Overview of shipping

SHIPPING CORPORATION OF INDIA

SCI is a government of india public
sector enterprises with its
headquarters in Mumbai.
Founded on 2 october 1961
Chairman and managing director :
BK mandal
Merger with jayanti shipping
company and mogul lines in 1973 &
1986 respectively

ADVANTAGES OF SHIPPING
EASIER TO TRANSPORT CARGO WHICH MAYBE OF ANY
SIZE OR WEIGHT
CONTRIBUTE LESS TOWARDS THE ENVIRONMENTAL
POLLUTION
SHIPS HAVE ALWAYS BEEN THE CHEAPEST MODE OF
TRANSPORTATION

MORE FUEL EFFICIENT

DISADVANTAGES OF SHIPPING
SLOWER METHOD OF TRANSPORT, NOT SUITABLE TO
TRANSPORT PERISHABLE GOODS
ONLY APPROPRIATE FOR WEIGHTY AND BULKY
CONSIGNMENTS
SHIPPING HAS BEEN UNDER PERIL OF PIRATES
FROM AN ACCIDENT IT IS IMPOSSIBLE TO GET BACK THE
CARGO

INCOTERMS
FAS (FREE ALONGSIDE SHIP) : THE SELLER MUST PLACE THE
GOODS ALONGSIDE THE SHIP.
FOB (FREE ON BOARD) : THE BUYER MUST ADVANCE
GOVERNMENT TAX IN THE COUNTRY OF ORIGIN AS
COMMITMENT TO LOAD THE GOODS ON BOARD A VESSEL
DESIGNATED BY THE BUYER. THE TERM IS APPLICABLE FOR
MARITIME AND INLAND WATERWAY TRANSPORT ONLY
BUT NOT FOR MULTIMODAL SEA TRANSPORT IN CONTAINERS
CFR (COST AND FREIGHT): SELLER MUST PAY THE COSTS
AND FREIGHT TO BRING THE GOODS TO THE PORT OF
DESTINATION. HOWEVER, RISK IS TRANSFERRED TO THE
BUYER ONCE THE GOODS ARE LOADED ON THE VESSEL
CIF (COST, INSURANCE AND FREIGHT): EXACTLY THE SAME
AS CFR EXCEPT THAT THE SELLER MUST IN ADDITION
PROCURE AND PAY FOR THE INSURANCE. MARITIME

SHIP MEASUREMENTS
BEAM - THE WIDTH OF THE SHIP
COMPLEMENT - THE FULL NUMBER OF PEOPLE REQUIRED TO OPERATE A
SHIP.
CUBE - THE CARGO CARRYING CAPACITY OF A SHIP, MEASURED IN CUBIC
FEET.
DISPLACEMENT - A MEASUREMENT OF THE WEIGHT OF THE VESSEL,
USUALLY USED FOR WARSHIPS.
DRAFT, LOADED - THE DEPTH OF WATER NECESSARY TO FLOAT A
VESSEL FULLY LOADED.
LENGTH - THE DISTANCE BETWEEN THE FORWARD MOST AND
AFTERMOST PARTS OF THE SHIP. IT CONSISTS:
LENGTH OVERALL (L.O.A.) - THE MAXIMUM LENGTH OF THE SHIP
LENGTH AT WATERLINE (L.W.L.) - THE SHIP'S LENGTH MEASURED AT THE
WATERLINE

TYPES OF SHIPS
BULK CARRIER SHIP
BULK CARRIER ARE A TYPE OF SHIP WHICH TRANSPORT
CARGOES IN LARGE QUANTITIES. THE CARGO
TRANSPORTED IN SUCH SHIP IS LOOSE CARGO I.E
WITHOUT ANY PACKAGING SUCH AS FOOD GRAINS, ORES,
COALS AND EVEN CEMENT.

CHEMICAL TANKER
A CHEMICAL TANKER IS A TYPE OF TANKER DESIGNED TO
TRANSPORT CHEMICALS IN
BULK.
OCEAN-GOING CHEMICAL TANKERS GENERALLY RANGE FROM
5,000 METRIC TONS DEADWEIGHT (DWT) TO 35,000 DWT IN SIZE
SPECIALISED COATINGS SUCH AS PHENOLIC EPOXY OR ZINC PAINT, OR
MADE FROM STAINLESS STEEL.

