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OCEAN SHIPS

AND SHIPING
GLOBAL
TRANSPORTATION
SUMMARY
LOGISTICS
INFRASTRUCTURE
PORT FACILITIES
WAREHOUSES
COMMUNICATIONS
UTILITIES
BANKING
PANAMA AND SUEZ
CANAL
AIRPORT FACILITIES
ACCESSIBILITY
COMUNICATIONS
TECHNOLOGY
PORT COST
STRUCTURES
Dockage
Wharfare Charges (movement charges)
To the carrier
To the shipment
Free time and Wharf demurragem(after free time)
Miscellaneous Charges
Water
Electricity
Tow Away
Services & Rates Not Specified
Late Charges
Intermodal Container Lift Fee
Sea Link
TYPES OF OCEAN
CARRIES

PRIVATE FLEETS
TRAMPS (CHARTERED OR LEASED
VESSELS)
LINER CARRIES
TYPES OF CARGO
BULK
IS LOADED BY SHOVEL, PUMP, BUCKET, OR SCOOP IS IN FREE FORM
AND MOST BE CONTAINED
BREAK-BULK
IS THE OTHER TYPE OF CARGO, ALSO CALLED GENERAL, OR PACKAGED,
CARGO. IT HAS HIGH VALUE PER UNIT OF WEIGHT, IS USUALLY
MANUFACTURED OR PROCESSED, AND MOVES BY NUMBER OR COUNT.
NEO-BULK
HAS SOME CHARACTERISTICS OF BULK AND SOME CHARACTERISTICS
OF BREAK-BULK CARGO. IT IS USUALLY WORTH MORE ON A PER-KILO
BASIS AND IT OFETEN MOVES ON SPECIALIZED OCEAN VESSEELS.
PROJECT CARGO
THAT IS NOT A SPECIFIC TYPE OF ITEM BUT RELATED CARGO NEEDED
FOR A SINGLE, CERTAIN PURPOSE
VESSELS AND VESSEL
CHARACTERISTICS
VESSEL SIZE
DEADWEIGHT TONNAGE (DWT): TONS OF CARGO,
STORES AND FUEL A VESSEL CAN CARRIE
GROSS TONNAGE: NUMBER OF UNITS OF 100 CUBIC FEET
OF PERMANENTLY ENCLOSED SPACE IN THE CHIP
NET TONNAGE: GROSS TONNAGE LESS SPACES THA CAN
NOT EARN REVENUE SUCH AS ENGINE ROOM
THE ACTUAL VOLUME OF CARGO THAT A VESSEL MAY
CARRIE IS LIMITED ITS CUBIC CAPACITY AND WEIGHT
CAPACITY
VESSEL TYPES
CONTAINERSHIPS
PANAMAX
POST PANAMAX
ROLL ON-ROLL OFF (RO/RO)
LO/LO: THE VESSEL CARRIES ITS OWN LOADING /
UNLOADING EQUIPMENT
LASH VESSELS ( LIGHTER ABOARD SHIP): CARRIES VERY
LARGE CONTAINERS: BARGES
THEY CAN BE LOADED /UNLOADED AT RIVER PORTS AWAY
FROM THE SEACOST AND BE TOWED DOWN OR UP RIVER
DELAYS WHITIN A PORT RESULTING FROM CONGESTION CN
BE AVOIDED
OTHER OCEAN VESSEL
TYPES
SHORT SEA SHIPPING
FAST SHIPS
BARGES: VESSELS, PULLED ( OR PUSHED) BY A TUG BOAT
COMERCIAL ARRAGEMENTS

