Shipping Course

8/21/2019 Shipping Course

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BY

KUWAIT

TEL: 2421701

Web Site : www.alghanimgroup.com

COPY RIGHTRESERVED


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OBJECTIVE

This course has been designed toprovide participants with overview of

participants with good understanding of

enhance their career prospect


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TOPICS

SHIPPING TERMINOLGY

SEA TRANSPORT

MARITIME GEOGRAPHY

CARGO VESSEL TYPES

THE LINERS

LINER CONFERENCES

CHARTERING

SHIPPING DOCUMENTATION

BILL OF LADING

MULTIMODAL TRANSPORT MARINE INSURANCE & GENERAL AVERAGE


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HIPPIN TERMIN L


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A

Act of God:

Accidents of a nature beyond human control such as flood, lightning or hurricane usuallyquoted as 'force majeure'.

Agency Fee:Fee payable by a ship-owner or ship operator to a port agent.

A person or organization authorized to act for or on behalf of another person ororganization.In the shipping field, an Agent is a corporate body with, which there is an agreement toperform particular functions on behalf of them at an agreed payment. An Agent is either a

Average:

In marine insurance: a loss or damage to or in respect of goods or equipment.

Average Adjusters:In general average affairs average adjusters are entrusted with the task of apportioningthe loss and expenditure over the parties interested in the maritime venture and todetermine which ex enses are to be re arded as avera e or eneral avera e.


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B

Ballast

Materials solely carried to improve the trim and the stability of the vessel. In vessels usually,

Bill of Lading (B/L, plural: Bs/L)A document which evidences a contract of carriage by sea.

General cargo conventionally stowed as opposed to unitized, containerized and Roll On-RollOff cargo.

Bulk CargoUnpacked homogeneous cargo poured loose in a certain space of a vessel or container e.g.oil and grain.

Bulk Carrierng e ec vesse es gne to carry omogeneous unpac e ry cargoes suc as gra n,

iron ore and coal.


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C

CAF:

Currency Adjustment Factor Car o:

Goods transported or to be transported, all goods carried on a ship covered by a B/L. Carrier:

The party undertaking transport of goods from one point to another Carrier Haulage:

T e in an transport service, w ic is per orme y t e sea-carrier un er t e terms an c

conditions of the tariff and of the relevant transport document.

Certificate of Classification:A certificate issued b the classification societ and statin the class under which a vesselis registered.


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C

Certificate of Origin

A certificate, showing the country of original production of goods. Frequently

connection with regulating imports from specific sources. Charter Party

A contract in which the ship-owner agrees to place his vessel or a part of it at, ,

he receives a freight per ton cargo, or to let his vessel for a definite period ortrip for which a hire is paid. Charterer:

an aircraft and thus hires or leases a vessel or an aircraft or a part of thecapacity thereof.

ClaimA char e made a ainst a carrier for loss dama e or dela


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C

Classification Society

An Organisation, whose main function is to carry out surveys of vessels, its purpose beingto set and maintain standards of construction and u kee for vessels their en ines andtheir safety equipment. A classification society also inspects and approves the constructionof P&O Nedlloyd containers.

Clean Bill of Lading

condition of the goods to be transporte Consignee

The party such as mentioned in the transport document by whom the goods, cargo orcontainers are to be received.

ConsignmentA separate identifiable number of goods (available to be) transported from one consignor toone consignee via one or more than one modes of transport and specified in one singletransport document.


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C

Consignor:

Shipper Consolidate

To group and stuff several shipments together in one container.

Consolidated ContainerContainer stuffed with several shipments (consignments) from different shippers for

.

Container DepotStorage area for empty containers.

Container Freight Station (CFS) aci ity at w ic export L L cargo is receive rom merc ants or oa ing stu ing into

containers or at which (import) LCL cargo is unloaded (stripped) from containers anddelivered to merchants.


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C

Container Terminal

Place where loaded and/or empty containers are loaded or discharged into or from a meansof transport.

Container Yard (CY)A facility at which FCL traffic and empty containers are received from or delivered to theMerchant by or on behalf of the Carrier.Note:Often this ard is used to receive oods on behalf of the merchant and ack these incontainers for FCL traffic.

Currency Adjustment Factor (CAF)Adjustment applied by shipping lines or liner conferences on freight rates to offset losses or

.


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D

Damaged Cargo Report

Written statement concerning established damages to cargo and/or equipment.

Dangerous GoodsGoods are to be considered dangerous if the transport of such goods might cause harm,risk, peril, or other evil to people, environment, equipment or any property whatsoever.

Slots paid for but not used.

Deep TankTank fitted and equipped for the carriage of vegetable oil (e.g. palm oil and coconut oil)

. -different kinds of liquid in adjacent tanks. Deep tanks may be equipped with heatingfacilities in order to carry and discharge oil at the required temperature


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D

Delivery Order

A carrier's deliver order ne otiable document is used for s littin a B L after surrenderin different parcels and have the same function as a B/L.

Demurrage

1. A variable fee charged to carriers and/or customers for the use of Unit Load Devices's owne y a carr er eyon e ree me o s pmen .

2. Additional charge imposed for exceeding the free time, which is included in the rate andallowed for the use of certain equipment at the terminal.


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D Detention Charge

Charges levied on usage of equipment exceeding free time period as stipulated in the pertinent inlandrules and conditions rec e very

Direct discharge from vessel onto railroad car, road vehicle or barge with the purpose of immediatetransport from the port area (usually occurs when ports lack adequate storage space or when ports are notequipped to handle a specific cargo).

Sums paid out by a ship's agent at a port and recovered from the carrier Double bottom

Construction of the bottom of a ship whereby a generally watertight space is formed between the shell andan inner bottom placed at a sufficient height above the baseline to allow access and to reduce risks due togrounding or colliding.

DraftThe draft of a vessel is the vertical distance between the waterline and the underside of the keel of thevessel. During the construction of a vessel the marks showing the draft are welded on each side of the

vessel near the stem, the stern and amidships.

DunnageStowage material, mainly timber or board, used to prevent damage to cargo during carriage.


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E

Endorsement

The transfer of the right to obtain delivery of the goods of the carrier by means of theconsignee's signature on the reverse side of a bill of lading. If the name of the newconsignee (transferee) is not stated, the endorsement is an open one which means thatevery holder of the document is entitled to obtain delivery of the goods.

