Maritime Transportation Management & Security

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What is the Goal or Purpose of Transportation? The goal of transportation is to transform the geographical attributes of freight, people or information, from an origin to a destination, conferring them an added value in the process. The specific purpose of transportation is to fulfill a demand for mobility, since transportation can only exists if it moves people, freight and information around. Otherwise it has no purpose. This is because transportation is dominantly the outcome of a derived demand.

Maritime Transportation Management & Security

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What is the main method of moving materials, partly finished goods and/or finished goods from point A to point B in a Global Economy? Roughly 90% of foreign trade moves via shipping containers. The balance of trade, such as oil, petrochemicals, various ores and agricultural products like grain typically move in bulk shipments.

Containerization
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Containerization refers to a system of moving cargoes based on a range of standard sized steel boxes that can be quickly transferred from one mode of transport to another. This concept was the idea of North Carolina truck driver Malcolm McLean, who after much experimentation patented the concept and a standard steel box design in 1956 and founded Sea-Land Shipping. In 1956, Break Bulk, or loose cargo cost $5.86 per ton to load aboard a ship using ILA Labor. Using an ISO shipping container, the cost was reduced to .16 cents per ton, a cost reduction in excess of 97%.

A converted T-2 Tanker the SS IDEAL X was the first containership, it carried 58 containers from Newark, NJ to Houston, TX in 1956.

Ocean Freight & Chartering

Firms have choices for Ocean Freight, depending upon the amount & type of cargoes as well as the ports of origin and destination.

Liner Services These are Common Carriers that operate on a Scheduled Route. Freight Rates are typically set by a conference of all carriers operating on the route and are posted. All carriers charge the same agreed rates to move cargoes on that route.
Tramp Vessels Any type of Dry Cargo Vessel not operating on a scheduled service, they may or may not be on a set Route. Tramp does not denote the age, condition, or type of vessel. It only indicates the non-conformity of their schedule.

Ocean Freight & Chartering

If a firms volume of cargo is sufficient they may need to charter a vessel Time Charter Vessels are Chartered for a specific period of time. There are 2 types of Time Charters - Demise (Bareboat) or Non-demise Voyage Charter Vessel is on hire from Port A to Port B Mostly Tankers with fees are based upon World Scale

Example of World Scale 100% Rates 2002 From Yokohama to: USD/ton Miles Adelaide, South Australia $10.60 10,574 Aden, Yemen $12.39 13,038 Chiba, Japan $2.90 50
*Actual rate negotiated can range from 1% WS1 to 1000% WS1000 of the above published WS100.

Ocean Freight & Chartering

Stowage Factor is a measure of density. It is expressed as how many cubic feet per ton (cubic meters per ton) is required to load a particular cargo. Dense cargos are known as Deadweight Cargoes whereas light, less dense cargoes are called Measurement Cargoes. Shippers then base fees on a cargoes weight or volume accordingly.

Stowage factors for common Cargoes

Type of cargo Iron ore Woodchips Containers TEU

Ft3/Ton 14 90 56105

M3/Ton .4 .25 1.63.0

Ocean Freight & Chartering

Broken Stowage is caused by either a cargoes density is too great and a vessel will reach its maximum draft but still have cargo space available or Volume available. Broken Stowage or unused space available can often be the result of a cargoes shape as well. With the exception of Bulk Cargoes there is always Broken Stowage for dry cargo vessels. (+/- 20%)

Ocean Freight & Chartering

Deadfreight is the opposite of Broken Stowage. It exist when all cargo space is filled but unused draft or displacement tonnage is available. A vessel that has neither Broken Stowage or Deadfreight is said to be FULL AND DOWN. It is not common to get a cargo or a combination of cargoes that puts a vessel full and down. Masters Deadfreight Statement Accounts for Weight of all Cargo, Fuel, Water, Stores onboard for Draft Surveys.

Hydrostatic Table for a curved hull form created using Archimedes Principle

Plimsoll Mark by ABS

Plimsoll Mark or Load Line

International Load Line Chart

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