Shipping Business 2 - Copy

8/9/2019 Shipping Business 2 - Copy

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AWARENESS ON WHOLE SHIPPINGBUSINESS SPECTRUM THAT A TRUE

PROFESSIONALISM DEMANDS


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The Institute of Chartered Shipbrokers isthe only internationally recognised

professional body representing shipbrokers,ship managers and agents throughout the

world.


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DRY CARGO CHARTERING TANKER CHARTERING

SALE AND PURCHASE

SHIP MANAGEMENT

PORT AGENCY LINER TRADES


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A DERIVED DEMAND


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IMOnumber :

9193587

Name of

ship :CHEM STAR

Call Sign : V7FI3

Gross

tonnage :

6301

Type of

ship :Chemical/Oil Products Tanker

Year of

build :1999

Flag : Marshall Islands

Status of

ship : In ServiceLast

update :2008-12-22


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WHAT IS CHARTERINGy Chartering is an activity within the shipping industry.

In some cases a charterer may own cargo and employ a

shipbroker to find a ship to deliver the cargo for acertain price, called freight rate.

y Freight rates may be on a per-ton basis over a certainroute (e.g. for iron ore between Brazil and China) or

alternatively may be expressed in terms of a total sum -normally in U.S. dollars - per day for the agreedduration of the charter.


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CONTRACT OF AFFREIGHTMENT

yA Contract of Carriage of Goods by Sea is Called aContract of Affreightment.

y Consideration for the Carriage is called the Freight.yA Contract of Affreightment may take the form of

A Charter Party

A Bill of Lading


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WHAT IS CHARTERPARTYy Charter Party(Lat. charta partita, a legal paper or

instrument, divided, i.e. written in duplicate so that eachparty retains half ), a written, or partly written and partly

printed, contract between a shipowner and a merchant, bywhich a ship is let or hired for the conveyance of goods.

y It can be of specified voyage, or for a defined period.

y A written contract between ship owner and chartererwhereby a ship is hired; all terms, conditions andexceptions are stated in the contract or incorporated byreference.

y A charter party is the contract between the owner of avessel and the charterer for the use of a vessel.


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TYPRES OF CHARTERPARTYy DEMISE OR BAREBOAT CHARTER PARTY

y NON DEMISE CHARTER PARTY


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DEMISE CHARTER PARTYyAbareboat charter is an arrangement for the hiring

of a boat, whereby no crew or provisions are included

as part of the agreement; instead, the people who rentthe boat from the owner are responsible for taking careof such things.


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NON DEMISE CHARTER PARTYyAbareboat charter is an arrangement for the hiring

of a boat, wherebycrew or provisions are included as

part of the agreement; instead, the ship owner areresponsible for taking care of such things.


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KINDS OF CHARTER PARTYy TIME CHARTER PARTY

yVOYAGE CHARTER PARTY


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TIME CHARTER PARTYyA time charter, the vessel is hired for a specific amount

of time. The owner still manages the vessel but the

charterer gives orders for the employment of thevessel, and may sub-charter the vessel on a timecharter or voyage charter basis.


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VOYAGE CHARTERPARYyA voyage charter, the charterer hires the vessel for a

single voyage, and the vessel's owner (or disponent

owner) provides the master, crew, bunkers andsupplies


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BIMCOy BIMCO is an independent international shipping association, with a

membership composed of ship owners, managers, brokers, agents andmany other stakeholders with vested interests in the shippingindustry.

y The association acts on behalf of its global membership to promotehigher standards and greater harmony in regulatory matters.y It is a catalyst for the development and promotion of fair and equitable

international shipping policy.y BIMCO is accredited as a Non-Governmental Organisation (NGO),

holds observer status with a number of United Nations organs and is in

close dialogue with maritime administrations, regulatory institutionsand other stakeholders within the EU, the USA and Asia. Theassociation provides one of the most comprehensive sources ofpractical shipping information and a broad range of advisory andconsulting services to its members.


