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AoS
Anatomy of Shipping
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Are you ready?
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AoS
Anatomy of Shipping
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Shipping Industry
* The industry devoted to:
- moving goods or passengers by water.
Passenger operations have been a major component of
shipping, but air travel has seriously limited this aspect of
the industry.
* The enormous increase, however, in certain kinds of cargo, for
example, petroleum, has more than made up for the loss
of passenger traffic.
• Although raw materials such as mineral ores, coal, lumber,
grain, and other foodstuffs supply a vast and still growing
volume of cargo,
• the transportation of manufactured goods has increased rapidly
since WW2
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On customs Malaysia
http://www.customs.gov.my/documents/Bahagian%20Kastam/JD121217%20Tek%201.pdf
http://www.portsworld.com/customs/proc_imp_exp.htm#DECLARATION
http://malaysialogisticsbuzz.blogspot.com/2010/06/seafreight-import-andexport-general.html - Seafreight Import and Export General Procedure flows
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History
• Commercial shipping began perhaps with the
activities of the Phoenician merchants who operated
their own vessels, transporting goods in the
Mediterranean.
• The practices they developed were adopted by the
merchants of ancient Greece and Rome and were
continued by the maritime powers through the Middle
Ages to modern times.
• The Venetians, from 1300 to 1500, owned a huge
merchant fleet that served the interests of the
merchant traders and the city-state exclusively.
• From 1600 to 1650 the Dutch ranked first in
shipping activity, operating a globe-circling tramp
service for merchants of western Europe.
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Advances in the 19th Century
* Until the 19th century, ships were owned by the merchant or
by the trading company; common-carrier service did not exist.
* On January 5, 1818, the full-rigged American ship James
Monroe, of the Black Ball Line, sailed from New York City for
Liverpool, inaugurating common-carrier line service on a
dependable schedule. A policy of sailing regularly and accepting
cargo in less-than-shipload lots enabled the Black Ball Line to
revolutionize shipping.
•Two technological developments furthered progress toward
present-day shipping practices: 1. the use of steam propulsion
and 2. the use of iron in shipbuilding.
• In 1819 the American sailing ship Savannah crossed the
Atlantic under steam propulsion for part of the voyage,
pioneering the way for the British ship Sirius, which crossed the
Atlantic entirely under steam in 1838.
• Iron was first used in the sailing vessel Ironsides, which was
launched in Liverpool in 1838.
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The opening of the Suez Canal in 1869 was of great
economic importance to shipping. Coinciding with the
perfection of the triple-expansion reciprocating
engine, which was both dependable and economical
in comparison with the machinery of the pioneer
vessels, the completion of the canal made possible
rapid service between western Europe and Asia.
• The first steam-propelled ship designed as an
oceangoing tanker was the Glückauf, built in Britain
in 1886. It had 3,020 deadweight tons (dwt; the
•
weight of a ship's cargo, stores, fuel, passengers, and
crew when the ship is fully loaded) and a speed of 11
knots.
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The 20th Century
• Among the technological advances at the turn of the century was
the development by the British inventor Charles A. Parsons of the
compound steam turbine, adapted to maritime use in 1897.
• In 1903 the Wandal, a steamer on the Volga River, was powered
by the first diesel engine used for ship propulsion.
• The Danish vessel Selandia was commissioned as the first
seagoing motor ship in 1912.
•After WWI significant progress was made especially in the
perfection of the turboelectric drive.
• During WWII, welding in ship construction supplanted the use
of rivets.
•The keel of the first nuclear-powered passenger-cargo ship, the
Savannah, was laid in Camden, New Jersey, on May 22, 1958, and
the ship was launched in 1960.
• In 1962 it was chartered to a private company, but it did not
prove financially successful.
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compound steam turbine,
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NATURE OF THE SHIPPING INDUSTRY
• Shipping is a private, highly competitive
service industry.
• The activity of the industry is divided into
several categories, namely:
i. liner service,
ii.tramp shipping,
iii.industrial service, and
iv. tanker operation,
all of which operate on
established routes.
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certain
well-
Trade Routes
•Most of the world's shipping travels a relatively small number of
major ocean routes:
i.
North Atlantic, between Europe and eastern North
America;
ii. Mediterranean-Asian route via the Suez Canal;
iii. Panama Canal route connecting Europe and the eastern
American coasts with the western American coasts and
Asia;
iv. South African route linking Europe and America with
Africa;
v. South American route from Europe and North America to
South
America;
vi. North Pacific route linking western America with Japan and
China; and,
vii. South Pacific route from western America to Australia,
New Zealand, Indonesia, and southern Asia.
* The old Cape of Good Hope route pioneered by Vasco da Gama
and shortened by the Suez Canal has returned to use for giant oil
tankers plying between the Persian Gulf and Europe and America.
Many shorter routes, including coastal routes, are heavily traveled.
