VVVVSHSYVSSSSSHSSVSSHSHOSHSRSSHASOSTOGSSCHETEY * Shipping Eouiliboiv SOP PING Eaviliboivm’ 04-102) Muzib Sin Lecture -13 * Demand and supply has 2 peloton Supply ® Demood U = Price L supply J Demond 7 = Prieet + Import demand = Expont supply ¢ Shipping trood. v Depends on 2 Domestic demend & Domestic, supply + * Equilibpium? Dd - sg = sp-of pare * Foeight = Tor * As notes niga. ovnems bing ships oto layup ond inenease Speed to increase no of voyoge. Bot in this process. the supply becomes infinity in the Shoot +enm. Then the demend folls+Demond? * Demond curve is verheolly stnoight This is called , heloste Cheneetenisties! * Elostic demand’ supply p price v + Ineloste 4 36° pnice p put demand some - Enomple 2 Rice. Sol} * Demond not neleied to freiaht: +Supply ond demond + Ponatiel demand cunve dy, Dy.Dg + Di>deoD3 + Freight only inepeases owhen demend incneaces + Dy 40 Det Godel nise * De to D3 g Shanp wise called Kink - + So, both demand and supply cvave ane ventical. So there ig an ovenlap instead of intensection + Due to oveolapping length, the notes get volohie: HOHOOHHOHEHLELLCEROKELLLEKL TERRE KRALLRRRRAS RADSULLOCELETECETELLETT SY sso 2 > set > 3 PP P a * Supply cupve shit * Shor! Ys. long mun equilibrium! ee * Demond con't be vanied in chon} but supply cant + Short puns * 2demondeunve butt supply eunve * We cont inenease the no.of demend intertonetly In shoot pun + Thot-s Why the freight increases + Due ty demond shift from Dy to D2. the price incncases From Pi to pp. * Long -punt * Demond shiftedtnom Ditody. Button So supply, the price Py pemsins some So. in the Shipping system, inthe long team, fncight is stoble- But inthe short nun, thedneight ineneaces becavee we cont build shipe in the shont mun * Shipbeilding indostny is 0 heavy indusiny and it takes time or production -* Demand uncontointy for freight index floctyetion = + Nonmelly when demand of ships is covened by production, there cpeates o stoble pegion hike hom 1999 to 2002. * Butthis stoble pegion is not moinfoined because ship production is no} combnuovs. Mheo a Ship is senaped. if there is no new ship +o peplace thet then, the freight IMcpeoses + * Globol issvest . Shipbuilding involves long-tenm plenning « + Whole woold * Macros only a country on pegion’s econormicagpact 18 considened, Person op unit * Popvlotion distnibytion? + Sealevel? $20 level increases and decreases with 4ideand season + * High tide -Jow tide , Reiny seoson. winlen season. * Mean sea level is the ovenage of alll these fides . SoH OPOPEOPELHOLCRE LI LELELT EE KRELEL ALEKS SRK R ERSt WU UU UDO eR EE EEE SEEDS SELHSGSHEEESNESDN” ° MSL isfixed for a courlny by taking avg of High -low tide fon © Yeon . “Economic imponto nce of transportation? SPORE ONE ee * We need -totnonspont Man & Netenial. J L Passengen — Cango * Troosportortion # Shifting man on medeniol from one phce +b onothen-fon economie purpose * Tronsport is nelobed-to-focton ond consequence J v provides the Focility J Pemolet —_Epample® Duco Padioa Bridge, Bridge Ven factons ona Used, a Value is added “price f, economic scale is canned the pine of lond cnound 4 hove incheased * Economies of'ccalez TR we moke oely one Product, then © he eestel prodvction ineneases. But-fommoss produ chon By which occon. the production eostfolls. The foll of production cost is,economies of scaleMonrhme trans porto hone * Cheapen beccuse fuel ic needed less in waten Ueto +21 Nuzib sin + Geographical space of world pmanitre transport * Inleanctionol novie enosses 3 oceons? ® Pocific ® Aiientic ® Indian oceon * Pacific to Miomhe® ® Hagellon 2 (Sout) ® Poncma eonal @® Nowthwes+ + Atlorhs to Indian oceané ® Svez Conol ® Good Hope mmr nrnanaHaaKOHGEHOOGHOOEOHEHSLHEK LEECH ERSER LKR eeeHeee* Tndion ocean fo pacific? D Sunda stroit @ Nelocen yu * Eonly european Maritime enpeditions? EOE * Vaseo da gama fingtcometo Calicuton the Nolcban coast Jo kepola cochin. * The industrial revolution and Meaning tnonspontation? * Thane wane two incidents causing Manitime tnanspomtotion pevoluton « D Conel system devebpment ® Roilway connected 4 seonny pont * Strait, 2 9 + aaa “Gust Wheneorethe straits located 2 What is connected, * Bering straits * Amenica and Russia hove bonden in +the Alaska POVSSSVSVSS SSS SESE EES SSOLEEEDOSLEVELELEUY:$ues® whieh countny has hwo s{naits 2 > Turkey © Strait of Bosponus © Stroit of Dardanelles + Straight ef Malocea and Sund + Sinoight of Maloceos ® Indonesia ® Malaysia ® singapore + Stnoightof Sunda PRoeky anea so not used nowedays , + Stnoight of formosa’ * Modern name of formosa = Taiwan | Emengence of Modenn Moning Tet system: * Stpots one created by natune * Conels are man -mode anaoHeP OEP PLEO HP TOHTCEFERE THF ESRRRR GLK EE KK REA:* Slide -202 * Svez cena]? + Only memon'ze the eolumn 3 20) Hillnow * Greo-~economic impoetof Suez cencls + Dueto Suez cancl, distance has lessened +p -tnave J-from Europe to Indian ocean: * From |Go00 kM 4o poookM hac lessened. oh we Nonthme encl 2 * Importont-fon shomt note14.]o-2) Pani-2 * Freight © peady 4o be delivened to merchant, intact aondshon+ * Types’ ® Advence ® Lump sum 2 * No nelaton with quembty + Oly concenned with capoctty ® Deod freight 2 ee * TF someone is uncle -to deliven goods which, caused the breach of contnact, then he Will get no money * Bob P we considen tno the cannien fag breached the comnacy, cthen he will have to Pay the dead Mnoight Exempla? Ff we leave pickshaw ue to jor and Wolk, then wel) hove to ave pick shawala the full freight which ic deod tneight * Agein-if there is no-fauttoM-he menchon} Foo not delivering completely, then if he hos portally delivened then well give hin @eee5ear ( aaananaavoaoaveecoeseenec4ao5a4ase eer ee5une ee Beeeeee -VSO SEEDS SE SESE SHE HSSEHCHHSSHSESEOSLEEULEE some freight which is deod freight! - ® Pro.noto® + A powtion of dead freight « + When impossible to deliver like when ship sinks . then pro-eota some freight is given which is deed th oigkt * For dead freight, the damage to ship con be pepained bot for pro-nota freight. if ® Bock 3 is impossible Going beyond deshnaton (contnacted) - "Then the petunn freight af ship-to contnacted destination 1s also given which is called bocktreigh} . © AS Volowern? * Whan congo is assesed ata punchose role [ile weapon, diamond, then we need to give extng freight fon Protection "This exine Freight is called Ad volonom* Method. Be freight pricing? + Dimensional weight! £ * d4on means 100 OFT © Grose tomnage is volume * We use dimensionel weisht fon cangos which hake longe space bet weight is less « * Both weight and volume of the Cargo ano Considened, + Dimensionol weight means we have 4p give Freight for loo CET whothes ft ig complelely ful} Or not. * Ifthe comfeinen size is highor-then stondond size, then wie hovete give additionol chonge - * Slide-32 * Maritime secton is mainly