BA4061 FUNDAMENTALS OF SHIPPING LTPC

3003
COURSE OBJECTIVES:
To provide the knowledge about fundamentals of shipping management
To equip the students with the knowledge of shipping, ship building and repair

UNIT I INTERDICTION OF SHIPPING 9

Role of Shipping in International trade-Types of ships and cargoes carried by them - International
Organizations serving the shipping industry (IMO, BIMCO, ICS, IACS, IAPH)- Ship Registration
and Classification.

UNIT II LINER SHIPPING OPERATIONS 9

Liner shipping business - Types of Liner services - Container shipping lines and their services -
Break bulk, Ro-Ro and project cargo services - Liner freight rates - Liner cargo documentation -
Liner agency functions
UNIT III DRY BULK BUSINESS 9
Dry Bulk shipping business- World's leading dry bulkports and cargoes handled by them -
Types of Dry bulk ships and the Dry Bulk industry structure - Dry bulk market indices - Types
of Chartering - Port agency functions.

UNIT IV TANKER OPERATIONS AND BUSINESS 9

Liquid Bulk shipping business - World's leading wet bulk ports and cargoes handled by them- Types
of tankers and gas carriers - Tanker freighting system (worldscale) -Factors affecting Tanker
markets-Marine pollution conventions.

UNIT V SHIP BUILDING AND REPAIR 9

Service providers to shipping industry -Ship management companies -Ports, inland terminals and
Container Freight Stations- Ship building and repair yards -Financing the Shipping industry - Marine
insurance providers.
TOTAL: 45 PERIODS
COURSE OUTCOMES:
The students would be acquainted with the basics of shipping management
The students will learn the skills needed for shipping industry

REFERENCES:
1. Michael Robarts, Branch‟s Elements of Shipping, Ninth Edition, Routledge, 2014.
2. Peter Brodie, Commercial Shipping Handbook, Third Edition, Informa Law from
Routledge, 2014.
3. Review of Maritime Transport, UNCTAD, 2014.
4. Coyle et.al, Management Of Transportation, 7th Edition, Cengage Learning, 2011
 UNIT – I

INTRODUCTION
Role of Shipping in International trade
Ship transport is watercraft carrying people (passengers) or goods (cargo).

Sea transport has been the largest carrier of freight throughout recorded history. Although the
importance of sea travel for passengers has decreased due to aviation, it is effective for short
trips and pleasure cruises. Transport by water is cheaper than transport by air, despite fluctuating
exchange rates and CAF charges to account for such.
Ship transport can be realized over any distance by boat, ship, sailboat or barge, over oceans
and lakes, through canals or along rivers. Shipping may be for commerce, recreation or
the military purpose. Virtually any material can be moved by water; however, water transport
becomes impractical when material delivery is highly time-critical.
Containerization revolutionized ship transport starting in the 1970s. "General cargo" includes
goods packaged in boxes, cases, pallets, and barrels. When a cargo is carried in more than one mode,
it is intermodal or co-modal.

Ships and watercraft

Ships and other watercraft are used for ship transport. Types can be distinguished
by propulsion, size or cargo type. Recreational or educational craft still use wind power, while some
smaller craft use internal combustion engines to drive one or more propellers, or in the case of jet
boats, an inboard water jet. In shallow draft areas, such as the Everglades, some craft, such as
the hovercraft, are propelled by large pusher-prop fans.
Most modern merchant ships can be placed in one of a few categories, such as:
Bulk carriers, such as the Sabrina I (seen here), are cargo
ships used to transport bulk cargo items such as ore or food
staples (rice, grain, etc.) and similar cargo. They can be
recognized by the large box-like hatches on their deck, designed
to slide outboard for loading. A bulk carrier could be either dry
or wet. Most lakes are too small to accommodate bulk ships, but
a large fleet of lake freighters has been plying the Great
Lakes and St. Lawrence Seaway of North America for over a
century.
Container ships are cargo ships that carry their entire load in truck-
size containers, in a technique called containerization. They form a
common means of commercial intermodal freight transport.
Informally known as "box boats," they carry the majority of the
world's dry cargo. Most container ships are propelled by diesel
engines, and have crews of between 10 and 30 people. They
generally have a large accommodation block at the stern, directly
above the engine room.
Tankers are cargo ships for the transport of fluids, such
as crude oil, petroleum products, liquefied petroleum gas
(LPG), liquefied natural gas (LNG) and chemicals,
also vegetable oils, wine and other food - the tanker sector
comprises one third of the world tonnage.
Refrigerated ships (usually called Reefers) are cargo
ships typically used to transport perishable commodities which
require temperature-controlled transportation,mostly fruits,
meat, fish, vegetables, dairy products and

other foodstuffs.

Roll-on/roll-off ships, such as the Chi-Cheemaun, are cargo

ships designed to carry wheeled cargo such
as automobiles, trailers or railway carriages. RORO (or ro/ro)
vessels have built-in ramps which allow the cargo to be
efficiently "rolled on" and "rolled off" the vessel when in port.
While smaller ferries that operate across rivers and other short
distances still often have built-in ramps, the term RORO is
generally reserved for larger ocean-going vessels.

Coastal trading vessels, also known as coasters, are shallow-

hulled ships used for trade between locations on the same island
or continent. Their shallow hulls mean that they can get
through reefs where seagoing ships usually cannot (seagoing
ships have a very deep hull for supplies and trade etc.).
Ferries are a form of transport, usually a boat or ship, but also
other forms, carrying (or ferrying) passengers and sometimes
their vehicles. Ferries are also used to transport freight (in
lorries and sometimes unpowered freight containers) and
even railroad cars. Most ferries operate on regular, frequent,
return services. A foot-passenger ferry with many stops, such as
in Venice, is sometimes called a waterbus orwater taxi. Ferries
form a part of the public transport systems of many waterside
cities and islands, allowing direct transit between points at a
capital cost much lower than bridges or tunnels. Many of the
ferries operating in Northern European waters are ro/ro ships.
See the Herald of Free Enterprise and M/S Estonia disasters.
Cruise ships are passenger ships used for pleasure voyages,
where the voyage itself and the ship's amenities are considered
an essential part of the experience. Cruising has become a major
part of the tourism industry, with millions of passengers each
year as of 2006. The industry's rapid growth has seen nine or
more newly built ships catering to a North American clientele
added every year since 2001, as well as others
servicing European clientele. Smaller markets such as the Asia-
Pacific region are generally serviced by older tonnage displaced
by new ships introduced into the high growth areas. On
the Baltic sea this market is served by cruiseferries.
Ocean liner is a passenger ship designed to transport people
from one seaport to another along regular long-distance
maritime routes according to a schedule. Ocean liners may also
carry cargo or mail, and may sometimes be used for other
purposes.

Ocean liners are usually strongly built with a high freeboard to

withstand rough seas and adverse conditions encountered in the
open ocean, having large capacities for fuel, food and other
consumables on long voyages. These were the main stay of
most passenger transport companies, however, due to the
growth of air travel, the passenger ships saw a steady decline.
Cruise ships later filled the void and are primarily used by
people who still have a love of the sea and offer more amenities
compared to the older passenger ships.
Cable layer is a deep-sea vessel designed and used to lay
underwater cables for telecommunications, electricity, and such.
A large superstructure, and one or more spools that feed off
the transom distinguish it.

A tugboat is a boat used to manoeuvre, primarily by towing or

pushing other vessels (see shipping) in harbours, over the open
sea or through rivers and canals. They are also used to
tow barges, disabled ships, or other equipment like towboats.

A dredger (sometimes also called a dredge) is a ship used to

excavate in shallow seas or fresh water areas with the purpose
of gathering up bottom sediments and disposing of them at a
different location.

A barge is a flat-bottomed boat, built mainly

for river and canal transport of heavy goods. Most barges are
not self-propelled and need to be moved by tugboats towing
or towboats pushing them. Barges on canals (towed by draft
animals on an adjacent towpath) contended with the railway in
the early industrial revolution but were outcompeted in the
carriage of high value items due to the higher speed, falling
costs, and route flexibility of rail transport.
 A Multi-purpose ship (sometimes called a general cargo ship) is
used to transport a variety of goods from bulk commodities to
break bulk and heavy cargoes. To provide maximum trading
flexibility they are usually geared and modern examples are
fitted for the carriage of containers and grains. Generally they
will have large open holds and tweendecks to facilitate the
carriage of different cargoes on the same voyage. The crew will
be highly competent in the securing of break bulk cargoes and
the ship will be equipped with various lashings and other
equipment for sea fastening.
A liner will have a regular run and operate to a schedule. The scheduled operation requires
that such ships are better equipped to deal with causes of potential delay such as bad weather. They
are generally higher powered than tramp ships with better seakeeping qualities, thus they are
significantly more expensive to build. Liners are typically built for passenger and container operation
though past common uses also included mail and general cargo.

A tramp has no fixed run but will go wherever a suitable cargo takes it. Thus a ship and crew
may be chartered from the ship owner to fetch a cargo of grain from Canada to Latvia, the ship may
then be required to carry a cargo of coal from Britain to Melanesia. Bulk carriers and cruise ships are
examples of ships built to operate in this manner.

International trade is the exchange of capital, goods, and services across international borders or
territories, which could involve the activities of the government and individual.[1] In most countries,
such trade represents a significant share of gross domestic product (GDP). While
international trade has been present throughout history (for example Uttarapatha, Silk Road, Amber
Road,salt road), its economic, social, and political importance has been on the rise in recent centuries.

Size categories
Container ships are distinguished into 7 major size categories: small feeder, feeder,
feedermax, Panamax, Post-Panamax, New Panamaxand ultra-large. As of December 2012, there are
161 container ships in the VLCS class (Very Large Container Ships, more than 10,000 TEU), and 51
ports in the world can accommodate them.
The size of a Panamax vessel is limited by the Panama canal's lock chambers, which can
accommodate ships with a beam of up to 32.31 m, a length overall of up to 294.13 m, and a draft of
up to 12.04 m. The Post-Panamax category has historically been used to describe ships with a
moulded breadth over 32.31 m, however the Panama Canal expansion project caused some changes in
terminology. The New Panamax category is based on the maximum vessel-size that is able to transit a
new third set of locks, which opened on June 2016.The third set of locks were built to accommodate a
container ship with a length overall of 366 metres (1,201 ft), a maximum width of 49 metres (161 ft),
and tropical fresh-water draft of 15.2 metres (50 ft).Such a vessel, called New Panamax class, would
be wide enough to carry 19 rows of containers, have a total capacity of approximately 12,000 TEU
and be comparable in size to a capesize bulk carrier or a Suezmax tanker.

Container ships under 3,000 TEU are generally called feeders. Feeders are small ships that typically
operate between smaller container ports. Some feeders collect their cargo from small ports, drop it off
at large ports for transshipment on larger ships, and distribute containers from the large port to smaller
regional ports.This size of vessel is the most likely to carry cargo cranes on board.

Container Ship Size Categories

Capac
ity
Name Length Beam Draft Example
(TEU)
[18]

Ultra Large 14,50 1,200 ft 160.7 ft 49.9 ft With a length of 400 m,

Container 1 and (366 m) (49 m) (15.2 m) a width of 59 m, draft
Vessel higher and and and of 14.5 m, and a
(ULCV) longer wider deeper capacity of 18,270
TEU, ships of
the Maersk Triple E
class class are able to
transit the Suez
canal. (Photo: MV Mær
sk Mc-Kinney Møller.)
New 10,00 1,200 ft 160.7 ft 49.9 ft With a beam of 43 m,
Panamax 0– (366 m) (49 m) (15.2 m) ships of the COSCO
14,50 Guangzhou class are
0 much too big to fit
through the Panama
Post- 5,101
Canal's old locks, but
Panamax –
could easily fit through
10,00
the new expansion.
0
(Photo: The 9,500
TEUMV COSCO
Guangzhou pierside in
Hamburg. )

Panamax 3,001 965 ft 106 ft 39.5 ft Ships of the Bay-class

– (294.13 m (32.31 m (12.04 m are at the upper limit of
5,100 ) ) ) the Panamax class, with
an overall length of
292.15 m, beam of
32.2m, and maximum
depth of 13.3 m. (Photo:
The 4,224 TEU
MV Providence
Baypassing through the
Panama Canal.)

Feedermax 2,001 Container ships under

– 3,000 TEU are typically
3,000 called feeders. In some
areas of the world, they
Feeder 1,001
might be outfitted with
–
cargo cranes. (Photo:
2,000
The 384
Small Up to TEU MV TransAtlantic
 International Organizations serving the shipping industry
The International Chamber of Shipping is the world's principal shipping organisation, representing
around 80% of the world’s merchant tonnage, through membership by national shipowners'
associations. It is concerned with all regulatory, operational and legal issues.

A major ICS activity is as a consultative body at the United Nations agency with responsibility for the
safety of life at sea and the protection of the marine environment, the International Maritime
Organization.

ICS is unique in that unlike other international shipping trade associations it represents the global
interests of all the different trades in the industry: bulk carrier operators, tanker operators, passenger
ship operators and container liner trades, including shipowners and third party ship managers.

ICS has consultative status with a number of other intergovernmental bodies which affect shipping,
these include: the World Customs Organization, the International Telecommunications Union,
the United Nations Conference on Trade and Development, and the World Meteorological
Organization. The ICS also has close relationships with industry organisations representing different
maritime interests such as shipping, ports, pilotage, the oil industry, insurance and classification
societies responsible for the surveying of ships. The ICS is also responsible for several publications in
use in the marine industry, in conjunction with Witherby Seamanship. The UK Chamber of
Shipping is a primary member of the ICS.
 International Maritime Organization (IMO)

IMO flag.

International Maritime Organization :

The International Maritime Organization (IMO), formerly known as the Inter-Governmental

Maritime Consultative Organization (IMCO), was established in 1948 through the United Nations to
coordinate international maritime safety and related practices. However the IMO did not enter into
full force until 1958.

Headquartered in London, United Kingdom, the IMO promotes cooperation among

government and the shipping industry to improve maritime safety and to prevent marine pollution.
IMO is governed by an Assembly of members and is financially administered by a Council of
members elected from the Assembly. The work of IMO is conducted through five committees and
these are supported by technical sub-committees. Member organizations of the UN organizational
family may observe the proceedings of the IMO. Observer status may be granted to qualified non-
governmental organizations.

The IMO is supported by a permanent secretariat of employees who are representative of its
members. The secretariat is composed of a Secretary-General who is periodically elected by the
Assembly, and various divisions including, inter alia, marine safety, environmental protection, and a
conference section.