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Major shipping routes:
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Coastwise Shipping
• Technically, coastal shipping is conducted within 32 km (within 20
mi) of the shoreline, but in practice ship lanes often extend beyond that
distance, for reasons of economy and safety of operation.
• In the U.S., coastal shipping is conducted along the Pacific, Atlantic,
and Gulf coasts.
• Under the restriction known as cabotage, the U.S. and many other
nations permit only vessels registered under the national flag to engage
in coastal trade. Among many small European countries cabotage does
not apply, and short international voyages are common.
• A special feature of coastal shipping in the U.S. is the trade between
the Pacific coast and the Atlantic and Gulf coasts. Vessels engaged in
this trade traverse the open sea and utilize the Panama Canal; however,
they are covered by cabotage laws.
• In coastal and short-distance shipping, special-purpose ships are often
employed, such as car ferries and train ferries.
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Global Shipping Routes
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Liner Service
*
Liner service consists of regularly scheduled shipping operations
on fixed routes. Cargoes are accepted under a bill-of-lading
contract issued by the ship operator to the shipper.
• Competition in liner service is regulated generally by agreements,
known as conferences, among the shipowners. These conferences
stabilize conditions of competition and set passenger fares or
freight rates for all members of the conferences.
• In the U.S., steamship conferences are supervised by the Federal
Maritime Commission in accordance with the Shipping Act of 1916.
* Rate changes, modifications of agreements, and other joint
activities must be approved by the commission before they are
effective.
• Measures designed to eliminate or prevent competition are
prohibited by law.
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Tramp Shipping
•Tramps, known also as general-service ships, maintain neither regular
routes nor regular service.
• Usually tramps carry shipload lots of the same commodity for a single
shipper. Such cargoes generally consist of bulk raw or low-value
material, such as grain, ore, or coal, for which inexpensive
transportation is required.
• About 30 percent of U.S. foreign commerce is carried in tramps.
Tramps are classified on the basis of employment rather than of ship
design. The typical tramp operates under a charter party, that is, a
contract for the use of the vessel.
• The center of the chartering business is the Baltic Exchange in London,
where brokers representing shippers meet with shipowners or their
representatives to arrange the agreements.
• Freight rates fluctuate according to supply and demand: When
cargoes are fewer than ships, rates are low.
• Charter rates are also affected by various other circumstances, such
as crop failures and political crises.
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Charter Parties
• Charter parties are of three kinds, namely,
i. the voyage charter,
ii. the time charter, and
iii. the bareboat charter.
•The voyage charter, the most common of the three, provides transport
for a single voyage, and designated cargo between two ports in
consideration of an agreed fee. The charterer provides all loading and
discharging berths and port agents to handle the ship, and the shipowner
is responsible for providing the crew, operating the ship, and assuming
all costs in connection with the voyage, unless an agreement is made to
the contrary.
• The time charter provides for lease of the ship and crew for an agreed
period of time. The time charter does not specify the cargo to be carried
but places the ship at the disposal of the charterer, who must assume
the cost of fuel and port fees.
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* The bareboat charter provides for the lease of the ship to a
charterer who has the operating organization for complete
management of the ship. The bareboat charter transfers the
ship, in all but legal title, to the charterer, who provides the
crew and becomes responsible for all aspects of its operation.
•The leading tramp-owning and tramp-operating nations of
the world are: Norway,
Britain,
the Netherlands, and
Greece.
The carrying capacity of a typical, modern, well-designed
tramp ship is about 12,000 dwt, and its speed is about 15
knots. The recent trend is toward tramps of 30,000 dwt,
without much increase in speed.
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Industrial Carriers
• Industrial carriers are vessels operated by large corporations to
provide transportation essential to the processes of manufacture
and distribution.
• These vessels are run to ports and on schedules determined by
the specific needs of the owners. The ships may belong to the
corporations or may be chartered. For example, the Bethlehem
Steel Corp. maintains a fleet of Great Lakes ore carriers, a
number of specialized ships that haul ore from South America to
Baltimore, Maryland, and a fleet of dry-cargo ships that
transports steel products from Baltimore to the Pacific coast.
• Many oil companies maintain large fleets of deep-sea tankers,
towboats, and river barges to carry petroleum to and from
refineries. The ships often operate under contracts of affreightment.
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Tanker Operation
•All tankers are private or contract carriers. In the
1970s some 34% of the world tanker fleet, which
aggregates about 200 million dwt, was owned by oil
companies; the remaining tonnage belonged to
independent shipowners who chartered their vessels to
the oil companies.
• The So-called supertankers, which exceed 100,000
dwt, are employed to transport crude petroleum from
the oil fields to refineries ( Dirty)
• The refined products, such as gasoline, kerosene, and
lubricating oils, are distributed by smaller tankers
( clean), generally less than 30,000 dwt, and by
barges.
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VESSEL TYPES
• Merchant ships are classified as passenger carriers, cargo ships, and
tankers.
