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AoSAnatomy of Shipping

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AoSAnatomy of Shipping

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Shipping Industry

* The industry devoted to: - moving goods or passengers by water. - Passenger operations have been a major component of shipping, but air travel has seriously limited this aspect of the industry. * The enormous increase, however, in certain kinds of cargo, for

example, petroleum, has more than made up for the loss of passenger traffic.• Although raw materials such as mineral ores, coal, lumber, grain, and other foodstuffs supply a vast and still growing volume of cargo,• the transportation of manufactured goods has increased rapidly

since WW2

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On customs Malaysia

http://www.customs.gov.my/documents/Bahagian%20Kastam/JD121217%20Tek%201.pdf

http://www.portsworld.com/customs/proc_imp_exp.htm#DECLARATION

http://malaysialogisticsbuzz.blogspot.com/2010/06/seafreight-import-and-export-general.html - Seafreight Import and Export General Procedure flows

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• Commercial shipping began perhaps with the activities of the Phoenician merchants who operated their own vessels, transporting goods in the Mediterranean. • The practices they developed were adopted by the merchants of ancient Greece and Rome and were continued by the maritime powers through the Middle Ages to modern times. • The Venetians, from 1300 to 1500, owned a huge merchant fleet that served the interests of the merchant traders and the city-state exclusively. • From 1600 to 1650 the Dutch ranked first in shipping activity, operating a globe-circling

tramp service for merchants of western Europe.

History

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Advances in the 19th Century* Until the 19th century, ships were owned by the merchant or by the trading company; common-carrier

service did not exist. * On January 5, 1818, the full-rigged American ship James Monroe, of the Black Ball Line, sailed from New York City for Liverpool, inaugurating common-carrier line service on a dependable schedule. A policy of sailing regularly and accepting cargo in less-than-shipload lots enabled the

Black Ball Line to revolutionize shipping. •Two technological developments furthered progress toward present-day shipping practices: 1. the use of steam propulsion and 2. the use of iron in shipbuilding. • In 1819 the American sailing ship Savannah crossed the Atlantic under steam propulsion for part of the voyage, pioneering the way for the British ship Sirius, which crossed the Atlantic entirely under steam in 1838.• Iron was first used in the sailing vessel Ironsides, which was

launched in Liverpool in 1838.

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• The opening of the Suez Canal in 1869 was of great economic importance to shipping. Coinciding with the perfection of the triple-expansion reciprocating engine, which was both dependable and economical in comparison with the machinery of the pioneer vessels, the completion of the canal made possible rapid service between western Europe and Asia. • The first steam-propelled ship designed as an oceangoing tanker was the Glückauf, built in Britain in 1886. It had 3,020 deadweight tons (dwt; the weight of a ship's cargo, stores, fuel, passengers, and crew when the ship is fully

loaded) and a speed of 11 knots.

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• Among the technological advances at the turn of the century was the development by the British inventor Charles A. Parsons of the compound steam turbine, adapted to maritime use in 1897.• In 1903 the Wandal, a steamer on the Volga River, was powered by the first diesel engine used for ship propulsion. • The Danish vessel Selandia was commissioned as the first

seagoing motor ship in 1912. •After WWI significant progress was made especially in the perfection of the turboelectric drive. • During WWII, welding in ship construction supplanted the use

of rivets. •The keel of the first nuclear-powered passenger-cargo ship, the Savannah, was laid in Camden, New Jersey, on May 22, 1958, and the ship was launched in 1960. • In 1962 it was chartered to a private company, but it did not prove financially successful.

The 20th Century

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compound steam turbine,

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• Shipping is a private, highly competitive service industry.• The activity of the industry is divided into several categories, namely:

i. liner service, ii.tramp shipping, iii.industrial service, and

iv. tanker operation, all of which operate on certain well-established routes.

NATURE OF THE SHIPPING INDUSTRY

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•Most of the world's shipping travels a relatively small number of major ocean routes: i. North Atlantic, between Europe and eastern North America;

ii. Mediterranean-Asian route via the Suez Canal; iii. Panama Canal route connecting Europe and the eastern American coasts with the western American coasts

and Asia; iv. South African route linking Europe and America with

Africa; v. South American route from Europe and North America to

South America; vi. North Pacific route linking western America with Japan and China; and,

vii. South Pacific route from western America to Australia, New Zealand, Indonesia, and southern Asia.

* The old Cape of Good Hope route pioneered by Vasco da Gama and shortened by the Suez Canal has returned to use for giant oil tankers plying between the Persian Gulf and Europe and America. Many shorter routes, including coastal routes, are heavily traveled.