domincted by Bulk cango. * Oil tenken is a bulk cango chip. *° Cherten services? * known as Tramp PEELE TSLSLKKE KKK AAT eeOKHOOPKELTECEERL LICL TEEbUCLLELE + Chonten senvices® @ Single voyage chanten 8 Starhng poicl to destinehon = aaa “4 O Time chonten’s Chorten for days /months/yaans 4 @ Boreadootchomten® Noel /waten efe pnovided, 4 the chertenen needs to pun the ship eo Cheopen than voyoge chanten . Mso calle) see chank 3 ® Lootnact of Affacightmerst 3 BL the shrp-hasloos-ton a Copacity, : : 2 1 Shenten party and split incerhive * Contract of Affreightmeny + Thwe take chonten ofa ship by which. some nights on Obligations of thot ship comes Upon-tne ehantenen * Owner can pent cargo space fin Specific time op voyage . So,the owner of thot Cargo spece is the chantenen thon. The chartenen can use thot ton business PELEUEEEEESSE y+ Sorthis is an agneament by which o shipbuilding eompony nents /ehartens pasteulan cahgo Space ond do business with It- + Liven shipping senwices? * Requlon scheduled shipping + Himing and noule speerhe + Govt intervention? * Govt imteevention is high on Men rlime-tnonsportation , Because tnene is 0 chence of SmMvgling ,iNegel tra nspowlaty on, Comtrobond -nansportation . © Smuggling? Transportation legal but still pesom to iNegol ways to avoid ton. © Mlegol tnensperdeliont Not abiding by mule. Oconinabend twonspertotions No sel buy. stone, Consumption is lego] - SaonGSSHOPOOTEOEHOHKSHEKLFSPSCSESCKREKCKSRRE KES EHS EATVOVSSdsSSSoSeSSHyeboesEEsoHosgvsvsvssavonvvnvvne” "Gabolage? Letueconsiden a singaporion chip is filled wilh Congo coming to chittogong poet ond unload. Then it Will go4o rongla and unload/ ood: Then i will go beck +o singapore. “The congo which come from singapore can be unloaded both inehiHagong and mongla- But-ihe congo loaded from chiltogong cont be unlooded in mongla - thal means, any congo loaded fhom Bangladesh ean only be unloaded outerde the couniny ‘This lewis calles cobotage law. * Cabotoge means. nestnicton - * Cabetage ond pendulum Senvice? sleta ship from couniny-2 goes from pont D fo 4. There is looded & unloaded and moved +o pont B. Thene i+ unloaded only the cangotoom port D pot pont A. * So, the congo Jooded fron Country -1 cond be unloaded “there: thes tobe unloaded in countny-2 -* Butas the ship is from countny -2, ithas no aestnicton Tor looding/ unloading in any port inthed courtny. * This is cabotage . * Permissible price? —_—— * the maximum price thot guanantees a speerfied incom? ton Exomple? Tnsuponee policy « + Flogs of convenience? Sentences * Gon pegisten fo anothen nation * The mostnegistened countnies ane? © Panama ® Liberia @ Mepsholl islands Because then pegistaton is libenol- * Mongolia has no sea but it Can pogisten aship. * ‘The laws Ane infoneed aceonding-o negisten ed courting « eee eee eeeTOOTS SERS ESESHSSSSSSOSSOSSOSSOLELE * Bongbdesh is pot popolar in ship negistan due to tor low and Administrative complenity Even Bongladeshi companies 90 4p Panama: 18: Jo-2) Muzib sin Pant-3 © Coshin Advance? pisk on part of buyer ® Open Account 2 * Buyer ond seller makes an agheement gthat goods ane delivened befone the payment Risk on pant of Sellen, @ Pes + Cash Against Document (6/0) * Buying Lond+ To minimize nisk of cosh inadvance and open aceount, CAD method is applied * Here-o-paydaaftof omdnat}cemand + Hene, a poyonden OP DD is done with the bank So thot without cleanonee ofthe buyen- the DD Cont be broken * D/e system is bolenced. * Exponten - Importer has thein own bank each fon this process « @ Lye | * NO payonden buta IeHen is written: The leH@n is named ‘Letter of @nadit’ (1/e) + + 1/¢ is used fon imfepnationol paymen} Z/¢ is given from bank as guarantee - i * Itis intesnahonolly approved. by Iec- + Lcis against agreement! net cargo - sou deals with only documen| not money on goods - SCPPHKPKFEKPKETCKEEREEHHPTRERLCKLHSCRSCTeeeeeseeecWSSSVSSVyePVS VS ee S Sse SFSHS FSGS HHSSGHGEHSSSEeysyyueeee Asse + Die vs byek * When exponten is done exporting, he gives the document of proofto his bank + Thot document is then sent to imponten’s donk: then-4ne importers bonk makes arnangemer| fon Payment. his is-the process fon Die, * Secunity is -tho+ payment /goods ane guenanleed. * Butbonknole is veny limited hene . Because bank don’t hove the ovthonity +o verify thet document + Le domt havethese +type of limrtations . Lye js agains} Contnoct Deis against goods. * D/c foster & cheap Le lengthy & Expensive because we needto give money +o bank © Chodit 2 ate fale! + Thoms on the credit itself because When the exporter is shipping the goods. he hash/t been paid yet. + Basic patiess Exponten - Imponten *¢ Thoms on drafts The amount of money of L/¢HE is ivan by impontom op Bank ofimporten on behelf of Imponkento exporters bank . Exporten-s Bonk then verifies thot Le ard attenthot the goods ane Shipped - Y/% amount and currency 3 * The cumpency of Bonglodech is Taka 4 4 “ Europe | Pound Lie js in — dollar * Tmponten fing opens a Lv accondingto dblian. on the cuprency written in agneeman}- Butthe pmt will badena by toka. The Jako will be caleulajed dodollon. the} dollan will 99 to exporter . Butthe exporter will receive it in pound. * Slide-4¢ * Genepol Document? is Bill of Leding 3 Given by shipping company +o exponten. + No pmt con be done without thece documents . + Cephfecte of origin? Oeigin of goods /matenial + Inspecton centificate? Also caliad PSI (Pree shipmend | inspection) Boner eee rrrererereregeereeeeeeeerzreteeeeenteeceree LOOSE SEESESSSSSESVHGEEEEESELETOSSCSECES OLE » Brashear fegafar * Bill of onchange? eee eee eee ne mede by gov * Othenwise His given by person/company * * Side-52 * Toust bonk can} poy es confirming bonk and it hadto 9etpenmission from Bongladesh Bonk. gecouse it may hove been illego! to import /42 xport -thot- * Qves® Bon with the meney. When will the exporter wont get money] —? When, centnol book of the counlny concels tro prt. filso, i# the compony of which the producis ane imported maybe illegal / benped op some enedit 1S SHIl owed from them. Op when pad company hod previously done any fraud with Bangladesf, ond hos indernotional lause agcins} than,2b1o-2) Huzib sin Muzib sin * Bapontens have o lisk of bank ormong which. the imponten chooses oneand gives Lye. L/c is opened by imponien Dic ww exponien . * Procedures of Les * Explain with tig une in exam © Contnoct beth buyer and sellon on @xporten and imponlen . @® _ Importer will apply fon L/¢ to importap-s pank with the copy of agreement +» Only Recooriced inkernationally bonks ane allowed They heve erodi} wor}, @ Bank issves LC, in this: tha bonk demonds debif along with document and agreement copy: The debit should be occonding to cunnency Rote ondhal dale. af Importers pays the debit in cash. then who+then he eunnancy ineneases ondecnocses is of na concenn +o him. Fis the