• During the height of passenger travel by ship, the largest as well as the
most glamorous ships afloat were the famed liners of the North Atlantic,
which, beginning in the mid-19th century, sailed regular schedules
between the Americas and Europe.
• Competing in speed as well as in size and appointments, such ships as
the Mauretania, the Queen Mary, the Queen Elizabeth, the United States,
and the France gradually reduced the time for the North Atlantic crossing
to less than four days.
• Their size, from about 45,000 to 75,000 metric tons and up to 300 m
(1,000 ft) in length, was gigantic by the standards of the first half of the
20th century, but they have been dwarfed by the oil tankers of the 1970s
and '80s.
• Today's passenger liners operate principally in the cruise trade.
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Cargo Ships
Cargo ships carry packaged goods, unitized cargo
(cargo in which a number of items are consolidated
into one large shipping unit for easier handling), and
limited amounts of grain, ore, and liquids such as latex
and edible oils. A few passengers are accepted on
some cargo liners. Specialized ships are designed and
built to carry certain types of cargo, for example,
automobiles or grain.
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Container Ships
•In the late 1950s container ships set the pattern for technological
change in cargo handling and linked the trucking industry to
deep-Sea shipping.
• These highly specialized ships carry large truck bodies and can
discharge and load in one day, in contrast to the ten days required
by conventional ships of the same size.
• The rapid development of the container ship began in 1956,
when Sea-Land Service commenced operations between New York
City and Houston, Texas.
• Barge-aboard, or lighter-aboard, ships, also called seabees (sea
barges) or LASH (lighter-aboard ships), resulted from an
evolutionary development of the container ship.
• They are capable of carrying about 38 barges, or up to 1,600
containers, or a combination of containers and barges. Their
design enables them to deliver cargo to developed or undeveloped
ports, without the need for berthing.
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Tankers
Tankers, designed specifically to carry liquid cargoes,
usually
petroleum,
have
grown
to
manycompartmented giants of a million metric tons and
more. Despite their great size, their construction is
simple, as is, for the most part, their operation. A
major problem with the giant tankers is the severe
environmental damage of oil spills, resulting from
collision, storm damage, or leakage from other causes.
Specialized tankers transport liquefied natural gas
(LNG), liquid chemicals, wine, molasses, and
refrigerated products.
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Treaties and Conventions
* Many treaties and conventions have been adopted
over the years with the objective of increasing the
safety of life at sea (SOLAS).
• One of the most important agreements provided for
the establishment of the International Iceberg Patrol
in 1913, after the Titanic disaster.
• Under the International Load-Line Convention of
1930, ship loading was regulated on the basis of size,
cargo, and route of the vessel.
• The International Convention for the SOLAS, which
governs ship construction, was ratified by most
maritime nations in 1936, and updated in 1948, and
again in 1960 and 1974.
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Understanding Ship Sizes
http://maritime-connector.com/worlds-largest-ships/ - largest vessel in the world
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Handy and Handymax: Traditionally the workhorses of the dry bulk market, the Handy
and more recent Handymax types remain popular ships with less than 60,000 dwt. A
handymax is typically 150-200 meters (492-656 feet) in length, though certain bulk
terminal restrictions such as those in Japan mean that many handymax ships are just
under 190 meters in overall length. Modern handymax designs are typically 52,000-58,000
DWT in size, have five cargo holds and four cranes of 30 metric ton lifting capacity
Handymax 'Maple Creek' 53,474 DWT © Siba Ships
S.p.A.
Aframax: Crude and product tankers between 80,000 and 120,000 dwt. This is the largest
size defined by the Average Freight Rate Assessment (AFRA) tanker rate system.
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Panamax 'APL
Malaysia - 293.99 x
32.20 x 21.80m
Panamax: Represents the largest acceptable size to transit the Panama Canal,
which can be applied to both freighters and tankers; Size is determined
principally by the dimensions of the canal's lock chambers, each of which is
33.53 metres (110 ft) wide by 320.0 metres (1050 ft) long, and 25.9 metres (85 ft)
deep. The usable length of each lock chamber is 304.8 metres (1000 ft). The
available water depth in the lock chambers varies, but the shallowest depth is at
the south sill of the Pedro Miguel Locks, and is 12.55 metres (41.2 ft) at a
Miraflores Lake level of 16.61 metres (54 feet 6 in). The height of the Bridge of
the Americas at Balboa is the limiting factor on a vessel's overall height.
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Seawaymax: The term Seawaymax refers to vessels which are
the maximum size that can fit through the canal locks of the
St Lawrence Seaway. Seawaymax vessels are 740 feet in
length, 78 feet wide, (maximum 226 m length, 24 m beam)
and have a draft of 26 feet (7.92 m). A number of Lake
freighters larger than this size cruise the Great Lakes and
cannot pass through to the Atlantic Ocean. The size of the
locks limits the size of the ships which can pass and so limits
the size of the cargoes they can carry. The record tonnage for
one vessel on the Seaway is 28,502 tons of iron ore while the
record through the larger locks of the Great Lakes Waterway is
72,351 tons. Most new lake vessels, however, are constructed
to the Seawaymax limit to enhance versatility by allowing the
possibility of off-Lakes use.