CLASSIFICATION
1.

TYPE 1 SHIP :

PRODUCTS WITH VERY SEVERE

ENVIRONMENTAL AND SAFETY HAZARDS WHICH REQUIRE MAXIMUM
PREVENTIVE MEASURES

2. TYPE 2 SHIP:

PRODUCTS WITH APPRECIABLY SEVERE

ENVIRONMENTAL AND SAFETY HAZARDS WHICH REQUIRE
SIGNIFICANT PREVENTIVE MEASURES

3.

TYPE 3 SHIP:

PRODUCTS WITH SUFFICIENTLY SEVERE

ENVIRONMENTAL AND SAFETY HAZARDS WHICH REQUIRE A

GAS TANKER
A GAS CARRIER (OR GAS TANKER) IS A SHIP DESIGNED TO
TRANSPORT LPG, LNG OR LIQUIFIED CHEMICAL GASES
IN BULK.

GAS CARRIER CODES

THE GAS CODES, DEVELOPED BY INTERNATIONAL
MARITIME ORGANIZATION APPLY TO ALL GAS CARRIERS
REGARDLESS OF SIZE. THERE ARE THREE GAS CODES:

1. THE IGC CODE (INTERNATIONAL CODE FOR THE

CONSTRUCTION AND EQUIPMENT OF SHIPS
CARRYING LIQUEFIED GASES IN BULK): APPLIES
TO THE GAS CARRIERS BUILT AFTER JUNE 1986
2. THE GC CODE( GAS CARRIER CODE): APPLIES
TO THE GAS CARRIERS BUILT BETWEEN 1976
AND 1986
3. THE EXISTING SHIP CODE: : APPLIES TO THE GAS
CARRIERS BUILT BEFORE 1977

TUG BOATS
A TUGBOAT (TUG) IS A BOAT THAT MANEUVERS VESSELS
BY PUSHING OR TOWING THEM.

NAVAL SHIP
A NAVAL SHIP IS A SHIP USED BY
A NAVY. NAVAL SHIPS ARE
DIFFERENTIATED FROM CIVILIAN SHIPS
BY CONSTRUCTION AND PURPOSE.

ROLL-ON/ROLL-OFF
ROLL-ON/ROLL-OFF (RORO OR RO-RO) SHIPS ARE VESSELS
DESIGNED TO CARRY WHEELED CARGO, SUCH
AS AUTOMOBILES, TRUCKS, SEMI-TRAILER
TRUCKS, TRAILERS, AND RAILROAD CARS, THAT ARE DRIVEN
ON AND OFF THE SHIP ON THEIR OWN WHEELS.

PASSENGER SHIP
A PASSENGER SHIP IS A MERCHANT SHIP WHOSE
PRIMARY FUNCTION IS TO CARRY PASSENGERS.

THE COMPOSITION OF
INTERNATIONAL SEABORNE
TRADE, 2012
19.80%
9.36%
3.05%
11.72%
11.05%
15.63%
29%

crude oil
petroleum products
gas
iron ore
coal
container
other dry

UNCTAD report

PARTICIPATION OF DEVELOPING COUNTRIES IN

WORLD SEABORNE TRADE, SELECTED YEARS
(PERCENTAGE SHARE IN WORLD TONNAGE)

MULTIMODAL TRANSPORT
MULTIMODAL TRANSPORT REFERS TO A COMBINATION OF
AT LEAST TWO MEANS OF TRANSPORT.
MULTIMODAL TRANSPORT OPERATOR: ANY PERSONS
WHO ON HIS OWN BEHALF OR THROUGH ANOTHER
PERSON WHO IS ACTING ON HIS BEHALF CONCLUDES A
MULTIMODAL TRANSPORT CONTRACT AND WHO ACTS AS
A PRINCIPAL NOT AS AN AGENT OR ON BEHALF OF THE
CONSIGNOR

EC PRESENTS 'BLUE BELT'