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SKELETON OF VOYOAGE CHARTERy Datey Names of the partiesy Name of the ship with some description

y Loading porty Cargo nature and quantityy Discharging porty Lay days and Cancelling datesy Rate of freight and manner of payment

y Loading/Discharging costsy Speed of Loading and Discharging (laytime)y Demurrage ratey Brokerages (Commissions)


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BROKERAGE COMMISIONy COMMISION DUE TO THE BROKER OR BROKERS

INVOLVED IN THE FIXTURE AND IS THEIR

REWARD FOR SUCCEEDING IN BRINGING THENEGOTIATIONS TO SATISFACTORY CONCLUSION.

y 1 % AND 2 % of the GROSS FREIGHT ASCOMMISION


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SHIPPING TERMSy All Risk Insurance - It is a clause in marine insurance policies which covers loss and damage from

external causes, like fire, collision, pilferage, etc. excluding innate flaws in the goods, like decay,germination and faulty packaging, improper packing/ loading or loss of market, war, strikes, riots andcivil commotions. [also check Marine Insurance]

All-Risk Clause - It is an insurance provision providing additional coverage to an Open Cargo Policy.

It covers theft, pilferage, non-delivery, fresh water damage, breakage, and leakage. It does not coverinherent vice, loss of market, and losses caused by delay.

Alongside - It is a term used for the side of a ship. The goods to be delivered "alongside" are placed onthe dock or barge within the reach of the transport ship's tackle so that they can be loaded aboard theship.

Belly Cargo - It is a term for freight accommodation below the main deck.

Berth - It is a term for the place beside a pier, quay or wharf where a vessel is loaded or discharged.

Berth Liner Service - It is a regular scheduled steamship line having regular published schedules toand fro the defined trade areas.

Berth or Liner Terms - It is the condition of carriage followed by a shipping company. It also statesthat the costs for loading and unloading are borne by the carrier subject to the custom of the portconcerned.

Break Bulk Cargo (B/B)- It is a term for cargo being carried in the hold of a vessel rather than in acontainer.


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SHIPPING TERMSy CargoReceipt - It is a receipt of cargo issued by a consolidator for shipment. It is used in ocean freight.

Dead Freight - It is a freight charge, which is paid by the charterer of a vessel for the contracted space only and not forthe partial unoccupied space.

Deadweight (DWT) - It is the total weight of cargo, stores and bunkers that a vessel can lift when loaded to maximumdraught as applicable under the circumstances. It is expressed in tons.

Deck Cargo - It is a cargo carried on deck rather than within the enclosed cargo spaces of a vessel.

Dock Receipt - It is a receipt issued by an ocean carrier for a shipment received or delivered at a pier or dock.

FreeAlongside - A term for the quoted price which includes the cost of delivering the goods alongside a designatedvessel.

Free In (F.I.) - It is a pricing term in which the charterer of a vessel is responsible for the cost of loading goods onto thevessel.

Free In and Out (F.I.O.) - It is a pricing term in which the charterer of a vessel is responsible for the cost of loading

and unloading of goods from the vessel.

Free Out (F.O.) - It is a pricing term in which the quoted price is inclusive of the cost of unloading goods from thevessel.

G.R. Wt./G.W. - Gross Weight. It is the total weight of merchandise (both goods and packaging) and the shippingcontainer.


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SHIPPING TERMSy Gang - It is a term for group of stevedores, generally 4 to 5, with a supervisor assigned to a hold or

portion of the vessel being loaded or unloaded.

Gateway- (a) It is a port of entry into a country of origin. (b) It is a point through which the freightmoves from one territory to another.

GCR- It stands for General Cargo Rate. It is the rate of the carriage of cargo other than a class rate orspecified commodity rate.

Gross Weight - It is the entire weight of goods, packing, and container, which is ready for shipment.

Hatch - It is an opening in a deck that gives access to the internal compartments.

Heavy-Lift Vessel - It is a specially designed and equipped vessel for the carriage of heavy cargo.

Heavy Lift - It is a term used for freight too heavy to be handled by regular ship's tackle.

Jettison - It is the throwing of the cargo or ship's property overboard in a hope of saving the shipfrom sinking.

Knot (Nautical) - It is the unit of speed used in navigation. It is equivalent to one nautical mile, or6,080.20 feet per hour or 1.85 kilometers per hour.

Lash - It stands for 'Lighter Aboard Ship.' It is a barge carrier that is designed to act as a shuttlebetween ports, taking on and discharging barges.