concern of bank But Phe gives guenanty instead of cash. then ho Will hove to paythe entno debit if the Connency jnepeases LBReereeegre steer eeePeeeegerees eee OReHSOOQOnngnganananana.SSHSSSSESSESEESESEEEEGCESESSEESESFSSEHCSHSOSHSSSSGOHTOE @ Sellen-s bonk only gives Suppont - When sellen naceives the ds L/e+ he will verity it. Then sellen will ship the goes ® Shipping document will be sem to buyen's bank by selion © Buyers bank venity trot shipping document and gives the Pint. Bod tha shipment is yeito peceive « Or doesn? enist. Imponten olneady gives the Pmt. then this process Ff nek given, thon bank deduets money From buyens oceoun Buyer gets shipping document from -Iha bank of buyer . © Bryer thoncen unlood tha ship ment- * Types of bye @ Revocable L/c% which con be ecncelled. His written in L/e. Sellen verifies this W-+the Lye is pevoeable on not + Tf revocable +hen whod ane the conditions + Gime /roule) Tnrevocable Lye 2 No conditions. no Cancellations @ Confinmed Ves Some conditioned maybe given. Unconfined L/es We con-tgetony money from-this - So,we need to convent this + continmed L/¢ for prt.“Thene is an important pole of ceninal bank 1n unconfinmed Lye - + Specioltypes of Lye 2 cc Thansfepnable# Suppose we heve sent a Leto o Compeny. But+thot company will buy goods Thom Onothen company: So. tha company will transfer L/ 40 thot new company + Aften that the L/e Will be verified ond dre goods will be sent - T+ shovid be wnitendown inthe Lye text+ * Boek do bock epodi% Thene is 0 middle mon bel? imporlen and exponten . Exomple 2 Exponden sends some cloth ands mponien peceves H, makes chind and+tnen again sends it to impomten. * Thene ane two seporate ehedit hope fon incoming and outgoing + Adv? Chonge less No problem in time enlension eT moe eooPreore reer ergeer err eeeegeeareee es ee gsPPT HTSTSHVSSSSSSSSSEFSSSSESHESSHCSHSSSSSSESHOCOCSCOCEE * All the garments company does bock to beck Lye with America on expopeto nedvce benk chenoe * But o centoin emountis needed tp be given pine middie man. The middle-man should be trubhwonthy ond becogni sed * Recipnocal enedif ® * Somecs beck to bock credit butno middle man “Ges* DFE bel” Bock to boek L/C and reciprocal Le > Middlemen. * Revolving L/c ® * Some L/e ic omended mony times + + Exemple 2 fon o ship. enane-shaf! ete one imported e@ontinvously bul +hene is only one egpeement Jn dhe pevolving L/e, only the pmtof the delivered goods is mode, no} the full L/c prt. + There one mony shipment ond eveny shipment has different L/e- + Pmtis acconding to invoice « + Pop shipping, bevolving L/< is used+ Red clause, Gineen elavse iS & vaniation of beneficiony + Gpeen L/e meons confi'emation that we obtained it We con mortgage this L/¢ in bank and lean money dened But ned L/e doesnt ensune foanas ris SOnss not fully confinmed « + TRRevocable + Green L/e Confirm * Shde-8?% * Documents ane dishonouned 2 * SWIFT? * His anumben - ° When weopen o bank account, the bank gives vs two Dumbens ® Account numben ® Rovten number On be Oe J n basis of these, Meney can be eneditod trom anoundthe World inthe accounl . Osea tag CO CASA MRC CAMA C MSEC MEL SeSeeRESEeCCESeEseccESSeeUROMEEEEEEREEESSEEEESIEEEEFUTURE O FEE E OSES ESESCEEEEE * Ques? How wes the dollanfnom Bonglodesh bank hobbed ? + Swift is an injennotional code - Swi} allows ronsocton-from one bank to oncthen benk, one accounl to onothen, by genenating Pnoncial meseage * Routing numbenz combines two bank fon transachon between them . * W2 cent withdraw money with -thig nemben , Only odd - Part-4 ° Voold foot by 20152 "The highest pencentoge is of Grenens) Congo - But thene one alots of old chips . “Slebel shipbuilding: * To inc reese trade, we con © Anerecse the nov of ships @ « lIenoth of ship /size* Shipbuilding peguinement for fleet age! * The peplocementof ships is done according 4 age of ships + * The ships of age > 25 yeang one Peplacedtins} * Regionol shipbulding scope is the highest. * Toble-12 * Qvest Khotone reasons for not ineneasing pale of ship- building in bangladesh ? Shipping ond Shipb: cycle? Shipping and Shipbuilding eyale? + Pluetuating eycle * Shipbuilding eyelet (Non-enedit evele) * Inthe flat region, the business may be less. Aften thet it pises veny high and tron agin falls to flat. * Damand of tha vessel ic important for building * Floune-38_ Cenedit-driven eyeje) + Shipbuilding business js different fon inves} ng own money and investment by faking loon. EEE EE EE EEE EE EC Cr ™™™rrr——————C=—Srs—C r=SAAT + Trough —> Pack = Exponsion (= aia 4) SertrCr strtrt—“ ;§wrwrmLmL less-thon the previous +novgh. Because economy is Pising and populetion is Rising. Sodemand INepeases * For credit -dniven economy, thena ic ee cycle colled Credit Deiven Boom « for this. the pise is shonp bu} the fol) je also shenp+ This Pall is called Depression * Depression is +he result fon cnodit driven boom - * Depression ic Abnormally pise and Abnormally fall - “Guest Explain Shipbuilding cycle . * Does 2 Whotistne Stote of Bangladesh in shipping ? > We wenttonacch Se in shipping .25+lo-2} Nuzib cin “eve Ponties “be shipbuilding © * Ownen * Builden ( shipyood) ¢ hemleoen (Who panic the skip ord aanns income) “Ansurance compony ( considering fine ond aceidents . All the congo ie Mon and Matenial ane unden insuronce) * flog stote (under +e coumtpy which the ‘sh ip is pegistened) Port stote (The pont whene the ship voyages from and the pont whene it peochas » We need on Iniiol port state povleto nea’ ston fon lag Stote) . * IMO and nelated pegulatny bodies (The one who ‘inspeels ifthe low is maintoined on not) *Clossiheohon society (they check the design -and construction inthe concern of stability ) WERE RETUEKEERREREREREEERBESEEEECEECECOUCEC ER ES CI* Financiol instilvtions (The party whe laans the shipyard) * Elements of Ship's Ife cyde cost? + Ques® Whetone the elements af ships inihal cost “a = = = 2 = > > = > = => = = = + Openoting cos é * Menning, fuelling and related cost + The cost behind voyoge of ship + Docking, Hull supvey- Cleon. Sond blashng . pepain- * Solvoge volve? + The money eaened by celing the ship allen Using afew yeong * Slide-) & oF paying Pte passensenThe Inlennel costs ane decided by Ship ownen on Shipping Compony * Pctepnel costs one not commoliod by them eiiwaaticl * Polrticol, wan , sinike + Stalvlopy peovinemen! & + Local low + Low of land ide ~I3% + Long delivery $ * To do multiple tasks al once * Also. nok-to hompen other works . "To mointain consistency of worklood + Slide - 142 + Manine dnansportotion monketé * Analysic of amount of eango- Nen - fane OPES PLPEOPEFCHPFECHHEHSCSELELERTTRTRLRARLAUARRARSASDFVSOSSVSSSSOSOD DETTE SSOSSESSEOSOSESSSSSCSC SEES SEESEEE: * Building o ship i= the last option « 6 Shid * Commancial processes of the ship-owner oe new - building / New ship ocaviseton - * The mos+ cheap