EquipmentMaterial resources necessar to facilitate the trans ort and handlin of car o. Trans ortequipment does under the given circumstances not have the ability to move by its ownpropulsion (e.g. sea container, trailer, unit load device, pallet).

Estimated Time of Arrival (ETA) .

Estimated Time of Departure (ETD)The expected date and time when a certain (airport is left.

Ex ort LicenseDocument granting permission to export as detailed within a specified time


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F

FTL

Full Truck Load, an indication for a truck transporting cargo directly from supplier toreceiver.

FeederA vessel normally used for local or coastal transport (for carriage of cargo and/orcontainers) to and from ports not scheduled to be called by the main (ocean) vessel,directl connectin these orts to the main ocean vessel.

First CarrierThe carrier who actually performs the first part of the air transport (air cargo). Flat Rack Container

A container with two end walls and open sides.


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F

Force Majeure

Circumstance which is beyond the control of one of the parties to a contract and whichmay, according to the terms and conditions, relieve that party of liability for failing toexecute the contract.

Free In Liner Out (FILO)Transport condition denoting that the freight rate is inclusive of the sea carriage and thecost of discharging, the latter as per the custom of the port. It excludes the cost of loadingand if a ro riate stowa e and lashin .

Free In and Out (FIO)Transport condition denoting that the freight rate excludes the costs of loading anddischarging and, if appropriate, stowage and lashing.

Single freight which is charged irrespective of the commodity.

Freight Invoice

An itemised list of goods shipped and services rendered stating fees and charges.


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F

Freight Manifest

A (cargo) manifest including all freight particulars.

Freight PrepaidFreight and charges to be paid by the consignor.

Freight Ton .

Full Container Load (FCL)A general reference for identifying container loads of cargo loaded and/or discharged atmerchants' premises.

FumigationTo expose certain spaces to the action of fumes in order to disinfect or kill vermin. Forcontainers done in line with national legislation.


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G Gantry Crane

A crane or hoisting machine mounted on a frame or structure spanning an intervening space, which oftentravels on rails.

Garments On HangersClothes in containers on hangers and hung from rails during transit, reducing the handling required for thegarments.

General Car oCargo, consisting of goods, unpacked or packed, for example in cartons, crates, bags or bales, often

palletized. General cargo can be shipped either in break-bulk or containerized. General Purpose Container

A container used for the carriage of general cargo without any special requirements for the transport andor the conditioning of the goods.

Gross Tonnage (GRT)The measure of the overall size of a vessel determined in accordance with the provisions of theinternational convention on measurement of vessels usually expressed in register ton.

Gross Weight . .

Gross Weight of ContainerTotal weight of container including cargo (in kilograms).


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H Hague Rules

International convention for the unification of certain rules, relating to Bills of Lading (1924). These Rulesinclude the description of responsibilities of Shipping Lines

ague- s y u esSet of rules, published in 1968, amending the Hague Rules.

Hamburg RulesUnited Nations Convention on the carriage of goods by sea of 1978 adopted in 1992.

Haulage

The inland carriage of cargo or containers between named locations/ points. Heavy Lift

Single commodity exceeding the capacity of normal loading equipment and requiring special equipmentand rigging methods for handling.

HinterlandThe inland area served by a certain port.

House to House Transport .

HullOuter shell of a vessel, made of steel plates or other suitable material to keep water outside the vessel.


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I

Insurance CertificateProof of an insurance contract

Intermodal TransportThe movement of goods (containers) in one and the same loading unit

handling of the goods themselves in changing modes.

An United Nations agency concerned with safety at sea. Its workincludes codes and rules relating to tonnage measurement of vessels,

load lines ollution and the carria e of dan erous oods.Its previous name was the Inter-Governmental Maritime ConsultativeOrganization (IMCO).


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J

Jetty ,

harbors or coasts. It is sometimes used as a landing-pier.


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K

KnotUnit of measurement for the s eed of a vessel e ual to a nauticalmile (= 1,852 meters) per hour.


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L

Latitude

The angular distance of a position on its meridian north or south from',

latitude').

Less than Container Load (LCL)

For operational purposes a LCL (Less than full container load) containeris considered a container in which multiple consignments or partsthereof are shipped.

Written statement in which one party undertakes to compensateanother for the costs and consequences of carrying out a certain act.

The issue of a letter of indemnity is sometimes used for cases when aallowed to do so. Within P&O Nedlloyd the issue of letters of indemnityare contrary to the company's instructions.


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L Lighterage

The carriage of goods within a port area by a barge, e.g. from a vessel to a quay.

g we gWeight of an empty vessel including equipment and outfit, spare parts required by the regulatory bodies,machinery in working condition and liquids in the systems, but excluding liquids in the storage tanks,stores and crew.

Liner In Free Out LIFOTransport condition denoting that the freight rate is inclusive of the sea carriage and the cost of loading,

the latter as per the custom of the port. It excludes the cost of discharging. Liner Terms

Condition of carriage denoting that costs for loading and unloading are borne by the carrier subject thecustom of the port concerned.

Lloyd's Register of ShippingBritish classification society.

LongitudeThe an ular distance of a osition on the e uator east or west of the standard Greenwich meridian u to180o east or west.


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M

Manifest

Document, which lists the specifications of goods, loaded in a means oftransport or equipment for transportation purposes.

As a rule cargo the agents in the place of loading draw up manifests.Note:For a shipping company a manifest represents a cumulation of Bills of

.

Mate's ReceiptA document si ned b the chief officer of a vessel acknowled in the recei t ofa certain consignment on board of that vessel. On this document, remarks canbe made as to the order and condition of the consignment.

u t mo a ransportThe carriage of goods (containers) by at least two different modes of transport.


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N

Negotiable

In terms of documents, 'negotiable' means that e.g. a Bill of Lading is handed.endorsed in blank or endorsed to a person and that person acquires, by this transfer certainrights vis-?is the goods e.g. is entitled to take possession of the goods.

Non Vessel O eratin Common Carrier NVOCCA party who undertakes to carry goods and issues in his own name a Bill of Lading for such

carriage, without having the availability of any own means of transport.

Notice of Readiness

Written document or telex issued by the master of a vessel to the charterer's advising themthe moment when a vessel is ready to load or discharge.


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O

OwnerThe le al owner of car o e ui ment or means of trans ort.