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Suezmax: This standard, which represents the limitations of the Suez Canal, has evolved.
Before 1967, the Suez Canal could only accommodate tanker ships with a maximum of
80,000 dwt. The canal was closed between 1967 and 1975 because of the Israel - Arab
conflict. Prior to 1967, a Suezmax was a maximum of 80,000 dwt. Upon reopening in
1975, after many modifications to the locks and canal itself, the maximum was increased
to 200,000 dwt.
Suezmax Tanker 'Cap Guillaume' © Euronav
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Capesize: Refers to a rather ill-defined standard which have
the common characteristic of being incapable of using the
Panama or Suez canals, not necessarily because of their
tonnage, but because of their size. These ships serve
deepwater terminals handling raw materials, such as iron
ore and coal. As a result, "Capesize" vessels transit via Cape
Horn (South America) or the Cape of Good Hope (South
Africa). Their size ranges between 80,000 and 175,000 dwt.
Due to their size there are only a comparatively small
number of ports around the world with the infrastructure
to accommodate such vessel size.
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VLCC: Very Large Crude Carriers, 150,000 to 320,000 dwt in size. They offer a good
flexibility for using terminals since many can accommodate their draft. They are used in
ports that have depth limitations, mainly around the Mediterranean, West Africa and the
North Sea. They can be ballasted through the Suez Canal.
Very Large Crude Carrier 'Irene SL' 319,247 DWT © Auke Visser
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Ultra Large Crude Carrier 'Knock Nevis' - 564,650 DWT © Auke
Visser
ULCC: Ultra Large Crude Carriers, 320,000 to 550,000 dwt in size. Used for carrying crude
oil on long haul routes from the Persian Gulf to Europe, America and East Asia, via the
Cape of Good Hope or the Strait of Malacca. The enormous size of these vessels require
custom built terminals.
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Knock Nevis
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http://maritime-connector.com/worlds-largest-ships/
The world's largest container ship was to be christened in the German port city of
Hamburg on Thursday, and now shares the title with an identical twin vessel. But with
fierce competition for new records, they won't be the biggest for long
At 396 meters (1,300 feet) long, the mammoth vessel can carry some 16,000 shipping
containers, and will frequently travel to the northern German city. Dubbed the
Alexander von Humboldt, it was made by French shipbuilder CMA CGM in the image of
the Marco Polo, which was inaugurated in December 2012 -- making both boats the
largest in the world.
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The Triple-E class container ships are to be built by South Korea's
Daewoo Shipbuilding & Marine Engineering (DSME). They will be
the largest container ships in the world, with a container carrying
capacity of 18,000TEU. Each vessel is estimated to cost $190m.
Triple-E (EEE) stands for Economy of scale, Energy efficient and
Environmentally improved vessel. The vessels will operate in the
Europe-Asia route, with stoppages at Shanghai, Ning-bo, Xiamen,
Yantian and Hong Kong ports.
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http://www.ship-technology.com/projects/triple-e-class/
Types of
Cargoes
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Gas Cargo
• In its raw state, it has none of the free-flowing, easy-to-load properties of
liquid cargoes, such as crude oil and grain.
• to make it easier to transport it is converted into that same liquid state by
extreme cooling or pressurisation.
• This process, known as liquefaction, reduces the volume of gas by a massive
600 times, and presents its own challenges for the ships that carry gas. As the
gas needs to be kept in a liquid state for the entire journey, Gas Carriers must
have complicated cooling or pressurisation systems on board.
• As a result, these highly specialised ships are often viewed as the most
sophisticated of all commercial ships, costing about twice as much as an oil
tanker of the same size.
* The gas itself is normally propane or methane, known as LPG (link to gas in
dictionary) and LNG (link to gas in dictionary) respectively and can be used in a
variety of applications from environmentally-friendly fuels and refrigerant to
propellant in packaged aerosols and in industrial chemical processes.
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Liquid Bulk Cargo
Bulk cargoes are consume in everyday life in one from or another.
• From gasoline to fuel our cars, to fruit juices and cooking oil for consumption
in the home, it’s difficult to live the lives we live today without them.
* These free-flowing liquid cargoes, which also include crude oil, liquefied
natural gas and chemicals, are not boxed, bagged or hand stowed. Instead, they
are poured into and sucked out of large tank spaces, known as the holds, of a
tanker.
•This section of the industry has attracted more than its fair share of public
attention over the years, as a result of high-profile incidents where crude oil has
leak from tankers and polluted our seas and coastlines.