covnlny to build ships is China * Because Row motepiols ane available +hene as wellas machinenies . * Shide-i78 * Shipbuilding cost is higher in Bonglaesh dueto ¢ 4. Absence of Row moteniol ond linkage industries 2. The stratesie policy of the nahon28-102] Nozib sin * Shide-)g2 =—— * Shide-19 2 * Mochinery pencentage is never unden 5% . “The lionshore of a shipbuilding cost is Mochineny . * So, the scope ton saving money when building o ship 15 not ofoetor of bull but machinery - * The cost oP engine is highen than thotof bull: * Machinery selecton is veny important foe cost optimisation» © Slide- 20% * The price competitiveness depends ont (From shipyards view) A.Motlesial supply ( Naton-wise colevicled) 2: focilies (or individuol shipyond) 3. Exchonge rele (of money) 4. Sobsidy (from Govt.) * Foctons in sdléctng yond? (Prom ownep:-s view) 1. Physicol choroclerishes (Jocchon. conn shed, tonnoge) ying, capacity 2 Teehriico) capabilities (Use of dechnology for conste vetin » of ship) dg a wwe HODES POHTTTITATERULEELUEUAAARRERARAAAARSee EeEES ESE TEESE 2-Abilrly Jo assis) Financing (Owners only give 5-b% omounlal fing! So. shipyond should hove enough Finoneing capability to bvild 1) 3. Reference ( Previovs work dona by shipyard) “port + Expression of interest + Buyer gives shipyerd an intenes! of building o vessel ip 0 ceptoin novte with a centoin passengen copachy With avoyaQe-hme. Then the shipyard will send ownee EOL if they one willing to build i - * $0) FT is given by shipbuilding company to owners explaining the neavined time -Pocilities « * Owner gives Ownen’s pequinemen| ond requests Goi from shipyord / builden . * Invitoton > Did? * Giving Jender neavinement « * This is owen by buildlen Jo buyen* Slide-22 ¢ + Mhon No.of Vessel 7, the cost + -brownen , + Tnvitotion of bid is given from ownen to shipyard. The Skipyord then Lifills it aod petuens toownen . * Slide -992 Tips in Bidding? (Prom poirtof view of ownen’) * Slide - 252 * The Gool-lon Negotiotion is ‘Win-Win Silvotion'. * Use cordon? Uce of a modenotn fp ony discussion, * Slidk * Slide -27% + Controc! low (According +o covrrlny) * fort low: + Slide “288 + Not all ogneement one contnoct . Agreement ic undeas tending between two ponties . Agneoment can be both legal ond egel. But compect is olways legal - * Alt contracts ope ogneement - SHOES HHSHHSHLSHHHCTETRELTTERETILEVVAVVLVLALALLAR?FTO DADTRDFSGSSSESESSSESSOSESESES SEES ESE: * Contnoct types? 4. Fixed price? Normally prefernable 2. Cost plus fixedfee & » Owners cost + Owners choice prefenodle + Owner buys the metenial etc ondgives shipyond only the bvilding fee 1 spacification & + falnwor * Slide-29% «conditions ton o somnoct * s Considenohon (Price in lego! langvese) contnoct volve + offen ( Must include o complete propose!) * Froud ond cheating ane not same y \ Taking money Phonging the ondened ond punowey * matenial wilh cheap product* Conlnoet moybe + theohng * Fnoud *Duness ( Thneot wth Froud) ofl 2t Nozib sp * Comtnoct £ + Ageeements having legal coven ag?. Nn ag hee ment bel? two ponties to do something * Spodificotion? + Engineers decls with laala [afadcar, + Specihcotion is the chonactenistices. function on modenial of o product which is sold on bought : * Bide * The document given by shipyond - + Acceptonce® + Accephng on offer without condition * Waheneis a condtion, then'ds colled courlen Offon - ‘PEPE PE KFHEFEHHKHPESSSEHSSSS SSS TASRAAREARAARRAQ:~ aad : > 7 = = » ™ => a) = > =) * ro re POSSESS VSIVED + Slide-942 + Shiphiling eonhnacl + FP Wilden is nelioble. then dinect conlract can be done + High reliability of builden, 04-2 I Nuzib sin * Slide- 34% + Comnacton? Reloled -lo ship selling of as o middla man *Aulbeniles? Controls neg uletions + Insunence compenies? needed during consinuction ond during openehon + Shipbuiling contnoct + Lego! egneement yah NAS Slide- 352 4 Peincipol particulons, movie. cennying capacity, enew Gapacity, Fuel consumption , dechricol specihicotion FH cospies the bigger pont of the aontnact .2. The eslegnny of clossrheshon 3: The price-for building o ship « Paymant schedule is given with it The fine Pte speed is nat upto eeavined ‘The penolties ton excessive fyel con cumption [Sto te Terminction can be? moture * Prez fenminotion + Notvpal 2G: Mos timportont * Ques? Exploin-this 22 elements . * Slide - 972 BES Poo forma names * Buildens one benefited - + Considering inlenestof parties, Ship building contnocts ane 3 types - 4. Yend Friendly 2+ Buyer « 3. Agreed contnoct PaopKePeKPePeeeePOeF Pee) OOOST9TRRA|AEROARAEREEAl o foncignen comes to build o ship, which type will he choose) — > Bvyer-fniendly + Qvest What obout Govt —> Yond friendly + To promole countnyS growth - eX site 99 « Slide@-4o2 * Mope connected to shipping contpect + + foo: + We con either give the sellen money in th@in countay on Wecen seHie dhe deel inoun covntny while doing business with onothen counny * company * Fo8 shipping poinl ? * The product is pecdwed af the onigin: Afton thot » Ane shipping of thot product ie buyen’s naspansibility - * Noemally followed . * FOB destinction® * Buyer receives Jha procbet of his own countnys pont.* Th FOB, sellenonly gives ship's Treiabl nolo. Pyy- hey wont give Ihe por} chonges in FOB deslinglion. Butin crR, evenything Is given by selien * But in cep, Sellen doesn? bean insuhonce cost. F) it Qiven by buyen * Th CFP, the product is delivered only upto port But in SPT He product is delivened upto-the ppemises of buyen end the sellen beans the cost + Slide -422 + CAPs * kindof like cIf. * Highest cost of cupplien C + Cos 2 crp>epr >cIF >CFR >FOB ORPORP KP OHSS SSHHSHSSSOCHENSTESESE STEERER AARAE* Slide -492 + force Maj2ure t Selien not obligated * Slide -4q2 * The sellenis geting 30% payment ot keel Laying. That-s why Hs eolled. 'Supplien favoured Comnoct' * Slide~ 492 Been ype of contract is good omongst Yand friendly, one ond Agneed contnact? —— freed connect - tRonmally shipyands give buyer friendly comboct with ohope to nacena mone predvels nom the same Monhour shoud be dobined . + Prepane. budgel ? 41. Identity on estimele all cost "Dont considentne price on imlennet “ + Slide -56 & + Emplein the chor « + Side -53¢ * @PM/CPA = Critical Path Nethod /Pnalysis PEPE PEHSHPEFELHSEHSESSHESSTSTESTURLAATAAAARAARARA= “9 ad * = 7 = = = 2 = = 2 = = 2 = a = a = 2 = = 2 A a 2 > - » - » . ® » . » 7 It 2} Mozib sip + OT-018 * See A compulsony 8 Fill inthe bloks 1. Long duration Bp ship consinvetion . / Long durchon too ship svpply- 2. 