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P

P & I Club:

A mutual association of ship-owners who provide protection against liabilities by means ofcontributions

Particular Average:A fortuitous partial loss to the subject matter insured, proximately caused by an insuredperil but which is not a general average loss. Particular average only relates to damageand/or expenses which are exclusively borne by the owners of a vessel which has sustained

. . ,damaged in transit.

Port of DischargeThe port where the cargo is actually discharged (unloaded) from the sea (ocean) goingvesse .

Port of LoadingThe port where the cargo is actually loaded on board the sea (ocean) going vessel.

Pre-carriageThe carriage of goods (containers) by any mode of transport from the place of receipt tothe port (place) of loading into the ocean vessel (main means of transport).


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Q

Quotation

Amount stated as the rice accordin to tariff for certain services to beprovided or issued to a customer with specification on conditions forcarriage.


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R

Rate

1. The price of a transport service. Rebate

That part of a transport charge which the carrier agrees to return.

Roll-on Roll-off (RoRo)

ys em o oa ng an sc arg ng a vesse w ere y e cargo s r ven on

and off by means of a ramp.


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R

Reefer Containerunit, absorption unit etc.) to control the temperature of cargo.

Register Ton

register ton equals 100 cubic feet (2.83 cubic meter). The gross (bruto)tonnage comprises all spaces below the main (tonnage) deck and theenclosed spaces above the main (tonnage) deck less exempted spaces.The net tonna e consists of the ross tonna e less exem tions like ballasttanks, engine room, living quarters etc. The register tonnage is mentioned onthe tonnage certificate.

Revenuemounts o ncome stemm ng rom t e prov s on o transport serv ces.


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S

Salvage

The savin or rescue of a vessel and or the car o from loss and ordamage at sea.

A timetable including arrival/departure times of ocean- and feedervessels and also inland transportation. It refers to named ports in as ecific vo a e ourne within a certain trade indicatin the vo a enumber's). In general: The plan of times for starting and/or finishingactivities.


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S

Seaworthiness

Fitness of a vessel to travel in o en sea mostl related to a articularvoyage with a particular cargo.

'

Statement of the master of a vessel before (in the presence of)competent authorities, concerning exceptional events which occurreddurin a vo a e.


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S

Shipment

A separately identifiable collection of goods to be carried.

ShipperThe merchant (person) by whom, in whose name or on whose behalf a contract of carriageof goods has been concluded with a carrier or any party by whom, in whose name or onwhose behalf the oods are actuall delivered to the carrier in relation to the contract ofcarriage.

StowageThe placing and securing of cargo or containers on board a vessel or an aircraft or of cargon a conta ner.

Stowage PlanA plan indicating the locations on the vessel of all the consignments for the benefit ofstevedores and vessel's officers.


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T Tare Weight of Container

Mass of an empty container including all fittings and appliances associated with thatparticular type of container on its normal operating condition

TariffThe schedule of rates, charges and related transport conditions.

Twenty Foot Equivalent Unit (TEU)

n o measuremen equ va en o one wen y oo con a ner

Time CharterA contract whereby a vessel is let to a charterer for a stipulated period of time or voyage,for a remuneration known as hire, generally a monthly rate per ton deadweight or a dailyrate.The charterer is free to employ the vessel as he thinks fit within the terms as agreed, butthe ship-owner continues to manage his own vessel through the master and crew whoremain his servants.

Statement, drawn-up by the ship's agent at the loading and discharging ports, which detailsthe time worked in loading and discharging the cargo together with the amount of laytimeused.

Cargo carrying surface below the main deck dividing a hold horizontally in an upper and a

lower compartment.


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U

Ultra Large Crude Carrier (ULCC)

A vessel desi ned for the carria e of li uid car o in bulk with a loadincapacity from 250.000 till 500.000 DWT.


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V

Very Large Crude Carrier (VLCC)

A vessel designed for the carriage of liquid cargo in bulk with a loading capacity. . .

VesselA floating structure designed for the transport of cargo and/or passengers

oyage

A journey by sea from one port or country to another one or, in case of a roundtrip, to the same port. Voyage Charter

-cargo from a specified port or ports to another port or ports for a remunerationcalled freight, which is calculated according to the quantity of cargo loaded, orsometimes at a lump sum freight.

Voyage NumberReference number assigned by the carrier or his agent to the voyage of thevessel.


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W

War Risk

Perils of war or warlike operations, such as capture, seizure, arrests, restraints of kings,'pr ncesses an peop e, os es, c v war, m nes, orpe o s. ar r s s are no covere

under a policy for marine perils and must therefore be covered under a separate policy forwar risks.

Way

Non-negotiable document evidencing the contract for the transport of cargo.

WharfA place for berthing vessels to facilitate loading and discharging of cargo.


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SEA TRANSPORT


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SEA TRANSPORT Definition:

.measured by tons / miles (the weight carried multiplied by the length of the voyage). Thevalue of a commodity is not its price or its cost but its utility , can be invariable increasedby transport for example, coal which is underground has no value , but ounce transportedto a person freezing in winter it can have considerable value

Characteristic Of Sea Transport:

1. Sea transport is slow ships carrying raw material (tramp) move at- - - .

2. Sea transport is cheap because e it can take advantage of economics of scale, largeships can reduce the cost per unit carried

3. Sea transport connect land which separated by water


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SEA TRANSPORT

Pattern of seaborne trade:

World seaborne trade increased strongly in 2004,reaching 6.76 billion tons ofloaded goods. The annual growth rate, calculated with the provisional dataavailable for year 2004, reached 4.3 per cent. Total maritime activities measuredin ton-miles increased to 27,635 billion ton-miles, compared with25,844 billion

ton-miles in 2003. The world merchant fleet expanded to 895.8 milliondeadweight tons (dwt) at the beginning of 2005, a 4.5 per cent increase.


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Development of international seaborne trade, selected years

Million of Tons


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International seaborne trade for selected years

Million of Tons loaded


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SEA TRANSPORT Shipping markets:

World seaborne trade in cargo (things to be moved) splits into three markets.

1.The Liner Market:This deals with general cargo which is usually relatively expensive compared with bulks and the linerships run on scheduled routes with fixed tariff and condition

2.The Dry Cargo Tramp Market:

Tramps, in shipping terms relates to the way the ship tramps from place to place where the marketdrawn it .Tramps carry mainly ship load of bulk materials , the main commodities or Grain, Coal etc .The freight rates and conditions are negotiable as per Charter parties.

3.The Tanker Market:Tankers are specialized trumps being designed to carry liquids in bulk. The oil trade routes are limited.This market contains 2 main groups ,Large tankers carry the crude oil and smaller carry the refinedproducts .


