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LINER SHIPPING AND TRAMP
SHIPPING SERVICES
BALITIC EXCHANGE
GROUP No. 9
Megha Thakur
Bhargav
Ajinkya
Parth Chauhan
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What is liner
shipping?
Liner shipping is different from conventionalshipping because it uses containers of various
sizes 20 foot (6.09 m), 40 foot (12.18 m), 45foot (13.7 m), 48 foot (14.6 m), and 53 foot(16.15 m) to load, transport, and unload goods.
Liner shipping is a highly efficient method oftransporting goods. The container has made itpossible for large ships to be designed totransport huge quantities of material, increasingglobal trade dramatically.
Container ports are specially designed to loadand unload the containers quickly and efficiently.This makes the import and export of goodsaffordable for manufacturers and traders.
Before the invention of container shipping, goodswere unpacked and loaded onto the ships at the
port, taking up much more time, manpower andmoney.
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A standard container can hold
24,914 tin cans
Container capacity is measured in twenty-footequivalent units (TEU). This is the size of thestandard 20-foot long (6.09 m) container.
Facts about containers
Another standard size is the forty-foot (12.18 m)container (i.e. two TEUs). A forty-footequivalent unit (FEU) can be loaded with about20 tons of cargo.
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In addition to standard containers, there are alsospecialized types of equipment:
Different containersfor different cargoes
Open tops are used for easy load of cargo such
as logs, machinery and odd sized goods.
Flat racks can be used for boats, vehicles,machinery or industrial equipment.
Open sides may be used for vegetables such asonions and potatoes.
Tank containers transport many types ofliquids such as chemicals, wine and vegetableoil.
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How can container ships keepfood fresh?
Have you ever wondered how you can eat lambfrom New Zealand or sea food from Norway?
Special reefer containers exist that cancontrol temperatures, allowing everythingfrom meat, fruit and vegetables, to dairyproducts, chemicals and pharmaceuticals totravel across the world.
Reefers can keep goods frozen attemperatures as low as -60C. However, theycan also preserve goods at warmertemperatures if that is necessary.
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The containers are stacked on the ship with upto 8 containers stacked on top of each other ondeck. Below the deck a ship can stack up to 11containers on top of each other.
How do the boxesfit on the ship?
To make sure that the containers stay inplace during the voyage, twist locks are usedto connect the containers. A twist lock is adevice used for connecting two containers atthe corner posts through an interlocking
mechanism.
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What are the advantagesof Liner shipping?
1 it works on regular scheduled services.
2. Offers cargo space irrespective of volume.
3. Cost of Inventory is less
4. Low emission and environment friendly
Liner shipping offers: Passenger Shipping
Luxury Travel
Break Bulk Containers
Containers.
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Why dont we just transport goodsby airplane isnt that faster?
Transporting goods bycontainer ship is alsobetter for theenvironment.
It is estimated that onaverage a container shipemits around 40 timesless CO2 than a largefreight aircraft and threetimes less than a heavytruck.
Container shipping isalso estimated to be twoand a half times moreenergy efficient than railand 7 times more sothan road.
Container shipping isthe most efficient wayto transport largevolumes of goodsacross the world.
While airplanes arefaster, container shipscan carry more goodsin one trip. It would
take hundreds ofairplanes to carry allthe goods that can fiton just one largecontainer ship.
Transporting goods inlarge volumes makesit cheaper - we callthis economies of
scale.
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Big, impressive facts that youmight not know
Few people know very much about containershipping, but the scale of the industry is hugeand involves the whole world. The shipsthemselves are also massive in size.
The worlds biggest container ships are about1,300 feet long - thats nearly 400 meters or thedistance around an Olympic running track.
Many container ships can comfortably carry morethan 8,000 containers.
Container ships have the capacity to carryseveral warehouses-worth of goods.
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How Does Liner Shipping Works?Lets take an example:
http://www.worldshipping.org/about-the-industry/how-liner-shipping-works/the-step-by-step-process
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Tramp Shipping
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What is Tramp Shipping
The tramp, or general trader as she is often
called, does not operate on a fixed sailing
schedule, but merely trades in all parts of theworld in search of cargo.
Tramp Shipping is the shipping these tramps in
a Carter market
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Why tramp ships
Seasonal goods
Bulk carriage
On order
Irregular transports
Main Tramp Trades are: coal & coke, Iron ore,
Grain , Bauxite and Alumina & Phosphate rock
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Characteristics of Tramp Ship
Unspecialized type of vessel
Two to six holds, each with large unobstructed
hatches
Vary in Size
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Characteristics of Tramp Shipping
Unorganized
Bulk cargo carriers
Vessel follows the cargo Freight decided according to Supply Demand
Ballast Voyages are to be avoided
Supply and Demand meet at Charter market
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Exporter
Approches
agent
Exporter
approches
agent
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Types of Charter-Voyage
Specific vessel, specific cargo, specific port andspecific route.
