1. Subject “RADO” Group Members
 Sea Transport
 MMM : 3rd YR – V
SEM
 Prashant Mahamulkar –
Roll no 19
 Rajendra Sagare – Roll
no 30
 Avinash Ansurakar –
Roll no 04

2.  Transport of goods & commodities by ship.
 Goods is measured in tons but transport is measured by tons
/ miles (the weight carried X the length of the voyages)

3.  Sea transports is slow
– ships carrying raw material (tramp) move at around 13-14
knots & container ships speed 18-25 knots
 Sea transports is cheap
– because it can take advantage of economies of scale, large
ships can reduce the cost per unit carried
 Sea transports connect land which separated by water
 Suitable for transporting low value–high volumes
commodities

4. Main parts of ship.
1:Smokestack or funnel; 2: Stern; 3: Propeller & Rudder;
4: Portside (the right side is known as starboad); 5:Anchor;
6: Bulbous bow; 7: Bow; 8: Deck; 9: Superstructure

5.  Below chart will explain share of sea transport in world trade
SHARES in 2008 SHARES in 2009 SHARES in 2010 SHARES in 2011 SHARES in 2012
-- Sea transport 44% 41% 43% 41% 57%
-- Air transport 32% 34% 35% 35% 33%
-- Other transport 22% 22% 21% 22% 8%
-- Rail transport 2% 2% 2% 2% 2%
0%
10%
20%
30%
40%
50%
60%
70%
Sources: ITC calculations based on Eurostat, United Nations Statistics Division, World Trade
Organisation, International Monetary Fund and national sources statistics.

6.  Bulk carriers
 Container ships
 Gas carriers
 Chemical carriers
 Roll-on / Roll-off ships
 Passenger ships

7.  A bulk carrier is a cargo vessel designed to transport solid
bulk cargo (grain, coal, iron ore, bauxite, phosphates and
nitrates.)
 Bulk carriers are vessels of simple construction, equipped
with several holds and watertight closings (hatch covers).
They have only one deck.
- very specialized (ore carriers adapted for transporting heavy
minerals)
- multi-purpose (bulk carriers, bulk ore carriers)

8.  Bulk carriers are commonly divided into four size categories:
- Handysize: from 10,000 to 35,000 tons
- Handymax: from 35,000 to 50,000 tons
- Panamax: from 50,000 to 80,000 tons
- Capesize: more than 120,000 tons

9.  Is a cargo vessel designed to transport containers.
 The capacity of a container ship is indicated in TEU
(twenty-foot equivalent unit).
 Container ships can be loaded in open-air holds (open top) or
in holds with hatch covers in which other containers are
stacked.
 The largest container ships now reach the height of 400
meters able to transport up to 15,000 containers.

10.  Many container ships do not have handling equipment as
most major terminals are equipped with stern gantries. Ships
equipped with cranes they serve that ports where handling
materials are not provided
 Below deck, containers are stacked one over the other in slots
made with sliding rails
 On deck, the number of container floors (or ship container
shelves) is limited for reasons of stability and visibility

12.  Gas carriers are tankers equipped with sophisticated
materials for transporting gas (LPG or LNG).
LPG: Liquefied Petroleum Gas
LNG: Liquefied Natural Gas
- Natural gas is transported in its liquid state at a low
temperature (-162 ° C) to reduce its volume and thus increase
transport capacity.

13.  - Oil tankers / Chemical tankers
They carry both refined oil and chemical products in different
tanks.
 - Multipurpose chemical tankers or parcel tankers
They transport many different products at atmospheric
pressure. Each tank is equipped with its submersible pump
and its own piping system.
 - Specialized chemical tankers
These vessels carry only one type of product with specific
properties for which they are especially designed.

14.  Ro-ro ships are vessels designed to transport vehicles and
other wheeled vehicles.
 Ro-ro ships are equipped with fixed lashing equipment on
decks (sockets, rings), bulkheads (rings) and on ceilings.

15.  A passenger ship is a vessel designed to carry
passengers, who either wish to cross an ocean, river or to join
a cruise.
 This type of ship typically sails at night to allow passengers to
enjoy stopovers during the day for sightseeing.
 The size of cruise ships range from ten to several thousand
passengers.
 These ships have the characteristics of ro-ro ships which
have the capability to board passengers.

