You are on page 1of 38

International Shipping

Shipping Industry
 

Historical Perspective: Marco Polo and Vasco De Gama were successful in discovering the sea routes to Asia, Columbus ended up discovering the route to America. Earlier the ships were built for safe passage of cargo, but later on speed became vital. European Countries have built large cargo carrying capacities and captured about 92% share of shipping industry.

Open Registry System

This system allows the ship owners of developed counties to register their ships in some less developed countries. The system benefits both, the ship owners as well as the host countries. A ship is registered under open registry system can put the flag of the host country on the ship. In the shipping parlance, this is called “flag of Convenience”

Every ship has to undergo a special inspections and if it id found sea worthy. the stricter are the conditions of registration.   . The older the ships. The special Inspection are carried out by the surveyors of the department of merchant shipping in the host country at the expense of the ship owners.Registration of Ships  The condition of registration of the ship depends on it’s age. it can be registered.

Operations – Liners and Tramp Cargo ships Cargo ships Liner ships Liner ships o Tramp ships Tramp ships o Liner Ship: It represents the organized sector of the shipping industry due to their fixed schedule and fixed freight rate policy. . Tramp Ship: It is the masters of their own will have flexible schedules of arrivals and departure also their freight rates vary according to the situation.

Characteristics of Liner ships       Fixed schedule of arrival and departure Pre-determined voyage and trade route Publish ocean freight rates also fixed Shipping is governed by shipping Conference Stable freight rates for a long period of time. . which helps the shipper to quote C & F prices with uniform rates for all shippers. It coverage wide range of Ports.

. The freight rates of tramp ships depends upon the demand and supply conditions in the shipping industry. Bulky and Heavy cargo which are normally shipped in large quantities. the tramp freight rates shoot up. Coal. Normally carries homogenous cargo like grain. In case of shortages of shipping space..Characteristics of Tramp ships      They are free to move anywhere on the high sea at their will and Their voyage routes and schedules are flexible. Fertilizers. etc. Timber.

(1) General Cargo Ships (2) Bulk Cargoes (3) Tankers (4) Break – Bulk Cargo (5) Container Cargoes (6) Roll – ON – Roll – OFF (Ro-Ro) Cargoes . which carry these cargoes.Types of Ships        There are various types of ships.

popularly known as “refer Container”  . Dead Wight: “The maximum carrying capacity of a ship. expressed in tons of cargo” For carriage of perishable cargo there is also a facility of refrigerated containers. DWT: “Dead Weight Tonnage” – ship cargo capacity.000 DWT.(1) General Cargo Ships    These types of ships vary in size from 8000 to 21.

.(1) General Cargo Ships     This ships can sail at twenty or twenty two (20 . which helps to maintain fuel economy and to deliver cargo on schedule. food. more the fuel it consumes. etc.  .22) Knots per hour. Higher the speed of the ship. Knot: “Knot is 6080 feet ” The Average speed of the ships is 15 – 16 knots per hour. vegetables. Particularly suitable for fresh fruits.

(1) General Cargo Ships .

(1) General Cargo Ships .

50.(2) Bulk Cargo    Their carrying capacity ranges from 25. the ship they use the material handling which is available on the port terminals.000 DWT The speed of the ship is around thirteen (13) knots per hour In modern bulk carriers there will be no cargo handling equipments such as cranes on board. .000 to 2.

(2) Bulk Cargo .

(2) Bulk Cargo .

000 to 5. these operations can be carried out away from the ports.(3) Tankers      This is mostly uses for carrying the liquids. .55. As such for filling & pumping out operations. ships need not enter the ports. This has carrying capacity of 25. Oil terminals and refineries are connected by submarine pipelines through which oil is pumped in or out. The average speed of the ship is around 12 – 13 knots.000 DWT.

(4) Break-Bulk Cargo  In shipping breaking bulk is a term for extraction of a portion of the cargo of a ship. the volume of the break-bulk cargo has declined dramatically worldwide because of “Containerization”. Break-Bulk cargo is typically material stacked on wooden pallets and lifted into and out of the vessel by cranes on the dock.   . But.

(4) Break-Bulk Cargo .

. the port have installed their own cranes. But now with the port development. That reduce the initial investment as well as it increases the cargo carrying capacity. Vessel may be up to 50. Speed is around 33 knots per hour.(5) Container Cargo      This was developed in 1950s.000 DWT weight in size. In beginning Container vessels were all equipped with their own cargo handling systems.

(5) Container Cargo .

(5) Container Cargo .

(6) Roll-On-Roll-OFF (Ro-Ro) Cargo     These types of ships are ideally suited for the cargo which can be horizontally rolled on board the ship. Such cargo includes all the wheeled vehicles. which can be driven on board the ship such as tractors. It is the safest and most inexpensive way to handle and transport oversized or special project cargo. There is no exposure to water because the cargo is always secured in ships Ro-Ro garage deck for the entire voyage. buses and trucks. .

(6) Roll-On-Roll-OFF (Ro-Ro) Cargo .

(6) Roll-On-Roll-OFF (Ro-Ro) Cargo .

Containerization       “Container is a single. It is designed for easily filling and emptying It has an internal volume of at least 38. sealed. rigid. in which merchandise is shipped by vessel. . truck or rail” Characteristic: It is strong enough for repeated used It is specially designed to facilitate the cargo of goods by one or more modes of transport without intermediate reloading. reusable metal box.5 m3.

The longer types container types are also becoming available.   . but the 40 feet container is increasingly replacing it.Containerization  Standard Containers: The 20 foot container is the most common container worldwide. 10 foot container is also available but rarely used. Ex.

Types of Container 20 FOOT Dry Container .

40 FOOT Dry Container .

Open Top Container .

Reefer Container .

Flat Rack Container .

Container Yard .

Saving in port charges (3). Reduction in packing cost (5). Reduction in transportation cost (2). Reduction in Insurance Premium (6).Containerization  Benefits to Shippers: (1). Reduction in warehousing and Inventory cost (4). More convenience       .

Voyage charter party (2). Time charter party (3). A charter party agreement can be done on various bases: (1).Charter Party Agreement   Charter party agreement is a contract between a shipper and a shipping company under which an entire ship or some part of it is booked by the shipper. Charter party by Demise    .

. who prepares the “bill of lading”. and loads the cargo on board the ship. the shipping line advertise it’s voyage through the newspaper and their freight brokers. The advertisement announces the dates of arrival and departure of the ships from a particular port. The shipper books the cargo through his C & F agent/ freight broker.Charter Party Agreement    In case of general ship. get it signed by the representative of the shipping line. final port of destinations.

Responsibility and Liabilities of Shipping Line      The ship is seaworthy to undertake the proposed voyage. The ship is adequately staffed & suitably equipped. The shipping line must issue a bill of lading confirming the receipt of cargo and the apparent condition in which the cargo is received. The ships are in good condition and the ship is to safe operate. The cargo holds refrigerator for keeping the perishable goods. .

What should I know before I contact the shipping Line ?  Step -1 “Where is your shipment going? Nearest Port?” Step -2 “Which Shipping Line services that port?” Step -3 “Types of Cargo?” Step -4 “How much are you shipping?” Step -5 “Whom to call?”     .

..Thank You ….

%.34: .