BIMCO :
The Baltic and International Maritime Council (BIMCO) is the largest of the international
shipping associations representing ship-owners; its membership controls around 65 percent of the
world’s tonnage and it has members in more than 120 countries, including managers, brokers and
agents. The association’s main objective is to protect its global membership through the provision of
quality information and advice, and while promoting fair business practices, facilitate harmonisation
and standardization of commercial shipping practices and contracts.

In support of its commitment to promote the development and application of global

regulatory instruments, BIMCO is accredited as a Non-Governmental Organisation (NGO) with all
relevant United Nations organs. In an effort to promote its agenda and objectives, the association
maintains a close dialogue with governments and diplomatic representations around the world,
including maritime administrations, regulatory institutions, and other stakeholders within the areas
of EU, the United States, and Asia.

Headquarter

BIMCO also conducts various training programmes around the world for the Maritime Community

BIMCO
BIMCO Education offers a number of live courses (master classes, seminars,
workshops, shipping schools) and online courses throughout the year.

Classification society
A classification society is a non-governmental organization that establishes and
maintains technical standards for the construction and operation of ships and offshore
structures. The society will also validate that construction is according to these standards and
carry out regular surveys in service to ensure compliance with the standards.

To avoid liability, they explicitly take no responsibility for the safety, fitness for
purpose,or seaworthiness of the ship.
 Responsibilities
Classification societies set technical rules, confirm that designs and calculations meet
these rules, survey ships and structures during the process of construction and
commissioning, and periodically survey vessels to ensure that they continue to meet the rules.
Classification societies are also responsible for classing oil platforms, other offshore
structures, and submarines. This survey process covers diesel engines, important shipboard
pumps and other vital machinery.

Classification surveyors inspect ships to make sure that the ship, its components and
machinery are built and maintained according to the standards required for their class

Flags of convenience
The advent of open registers, or flags of convenience, has led to competition between
classification societies and to a relaxation of their standards.

Flags of convenience have lower standards for vessel, equipment, and crew than
traditional maritime countries and often have classification societies certify and inspect the
vessels in their registry, instead of by their own shipping authority. This made it attractive for
ship owners to change flag, whereby the ship lost the economic link and the country of
registry. With this, also the link between classification society and traditional maritime
country became less obvious - for instance Lloyd's Register with the United Kingdom and
ABS with the United States. This made it easier to change class and introduced a new
phenomenon; class hopping. A ship owner that is dissatisfied with class can change to a
different class relatively easily. This has led to more competition between classes and a
relaxation of the standards. In July 1960, Lloyds Register published a new set of rules. Not
only were scantlings relaxed, but the restrictions on tank size were just about eliminated. The
other classification Societies quickly followed suit.[4] This has led to the shipping industry
losing confidence in the classification societies, and also to similar concerns by the
European Commission

To counteract class hopping, the IACS has established TOCA (Transfer Of Class Agreement).

In 1978, a number of European countries agreed in The Hague on memorandum that

agreed to audit whether the labour conditions on board vessels were according to the rules of
the ILO. After the Amoco Cadiz sank that year, it was decided to also audit on safety and
pollution. To this end, in
1982 the Paris Memorandum of Understanding (Paris MoU) was agreed upon, establishing Port State
Control, nowadays 24 European countries and Canada. In practice, this was a reaction on the failure
of the flag states - especially flags of convenience that have delegated their task to classification
societies - to comply with their inspection duties.

Today

Today there are a number of classification societies, the largest of which are Bureau Veritas,
the American Bureau of Shipping, Lloyd's Register and DNV GL. Classification societies
employ ship surveyors, material engineers, piping engineers, mechanical engineers, chemical
engineers and electrical engineers, often located at ports and office buildings around the world.

Marine vessels and structures are classified according to the soundness of their structure and
design for the purpose of the vessel. The classification rules are designed to ensure an acceptable
degree of stability, safety, environmental impact, etc.

In particular, classification societies may be authorised to inspect ships, oil rigs, submarines,
and other marine structures and issue certificates on behalf of the state under whose flag the ships are
registered.

As well as providing classification and certification services, the larger societies also conduct
research at their own research facilities in order to improve the effectiveness of their rules and to
investigate the safety of new innovations in shipbuilding.

There are more than 50 marine classification organizations worldwide, some of which are listed
below.

List of classification societies

Name Abbreviation Date Head office IACS member?

Lloyd's Register LR 1760 London Yes

Bureau Veritas BV 1828 Paris Yes

Name Abbreviation Date Head office IACS member?

Croatian Register of Shipping/

CRS 1858/ 1949 Split Yes
Austrian Veritas

Registro Italiano Navale RINA 1861 Genoa Yes

American Bureau of Shipping ABS 1862 Houston Yes

DNV GL DNV GL 1864 Oslo Yes

Nippon Kaiji Kyokai (ClassNK) NK 1899 Tokyo Yes

Russian Maritime Register of

RS 1913 Saint Petersburg Yes
Shipping

Hellenic Register of Shipping HR 1919 Piraeus No

Polish Register of Shipping PRS 1936 Gdańsk Yes

Phoenix Register of Shipping PHRS 2000 Piraeus No

Bulgarian Register of Shipping BRS (БКР) 1950 Varna No

CR Classification Society CR 1951 Taipei No

China Classification Society CCS 1956 Beijing Yes

Korean Register of Shipping KR 1960 Busan Yes

Turk Loydu TL 1962 Istanbul No

Name Abbreviation Date Head office IACS member?

Biro Klasifikasi Indonesia BKI 1964 Jakarta No

Vietnam Register VR 1964 Hanoi, Vietnam No

Register of Shipping Albania ARS 1970 Durres No

Union of
Union Marine Classification Society UMCS 1970 No
Comoros

Registro Internacional Naval[7] RINAVE 1973 Lisbon No

Indian Register of Shipping IRS 1975 Mumbai Yes

International Naval Surveys Bureau INSB 1977 Piraeus No

Asia Classification Society ACS 1980 Tehran No

Brazilian Register of Shipping RBNA 1982 Rio de Janeiro No

Registro Cubano de Buques RCB 1982 La Habana No

International Register of Shipping IROS 1993 Miami No

Ships Classification Malaysia SCM 1994 Shah Alam No

Isthmus Bureau of Shipping IBS 1995 Panama No

Guardian Bureau of Shipping GBS 1996 Syria No

Name Abbreviation Date Head office IACS member?

Shipping Register of Ukraine RU (РУ) 1998 Kyiv No

Orient Register of Shipping ORIENT Class 2000 Philippines No

Overseas Marine Certification

OMCS 2004 Panama No
Services

Intermaritime Certification Services ICS Class 2005 Panama No

Iranian Classification Society ICS 2007 Tehran No

Venezuelan Register of Shipping VRS 2008 London No

Tasneef-Emirates Classification
TASNEEF 2012 Abu Dhabi No
society

Mediterranean Shipping Register MSR 2012 Great Britain No

International Classification of Ship

ICSM 2008 Kuala Lumpur No
Malaysia

Pacific Marine Services PMS 2013 Ajman No

 IAPH
International Association of Ports and Harbors

The International Association of Ports and Harbors (IAPH) is the global trade
association for seaports worldwide.

It is headquartered in Tokyo, Japan. Formed in 1955, it is now recognised as

the NGO representing ports worldwide. With over 200 ports in membership, as well as numerous
national port representative bodies, it now has consultative status with
5 UN agencies, including UNCTAD and the IMO.

History :
On November 7th 1955, some 100 delegates from 38 ports and maritime organizations in 14
countries gathered in Los Angeles to announce the creation of the International Association of Ports
and Harbors (IAPH). It marked its 50th Anniversary (Golden Jubilee) in 2005. Over the past six
decades, IAPH has steadily developed into a global alliance of ports, representing today some 180
ports and some 140 port-related businesses in 90 countries. The member ports together handle well
over 60% of the world’s sea-borne trade and nearly 80% of the world container traffic. It is a non-
profit-making and non-governmental organization (NGO) headquartered in Tokyo, Japan.
 UNIT–II

Liner shipping business:

A cargo ship or freighter is any sort of ship or vessel that carries cargo,goods, and materials
from one port to another. Thousands of cargo carriers ply the world's seas and oceans each year,
handling the bulk of international trade. Cargo ships are usually specially designed for the task, often
being equipped with cranes and other mechanisms to load and unload, and come in all sizes. Today,
they are almost always built by welded steel, and with some exceptions generally have a life
expectancy of 25 to 30 years before being scrapped.

Definitions

The words cargo and freight have become interchangeable in casual usage. Technically,
"cargo" refers to the goods carried a board the ship for hire, while "freight" refers to the compensation
the ship or charterer receives for carrying the cargo.

Generally, the modern ocean shipping business is divided into two classes:

1. Liner business: typically (but not exclusively) container vessels (wherein "general
cargo" is carried in 20 or 40-foot containers), operating as "common carriers", calling a
regularly published schedule of ports. A common carrier refers to a regulated service where
any member of the public may book cargo for shipment, according to long-established and
internationally agreed rules.

2. Tramp-tanker business: generally this is private business arranged between the

shipper and receiver and facilitated by the vessel owners or operators, who offer their vessels
for hire to carry bulk (dry or liquid) or break bulk (cargoes with individually handled pieces)
to any suitable port(s)in the world, according to a specifically drawn contract, called a
charter party.

Larger cargo ships are generally operated by shipping lines: companies that specialize in the
handling of cargo in general. Smaller vessels, such as coasters, are often owned by their operators.
 The earliest records of waterborne activity mention the carriage of items for trade; the
evidence of history and archaeology shows the practice to be widespread by the beginning of the 1st
millennium BC, and as early as the 14th and 15th centuries BC small Mediterranean cargo ships like
those of the 50 foot long(15- 16metre) Ulubu run ship were carrying 20tons of exotic cargo; 11tons of
raw copper, jars, glass, ivory, gold, spices, and treasures from Canaan, Greece, Egypt, and Africa.
The desire to operate trade routes over longer distances, and throughout more seasons of the year,
motivated improvements in ship design during the Middle Ages.

Before the middle of the 19th century, the incidence of piracy resulted in most cargo ships
being armed, sometimes quite heavily, as in the case of the Manila galleon sand East India men. They
were also sometimes escorted by warships.

Types

A US cargo ship off Mc Murdo Station, Antarctica

Cargo ships/freighters can be divided into five groups, according to the type of cargo they carry. These
groups are:

1. General cargo vessels

2. Tankers

3. Dry bulk carriers

4. Multi-purpose vessels

5. Reefer ships

General cargo vessels carry packaged items like chemicals, foods, furniture, machinery, motor- and
military vehicles, footwear, garments, etc.
Tankers carry petroleum products or other liquid cargo.

Dry bulk carriers carry coal, grain, ore and other similar products in loose form.

Multi-purpose vessels, as the name suggests, carry different classes of cargo – e.g. liquid and general
cargo – at the same time.

A Reefer (or Refrigerated) ship is specifically designed[1]and used for shipping perishable
commodities which require temperature-controlled, mostly fruits, meat, fish, vegetables, dairy
products and other foods tuffs.

Specialized types of cargo vessels include container ships and bulk carriers(technically
tankers of all sizes are cargo ships, although they are routinely thought of as a separate category).
Cargo ships fall into two further categories that reflect the services they offer to industry: liner and
tramp services. Those on a fixed published schedule and fixed tariff rates are cargo liners. Tramp
ships do not have fixed schedules. Users charter them to haul loads. Generally, the smaller shipping
companies and private individuals operate tramp ships. Cargo liners run on fixed schedules published
by the shipping companies. Each trip a liner takes is called a voyage. Liners mostly carry general
cargo. However, some cargo liners may carry passengers also. A cargo liner that carries 12 or more
passengers is called a combination or passenger-cum-cargo line.

Terms of shipment

Harbour cranes unload cargo from a containership at the Jawaharlal Nehru Port,Navi Mumbai,India.

Common trading terms used in shipping goods internationally include:

 Free on board (FOB)]–the exporter delivers the goods at the specified location (and on board
the vessel). Costs paid by the exporter include load, lash, secure and stow the cargo, including
securing cargo not to move in the ships hold, protecting the cargo from contact with the double
bottom to prevent slipping, and protection against damage from condensation. For example,
"FOBJNPT" means that the exporter delivers the goods to the Jawaharlal Nehru Port, India, and
pays for the cargo to be loaded and secured on the ship. This term also declares that where the
responsibility of shipper ends and that of buyer starts. The exporter is bound to deliver the goods
at his cost and expense. In this case, the freight and other expenses for outbound traffic are borne
by the importer.

 Carriage and freight (now known in the US as "cost and freight")(C&F, CFR, CNF):
Insurance is payable by the importer, and the exporter pays all expenses incurred in transporting
the cargo from its place of origin to the port/airport and ocean freight/air freight to the
port/airport of destination. For example, C&F Los Angeles (the exporter pays the ocean
shipping/air freight costs to Los Angeles).most of the governments ask their exporters to trade on
these terms to promote their exports worldwide such as India and China. Many of the shipping
carriers (such as UPS,DHL,FedEx) offer guarantees on their delivery times. These are known as
GSR guarantees or "guaranteed service refunds"; if the parcels are not delivered on time, the
customer is entitled to a refund.

 Carriage, insurance and freight (now known in the US as "cost, insurance and freight")(CIF):
Insurance and freight are all paid by the exporter to the specified location. For example, at CIF
Los Angeles, the exporter pays the ocean shipping/air freight costs to Los Angeles including the
insurance of cargo. This also states that responsibility of the shipper ends at the Los Angeles port.

 The term "best way" generally implies that the shipper will choose the carrier who offers the
lowest rate (to the shipper) for the shipment. In some cases, however, other factors, such as better
insurance or faster transit time will cause the shipper to choose an option other than the lowest
bidder.
 Break bulk, Ro-Ro and project cargos ervices
Break bulk cargo

Steve do reson a NewYork dock loading barrels of corn syrup onto a barge on the Hudson River.
Photograph by Lewis Hine, circa 1912

In shipping ,break bulk cargo or general cargo are goods that must be loaded individually,
and not in intermodal containers nor in bulk as with oil or grain. Ships that carry this sort of cargo are
often called general cargo ships. The term break bulk derives from the phrase breaking bulk—the
extraction of a portion of the cargo of a ship or the beginning of the unloading process from the ship's
holds. These goods may not be in shipping containers. Break bulk cargo is transported in bags, boxes,
crates, drums, or barrels. Unit loads of items secured to a pallet or skid are also used.[1]

A break-in-bulk point is a place where goods are transferred from one mode of transport to
another, for example the docks where goods transfer from ship to truck.