• But there has been much legislation passed and increasing commitment from
those that carry oil cargoes to further improve this section of the industry. And
importantly, there has been a substantial reduction in marine pollution over
the last 15 years, especially in the amount of oil spilled into the sea, despite a
massive increase in world seaborne trade.
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Dry Bulk Cargo
*
From grains to coal and from sugar to cocoa, dry bulk cargoes cover a range of
produce and raw materials that have two features in common: they are unpacked and
are homogeneous.
• These two properties make it easier for dry bulk cargoes to be dropped or poured into
the hold of a bulk carrier.
•Without the estimated 3,000 m dwt of dry bulk shipping transported by sea annually,
life today would be altered dramatically. Just having breakfast would be a very different
event, with the ingredients of bread and cereal coming from dry bulks, as well as coffee
and the sugar to sweeten it.
• Even the metal elements of your toaster and kettle come by sea and the coal to
generate the electricity supply to power both appliances is likewise shipped in. Other dry
bulk cargoes include iron ore, alumina fertilisers, scrap, sulphur and cement, as well as a
large number of agricultural products for the human and animal food industry, such as
rice and corn.
* As the name suggests, dry bulk cargoes need to be kept dry, any moisture that finds
its way into the cargo could ruin the entire load, at considerable cost to the ship owner. It
may also be surprising to learn that many dry bulk cargoes are classified as ‘Dangerous
Goods’ requiring special attention during loading, transportation and discharge, as they
could shift during shipment, causing ship instability.
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Refrigerated Food Cargo
* When we go to the supermarket to buy fresh produce, most of us do not stop
to consider where that produce has travelled from. In fact, you may be surprised
to learn that less than half the apples sold in major British supermarkets
originate from Britain; more likely they have come from European Union states,
or even as far a field as New Zealand.
•Such fragile and time sensitive cargoes require special transportation that will
keep goods at the right temperature to maintain freshness, run to strict
schedules to ensure that the produce reaches its final destination in the optimum
condition.
•* To meet these demands, special refrigerated cargo ships house temperaturecontrolled containers suitable for the safe carriage of chilled or frozen cargoes,
referred to reefer containers.
* A wide range of commodities are shipped under refrigeration, including: fresh
fruits and vegetables, fresh and frozen meats, poultry, and seafood, dairy
products and eggs, fresh juices and frozen concentrates, and live plants and
flowers.
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Special Purpose Cargo
* There are many different types of cargoes shipped around the world, some
more unusual than others. While containers, crude oil and dry bulk get the most
attention, other cargoes that fall outside of these categories are just as important
to daily life.
* Over-sized goods, such as a non-motorised barges or road sections, are one
such cargo, while heavy cargoes, such as industrial generators and reactors, also
require special treatment. Another specialist cargo is livestock, which needs to be
transported in comfortable surroundings so that the cattle or sheep reach their
final destination undistressed and in optimum condition.
• Whatever the specialist cargo, one thing is for sure; the ships that carry them
will be specially designed to serve that purpose.
• To counteract the loading and discharging of heavy items, heavy-lift ships might
use ballast to counterbalance the weight, while others use hydraulic feet to
clamp on to the quay, while ships designed to carry livestock need climate
control, feed dispensers, watering equipment and equipment for the removal of
manure, as well as large quantities of bedding and food.
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Passengers
• It is not just commodities that move from A to B by ship: many of us have
experienced life at sea as a cargo, simply by taking a cross-Channel ferry from
Dover to Calais.
• With the many safety and quality considerations necessary for carrying
passengers, a cargo of people is in fact not so different to the many others of
cargoes carried.
•Passenger ships need to cater for the demands of people, be that with the
provisions of seating, refreshments, entertainment and/or sleeping facilities.
• * For passenger ships on longer journeys, a huge amount of food and fresh
water stores need to be on board and there must be proper facilities for the
storage of waste water and the massive amount of rubbish generated.
* These ships vary greatly in size and can range from small foot passenger ferries
to cross rivers, to large luxury ocean-going cruise liners carrying more than 2,500
passengers. Some may have the means to transport vehicles as well as
passengers, offering crossings for cars and caravans, as well as freight on trucks
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Unitised Cargo
• Manufactured products and perishable goods come in a variety of shapes and
sizes, often with considerable storage constraints.
• Consequently, these cargoes need to be treated very differently to free-flowing
dry bulk cargoes, like grain.
•Imagine having to individually move the millions of computers and computer
parts transported around the world every year: it would be a logistical nightmare.
• * Instead, these ‘units’ are packaged together as unitised cargo before
transportation. While the terms unitised and containerised are often used
interchangeably, strictly speaking unitised, as a cargo type, includes containers as
well as a number of other modes of transportation, such as pallets, barges, closed
wagons, goods trailers and trucks.
* Unitised cargoes can be very diverse, covering forest products, metals and
metal goods, machines, electronics, food chemicals, raw materials, and
investment and consumer goods, among others.