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SHIPPING TERMSy Lay Days - It is the number of days permitted in a charter party for loading and discharging of cargo.

It can be in consecutive days, working days, weather working days, etc.

Legal Weight - It is the weight of the merchandise along with its own packaging, excluding theexterior containers or packing materials. [also check Gross Weight]

Lighter - It is a flat-bottomed boat used in transporting cargo between a vessel and the shore.Lighterage - It is a term used for the cost of loading or unloading a vessel by means of bargesalongside.

Liner - It is a vessel carrying cargo that operates with a fixed schedule on a particular route.

Lo/Lo - It stands for "lift-on, lift-off." It is a method by which the cargo is loaded onto and dischargedfrom an ocean vessel with the use of a crane.

y Marine Insurance - An insurance, which compensates the owner of goods transported overseas inthe event of loss that cannot be recovered from the carrier.

Mate's Receipt - It is a declaration signed by the chief officer of a vessel stating that a certainconsignment has been received on board of the vessel.

Measurement Ton - It is also known as the cargo ton or freight ton. It is a space measurement,generally 40 cubic feet or one cubic meter.


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SHIPPING TERMSy Mercantile marine - It is the shipping, which is employed in commerce and not in war.

Metric Ton - It is a unit of weight, which is equal to 1,000 kilograms or 2,204.6 pounds.

National Carrier - It is a flag carrier owned or controlled by the state.

Nested - Packed one within another like paper cups for saving space.

y Net Weight - It stands for Actual Net Weight. It is weight of goods alone excluding the packaging.

Part Load Charter - It is the chartering of a ship or an aircraft where it agrees that part of the cargowill be discharged at one destination and a part of it at another.

Perils of the Sea - It refers to the damage caused by heavy weather, stranding, striking on rocks or onbottom, contacts with f loating agent, collision with other vessels, etc.

Pilferage - It is a petty theft, especially theft of articles in smaller quantities and not in package lots.

Port Authority- It is a government body, which maintains various airports and/or ocean cargo pierfacilities, transit, sheds, loading equipment warehouses for air cargo, etc. in international shipping. Itenjoys the power of levying dockage and wharfage charges, landing fees, etc.


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SHIPPING TERMSy

PortMarks - It is an identifying set of letters, numbers and/or geometric symbols being followed bythe name of the port of destination. These are placed on export shipments.

y Prepaid Freight - The freight charges collected in the local currency of the country of export.

Route - It is a path from one network point to another.

SteamshipAgent - It is a term for a representative, duly appointed and authorized, in a specifiedterritory to act on behalf of a steamship line or lines and to attend to all matters relating to the vesselsowned by his principals.

Stowage - It is the lacing of cargo in a vessel in a manner to provide the utmost safety and efficiencyfor the ship and the goods it carries.

Sue & Labor Clause - It is a provision in marine insurance, which obligates the assured to do thingsnecessary after a loss in order to prevent any further loss and to act in the best interests of the insurer.

Tare Weight - It is the weight of the container and/or packed materials without considering theweight of the goods inside the container.

Tariff- It is the duty levied on goods transported from one customs area to another, or on importedproducts.

Ton-Deadweight - The term indicates to the carrying capacity of the ship in terms of weight in tonsof the cargo, fuel, provisions and passengers, which the vessel can carry.


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SHIPPING TERMSy Tramp - It is a vessel not operating along a definite route on a fixed schedule. It takes cargo

wherever the shippers desire.

Wharfage - It is a fee charged for the use of a wharf or quay.

WithAverage - It is a term for marine insurance, which mean that the shipment is protected

for partial damage whenever it exceeds a stated percentage.

With ParticularAverage (W.P.A.) - It is an insurance term, which means that a part of loss ordamage of goods is insured. Usually it must be caused by seawater. It can also be extended tocover loss by theft, pilferage, delivery, leakage, and breakage.