Break bulk was the most common form of cargo for most of the history of shipping. Since the
late1960sthevolumeofbreakbulkcargohasdeclineddramaticallyworldwide as containerization has
grown. Moving cargo on and off ship in containers is much more efficient, allowing ships to spend
less time in port. Break bulk cargo also suffered from greater theft and damage.
 Loading and unloading

MixedcargobeingloadedintoshipsatPortAdelaidecirca1927

Unloadingbarrelsfromaship,Accra,circa1958

A refrigerated general cargo ship.The Gladstone Star was built in 1957 and scrapped in1982.

Although cargo of this sort can be delivered straight from a truck or train on to a ship, the most
common way is for the cargo to be delivered to the dock in advance of the arrival of the ship and

for the cargo to be stored in warehouses. When the ship arrives the cargo is then taken from the
warehouse to the quay and then lifted on board by either the ship's gear (derricks or cranes) or by the
dock side cranes. The discharge of the ship is the reverse of the loading operation.

Loading and discharging by break bulk is labour-intensive. The cargo is brought to the quay
next to the ship and then each individual item is lifted on board separately. Some items such as sacks
or bags can be loaded in batches by using a sling or cargo net and others such as cartons can be
loaded onto trays before being lifted on board. Once on board each item must be stowed separately.

Before any loading takes place any signs of the previous cargo are removed. The holds are
swept, washed if necessary and any damage to them repaired. Dunnage is laid ready for the cargo oris
just be put in bundles ready for the stevedores to lay out as the cargo is loaded.

There are many sorts of break bulk cargo but amongst them are:

Bagged cargo
Bagged cargo(e.g. coffee in sacks) is stowed on double dunn age and kept clear of the ship's
sides and bulkheads. Bags are kept away from pillars and stanchions by covering it with matting or
waterproof paper.

Baled goods
Baled goods are stowed on single dunnage at least 50 mm (1.97in) thick. The bales must be
clean with all the bands intact. Stained or oily bales are rejected. All fibres can absorb oil and are
liable to spontaneous combustion. As a result, they are kept clear of any new paintwork. Bales close
to the deckhead are covered to prevent damage by dripping sweat.

Barrel sand casks

Woodenbarrelsarestowedontheirsideson"beds"ofdunnagewhichkeepsthemiddleofthe side (the
bilge) off the deck and they are stowed with the bung at the top. To prevent movement wedges called
quoins are put in on top of the "beds". Barrels should be stowed fore and aft and not athwart ships.
Once the first tier has been loaded the next tier of barrels fits into the hollows between the barrels,
this is known as stowing "bilge and cant line".[4]Barrels which are also known as casks or tuns are
primarily use for transporting liquids such as wine, water, brandy, whiskey, and even oil. They are
usually built in spherical shape to make it easier to roll and have less friction when changing
direction.
 Corrugated boxes
Corrugated boxes are stowed on a good layer of dunnage and kept clear of any moisture.
Military and weather resistant grades of corrugated fiberboard are available. They are not over stowed
with anything other than similar boxes. They are frequently loaded on pallets to form a unit load; if
so the slings that are used to load the cargo are frequently left on to facilitate discharge.

Wooden shipping containers

Wooden boxes or crates are stowed on double dunnage in the holds and single dunnage in the
'tween decks. Heavy boxes are given bottom stowage. The loading slings are often left on to aid
Drums

Metal drums are stowed on end with dunnage betweentiers, in the longitudinal space of the ship

Paperreels

Reels or rolls are generally stowed on their sides and care is taken to make sure they are not crushed.

Motorvehicles

Automobiles are lifted on board and then secured using lashings. A great deal of care is taken
tomakesuretheydonotgetdamaged.Vehiclesarealsopreparedbyensuringpotentiallyhazardous
Loading paper rolls in the port of Hamina (Finland)March2016
liquids(gasoline,etc.)have been removed.(This is in contrast to Ro-ro(Roll-on/roll-off)vessels where
vehicles are driven on and off the ship on their own wheels.)

Steel girders

Any long heavy items are stowed fore and aft. If they are stowed athwart ships they are liable
to shift if the ship rolls heavily and pierce the side of the ship.

Advantagesanddisadvantages

The biggest disadvantage with break bulk is that it requires more resources at the wharf at
both ends of the transport—longshoremen, loading cranes, warehouses, transport vehicles—and often
takes up more dock space due to multiple vessels carrying multiple loads of break bulk cargo. Indeed,
the decline of break bulk did not start with containerisation; rather, the advent of tankers and bulk
carriers reduced the need for transporting liquids in barrels and grains in sacks. Such tankers and
carriers use specialised ships and shore facilities to deliver larger amounts of cargo to the dock and
effect faster turnarounds with fewer personnel once the ship arrives; however, they do require large
initial investments in ships, machinery, and training, slowing their spread to areas where funds to
overhaul port operations and/or training for dock personnel in the handling of cargo on the newer
vessels may not be available.As modernization of ports and shipping fleets spreads across the world,
the advantages of using containerization and specialized ships over break-bulk has sped the overall
decline of break-bulk operations around the world. In all, the new systems have reduced costs as well
as spillage and turnaround times; in the case of containerisation, damage and pilfering as well.

Break bulk continues to hold an advantage in are as where port development has not kept
pace with shipping technology; break-bulk shipping requires relatively minimal shore facilities—a
wharf for the ship to tie to, dock workers to assist in unloading, warehouses to store materials for later
reloading onto other forms of transport. As a result, there are still some areas where break-bulk
shipping continues to thrive. Goods shipped break-bulk can also be offloaded onto smaller
vesselsandlightersfortransportintoeventhemostminimally-developedportwherethenormally large
container ships, tankers, and bulk carriers might not be able to access due to size and/or water depth.
In addition, some ports capable of accepting larger container ships/tankers/bulk transporters still
require goods to be offloaded in break-bulk fashion; for example, in the outlying islands of Tuvalu,
fuel oil for the power stations is delivered in bulk but has to be offloaded in barrels.
 Roll-on/roll-off
"Carcarrier"redirectshere.ForROROtrain,see Rollinghighway.Fortherailroadcar, see
Autorack. For the trailer owed by a tractor, see car carrier trailer.

"RORO"redirectshere.Forotheruses,seeRoro(disambiguation).

Roll-on/roll-off(ROROorro-ro)shipsarevesselsdesignedtocarrywheeled cargo,such
ascars,trucks,semi-trailertrucks,trailers,andrailroadcars,thataredrivenonandofftheshipon their own
wheels or using a platform vehicle, such as a self-propelled modular transporter. This is in contrast to
lift-on/lift-off (LoLo) vessels, which use a crane to load and unload cargo.

Loadingaro-ropassengercarferry
 RORO vessels have either built-in or shore-based rampsthat allow the cargo to be efficiently
rolled on and off the vessel when in port. While smaller ferries that operate across rivers and other
short distances often have built-in ramps, the term RORO is generally reserved for large oceangoing
vessels. The ramps and doors may be located in stern, bow or sides, or any combination thereof.

History

Atfirst,wheeledvehiclescarriedascargoonoceangoingshipsweretreatedlikeanyothercargo.
Automobileshadtheirfueltanksemptiedandtheirbatteriesdisconnectedbeforebeinghoistedinto

The ship’shold, where they were chocked and secured. This process wastedious and difficult, and
vehicles were subject to damage and could not be used for routine travel.

An early roll-on/roll-off service was a train ferry, started in 1833 by the Monkland and Kirkintilloch
Railway, which operated a wagon ferry on the Forth and Clyde Canal in Scotland.[1]

Types

Types of RORO vessels include ferries,cruise ferries,cargo ships,barges, and RoRo service
for air deliveries. New automobiles that are transported by ship are often moved on a large type of
RORO called a pure car carrier (PCC) or pure car/truck carrier (PCTC).

Elsewhere in the shipping industry, cargo is normally measured by the metric tonne, but
RORO cargo is typically measured in lanes in metres (LIMs). This is calculated by multiplying the

MSUlysses

cargo length in metres by the number of decks and by its width in lanes (lane width differs
from vessel to vessel, and there are several industry standards). On PCCs, cargo capacity is often
measured in RTorRT43 units(based on a 1966ToyotaCorona,thefirstmass-produced car to be shipped
in

FerryterminalforthePeninsulaSearoadTransportservice,withca
rsleavinga ferry
specialised car-carriers and used as the basis of RORO vessel size. 1 RT is approximately4m of lane
space required to store a 1.5m wide Toyota Corona) or in car-equivalent units (CEU).

The largest RORO passenger ferry is MSColor Magic, a 75,100GTcruise ferry that entered
service in September 2007 for Color Line. Built in Finland by Aker Finnyards, it is 223.70 m (733ft
11 in) long and 35 m (114 ft 10 in) wide, and can carry550 cars, or 1270 lane meters of cargo.

The RORO passenger ferry with the greatest car-carrying capacity is Ulysses(named after
anovel by James Joyce), owned by Irish Ferries.Ulysses entered service on 25 March 2001 and
operates between Dublin and Holyhead.The50,938GTshipis209.02m(685ft9 in)long and
31.84m(104 ft6in)wide, andcancarry1342cars/4101 lane meters of cargo.

Car carriers

ThecarcarrierJohannSchulteduringdischargeofVolkswageninBaltimore

Apurecarcarriership'sstarboardsideshowingsideramp
MVTønsberg,thelargestcar/truckcarrier.

The first cargo ships specially fitted for the transport of large quantities of cars came into
service in the early sixties. These ships still had their own loading gear and so-called hanging decks
inside.They were, for example, chartered by the German Volkswagen AGto transport vehicles in the
U.S. and Canada. Since 1970, the market for exporting and importing cars has increased dramatically
and the number and type of ROROs has increased also. In 1973, Japan’s K LinebuiltEuropean
Highway, the first pure car carrier (PCC), which carried 4,200 automobiles. Today’s pure car
carriers and their close cousins, the pure car/truck carrier (PCTC), are distinctive ships with a box-like
superstructure running the entire length and breadth of the hull, fully enclosing the cargo. They
typically have a stern ramp and a side ramp for dual loading of thousands of vehicles (such as cars,
trucks, heavy machineries, tracked units, Mafi trailers, and loose statics), and extensive automatic fire
control systems.

The PCTCh as lift able decks to increase vertical clearance, as well as heavier decks for"high-
and-heavy" cargo.A6,500-unit car ship,with12 decks, can have three decks which can take cargo up
to150shorttons(136t;134longtons)withliftablepanelstoincreaseclearancefrom1.7to6.7m (5ft 7 in to 22
ft 0in) on some decks. Lifting decks to accommodate higher cargo reduces the total capacity.

With the building of Wallenius Wilhelmsen Logistics's8,000-CEU car carrier Faustout of

Stockholm in June 2007 car carriers entered a new era of the large car and truck carrier (LCTC).
Currently, the largest are Wilh. Wilhelmsen's "Mark V" ships, led by MV Tønsberg.

The car carrier Auriga Leader, built in 2008 with a capacity of 6,200 cars, is the world's first
partially solar powered ship
 Variations

USNSShughart,anon-combatantROROvessel,unloadingStrykerarmoredvehicles

ROPAX
The acronym ROPAX(roll-on/roll-off passenger) describes a RORO vessel built for freight
vehicle transport along with passenger accommodation. Technically this encompasses all ferries with
both a roll-on/roll-off car deck and passenger-carrying capacities, but in practice, ships with facilities
for more than 500 passengers are often referred to as cruise ferries.

ConRO
The ConRo vessel is a hybrid of a RORO and a container ship. This type of vessel has a
below-deck area used for vehicle storage while stacking containerized freight on the top decks.
ConRo ships, such as those in the fleet of Atlantic Container Line,can carry a combination of
1,900twenty-foot equivalent units (TEU) of containers, upto1,000TEU of heavy equipment, project
and oversized cargo on three decks, and up to 2,000 automobiles on five decks. Separate internal
ramp systems within the vessel segregate automobiles from other vehicles, Mafi trailers, and break-
bulk cargo.

RoLo

ARoLo(roll-on/lift-off) vessel is another hybrid vessel type, with ramps serving vehicle
decks but with other cargo decks only accessible when the tides change or by the use of a crane.
LMSR

Large, Medium-Speed Roll-on/Roll-off (LMSR) refers to several classes of Military Sealift

Command(MSC) roll-on/roll-off type cargo ships. Some are purpose-built to carry military cargo,
while others are converted.
Project cargo
Projectcargoisatermusedtobroadlydescribethenationalorinternationaltransportationof large,
heavy, high value or a critical (to the project they are intended for) pieces of equipment. Also
commonly referred to as Heavy lift, this includes shipments made of various components which need
disassembly for shipment and reassembly after delivery,

Project cargo is also a term used in the international insurance industry to describe DSU
(Delay in Start Up) Marine Insurance, a specialized form of Marine cargo insurance.
Freight rate
A freight rate(historically and in ship chartering simply freight[1])is a price at which a
certaincargoisdeliveredfromonepointtoanother.Thepricedependsontheformofthecargo, the mode of
transport (truck,ship,train,aircraft),the weight of the cargo,and the distance to the delivery destination.
Many shipping services, especially air carriers, use dimensional weight for calculating the price,
which takes into account both weight and volume of the cargo.

For example,bulk coal long-distance rates in America areapproximately1cent/ton-mile.

[2]
So a 100 car train, each carrying 100 tons, over a distance of 1000 miles, would cost $100,000. On
the other hand, Intermodal container shipping rates depend heavily on the route taken over the weight
of the cargo, just as long as the container weight does not exceed the maximum lading capacity.
Pricescanvarybetween$400-$10,000per Twenty foot equivalent unit (TEU)depending on the supply
and demand of a given route.

In ship chartering, freight is the price which a charterer pays a ship owner for the use of a
ship in a voyage charter.