Trade Routes

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Major shipping routes:

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• Technically, coastal shipping is conducted within 32 km (within 20 mi) of the shoreline, but in practice ship lanes often extend beyond that distance, for reasons of economy and safety of operation. • In the U.S., coastal shipping is conducted along the Pacific, Atlantic, and Gulf coasts.• Under the restriction known as cabotage, the U.S. and many other nations permit only vessels registered under the national flag to engage in coastal trade. Among many small European countries cabotage does not apply, and short international voyages are common. • A special feature of coastal shipping in the U.S. is the trade between the Pacific coast and the Atlantic and Gulf coasts. Vessels engaged in this trade traverse the open sea and utilize the Panama Canal; however, they are covered by cabotage laws. • In coastal and short-distance shipping, special-purpose ships are often employed, such as car ferries and train ferries.

Coastwise Shipping

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Global Shipping Routes

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* Liner service consists of regularly scheduled shipping operations on fixed routes. Cargoes are accepted under a bill-of-lading contract issued by the ship operator to

the shipper. • Competition in liner service is regulated generally by agreements, known as conferences, among the shipowners. These conferences stabilize conditions of competition and set passenger fares or freight rates for all members of the conferences.• In the U.S., steamship conferences are supervised by the Federal Maritime Commission in accordance with the Shipping Act of 1916. * Rate changes, modifications of agreements, and other joint activities must be approved by the commission before they are effective.• Measures designed to eliminate or prevent competition are prohibited by law.

Liner Service

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•Tramps, known also as general-service ships, maintain neither regular routes nor regular service. • Usually tramps carry shipload lots of the same commodity for a single shipper. Such cargoes generally consist of bulk raw or low-value material, such as grain, ore, or coal, for which inexpensive transportation is required.

• About 30 percent of U.S. foreign commerce is carried in tramps. Tramps are classified on the basis of employment rather than of ship design. The typical tramp operates under a charter party,

that is, a contract for the use of the vessel. • The center of the chartering business is the Baltic Exchange in London, where brokers representing shippers meet with shipowners or their representatives to arrange the agreements.• Freight rates fluctuate according to supply and demand: When cargoes are fewer than ships, rates are low. • Charter rates are also affected by various other circumstances, such as crop failures and political crises.

Tramp Shipping

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• Charter parties are of three kinds, namely, i. the voyage charter, ii. the time charter, and iii. the bareboat charter. •The voyage charter, the most common of the three, provides transport for a single voyage, and designated cargo between two ports in consideration of an agreed fee. The charterer provides all loading and discharging berths and port agents to handle the ship, and the shipowner is responsible for providing the crew, operating the ship, and assuming all costs in connection with the voyage, unless an agreement is made to the contrary. • The time charter provides for lease of the ship and crew for an agreed period of time. The time charter does not specify the cargo to be carried but places the ship at the disposal of the charterer, who must assume the cost of fuel and port fees.

Charter Parties

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* The bareboat charter provides for the lease of the ship to a charterer who has the operating organization for complete management of the ship. The bareboat charter transfers the ship, in all but legal title, to the charterer, who provides the crew and becomes responsible for all aspects of

its operation. •The leading tramp-owning and tramp-operating nations of the world are: Norway,

Britain, the Netherlands, and Greece.

The carrying capacity of a typical, modern, well-designed tramp ship is about 12,000 dwt, and its speed is about 15 knots. The recent trend is toward tramps of 30,000 dwt, without much increase in speed.

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Industrial Carriers• Industrial carriers are vessels operated by large corporations to provide transportation essential to the processes of manufacture and distribution. • These vessels are run to ports and on schedules determined by the specific needs of the owners. The ships may belong to the corporations or may be chartered. For example, the Bethlehem Steel Corp. maintains a fleet of Great Lakes ore carriers, a number of specialized ships that haul ore from South America to Baltimore, Maryland, and a fleet of dry-cargo ships that transports steel products from Baltimore to the Pacific coast. • Many oil companies maintain large fleets of deep-sea tankers, towboats, and river barges to carry petroleum to and from

refineries. The ships often operate under contracts of affreightment.

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Tanker Operation•All tankers are private or contract carriers. In the 1970s some 34% of the world tanker fleet, which aggregates about 200 million dwt, was owned by oil companies; the remaining tonnage belonged to independent shipowners who chartered their vessels to the oil companies.• The So-called supertankers, which exceed 100,000 dwt, are employed to transport crude petroleum from the oil fields to refineries ( Dirty)• The refined products, such as gasoline, kerosene, and lubricating oils, are distributed by smaller tankers ( clean), generally less than 30,000 dwt, and by

barges.