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Container Cargo
Containerization is a system of intermodal freight
transport using intermodal containers (also called
shipping containers and ISO containers) made of
weathering steel. The containers have standardized
dimensions. They can be loaded and unloaded, stacked,
transported efficiently over long distances, and
transferred from one mode of transport to another—
container ships, rail transport flatcars, and semi-trailer
trucks—without being opened. The system, developed
after World War II, reduced transport costs, supported
the post-war boom in international trade, and was an
element in globalization.
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http://www.inamarmarine.com/pdf/LossControl/Containerized%20Cargo.pdf
Industry Issues
Environment
The World Shipping Council's members are working to promote sound
environmental stewardship, with a particular focus on reducing vessel
air emissions and managing vessel discharges
Security
The World Shipping Council (WSC) supports a consultative approach to
enhanced maritime security without impeding the timely flow of
legitimate commerce. The WSC works closely with the U.S. government,
the European Commission and international organizations to accomplish
that goal.
Safety
International liner shipping is truly a global industry. Ships and their crew
travel between ports in many countries so shipping companies take steps to
protect public health and safety in the countries they transit
http://www.worldshipping.org/
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http://www.pwc.com/en_GX/gx/transportationlogistics/pdf/opp-chal-ship.pdf - Opportunities & Challanges
Infrastructure
A modern and efficient maritime infrastructure, at sea
and on land, is critical to the world's security and
economic well- being.
Cargo Liability
The Council has been working as part of the U.S.
delegation to the United Nations Commission on
International Trade Law (UNCITRAL) to achieve
international cargo liability reform through the
development of a new convention, which was opened to
nations for signature in September 2009. This new
international accord now known as the "Rotterdam
Rules" will go into effect one year after twenty nations
have signed onto it.
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http://www.worldshipping.org/benefits-of-liner-shipping
World Political &
Economic Issues
**What are they - GW
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International Institution &
Their Role in Shipping
International Maritime Organization
(the original name was the Inter-Governmental Maritime Consultative Organization, or IMCO, but
the name was changed in 1982 to IMO).
• The International Maritime Organization (IMO) is a specialized agency of
the United Nations with 167 Member States.
• Its main role has been to develop and maintain a consistent regulatory
framework for international shipping with particular focus
of safety, security, environment and technical co-operation.
• To learn more about the IMO, visit www.imo.org.
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on the areas
Role 0f IMO
* The IMO Convention entered into force in 1958 and the new
Organization met for the first time the following year.
•The purposes of the Organization, as summarized by Article 1(a)
of the Convention, are:
i. "to provide machinery for cooperation among
Governments in the field of governmental regulation and
practices relating to technical matters of all kinds affecting
shipping engaged in international trade;
ii. to encourage and facilitate the general adoption of
the highest practicable standards in matters concerning
maritime safety, efficiency of navigation and prevention and
control of marine pollution from ships".
* The Organization is also empowered to deal with
administrative and legal matters related to these purposes.
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• IMO's first task was to adopt a new version of the International
Convention for the Safety of Life at Sea (SOLAS), the most
important of all treaties dealing with maritime safety.
• International Convention for the Prevention of Pollution from
Ships, 1973, as modified by the Protocol of 1978 relating thereto
(MARPOL 73/78)
• Also in the 1970s a global search and rescue system was
initiated, with the establishment of the International Mobile
Satellite Organization (IMSO), which has greatly improved the
provision of radio and other messages to ships.
• The Global Maritime Distress and Safety System (GMDSS) was
adopted in 1988 and began to be phased in from 1992.
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A convention is the framework in which the parties decide the basic guidelines and
will not go into details of everything..
A protocol to the convention is where the parties set specific aims or legal obligations
etc..
For example Vienna Convention doesn't mention any obligations or % reduction in ODS in
specific numbers.. these are dealt with in Montreal Protocol..
Convention: A convention begins as an international meeting of
representatives from many nations that results in general
agreement about procedures or actions they will take on specific
topics (e.g., wetlands, endangered species, etc
Protocol: A protocol is an agreement that diplomatic negotiators
formulate and sign as the basis for a final convention or treaty. The
treaty itself may not be completed for many years.
Treaty: A treaty is an agreement where the parties to it negotiate
to reach common ground and avoid further conflict or
disagreement. It is normally ratified by the lawmaking authority of
the government whose representative has signed it. In the United
States,
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•On 1 July 1998 the International Safety Management
Code entered into force and became applicable to passenger
ships, oil and chemical tankers, bulk carriers, gas carriers and
cargo high speed craft of 500 gross tonnage and above.
•On 1 February 1997, the 1995 amendments to the
International Convention on Standards of Training, Certification
and Watchkeeping for Seafarers, 1978 entered into force. A
major revision of the STCW Convention and Code was completed
in 2010 with the adoption of the "Manila amendments to the
STCW Convention and Code".
•The 2000s also saw a focus on maritime security, with the entry
into force in July 2004 of a new, comprehensive security regime
for international shipping, including the International Ship and
Port Facility Security (ISPS) Code, made mandatory under
amendments to SOLAS adopted in 2002.