How Freight Rate is Determined

The cost which a shipper (the consumer or business providing goods for shipment) or
consignee (the person or company to whom commodities are shipped) is charged for the
transportation of goods is determined by a number of factors. The main factors in determining the
freight rate are: mode of transportation, weight, size, distance, points of pickup and delivery, and the
actual goods being shipped. All of these factors play their own independent role in determining the
price or rate at which the freight will be transported but they are also all interconnected. When
determining which mode of transportation will be used to deliver the freight to its destination there
are many things which need to be taken into consideration which will all have an effect on the freight
rate.[7]Federal, State, and Local authorities all have their own laws and regulations with regards to the
size, weight, and type of freight which can be transported on their roads. Transportation of freight by
Rail, Water, or air craft all have their own regulations which take into account Federal, State, and
Local regulations as well as safety concerns which contribute to the rate at which freight is
transported. In general, the more freight you transport, the cheaper it is. This is an important factor in
the rate charged to people or companies shipping freight. There are many businesses out there whose
sole purpose is to make the transportation of freight cheaper and easier for small businesses and
individuals who need to move freight.

Consolidators: a firm which groups together shipments from different companies into a single
shipment. Customs Broker: A person or firm, licensed by the treasury department of their country
when required, engaged in entering and clearing goods through Customs for a client (importer).
Freight Forwarder: A person whose business is to act as an agent on behalf of the shipper to arrange
transportation services. A freight forwarder frequently makes the booking reservation. In the United
States freight forwarders are licensed by the FMC as Ocean Transportation Intermediaries and are
only designated freight forwarders for export shipments. Non-Vessel-Operating Common Carrier
(NVOCC): A cargo consolidator in ocean trades that will buy space from a carrier and re-sell it to
smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as

.
an ocean common carrier, except that it will not provide the actual ocean or intermodal service Most
of the freight shipped within the United States travels bytruck or railcar, but many of the people and
businesses shipping freight do not have enough of a good to fill a whole truck or rail car every time
they need something shipped.

Consolidators, customs brokers, freight forwarders, and NVOCC’s can be a factor in

determining freight rate because of their experience, business relationships, and the volume at which
they operate. These factors help keep the freight rate down for small businesses and the individual
with a shipping need. In the commercial trucking industry, many shippers tender loads to freight
brokers whose job it is to find qualified carriers to move the freight at an acceptable price for all
parties. Brokers have access toa suite of technological tools to help determine the most cost-effective
way to move cargo, including access to load boards. The best load boards provide rate analysis tools
based on actual transactions on every lane in North America, since their databases hold a wealth of
pricing information. For example, Dial-a-truck(DAT) offers RateViewfor carriers, brokers and
shippers, providing access to shippers’ contract rates and spot market (broker buy) rates. This allows
brokers to analyze market demand and capacity to assure competitive pricing.
Shipping agency
A shipping agency or shipping agent is the design at person or agency held responsible for
handling shipments and cargo, and the general interests of its customers, at ports and harbors
worldwide, on behalf of ship owners, managers, and charterers. In some parts of the world, these
agents are referred to as port agents or cargo brokers. There are several categories of shipping
agents such as: portagents, lineragents, and own agencies,each rendering specific services depending
on the shipping company they represent.

In other words, a ship agent is any person or company that carries out the functions of an
agent,. Irrespective of whether they are in business as a ship agent, or they perform such functions as
a adjunct to, or conjunction with, other activities such as ship owning or operating, providing cargo
handling or similar.

Shipping agents will usually take care of all the regular routine tasks of a shipping company
quickly and efficiently. They ensure that essential supplies, crew transfers, customs documentation,
and waste declarations are all arranged with the port authorities without delay. Quite often, they also
provide the shipping company with updates and reports on activities at the destination port so that
shipping companies have real-time information available to them while goods are in transit.

Tasks and Responsibilities

Succinctly, the term shipping agent refers to the relationship between the principal (in this
case the shipping company conveying the goods) and its representative, whereby the principal,
expressly or impliedly, authorizes the agent to work under his control and on his behalf.

The responsibilities/competencies as well as the remuneration of the agent may be explicitly

entered into a contract which has been concluded between himself and the ship owner. This practice
is very common in the cargo trade, booking agents, etc.

The duties of a cargo broker are similar to those of a shipping agent, but may also vary. For
example, a cargo broker will also book outward cargo and inform the shippers on which and when the
goods are to be presented and when loading and unloading is due to start. He will draw up booking
lists according to the incoming bookings and ensure that the manifest department collects the shipping
documents (shipping permits, bills of lading) which are necessary to commence the loading and
unloading operations. The collected documents are also compared with the booking lists.

Responsibilities of Shipping Agents Include:

 Ensuring a berth for the incoming ship

 Arranging for the pilot and the tugs if necessary

 Drawing up the documents for the customs and harbor services

 Arranging for the necessary ship freshwater/ provisions

 Arranging for the necessary doctor for the crew any medical assistance

 Arranging for storage bunkers if these are needed

 Arranging for the necessary repairs

 Conveying instructions to and from the ship owner

 Organizing the supply, transport and the handling of the goods

 Organizingthenecessarycontactswiththestevedores
  Collecting freights, cargoes

 Contacting shippers and the receivers of the goods

In the case of damage to cargo or the ship, the shipping agent also makes the necessary arrangements
(at the request of the ship's master or owner)with the insurance company, and for nautical inspections
and the services of experts or surveyors, etc.

The specific tasks of a cargo broker or portagent include:

 Providing the necessary information concerning the freight rates and the publication of the
sailing lists

 Looking for cargo via notices and sailing lists

 Booking of cargo and the conclusion of the agreements

 Drawingup,initiatinganddeliveringtherequireddocuments(bookinglists,shipping permits,
delivery orders) related to the cargo

 Contactingtheshippers/forwarderswithregardtothedeliveriesforshipment

 Fulfillingthenecessaryformalitiesregardingthedeliveryandreceptionofthegoods (customs etc.)

 Settling cargo claims with insurance companies

FREIGHTFORWARDER
A freight forwarder, forwarder, or forwarding agent, also known as anon-vessel
operating common carrier (NVOCC), is a person or company that organizes shipments for
individuals or corporations to get goods from the manufacturer or producer to a market, customer or
final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the
goods. A forwarder does not move the goods but acts as an expert in the logistics network. These
carriers can use a variety of shipping modes, Including ships, airplanes, trucks, and rail roads, and
often multiple modes for a single shipment. For example, the freight forwarder may arrange to have
cargo moved from a plant to an airport by truck, flown to the destination city, then moved from the
airport to a customer's building by another truck.
 International freight forwarders typically handle international shipments. International
freight forwarders have additional expertise in preparing and processing customs and other
documentation and performing activities pertaining to international shipments.

Information typically reviewed by a freight forwarder includes the commercial invoice,

shipper's export declaration, bill of lading and other documents required by the carrier or country of
export, import, and/or transshipment. Much of this information is now processed in a paperless
environment.

The FIATA shorthand description of the freight forwarder as the 'Architect of Transport'
illustrates the commercial position of the forwarder relative to its client. In Europe, some forwarders
specialize in 'niche' areas such as rail-freight, and collection and deliveries around a large port.
Document transfer fee/document handover fee

International freight forwarders, NVOCCs and customs brokers often charge for transferring
documents to another transportation company at destination. This fee is a part of the ocean freight
charges, being paid by the importer at the port of discharge in the International Commercial Term
(incoterm) FOB (free on board), and by the exporter at the origin in the in coterms CFR (cost and
freight) and CIF (cost, insurance and freight). This fee is separate from documentation fees charged
by carriers and NVOCCs as part of the freight charges on a bill of lading and is separate from other
fees for document preparation or for release of cargo. Some companies call this an administration fee,
document fee, document transfer fee, but it exists in some form in most destinations and is well
known to most shippers. Steamship carriers do not have this fee.
Bill of lading
A bill of lading(sometimes abbreviated as B/L or BoL) is a document issued by a carrier(or
his agent) to acknowledge receipt of a shipment of cargo.

A bill of lading must be negotiable, and serves three main functions:

 It is a conclusive receipt, i.e. an acknowledgment that the good shave been loaded ; and

 It contains or evidences the terms of the contract of carriage; and

 It serves as a document of title to the goods ,subject to the nemodatrule.

Bills of lading are one of three crucial documents used in international trade to ensure that
exporters receive payment and importers receive the merchandise. The other two documents are a
policy of insurance and an invoice. Whereas a bill of lading is negotiable, both a policy and an
invoice are assignable.
 Types of bills of lading
Bills of lading may take various forms, such as on-board, and received-for-shipment.

 An on-board bill of lading denotes that merchandise has been physically loaded onto a
shipping vessel, such as a freighter or cargo plane.

 A received-for-shipment bill of lading denotes that merchandise has been received, but is not
guaranteed to have already been loaded onto a shipping vessel. (Typically, it will be issued by a
freight-forwarder at a port or depot). Such bills can be converted upon being loaded.

 A straight bill of lading is used when payment has been made in advance of shipment and
requires a carrier to deliver the merchandise to the appropriate party.

 An order bill of lading is used when shipping merchandise prior to payment, requiring a
carrier to deliver the merchandise to the importer, and at the endorsement of the exporter the
carriermaytransfertitletotheimporter.Endorsedorderbillsofladingcanbetradedas a security or serve
as collateral against debt obligations.

"Claused"bills of lading

A bill of lading that denotes that merchandise is in good condition upon being received by the
shipping carrier is referred to as a "clean" bill of lading, while a bill of lading that denotes that
merchandise has incurred damage prior to being received by the shipping carrier would be known as a
"foul" or "claused" bill of lading. A claused bill of lading will have a statement (clause) written onto
the bill of lading noting down any damage or other issues. Letters of credit usually will not allow for
foul bills of lading, and the buyer is not obliged to accept any bill of lading that is not clean.

Bills of lading and charter parties compared

A charter party governs the relationship between the ship owner and the charterer. The bill of
lading governs the relationship between the shipper and the carrier (who will be either a ship owner
or a demise charterer). If the exporter (the shipper) is shipping a small amount of cargo, he will
arrange for a carrier to carry the goods for him, using a bill of lading. If the exporter needs the whole
(or a very substantial part) of the ship's cargo capacity, the exporter may need to charter the vessel,
and he will enter into a charter party agreement with the ship owner.

If the charter party is a time or voyage charter party, the ship owner will still have control of
the ship and its crew. If there is a demise (or "bareboat") charter party, the charterer will effectively
have a long lease and will have full control of the vessel. If the master (the captain) issues a B/L to a
shipper, he will be acting as an agent for the carrier, who will be either the ship owner (time or
voyage) or the charterer (demise).

In a time-charter party or voyage-charter party, if the charterer is shipping his own cargo
(rather than the cargo of a third party) he will receive a bill of lading from the master, acting as agent
of the ship owner; but that B/L will serve solely as a receipt and document of title, and its terms will

Sea way bills and electronic data interchange(EDI)

Under Art. III of the Hague-Visby Rules, a carrier must, on demand, provide the shipper with
a bill of lading; but if the shipper agrees, a lesser document such as a "sea waybill" may be issued
instead. In recent years, the use of bills of lading has declined, and they have tended to be replaced
with the sea waybill.

The main difference between these two documents is that the waybill does not confer title of
the goods to the bearer, and as a result there is no need for the physical document to be presented for
the goods to be released. The carrier will automatically release the goods to the consignee once the
import formalities have been completed. This results in a much smoother flow of trade, and has
allowed shipping lines to move towards electronic data inter change which may greatly ease the flow
of global trade.

However, for letter of credit and documentary collection transactions, it is important to retain
title to the goods until the transaction is complete. This means that the bill of lading still remains a
vital document within international trade.

If a so-called bill of lading is declared to be "non-negotiable", then it is not a true B/L, and
instead will be treated as a sea waybill.

Electronic bill of lading

For many years, the industry has sought a solution to the difficulties, costs and inefficiencies
associated with paper bills of lading. One answer is to make the bill an electronic document. An
electronic bill of lading (or eB/L) is the legal and functional equivalent of a paper bill of lading. An
electronic bill of lading must replicate the core functions of a paper bill of lading, namely its functions
as a receipt, as evidence of or containing the contract of carriage and as a document of title.
 UNIT – III

INTRODUCTION :
Liquid Bulk shipping business:
The bulk shipping service including all marine transportation businesses other than the liner trade
business. Our safe, high-quality transport services and our global sales and marketing network have
earned high evaluations from customers around the world.

Bulk cargo is commodity cargo that is transported unpackaged in large quantities. It refers to material
in either liquid or granular, particulate form, as a mass of relatively small solids, such
as petroleum/crude oil, grain, coal, or gravel. This cargo is usually dropped or poured, with a spout or
shovel bucket, into a bulk carrier ship's hold, railroad car/railway wagon, ortanker truck/trailer/semi-
trailer body. Smaller quantities (still considered "bulk") can be boxed (or drummed) and palletised.
Bulk cargo is classified as liquid or dry.

The Baltic Exchange is based in London and provides a range of indices benchmarking the cost of
moving bulk commodities, dry and wet, along popular routes around the seas. Some of these indices
are also used to settle Freight Futures, known as FFA's. The most famous of the Baltic indices is the
Baltic Dry Indices, commonly called the BDI. This is a derived function of the Baltic Capesize index
(BCI), Baltic Panamax index (BPI), Baltic Supramax index (BSI) and the Baltic Handysize index
(BHSI). The BDI has been used as a bellwether for the global economy as it can be interpreted as an
indicator of an increase or decrease in the amount of raw commodities countries are
importing/exporting.
  Bauxite

 Bulk minerals (sand & gravel, copper, limestone, salt, etc.)

 Cements

 Chemicals (fertilizer, plastic granules & pellets, resin powder, synthetic fiber, etc.)

 Coals and cokes

 Agricultural products such as dry edibles (for animals or humans: alfalfa pellets, citrus
pellets, livestock feed, flour, peanuts, raw orrefined sugar, seeds, starches, etc.)

 Grains (wheat, maize, rice, barley, oats, rye, sorghum, soybeans, etc.)

 Iron (ferrous & non-ferrous ores, ferroalloys, pig iron, scrap metal, pelletized taconite), etc.

 Wood chips

 Refrigerated goods

 Livestock and animal products

 Unitised goods

 Wheeled and heavy units

Liquid bulk cargo ("wet" trades)

Non edible and dangerous liquids

 Hazardous chemicals
 Petroleum
 Gasoline
 Liquefied natural gas (LNG)
 Liquid Nitrogen

Liquid edibles and non dangerous liquids

 Cooking oil
 Rubber
 Vegetable oil
 Fruit juices
 Gallery

A milk tank car for bulk loading.