16.  A cruise ship is a vessel whose purpose is to provide sea
tourist travel

17.  World seaborne trade in cargo (things to be moved) are
divided in 03 markets
 The liner market
 The tramp market (dry cargo)
 The tanker market

18.  It deals with general cargo which usually relatively expensive
compared with bulks
 A liner will have a regular run and operate to a schedule. They
are generally higher powered than tramp ships with better
sea keeping qualities, thus they are significantly more
expensive to build.

19.  A tramp has no fixed run but will go wherever a suitable
cargo takes it.
 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.

20.  There are three types of charters
-voyage -time and -demise
 The tramp ship is a contract carrier

21.  Tankers are designed to carry liquid cargoes (not just oil),
 Oil tankers come in two basic flavors',
- the crude carrier, which carries crude oil, and
- the clean products tanker, which carries the refined
products, such as petrol, gasoline, aviation fuel, kerosene and
paraffin.

22. Liner Tramp
 Is a service that operates within a
schedule and has a fixed port rotation
with published dates of calls at the
advertised ports.
 It generally fulfills the schedule unless
in cases where a call at one of the ports
has been unduly delayed due to natural
or man-mad causes.
 They are significantly more expensive to
build.
 Liners are typically built for passenger
and container operation
 Example : The UK/NWC continent
service of MSC which has a fixed weekly
schedule calling the South African ports
of Durban, Cape Town and Port
Elizabeth and carrying cargo to the
UK/NWC ports of
Felixstowe, Antwerp, Hamburg, Le
Havre and Rotterdam.
 A Tramp Service or tramper on the
other hand is a ship that has no fixed
routing or schedule and is available at
short notice (or fixture) to load any
cargo from any port to any port.
 The tramp ship is a contract carrier.
Unlike a liner, often called a common
carrier, which has a fixed schedule and
a published tariff, the ideal tramp can
carry anything to anywhere, and freight
rates are influenced by supply and
demand.
 Example : A ship that arrives at Durban
from Korea to discharge cargo might
carry some other cargo from Durban to
the Oakland in the West Coast of USA
which in an entirely different direction..
From Oakland say for example it could
carry some cargo and go to
Bremerhaven.

23.  A tramp has no fixed run but will go wherever a suitable
cargo takes it.
 The tramp ship is a contract carrier. Unlike a liner, often
called a common carrier, which has a fixed schedule and a
published tariff, the ideal tramp can carry anything to
anywhere, and freight rates are influenced by supply and
demand
 There are three types of charters,
-voyage,
-time and
-demise.

24.  The voyage charter is the most common charter in tramp
shipping,
 Voyage charterparty is a contract whereby :
- the ship – owner places all or part of the carrying capacity of
ship at the disposal of the charter (the voyage chartered)
- For the transport of goods agreed upon, on one or more
voyages, for a consideration called “freight” based on the
quantity of cargo carried & usually payable at the end of the
voyage.
 “BIMCO” – Baltic & International Maritime Council” Most
commonly used form

25.  In time charter the owner provides a vessel that is fully
manned and equipped.
 The owner provides the crew, but the crew takes orders from
the charterer.
 Owner is also responsible for insuring the vessel, repairs that
vessel may need, engine parts, & food for ships personnel.
 The charterer is responsible for everything else.
 The main advantage of the time charter is that it diverts the
costs of running a ship to the charterer.

26.  The demise charter is the least used in the tramp trade
because it heavily favors the owner.
 The ship owner only provides a ship devoid of any
crew, stores, or fuel.
 It is the Charterer's responsibility to provide everything the
ship will need.

27.  The ship owner must provide a seaworthy vessel, but once
the charterer accepts the vessel, the responsibility of
seaworthiness is the charterer's.
 The charterer crews the vessel, but the owner can make
recommendations.
 There are no standardized forms in a demise
charter, contracts can vary greatly, and are written up to meet
the needs of the charterer.

