liner shipping and tramp shipping services-group 9

8/2/2019 Liner Shipping and Tramp Shipping Services-group 9

1/31

LINER SHIPPING AND TRAMP

SHIPPING SERVICES

BALITIC EXCHANGE

GROUP No. 9

Megha Thakur

Bhargav

Ajinkya

Parth Chauhan


2/31

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.


3/31

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.


4/31

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.


5/31

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.


6/31

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.


7/31

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.


8/31

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.


9/31

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.


10/31

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


11/31


12/31


13/31

Tramp Shipping


14/31

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


15/31

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


16/31

Characteristics of Tramp Ship

Unspecialized type of vessel

Two to six holds, each with large unobstructed

hatches

Vary in Size


17/31

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


18/31

Exporter

Approches

agent

Exporter

approches

agent


19/31

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.
http://www.cosbulk.com/images/zhuye_jieshao_lingbian-small_big.jpghttp://www.cosbulk.com/images/zhuye_jieshao_lingbian-small_big.jpg


20/31

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 .


21/31

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.


22/31

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


23/31

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


24/31

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)


25/31

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)


26/31

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).


27/31

Daily Chart For Cape/Panamax/Supramax 4 Time

Charter Average Values(Avg of 4 major routes)

PERIOD RATES (Figures in USD per day)


28/31

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


29/31

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


30/31

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.


31/31

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

liner shipping and tramp shipping services-group 9

Documents