DME 49328, a covered

hopper owned and operated by
the Dakota, Minnesota and
Eastern Railroad

A rotary car dumper

Bulk loading of a feeder ship

Gas carrier

A gas carrier (or gas tanker) is a ship designed to transport LPG, LNG or liquefied chemical gases
in bulk.
 Types
Fully pressurized gas carrier

Moss type LNG tanker

The seaborne transport of liquefied gases began in 1934 when a major international company
put two combined oil/LPG tankers into operation. The ships, basically oil tankers, had been converted
by fitting small, riveted, pressure vessels for the carriage of LPG into cargo tank spaces. This enabled
transport over long distances of substantial volumes of an oil refinery by-product that had distinct
advantages as a domestic and commercial fuel. LPG is not only odourless and non-toxic, it also has a
high calorific value and a low sulphur content, making it very clean and efficient when being burnt.

Today, most fully pressurised oceangoing LPG carriers are fitted with two or three horizontal,
cylindrical or spherical cargo tanks and have typical capacities between 3,500 and 7,500 m3 (120,000
and 260,000 cu ft). However, in recent years a number of larger-capacity fully pressurised ships have
been built, most notably a series of 10,800 m3 (380,000 cu ft) ships, built in Japan between 2003 and
2013. Fully pressurised ships are still being built in numbers and represent a cost-effective, simple
way of moving LPG to and from smaller gas terminals.

Semi-pressurised ships

Semi-pressurised ship Gaschem Jümme

These ships carried gases in a semi-pressurized/semi-refrigerated state however due to further

development semi-pressurised/fully refrigerated gas carriers had become the ship owners' choice by
providing high flexibility in cargo handling. These carriers, incorporating tanks either cylindrical,
spherical or bi-lobe in shape, are able to load or discharge gas cargoes at both refrigerated and
pressurised storage facilities.

Ethylene and gas/chemical carriers

Ethylene carriers are the most sophisticated of the gas tankers and have the ability to carry
not only most other liquefied gas cargoes but also ethylene at its atmospheric boiling point of −104 °C
(−155 °F). These ships feature cylindrical, insulated, stainless steel cargo tanks able to accommodate
cargoes up to a maximum specific gravity of 1.8 at temperatures ranging from a minimum of −104 °C
to a maximum of +80 °C (176 °F) and at a maximum tank pressure of 4 bar.

Fully refrigerated ships

Fully refrigerated ship LPG/CMaersk Houston

 They are built to carry liquefied gases at low temperature and atmospheric pressure between
terminals equipped with fully refrigerated storage tanks. However, discharge through a booster pump
and cargo heater makes it possible to discharge to pressurized tanks too. The first purpose-built, fully
refrigerated LPG carrier was constructed by a Japanese shipyard, to a United States design, in 1962.
Prismatic tanks enabled the ship's cargo carrying capacity to be maximised, thus making fully
refrigerated ships highly suitable for carrying large volumes of cargo such as LPG, ammonia and
vinyl chloride over long distances. Today, fully refrigerated ships range in capacity from 20,000 to
100,000 m3 (710,000 to 3,530,000 cu ft). LPG carriers in the 50,000–80,000 m3 (1,800,000–
2,800,000 cu ft) size range are often referred to as VLGCs (Very Large Gas Carriers). Although LNG
carriers are often larger in terms of cubic capacity, this term is normally only applied to fully
refrigerated LPG carriers.

The main type of cargo containment system utilised on board modern fully refrigerated ships
are independent tanks with rigid foam insulation. The insulation used is quite commonly polyurethane
foam. Older ships can have independent tanks with loosely filled perlite insulation. In the past, there
have been a few fully refrigerated ships built with semi-membrane or integral tanks and internal
insulation tanks, but these systems have only maintained minimal interest. The large majority of such
ships currently in service have been constructed by shipbuilders in Japan and Korea.

Liquefied natural gas (LNG carrier)

LNG-carrier Galea

` The majority of LNG carriers are between 125,000 and 135,000 m3 (4,400,000 and
4,800,000 cu ft) in capacity. In the modern fleet of LNG carriers, there is an interesting exception
concerning ship size. This is the introduction of several smaller ships of between 18,000 and
19,000 m3 (640,000 and 670,000 cu ft) having been built in 1994 and later to service the needs of
importers of smaller volumes.
 Cargoes carried on gas carriers
 Butadiene
 Ethylene
 LPG
 LNG
 Propylene
 Chemical gases such as ammonia, vinyl chloride, ethylene oxide, propylene
oxide and chlorine.

3.1.1 Gas carrier codes

The Gas Codes, developed by International Maritime Organization apply to all gas carriers regardless
of size. There are three Gas Codes and these are described below.

Gas carriers built after June 1986 (the IGC Code)

The Code which applies to new gas carriers (built after 30 June 1986) is the International
Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk. In brief, this
Code is known as the IGC Code. The IGC Code, under amendments to International Convention for
the Safety of Life at Sea (SOLAS), is mandatory for all new ships. As proof that a ship complies with
the Code, an International Certificate of Fitness for the Carriage of Liquefied Gases in Bulk should be
on board. In 1993, the IGC Code was amended and the new rules came into effect on 1 July 1994.
Ships on which construction started on or after 1 October 1994 should apply the amended version of
the Code but ships built earlier may comply with previous editions of the IGC Code.

Gas carriers built between 1976 and 1986 (the GC Code) The regulations covering gas
carriers built after 1976 but before July 1986 are included in the Code for the Construction and
Equipment of Ships Carrying Liquefied Gases in Bulk. It is known as the Gas Carrier Code or GC
Code in short. Since 1975, International Maritime Organization(IMO) has approved four sets of
amendments to the GC Code. The latest was adopted in June 1993. All amendments are not
necessarily agreed by every government. Although this Code is not mandatory, many countries have
implemented it into national law. Accordingly, most charterers will expect such ships to meet with
Code standards and, as proof of this, to have on board a Certificate of Fitness for the Carriage of
Liquefied Gases in Bulk.
 Gas carriers built before 1977 (the Existing Ship Code) The regulations covering gas carriers
built before 1977 are contained in the Code for Existing Ships Carrying Liquefied Gases in Bulk. Its
content is similar to the GC Code, though less extensive. The Existing Ship Code was completed in
1976 after the GC Code had been written. It therefore summarises current shipbuilding practice at that
time.

It remains as an IMO recommendation for all gas carriers in this older fleet of ships. The
Code is not mandatory but is applied by some countries for ship registration and in other countries as
a necessary fulfilment prior to port entry. Accordingly, many ships of this age are required by
charterers to meet with Code standards and to have on board a Certificate of Fitness for the Carriage
of Liquefied Gases in Bulk.

Cargo containment systems

A cargo containment system is the total arrangement for containing cargo including, where fitted:

 A primary barrier (the cargo tank),

 Secondary barrier (if fitted),

 Associated thermal insulation,

 Any intervening spaces, and

 Adjacent structure, if necessary, for the support of these elements.

For cargoes carried at temperatures between −10 and −55 °C (14 and −67 °F) the ship's hull may act
as the secondary barrier and in such cases it may be a boundary of the hold space.

The basic cargo tank types utilised on board gas carriers are in accordance with the list below:—

Independent Type
 Independent Type 'A'

Type A Independent Tanks are prismatic and supported on insulation-bearing blocks typically
consisting of wooden chocks and located by anti-roll chocks located at the top of the tank inside the
void space and anti-flotation chocks located inside the void space usually just above the double
bottom tanks. The tanks are normally divided by a centre line liquid-tight bulkhead; by this feature,
together with the chamfered upper part of the tank, the free liquid surface effect is reduced and thus
the virtual rise of the Centre of gravity and the stability is increased. When these cargo tanks are
designed to carry LPG (at −50 °C), the tank is constructed of fine-grained low-carbon manganese
steel or even stainless steel as seen in the Maersk J class Ships. The hold space (void space) in this
design is normally filled with dry inert gas or Nitrogen but may be ventilated with air during a ballast
or gas free passage. The Conch design has been developed for carriage of LNG (at-163oC). The
material for these cargo tanks has to be either 9% nickel steel or aluminium. The maximum allowable
relief vapour setting (MARVS) is < 0. 7 bar.

 Independent Type 'B'

Type B Independent Tanks are generally spherical and welded to a vertical cylindrical skirt,
which is the lone connection to the ship's main hull. The hold space (void space) in this design is
normally filled with dry inert gas or Nitrogen but may be ventilated with air during a ballast or gas
free passage. A protective steel dome covers the primary barrier above deck level, and insulation
encloses the outside of the primary barrier surface. This containment system has been used for
carriage of LNG. The material of construction is either 9% nickel steel or aluminium.[9] The
maximum Allowable relief vapour setting (MARVS) is < 0. 7 bar.

 Independent Type 'C'

Type C Independent Tanks are deck pressure vessels or cylindrical pressure tanks mounted
horizontally on two or more cradle-shaped foundations. The tanks may be fitted on, below or partly
below deck and be both longitudinally and transversely located. Lobe-type tanks are commonly used
at the forward end of the ship, to improve the poor utilization of the hull volume. This containment
system is used for LPG, Ethylene and small scale LNG carriers. The material, if used for the
construction of tanks designed to carry ethylene, is 5% nickel steel. The maximum Allowable relief
vapour setting (MARVS) is > 0. 7 bar.

Tanker freighting system

Worldscale is a unified system of establishing payment of freight rate for a given oil tanker's
cargo. Worldscale was established in November 1952 by London Tanker Brokers’ Panel on the
request of British Petroleum and Shell as an average total cost of shipping oil from one port to
another by ship. A large table was created as result.

The same scale is used today, although it was merged with the American Tanker Rate
Schedule (ATRS) in 1969. By 2002, the table included the average cost of 320,000 voyages in
permutations of from one load and one discharge port to five loads and ten discharge ports.
Worldscale is produced by Worldscale Association (NYC) Inc. for the Americas and by Worldscale
Association (London) Ltd. for the rest of the world. The freight for a given ship and voyage is
normally expressed in a percentage of the published rate and is supposed to reflect the freight market
demand at the time of fixing.

Following are some samples.

From Yokohama to: US$/tonne Miles

Adelaide 10.60 10,574

Aden 12.39 13,038

Chiba 2.90 50

In negotiating a price to pay, the above table is referred to as WS100 or 100% of World scale. The
actual price negotiated between ship owner and charterer can range from 1% to 1000% and is
referred to respectively as WS1 to WS1000, depending on how much loss the first is willing to take
on that voyage and how much the latter is willing to pay.

The freight market

The freight market consists of ship owners, charterers and brokers. They use four types of contractual
arrangements: the voyage charter, the contract of a freightment, the time charter and the bareboat
charter. Ship owners contract to carry cargo for an agreed price per tonne while the charter market
hires out ships for a certain period. A charter is legally agreed upon in a charter-party in which the
terms of the deal are clearly set out.

Freight derivatives
Freight derivatives, which includes Forward Freight Agreement (FFA), container freight
swap agreements and options based on these, are financial instruments for trading in future levels
of freight rates, for dry bulk carriers, tankers and containerships. These instruments are settled against
various freight rate indices published by the Baltic Exchange (for Dry and most Wet contracts) &
Platt's (Asian Wet contracts).

FFAs are often traded over-the-counter, through broker members of the Forward Freight
Agreement Brokers Association (FFABA), such as Clarkson's Securities, Marex Spectron, SSY -
Simpson Spence Young, Braemar Sea scope LTD, Ifchor, Freight Investor Services, BGC
Partners, GFI Group, ACM Shipping Ltd, BRS, Tradition-Platou and ICAP. However, screen-based
trading is becoming more popular, through various screens. Trades can be given up for clearing by the
broker to one of the clearing houses that support such trades. There are five clearing houses for
freight: NOS Clearing/NASDAQ OMX, LCH. Clear net, CME Clear port, ICE Futures
Europe and SGX. Freight derivatives are primarily used by ship owners and operators, oil companies,
trading companies, and grain houses as tools for managing freight rate risk. Recently, with
commodities standing at the forefront of international economics, the large financial trading houses,
including banks and hedge funds, have entered the market.

Baltic Dry Index measures the cost for shipping goods such as iron ore and grains. The
trading volume of dry freight derivatives, a market estimated to be worth about $200 billion in 2007,
grew as those needing ships attempted to contain their risks and investment banks and hedge funds
looked to make profits from speculating on price movements. At the close of the 2007 financial year,
the number of traded lots on dry FFAs doubled the derived physical product.

The sale and purchase market

In the sale and purchase market, second-hand ships are traded between ship owners. The
administrative procedures used are roughly the same as in the real-estate business, using a
standard contract. Trading ships is an important source of revenue for ship owners, as the prices are
very volatile. The second hand value of ships depends on freightrates, age, inflation and expectations.

The new building market

The new building market deals with transactions between ship owners and shipbuilders.
Contract negotiation can be very complex and extend beyond price. They also cover ship
specifications, delivery date, stage payments and finance. The prices on the new building market are
very volatile and sometimes follow the prices on the sale and purchase market.

The demolition market

On the demolition market ships are sold for scrap. The transactions happen between
shipowners and demolition merchants, often with speculators acting as intermediaries.

Freight rate
A freight rate (historically and in ship chartering simply freight is a price at which a
certain cargo is delivered from one point to another. The price depends on the form of the cargo,
the mode of transport (truck, ship, train, aircraft), the weight of the cargo, and the distance to the
delivery destination. Many shipping services, especially air carriers, use dimensional weight for
calculating the price, which takes into account both weight and volume of the cargo.
 Marine pollution conventions:
The Inter-Governmental Conference on the Convention on the Dumping of Wastes at Sea,
which met in London in November 1972 at the invitation of the United Kingdom, adopted this
instrument, generally known as the London Convention. The London Convention, one of the first
international conventions for the protection of the marine environment from human activities, came
into force on 30 August 1975. Since 1977, it has been administered by IMO.
The London Convention contributes to the international control and prevention of marine
pollution by prohibiting the dumping of certain hazardous materials. In addition, a special permit is
required prior to dumping of a number of other identified materials and a general permit for other
wastes or matter.
"Dumping" has been defined as the deliberate disposal at sea of wastes or other matter from
vessels, aircraft, platforms or other man-made structures, as well as the deliberate disposal of these
vessels or platforms themselves. Annexes list wastes which cannot be dumped and others for which a
special dumping permit is required.
Amendments adopted in 1993 (which entered into force in 1994) banned the dumping into
sea of low-level radioactive wastes. In addition, the amendments phased out the dumping of industrial
wastes by 31 December 1995 and banned the incineration at sea of industrial wastes.
In 1996, Parties adopted a Protocol to the Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter, 1972 (known as theLondon Protocol) which entered into
force in 2006.
The Protocol, which is meant to eventually replace the 1972 Convention, represents a major
change of approach to the question of how to regulate the use of the sea as a depository for waste
materials. Rather than stating which materials may not be dumped, it prohibits all dumping, except
for possibly acceptable wastes on the so-called "reverse list", contained in an annex to the Protocol.
The permitted substances are:

1. Dredged material
2. Sewage sludge
3. Fish waste, or material resulting from industrial fish processing operations
4. Vessels and platforms or other man-made structures at sea
5. Inert, inorganic geological material
6. Organic material of natural origin
7. Bulky items primarily comprising iron, steel, concrete and similar unharmful materials for which
the concern is physical impact and limited to those circumstances, where such wastes are generated at
locations, such as small islands with isolated communities, having no practicable access to disposal
options other than dumping
8. CO2 streams from CO2 capture processes.
 FUNDAMENTALS OF SHIPPING – UNIT - IV
LIQUID BULK CARGO :

INTRODUCTION
All of us will have come across liquid bulk cargoes 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.