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VESSEL TYPES• Merchant ships are classified as passenger carriers, cargo ships, and tankers. • During the height of passenger travel by ship, the largest as well as the most glamorous ships afloat were the famed liners of the North Atlantic, which, beginning in the mid-19th century, sailed regular schedules between the Americas and Europe. • Competing in speed as well as in size and appointments, such ships as the Mauretania, the Queen Mary, the Queen Elizabeth, the United States, and the France gradually reduced the time for the North Atlantic crossing to less than four days. • Their size, from about 45,000 to 75,000 metric tons and up to 300 m (1,000 ft) in length, was gigantic by the standards of the first half of the 20th century, but they have been dwarfed by the oil tankers of the 1970s and '80s.

• Today's passenger liners operate principally in the cruise trade.

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Cargo ShipsCargo ships carry packaged goods, unitized cargo (cargo in which a number of items are consolidated into one large shipping unit for easier handling), and limited amounts of grain, ore, and liquids such as latex and edible oils. A few passengers are accepted on some cargo liners. Specialized ships are designed and built to carry certain types of cargo, for example, automobiles or grain.

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Container Ships•In the late 1950s container ships set the pattern for technological change in cargo handling and linked the trucking industry to deep-Sea shipping.• These highly specialized ships carry large truck bodies and can discharge and load in one day, in contrast to the ten days required by conventional ships of the same size.• The rapid development of the container ship began in 1956, when Sea-Land Service commenced operations between New York City and Houston, Texas. • Barge-aboard, or lighter-aboard, ships, also called seabees (sea barges) or LASH (lighter-aboard ships), resulted from an evolutionary development of the container ship.• They are capable of carrying about 38 barges, or up to 1,600 containers, or a combination of containers and barges. Their design enables them to deliver cargo to developed or undeveloped ports, without the need for berthing.

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TankersTankers, designed specifically to carry liquid cargoes, usually petroleum, have grown to many-compartmented giants of a million metric tons and more. Despite their great size, their construction is simple, as is, for the most part, their operation. A major problem with the giant tankers is the severe environmental damage of oil spills, resulting from collision, storm damage, or leakage from other

causes. Specialized tankers transport liquefied natural gas (LNG), liquid chemicals, wine, molasses, and refrigerated products.

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Treaties and Conventions* Many treaties and conventions have been adopted over the years with the objective of increasing the safety of life at sea (SOLAS). • One of the most important agreements provided for the establishment of the International Iceberg Patrol in 1913, after the Titanic disaster.• Under the International Load-Line Convention of 1930, ship loading was regulated on the basis of size, cargo, and route of the vessel.• The International Convention for the SOLAS, which governs ship construction, was ratified by most maritime nations in 1936, and updated in 1948, and

again in 1960 and 1974.

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Understanding Ship Sizes

http://maritime-connector.com/worlds-largest-ships/ - largest vessel in the world

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Handy and Handymax: Traditionally the workhorses of the dry bulk market, the Handy and more recent Handymax types remain popular ships with less than 60,000 dwt. A handymax is typically 150-200 meters (492-656 feet) in length, though certain bulk terminal restrictions such as those in Japan mean that many handymax ships are just under 190 meters in overall length. Modern handymax designs are typically 52,000-58,000 DWT in size, have five cargo holds and four cranes of 30 metric ton lifting capacity

Handymax 'Maple Creek' - 53,474 DWT © Siba Ships S.p.A.

Aframax: Crude and product tankers between 80,000 and 120,000 dwt. This is the largest size defined by the Average Freight Rate Assessment (AFRA) tanker rate system.

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Panamax: Represents the largest acceptable size to transit the Panama Canal, which can be applied to both freighters and tankers; Size is determined principally by the dimensions of the canal's lock chambers, each of which is 33.53 metres (110 ft) wide by 320.0 metres (1050 ft) long, and 25.9 metres (85 ft) deep. The usable length of each lock chamber is 304.8 metres (1000 ft). The available water depth in the lock chambers varies, but the shallowest depth is at the south sill of the Pedro Miguel Locks, and is 12.55 metres (41.2 ft) at a Miraflores Lake level of 16.61 metres (54 feet 6 in). The height of the Bridge of the Americas at Balboa is the limiting factor on a vessel's overall height.

Panamax 'APL Malaysia - 293.99 x 32.20 x 21.80m

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Seawaymax: The term Seawaymax refers to vessels which are the maximum size that can fit through the canal locks of the St Lawrence Seaway. Seawaymax vessels are 740 feet in length, 78 feet wide, (maximum 226 m length, 24 m beam) and have a draft of 26 feet (7.92 m). A number of Lake freighters larger than this size cruise the Great Lakes and cannot pass through to the Atlantic Ocean. The size of the locks limits the size of the ships which can pass and so limits the size of the cargoes they can carry. The record tonnage for one vessel on the Seaway is 28,502 tons of iron ore while the record through the larger locks of the Great Lakes Waterway is 72,351 tons. Most new lake vessels, however, are constructed to the Seawaymax limit to enhance versatility by allowing the possibility of off-Lakes use.