INITIATIVE FOR SHIPPING

BLUE BELT INITIATIVE WILL BRING THE SINGLE MARKET

TO THE SEAS AND CUT RED TAPE
BLUE BELT- A SINGLE TRANSPORT AREA FOR SHIPPING
ADOPTED ON 9 JULY 2013

LINER SHIPPING

FIXED SCHEDULE, PORTS AND ROUTES

VESSELS TERMED AS LINERS

GENERAL CARGO, CONTAINERS,
PASSENGERS

PRIMARILY IN FORM OF CONTAINERSHIPS AND

RO-RO

TRAMP SHIPPING
NO FIXED SCHEDULES, PORTS OR ROUTES
BASICALLY NEEDS-DRIVEN

TRADE ON SPOT MARKETS

DRY AND LIQUID CARGOES

Liner Shipping
Fixed schedules and routes which
publishes for customers
Fee charged is fixed

Tramp Shipping
No fixed rotes or schedules, available
at customers ease
Fee charged is not fixed and
depends on carrier, also handles
emergency or urgent deliveries
Do not covers any ports between the They can cover depending on the
fixed route
carrier to be delivered
Vessels may go partly occupied
They try to maximize their profits
Works like bus services
Works like taxi services

CONTRACT OF AFFREIGHTMENT
CONTRACT BETWEEN SHIP-OWNER AND CHARTERER

PRICE CHARGED FOR USE IS KNOWN AS FREIGHT

CARGO AND NOT THE VESSEL HOLDS A CENTRAL POSITION
NOT ALL COA ARE RELATED TO GOODS, BUT PASSENGERS AND
SCIENTIFIC RESEARCH

CANCELLATION CLAUSE
2 KINDS:
CONTRACT BY CHARTER PARTY
CONTRACT BY BOOKING-NOTE

CHARTER PARTY
THE DOCUMENTS CONTAINING ALL TERMS AND
CONDITIONS
RELATE TO A NAMED SHIP
CONTAIN ALL DETAILS; FREIGHT, LAYTIME, DEMURRAGE,
SPEED AND CONSUMPTION ETC.
VARIOUS TYPES; VOYAGE, TIME, DEMISE/BAREBOAT.

TYPES OF CHARTER PARTY

CHARTER BY VOYAGE(WIDELY USED)
WHEN SHIP HIRED FOR PARTICULAR VOYAGE
BOTH FIXED AND VARIABLE COSTS ARE PAID BY SHIP
OWNER ONLY
LAYDAYS/LAYTIME
LAYCAN
LUMPSUM CHARTER

CHARTER PARTY CONTD

CHARTER BY TIME
SHIP HIRED FOR PARTICULAR TIME PERIOD
FIXED COSTS(CREW, TECHNICAL OPERATION) BY SHIP OWNER BUT
VARIABLE COSTS BY CHARTERER

CHARTER BY DEMISE/BAREBOAT
POSSESSION UNDER CHARTERER

LIABLE TO PAY ALL THE OPERATING COSTS

CREW UNDER CHARTERER

BOOKING-NOTE
SIMPLER
REFERS TO CLAUSES AND CONDITIONS OF BILL OF LADING
GENERALLY FOR LINER TRADE
FORWARD VOYAGE IS TYPE OF BOOKING NOTE FOR
TRAMP TRADE

CONTAINERIZATION

WHAT IS IT ?
IT IS A SYSTEM OF INTER-MODAL
CARGO TRANSPORT USING
STANDARD ISO CONTAINERS THAT
CAN BE LOADED ON
CONTAINERSHIPS , RAILROAD
CARS/TRAINS AND TRUCKS.
AT THE BEGINNING CONTAINERS WERE MADE OF
STEEL FRAMES WITH EITHER ALUMINIUM , STEEL
OR FIBRE GLASS.
CONTAINER CAPACITY OF SHIPS, YARDS ,

5 Standard length of Container

53 Feet

20 Feet

48
Feet

40 Feet
45 Feet

PICTORIAL FLOWCHART

Shipper books
shipment with
shipping company

Company advises port

depot to release empty to
Shipper

At Shippers premises
shipment stuffed into
Container

Stuffed container is
returned to port by
Shipper

Port depot releases

empty to Shipper

Released empty is taken

to Shippers premises

Stuffed laden box upon

return to port is stacked
in CY

laden box is loaded to vsl

Ship sails out with the

shipment

At Shippers premises
shipment is stuffed into
Container

laden box taken to vsl

side for loading

PROCESS OF
CONTAINERISATION

Security

Benefit
s

Speed

Economical

No
product
tampering

Standard
transport
product

Lesser
wear
and
tear

TYPES OF CONTAINERS
The exterior dimensions of all containers conforming to ISO standards are 20
feet long x 8 feet wide x 8 feet 6 inches high or 9 feet 6 inches high for high
cube containers.
VENTILATED CONTAINER
20 Ideal for cargo requiring ventilation
like organic products
BULK CONTAINER
20 For bulk cargoes