4,399m , Sodonghot 3+ the sea, the trode, the trode. the niches, ‘the world 4+ Nomth west, panama canal, N2gellon 5+ £eonomy of seole G. Indenconnected land, Monitime tnonspo rt ¥. Spoin, Morocco + Seponetes country Gonnecls sen B- Pension gully gu ofomen 9. Dandenleez, Bosponovs fo Gah Is 410%, B2% 12+ 1Bo00 km 19+ Monitime enclaves14+ Unpockoaed/ Net pocked 15. Contnoct of alfeightment IG- Voyaae I7- temponony owher IS* Columbus, John Cobot, Vasco do gama, Pendinand Magellan 19- Reliability, Frequency, Specie level 20° breoch of contnoct * Slide + Shortening -the enrheol pothis Anolysis Expertness » * CPM shoplens the longest poth . * Slide -582 + Al) events ora connected by time ip shipbuilding . 387 6 stepts Be good nelwork diagram * Slide-Got * The chortis colled Tast List - POKOPPOOHCSHSHSSHSSSSSHSSSSRSASESTARLAATRSAAAARA:RTT TESTS ESET EESESESESESSELIELE IX sie 6 + Troe slack for a single event *Tolol _« & ¥ an overall project + Bewond poss? + Lorly ston! + Barly finish * find poss stonte from zeno - + Bockword pass? + Lote stant + Lote finish + Used in shipbuilding industoy + Slide-63? + O = event > = polh + Longest poth » B-£-H-I + The even} 5 con only be completed offen completing 2.9 Event 6 depends on 5 + But path 4 is shorten duets No 2.9 dependency « slide -65 ¢ + Month /dale / yeor* Stide-6e3 — » critical poh is he octivly in which most events one dopendent IX stige Jes ee heen 8 Which theony is used to onolysis CPM + Tofollow ¢pM, we need to considen * ‘A. Toc Everything 15 lined) 2) Minimize mulrtosk ing + Siide-6 + Slide- 6% to slide-75 = air * Side -76% * Purpose of Clossifeation society 2 Phovide technico! suggestions Op advise occonding +o low * Objective is to vonify stvchnol stmanath, imfegmity heliability ond function POPP POHSSHSSHSHSHSKSSKSHSSHSLSSSSSSSAESRAAASESAAAAERAE: : b Tm ~ with "Al cS fdllow Ihe some PUIe whie thein own dehned-lechnical-amula . mp. erie 15-4) -21 Muzib sip Pont -5 + Shde-lé Lightweight P Cango copocity V * Lightweigh should be minim um fon stobilily - + 98 isc) Strength Cope city stobility Comfort Speed Communicahon —> Ship to shone ship « ship + 3c needed ot sea: uu Ainchaft * 35490 considered for ship design* Lightweight rninimum, Copecty T but strength v . So, ict : mem design 3C and 98 one conflicting: Swe need ophmum desig * Not used in shipbuilding nowadays * Shde-32 * Nowodeys. Design spinel is used. * Ship design have meny vonioble ard solved by Numenical Hepotve process - * Design spinel slopls with GA * Cubic _copo cily? * Gross Tonnoge (1!) * Ney “ + Faplien, uri wos in of7 looo GT = Jooo x 100 cf T sIooo00 CFT will be-the shps volume + Slide-4¢ * Burdon gove economical aspect whef evens didn.) * Andnews odded me PPPPKEKCLEECLECEERERKRAELASASSSTALRTAAAAAARARRA LA?“Togger ts Spina} stogls with Mission Reavinement * Compuienizad spinal so no sjap is skipped * Every 8 houn - 1 doy * Find ovb-the cost of desion fon-the men-houp cost of Tk 75.00. Ansé Concept desian + Pacliminany + connoct + Detail = Toto] men hour, J. Tote) cost = Total mon -hour x 75.00 * Side -72 * Divided Mission neqvinement into 3 (From faggenls) = and = a = aay a) r° @Nission ® funchon + Slide-ge * Basic design & @ concept @ Pret mineny ® controct + Pers? How many drowings ches a design /constnuction of Congo ship needs 2 —— > 2000 -20.000 a* Shide-9% * Feosible ship * Values of Measunes of merit ¢ inp [| profit /los s + We peed soflwone for Optimization L MATLAB * Slide -me + New ships ane? 2QBefo Novelty 7570 WOll proven proctice J Thats why pelenence ship's ane taken fon desian PPK HEPPE HEFCE HEPEEEERERAEAEERRESTVTRAARAATARAAAAAA13-Way Mvzib sin © of aor 3 w% Slide -122 + Caleulokon should begin with Operating /Rueing cost + We con have the capability of inital cost but we may not have openoting cost + Fiesteost / Inihiol cost * Reovired role of ncturn is Coe + Tneome is Net income + "REP = Requined freight role = Minimum pete to avoid loss + ues Drew chon} and enploin + Yield = Profit: pencemage nelvan + F opencting cost known, then we con use - @ Npv @ rer © yield + Soma desiah option only become economically advantageous on the long pen . + Longivity Paliabilily f Vey Important ofher thon inthal cost Comfon++ BS and 3C con ensue no. oc advertages Over the initial cost Initial shipeost® + Finst point is desian criteria Operotional, * Quest On whet basis Is 0 ships, Ie considered? > A ship has tuo pant: ® Holl @Nochineny So. ship’s life is dependent on Machineny - So, engines Ife is considered -the ships Jie - When the machine/ engine becomes Non-pepeinobie, this scraped - *Noomally a ships life is considened 20 yeens * Speed —> Power poavinement > Mechinony pag uinoment + Voyeae effects both cost and profit + P) shipyord’s copacily is meosuned by two ponometons? © Tonnage of steel work / Wonk -lood copocrty @ Size copocity (Thorne maybe infrostruchne limitation) LOLFLEPCEPFFECCLHEECLEKLEKSEERESETERTAEEAAAAEEER EETOOTS SESS SSHASIACSEPSCSESSESSEPSSELSELLEESL ES! * Time ond cost intennelated * Before Tonden porticipotion, a *Bid-No Bid* Meshing is done * Side-I58 * Bottom up ® + Detoiled caleulehon * Top-down 2 + Coleuloh on from top monagement * Rough colculeton * Slide-les * Ponomednic 2 + Mosily used now + Nixtune of top down ond boliom up * Mid-Jonmé + port-38 L/¢ reloled sides, Types of Le slide-l2.9 x Slide - 13.14/15. 17.4 * port -4 § AN * 15 monks Fill inthe gaps Is u writen30-41-21 Mozib ap Bunton 1976 en + We need Budget fon everything « * Dedicated yesse} g * Conny only cango op oil * Oil tonken * When w2 think of novle, uo must think type of vesse) . We need ty think 4; Ke thoi fo ann maximum money - Because i ic a freight Zenning vaseel ee eee LS See “Grenes are eavipped on ship fon easy Gng0 hordling . It 1s tin pomtont for cango capacity * for Congo aveilabilFly, (ro of vesse] +Vvesse) size) is Considened . * ING is hozandovs so mony ports don-? allow i. This 1S -Fenminal nestnichon - Physical nestnichon is duedo size of chip - ZO + Thaoughpu) » 1Saspere = Costs thot ape neoded evon when ship is idIk a a o A a 2 ¢ C A ¢ ¢ ¢ 6 ‘eepreRPrPVeRNP rrr rTe re rrr eC CC ected* Broken fone * "Hhen thene one mubliple pouses on journey, then somecne mey Not get to-the last destination» $0, “tha amo unt OF fone will be less . ! povte Stoppoge No of fnips Congo-type, Potential « > 4 i 1 Components of Load elon t Avg - 60.999 poyload on loaded voyages Aug. miles staomed with x Max: congo payload sai Total mijes sJecmed * Derivotion of Annvel Cashflow 2 ee * SD = Seadoy 7 o . ° ” ” > J > » 2 . o > ° 6 > 2 ® ° e ° ° o a 2 a e e ° ° ° o ® o » o 2 » PD = Port dayPD may ba given waiting & bemining time in quoston + * Acoma predictable whan RTPA known * RIPA . Usoble dey SD+PD * Seofiel 2 Fuel consumed doning epvising Hime . + Propulsion fual + Aunitiony ol : CEM’ power x sie x24 /10% + Auxiliony Rel (if ony) ~ Ship's fual / J dons umpton doy gpom -lo-fonne + When Main engine connectedin two fines by connectedto Dynamometen and shalt daive + So tone euriliony angine is nol needed . 