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Suezmax: This standard, which represents the limitations of the Suez Canal, has evolved. Before 1967, the Suez Canal could only accommodate tanker ships with a maximum of 80,000 dwt. The canal was closed between 1967 and 1975 because of the Israel - Arab conflict. Prior to 1967, a Suezmax was a maximum of 80,000 dwt. Upon reopening in 1975, after many modifications to the locks and canal itself, the maximum was increased to 200,000 dwt.

Suezmax Tanker 'Cap Guillaume' © Euronav

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Capesize: Refers to a rather ill-defined standard which have the common characteristic of being incapable of using the Panama or Suez canals, not necessarily because of their tonnage, but because of their size. These ships serve deepwater terminals handling raw materials, such as iron ore and coal. As a result, "Capesize" vessels transit via Cape Horn (South America) or the Cape of Good Hope (South Africa). Their size ranges between 80,000 and 175,000 dwt. Due to their size there are only a comparatively small number of ports around the world with the infrastructure to accommodate such vessel size.

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VLCC: Very Large Crude Carriers, 150,000 to 320,000 dwt in size. They offer a good flexibility for using terminals since many can accommodate their draft. They are used in ports that have depth limitations, mainly around the Mediterranean, West Africa and the North Sea. They can be ballasted through the Suez Canal.

Very Large Crude Carrier 'Irene SL' - 319,247 DWT © Auke Visser

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ULCC: Ultra Large Crude Carriers, 320,000 to 550,000 dwt in size. Used for carrying crude oil on long haul routes from the Persian Gulf to Europe, America and East Asia, via the Cape of Good Hope or the Strait of Malacca. The enormous size of these vessels require custom built terminals.

Ultra Large Crude Carrier 'Knock Nevis' - 564,650 DWT © Auke Visser

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Knock Nevis

26/7/2013 http://maritime-connector.com/worlds-largest-ships/

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The world's largest container ship was to be christened in the German port city of Hamburg on Thursday, and now shares the title with an identical twin vessel. But with fierce competition for new records, they won't be the biggest for long

At 396 meters (1,300 feet) long, the mammoth vessel can carry some 16,000 shipping containers, and will frequently travel to the northern German city. Dubbed the Alexander von Humboldt, it was made by French shipbuilder CMA CGM in the image of the Marco Polo, which was inaugurated in December 2012 -- making both boats the largest in the world.

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The Triple-E class container ships are to be built by South Korea's Daewoo Shipbuilding & Marine Engineering (DSME). They will be the largest container ships in the world, with a container carrying capacity of 18,000TEU. Each vessel is estimated to cost $190m.Triple-E (EEE) stands for Economy of scale, Energy efficient and Environmentally improved vessel. The vessels will operate in the Europe-Asia route, with stoppages at Shanghai, Ning-bo, Xiamen, Yantian and Hong Kong ports.

http://www.ship-technology.com/projects/triple-e-class/

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Types of Cargoes

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• In its raw state, it has none of the free-flowing, easy-to-load properties of liquid cargoes, such as crude oil and grain. • to make it easier to transport it is converted into that same liquid state by extreme cooling or pressurisation. • This process, known as liquefaction, reduces the volume of gas by a massive 600 times, and presents its own challenges for the ships that carry gas. As the gas needs to be kept in a liquid state for the entire journey, Gas Carriers must have complicated cooling or pressurisation systems on board. • As a result, these highly specialised ships are often viewed as the most sophisticated of all commercial ships, costing about twice as much as an oil tanker of the same size.* The gas itself is normally propane or methane, known as LPG (link to gas in dictionary) and LNG (link to gas in dictionary) respectively and can be used in a variety of applications from environmentally-friendly fuels and refrigerant to propellant in packaged aerosols and in industrial chemical processes.

Gas Cargo

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Bulk cargoes are consume in everyday life in one from or another. • From gasoline to fuel our cars, to fruit juices and cooking oil for consumption in the home, it’s difficult to live the lives we live today without them. * These free-flowing liquid cargoes, which also include crude oil, liquefied natural gas and chemicals, are not boxed, bagged or hand stowed. Instead, they are poured into and sucked out of large tank spaces, known as the holds, of a tanker.•This section of the industry has attracted more than its fair share of public attention over the years, as a result of high-profile incidents where crude oil has leak from tankers and polluted our seas and coastlines. • But there has been much legislation passed and increasing commitment from those that carry oil cargoes to further improve this section of the industry. And importantly, there has been a substantial reduction in marine pollution over the last 15 years, especially in the amount of oil spilled into the sea, despite a massive increase in world seaborne trade.

