A PRESENTATION ON SHIPPING TRADE TYPES TRAMP AND LINER SHIPPING AND ITS FEATURES AND IMPACT IN GLOBAL SHIPPING WITH EXAMPLES OF ITS TRADE ROUTE AND CHARACTERISTICS
4. TRAMP
• The tramp ship is one that is hired like a taxi or leased auto.
That is, it is a bulk or tank ship that is hired on a voyage or time
basis.
• On a voyage basis, a U.S. exporter of grain will seek a tramp
ship that will become empty at a desired U.S. port. It will then
be hired for one-way movement to a foreign port. Port fees, a
daily operating rate and demurrage, will be part of the charter
contract.
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5. TRAMP
• shipping service where carriers contract to haul cargo in
shipload lots between ports designated by charterer.
• Tramp ships provide convenient, timely & economic
transportation for many goods needed in a complex industrial
society
• It serves
• In established trades (i.e., grain from US, Canada, Argentina & Australia to
N. Europe, Med, Africa, Japan & S. Asia
• On new routes to alleviate temporary critical shortages
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6. TRAMP
• Moves 4.5 billion tons of basic agricultural, forestry, mining
products & manufactured raw materials (steel, cement, etc)
world-wide
• Depends on a global network of brokers, agents &
representatives to market services, and procure & contract
cargoes
• Smaller general purpose Tramps face fierce competition from
• Larger bulkers: 30-50,000 DWT “Handi-Max” & very large (100-159,000
DWT) special purpose, ore carriers
• Container ships
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7. TRAMP
• STILL (1996): 50% of all dry-bulk ships & 20% of all dry-bulk
cargo carried by 10-30,000 DWT vessels to service
• Cargoes that cannot be placed in containers
• Transportation of small (10-15,000 T) lots
• Shallow depth ports and/or
• Ports with low to moderate facilities requiring self-unloading
vessels
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8. CHARTERING
• CHARTER-The hiring of a vessel for either:
• a specified period of time or
• a specific voyage or set of voyages.
A chartered vessel is technically a private carrier which predominates
in tramp trade, but liner companies often charter vessels or lease
vessels to charter depending on cargo demand
• CHARTERER- The entity hiring the vessel from the shipowner.
• CHARTER-PARTY-The contract between the owner and the
charterer, stipulating in detail each party’s responsibilities in the
transaction.
Charta Partita is Latin for a “letter divided.”
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11. LINER SHIPPING
• Liner shipping is the service of transporting goods by means of
high-capacity, ocean-going ships that transit regular routes on
fixed schedules.
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12. ABOUT LINER SHIPPING
• Transportation by sea in the early days was done by sailing
ships, which depended on wind and weather.
• There are approximately 400 liner services in operation today,
• Most providing weekly departures from all the ports that each
service calls.
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13. ADVANTAGES OF LINER SERVICE
• Regularities of sailing to scheduled
• Uniform rates for all shippers
• Cover wide range of ports
• Sometimes give rebates based on
loyalty agreements
• Stable freight rates
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14. IMPACT OF LINER SHIPPING
• Positive:
• Lowering of Costs
• Increases in Availability
• Economic Growth
• Large Loads
• Global Economic Engine Negative:
• Time
• Environmental Costs
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