2 When electnicity is geneneted by ships engine, how does lightbulb wonks? — > By batteoy . Example § Hybrid ean aa: BQQQ POPOHPHOHPHOPPHELOPOPESSSHSCSSC SETS CARKEQRRRREGU eFC SIFU OUTTA TATA ATA + FeRr = fool Por Round Tnip = Sealel SD + pont fre! x PD ners, — ~ Payload’ * Maximum cargo taking copabiltly fon design congo dneff * Ne} tonnege ond gross tonnage ane volume. Voleme can be Filed up either by spece on weight Mon. poylood = * Port cost por annum? + Wo SP eolls = No.of t3mes of going fo thot pont + As Nettonnoge (Nt) connected to ship design? —> Te give port cherge. NT ond GT is used only oxi + UpFeop cost? Paint fon visibl2 floke * Costs to Keep -tho ship Hp -top tupte (111) is Operating sos -Mi) Trihol cos) +R = opitol necoveny cost * FP (In)? os eR F 1 p= prineipa’ cA £ - Ba Pu: 4 worth + We con calevjole unifypm cash-tjow from here + Finest cost =fulune volve * Disposol volve = Tenminol volve Fe P(e cas £ _ P (He? Po pT (eS | Compoundin 9 Amount Facton . ge ee os Puss die? * (4) Present wooth toctn PPPPPRPEKPCKPECHEPSESRSERTSESTEARE RAR KRARRARRRKRARKREEUke eee hehe ESSSEEEL : SPW E = (ete (ny P (He)? | v Series present worth focton gee ee Po (Hyp -t 1-(Hry? v . er- Copitol Recovery focton aoe eee | oe ee e oPw >4 F (te)? -) er <4 1 Sinking Fund focton ‘ FP (He)? SCA = — = = . ol A 5 f: sens oe J _—. .. jy CR-SF = aoe I= Giay> > 1=(Ne)” oe ee (amy? (aryl (Hey? -l242 Ophmum Ship sizet * Graphic abovtthe size of vessel. + Pues? How you decide about length of vesse!? — considering commencial value not geognay hicel- Describe +o graph + Size is indiceting displecem ont + We need RER for income * AS size D Expendine | but not lineon - Aten some-me the cunve becoms straight This graph indicetes 4ho} often some hme - with dzepertonne expenditure reduces and becomes ponalle) oven time which means no benefit ofter some time * PB probit > ep pooft. cD profit max+ from taxing line faom-tnene we con find ovt the size- ~~ BWR ESS POPPPPPPPFEPSPPPPPPERESCSSSARAERARRQRRQSVO VSSSSSSSSSSFHSSHSSSSSSSSESCOESCSSSESESSSSSeet * Income line 0”D* + Annuol cumve ic Pondovt by multiplying the ‘etal tonne with per tonne cost + When congo hold pemeins pantol empty. the cD’ prott is net gained op unused capacity. “AB is monimum proht. Go the line from this is opheum size * Manimum income indicotes manimum possible income Jue 40 availebility of cango . Goeecten size doesn’t ensune Profit always * Oplimol ship speed: page 98 (Buxton 19%6)8 . High frequency of sepvice 2 + Taking noved trips treaventty * Highiotenest nole incneccee risk Lecton. We can Smoller +he ship size ond increase No. of vesse]Fig 253 Optimum Ship speed 3 Page 29 (Burcton)é + The omount ofmoney -fon propulsion machinen y depends on speed. + Speed cost p None of them one + Lowes} level of speed ophi mum Highesk oa 4 4 + Wa con get income lipe from f —=> Annvel cost node of tonne ne + Moni um profit —>OpHmum speed v Find out annvol fuel cost FR & Aveiloble cang0 —> Income Find man Gop be}? these tun graphs Sfe & engine power —» feel cost Explain How you can find out Optimum speedof vesse/? POPP HPP OSCECHKOSHPPPSHSSSSSSTSEAT REVEAL ERHARDTREE SESS S ES EE TESST ETTTELELE 0719-2) | Mozib sin * Pom + Voyae fom Now onians “lo Rollerdom * Income - Soles ~ CosT JV Froh} fon ship tuo journeys 2 © Bellas! VE +o New Opleang @ Looded New Opleone to Rollendam * High viscosity fue) & Slow speed engine nun by crude oi] 16 tonnec diecel 1) for genenoton + Can go ® + Shipping Agency never sufiers joss + Assume 1€=$1h-HD * Costs + HF = High Viscous ve] * Bunkering time > Reavined time fon oil hel Fill-upSoluton® * Time + Oviwond in ballast 4450nm @ ISS Knots 4450 287.09 = LS e906 eH ladays 15-5 ame aia : + Looding Now Opjeans = 22022 7000 -4 Bunvening = 0-5 > Homewerd Jooded 4797 hin Jes @ 14-5 jenols + Waiting for ben th = )-5 * discharging Rottendam . _28000 Aooe = Tofal voyage - 38:38 & 39 days OPPO PPPHPPELOPPERES ETS TIAL KE AAA QQQQggqggaggasa} SEES ESSEOECKCEESSASSDSSESEUE VPSSSESELELEEE LESS: * Bunker 3 sHVE g 32x (1249-8) = v Seadays * Seadey 2 Pisin engine 4 Geneneton Poni 2 Only Genenaton * Doe 39x * Pont Di sbunsaments? "UK port & Pont dues (20099 x1-9) = 26000 Eto $ * New Orleens 2 + Honboun dues = Sy000 * Cargo chonaes = 3x 23000 - BAco0 * Miseblioneous = |D000 * Rotendam 2 Harbour aves = 50000 Congo changes -0 ~ M ‘se8lloneove » Ioo00 “. Total Poel Disbuesmend ~ 239090+ Other disbupsement® SX nano mey b@ vonious cunpencies. So, we need to be conafy) while eolevlatng * Running cos! = £5000 x39XxI-3 - rGoo00 HVE @4300/tonna - 825°6x 900 = 247680 * DO @p50c/enne = &B-Sx500 = 29250 * Brokerages commiPion Site = 28000x40x Sy, = 56000 Total otner dishrrsoment 532930 Total Disbursement = 2300004592930 = 322930 Freight = 28000% 40 Sunplis/shomtage = PEPPPPPPLPLELEL ERE LLLLLLL LV AAAAAAAAARANAAASTeese ee eee T SITU TTA Mid tenm? 4. Undanstonding. beneficiory 2. we 4 Revolving 5. Contract /Drowing 3. 9+ Ship bneoting industny Demond T +han produchon. So the p2ss demand isimportont. So- Consumphon > Produchon 13- Bote production 25%g Consumed { 4 ¢roreton production <> enone ton consumption 05 ¥ « Faom shipping ds 0-5 & trom shipping u_—______. So, ultimelely consumption > produchen . +The nest 50% 19 from Other Senaps, 14+ buyer 15+ Obligations on terms & conditions16. Coprien , loaded v Confoinening the cange even before Jooding on ship Sothatthe in change eon} seethem . 17+ Export, cannien , port of desknahon 18+ Program fvolvehon and R 19: least/ Minimum time /Leost loot Slack 20+ Earliest foish ime Proyect me > Crikcol Hme > u& + Toto! floot on slack SOPPPPPPPEPEP PPE LETS ETO OSE ROAR QKAQQQQArR— ~~ = = ibe — ~ = =~ ms ets Example - 22 + PW-12%-8 * Two model $ Heavy duly =pw-p-P Stondend * Ophon-4 2 * Present worth: 49.000 ° Opkon-22 * Present worth = 26000 + 26000% Gee = 26000 4 JP 012 n=8 = £36500 “ Ophen -2 batten, (ans) (Onsd + Mon- Allowable peplacoble costs sie cose . = 2 (9? pw og (Aten 8 yeans) (Itn)” -0°404 26000 X 0°404X< 40,000 >A 34.660 + 0n8 Aovve = 2600044 > % = 14000 —> Pnesen} volue Plu volue often 8 yens = % (Hn)? = 34669-4g Ans)+ Novel - New design nol available bene + P=120000 F = 180 000 FE . : £2 (it > b=83 E (146) > P= 27% * The pode is Jowen then bonk node good offer « * Given, Brtno cost = £ 300,000 Fuel save pen day = 4-fnne 4 €0St per tonne = 200 Seadoys per yean - 299 days Ship Ite- 16 yean Infenes} on etna copite) = I% Sortis a IPP PPP PE PPELEPELEEEEETTLLLIAAAAAAAAAAAARRAR* So, ve con sove 2 4 x 230Xx 200 = £46000 pen yean A pcr 46000 ) A= Annvel cost/Pnohy 300000 n-le Pe Noe " P=A {luo P(H? = 33944). 