Liquid Bulk Cargo

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* From grains to coal and from sugar to cocoa, dry bulk cargoes cover a range of produce and raw materials that have two features in common: they are unpacked and are homogeneous. • These two properties make it easier for dry bulk cargoes to be dropped or poured into the hold of a bulk carrier. •Without the estimated 3,000 m dwt of dry bulk shipping transported by sea annually, life today would be altered dramatically. Just having breakfast would be a very different event, with the ingredients of bread and cereal coming from dry bulks, as well as coffee and the sugar to sweeten it. • Even the metal elements of your toaster and kettle come by sea and the coal to generate the electricity supply to power both appliances is likewise shipped in. Other dry bulk cargoes include iron ore, alumina fertilisers, scrap, sulphur and cement, as well as a large number of agricultural products for the human and animal food industry, such as rice and corn.* As the name suggests, dry bulk cargoes need to be kept dry, any moisture that finds its way into the cargo could ruin the entire load, at considerable cost to the ship owner. It may also be surprising to learn that many dry bulk cargoes are classified as ‘Dangerous Goods’ requiring special attention during loading, transportation and discharge, as they could shift during shipment, causing ship instability.

Dry Bulk Cargo

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* When we go to the supermarket to buy fresh produce, most of us do not stop to consider where that produce has travelled from. In fact, you may be surprised to learn that less than half the apples sold in major British supermarkets originate from Britain; more likely they have come from European Union states, or even as far a field as New Zealand. •Such fragile and time sensitive cargoes require special transportation that will keep goods at the right temperature to maintain freshness, run to strict schedules to ensure that the produce reaches its final destination in the optimum condition. •* To meet these demands, special refrigerated cargo ships house temperature-controlled containers suitable for the safe carriage of chilled or frozen cargoes, referred to reefer containers.* A wide range of commodities are shipped under refrigeration, including: fresh fruits and vegetables, fresh and frozen meats, poultry, and seafood, dairy products and eggs, fresh juices and frozen concentrates, and live plants and flowers.

Refrigerated Food Cargo

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* There are many different types of cargoes shipped around the world, some more unusual than others. While containers, crude oil and dry bulk get the most attention, other cargoes that fall outside of these categories are just as important to daily life. * Over-sized goods, such as a non-motorised barges or road sections, are one such cargo, while heavy cargoes, such as industrial generators and reactors, also require special treatment. Another specialist cargo is livestock, which needs to be transported in comfortable surroundings so that the cattle or sheep reach their final destination undistressed and in optimum condition.• Whatever the specialist cargo, one thing is for sure; the ships that carry them will be specially designed to serve that purpose. • To counteract the loading and discharging of heavy items, heavy-lift ships might use ballast to counterbalance the weight, while others use hydraulic feet to clamp on to the quay, while ships designed to carry livestock need climate control, feed dispensers, watering equipment and equipment for the removal of manure, as well as large quantities of bedding and food.

Special Purpose Cargo

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• It is not just commodities that move from A to B by ship: many of us have experienced life at sea as a cargo, simply by taking a cross-Channel ferry from Dover to Calais. • With the many safety and quality considerations necessary for carrying passengers, a cargo of people is in fact not so different to the many others of cargoes carried. •Passenger ships need to cater for the demands of people, be that with the provisions of seating, refreshments, entertainment and/or sleeping facilities.• * For passenger ships on longer journeys, a huge amount of food and fresh water stores need to be on board and there must be proper facilities for the storage of waste water and the massive amount of rubbish generated.* These ships vary greatly in size and can range from small foot passenger ferries to cross rivers, to large luxury ocean-going cruise liners carrying more than 2,500 passengers. Some may have the means to transport vehicles as well as passengers, offering crossings for cars and caravans, as well as freight on trucks

Passengers

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• Manufactured products and perishable goods come in a variety of shapes and sizes, often with considerable storage constraints.• Consequently, these cargoes need to be treated very differently to free-flowing dry bulk cargoes, like grain. •Imagine having to individually move the millions of computers and computer parts transported around the world every year: it would be a logistical nightmare.• * Instead, these ‘units’ are packaged together as unitised cargo before transportation. While the terms unitised and containerised are often used interchangeably, strictly speaking unitised, as a cargo type, includes containers as well as a number of other modes of transportation, such as pallets, barges, closed wagons, goods trailers and trucks.* Unitised cargoes can be very diverse, covering forest products, metals and metal goods, machines, electronics, food chemicals, raw materials, and investment and consumer goods, among others.