The port of Rotterdam is an important hub and trade location for liquid bulk cargo products,
from crude oil, gasoline, diesel and biofuels to liquid chemicals and edible oils and fats. Businesses
and traders choose the port of Rotterdam because of its central location in Europe, the excellent
maritime access, the economies of scale, the wide range of independent liquid bulk terminals
and the reliable services.

Oil Carriers
The tanker is a very specialized vessel. It is designed to deal with bulk liquid cargoes permitting

quick loading and discharge, thereby ensuring a fast turn-round (loading and discharge of cargo). Vessels

return in ballast as it is seldom possible

to obtain return cargoes.

In addition to oil tankers, liquid cargo is carried by specialized vessels such as chemical or product

carriers, LPG (liquefied petroleum gas) and LNG (liquefied natural gas) vessels.

A typical LNG vessel has the crew accommodation and machinery aft. Cargo is contained in prismatic

internally insulated aluminium tanks, three of which are fitted into each of the three holds. To keep the gas in

liquid form, it must be keptdown to minus 161° centigrade (-258°F).

VLCCs (Very Large Crude Carriers)

VLCC have a size ranging between 180,000 to 320,000 DWT. They are capable of passing through the Suez

Canal in Egypt, and as a result are used extensively around the North Sea, Mediterranean and West Africa.

VLCC are very large shipping vessels with dimensions of up to 470 m (1,540 ft) in length, beam of up to 60 m

(200 ft) and draught of up to 20 m (66 ft). But the standard dimensions of these ships range between 300 to

330 meters in length, 58 meters breath and 31 meters in depth. They are known for their flexibility in using

terminals and can operate in ports with some depth limitations. The cost of a VLCC ranges between

$100 million to $120 million depending on its age.

ULCCs (Ultra Large Crude Carriers):

2 The term ULCC describes tankers which range from 300/500,000 DWAT 1 . They are mainly
used forlong haul operations between The Gulf and the Far East, Europe and North America,
discharging theircargo at terminals especially constructed to handle such large vessels.

3 World‟s leading wet bulk ports :

 Volume 2014 (Million TE Volume 2012

Rank Port TEU) U) (Million TEU)

33.
1
Shanghai, China 35.29 62 32.53 31.74 www.portshanghai.com.cn
32.

2 SIngapore 33.87 6 31.65 29.94 www.singaporepsa.com

23.

3 Shenzhen, China 24.03 28 22.94 22.57 www.szport.net

22.

4 Hong Kong, S.A.R., 22.23 35 23.12 24.38 www.mardep.gov.hk

China
17.

5 Ningbo-Zhoushan, 19.45 33 16.83 14.72 www.zhoushan.cn/english

China
17.

6 Busan, South Korea 18.65 69 17.04 16.18 www.busanpa.com

15.

7 Qingdao, China 16.62 52 14.50 13.02 www.qdport.com

15.

8 Guangzhou Harbor, 16.16 31 14.74 14.42 www.gzport.com

China
Jebel Ali, Dubai, 13.
United Arab
9 Emirates 15.25 64 13.30 13.00 www.dpworld.ae

13.

10 Tianjin, China 14.05 01 12.30 11.59 www.ptacn.com

11.

11 Rotterdam, 12.30 62 11.87 11.88 www.portofrotterdam.com

Netherlands
10.

12 Port Klang, Malaysia 10.95 35 10.00 9.60 www.pka.gov.my

13 Kaohsiung, Taiwan, 10.59 9.94 9.78 9.64 www.khb.gov.tw

China
10.

14 Dalian, China 10.13 86 8.92 6.40 www.dlport.cn

15 Hamburg, Germany 9.73 9.30 8.89 9.01 www.hafen-hamburg.de

16 Antwerp, Belguim 8.98 8.59 8.64 8.66 www.portofantwerp.com

17 Xiamen, China 8.57 8.01 7.20 6.47 www.portxiamen.gov.cn

18 Tanjung Pelepas, 8.50 7.63 7.70 7.50 www.ptp.com.my

Malaysia
19 Los Angeles, U.S.A. 8.33 7.87 8.08 7.94 www.portoflosangeles.org

20* Keihin Ports, Japan 7.85 7.81 7.85 7.64 www.city.yokohama.lg.jp/en

21 Long Beach, U.S.A. 6.82 6.73 6.05 6.06 www.polb.com

22 Laem Chabang, 6.58 6.04 5.93 5.73 www.laemchabangport.com

Thailand
Tanjung Priok, Jakarta, www.priokport.co.id
23 Indonesia 6.40 6.59 6.46 5.65 www.indonesiaport.co.id

24 Ho Chi Minh, 6.39 5.96 5.19 4.53 www.vpa.org.vn

Vietnam
Bremen/Bremerhaven,
25 Germany 5.78 5.84 6.13 5.92 www.bremen-ports.de

26 New York-New 5.77 5.47 5.53 5.50 www.panynj.gov

Jersey, U.S.A.

27 Yingkou, China 5.77 5.30 4.85 4.03 www.ykport.com.cn

28** Hanshin Ports, Japan 5.32 5.32 5.00 4.80 www.hanshinport.co.jp/en

29 Lianyungun, China 5.01 5.49 5.02 4.85 www.lyg.gov.cn

30 Columbo, Sri Lanka 4.91 4.31 4.26 4.26 www.slpa.lk

31 Algerciras Bay, Spain 4.56 4.50 4.11 3.60 www.apba.es

32 Jawaharlal Nehru, 4.45 4.12 4.26 4.32 www.jnport.gov.in

India

33 Suzhou, China 4.45 5.31 -- -- suzhou.jiangsu.net/transportation

34 Valencia, Spain 4.44 4.33 4.47 4.33 www.valenciaport.com

35 Jeddah, Suadi Arabia 4.20 4.56 4.74 4.01 www.ports.gov.sa

36
Port Said East, Egypt 3.50 3.12 2.86 3.2 www.ppc.com.pa/balboa.php
37
Balboa, Panama 3.47 3.19 3.30 3.23 www.vpa.org.vn
38
Haiphong, Vietnam 3.45 3.02 .96 1.01 www.portseattle.org
39 Seattle-Tacoma NW
Seaport 3.43 3.46 3.51 3.59 www.atlasliman.com
Alliance, U.S.A.
40
Ambarli, Turkey 3.38 3.38 3.10 2.69 www.gaports.com
41
Georgia Ports, U.S.A. 3.35 3.03 2.97 2.94 www.amp.gob.pa
42
Colon, Panama 3.29 3.36 3.52 3.37 www.perakport.co.id
43 Tanjung Perak, www.tmpa.ima
Surabaya, 3.13 3.02 2.89 2.64
Indonesia
44 Tanger Med, Morocco 3.08 2.56 1.82 2.09 www.salalah.com
45 Salalah, Oman 3.03 3.34 3.63 3.20
www.scctportsaid.com
Truck to Ship and Truck to Storage

The Material Feeder is the key feature that enables the Samson Mobile Shiploader and Stacker
systems to handle a whole range of loose dry bulk cargoes from light and free flowing, such as grains,
through to wet and sticky materials such as synthetic gypsum.

The unique ability of the Material Feeder to receive almost any dry bulk cargo without
underground pits and hoppers eliminates the need for any fixed port infrastructure and permits operation
on any suitable existing berth.

6
Types of tankers and gas carriers

Independent Mobile Material Feeder feeds an existing ship loader

1.2.1Maximising Berth Utilisation

The Mobile Shiploader immediately converts an existing multi-purpose berth for handling loose dry
bulk cargoes delivered to the port direct from tipping trucks. When not required for bulk export the
Shiploader is simply
travelled clear to a suitable
parking position.
The Mobile Shiploader may
be used for loading bulk
carriers to post Panamax
size and when equipped
with twin Samson®
Material Feeders of peak

loading rates to over 2,000

tons per hour are possible,
with Through-the-Ship
rates in excess of 1,500 tons
per hour. Operating at this
rate, a 75,000 DWT
Panamax size ship would
be loaded in less than 60
hours; taking into account
proper hold trimming for
safe cargo stowage.
 Absolute Mobility
Port of Immingham located on the East Coast of England is a large import and export terminal
handling both bulk and containerised shipments. Flexibility is paramount, allowing the port to maximise
the efficiency of every inch of berth space within the enclosed dock section.

The Sterling series Mobile Shiploader, illustrated here, employs vertical elevation to raise cereals
from the four Samson® Material Feeders to the radial and luffing outloading boom conveyor.

This unit has a compat and efficient design loading rate of up to 1,200 tons per hour
handling wheat. c

Even with this 400 ton leviathan, full mobility is included allowing the Shiploader to be
travelled under its own power to clear the berth for other port operations.

A total of 24 tyers carry the load, mounted in sets of six, to drive bogies mounted to slew
rings allowing the wheel units to be aligned for any direction of travel and
for steering using electronically controlled Ackermann geometry, without mechanical
linkage. Similar systems are available for all machine sizes and specifications.

Drive bogie

Granular Materials
For free flowing materials that may be discharged through the “Grain Door”, the flow rate from the truck
may be regulated. Therefore material may be tipped directly to the feed boot of the Mobile Shiploader or
narrow belt intermediate feeder conveyor, as shown below.
 Stacking and
Ship Loading
The Lancaster
series Mobile Shiploader
and Stacker provides the
ideal solution for storage
and export of coal from
this Russian baltic port.
Supplied with a larger
feed hopper, the unit will
accept coal or similar
light bulk cargoes direct
from wheeled loaders.

Loading coal to Multi-level undergear for

small bulk carriers maximum stacking height

 Replacing the large shovel hopper with a standard feed boot allows the Lancaster series or

Shiploader unit to operate with one or two Mobile Samson® Material Feeders to receive

non-free- flowing cargoes direct from tipping trucks.The Material Feeder eliminates double handling
and is a receiving unit, feeder and buffer hopper all in one, delivering a controlled feed rate, and,
thanks to the buffer capacity, an increased average overall loading rate.

Import Mobility
The import of loose dry bulk cargo direct by grab crane using either geared vessels or independent
mobile harbour cranes offers complete flexibility. The equipment is moved clear after use for the
discharge or loading of other freight.

The Eco Hopper and Shiploader may be

supplied with any combination of towed or self
powered travel systems,including stabiliser jacks
for the Truck transfer from Eco Hopper to inland
storage larger machines.

Drive may be from own on-board gen-set

providing independent electrical power for the
complete equipment.
 Truck Intake to Local Storage
The Material Feeder is the ideal reception unit for the intake of almost any dry bulk cargo,
from road tipping trucks or mining dump trucks for discharge to off-port storage thus eliminating the
need for expensive deep underground hoppers and associated civil works.

Coal and pet-coke intake to a cement plant located adjacent to the port using a fleet of road
trucks operating Material Feeder discharges direct to a surface mounted belt on a merry-go-round basis
are able to discharge small bulk carriers at an average rate of 600 tons per hour.

Combining mobile equipment on the berth with surface mounted solutions at the plant offers the
most economical and flexible overall handling solution.
 Truck Intake to Silo Storage
For silo storage, the combination of Material Feeder with vertical elevator offers a compact
plant footprint with the minimum of transfer points and much simplified installation and
maintenance demands if compared to traditional underground hoppers and feeders.

Integrating Material Feeder with an Aumund Central

Chain Bucket Elevator offers high handling rates and fast truck discharge. Ideal for the intake of
imported cement clinker, gypsum and other additives to a cement grinding plant.

The Material Feeder provides a buffer capacity and regulated discharge to the elevator boot.

3.2.1Rail Intake to Local Storage

The Material Feeder - Under Rail is the ideal solution for the intake of dry bulk cargo to
terminals and associated process plants, or as part of a railborne to waterborne transhipment operation
including often local internal or external storage facilities.

The Under Rail shallow pit concept is ideal in a port environment to minimise civil works,
construction cost and groundwater ingress.
Low free fall reduces dust generaton and material degradation. Pit depth of less than 4.0 metres
Material Feeders for Wagon Tipplers

The Material Feeder - Under Rail may be

incorporated beneath conventional wagon
tipplers or supplied as a “Box-Feeder” to receive
material from pivot frame or hydraulic box
tippler designs, particularly handling cohesive
materials liable to bridge and block.

Skid mount box feeder receives from wagon tippler

Surface installation
with
mob transfer conveyor

Transhipment from rail wagon to tipping truck

Multiple Road and Rail Intake :

Tipping trucks discharge Road trucks discharge

alongside the rail wagons using a tipping platform

Material Feeder - Under Rail receive raw sugar from road and rail with space for six rail wagons
to be discharged. Vertical elevators raise the sugar to flat storage ready for bulk export from the
port of Santos in Brazil.
 The wide apron belt design not only minimises the excavation depth to reduce civil
works costs, but also eliminates the bridging and blockage associated with tapered hoppers
handling this extremely sticky material, when coupled with vertical elevators it gives a very
compact plant footprint.

Each pair of feeders discharges to common belt conveyors each loading to vertical belt-bucket elevators.

A tanker (or tank ship or tankship) is a merchant vessel designed

to transport liquids or gases in bulk. Major types of tankship include the oil tanker, the
chemical tanker, and gas carrier. In the United States Navy and Military Sealift Command,
any type of tanker used to refuel other ships is called an oiler.