44 —» sovings es ae = gd ond oe > = — = = a9 am = me) oa = 3 = Phenehy > Peost . (Ans) Yes beceuse Py >Pe, tne invastmamb ie good . + Whot i othe men-note of intonash upto which, your arguement nemeins volid 7 —_ P= [30% 7P = Boo000 A = 46000 D2ig* So,upto intenest pole 192%, -the ap guementis valid * Exomple - 58 * Given, deoduseig h-+ = 2000004ynne Buying cost = 30000000 (Cp) om Caprtal cost Hin. profit wooted by ownen -lo% on Bank rate Month = I1-5 month on SeaDay Annual punning costs 2M = 2000000 thme = 15 year 4 200000 XX X15 =Annuel income \ Should be eqvel-to minimym Polk +o avoid loss gven we ore not getting ony profit > H=43-%G *S0, the asking pica shovld be gheeten then » which Will be the prof} percentage PPPPPPPPPPPPELELELEETTETT TL AAA AAAAAAAARAAAARBUTT G OSES OSES SESS ESIIIIIILEL + Freight acta per tonne pen raonlh = 2 * dopital change convented 4 Annval, Spe As . Pp ~ I=? : p =l0% nels = 013147 + X= Minimum freight nale pertonne per year: * Annual punning cost = 2000000 4 eapitel cost = 9945000 “. Totel = §94500 W. 2000 d00x X= 5945002 Mos 29° 725 pound /yeer Aon e ee pound /monih Hon ie = 2:58 pound AH break seven condition. nelunn should be equal +o coct when. 1 Income - Soles - Cos} =0 oe eter > Soles = Cost+ TP penmeabitily factor given. thon mulhply tt with deadweig hf and use thot - i4-19-9| Moztb sip * Example-6 + o Given, 2 Capital cos! = £29M Running eos! = 2M Time charter, n= I5 Freight note = E250 -bnne pen month Openatonel time = IIS month /yeen 2 Innual income = 2.5 2000008X 15” = 57500008 “i wetCash inflow + Income - Running cost = 3750000 POPPPPPPPPEPPEFRE CETTE L LL LK AAAAAAQggggagnurarryeee ESSEC EESCEE ECCS ESET ETIEE: Now, CR= CR= > > —_*® L.A I-Gary? pe 3750000 “ 29000000 = 0129 p= 0129 ~ 0129 (in) P 40129(In)y =0129 D> 0429 = O129-P > P= 00% on O-G%e we (t4 x)". Example 73 * Given. * But here, cost ee 2 —P }-(tey? o'} = ————_- o 3/5 1- (Hoy? Now, eR: A i 375 > P oR F GIaIs = 285)7)10-27 n =Syean Freight mole - £ 9 per tonne di pen month * Rupning cost = Crew + oi] -fiel is given separately PW = P 1 Fo Tapp 7 ey? The amount showh jn the table is j thousand - PHeoms of OPOOHPEHOPEPP HERE EEESELEKE EEE AAAARAAAAAAAARAAYeee CPSC EC CESK EGET TELL . h Plow Treome - Pupendilure v Crew cock + other cost Yon Shipeost | Chow Cost | Ohen cost Dee = |gZ000 2582 2288 0°75) | 20% ; 992 0683 | 178! wy ae ct [coo ef one | cee ae 413000 rn |1g000 lowes | 715 Total | “S000 | ~ 4974 [20° 2700 | 2426 | a . Cashflow = 4140 - (7oot Goo) “NPY = ~£420/000 “ PWoe (ny; Der - Craw cos4 = = 2840 H = yearn 5 P=lo4. cash Tow x PW joy Riging lo% pen yearflow x pw lode Now When, NPV= 0, Def at G year = 7345+420 = 7765 7765000 0'°S69 = £13743363 Vv Resell /Tepminal/ Salvage Valve Cashtlow = Annvol income = 4x 40000 x 340 = 186 00000 (Mey increcse in enom yeanly + Gpew cos} increases ]o% per annum Other u u B87 ou u b) Break-even discount pole = TRR when npy 29 DORPPEP EP PHOS HPSERESETETALUAAAAAAAAAAAAAAAALBOBRRRADAASRESARRESIER EARS ESSER SS * When, Pw lov, NPV = 14244957 * Led PW i270 Then + Cosh flow Pui fore Pw 12% | MP¥pper lye ~ 80000000 4 { 1 = 3 0000000 10700000 090909) | O*gg28 9552960 Tod sgo00 | 0°826446 | o-7971 | 1e7se129-8 927989 -8 10152040 94991655" Igo00090 O'751BIS | OT7HT 9 839903.2 | 0' 683013 0' 62092} 0: 564474 1 0'°6355 i | 0° 5674 0° 5066 O- NPV, ao NPV NPV9 OOF = 2070 7225206 ‘86 625325848 5389826 505 50 GG000 NPY 12%* Enomple-o? + Arovel income = {000% ip = £ Moco * Annval expense = f 955000 *Arnvel cashtiow= £(|7ocooo - 355000) = [845000 [cash inf iow] +Casbh-42 - = SPW = ilk ic R= B% b nels = 8°56 Pw ofcash flow = 8:56 x 845000 = 7233000 Pw of Ship cost = 1 x Gooo000 [ n-0 foo spr] = 60200000 Nev of investment = 7233000 —~600000 = 1233000 SPPPE PEP PFEP FETE ERE CSET ERE EARLARQRARAAAQARRYR*Case-22 + Joo taka buy 7 10025 is le dhe stnaight Use S yearn & Sell 25 take hne Jepnicicton pen yoan of that dem - * Book valve, Retail value * Depriciehon is the money velve of oun ifem * sep- Pr-s P= Phesent veke S= Solvoge valve N= yean * 2er0 nesidvel volue co no Salvage on tenmino| velug 6-0 L. SLD. @202000-0 Ey = £400: 000 —> we don-| need to give this omourd of tex oy i145 onnvel otjowence of depniciation . es NPY 15 =-f1%, 009 $0 Loss+ Case 09% * Declining bolance? 25% neduetion per yeon + wWeilten down volue /book volue Single Ship op New entry L J bought only New to industry Single ship *Toxeble income zenothets why fonis zeno Because income has do exceed dep hiciat on -Er-ton considering condition of single ship on new erin y nel * Comeau PR(I-R) + DI year = 5 8 Depriciation Allowance = 4225006 Cumulotive dep: = 4576172 5 AS exceeds +he Allowance, weneed to give tan: PPPP PEPE PEPE PEPE ETE EET TELAUVAAAAAAAAAAAAAAASSPBBIVHSs Sees eee eSSESHSSESSCSESCSSTESSSSESEGSSSEEE! 4576172 ~ 4225000 _ B51172 < 845000 > So we'll have Jess Income 4932)29 = 4226000 [yean-6] 707129, - Tonable ineome = 845000 - 707129 = 13797) "Yeon 7% ——_ 5199097 ~ 84 5000x5 ~ 707129 ee eee 266968 *Case-4: + Toneble income = - 665000 —> from othen proft » Dep. Aliowonee is taken ot tne some che yean .*Case-5® + Free dep 8 Dep: con be conned ot any Hme . GM ~ (8:4547) = 85 + Case-¢z 470000 + 194 S000 aa 6646000 "Ps: Companison bel case-9 L4 S&C PREPCPPCTCLEPKKLUELTEKETVIV TAAL AAAAAARARRMRQAQQARPPO ESO DSOSOSTEGC HOSS ECSECCECEECCECESCESCESCSCESCES: D224 Taal ewe : Example -lo® + Ship leogth. Lap = 2jom "Breadth -39.2m “Oral = 19m "% ok + Ly =13200 tonne " Weightof ten + Structyne = 2300 + Voyage distonce - 2000 mules + Ship speed -IS Knol s + Conge dicchang.a/hovr =loso conventional + Congo dischonge/hour = 2600 sel funloadin § sHeevy fuel ot/ doy -do tonne + dies oil/day =1-2 tonne + Additional dieseloil per day duning dischenge - 5 tonne * Other non cenge dwt = 400 tonne + Off hine days =15 days + Addition al Joys ovkof senvic of Senvice for copf unloading +3days + Ship cost = 2000, 000.000 + Self unloading gear sot “P 054 = 8 000.0900 : On "Pale ofnetunn < loroog,* Ships life -19 deys + Copitol pecovenyfocton = 0-191479717 lene * Additonel engincening cost fan self = 550,000 " Heovy fuel /tonne - doo * Diese o!/ tonne - 5000 * Pons ehonge/noundtn'ip - 2200a) + €en90 handling chena® pentonne -Jo0 Converrhonal | solf-unloeding Displecement 72089: 92 72089. 92 LWT 1320 (19200 42800) - 15500 Summer DWT “| bse? 32 565g 9-92 » Yoyage details * Pound Imp sleeeming cays hal Ta Menevyring 4 4 if . Wet) 44.44 ed Caged, | 4 7 Diesal oi! 20:68 27 KFIETTPETKKPRLKKKKEKRTTERTTARRTRTTLVRAAAAAAAARRARARADSPIOPSSdSSd HDS SSDS S SEI Td UD EP ET ISITE AEEESCESSSE: [Dwt= 400-1444 4) - 5449848] __loading doys Ls 1S Joys fo dischenge nee wa deys /nound rip 17-99 15-95 Tote! el wt. including 20% nesenve S5g:l5 65 +86 Other non eengo DWT 4oo 400 Mestre payload Hnip Tetol nan sera? | O58" 1S 965 86 se Daysin senviea parennam NOPE) 350 [say Days in senvice Per annum 350 a7 - Pood Inip Cor go cenniod /onnum + Operating cost Crew costs Olhen doily punning TIGA0D 00 €GE000 000 82000000 =| 8% 000000 | a Mainfonence cost | 3640976948 | 1990 000 HVE | 361097694. 9 | 401904120 D.0 cost | 21000006 B064292' 2 [44625290 67 49795679. 0 Port chor gee Congo Handling Total Copital Tote! ennval cos # ri 17655924: 5 C044 98858-5 \651729 076, o BRED | 1964196575. 