TYPES OF CONTAINERS
..CONTD.
TANK CONTAINER
20' For transportation of liquid
chemicals and food stuffs
DRY FREIGHT CONTAINER
20' and 40' General purpose
container
HIGH CUBE CONTAINER
40' and 45' 9'6" High - For over
height and voluminous cargo

TYPES OF CONTAINERS
..CONTD..
OPEN TOP CONTAINER
20' and 40' Removable
tarpau
cargo

for top loading of over height

FLAT RACK
20' and 40' For over with
heavy cargo
PLATFORM
20' and 40' For extra length
and
heavy cargo

TYPES OF CONTAINERS
..CONTD
INSULATED CONTAINER
20' and 40' For additional
insulation of sensitive cargo
REEFER CONTAINER
20' and 40 & 40HQ
For Temperature controlled
cargo
cooling, freezing or heating of
foods or chemicals

Door Header

REAR

Cam & keeper

TIR
Plate
Locking Bar
Weight
Decal

Guid
e

J-Bar

Hing
e
Handle
Hub

CSC
Plate

Catch &
retainer
Handl
e
Gask
et

Brack
et

Cone
Protector
Corner
Fitting
Left

Door Sill

Right

CHALLENGES WITH
CONTAINERIZATION

CONTAINERIZED CARGO FLOWS ALONG MAJOR

TRADE ROUTES, 1995-2006 (IN MILLIONS OF TEUS)

Source: people.hofstra.edu/jeanpaul_rodrigue/.../107_2.2._Rodrigue

FORMS OF MULTIMODAL
TRANSPORT OPERATION
LAND-SEA-LAND

ROAD-AIR-ROAD
A COMBINATION OF AIR CARRIAGE WITH TRUCK TRANSPORT.

SEA-AIR-SEA
THIS COMBINES THE ECONOMY OF SEA TRANSPORT AND THE
SPEED OF AIR TRANSPORT.

CONT.
GOODS OF SEASONAL DEMAND ARE GENERALLY
TRANSPORTED BY THIS METHOD.
FREQUENT AIR/SEA ROUTES

SEA TRAIN
GEOGRAPHICALLY CONNECTED RAIL SYSTEM CAN BE
CONNECTED BY THE USE OF AN OCEAN CARRIER.

ADVANTAGES OF MULTIMODAL
TRANSPORT
MINIMIZES THE TIME LOSS.
PROVIDES FASTER TRANSIT OF GOODS.
REDUCE THE BURDEN OF DOCUMENTATION.
SAVE COSTS.

LINER SHIPPING
Liner shipping is the service of transporting goods by means of high-capacity,
ocean-going ships that transit regular routes on fixed schedules.
Approximately 400 liner services in operation today, most providing weekly
departures from all the ports that each service calls.

Liner vessels transport primarily in the form of containerships and roll-on/roll-off

ships
Carry about 60 percent of the goods by value moved internationally by sea each
year.

Keeping Prices In Control

Joint terminals or terminal contracts
Joint mainline services
Joint feeder services
Joint purchase or ownership of ships

Joint purchase and usage of containers

 Joint intermodal, rail or trucking operations

Joint container depots
Jointly-managed pools of containers and equipments
Joint EDI systems
Interchange of empty containers.

The Baltic Exchange

 The Baltic Exchange is the world's only independent source of maritime market
information for the trading and settlement of physical and derivative contracts.
The exchange publishes seven daily indices:
Baltic Dry Index(BDI)
Baltic Panamax Index(BPI)
Baltic Capesize Index (BCI)
Baltic Supramax Index (BSI)
Baltic Handysize Index (BHSI)
Baltic Dirty Tanker Index (BDTI)
Baltic Clean Tanker Index (BCTI)