28.  Tankers are designed to carry liquid cargoes (not just oil),
 Oil tankers come in two basic flavors,
-the crude carrier, which carries crude oil, and
-the clean products tanker, which carries the refined
products, such as petrol, gasoline, aviation fuel, kerosene and
paraffin.
 Tankers range in all sizes, from the small bunkering tanker
(used for re-fuelling larger vessels) of 1000 DWT tons to the
real giants:
- the VLCC (Very Large Crude Carrier) of between 2-300,000
DWT and
- the ULCC (Ultra Large Crude Carrier) of over 300,000 DWT

29. * Handysize tanker: 20,000 to 30,000dwt
* Handymax tanker: approx 45,000 dwt
* Panamax tanker: 79,000 dwt
* Aframax tanker: 79,000 to 120000 dwt
* Suezmax tanker: 120000 to 180000 dwt
* V.L.C.C tanker: 200000- 300000 dwt
* U.L.C.C tanker : over 300000 dwt

31.  It should be remembered that over 60% of the world's oil is
transported by these tankers, and over 99% of that arrives
safely without causing pollution. Indeed most oil pollution
seen on beaches comes from the engine rooms of vessels (of
all types) and not from the cargo tanks of tankers.

32.  Transportation by sea in the early days was done by sailing
ships, which depended on wind and weather. Reliability came
in as steam engines started to propel ships and scheduled
services started by early 18th century
 In the sixtieth, the conventional general cargo ship was
increasingly replaced by the container ship, then
containerization has had effect & it will continue to have on
shipping industry
 Container ships have a larger, Faster & a quicker turn around
than the ships
 Containers are introduced to reduce the cargo handling cost
& to increase productivity (general cargo ships vs container
ships)

33.  Conferences are organization of shipping lines operating on a
particular route
 i.e. the transpacific west bound freight agreement operates
on the route from US to Far east route & the indian sub-
continent

34.  Conferences can be either open or closed to accept new members
 The conferences are formal agreement between shipping lines on
route, setting prices & managing capacity, a locating route etc
 Conference issue a freight tariff
 The principal activity of shipping conferences is to meet frequently
in order to fix freight rates (or passenger fares in the case of
passenger shipping conferences).
 Freight rates are typically set by commodity, with the highest value
commodities charged higher rates than lower value commodities.

35.  Conference set prices, often based on loyalty arrangement, the
purpose of loyalty arrangement is
a) to ensure that all liner cargoes in the sphere of operation of the
conference,
b) members wish to reserve the carriage of cargoes for themselves
c) & to eliminate competition,
 Basically they use 03 kind of loyalty arrangements : i) the differ
rebate system ii) the dual rate system iii) immediate rebate
system, last 2 are known as contract rate system, while differ rebate
system traditionally does not use contracts

36.  The purpose is to eliminate competition
 The rebate systems in operation are
 Deferred rebate: The rebate is calculated on the freight cost during a
designated period called the shipment period of usually 3 to 6
months, but is paid after the same period of time (deferred period)
keeping in mind that shipper will continue to use the conference line
for all his shipments during the shipment period and deferred
period
 Dual rate system: If the shippers sign a contract with conference for
exclusive patronage, they get the benefit of rates which are lower
than the rates applicable to non-contract shippers.
 Immediate rebate system: Under this system the contract shippers
are given immediate rebate on the freight on shipment of their
cargoes. So shippers get their money rebate without any deferment

37.  Irrespective of the type of shipment whether it is a break bulk
or in containers, the rates charged have to reflect the law of
supply and demand.
 The major factor in shipping industry today is the
competition.
 Shipping conferences were introduced to stabilize freight
rates, and to reduce the possibility of under-cutting of rates
by an oversupply of operators
 The charges are based either on the weight carried, for heavy
(dense) cargo, or on the volume taken up for light cargo

38.  The value of the commodity & Nature of the cargo
 The Distance & Canal dues
 Equipment repositioning cost
 Vessel frequencies and speed of the vessel and transit time
 Two most important parameters of cargo are weight and
measurement. Break bulk or LCL cargo freight rates are
quoted in revenue ton basis i.e. weight ton or measurement
ton whichever is higher. FCL rates are quoted based on the
size and type of the container