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Outline
I. Introduction to shipping
1. Introduction
2. Infrastructures
II. Methods of vessel charter
1. Liner charter
2. Voyage charter
I. Introduction to shipping
1. Introduction
Advantages:
Large quantities of freight can be safely stored and
move in one go
Shipping is a viable and cost- effective way for
moving a large amount of goods over long distances
(cheap freight)
Shipping is an important factor within the international
transport chain
Disadvantages
Slow speed
Probability of risk occurring
2. Infrastructure
2.1. Merchant vessels
2.1.1. Definition
A merchant vessel is a ship that transports
cargo and passengers for profitable
purpose.
(The Logistics and maritime economics
Institute)
II. Infrastructure
2.1. Merchant vessels
2.1.2. Specifications
Ships name
Port of Registry: A vessels home port, port of registry, or hailing
port, is its port of origin as shown on its registration documents and
lettered on the stern of the ship's hull
Flag:
Conventional flag
Flag of convenience
Ship owner
Dimensions:
Length over all (LOA): the greatest length of the ship, from fore to aft.
Beam: the greatest breadth of the ship, from port to starboard
2.1.2. Specifications
Classification
Draught/Draft: the distance from the bottom of the keel to
the waterline
Light Draught
Loaded Draught
Draft
Load lines
2.1.2. Specifications
Deadweight Tons (DWT) - The difference between
heavy displacement and light displacement- A measure
of the ship's total carrying capacity.
Cargo Deadweight Tons - The weight remaining after
deducting fuel, water, stores, dunnage and such other
items necessary for use on a voyage from the
deadweight of the vessel.
The gross register tonne (GRT)- The total cubic
measurements of the ship (including engine room,
bunker tanks for fuel and water, seamens
accommodation)
The net register tonne (NRT): is the available cubic
capacity for cargo
2.1.2. Specifications
Cargo space
Grain space: is the space which the ship has
available for cargo in bulk
Bale space: is the cubic contents of the ship
that is available for the transport of goods
packed in bales, boxes, crates,
2. Infrastructure
2.2. Sea Ports
2.2.1. Definition
A port is a facility for
receiving ships and/or
transferring seamen or
cargo. It is usually found
at the edge of an ocean.
2.2.2. Roles
-To serve ships
-To serve cargo
A. Liner Charter
1. Definition of Liner/ Liner shipping
company
- A liner service is defined as one that
operates to a regular sailing schedule,
transporting goods along a definite route,
to fixed ports of call
- A liner is a vessel that is engaged in this
kind of transportation
A. Liner Charter
2. Liner characteristics
Vessels operate among ports to a regular
sailing schedules
All relationships are regulated by bill of lading
All terms and conditions of carrier must be
accepted by cargo owner, without negotiation
Liner freight is fixed and be informed in liner
bound freight tariff
A. Liner Charter
3. How a liner service is run?
Liner Planning Division: planning of new trade routes and
fleet expansion
Ship Management Division: overall running of vessels
Liner Division: planning and logistics responsibilities for
services, vessel schedules, container equipment planning,
overseas offices and agencies, documentation and data
communications, and handling of claims and insurance
Finance Division: companys financial results, auditing and
performing treasury functions
IT/EDI Division: computer systems and data interchange
with suppliers and contractors
Human resource Division: manpower planning, staff
benefits, and all industrial relations
A. Liner Charter
4. What is a liner agent?
A person or company that acts on the shipping
lines behalf and carries out their business while
the vessel remains in the agents jurisdiction
Marketing/sales
Documentation
Operations
Finance/
Administration
Information
Technology
A. Liner Charter
5. The order of liner charter
Step 1: Shipper let a customs broker or forwarder find a
suitable ship
Step 2: The customs broker or forwarder chooses a carrier
Step 3: The customs broker or forwarder and the carrier
negotiate some main terms and conditions: cargo name,
quantity of goods, ports of loading, ports of discharge,
issuing documents.
Step 4: The customs broker or forwarder inform to cargo
owner of the negotiated results
Step 5: Cargo is transported to the loading port by the
shipper
Step 6: After receiving goods, the carrier responsible for
issuing bill of lading to the shipper.
Issuing time:
Shipped on Board
Received for shipment
Functions
Evidence of the contract of affreightment
Confirmation of shipment
Document of title (title of ownership)
Received for shipment B/L: is B/L that is issued after the carrier
receive the shipment, pledge to ship on board, and transport the
shipment by the named vessel.
+) the goods arrive at the port of departure before the vessel
+)the goods arrive at the loading port when the vessel has not
completed all the necessary conditions to berth the port (pratique,
customs).
+) Deliver the goods through a middle man: a forwarder, a
multimodal transport operator, or a consolidator.
Trading liability: the carrier shall properly and carefully load, handle, stow,
carry, keep, care for, and discharge the goods carried.
Issuing B/L: after receiving the goods into his charge, the carrier or the
master or agent of the carrier shall, on demand of the shipper, issue to the
shipper a B/L.
Act of war
Quarantine restrictions
Delay in delivery (for Hamburg rules only): the notice has been
given in writing to the carrier within 60 consecutive days after the
day when the goods were handed over to the consignee
B. Voyage Charter
1.
Definition and features of Tramp vessel
1.1. Definition: Tramp vessel carries the goods among 2 or many
oceans ports depend on the demand of the cargo owner. The
carriage is based on a transport contract.
1.2. Features:
Tramp vessel sail only when there is a sufficient quantity of cargo
on board; they do not operate on a fixed sailing schedule.
These vessels generally carry cargo in bulk, such as coal, grain,
timber, sugar, ore, fertilizer, cement clinker, copra, bauxite and
phosphates
Tramp vessels speed is relatively slower than liners one
Carriage, freight, loading and discharging expense conditions are
clearly prescribed in the contract of carriage
B. Voyage Charter
2. Voyage Charter Party
2.1. Definition
The charter party is the written agreement between the ship owner
and the charterer and is in fact the enactment (or charter) of their
negotiations that contains the agreed terms and conditions.
2.2. Standard forms
Recommended charter parties offer numerous advantages:
- they are used commonly;
- they are suited for several traffics and are everywhere available;
- their wordings is nearly watertight and they are generally accepted
by the courts;
- they are without any doubt fair to both parties.
- Uniform standard forms: GENCON, NUVOY, SCANCON
- Specific standard forms: NORGRAIN, CEMENCO, CUBARSUGAR,
RUSSWOOD, EXONVOY, MOBILVOY, SHELLVOY
Note: or so near thereto as she may safely get and lie always
afloat
Time to pay:
- In advance: Freight Prepaid/ Freight payable at Loading port
- Freight to Collect:
+) Freight payable on commencement of discharge
+) Freight payable concurrent with discharge
+) Freight payable on completion of discharge)
+) freight payable on actual and proper completion of discharge
Note: W, W, W, W
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