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SEA TRANSPORT

(Billions of ton-miles)


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AR VE EL TYPE


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CARGO VESSEL TYPES Until the 20th Century, ships generally, were all-purpose cargo vessels, with very little specialisation (with

the exception of tank vessels which first appeared in the 1880s). All cargoes were carried in general

purpose holds, or on deck. Modern commercial vessels are designed and built to carry specific cargo types.built to carry. For example, a "bulk carrier" is specially designed to carry cargo "in bulk" and the hatchcover and hold design is focused on the carriage of raw dry cargo goods, such as coal, grain, iron ore andbauxite, which are simply poured into cavernous holds then grabbed and bulldozed out at the port ofdischarge.Tankers carry liquid cargo in tanks the most obvious example is the well-known oil tanker, but even within

, ,oil. Other liquid cargoes would include petroleum products, chemicals and yes, even wine! 2 recent hybrid

designs of tanker carry Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG), both of whichneed to be kept under pressure and at low temperature to maintain the cargo in a liquefied state. A furtherhybrid is the Floating Production, Storage and Offloading unit (FPSO), which is usually a large tanker(maybe a converted old VLCC, but now brand new specialized FPSOs are being built) specifically designedor e o n us ry, wor ng o s ore w ere an ons ore ac y o process an s ore o s ore o s eeme

impractical.Container ships (a revolutionary idea in the past 50 years) carry their cargo in standard size containers,normally either 20 ft units (TEU) or 40 ft units (FEU), for speed of loading and discharge. A moderncontainer ship can discharge a cargo in as many hours as it used to take in the equivalent number of days.

This "brainchild" of Malcolm McLean, (a former New Jersey truck driver) found no interest among shipowners in t e 1940s an 1950s, so e ui t is own to prove t e concept. Wit in 10 years, t e containership revolution had started. From just a few hundred containers, modern ships can carry many thousands.


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CARGO VESSEL TYPES


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BULK CARRIERS


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BULK CARRIERS

Bulk carriers ("bulkers"), are the great work,

cargoes in huge cavernous holds, such ascoal, iron ore, grain, sulphur, scrap metal.Currently there is a huge demand for thesevessels, driven by the extraordinary

.of iron ore into China have boosted the

earnings of bulk carrier owners as freightrates ave gone t roug t e roo intouncharted territory.


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TANKER


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TANKER

Tankers are designed to carry liquid cargoes (not just

tanker unwelcome attention and largely unjustifiedcriticism. Oil tankers come in two basic flavors, the

products tanker, which carries the refined products,such as petrol, gasoline, aviation fuel, kerosene and. ,

bunkering tanker (used for refueling larger vessels)of 1000 DWT tons to the real giants: the VLCC (Very

- ,the ULCC (Ultra Large Crude Carrier) of over 300,000DWT


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REEFER


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REEFER

Refrigerated Cargo Carrying Vessels,

meat and other food products across the sea.

Perhaps the most famous of these types ofv l r h n n rri r r inbetween the Caribbean and Europe. They aresleek and fast, as their trade demands, withcooling (refrigeration) equipment to keeptheir cargoes fresh


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LNG CARRIER


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LNG CARRIER

The LNG carrier (Liquefied Natural Gas) and its

products of the late twentieth century. LNG and LPGare the preferred fuel types of certain countries fort eir in ustria power nee s. Japan is one suc

country, and so LNG needs to be transported to

transported. In its natural state, LNG is a gas, so totransport it, it needs to be either pressurised into a

,temperature (simple application of Boyle's Law inphysics!).


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CAR CARRIERS


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CAR CARRIERS

The car carrier or more correctly theP.C.C. (Pure Car carrier) or P.C./T.C.

described as a beauty of the seas, yet' ,

built to carry large numbers of cars.


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CONTAINER SHIPS


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CONTAINER SHIPS The Containership or "Box ship" is the great success story of the last 40 years.

General cargo was historically carried in dry cargo vessels, without any

. ,laborious task, due to the varying shapes, sizes, weights and fragility of thenumerous cargoes being carried on any one vessel. The idea of standardisingthe carrying box, or container at 20 feet long was a breakthrough that allowedfor vessels to be designed to carry these standard sized boxes, and for docksideequipment also to be designed to lift, stack and store these specific shapes.So,from a "back of the fag-packet" idea was born the container ship. Initially, thesewere small vessels of up to 10,000 DWT, carrying no more than a few hundredTEU (Twenty foot Equivalent Units), but have grown in size as the success and

' .are being built to take 8,000 T.E.U., with plans to build 10 - 12,000 TEU ships.

These vessels are built for speed, and can reach upwards of 28 knots, movingcargoes around the world. Globally storing and returning empty boxes has

Through-transport or inter-modal transport, means that these containers can beoffloaded from a ship, and rapidly loaded onto trains.


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DRY CARGO VESSELS


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DRY CARGO VESSELS Until vessels started to be built to carry specific cargoes, all

vessels were simply general or dry cargo vessels, i.e. built tocarry any an a cargoes e er n rums an a es or onpallets. Such cargoes were put in general holds with nospecialisation. The role of the general/dry cargo vessel began to

,decline of these general vessels has accelerated since the arrival

of containerisation (in the 1960's). Not only are container shipsable to carry greater volumes of cargo in standard shaped cargocon a ners, e me spen oa ng an sc arg ng as eendramatically reduced. Whereas a dry cargo vessel may take 3 -4 days to load or discharge, a container ships the same in a

.the largest (in pure numbers) of cargo carrying vessels, they areoften smaller (rarely above 50,000 Gross tons) than thespecialized vessels that are slowly replacing them.


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RO-RO VESSELS


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RO-RO VESSELS

The Ro-Ro, or more fully the Roll on - roll off vessel,

,in two types; the passenger ro-ro and the Cargo ro-ro.Passenger ro-ros ave ecome common sig ts

wherever people want to travel over water with their

that most people have traveled on. Usually a reardoor (but sometimes a bow door) allows for vehicles

,the passenger accommodation areas.


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LIVESTOCK CARRIERS


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LIVESTOCK CARRIERS

The carriage of live animals around theworld is performed by specialist vessels,

large numbers of cattle and sheep in.

trade is largely from Australia to the

e as or . . s a. ne mo ernvessel may carry up to 125,000 sheep.