Unitised Cargo

26/7/2013 http://www.inamarmarine.com/pdf/LossControl/Containerized%20Cargo.pdf

Containerization is a system of intermodal freight transport using intermodal containers (also called shipping containers and ISO containers) made of weathering steel. The containers have standardized dimensions. They can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another—container ships, rail transport flatcars, and semi-trailer trucks—without being opened. The system, developed after World War II, reduced transport costs, supported the post-war boom in international trade, and was an element in globalization.

Container Cargo

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Industry IssuesEnvironmentThe World Shipping Council's members are working to promote sound environmental stewardship, with a particular focus on reducing vessel air emissions and managing vessel discharges SecurityThe World Shipping Council (WSC) supports a consultative approach to enhanced maritime security without impeding the timely flow of legitimate commerce. The WSC works closely with the U.S. government, the European Commission and international organizations to accomplish that goal. SafetyInternational liner shipping is truly a global industry. Ships and their crew travel between ports in many countries so shipping companies take steps to protect public health and safety in the countries they transit http://www.worldshipping.org/

http://www.pwc.com/en_GX/gx/transportation-logistics/pdf/opp-chal-ship.pdf - Opportunities & Challanges

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InfrastructureA modern and efficient maritime infrastructure, at sea and on land, is critical to the world's security and economic well- being. Cargo LiabilityThe Council has been working as part of the U.S. delegation to the United Nations Commission on International Trade Law (UNCITRAL) to achieve international cargo liability reform through the development of a new convention, which was opened to nations for signature in September 2009. This new international accord now known as the "Rotterdam Rules" will go into effect one year after twenty nations have signed onto it.

http://www.worldshipping.org/benefits-of-liner-shipping

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World Political & Economic Issues

**What are they - GW

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International Maritime Organization(the original name was the Inter-Governmental Maritime Consultative Organization, or IMCO, but

the name was changed in 1982 to IMO).• The International Maritime Organization (IMO) is a specialized agency of the United Nations with 167 Member States.• Its main role has been to develop and maintain a consistent regulatory

framework for international shipping with particular focus on the areas of safety, security, environment and technical co-operation.• To learn more about the IMO, visit www.imo.org.

International Institution & Their Role in Shipping

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Role 0f IMO

* The IMO Convention entered into force in 1958 and the new Organization met for the first time the following year.•The purposes of the Organization, as summarized by Article 1(a) of the Convention, are:

i. "to provide machinery for cooperation among Governments in the field of governmental regulation and practices relating to technical matters of all kinds affecting shipping engaged in international trade;

ii. to encourage and facilitate the general adoption of the highest practicable standards in matters concerning maritime safety, efficiency of navigation and prevention and control of marine pollution from ships".* The Organization is also empowered to deal with administrative and legal matters related to these purposes.

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• IMO's first task was to adopt a new version of the International Convention for the Safety of Life at Sea (SOLAS), the most important of all treaties dealing with maritime safety.• International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (MARPOL 73/78)• Also in the 1970s a global search and rescue system was initiated, with the establishment of the International Mobile Satellite Organization (IMSO), which has greatly improved the provision of radio and other messages to ships.• The Global Maritime Distress and Safety System (GMDSS) was adopted in 1988 and began to be phased in from 1992.

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Convention: A convention begins as an international meeting of representatives from many nations that results in general agreement about procedures or actions they will take on specific topics (e.g., wetlands, endangered species, etcProtocol: A protocol is an agreement that diplomatic negotiators formulate and sign as the basis for a final convention or treaty. The treaty itself may not be completed for many years.Treaty: A treaty is an agreement where the parties to it negotiate to reach common ground and avoid further conflict or disagreement. It is normally ratified by the lawmaking authority of the government whose representative has signed it. In the United States, the Senate must ratify all treaties.

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A convention is the framework in which the parties decide the basic guidelines and will not go into details of everything..

A protocol to the convention is where the parties set specific aims or legal obligations etc..For example Vienna Convention doesn't mention any obligations or % reduction in ODS in specific numbers.. these are dealt with in Montreal Protocol..

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•On 1 July 1998 the International Safety Management Code entered into force and became applicable to passenger ships, oil and chemical tankers, bulk carriers, gas carriers and cargo high speed craft of 500 gross tonnage and above.•On 1 February 1997, the 1995 amendments to the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978 entered into force. A major revision of the STCW Convention and Code was completed in 2010 with the adoption of the "Manila amendments to the STCW Convention and Code".•The 2000s also saw a focus on maritime security, with the entry into force in July 2004 of a new, comprehensive security regime for international shipping, including the International Ship and Port Facility Security (ISPS) Code, made mandatory under amendments to SOLAS adopted in 2002.

