INTERNATIONAL TRANSPORT AND

INSURANCE IN FOREIGN TRADE

Ms. Phan Thi Quynh Nhi (MBA)

International Business Administration Department
Email: nhiptq@huflit.edu.vn
 CHAPTER 2

SEA TRANSPORTATION
Content
 Features, status of sea transportation
 Material technical basis for sea transportation
1. Features and status of sea transportation
 1.1. Features
 1.2. Status
1.1. Features
 Sea transportation: The carriage of cargo or
passengers inside a nation’s territory or from this
nation to another by sea.
 Number 1 position in international transport
Advantages of sea transport

 Natural waterways
 Large capacity
 Low freight
 Low fuel consumption, suitable for transporting a
majority of goods
Cargo transported by sea
 Oil and Oil products (by tanker)
 Dry cargo (in bulk)
 Other dry cargo (by container, refrigerated ships, ...)
5 largest ocean ships
5 largest ocean ships
 Drawbacks of sea transport
 Slow speed -> Longer time
 Being subject to natural and maritime conditions
Perils of the sea
1.2. Status of sea transportation

 Sea occupies 2/3 of the earth’s surface  Most

countries are connected via waterway.
 Vietnam’s special geographical location
Key maritime routes of Vietnam
2. Material technical basis for sea
transportation
 Transport route
 Port
 Merchant ship / Vessel
 Containers
2.1. Transport routes
 The route formed between 2 or more ports where ships carry
passengers / cargo.
 Classification based on usage:
- Periodic route
- Non-periodic route
- Special route
 Classification based on area of operation
- Domestic route
- International route
2.2. Seaport

 Definition
 Functions
 Classification
 Technical equipment
 Scale evaluation parameters
 Vietnamese port system
2.2. Seaport

2.2.1. Definition: the place where ships come and go,

with services for both ships and cargo. Port is an
important traffic hub of a nation.
2.2.2. Functions:
- Port/Ship services
- Cargo services
 2.2.3. Seaport classification
 Based on using purpose: commercial port, military port,
fishing port and port of refuge
 Based on natural condition: Natural and Artificial port
 Based on maritime condition: Port with / without tide, Port
with / without freezing condition
 Based on governing scale: National, Provincial, State -owned
and Private-owned port
 Based on vessel serving scale: International port Grade I, II,
National port Grade I, II, III, IV
 2.2.4. Technical equipment in the seaport
 Group of equipment serving the ship to and from the port,
awaiting loading and unloading: wharf, passage, dyke...
 Group of equipment for the transportation, cargo loading and
unloading: cranes, forklifts, suction pumps, conveyors,...
 Group of equipment for storage and preservation: warehouse
systems, bonded warehouses, oil tanks, storage facilities,...
 Road system and transport tools: railways, roads, internal roads ...
 Group of floating equipment: wharf, cranes ...
 Other equipment group: electricity, lighting system, signal lights,
communication system, computer ...
 2.2.5. Scale evaluation parameters
 Number of vessels / gross tonnage / gross tonnage per port
in a year
 The number of vessels loading at the same time
 Volume of cargo loading and unloading per year
 Cargo handling level
 Cargo storage capacity
 Laws, customs, charges and prices of port services
2.3. Merchant Ship / Vessel
 Definition
 Classification
 Vietnamese fleet Technical and economic
specifications
 Ship’s paper
2.3.1. Definition

Ship carrying goods or passengers for commercial

purposes.
2.3.2. Classification

 Based on carried goods

 Based on structure
 Based on usage
 Based on business methods
 Based on flags
 Based on engines
 Based on tonnage
2.3.2. Classification
Based on the carried goods:
- Dry cargo ship:
--- General cargo ship
--- Lolo (Lift on-lift off) & Roro (Roll on-Roll off)
--- Bulk ship
--- Combined ship
--- LASH – Lighter Aboard ship
- Tanker cargo ship:
--- Oil Tanker / Ultra-Large-Carrier
--- Liquefied Natural Gas (LNG) carrier
--- Others
2.3.2. Classification
 Based on structure: Ship with one or more decks
 Based on usage: Ship carrying cargo / passenger /
mixed
 Based on business method: Liner / Tramp
 Based on vessel flag
2.3.2. Classification