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Vessel Size Groups (inea we g t tons


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Major ship size groups include:

workhorses of the dry bulk market, the Handy andmore recent Hand max t es remain o ular shi swith less than 60,000 dwt. The Handymax sector

operates in a large number of geographically,

minor bulks including steel products, forest productsand fertilizers. The vessels are well suited for small

ports wit engt an ra t restrictions an a solacking transshipment infrastructure. This category is

-


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Panamax: Represents the largest acceptable size to transit thePanama Canal, which can be applied to both freighters and tankers;

,slightly more than 32 meter. The average size of such a ship is about65,000 dwt. They mainly carry coal, grain and, to a lesser extent,minor bulks, including steel products, forest products and fertilizers.

Capesize: Refers to a rather ill-defined standard which have the

common characteristic of being incapable of using the Panama or Suezcanals, not necessarily because of their tonnage, but because of theirsize. These shi s serve dee water terminals handlin raw materialssuch as iron ore and coal. As a result, "Capesize" vessels transit viaCape Horn (South America) or the Cape of Good Hope (South Africa).Their size ranges between 80,000 and 175,000 dwt. Due to their sizethere are onl a com arativel small number of orts around the worldwith the infrastructure to accommodate such vessel size.


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Aframax: A tanker of standard size between 75,000

(Average Freight Rate Assessment) tanker ratesystem.

,

limitations of the Suez Canal, has evolved. Before1967, the Suez Canal could only accommodate tanker, .

closed between 1967 and 1975 because of the Israel- Arab conflict. Once it reopened in 1975, the

, .enlargement to enable the canal to accommodate200,000 dwt tankers is being considered.


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VLCC: Very Large Crude Carriers, 150,000 to 320,00

terminals since many can accommodate their draft.They are used in ports that have depth limitations,

the North Sea. They can be ballasted through theSuez Canal.

, ,550,000 dwt in size. Used for carrying crude oil onlong haul routes from the Persian Gulf to Europe,

,the Strait of Malacca. The enormous size of thesevessels require custom built terminals.


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HE LINER


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THE LINERS

It started through the last century when

scheduled services between ports. They then

quality service than the selling ships andi h ir hi h r fr i h r nattract shippers with high value cargo whowere prepared to pay extra for speed andpredictable delivery dates


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THE LINERS In the sixtieth the conventional general cargo ship

. Then containerization has had effect and it will

continue to have on shi in industr .Containerships have a larger , faster, and a quicker turn

around than the ships they replace. The containers

which has increased for more than any shipping costand to increase productivity comparing port time for

genera cargo s ips an container s ips


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LINER FREIGHT RATES

Liner freight rates are relate to a tariff ofsomewhat or some sort .They are, far lessvolatile that those in tramp shipping .

In many cases that any increases in the tariffmay only take place after period of notice .

To over come short run variation in cost

such as chan es in bunker rices or in rate of exchanges, liner operators generally resortsurchar es t ical of which are BAF AND CAF


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LINER NEFEREN E


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LINER CONEFERENCESConferences are organization of shipping lines operating on particular route. Forexample, the Transpacific West Bound Freight Agreement operates on the route

- .The conferences are formal agreement between shipping lines on route settingprices and sometimes pooling profits or revenues, managing capacity, a locatingroutes and offering loyalty discounts

Conferences can be either open or closed to accept new members

Conferences issue a freight tariff Conferences may also allocate output among their members by either cargo

quo as or a ng quo as Conferences employ policing agencies to check on adherence to the tariff


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LINER CONEFERENCESConference Practice

The conferences set rices often based on lo alt arran ement the use twokind of loyalty contracts; The contract rates and differ rebate .The shipper signin agreement to deal in exclusively with the conference and in turn receivediscounts on the freight rate

The conferences response to an entrant by lowering the rate on one of itsvessels to compete with the entrant until entrant lost money and left the market

n e as eca e , e con erences ave os e r mpor ance an ec ne nthe number of the members


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HARTERIN


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CHARTERING CharterpartyA charterparty is a contract of lease of a ship in whole or in part for a long

or short period of time or for a particular voyage. It has been said that its origin lies in the

mediaeval Latin "carta partit " or "charta partita" or "charta divisa", where an agreementwas torn into two pieces and one half was given to each party. Proof of the whole contractwas no doubt difficult if one party was obstinate - modern methods of photocopying thecontract for each party seem preferable. A charterparty is part contract of hire(affreightment) and part contract of transport (carriage). The proportion of"affreightment" decreases as one moves from a demise charter, to a time charter andt en to a voyage c arter, w i e t e proportion o carriage increases rom a emise c arterthrough a time charter to a voyage charter.Affreightment is essentially placing a ship at

the disposal of another party, while transport is essentially the carrier taking charge ofgoods. Hire is the consideration paid under demise and time charterparties; freight is theconsideration paid under voyage charterparties and bills of lading.

a) Charterparty by demiseA charterparty by demise is a contract by which the ship-owner places a ship in the hands of the chartered who assumes possession and control.The consideration paid by the chartered is hire which is payable at specified intervalsduring the term of the charter. Under a demise charterparty, the ship-owner appoints themaster and the crew althou h the are aid and controlled b the demise chartered.

A bareboat charter is a demise charter whereby the bareboat chartered names, pays andcontrols the master and the crew.

Among the most common forms of demise charter are the "Baltic and InternationalMaritime Council Standard Bareboat Charter" (Code Name: "Barecon '89"); and the "BIMCO

" " "


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CHARTERING

b) Consecutive voyage charterA

consecutive voyage charter party is a voyagecharterparty for a determined number ofconsecutive voyages.

c) Slot charter - A charterparty whereby theshipper leases one or more "slots," eachcapable of holding a 20-foot container,

aboard a container ship.


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CHARTERING

d) Space charter It is a contract whereby a

capacity of carriage is put at the disposal ofthe shipper for the carriage of his goodsduring a period of time under particular terms

and conditions. Whether it is a contract ofire or a contract o carriage or even a

contract of agency like a freight

orwar er s contract, epen s on its terms.