Rights, duties and responsibilities of ship owners andcharterers are determined by the charter party.
The charterer should be responsible for the arrangementof the cargo, payment of freight calculated according tothe quantity of the cargo loaded or carried and otherexpenses concerned.
The ship owner possesses and controls the vessel and
takes charge of the operation of the vessel and themanning and management of crew. The shipowner should bear the operational expenses of
the vessel.
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Time Charter
The time chartering means that the shipownerprovides a designated manned ship to thecharterer, and the charterer employs the ship for aspecific period against payment of hire.
The ship owner should be responsible for themanning of crew and bears the wages andprovisions thereof.
The master shall be under the orders and
directions of the charterer as regards employmentand agency. If the charterer shall have reasonablecause to be dissatisfied with the conduct of themaster or officers, the shipowner shall on
receiving the complaint make a change in thea ointments if necessar .
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Bareboat Chartering
The bareboat chartering ordinarily means that
the vessel is put at the disposal of the charterer
for a long period employment without any
crew.
A time charter is distinguished from a bareboat
charter by the employment of the master and
crew. With a time charter the master and crewremain the employees of the shipowner,
although they will be subject to the directions
of the time charterer.
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Types of vessels
1 Dry Bulk Carrier
Capesize, Panamax, Handymax, Handysize
2 General Cargo Ship3 Tanker (VLCC, ULCC)
4 Container Ship (TEU)
5 Other Ships
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Difference between liner Shipping
and Tramp Shipping
Fixed Schedules
Fixed Freights
Operational cost is higher
Reliable service
Highly Sophisticated
Unfixed time Schedules
Changing Freights according tothe demand & supply
Comparatively low operational
cost
Efficient utilization of floor
space and the voyage
Comparatively lessSophisticated
Liner Shipping Tramp Shipping
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Baltic Exchange
International, self-regulated market for matching shipsand cargoes, buying or selling ships, trading andsettlement of physical and derivative contracts
Located in London
It traces its name to the Virginia and Baltick CoffeeHouse, London, established in 1744
Baltic provides daily freight market prices and maritimeshipping cost indices which are used to settle freightfutures (Forward Freight agreements or FFAs)
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Baltic Exchange
International, self-regulated market for matching shipsand cargoes, buying or selling ships, trading andsettlement of physical and derivative contracts
Located in London
It traces its name to the Virginia and Baltick CoffeeHouse, London, established in 1744
Baltic provides daily freight market prices and maritimeshipping cost indices which are used to settle freightfutures (Forward Freight agreements or FFAs)
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Baltic Exchange Dry Index (BDI)
BDI tracks worldwide international shipping prices of
various dry bulk cargoes BDI provides an assessment of the price of moving the
major raw materials by sea.
Considers more than 20 shipping routes measured on a
time charter and voyage basis BDI derived from :
The Baltic Exchange Handysize Index (BHSI)
the Baltic Exchange Supramax Index (BSI)
the Baltic Exchange Panamax Index (BPI) the Baltic Exchange Capesize Index (BCI).
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Daily Chart For Cape/Panamax/Supramax 4 Time
Charter Average Values(Avg of 4 major routes)
PERIOD RATES (Figures in USD per day)
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Everyday a group of International brokers decides current freightcosts on various routes
These rate assessments are then weighted together to create the
overall BDI and the size specific indices
BDI contains route assessments both on the basis of:
USD paid per ton carried - fuel, port and other voyagedependent costs are included
"USD paid per day - after voyage dependent costs arededucted(Time charter equivalent earnings)
Fuel (Bunkers) is the largest voyage dependent cost and moves withthe crude oil price
BDI doesnt consists of any speculative content as:
Trading is limited to members
parties securing contracts are those who have actual cargo tomove and those who have the ships
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Importance of Baltic Exchange
the index measures the demand for shippingcapacity versus the supply of dry bulk carriers
Also, index indirectly measures global supplyand demand for the commodities shipped
aboard dry bulk carriers
seen as an efficient economic indicator of futureeconomic growth and production
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Forward Freight Agreements
provides a means of hedging exposure tofreight market risk through the trading ofspecified time charter and voyage ratesfor forward positions
The main terms of an agreement willcover: (a) The agreed route. (b) The day, month and year of settlement.
(c) Contract quantity. (d) The contract rate at which differences will
be settled.
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Bibliography
Shipping Freight Forwarding and Global trade Operations by Mr. RAJIV SATHE
http://www.worldshipping.org/about-the-industry/how-liner-shipping-works
www.crowley.com/.../Shipping.../Liner-Container-Shipp... shippinginsouthafrica.wordpress.com/.../difference-between-a-liner-s...
http://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-workshttp://www.worldshipping.org/about-the-industry/how-liner-shipping-works