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United Nations Commission on International Trade Law• The United Nations Commission on International Trade Law (UNCITRAL) is a body of member and observer states that was established by the U.N General Assembly in 1966, to address disparities in national laws governing international trade. • The World Shipping Council has been participating in a working group tasked with developing a new international instrument to govern the carriage of goods by sea. To learn more about UNCITRAL and its work, visit www.uncitral.org.

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International Organization for StandardizationThe International Organization for Standardization (ISO) is a network of more than 150 national standards institutes that develops specifications and criteria that can be applied consistently around the world in the classification of materials, the manufacture of products and the provision of services. More information about the ISO can be found at www.iso.org.

World Customs OrganizationThe World Customs Organization (WCO) is an intergovernmental organization that helps member states communicate and co-operate on customs issues. The World Shipping Council is a member of the WCO's Private Sector Consultative Group. To learn more about the WCO, visit www.wcoomd.org/ie/En/en.html.

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Maritime Issues in ShippingMaritime Safety and Pollution

•An oil spill is the release of a liquid petroleum hydrocarbon into the environment, especially marine areas, due to human activity, and is a form of pollution. The term is usually applied to marine oil spills, where oil is released into the ocean or coastal waters, but spills may also occur on land.• Oil spills may be due to releases of crude oil from tankers, offshore platforms, drilling rigs and wells, as well as spills of refined petroleum products (such as gasoline, diesel) and their by-products, heavier fuels used by large ships such as bunker fuel, or the spill of any oily refuse or waste oil

http://www.uscg.mil/npfc/About_NPFC/opa.asp

http://environment.about.com/od/petroleum/a/oil_spills_and_environment.htm - effect of oil spill

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Maritime security- is concerned with the prevention of intentional damage through sabotage, subversion, or terrorism. - Maritime security is one of the three basic roles of the United States Coast Guard has gradually developed in response to a series of catastrophic events, which began in 1917.

There are three main maritime security activities conducted by the Coast Guard:

- Port Security.- Vessel Security.- Facility Security

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Port security -refers to the defense, law and treaty enforcement, and counterterrorism activities that fall within the port and maritime domain. - It includes the protection :

i. of the seaports themselves, ii. the protection and inspection of the cargo moving

through the ports, iii. and maritime security.- Internationally, port security is governed by rules issued by the International Maritime Organization and its 2002 International Ship and Port Facility Security Code. - Additionally, some United States-based programs have become de facto global port security programs, including the Container Security Initiative and the Customs

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International Ship and Port Facility Security (ISPS) Code - is an amendment to the Safety of Life at Sea (SOLAS) Convention (1974/1988) on minimum security arrangements for ships, ports and government agencies.- Having come into force in 2004, it prescribes responsibilities to: i. governments,

ii. shipping companies, iii. shipboard personnel, iv. port/facility personnel

→ to "detect security threats and take preventative measures against security incidents affecting ships or port facilities used in international trade."

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History of ISPS

* (IMO) states that "The International Ship and Port Facility Security Code (ISPS Code) is a comprehensive set of measures to enhance the security of ships and port facilities, developed in response to the perceived threats to ships and port facilities in the wake of the 9/11 attacks in the United States" (IMO).•Development and implementation were sped up drastically in reaction to the September 11, 2001 attacks and the bombing of the French oil tanker Limburg. The U.S. Coast Guard, as the lead agency in the United States delegation to the IMO, advocated for the measure. • The Code was agreed at a meeting of the 108 signatories to the SOLAS convention in London in December 2002. The measures agreed under the Code were brought into force on July 1, 2004.

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The ISPS Code is implemented through chapter XI-2 Special measures to enhance maritime security in the International Convention for the Safety of Life at Sea (SOLAS).The Code is a two-part document describing minimum requirements for security of ships and ports. Part A provides mandatory requirements. Part B provides guidance for implementation.The ISPS Code applies to ships on international voyages (including passenger ships, cargo ships of 500 GT and upwards, and mobile offshore drilling units) and the port facilities serving such ships.[4]

The main objectives of the ISPS Code are:To detect security threats and implement security measuresTo establish roles and responsibilities concerning maritime security for governments, local administrations, ship and port industries at the national and international levelTo collate and promulgate security-related informationTo provide a methodology for security assessments so as to have in place plans and procedures to react to changing security levels