BULK CARRIES AND CHARTER


ARRAGEMENTS
THAT ARE USED WHEN A SHIPPER HAS
SUFFICIENT CARGO TO JUSTIFY
UTILIZING AND ENTIRE VESSEL
MOVEMENTS OF SMALLER QUANTITIES
USED WITH LINER VESSELS
CHARTERING BULK OCEAN
CARRIES
PATTERNS OF THE WORLDS BULK SHIPING
PETROLEUM
IRON ORE
COAL
GRAIN
MARKET INTERRELATIONSHIP
BULK COMMODITIES
AND ENTIRE VESSEL LOAD OF PRODUCT REPRESENT
A HUGE AMOUNT OF INVENTORY, AND MAY EVEN
SERVE AS AN APARENT EXCEPTION TO CURRENT
LOGISTICS THOUGHT REGARDING INVENTORY COST
AND TIME VALUE
CHARTER RATES FLUCTUATE AND THE COMMODITIES
TRADER LOOKS AT PRICES OF COMMODITIES IN TWO
SEPARATE MARKETS AND AT THE CHARTER RATES FOR
VESSELS. IF THE CHARTER RATE IS LESS THAN THE
SPREAD IN PRICE BETWEEN THE TWO COMMODITY
MARKETS, THE TRADER WILL SIMULTANEOUSLY COMMIT
TO 1) BUY AT THE MARKET WHERE THE PRICE IS LOW,
2) SELL WHERE THE PRICE IS HIGH, AND 3) CHARTER A
VESSEL TO MOVE THE GOODS BETWEEN THE TWO
POINTS.
TYPES OF CHARTER
ARRAGEMENTS
VOYAGE CHARTER: ONE SHOT ARRAGEMENT COVERING ONLY THE
SPECIFIC MOVE BETWEEN THE ORIGIN AND DESTINATION
TIME CHARTER: RENTED FOR A PERIOD OF TIME OF SEVERAL MONTHS TO
A YEAR.
BAREBOAT CHARTER: APPLIES TO A TIME CHARTER IN WHICH THE OWNER
OF THE VESSEL SUPPLIES ONLY THE VESSEL AND THE USER MUST
PROVIDE THE CREW (DEMISE CHARTER)
AFFREIGHTMENT CHARTER: COMMITS THE SHIPOWNER TO CARRIE
QUANTITIES OF A SPECIFIC CARGO ON A PARTICULAR ROUTE OR ROUTES
OVER A GIVEN PERIOD OF TIME USING SHIPS OF HIS CHOICE.
CHARTERING IS HANDLED THROUGH BROKERS WITH ONE SET
REPRESENTING VESSEL OWNERS AND THE OTHER VESSEL USERS
(CHARTERES)
THE CHARTER AGREEMENT
DEALS WITH
ALLOCATING THE VESSELS TIME
SPECIFIC ISSUES CONCER THE COSTS OF SPEEDING UP OR
SLOWING DOWN VARIOUS ACTIVITIES THAT IMPACT THE ENTIRE
DURATION OF THE VESSELS TRIP
DESCRIPTION, DENSITY AND WEIGHT OF THE CARGO BASE ON
TONNAGE
GUARANTEED LOADING/ DISCHARGE RATES
DEMURRAGE( THE LOADING/DISCHARGE RATES ARE NOT ACHIEVED)
DESPATCH( THE VESSEL IS HANDLED MORE QUICKLY THAN AGREED)
OCEAN LINERS
CONTRACT SYSTEM
OCEAN LINERS CONFERENCES
Today conferences in the American trades exist to
facilitate cooperative relationships between carriers with
the intent of reducing wasteful practices. Participation in
conferences does not mean that members do not
compete. Indeed, intense competition exists between
conference members as they seek cargo.
OCEAN LINERS
CONTRACT SYSTEM
Conferences exist throughout the world, although they
are of varying strengths, and frequently reorganize or
realign. The most usual grouping is vessels that sal
between two port areas, for example, the U.S. Gulf ports
and ports in the Western Mediterranean. Sometimes the
conference covers shipments in both
directions,sometimes only one.
CLOSED OR OPENED
CONFERENCES
CLOSED CONFERENCE:Closed conferences are more
restrictive and do not allow outsiders to join
KEYS PROVISIONS OF
INTEREST OF SHIPPERS
Conferences may negotiate confidential service contracts
with shippers
Conferences shall be open (not closed)
Approved conferences have immunity from U.S. antitrust
laws
Fighting ships prohibited
Conferences may fix rates and rationalize services
Conferences may publish intermodal rates
Conference members should negotiate inland
transportation separately
calculate freight on a
particular shipment
1. Determine the correct freight classification
2. Note the applicable rate
3. Divide the total weight by the appropriate weight per above
4. Divide the total cube by the appropriate volume measure given
above
5. Multiply the higher of the two (weight ton or measurement ton
as quoted)
by the rate
6. If this number is lower than the minimum charge, the minimum
charge
applies
7. Calculate and add any applicable surcharges.
Service contracts
These contracts specify the services expected
to be provided and the rates shippers are willing
to pay for those services Shippers have the
option of shipping their goods under contract or
not under contract through conferences,
individual conference members, or
nonconference carriers. Shippers can also ship
goods through non-asset-based carriers known
as non-vessel operating common carriers, or
NVOs.
FINAL REVIEW