Size categories
Oil tanker size categories

AFRA Scale[41] Flexible market scale[41]

New Used
Class Size in DWT Class Size in DWT
price [42]
price[43]

General Purpose tanker 10,000–24,999 Product tanker 10,000–60,000

$43M $42.5M

Medium Range tanker 25,000–44,999 Panamax 60,000–80,000

LR1 (Large Range 1) 45,000–79,999 Aframax 80,000–120,000

$60.7M $58M

LR2 (Large Range 2) 80,000–159,999 Suezmax 120,000–200,000

VLCC (Very Large Crude Carrier) 160,000–319,999 VLCC 200,000–320,000

$120M $116M

ULCC (Ultra Large Crude Carrier) 320,000–549,999 ULCC 320,000–550,000

 In 1954 Shell Oil developed the average freight rate assessment (AFRA) system which classifies
tankers of different sizes. To make it an independent instrument, Shell consulted the London Tanker
Brokers’ Panel (LTBP). At first, they divided the groups as General Purpose for tankers under 25,000
tonsdeadweight (DWT); Medium Range for ships between 25,000 and 45,000 DWTand Large Range for
the then-enormous ships that were larger than 45,000 DWT. The ships became larger during the 1970s,
which prompted rescaling.

The system was developed for tax reasons as the tax authorities wanted evidence that the internal
billing records were correct. Before the New York Mercantile Exchange started trading crude oil futures in
1983, it was difficult to determine the exact price of oil, which could change with every contract. Shell
and BP, the first companies to use the system, abandoned the AFRA system in 1983, later followed by the
US oil companies. However, the system is still used today. Besides that, there is the flexible market scale,
which takes typical routes and lots of 500,000 barrels (79,000 m3).

Merchant oil tankers carry a wide range of hydrocarbon liquids ranging from crude oil to refined
petroleum products. Their size is measured in deadweight metric tons (DWT). Crude carriers are among
the largest, ranging from 55,000 DWT Panamax-sized vessels to ultra-large crude carriers (ULCCs) of
over 440,000 DWT.

Smaller tankers, ranging from well under 10,000 DWT to 80,000 DWT Panamax vessels,
generally carry refined petroleum products, and are known as product tankers.The smallest tankers, with
capacities under 10,000 DWT generally work near-coastal and inland waterways. Although they were in
the past, ships of the smaller Aframax and Suezmax classes are no longer regarded as supertankers.

Supertankers (VLCC and ULCC)

The Knock Nevis (1979–2010), a ULCC supertanker and the longest ship ever built.

"Supertankers" are the largest tankers, including very large crude carriers (VLCC) and ULCCs
with capacities over 250,000 DWT. These ships can transport 2,000,000 barrels (320,000 m3) of
oil/318,000 metric tons.By way of comparison, the United Kingdom consumed about 1.6 million barrels
(250,000 m3) of oil per day in 2009. ULCCs, commissioned in the 1970s, were the largest vessels ever
built, but the longest ones have already been scrapped. By 2013 only a few ULCCs remain in service, none
of which are more than 400 meters long.

Because of their great size, supertankers often cannot enter port fully loaded. These ships can take
on their cargo at off-shore platforms and single-point moorings. On the other end of the journey, they often
pump their cargo off to smaller tankers at designated lightering points off-coast. A supertanker's routes are
generally long, requiring it to stay at sea for extended periods, up to and beyond seventy days at a time.

Chartering

Oil tanker at Guanabara Bay, in Rio de Janeiro, Brazil.

The act of hiring a ship to carry cargo is called chartering. Tankers are hired by four types of
charter agreements: the voyage charter, the time charter, the bareboat charter, and contract of
affreightment. In a voyage charter the charterer rents the vessel from the loading port to the discharge
port.In a time charter the vessel is hired for a set period of time, to perform voyages as the charterer
directs. In a bareboat charter the charterer acts as the ship's operator and manager, taking on
responsibilities such as providing the crew and maintaining the vessel. Finally, in a contract of
affreightment or COA, the charterer specifies a total volume of cargo to be carried in a specific time period
and in specific sizes, for example a COA could be specified as 1 million barrels (160,000 m3) of JP-5 in a
year's time in 25,000-barrel (4,000 m3) shipments. A completed chartering contract is known as a charter
party.

One of the key aspects of any charter party is the freight rate, or the price specified for carriage of
cargo. The freight rate of a tanker charter party is specified in one of four ways: by a lump sum rate, by
rate per ton, by a time charter equivalent rate, or by Worldscalerate. In a lump sum rate arrangement, a
fixed price is negotiated for the delivery of a specified cargo, and the ship's owner/operator is responsible
to pay for all port costs and other voyage expenses.Rate per ton arrangements are used mostly in chemical
tanker chartering, and differ from lump sum rates in that port costs and voyage expenses are generally paid
by the charterer. Time charter arrangements specify a daily rate, and port costs and voyage expenses are
also generally paid by the charterer.

The Worldwide Tanker Normal Freight Scale, often referred to as Worldscale, is established
and governed jointly by the Worldscale Associations of London and New York.Worldscale establishes
a baseline price for carrying a metric ton of product between any two ports in the world.In Worldscale
negotiations, operators and charterers will determine a price based on a percentage of the Worldscale
rate.The baseline rate is expressed as WS 100. If a given charter party settled on 85% of the
Worldscale rate, it would be expressed as WS 85.Similarly, a charter party set at 125% of the
Worldscale rate would be expressed as WS 125.

A freight rate (historically and in ship chartering simply freight[1]) is a price at which a
certain cargo is delivered from one point to another. The price depends on the form of the cargo,
the mode of transport (truck, ship, train, aircraft), the weight of the cargo, and the distance to the
delivery destination. Many shipping services, especially air carriers, use dimensional weight for
calculating the price, which takes into account both weight and volume of the cargo.

For example, bulk coal long-distance rates in America are approximately 1 cent/ton-mile.
[2]
So a 100 car train, each carrying 100 tons, over a distance of 1000 miles, would cost $100,000. On
the other hand, Intermodal container shipping rates depend heavily on the route taken over the weight
of the cargo, just as long as the container weight does not exceed the maximum lading capacity.
Prices can vary between $400-$10,000 per Twenty foot equivalent unit (TEU) depending on the
supply and demand of a given route.

In ship chartering, freight is the price which a charterer pays a shipowner for the use of a ship in
a voyage charter.

Marine pollution occurs when harmful, or potentially harmful, effects result from the
entry into the ocean of chemicals, particles, industrial, agricultural and residential waste,
noise, or the spread of invasive organisms. Eighty percent of marine pollution comes from
land. Air pollution is also a contributing factor by carrying off pesticides or dirt into the
ocean. Land and air pollution have proven to be harmful to marine life and its habitats.

The pollution often comes from non point sources such as agricultural runoff, wind-
blown debris and dust. Nutrient pollution, a form of water pollution, refers to contamination
by excessive inputs of nutrients. It is a primary cause of eutrophication of surface waters, in
which excess nutrients, usually nitrogen or phosphorus, stimulate algae growth.
 Many potentially toxic chemicals adhere to tiny particles which are then taken up by plankton and
benthos animals, most of which are either deposit or filter feeders. In this way, the toxins are concentrated
upward within ocean food chains. Many particles combine chemically in a manner highly depletive of
oxygen, causing estuaries to become anoxic.

When pesticides are incorporated into the marine ecosystem, they quickly become absorbed into
marine food webs. Once in the food webs, these pesticides can cause mutations, as well as diseases, which
can be harmful to humans as well as the entire food web.

Toxic metals can also be introduced into marine food webs. These can cause a change to tissue
matter, biochemistry, behaviour, reproduction, and suppress growth in marine life. Also, many animal feeds
have a high fish meal or fish hydrolysate content. In this way, marine toxins can be transferred to land
animals, and appear later in meat and dairy products.

Types of pollution
4.2.1Acidification

Island with fringing reef in theMaldives. Coral reefs are dying around the world.

The oceans are normally a natural carbon sink, absorbing carbon dioxide from the
atmosphere. Because the levels of atmospheric carbon dioxide are increasing, the oceans are
becoming more acidic. The potential consequences of ocean acidification are not fully understood, but
there are concerns that structures made of calcium carbonate may become vulnerable to dissolution,
affecting corals and the ability of shellfish to form shells.

Oceans and coastal ecosystems play an important role in the global carbon cycle and have
removed about 25% of the carbon dioxide emitted by human activities between 2000 and 2007 and
about half the anthropogenic CO2 released since the start of the industrial revolution. Rising ocean
temperatures and ocean acidification means that the capacity of the ocean carbon sink will gradually
get weaker, giving rise to global concerns expressed in the Monaco and Manado Declarations.

A report from NOAA scientists published in the journal Science in May 2008 found that large
amounts of relatively acidified water are upwelling to within four miles of the Pacific continental
shelf area of North America. This area is a critical zone where most local marine life lives or is born.
While the paper dealt only with areas from Vancouver to northern California, other continental shelf areas
may be experiencing similar effects.

A related issue is the methane clathrate reservoirs found under sediments on the ocean floors.
These trap large amounts of the greenhouse gas methane, which ocean warming has the potential to
release. In 2004 the global inventory of ocean methane clathrates was estimated to occupy between one
and five million cubic kilometres. If all these clathrates were to be spread uniformly across the ocean floor,
this would translate to a thickness between three and fourteen metres. This estimate corresponds to 500–
2500 gigatonnes carbon (Gt C), and can be compared with the 5000 Gt C estimated for all other fossil fuel
reserves.

Eutrophication

Polluted lagoon.

Effect of eutrophication on marinebenthic life

Eutrophication is an increase in chemical nutrients, typically compounds

containing nitrogen or phosphorus, in an ecosystem. It can result in an increase in the ecosystem's primary
productivity (excessive plant growth and decay), and further effects including lack of oxygen and severe
reductions in water quality, fish, and other animal populations.
 The biggest culprit are rivers that empty into the ocean, and with it the many chemicals used
as fertilizers in agriculture as well as waste from livestock and humans. An excess of oxygen depleting
chemicals in the water can lead to hypoxia and the creation of a dead zone.

Estuaries tend to be naturally eutrophic because land-derived nutrients are concentrated

where runoff enters the marine environment in a confined channel. The World Resources Institute has
identified 375 hypoxic coastal zones around the world, concentrated in coastal areas in Western Europe,
the Eastern and Southern coasts of the US, and East Asia, particularly in Japan. In the ocean, there are
frequentred tide algae blooms that kill fish and marine mammals and cause respiratory problems in
humans and some domestic animals when the blooms reach close to shore.

In addition to land runoff, atmospheric anthropogenic fixed nitrogen can enter the open ocean. A
study in 2008 found that this could account for around one third of the ocean’s external (non-recycled)
nitrogen supply and up to three per cent of the annual new marine biological production. It has been
suggested that accumulating reactive nitrogen in the environment may have consequences as serious as
putting carbon dioxide in the atmosphere.

One proposed solution to eutrophication in estuaries is to restore shellfish populations, such as

oysters. Oyster reefs remove nitrogen from the water column and filter out suspended solids, subsequently
reducing the likelihood or extent of harmful algal blooms or anoxic conditions. Filter feeding activity is
considered beneficial to water quality by controlling phytoplankton density and sequestering nutrients,
which can be removed from the system through shellfish harvest, buried in the sediments, or lost
through denitrification. Foundational work toward the idea of improving marine water quality through
shellfish cultivation to was conducted by Odd Lindahl et al., using mussels in Sweden.

Plastic debris

A mute swan builds a nest using plastic garbage.

Marine debris is mainly discarded human rubbish which floats on, or is suspended in the ocean.
Eighty percent of marine debris is plastic– a component that has been rapidly accumulating since the end
of World War II. The mass of plastic in the oceans may be as high as100,000,000 tonnes (98,000,000 long
tons; 110,000,000 short tons).
 Discarded plastic bags, six pack rings and other forms of plastic waste which finish up in the
ocean present dangers to wildlife and fisheries. Aquatic life can be threatened through entanglement,
suffocation, and ingestion. Fishing nets, usually made of plastic, can be left or lost in the ocean by

Remains of an albatross containing ingested flotsam

fishermen. Known as ghost nets, these entangle fish, dolphins, sea turtles, sharks,
dugongs,crocodiles, seabirds, crabs, and other creatures, restricting movement, causing starvation,
laceration and infection, and, in those that need to return to the surface to breathe, suffocation.

Many animals that live on or in the sea consume flotsam by mistake, as it often looks similar to
their natural prey. Plastic debris, when bulky or tangled, is difficult to pass, and may become permanently
lodged in the digestive tracts of these animals. Especially when evolutionary adaptions make it impossible
for the likes of turtles to reject plastic bags, which resemble jellyfish when immersed in water, as they
have a system in their throat to stop slippery foods from otherwise escaping. Thereby blocking the passage
of food and causing death through starvation or infection.

Plastics accumulate because they don't biodegrade in the way many other substances do. They
will photodegrade on exposure to the sun, but they do so properly only under dry conditions,
and water inhibits this process. In marine environments, photodegraded plastic disintegrates into ever
smaller pieces while remaining polymers, even down to the molecular level. When floating plastic
particles photodegrade down to zooplankton sizes, jellyfish attempt to consume them, and in this way the
plastic enters the ocean food chain. Many of these long-lasting pieces end up in the stomachs of marine
birds and animals,[61] including sea turtles, and black-footed albatross.

Marine debris on Kamilo Beach, Hawaii, washed up from the Great Pacific Garbage Patch
 Plastic debris tends to accumulate at the centre of ocean gyres. In particular, the Great Pacific
Garbage Patch has a very high level of plastic particulate suspended in the upper water column. In samples
taken in 1999, the mass of plastic exceeded that of zooplankton (the dominant animal life in the area) by a
factor of six. Midway Atoll, in common with all the Hawaiian Islands, receives substantial amounts of

debris from the garbage patch. Ninety percent plastic, this debris accumulates on the beaches of Midway
where it becomes a hazard to the bird population of the island. Midway Atoll is home to two-thirds (1.5
million) of the global population of Laysan albatross.Nearly all of these albatross have plastic in
their digestive system and one-third of their chicks die.

Toxic additives used in the manufacture of plastic materials can leach out into their surroundings
when exposed to water. Waterbornehydrophobic pollutants collect and magnify on the surface of plastic
debris, thus making plastic far more deadly in the ocean than it would be on land. Hydrophobic
contaminants are also known to bioaccumulate in fatty tissues, biomagnifying up the food chain and
putting pressure on apex predators. Some plastic additives are known to disrupt the endocrine system when
consumed, others can suppress the immune system or decrease reproductive rates. Floating debris can also
absorb persistent organic pollutants from seawater, including PCBs, DDT and PAHs. Aside from toxic
effects, when ingested some of these are mistaken by the animal brain for estradiol, causing hormone
disruption in the affected wildlife.

