Tramp and Liner Shipping

Oleh
Adriel Eldorus
04211740000051

Dosen Pengampu
Raja Oloan Saut Gurning, S.T., M.Sc., Ph.D

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INTRODUCTION

Shipping Process
◦ Shipping process is the service of
transporting goods with some
transportation vessels, which can
be truck, ship, or airplane. In this
case we use ship as the main
transportation. There are 2 ways in
general do divide shipping by sea
which is liner services and tramp
services. Each shipping process had
their own way to deliver goods, like
mutli transportation by rail and sea
container. In this presentation we
will learn about Tramp Shipping
and Liner Shipping and what makes
them different to each other.
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TRAMP SHIPPING INTRODUCTION

Tramp Shipping
Tramp Shipping continue to booming at the
end of 1800s. The triggger for this even can be
concluded because of Insdustrialization in
Western Country, that increasing many goods
and industrial products to be processed in no
time. Contrast to this phenomenom shipping
industry also needed more ship to
accommodate their goods without fixed
schedule like many commercial shipping at
that time. So the tramp shipping come in to
accommodate this goods (Stopford 1997,
p.122)

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TRAMP SHIPPING INTRODUCTION

Tramp Shipping History

Tramp shipping in 19th century is a good
breakthrough in shipping industry, they filled the
gaps in shipping system that carrying bulk goods and
many general cargoes that not being catered for liner
services. This can be seen in table right to us as
shown how many tramp companies is growing in
Britain for 30 years time period (Stopford 1997,
p.32).
Advantages (+) (Stopford 1997)

Steamship • More Cargoes Spaces

Technology • Speed & Flexibility

Cable System
• No Waiting to fixing
in Baltic
Cargoes
Exchange
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TRAMP SHIPPING INTRODUCTION

Tramp Shipping History

In tramp shipping there is a 3
Periods during 19th century that
can be observe through this :
First is Sailing era in 1741-1869
which ship still using sails as their
main system for moving.
Second is Steamships era 1860-
1945 which ship being upgraded
with more technology and in size
too.
Third is Bulk Era when shipping is
increasing in size especially cargo
bulk which can hold more goods
that can be carried in bulk
conditions.

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TRAMP SHIPPING INTRODUCTION

Tramp Shipping - Transport Route

In trap shipping every commodity usually
comes in bulk cargo (Grain, Coal, Iron Ore,
Crude Oil). In the map right to the next is a real
examples how this tramp shipping routes
shapes the sea-trades all over the world. If we
take a look at the chart of bulk cargos it has a
higher demand for shipping and also need more
tonnages because bulk cargo is carried in high
density/quantities.

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TRAMP SHIPPING INTRODUCTION

Tramp Shipping – Economic View

In tramp shipping, more goods that can be
carried in 1 voyage will lower the cost/tonnes
for cargo. But in different situation we need to
understand that by tramp shipping it is more
risky to assume this goods will be last for
forever, there is no real factor to calculate the
demand and supply for tramp shipping.
We need to calculate for the long investment in
tramp shipping to gain the maximum profits for
each voyage/sail.

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LINER SHIPPING INTRODUCTION

Liner Shipping

In the late 1960 many liner companies are

Tween Deck/Multi-Deck Structure
using multi-deck vessels which known as http://marinership.com/products/tween-decks-grain-bulkhead-systems/
Cargo Liners, a flexible ship that can
handling their cargo independently. In liner
shipping mostly good is mixed between
many manufactures/clients. The main goal
for liner ship is to have as many goods in
their cargo haul. To accommodate this the
development for more sophisticated cargo is
involved, like vegetable oil/refrigerated
goods cargos.
The development from liner shipping is
quite high in shipping industries, as we can
see in graphic to the right:

Liner Shipping Development

(Stopford 1997) 8
LINER SHIPPING INTRODUCTION

Liner Shipping – Container Era

Liner shipping became more efficient after

the using Containers as their cargo holder.
Before the container era many general
cargo still using standard units like Pallets,
Barges, etc. Until there is a standardization
from USA which using a box of 54000
Units.
There is so many advantages of container World Container Fleet
box, like flexibility, safety, cost efficient, (Stopford 1997)
and etc. Cargo handling also become easier
because each cargo is in form of container
upon container to be stacked.