2 [peseaie-2 Tp 1990 265)DDADODADRE EERIE EEE EES Sp + Days to dischange ~ 1:74 —> fon quick unloading Round trips 347 Per annum - Tea 722-608 Heavy -hel olf cost high due ty diesel oi) - ipepease in omount of * Pomtchange increased due to inenease in No-of sips + we ora. Finally Finding the PPR here. pts Malh will be compulsory - | * Ship economies ¢ Cost estimoting 2 + Ka’ Ovens enperditune on odminisinatve cost * Prok+ mengin of ne shipyondt pabihmammncaachLLCl2h Py or) ka , 9M 54 GP 3S, The e054 formulas Should be neviewed by updated ovisile OF imlenvel (- 30%. 43%] * Lightship weigh! for corfestimohonsae * Methods estmoate thi + Grooss s}oe} weight = 1ogn biax net steal weg hr the omountot mon loss ti a Fig- 18-22 + Manhour increases with ship tye . + plate thickness 7 — Monhour pen tonne steel work v + Ag 18-10% Se + Steelweigh 7 per tonne cost V + Ship ocavisition cas}? (Al-tepnelive) ¢ ee ed we “Cost in’ shipping (defini ton) Crew complement’ norof crew on lnand PRK EKPKP ELL LESSEE SESSA EEY SY QHRAAKRRRARAAARRROOO C UOC e Eee SLL Dinect % Indirect | three impacts of shipbuilding Indoced * Voyage cost? Hight dues? NaVigotional light Eleetnicoal cost Hendling cost 2 Allo wonce for congo claims oceuns when handling con 99 With gneot core lechre -G * Skip Binoree * noneing iS the collection of money for investment » + Finencen te the people who gives money. DEavirty $ Ovnenship bought with money @ Devt g Loon @ Gront & SUT. KZYNT PE KAIOS, What Bom of arcing to use? * FRICT approach 2g +1221 Muzib sin 0 — 2 Se lets Given 1,8,D.5. Cg, Pe Find out tne weight of 2 @ Hull @ Machinery ® Favipment eost of f M Acavisihon cost * Shde- 30,931,382 ,35.36 * Type oF ship is Impomhond -fom i, Question 3 Le 185m J =12m B= 22m D= 16m CB -07% PE = I8500 12,3 coefReient - #0008080 009000099O0O OO HRRZHARAEAAHKREEAKARARKRAEZKZAAKREZRRIVOOVVED oD O ODOR REECE SESE E ESA IIISITISE SUSI! (OQ) D'Almeida? Wye ky Le. oX3, phd . “712 0220 2 00328 x 185! x 90° X16 = 5692195 v This 1s for Ms - (YD Mom, whot would be dne effect we used Migh -tensile steel insteod of MS ‘on weight? Cvdina etal? DI o°0282 [ Ipp - (Bt+o 850 +0157) | mee prosfereoray2# 2s] ran} a5) xavoeers x 1992) +450 08 3 5632\95_ ( zine x 7o0l598 tT) = 19-55 35%+ Propulsion Machineny weight * ¥2 Weeki. Pueg o~@ = 1 88x 18500 = 683:063 + Equipment weight? Ne = ty (Lop)? = 1263-28 = 61790 x (185x22 x16)" 2 [Prep = BHP ] Bup - 16x EP | [ v Considening she powen Joss P the shelting system 5 Almeida 3 Cudina P25! Compane the valves Prom thie duo tym rola. e@0e020e2020000800000€660€604664604064¢646¢466466 €06€8& @ &&GGG48G& & HIDODD AADADAADIEIAI IT EEE * Ship ceauisition & (Hull steel cost) k Che ki x We ? ey k? 0°8837 -0°2336 = 2-666 x 5632:195 xO 78 rl Wy = 5357. 497 3 foes MSs Ty * (Equip ment cost) £ + (Machinery cost) * Cre Ry. Prep? O°cA7 = 12507 x 12500 = 7211294 -935 * Side_ Poot - * FRICT oppneach * Factons 40 eonsiden + Unvead ton depriciation’ Avoiling ton by leasing * Poteshal business nisk * Byers monket 2 Shipyord-s own find ; t | | ) + Excess deb} Financing from cavity / joan } + Longe capping powen? — JeR> coe + Hybrid & loon + Equity * Bonds B47" + trons fennable y Needs 4p be given coupon. money to Londhol deh fd + tien Ys. Montgage? + Lien? FO" GUT (mMT’ . pesot is submitted ' i) + Nontgage? Only by capital money on MIS veHle * We only need fo .cubmi4 popen att tno asset, + We con Use the osset Which was monty aged bu+ not sell +. ————————eS SaaS aPSSS HPSS S SSS SSSA AARRAARAAAAARAAAAARAARARAAMLEUHOEDEdde OOO D DDE LETC FREES TEST SESS ETL * Pues: Die bet? Jeon dy Monigage * Gronts font -7 * Bill of booing + Bits of Lading Act. 1856 + Ye done by importer * Document fon shipping of something * BOL 15 Used fon insUnence * BOL is 05 some as ascot * Hite of tne goods Z Price f+tre goods * Bilin the blenke * forraulo's of Math04 -o}-21 Mezib so 2 LEK conni2n of fongth Jim. bPescth 2m. depth 15m. drot} jam hos the ep of 0-75. He hur stroke Diesel engine bhd reavinement in 18000, caleuiale, WD Weight of bull. machmany, eovip mont using D/Almetla fon mulebon + Answent ® Hull weight ® wy «Ky uh? BM. ph4 he ; uss” = 010328 x (185) x(21) * = 5900: 39 ve ieshinen eet ee OG > 7eBx 18900 = 67192 ke ® Fovripment weight ,Wwe = ki- (LxBxD) * 04g = G1790 (185% 2115) = Uj97-7 OPP RPE CHEE PELE CELESTE KCTET ATL ATESRARAARRRAACALSE= =f) " "> = "> ~~ "> ad "= J > "> > > > > > > > = 2 > at} “ a 2 2 - a a) A“ a 2 2 D o a > a » » ull Gi) Efechof using Kah tensile steel ‘instood of NS fon bull (ND Costof hu). mechineny ond eavipment (MY) Ship ocavisition cost while special eavipment is Ive of the machining cost ond shipyard mengin tc JO% Answen 1 3G ; ost] bn = (1 fig) { ore [tr (81? aso 4008 TNs 7} 459 f x { ygo Sf (c0~° a a ee > F, (WD Hull sheet cost, CH = Ki Ws"? oy ha -0°29.%, 75 Jf Hullgteel cosd writen, then dinde with It)Mackinen y cost, Cy = Kis Puce’? o'6a7 = 12507x 18000 = 708 4685.94 fovipmend cost, Ce = Ry We Ke 09935 = 1966 x 197-7 = $94A5135+071 (wo Ship acquisition cost, = 55]4.69 £ 7084 58574 4+8945)95-071 4 19%x70 8458574 + love x 7084585-74 = 25-16 x 106 PETTHKKHKKLKKLKKKKKKKLKTTTETVRLAAAAAAAAAARACRRDllr er Der 8% (533 —_ | (500°) | 1g125 [9196 ian | SVUVV Yr! dolian +rovsend } Break even discount nale = TAR (0)| (020) | pe oe (749: ole 751 | "36 1890 9238 0 03) & soles 1280 | >p lols} 909)? 9375-75 2445.73 5 7591-08 6785" 34 6049-84 | = | 12600 NPV2 = 836-93oP Nev. 2 S@onepy - Zeost (ce + Fsemop valve) fs ae Oe) ce 5s Sinpy, = & (13125) + (20092) at 6 yeons ih 5 ol +s [1500+ (ito'} int 5 ' - 5000C - g { 15004 a 1 0-08)'$ 50000 it ° seve F Of no " n = 5 Chy- 2 CF nso no a ee ? ={o% + Cen (1401) Hehe (HON oS v 7? 1 ey { 8% 4 Co, (It0°08) + Shoe (140°98)4 g . _0 : , - | Ces +Chey (Hoy4 Coe (40) S - 50000 | J FEPPTPEKKEKEKKHCKETKLTTLALATARAAARAAAAHRAAARAARARDPPP OPOOOSO OSCE EETESIESESIESESELEEEEE "ev af: of Took | Pep. | Toxebe | Tanah | cr | pw pcr ale [vos Atiowenee| inane | 30°76 Ce ee iricone| 4427 — ol - | Py | CS 7 + | Yeon (2ateo-1600 | ! 4 [3400 6400 | Jeo [B00 320, 2080 0926 1926 [2400 | \e | | | | om | os = 1 Ao 2 2400 [698 “i280 120 gag 195201857 1672.86 jz 5120 | 3 | gd00 | 4096 | 1024 | 1376 550 Ig50 0'794—:14.69 4 240d 3218 BIF2 15808 EQ | 1768 0795 1299 5 2400 6x44 655-96 174464 Gog ‘i702 (o-e8 | us7 6 2400 9697-16 524-28 187571 750 1650 | Og Iolo 7 | 2400 1677-73 419-43 1980356 792 = 1608 | 054 g68 | & 2400 149.19 335-54 2064-45 gag 1574 O54 | BSH 9 7400 1079-76 268-43 213).56 253 1547 | o5 | 774 2726 | 046 1254 | Tol “g59-0) 214-15 4185-24 lo dea 29 ol HIBS 24 ea fe ; 4400, a 4309 6a | | | \ lat Total Joep: Allowance = se yeor pes n SM ~ 2570 of BM poe secoumoee \ - 10 = 600,000 00 the mats with $IM as’ $24 + Residual of Vessel atten 6 y2ans = 4og of inrhal valve D.A = 25% - SAEPHAHSHSHHHFHEHKHSSCHSRHSSAARRSARAAHRARRARRARRRARRRRAR