the attempt to
avoid the danger must be successful. If a situation meets all the stipulations, all parties involved in
the maritime adventure must share proportionately in the financial burden of the losses incurred to
the owner or owners of any of the cargo that was jettisoned in order to save the vessel.

FAK: FAK stands for “Freight of All Kinds.” It’s a pricing tool used by most LTL carriers, and it groups
freight class ranges so that they are billed or rated at the same class. For instance, if you have an FAK
range for items shipped classes 60 to 92.5, under your FAK all of those items (regardless of their
actual class) will be billed at class 60. Generally speaking, this saves you money.

DNV: Det Norske Veritas (DNV) was founded as a membership organisation in Oslo. Norway’s mutual
marine insurance clubs banded together to establish a uniform set of rules and procedures, used in
assessing the risk of underwriting individual vessels.

IMO: The International Maritime Organization – is the United Nations specialized agency with
responsibility for the safety and security of shipping and the prevention of marine and atmospheric
pollution by ships.