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United Nations Commission on
International Trade Law
• The United Nations Commission on International Trade
Law (UNCITRAL) is a body of member and observer
states that was established by the U.N General Assembly
in 1966, to address disparities in national laws
governing international trade.
• The World Shipping Council has been participating in a
working group tasked with developing a new
international instrument to govern the carriage of goods
by sea. To learn more about UNCITRAL and its work, visit
www.uncitral.org.
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International Organization for Standardization
The International Organization for Standardization (ISO) is a
network of more than 150 national standards institutes that
develops specifications and criteria that can be applied
consistently around the world in the classification of materials,
the manufacture of products and the provision of services. More
information about the ISO can be found at www.iso.org.
World Customs Organization
The World Customs Organization (WCO) is an
intergovernmental organization that helps member states
communicate and co-operate on customs issues. The World
Shipping Council is a member of the WCO's Private Sector
Consultative Group. To learn more about the WCO, visit
www.wcoomd.org/ie/En/en.html.
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Maritime Issues in Shipping
Maritime Safety and Pollution
•An oil spill is the release of a liquid petroleum hydrocarbon
into the environment, especially marine areas, due to human
activity, and is a form of pollution. The term is usually applied to
marine oil spills, where oil is released into the ocean or coastal
waters, but spills may also occur on land.
• Oil spills may be due to releases of crude oil from tankers,
offshore platforms, drilling rigs and wells, as well as spills of refined
petroleum products (such as gasoline, diesel) and their byproducts, heavier fuels used by large ships such as bunker fuel, or
the spill of any oily refuse or waste oil
http://environment.about.com/od/petroleum/a/oil_spills_a
nd_environment.htm - effect of oil spill
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http://www.uscg.mil/npfc/About_NPFC/opa.asp
Maritime security
- is concerned with the prevention of intentional damage
through sabotage, subversion, or terrorism.
- Maritime security is one of the three basic roles of the
United States Coast Guard has gradually developed in
response to a series of catastrophic events, which began in
1917.
There are three main maritime security
activities conducted by the Coast Guard:
- Port Security.
- Vessel Security.
- Facility Security
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Port security
-refers to the defense, law and treaty enforcement, and
counterterrorism activities that fall within the port and
maritime domain.
- It includes the protection :
i. of the seaports themselves,
ii. the protection and inspection of the cargo moving
through the ports,
iii. and maritime security.
- Internationally, port security is governed by rules
issued by the International Maritime Organization and its
2002 International Ship and Port Facility Security
Code.
- Additionally, some United States-based programs have
become de facto global port security programs, including the
Container Security Initiative and the Customs
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International Ship and Port Facility Security (ISPS)
Code
- is an amendment to the Safety of Life at Sea (SOLAS)
Convention (1974/1988) on minimum security
arrangements for ships, ports and government agencies.
- Having come into force in 2004, it prescribes
responsibilities to:
i. governments,
ii. shipping companies,
iii. shipboard personnel,
iv. port/facility personnel
→ to "detect security threats and take preventative
measures against security incidents affecting ships or port
facilities used in international trade."
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History of ISPS
* (IMO) states that "The International Ship and Port
Facility Security Code (ISPS Code) is a comprehensive set
of measures to enhance the security of ships and port
facilities, developed in response to the perceived
threats to ships and port facilities in the wake of the
9/11 attacks in the United States" (IMO).
•Development and implementation were sped up drastically in
reaction to the September 11, 2001 attacks and the bombing of
the French oil tanker Limburg. The U.S. Coast Guard, as the lead
agency in the United States delegation to the IMO, advocated for
the measure.
• The Code was agreed at a meeting of the 108 signatories to
the SOLAS convention in London in December 2002. The
measures agreed under the Code were brought into force on
July 1, 2004.
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The ISPS Code is implemented through chapter XI-2 Special measures to enhance
maritime security in the International Convention for the Safety of Life at Sea
(SOLAS).
The Code is a two-part document describing minimum requirements for security
of ships and ports. Part A provides mandatory requirements. Part B provides
guidance for implementation.
The ISPS Code applies to ships on international voyages (including passenger
ships, cargo ships of 500 GT and upwards, and mobile offshore drilling units) and
the port facilities serving such ships.[4]
The main objectives of the ISPS Code are:
To detect security threats and implement security measures
To establish roles and responsibilities concerning maritime security for
governments, local administrations, ship and port industries at the national and
international level
To collate and promulgate security-related information
To provide a methodology for security assessments so as to have in place plans
and procedures to react to changing security levels
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Offshore Installation
*
Drilling rigs
* Natural gas platforms
* Oil platforms
* Offshore wind farms
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DSM 2302
SUBJECT OVERVIEW
ANATOMY OF
SHIPPING
SUBJECT OUTLINE
1.0 Introduction to shipping industry
1.1 Introduction to the shipping industry: understanding of ship size, cargoes
carried, performance and general shipping market supply/demand trends
1.2 World political & economic issues
1.3 International institutions and their role in shipping
1.4 The role of the International Maritime Organization (IMO)
1.5 Understanding of maritime issues in shipping perspective: pollution
prevention, security, offshore installations and maritime transportation
2.