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Offshore Installation

* Drilling rigs

* Natural gas platforms

* Oil platforms

* Offshore wind farms

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DSM 2302 SUBJECT OVERVIEW

ANATOMY OF SHIPPING

SUBJECT OUTLINE1.0 Introduction to shipping industry

1.1 Introduction to the shipping industry: understanding of ship size, cargoes carried, performance and general shipping market supply/demand trends 1.2 World political & economic issues 1.3 International institutions and their role in shipping 1.4 The role of the International Maritime Organization (IMO)1.5 Understanding of maritime issues in shipping perspective: pollution prevention, security, offshore installations and maritime transportation

2. Overview of Ship Acquisition and ownership2.1 The shipbuilding market 2.2 The sale and purchase deal 2.3 Newbuilding sale & purchase 2.4 Reading the market: the role of the shipbroker 2.5 Financing ship acquisitions Identifying the best finance deal

2.6 Ship acquisition and financing vessels

3.0 Geo political and economic change 3.1 Economic regulation of liner and shipping industry3.2 Globalization and challenges of shipping world3.3 Structural changes and regulation in shipping industry

4. Introduction to International Shipping Laws and Convention 4.1 Commercial law: charter parties and bills of lading 4.2 International convention4.3 Admiralty laws4.4 Trade protection laws4.3 International law of the sea

5. Technical Ship Management 5.1 Ships and their operational problems 5.2 The classification societies5.3 Shipowners’ bunker purchasing strategies

6. Overview of Commercial Ship Management 6.1 Ship management as a service 6.2 Crewing and training 6.3 Marine insurance overview 6.4 Marine claims 6.5 Protection and indemnity insurance 6.6 Post-Fixture: chartering operations6.7 Laytime, demurrage and despatch 6.8 Use of forward freight agreements

6. Overview of Commercial Ship Management 6.1 Ship management as a service 6.2 Crewing and training 6.3 Marine insurance overview 6.4 Marine claims 6.5 Protection and indemnity insurance 6.6 Post-Fixture: chartering operations6.7 Laytime, demurrage and despatch 6.8 Use of forward freight agreements

7. Overview of Shipping Markets 7.1 Dry bulk shipping 7.2 Transformation from liner shipping to container transportation7.3 Through transport concepts 7.4 Commercial & logistical aspects of container transportation 7.5 Ship & terminal operations 7.6 The chemicals and gases trades 7.7 The tanker market 7.8 Practical applications of Worldscale 7.9 The cruise shipping market

Main references supporting the course * Alan Edward Branch, Elements of Shipping, Routledge, 8th edition,2007

Additional references supporting the course * Brian Cudahy, Box Boats: How container ships changed the wordl ,Fordham University Press, 200

LEARNING OUTCOMES

Learning outcomesAt the successful completion of this subject, students are expected to: (a) Define features of shipping management and analyse issues presented in anotomy

topic (b) Relate a sensitivity to the ethical issues involved in business practice.(c) Identify realism and practicality as a foundation for good business judgment.(d) Describe anotomy of shipping discipline in an integrated form which reflects sound

business practices.(e) Apply approaches to defining, whether those problems are structured or unstructured.(f) Practice recognition and advance standing from relevant professional bodies and

other institutions.(g) Use the ability to communicate effectively and fluently in both written and spoken form

Learning Objectives

1. Features of shipping management and analyse issues presented in anotomy topic

2. Sensitivity to the ethical issues involved in business practices3. Foundation for good business judgement4. Shipping discipline in a integrated form which reflects sound business5. Problems are structured or unstructured6. Recognition and advance standing from relevant professional bodies and other institutions7. Communicate effectively and fluently in both written and spoken

form

ASSESSMENT

Assessment Methods and Types Quiz 10% Test 15% Assignment 25% Final Examination 50%

Why you study

0 5Prim 6

Sec 5

Uni

5

work

70Life ends

7.1% 22.8%

5 11 = 16 49

70%

How do you view your LIFE

Categories in the cognitive domain of Bloom's Taxonomy (Anderson & Krathwohl, 2001)

http://en.wikipedia.org/wiki/Bloom%27s_Taxonomy

Bloom's Taxonomy

Attendance and YOU

Attendance Procedure1 OBJECTIVESTo ensure that all lecturers (full-time and part-time), students and their parents/guardians are aware of, and in the case of lecturers implement, NMITs policy and procedures for monitoring and penalising poor attendance.2 SCOPEThis procedure defines the actions and responsibilities of the Academic Department specifically the Lecturers, Part-time Lecturers and Academic Assistant in monitoring student attendance and penalising poor attendance where students fail to attend for more than 80% of their classes for a particular module.

RecordsRECORDS1. Warning letter for non-attendance2. Barring letter for non-

attendanceL : LecturersPTL : Part-time LecturersAA : Academic AssistantAC : Academic CoordinatorREG : RegistrarHEU : Head of Exam UnitSA : Student AffairsM : Mentor

Your Parent will be notified too.

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