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CHARTERING e) Time charterpartyA time charterparty is a contract

whereby the ship-owner places a fully equipped and manneds p a e sposa o e c ar ere or a per o o me or aconsideration called "hire" payable at specified intervals duringthe term of the charter. Among the most common forms of time

Baltime. A "time charter for a trip" is a time charter for a

particular voyage or voyages, rather than for a period of years,days or months, with hire payments made at periodic intervalsas un er a me c ar er par y , ra er an re g e ng

payable, at the completion of the voyage, on the quantity ofcargo carried


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CHARTERING Main terms

Many other detail of the ship including total deadweight grain

and bale cubic ,draft, number of decks hold and hatches,number and lifting capacity of derricks ,crane etc

Rate of hire expressed in days or months

Delivery place

Re-deliver lace

Delivery time ex: not before certain date

C G


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CHARTERING f) Voyage charterpartyA voyage charterparty is a

-the carrying capacity of a ship at the disposal of thecharter (the voyage chartered) for the transport ofgoo s agree upon, on one or more voyages, or a

consideration called "freight" based on the quantity

the voyage. Among the most commonly used form isthe "Baltic and International Maritime Council

.

CHARTERING


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CHARTERINGMain Contract term:

The cargo and the quantity the ship carry

The loading and discharge ports

a e o re g

Lay days and canceling ex: loading not to commence notbefore a certain date with charterers having the option tocancel the charter if the ship is later than the second date.

The rates of loading and discharging

Demurra e and dis atch

Charter party forum to be used

Total commission in involve

DOCUMENTATION


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DOCUMENTATION

Documentation used in internationaltrade performs a number of separate

the following categories: instruction; .In this section we will be dealing with

ose ocumen s w c are use ninternational trading activity.

BILL OF LADING


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BILL OF LADINGFUNCTION

It is evidence that a contract of carriage exists.

It is a receipt for goods, showingprima facie thatthe have been received into the char e of acarrier.

It is a document of title which allows title to the

r rr y rdelivery of the bill of lading.

th bill f l di


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the bill of lading

name and address of the shipper description of cargo, including identifying

, ,

contents, gross weights and volume; r f hi m n port of discharge; details of frei ht includin whether it is to

be "prepaid" (at port of despatch) or"payable at destination" (freight collect);

th bill f l di


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the bill of lading Consignors name and address which may be that of the

buyer. Alternatively bills of lading may be made out to showo or er n e cons gnee ox or o e or er o ...

Notify party's name and address - often an agent acting onbehalf of the consignee at the port of destination. However,

' " "box where "order" bills of lading are applicable

terms of sale;

shipped on board the named vessel; number of original bills issued;

.

Princi al notations on bills of

l di


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ladingClean bills and claused bills

A "clean" bill of lading is one in which no notation is shown onthe document relating to cargo having been received by the line

quantity. Thus, standard printed bills of lading usually bear the

wording "Shipped (or received for shipment) in apparent goodorder and condition". If no clause to the contrary is entered, thes are sa o e c ean. n e case w ere e cargo s no e

to be wet, damaged or otherwise in doubtful condition orquantity, bills of lading will be issued "claused" (or "dirty"),

shipped under a claused bill, consignees may reject them or,alternatively, banks may not accept such bills of lading forpayment purposes.

Received bills and shi ed

bills


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bills As has already been said above, a bill of

delivered into the charge of a shipping line.

lading may state "Received for shipment..."n will i n n h lin r iagents. Although this shows that the goodshave moved out of the exporter's charge into

that of the carrier, it does not show thatactual shipment has taken place.

Through bills of lading


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Through bills of lading

The "through" bill of lading conceptallows door-to-door shipments to be

necessary following the development of. ,may cover ocean shipment, plus inland

ranspor y o er mo es,

Combined trans ort bills

of lading


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of lading Similar to a through bill of lading, the combined

carriage to be covered by a single document and aclearly defined single set of conditions of carriage toinc u e t e use o roa an or rai s ipment at eit er

end of the sea leg. This document will, when issued,'combined transport bill of lading to the othertransport modes. Freight forwarders operating as

-issue this type of document.

Grou a e and house bills

of lading


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of lading The concept of groupage - combining a number of individual

consignments into a complete container load for shipment - has

een eve ope over many years y re g orwar ersoperating services between two inland points in differentcountries working in conjunction with an overseas office or

.is issued by the shipping lines showing the sending forwarder as

the shipper and the receiving forwarder as the consignee. Theforwarder thereafter issues his own house bills to individualexpor ers. ese ouse s ecome e con ro ng ocumenfor the release of the cargo at destination and enable theexporter, if required, to negotiate these with his customer in

.

Grou a e and house bills

of lading


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of lading

It is important to note that a "house" bill of

lading does not have the same status as anocean bill issued by a shipping line as it is nota document of title, in the same sense of the

word, as an ocean bill. However, it is capableo negotiation, an is o ten accepta e tobanks for letter of credit purposes when this

as een stipu ate in t e cre it at t e time itis opened.

Ne otiation of bills of

lading


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lading

The bill of lading is a negotiable document

which allows title to goods to be transferredby endorsement and delivery. This facilitygives one or other parties to the transaction

control over title to the goods and for thisreason etters o cre it o ten stipu ate certaintypes of bill of lading in order for this control

to e exercise . T ree asic types oendorsement are possible:

Endorsement by consignee


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Endorsement by consignee In this case the bill of lading is completed as below: Shi er box in bill of ladin : Actual shi er ex orter Consignee box in bill of lading: Actual consignee (buyer) Notify box in bill of lading: Consignee's agent at port of arrival.

consignee to present himself in person to the line to take

delivery of the goods or to endorse the bill of lading on thereverse side to allow his agent to do so and to deliver the goodso m. us e cons gnee exerc ses con ro over w o a es e

goods in charge at the destination port.

"To order" bills of lading


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To order bills of lading Bills of lading made out "to order" are completed as below: Shi er box in bill of ladin : Actual shi er ex orter Consignee box in bill of lading: "To order" Notify box in bill of lading: Actual consignee (buyer)

,lading in order for title to the goods to be transferred to the

consignee. Thus the bill of lading is useless to the consigneewithout this endorsement. This is a useful safeguard againsts e ng acc en a y ransm e o uyers rec y. ear y,

should this happen the buyer would not be able to take deliveryof the goods and the bill of lading would have to be returned to

.of lading completed in this manner are also said to be "To orderblank endorsed".

To order of (bank)


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To order of (bank) In this case, the bill of lading is completed as follows:

Consignee box in bill of lading To the order of (bank)

The bank is the party which carries out theendorsement in this instance and which thereforeexercises control over the goods. Thus, if the bankwishes to ensure that the buyer has actually paid for

,endorse the bill of lading when payment is made.