Overview of Ship Acquisition and ownership
2.1 The shipbuilding market
2.2 The sale and purchase deal
2.3 Newbuilding sale & purchase
2.4 Reading the market: the role of the shipbroker
2.5 Financing ship acquisitions Identifying the best finance deal
2.6 Ship acquisition and financing vessels
3.0 Geo political and economic change
3.1 Economic regulation of liner and shipping industry
3.2 Globalization and challenges of shipping world
3.3 Structural changes and regulation in shipping industry
4. Introduction to International Shipping Laws and Convention
4.1 Commercial law: charter parties and bills of lading
4.2 International convention
4.3 Admiralty laws
4.4 Trade protection laws
4.3 International law of the sea
5. Technical Ship Management
5.1 Ships and their operational problems
5.2 The classification societies
5.3 Shipowners’ bunker purchasing strategies
6. Overview of Commercial Ship Management
6.1 Ship management as a service
6.2 Crewing and training
6.3 Marine insurance overview
6.4 Marine claims
6.5 Protection and indemnity insurance
6.6 Post-Fixture: chartering operations
6.7 Laytime, demurrage and despatch
6.8 Use of forward freight agreements
6. Overview of Commercial Ship Management
6.1 Ship management as a service
6.2 Crewing and training
6.3 Marine insurance overview
6.4 Marine claims
6.5 Protection and indemnity insurance
6.6 Post-Fixture: chartering operations
6.7 Laytime, demurrage and despatch
6.8 Use of forward freight agreements
7. Overview of Shipping Markets
7.1 Dry bulk shipping
7.2 Transformation from liner shipping to container transportation
7.3 Through transport concepts
7.4 Commercial & logistical aspects of container transportation
7.5 Ship & terminal operations
7.6 The chemicals and gases trades
7.7 The tanker market
7.8 Practical applications of Worldscale
7.9 The cruise shipping market
Main references supporting the course
* Alan Edward Branch, Elements of Shipping, Routledge,
8th edition,2007
Additional references supporting the course
* Brian Cudahy, Box Boats: How container ships changed
the wordl ,Fordham University Press, 200
LEARNING OUTCOMES
Learning outcomes
At the successful completion of this subject, students are expected to:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Define features of shipping management and analyse issues presented in anotomy
topic
Relate a sensitivity to the ethical issues involved in business practice.
Identify realism and practicality as a foundation for good business judgment.
Describe anotomy of shipping discipline in an integrated form which reflects sound
business
practices.
Apply approaches to defining, whether those problems are structured or
unstructured.
Practice recognition and advance standing from relevant professional bodies and
other institutions.
Use the ability to communicate effectively and fluently in both written and spoken
form
Learning Objectives
1. Features of shipping management and analyse issues presented in
anotomy topic
2. Sensitivity to the ethical issues involved in business practices
3. Foundation for good business judgement
4. Shipping discipline in a integrated form which reflects sound
business
5. Problems are structured or unstructured
6. Recognition and advance standing from relevant professional
bodies and other institutions
7. Communicate effectively and fluently in both written and spoken
form
ASSESSMENT
Assessment Methods and Types
Quiz
10%
Test
15%
Assignment
25%
Final Examination 50%
Why you study
5
11
Prim 6
0
= 16
7.1%
70
Uni
5
Sec 5
49
5
22.8%
work
70%
How do you view your LIFE
Life
ends
Bloom's Taxonomy
Categories in the cognitive domain of Bloom's
Taxonomy (Anderson & Krathwohl, 2001)
http://en.wikipedia.org/wiki/Bloom%27s_Taxonomy
Attendance
and
YOU
Attendance Procedure
1
OBJECTIVES
To ensure that all lecturers (full-time and part-time), students
and their parents/guardians are aware of, and in the case of
lecturers implement, NMITs policy and procedures for
monitoring and penalising poor attendance.
2
SCOPE
This procedure defines the actions and
responsibilities of the Academic Department
specifically
the
Lecturers,
Part-time
Lecturers
and
Academic
Assistant
in
monitoring student attendance and penalising
poor attendance where students fail to attend
for more than 80% of their classes for a
particular module.
Records
RECORDS
1.
Warning letter for nonattendance
2.
Barring letter for nonattendance
L
PTL
AA
AC
REG
HEU
SA
M
:
:
:
:
:
:
:
:
Lecturers
Part-time Lecturers
Academic Assistant
Academic Coordinator
Registrar
Head of Exam Unit
Student Affairs
Mentor
Your Parent will be notified too.
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