Toxins
Apart from plastics, there are particular problems with other toxins that do not disintegrate rapidly in the
marine environment. Examples of persistent toxins are PCBs, DDT, TBT,pesticides, furans, dioxins,
phenols and radioactive waste. Heavy metals are metallic chemical elements that have a relatively high
density and are toxic or poisonous at low concentrations. Examples are mercury, lead, nickel, arsenic and
cadmium. Such toxins can accumulate in the tissues of many species of aquatic life in a process called
bioaccumulation. They are also known to accumulate in benthic environments, such as estuaries and bay
muds: a geological record of human activities of the last century.

Specific examples

 Chinese and Russian industrial pollution such as phenols and heavy metals in the Amur
River have devastated fish stocks and damaged its estuary soil.

 Wabamun Lake in Alberta, Canada, once the best whitefish lake in the area, now has unacceptable
levels of heavy metals in its sediment and fish.

 Acute and chronic pollution events have been shown to impact southern California kelp forests,
though the intensity of the impact seems to depend on both the nature of the contaminants and
duration of exposure.

 Due to their high position in the food chain and the subsequent accumulation of heavy
metals from their diet, mercury levels can be high in larger species such as bluefin andalbacore. As a
result, in March 2004 the United States FDA issued guidelines recommending that
 pregnant women, nursing mothers and children limit their intake of tuna and other types
of predatory fish.

 Some shellfish and crabs can survive polluted environments, accumulating heavy
metals or toxins in their tissues. For example, mitten crabs have a remarkable ability
to survive in highly modified aquatic habitats, including polluted waters. The farming
and harvesting of such species needs careful management if they are to be used as a
food.

 Surface runoff of pesticides can alter the gender of fish species genetically,
transforming male into female fish.

 Heavy metals enter the environment through oil spills – such as the Prestige oil
spill on the Galician coast – or from other natural or anthropogenic sources.

 In 2005, the 'Ndrangheta, an Italian mafia syndicate, was accused of sinking at least
30 ships loaded with toxic waste, much of it radioactive. This has led to widespread
investigations into radioactive-waste disposal rackets.

 Since the end of World War II, various nations, including the Soviet Union, the
United Kingdom, the United States, and Germany, have disposed of chemical weapons in
theBaltic Sea, raising concerns of environmental contamination.

Underwater noise

Marine life can be susceptible to noise or the sound pollution from sources such as
passing ships, oil exploration seismic surveys, and naval low-frequency active sonar.
Sound travels more rapidly and over larger distances in the sea than in the atmosphere.
Marine animals, such as cetaceans, often have weak eyesight, and live in a world largely
defined by acoustic information. This applies also to many deeper sea fish, who live in a
world of darkness. Between 1950 and 1975, ambient noise at one location in the Pacific
Ocean increased by about ten decibels (that is a tenfold increase in intensity).

Noise also makes species communicate louder, which is called the Lombard vocal
response Whale songs are longer when submarine-detectors are on If creatures don't "speak"
loud enough, their voice can be masked by anthropogenic sounds. These unheard voices
might be warnings, finding of prey, or preparations of net-bubbling. When one species begins
speaking louder, it will mask other species voices, causing the whole ecosystem to eventually
speak louder
 According to the oceanographer Sylvia Earle, "Undersea noise pollution is like the
death of a thousand cuts. Each sound in itself may not be a matter of critical concern, but
taken all together, the noise from shipping, seismic surveys, and military activity is
creating a totally different environment than existed even 50 years ago. That high level of
noise is bound to have a hard, sweeping impact on life in the sea.

Shipping market
The shipping market is the whole that determines the sale and purchase of ships. How
the ships are chartered and the way the prices of this is established. The actors moving
this market are
shipowners, shipbuilders, charterers and shipping companies. This market is formed by five
markets that interact to form and are each part of the overlapping market:

1. The newbuilding market

2. The freight market

3. The sale and purchase market

4. The demolition market

5. FFA-Forward Freight Agreements Market

 The newbuilding market
This market is set by the shipbuilders and the brokers who act as mediators between
first mentioned and shipowners (to be). The largest difference between other markets is that
the product traded does if fact not yet exist. Payment is usually done in parts as the new ship
is being completed. Newbuild ships are not necessarily more expensive than similar second-
hand ships. This is because of the time it takes for the ship to be available and the current
fluctuations of offer and demand.

The freight market

The freight market is the trading of freight and the means to transport this freight. The
better known origin of this market lies in the Baltic Exchange. This has now become a
website. And most of this trade now goes by the internet. As shipping companies sell the
use of ships, the way these ship are deployed must be agreed upon, including whether the
charter has full control or a certain degree of it. This is done by the charter. In this contract
the obligations of both parties are described. This can be done on basis of time, voyage,
freight, etc. Even the party responsible for maintenance and crewing is hereby settled.

The sale and purchase market

The actors are again the same as in previously mentioned markets. Despite the reason
of sale, this is typically done free of any financial obligations tied to the ship and with instant
delivery. Shipbrokers usually act as a middle man in these sales, but the internet replaces
more and more of them. The price of the ship depends on many factors. The most important
is the momentary demand for transport which that type of ship could deliver. Despite any
debt that a selling owner may have, or
the interest that a third party may have, in a ship being sold, the crew always has first lien to
the valueof the ship if they are still to be paid.

The newbuild market

The significant difference with the sale and purchase market is that the ships that
are sold here don't exist yet. Anticipation of the market is crucial for those contracting the
construction of a ship. Payment is usually done in five parts. Ten percent upon signing the
contract. The rest in even parts during different phases of construction; cutting of the steel;
laying of the keel; launching; delivery. Prices are determined, as always, by price and
demand. Also resources must be taken into account.

The demolition market

After a ship's lifespan is exceeded it will be demolished. Its steel and
components will be dismantled and sold.
Since this work is hard, dangerous and badly paid it is done in the Far East or Northern parts of the
UK.
 UNIT - V

INTRODUCTION
Ports in India

• India has a long coastline, spanning 7516.6 kilometres, forming one of the biggest peninsulas in the
world. It is serviced by 13 major ports (12 government and 1 corporate) and 187 notified minor and
intermediate ports. The latest addition to major ports is Port Blair on June 2010, the 13th port in the
country.
• Major ports handled over 74% of all cargo traffic in 2007. However, the words "major",
"intermediate" and "minor", do not have a strict association with the traffic volumes served by these
ports.

• As an example, Mundra Port, a newly developed minor port in the state of Gujarat registered a
cargo traffic of around 28.8 million tonnes per annum during the financial year of 2008, which is
higher than that of many major ports.
• The classification of Indian ports into major, minor and intermediate has an administrative
significance. Indian government has a federal structure, and according to its constitution, maritime
transport falls under the "concurrent list", to be administered by both the Central and the State
governments.

• While the Central Shipping Ministry administer the major ports, the minor and intermediate ports
are administered by the relevant departments or ministries in the nine coastal states—West Bengal,
Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat.
• Several of these 187 minor and intermediate ports are merely "notified"; little or no cargo handling
actually takes place. These ports have been identified by the respective governments to be
developed, in a phased manner, a good proportion of them involving public–private partnership

• Cargo handling is projected to grow at 7.7% until 2013-14. Some 60% of India’s container traffic is
handled by the Mumbai Port and Jawaharlal Nehru Port Trust in Navi Mumbai.
Major ports
• There are also 7 shipyards under the control of the central government of India, 2 shipyards
controlled by state governments, and 19 privately owned shipyards. The major ports handled 423.4
million tons of cargo for the financial year 2005-2006, with Visakhapatnam, Kochi, Paradip Port,
Chennai Port and Kandla carrying the greatest tonnage.

• Major ports can collectively handle 400+ million tons of cargo annually, and port operations have
improved since the mid-1990s. All major ports, except one (Ennore Port), are government
administered, but private-sector participation in ports has increased. Karaikal Port Private Limited
(KPPL), a private port developed by MARG Limited, became operational in April, 2009

SERVICE PROVIDERS TO SHIPPING INDUSTRY

CHENNAI PORT, TAMIL NADU

Jawaharlal Nehru Trust Port

• MUNDRA PORT, GUJARAT

• Visakhapatnam Port, Andhra Pradesh
• Kochi Port, Kerala

Recent developments
• In 2000 there were 102 shipping companies operating in India, of which five were privately owned
and based in India and one was owned by the government (Shipping Corporation of India). In 2000
there were 639 government-owned ships, including 91 oil tankers, 79 dry cargo bulk carriers, and
10 cellular container vessels. Indian-flagged vessels carried about 15 per cent of overseas cargo at
Indian ports for financial year 2003.

• The Port Pipavav in Saurashtra, handled by APM terminals; developed by AFCONS is one of the
most efficient Port functioning in India. Giving a push to infrastructure development, the
government in 2013 approved a proposal to set up two major ports in West Bengal and Andhra
Pradesh at an investment of about Rs. 15,820 crore.
• Port of Dhamara in Orissa was inaugurated in August 2010 which is 18 meter deep) of India. There
are another 5 ports offing in Orissa.
 SHIP MANAGEMENT COMPANIES
Port infrastructure development

• The 6,000 km long Indian coastline has 12 major ports and 181 minor/ intermediate ports out of
which 139 are operable. Indian Ports are the gateways to India's international trade by sea and are
handling over 90% of foreign trade.
• The major ports are located at Calcutta/ Haldia, Chennai, Cochin, Ennore, Jawaharlal Nehru Port at
Nhava Sheva, Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin and
Vishakhapatnam.
• The 12 major Indian ports, which are managed by the Port Trust of India under Central Government
jurisdiction, handle 90 percent of the all-India port throughput, and thus bear the brunt of sea borne
trade.
• The 139 minor ports are under the jurisdiction of the respective State Governments. Dry and liquid
bulk make up about 80 percent of the port traffic in volume with general cargo, including the
containerised cargo, constituting the remaining traffic.
• Though the bulk of Indian trade is carried by sea routes, the existing port infrastructure is
insufficient to handle trade flows effectively. The current capacity at major ports is overstretched.
PORTS, INLAND TERMINALS AND CONTAINER FREIGHT STATIONS

The major ports together have a capacity of 215 million metric tonnes (MMT) at 1997- 98 levels.
• During 2001- 2002 , the total cargo handled at major ports was 287.56 million tonnes as
against 281.10 million tonnes during 2000- 2001. The traffic for total ports in India was
worth 740.3 million tons (MT) in 2009 and this is expected to rise to 1,373.1 MT in 2015.
Traffic at major ports is expected to grow at a compound annual growth rate (CAGR) of 7.6
percent from 2010 to 2015.

• The Indian ports sector is poised for significant growth driven by new manufacturing and
power projects and higher cargo traffic at ports. Increase in containerized trade coupled with
the Government’s active initiatives to develop the Indian ports sector, is expected to further
boost the growth.
• The commissioning of power projects based on imported coal and the setting up of steel
projects and offshore exploration and production projects are likely to drive the Indian ports
sector.
 • The situation of limited capacity and high demand has inevitably resulted in port congestion.
This results in overstretched berths leading to pre-berthing delays and longer ship turnaround
time.
• In recent years, major investments in port construction have centred on container as well as
bulk facilities. Modern equipment exists for container and bulk handling.
• The equipment- mix for handling general cargo has to be planned and provided in a manner
that suits the needs of each port.

• However, several major ports lack sufficient draft for large crude tankers. Large vessels are
berthed at Colombo, Singapore, or Dubai, and cargo is shipped to India later in smaller
vessels, thereby escalating the freight cost.
• Additionally, all leading ports such as Mumbai, Jawaharlal Nehru Port Trust (JNPT),
Visakhapatnam, and Mormugao handle more cargo than their designed capacities, further
contributing to congestion and resulting in a longer turnaround time
SHIP BUILDING AND REPAIR YARDS

• The Indian Government prioritized the expansion and modernization of ports as part of its five-year
plan initiatives in 2007. It has been instrumental in redefining the role of ports from mere trade
gateways to integral parts of the global and logistics chain.
• The Committee of Infrastructure constituted a Committee of Secretaries to recommend time-bound
identification and complete connectivity projects to successfully address issues regarding port

connectivity.
• Several projects are underway for the deepening of drafts at major ports as a part of the national
maritime development program.
• The productivity of ports in terms of Average Ship Turn Around (ASTA) and Average Ship Berth
Output (ASBO) has improved in past years.
• The ASTA has decreased from 8.1 days in 1990- 91 to 7.8 days in 1996-97 to 5.06 days in 1998-99
and further to 4.72 days in 1999-2000 (April-Sept).
• The average ASBO increased from 3372 tonnes in 1990- 91 to 4,249 tonnes in 1996- 97.
• Although the ports in India have shown considerable improvement over years, benchmarking them
against the ports in Hong Kong, Los Angeles, and Rotterdam reveals that there needs to be marked
improvement in many parameters to get Indian ports at par with international standards.
• On three important parameters- capacity, productivity and efficiency, Indian ports lack in
comparison to some of the major international ports.
• In international terms, labour and equipment productivity levels are still very low due to the out-
dated equipment, poor training, low equipment handling levels by labour, uneconomic labour
practices, idle time at berth, time loss at shift change and high mining scales and low datum.
• In keeping with general policy of liberalisation and globalisation of economy of the Government of
India, the Port sector has been thrown open to private sector participation.
FINANCING THE SHIPPING INDUSTRY

• Private Sector participation in provision of port facilities at various major ports is envisaged in a big
way.
• There is no legal bar to private sector participation in port facilities as per the provisions of the
existing Major Port Trusts Act, 1963.
• The government has been promoting public-private participation in the ports sector on a build-
operate-transfer (BOT) basis, thereby stepping-up capacities and traffic handling at ports, besides
enhancing their efficiency.
• In order to handle the increase in the sea-borne traffic on account of increase in foreign and coastal
trade, major expansion is required in the port infrastructure sector in the country and this will need
mobilisation of substantial resources. Hence, the opening up of the port sector for privatisation.

MARINE INSURANCE PROVIDERS

• It is expected that privatisation would also improve the efficiency, productivity and quality of
services and also bring competitiveness in port services.
• It is also expected that the private sector participation would help bringing in latest technology and
improved management techniques.
• It is felt necessary to encourage the private sector participation in enhancing port capabilities and
also in modernisation of port equipment.
• Port operators and other undertakings which need to be located in the Port, lease the land,
infrastructure and associated services and provide them to the secondary users - cargo owners, ship