Course: Logistics & Port Management

SUB: :MEDP

CODE: BLP 204

HOURS: 90 HOURS
Midhun Raj K, [Link] Management,YIASCM
Syllabus
 Unit 1
Functions of Shipping, Ship: Types of ships - Principal dimensions - Ship’s tonnages (GT, NT, DWT) -
Cargo carrying capacity. Ship owners, operators and managers: Ship manager - Structure of ship owning
and management organizations - Ship's personal - Agents. 
 Unit – 2
Ship Registration, Classification and Insurance Registration - Types of registries - Flag - Classification -
Port State Control - Inspections - Surveys - Conditions of survey and inspections - Other surveys.
Insurance: Hull and machinery insurance - General average - Salvage - Third party recoveries - Claims
and handling - Protection and indemnity. 
 Unit 3
Operations and Voyage Estimation, Cost and accounting: Ship management cost function - Budget
preparation - Account processing and reporting. Operations: Voyage planning - Hires and freight -
Commissions - Commercial operations. Voyage Estimation: Length of the voyage - Commencing the
voyage estimates - tankers - Time charter - Practical calculations - Voyage estimates. Bunkering.
 
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Syllabus
 Unit –4
Cargo and Geographic Factors, Dry cargoes - Non-bulk dry cargoes - Stowage factors - Dangerous
cargo and IMDG Code - Bills of lading and cargo claims - Liquid cargoes - Tank cleaning - Petroleum
63 products - Chemicals - Liquid gas carriers - Ullage, deadfreight and slack tanks - Geography and
metrology - Routing services - Load lines.
 Unit – 5
Crew Management and Ship Manager’s Legal Relations, Crew management: Recruitment, training
and placement of officers and crew on board - Marine crew travel - Compliance of ISPS code -
Knowledge management on board and on shore. Ship manager’s legal relations: Management
contracts - Legal problems - Arrest in Rem - Freezing orders - Freight and hire payments - Dealing
with Port Agents and Chartering Brokers.

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UNIT 3
Operations and Voyage Estimation, Cost and accounting

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Objectives
 1. To Understand the Ship management cost

 2. To know the different voyage planning

 3. To know the voyage estimation

 4. To Understand the factors affecting voyage estimation

 5. To know about budget preparation

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Ship Management cost

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Ship Management cost

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Budget Preparation

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Budget Preparation

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Budget Preparation
 Ship Crew cost

 Ship Store cost

 Ship Maintenance cost

 Ship Insurance

 Administration cost

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Voyage planning

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Voyage planning
 Passage planning or voyage planning is a procedure to develop a complete description of
a vessel's voyage from start to finish.

 The plan includes leaving the dock and harbor area, the en-route portion of a voyage,
approaching the destination, and mooring, the industry term for this is 'berth to berth'.

 According to international law, a vessel's captain is legally responsible for passage

planning, The duty of passage planning is usually delegated to the ship's navigation
officer, typically the second officer on merchant ships.

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Voyage planning
Passage planning consists of four stages:

 appraisal,

 planning,

 execution, and

 monitoring

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Voyage planning

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Voyage planning
 The Guidelines specify three key items to consider in the practice of voyage planning:

 having and using a voyage plan is "of essential importance for safety of life at sea, safety
and efficiency of navigation and protection of the marine environment,"

 voyage planning is necessary for all types of vessels on all types of voyages, and

 the plan's scope should be based on all information available, should be "berth to berth,"
including when under pilotage, and the plan includes the execution and the monitoring of
progress

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Voyage planning

Factors

 Hires

 Freight

 Commission

 Commercial operation

[Link]

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Voyage estimation

 A voyage estimate aims at calculating the profit or loss that a vessel will make from a
proposed voyage.

 A voyage estimate is the calculation of the profitability of a perspective voyage of a ship

using estimated figures. In the case of a tramp ship owner, the estimate is used to
compare two or more possible voyages in order to determine which is the most profitable.
Similarly, a time charterer would compare two or more ships so as to charter the one
which is least costly overall.

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Voyage estimation

 Voyage estimating. This is the activity earned out by owners, charterers, ship brokers,
and/or charterers’ agents, to determine the return for any potential voyage on a voyage
charter, after deducting, from the freight revenue, the running costs and other expenses
during the voyage

 The content of an estimate varies according to the type and terms of the charter and
whether the calculation is being made by a shipowner or a [Link] an owner, the
principal costs are the running cost of the ship (or hire money for a time charterer),
bunker costs, port charges and canal dues together with ship’s agency fees and any cargo
handling costs

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Voyage estimation

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Time charter equivalent (TCE)
 Time charter equivalent (TCE) is a method for determining the net profit or loss of
operating a vessel per day.

 Time charter equivalent (TCE) is a shipping industry measure used to calculate the
average daily revenue performance of a vessel. Time charter equivalent is calculated by
taking voyage revenues, subtracting voyage expense, including canal, bunker and port
costs, and then dividing the total by the round-trip voyage duration in days. It gives
shipping companies a tool to measure period-to-period changes.

 [Link]
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Bunkering
 Bunkering is the supplying of fuel for use by ships, and includes the shipboard logistics of
loading fuel and distributing it among available bunker tanks. A person dealing in trade of
bunker fuel is called a Bunker Trader.

 The term originated in the days of steamships, when the fuel, coal, was stored in
bunkers. Nowadays the term bunker is generally applied to the storage
of petroleum products in tanks, and the practice and business of refueling ships.
Bunkering operations are located at seaports, and they include the storage of "bunker"
(ship) fuels and the provision of the fuel to vessels.

 Singapore is currently the largest bunkering port in the world.

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Bunkering
 Different types of Bunker fuel are used depending on the vessel types.

 Marine Gas Oil (MGO)

 Marine Diesel Oil (MDO)

 Intermediate Fuel Oil (IFO)

 Marine Fuel Oil (MFO)

 Heavy Fuel Oil (HFO)

 Liquefied natural gas (LNG)

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SUMMARIZING & DISCUSSION
Importance of ship cost
Importance of Budget planning
Understanding voyage estimation
Understanding voyage planning
Stages of planning

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