Sea waybills


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Sea waybills Sea waybills offer a non-negotiable alternative to the bill of

lading. Generally speaking, they embody the Hague-Visby Rules.

a ew excep ons ey are no nego a e an are,therefore, not usable as a means of transferring title to goods.They are useful for companies that trade internationally with

exports is not a problem. A freight forwarder might use them to

control groupage cargo. The sea waybill can thus be sentforward with the goods allowing the consignee to takemme a e e very. e ega pro ec on o ere o e s pperunder a sea waybill is thought by some to be inferior to thatoffered under a bill of lading. However, being a relative new

, .

Letter of guarantee


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Letter of guarantee Letter of guaranteeA written

un erta ng, or etter o n emn ty,usually provided by a bank, promisingto hold the carrier harmless, up to a

certain sum, for claims that may arisefrom the delivery of goods to aparticular person who is unable to

surrender the original bills of lading inreturn for the oods.

Letter of indemnity


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Letter of indemnity Letter of indemnityA written undertaking by a

the carrier may incur for having issued a clean billof lading when, in fact, the goods received were not

usually a central document in a fraud, whereby the

shipper and carrier knowingly misrepresent to third

the time of shipment or the bad order of the packing,or whereby they issue duplicate bills of lading to

.should not be condoned by courts and are generallyheld ineffective as against third parties.


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M RITIME GEOGR PHY

MARITIME GEOGRAPHY


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MARITIME GEOGRAPHY Definition:

Studying seas and costal area which you have to find your way round to pickup and deliver your cargoes.

The distance in shipping are always given in nautical miles which equal to 1852 meters

Latitude and Longitude:

Latitude Is used for measurin how far North or South and Lon itude how far east and west. Time is alsoIs function of Longitude this for every 15 you move east you advance your watch one hour and vice versafor westerly movement

Weather

Ports

Water depth and tides

Domains of Maritime

Circulation


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Circulation

Domains of Maritime

Circulation


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Circulation Oceanic masses and rivers are the two major

components of maritime circulation. Oceanicmasses account for 71% of the terrestrialsurface. The four major oceans relevant to

maritime circulation are: the Pacific (165mi ions square m , t e At antic 2 mi ionsquare km), Indian (73 million square km)

an t e Me iterranean .5 mi ion squarekm).


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MULTIM DAL TRAN P RT

MULTIMODAL TRANSPORT


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MULTIMODAL TRANSPORT Introduction:

,wide.The world fleet of fully cellular container ships continued to expand substantially in 2004 in terms of bothnumb of ships and their TEU capacity; by the beginning of 2005 there were 3,206 ships with a totalcapacity of 7,165,352 TEUs, an increase of 5 per cent in the number of ships and 11.3 per cent in TEUcapacity over the previous year, Ship sizes also continued to increase.Containerized cargoes are packed ounce at the factory door than at every change in transport mode, thereby reducing direct cost as well as the ship time at the port

Multimodal transport:The containerization of cargo allowed cargoes to be easily and safely transferred from one mode oftransport to another. Merchants and their agents physical involvement in the carriage of goods wasreduced to handing them over at the point of departure, and ensuring someone would receive them at thedestination.

International multimodal transport is defined in the 1980 Multimodal Convention ast e carriage o goo s y at east two i erent mo es o transport on t e asis o a mu timo a transport

contract from a place in one country at which the goods are taken in charge by the multimodal transportoperator to a place designated for delivery situated in a different country.(24)

This definition should be read together with the definition of the multimodal transport operatorany person who concludes a multimodal transport contract and who acts as principal, not as an agent of the

,responsibility for the performance of the contract.



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The constituent elements of a multimodal carriage of goods are thus:

contract between consignor and multimodal transport operator whereby the multimodal transport operator agrees to arrange an accept responsi i ity or the transport of the consignors goods from X place to Y place by more than one mode of transport w e r g o su con rac some or a o e egs o carr age o

another carrier



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THE APPLICABLE LAW :The law with regard multimodal transport, it has tobe demonstrated what law actually governs this

.

1. the loss or damage of goods carried or which oughtto have been carried in a ship

2. the carriage of goods in a ship, or any agreement

3. any container and any agreement relating to anycontainer



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Different modes of carriage are governed by different laws. A multimodalcontract of carriage will thus often be subject to different regimes of liability.For example carriage by road from Vienna to Hamburg and by sea to Londonw e su ec o e ague s y u es or e sea carr age an eConvention for the road carriage. Liability depends on whether the leg duringwhich the damage occurred can be identified. The provisions of these Rulesalso form the basis of many combined transport bills of lading in use today.

The Rules divide liability according to whether the place of damage is knownor unknown. If the place of loss is known then the applicable mandatorycarriage regime applies. If there is no mandatory carriage regime, or the

,

used. This system of liability is drawn from the Hague Visby Rules. Noconvention creating a uniform system of liability is presently in operation



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International Conventions: CMR (Convention on the International Carriage of Goods by Road, 1956) , Hague Rules, 1924

Hague Visby Rules (Hague Convention as amended by the 1968 and 1979 Protocols) Hamburg Rules (UNCITRAL Convention on the Carriage of Goods by Sea, 1978) - , Multimodal Transport Convention (UN Convention in the International Multimodal

Transport of Goods, 1980)

UN Convention on Safe Containers, 1972

International Carriage by Air, 1929 as amended by the Hague Protocol, 1955) the Guatemala Protocol 1971

the Montreal Protocol 1975



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SDR=Special Drawing Rates

THE WAY FORWARD


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The ultimate goal of the carriage of goods is the promotion of trade by allowing businessthe opportunity to get it's products to any market on the planet at a reasonable price.Multimodalism seeks to achieve that goal by reducing the consignors'/consignees'

(merchants') risk in transporting their goods. This is achieved, firstly by minimizing thechance of the cargo being physically damaged and secondly by reducing the chance thatthe merchant will be unable to recover in the case where cargo is damaged through thefault of the carrier.

The reduction of the risk of cargoes being physically damaged is achieved by packing thegoods in a strong steel container and by standardising the vessels, vehicles and cranes

which handle these containers.

In t e event t at t e cargo is actua y amage , t e merc ants ris is re uce in t at ecan look to a single person, the multimodal transport operator, to make good his loss. Inthis respect the multimodal transport contract was a giant leap forward for merchantsallowing complete control over who accepts responsibility for the safe carriage of cargo.(88)This single contractual carrier (MTO) responsibility significantly reduces a merchants risk ofav ng to recover rom a company w t no assets, or rom av ng to recover n an

inconvenient jurisdiction.