 Based on engine
- Steam ship
- Steam turbine ship
- Motor diesel ship
- Nuclear ship
2.3.2. Classification
 Based on carriage tonnage
- Bulk Carrier:
+ ULCC: Ultra Large Crude Carrier 320,000 — 549,000 DWT
+ VLCC: Very Large Crude Carrier 160,000 — 319,999 DWT
+ Capesize: 120,000-200,000 DWT
+ Panamax: 50,000-120,000 DWT
+ Hadysize: < 50,000 DWT
- Crude Carrier:
+ ULCC: Ultra Large Crude Carrier 320,000 — 549,000 DWT
+ VLCC: Very Large Crude Carrier 160,000 — 319,999 DWT
+ Suezmax: 110,000 — 150,000
+ Aframax: 75,000 — 110,000
+ Panamax: < 75,000 DWT
2.3.4. Technical and economic specifications

1. Ship’s name
2. Place of Registry
3. Flag of the ship
4. Shipowner
5. Length Over All – LOA; Breadth Extreme – BE
6. Draft / Draught
2.3.4. Technical and economic
specifications
7. Displacement Tonnage – DT
8. Deadweight Tonnage – DWT
9. Register Tonnage – RT
10. Cargo Capacity / Cargo Space – CS
11. Ship’s stowage factor – SSF
12. Cargo stowage factor – CSF
2.3.4. Technical and economic
specifications
1/ Ship’s name: name / sign appointed by a shipowner and
accepted by Registered office.
2/ Place of Registry
3/ Flag of the ship
- Conventional flag
- Flag of convenience
4/ Shipowner: the one who possesses the ship and can use
it for business purposes.
2.3.4. Technical and economic
specifications
5/ Dimensions of ship
 Length Over All – LOA: Distance from the bow to the
stern.
 Breath Extreme / Beam – BE: The straight line is between
the two broadest points of the ship's wall
6/ Draft / Draught: the height from the bottom of the ship to
the water.
 Light / Minimum Draught: when the ship carries no goods.
 Loaded / Maximax Draft: when the ship is full of cargo and
safe in the summer.
Plimsoll line
2.3.4. Technical and economic specifications

7/ Displacement Tonnage – DT: equivalent to the

weight of water occupied by the sinking part of the ship,
measured by Long ton (LT)
 Light Displacement: equivalent to the weight of the
hull, machinery, equipment on board, water in the
boiler, the sailors and their luggage.
 Heavy Displacement: weight of ship carrying no cargo
+ cargo + items provided for the trip.
2.3.4. Technical and economic specifications
8/ Deadweight Tonnage (DWT): The ship's carrying
capacity indicated by the maximum tonnage at the maximum
draft.
 Deadweight Capacity (DWC) = Weight of vessel with full
cargo – Weight of vessel with no cargo
DWC = Heavy Displacement – Light Displacement
= Weight of the goods and weight of items supplied for the
trip which the ship can carry at maximum draft.
 Deadweight Cargo Capacity (DWCC)
DWCC = DWC – Weight of the items supplied for the trip
= Weight of cargo to be carried
2.3.4. Technical and economic
specifications
9/ Registered Tonnage: Total volume of empty
compartments available on the ship, calculated by
Register Ton
1 RT = 100 cubic feet = 2,83 m3
 Gross Registered Tonnage – GRT
 Net Registered Tonnage – NRT
2.3.4. Technical and economic
specifications
10/ Cargo Capacity – CC / Cargo Space - CS: Total
volume of compartments available for storage.
 Grain Capacity / Grain Capacity – GS
 Bale Capacity / Bale Space – BS
 GS > BS (from10-20%)
2.3.4. Technical and economic
specifications
11/ Coefficient of Loading - CL / Ship’s Stowage Factor
- SSF: ratio of cargo space (CS) and Deadweight
capacity (DWC)
12/ Cargo Stowage Factor - CSF: Ratio of Volume and
Weight of cargo
 Good choice: CSF = SSF
2.3.5. Ship’s paper
 Certificate of Nationality
 Certificate of Ownership
 Certificate of Class: basis for calculating insurance
 Certificate of Tonnage: basis for tax collection and
charterer’s consideration
 Certificate of Load Line Mark
 Crew List
 Log book
 Engine Journal
2.4. Containers

 Features
 Classification
 Dimension
2.4.1. Features
 Fix shape, durable and suitable for multi-time using.
 Special structure for transport by one or more means
of transportation.
 Special structure for cargo loading and unloading.
 Requiring separate equipment for loading and
unloading.
2.4.2. Classification
 Based on Weight
 2.4.2. Classification
Based on Constructing Material

Aluminum

Steel

Plastic
Wood
 2.4.2. Classification
 Based on Usage
1. General Purpose Container
2.4.2. Classification
Based on Usage
2. Bulk Container
2.4.2. Classification
Based on Usage
3. Reefer
2.4.2. Classification
Based on Usage
4. Tank Container
2.4.2. Classification
Based on Usage
5. Special Container