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LINER SHIPPING INTRODUCTION

Liner Shipping – Container Era

There is also a bigger factor that affecting the size of container, not only technology in shipbuilding but
also many technical like port depth, canal size (Panama Canal), terminal, and faster cargo handling for
bigger ship. Take example in Fremantle Harbor (Western Australia), in less than decade their capacity for
container is increasing significantly and there is 3 expansion in harbour depth to accommodate this
containers/ships. In 1929 the maximum depth is 11m, in 1989 it is 13m, 14,7m in 2010 until this day.

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LINER SHIPPING INTRODUCTION

Liner Shipping – Container 20th Era

To this day container became the biggest

cargo type to be used in Liner shipping. There
are 4 types of container length 8ft, 10ft, 20ft,
40ft. With each container ship that can be
used vary in size and TEUs capacity that they
can hold.
There is so many shipping company
nowadays, they had many ships either
chartered or their own ship. In each
companies they also own many branch in
every location in worldwide, like the chart to
the right:

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LINER SHIPPING INTRODUCTION

Liner Shipping – Transport System

In liner business there is a rules for each

services, which can be defined as fixed,
regular intervals, and offer transport to any
goods in the area of operation.
This means that every liner shipping system
will have a main area/shipping route. This
route mainly affected by demand in market
for each goods. There is 4 routes as we can
see in the picture next to us:
1.Translantic
2. Transpasific
3. Europe Far East
4. And Other Trade

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LINER SHIPPING INTRODUCTION

Liner Shipping – Sea Routes

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LINER SHIPPING INTRODUCTION

Liner Shipping – Economy Effect

The number of containers lifted increased in 14,1

Million TEU to 466 Million TEU during 1990 to
2007. And the growth per annum for each years is
estimated at 10,4%/annum. In contrast to word
economy growth between 1983 and 2006 GDP
grew by 4,8%/annum and this is really
proportional to the growth of containers shipping
at the same time. The world economy is not just
affected trade from land/air only but it is also
affected heavily on Sea Trade especially in liner
shipping.

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LINER SHIPPING INTRODUCTION

Liner Shipping - Prices

Pricing in liner shipping usually depends on the time for each trip. But in some cases there is another factor like risk that need to be considered: (Ex:
Piracy/Conflicted Area).
There is also port facility for specified voyage, if the port has a good facility the time for cargo handling will be lesser than poor quality’s terminal. If the port
didn’t have any cargo handling facility it will also increase the price for the cargo (because we need independent cargo handling system : Crane, Cables, etc).
To show the real example we can see the table right to us which show pricing in United States for shipping across the world:

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LINER SHIPPING VS TRAMP SHIPPING
Main Difference
The Main difference
for each shipping
method will be the
schedule – because in
tramp shipping it is
more free to adjust the
Liner Shipping Tramp Shipping schedule for the
consignor and shipper
rather than liner.
No Fixed
Fixed Schedule Higher Price
Schedule
Lower Price The route also
depends on the
shipping company if
Route:
Route: Ownership: Ownership: you choose liner, with
Follow The
Fixed/Multiple Real/Agent
Goods
Charter tramp you can choose
which route/port you
want your goods to be.
Quantity: Port: Quantity: Port:
Small-Medium Multiple Large Single

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LINER SHIPPING VS TRAMP SHIPPING
Main Actors
In liner shipping the main actor could be in 3 ways, either it is Shipper-Carrier or event using Liner Agent. In
tramp shipping it is a bit more simple, Shipper/Consignor only make a contract with Shipping company for each
goods that want to be delivered.

Liner Shipping Tramp Shipping

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LINER SHIPPING VS TRAMP SHIPPING
Cargos Differents
In Tramp shipping each cargo usually comes in higher quantity (Higher Tonnages) than liner shipping, this is due
to cargo demand for each shipping. In tramp shipping usually shipper needs bulk cargos like Iron Ore, Grain, Coal,
Raw Material, etc. For the liner shipping the main comodities can be vary from the shippers request and also
supply from specific countre/port that supply this goods.

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LINER SHIPPING VS TRAMP SHIPPING
Scheduling
In scheduling we can see that in Liner
shipping is more restricted to their
schedules. But this is different in
tramp shipping because they are not
contracted to many shippers or rather
in much smaller shipper/consignor.
This also affected the port of
destination for each voyage can be
vary depend on our request to the
shipping company to deliver in which
port/to take which good in each port.

Liner Shipping Schedule

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References
◦ Stopford, M., (1991) MARITIME ECONOMICS
◦ Lloyd List (2010) THE HANDBOOK OF MARITIME ECONOMICS AND
BUSINESS SECOND EDITION
◦ https://moverdb.com/container-shipping/
◦ https://www.fremantleports.com.au/the-port/history-and-
heritage/container-trade

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