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MARINE IN URAN E

MARINE INSURANCE


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Marine insurance

.Nationwide Marine Insurance Definition, published by the National

Association of Insurance Commissioners, includes imports, exports,

commercial property floaters as marine insurance

Coverage for these types of ocean transportation exposures: ships orhulls; goods or cargo; earnings (such as freight, passage money,

,indemnity). This insurance may be purchased by the vessel owner orany party interested in or responsible for insurable property by reason

.

MARINE INSURANCE


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transportation insurance

transit by air, rail, truck, barge or ship from a starting locationto a final destination.

door-to-door coverage

Transit insurance that covers a shipment of merchandise from theor g na po n o manu ac ure o s na es na on.

MARINE INSURANCE


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Marine insurance provides coverage against four types of losses corresponding to the fourmajor classes of ocean marine insurance

Hull & Machinery Insurance covers ship-owners either on basis of voyage policy or atime policy against total loss (actual or constructive), damage to the ship in particularaverage and general average sacrifice, expenses to prevent loss by way of sue and labor

,(either three fourths or four fourths) and expenses associated with claims.

The cover is against ordinary risks (perils of the sea and other named perils) or against the

named perils in the war and strike clauses. Hull and Machinery including Liability Disbursements Increase Value

Chartered Freight Charter Hire Insurance Premiums

MARINE INSURANCE


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Protection and Indemnity:P&I coverage is essentially liability insurance that protect theship-owner for the loss of income that would have been earned upon completion of thevoyage.

BASIC COVERAGE

personal injuries to third parties, passengers, crew, stevedores, persons on another ship,persona injuries arising out o carriage o cargo or containers, repatriation an su stitutionof crew, loss of effects, shipwreck unemployment indemnity, stowaways and refugees andlife salvage;

navigational and operating claims such as collisions (either one fourth or four fourths),dama es to fixed and floatin ob ects ollution wash dama e towa e liabilit undercontracts for hire of cranes, wreck removal and quarantine;

cargo claims including collision liability to cargo carried in an entered ship and generalaverage and salvage;

miscellaneous liabilities which include fines and confiscation, inquiring expenses, expenses.

MARINE INSURANCE


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Marine Cargo Insurance

occurred to the goods during the insured voyage as mentionedin the certificate of insurance and provided said losses oramages are covere y e nsurance con ons as agree

between the Assured and Underwriters and consigned in the

insurance contract.

MARINE INSURANCE


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BASIC COVERAGE

caused in the course of transit by natural calamities--heavy weather, lightning,tsunami, earthquake and flood. In case a constructive total loss is claimed for,the Insured shall abandon to the company the damaged goods and all his rightsand title pertaining thereto. The goods on each lighter to or from the seagoing

. "Constructive Total Loss" refers to the loss where an actual total loss appears to

be unavoidable or the cost to be incurred in recovering or reconditioning the

goods together with the forwarding cost to the destination named in the policywould exceed their value on arrival. Tota or Part a Loss cause y acc ents-t e carry ng conveyance e ng

grounded, stranded, sunk or in collision with floating ice or other objects as fireor explosion.

(3)Partial loss of the insured goods attributable to heavy weather, lightning andor tsunami where the conve ance has been rounded stranded sunk or burnt

irrespective of whether the event or events took place before or after suchaccidents.

(4)Partial or total loss consequent on falling of entire package or packages intosea during loading, transshipment or discharge.

minimizing a loss recoverable under the policy, provided that such cost shall notexceed the sum Insured of the consignment so saved.

MARINE INSURANCE


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(6)Losses attributable to discharge of the insured goods at a port ofdistress following a sea peril as well as special charges arising from

port of call or refuge. (7)Sacrifice in and Contribution to General Average and Salvage

Charges.-

reimbursed by the cargo owner under the Contract of Affreightment"Both to Blame Collision" clause.

2.With Average(W.A.) . . . ,

insurance also covers Partial losses of the insured goods caused byheavy weather, lightning, tsunami, earthquake and/or flood.

3.All Risks . . . . .

above, this insurance also covers risks of loss of or damage to theinsured goods whether partial or total, arising from external causes inthe course of transit.

MARINE INSURANCE


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Freight insurance: When a vessel is lost this coverageindemnifies the ship-owner for the loss of income that would

ave een earne a e en o e voyage.

e o ow ng proper n orma on requ re o o a n nsurancequotation:

argo escr p on an azar ous Quantity and packaging Loading port and destination

Ocean vessel (including date of build, flag and size) Value of the goods being shipped Ex ected date of shi ment

MARINE INSURANCE


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Cargo Claims Documents :

Insurance Certificate or Policy

Bill of Lading

Shi er's Invoice

Packing List

Survey Report' -

Copies of correspondence exchanged with the Carrier


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ENERAL AVERA E

GENERAL AVERAGEA A t i i i f i t l A ti l


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Average: A term in marine insurance referring to a loss. A particularaverage is a partial loss.

Particular Average :A fortuitous partial loss to the subject matterinsured, proximately caused by an insured peril but which is not a

expenses which are exclusively borne by the owners of a vessel whichhas sustained damage as a result of e.g. heavy weather or by the

owners of the cargo, which has been damaged in transit.

General Average Abbreviation: G/A Intentional act or sacrificewhich is carried out to safeguard vessel and cargo. When a vessel is indanger, the master has the right to sacrifice property and/or to incurreasona e expen iture. Measures ta en or t e so e ene it o anyparticular interest are not considered general average.

GENERAL AVERAGE


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A legal principle which traces its origins in ancient maritime law, general average.

three elements which are clearly stated by Mr. Justice Grier in Barnard v.Adams:

"Ist. A common danger: a danger in which vessel, cargo and crew allparticipate; a danger imminent and apparently 'inevitable,' except by voluntarily

incurring the loss of a portion of the whole to save the remainder. "2nd. There must be a voluntar ettison actus or castin awa of some

portion of the joint concern for the purpose of avoiding this imminent peril,periculi imminentis evitandi causa, or, in other words, a transfer of the perilfrom the whole to a particular portion of the whole.

"3rd. This attem t to avoid the imminent common eril must be successful".

GENERAL AVERAGEl b d


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general average bond :

the goods to pay a proportion of the general average.

CUSTOMERS NEED


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