Without Reserve - It is a term under which the agent or representative of a shipper isempowered to make any decision and adjustments abroad without the approval of the group orindividual represented. [also check Advisory Capacity]

y TOVALOP Tanker Owners Voluntary Agreement Concerning Liability for OilPollution


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TANKERSy Tankers carry over 40 million barrels of crude oil per

day worldwide, or about two thirds of the world's oiltrade.[i] Tankers are a flexible, cost-effective means of

transporting oil to areas of highest demand. Thelargest of these vessels are over 1,000 feet long and cancarry well over 2 million barrels of oil. Because of theirenormous scale and the fact that so many travel

through the narrow cho

kepo

int of the Strait each day,these supertankers would certainly make attractivetargets in any attempt to materially reduce the flow ofoil to the global market.


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TYPES OF TANKVESSELSyVery large crude carriers (VLCC), first developed in the

1960s, have a capacity of over 200,000 DWT and can

carry two million barrels of oil. Ultra large crudecarriers (ULCC) can carry in excess of 320,000 DWT,roughly three million barrels of oil. Other categories oftankers include: Medium Range (MR), Panamax (thelargest tankers that can fit through the Panama Canal),Aframax, and Suezmax (the largest tankers that canfit through the Suez Canal).


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THE TANKER MARKETy TANKER MARKET IS DIVIDED INTO

CRUDE OIL

PETROLEUM PRODUCTSCLEAN OIL PETORL ,SPRIT ,KEROSENE,NAPHTHA

,LUBURICATION OILS

DIRTY OIL FUEL OILS,DIESEL,HEAVY GAS OILS .ALSO CRUDE

CHEMICALS AND OTHER PRODUCTS

GAS


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TYPES OF TANKVESSELS

Oil tanker size categories

AFRAScale[40] Flexible market scale[40]

Class Size in DWT Class Size in DWTNewprice[41]

Usedprice[42]

GeneralPurpose tanker

10,00024,999 Product tanker 10,00060,000

$43M $42.5MMedium Range

tanker 25,00044,999 Panamax 60,00080,000

LR1 (LargeRange 1)

45,00079,999 Aframax 80,000120,000

$58M $60.7MLR2 (LargeRange 2)

80,000159,999 Suezmax120,000200,000

VLCC (VeryLarge CrudeCarrier)

160,000319,999 VLCC 200,000320,000

$120M $116M

ULCC (UltraLarge CrudeCarrier)

320,000549,999

Ultra LargeCrude Carrier

320,000550,000


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ULCC

Hellespont Alhambra(now TIAsia), aULCC TI classsupertanker, thelargest ocean-goingships in the world


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LNG TANKVESSELSy There are currently 235 liquefied natural gas (LNG)

tankers in operation worldwide.[i] New LNG tankers havean average capacity of three billion cubic feet, costing

approximately $260 million each.[ii] LNG tankers differfrom traditional oil tankers in that their cargo, liquefiednatural gas, must be cooled to extremely low temperatures(-260F) and has slightly different characteristics than oil(including a higher propensity to burn).[iii] LNG tankers

typically use multiple, separate holds or compartments -each carrying up to 888,867 cubic feet of LNG. Storagecompartments in traditional oil tankers typically hold onlyone-tenth as much.[iv]


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INTERTANKOy Membership is open to independent tanker owners and

operators of oil and chemical tankers, i.e. non-oil companies andnon-state controlled tanker owners, who fulfil the Association'smembership criteria.

y Independent owners operate some 80% of the world's tankerfleet .

y January 2010, the organisation had 250 members, whosecombined fleet comprises some 3,050 tankers totalling 260million dwt.

y

INTERTANKO's associate membership stands at some 330companies with an interest in shipping of oil and chemicals.y INTERTANKO has a vision of a professional, efficient and

respected industry, that is dedicated to achieving Safe transport,cleaner seas and free competition.


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TANKER CHARTER PARTIESy FEW POINTS ON

+ Readiness to Load and Time counting Clauses

+ 24 x 7 Working+ 72 Hours Total Time for Loading and Discharging.

+ Time factor in Oil market

+ Unified Pricing

WORLD SCALE


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WORLD SCALEyWorldscale is a unified system of establishing

payment of freight rate for a given oil tanker's cargo

y

Worldscale is the standard system for assessingfreight rates. Once a year, a set of base voyage costs(including bunkers, port costs, etc. for both ladenand return ballast legs) is published for a

theoretical standard vessel plying its tradebetween each of the worlds main loading anddischarging ports.


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TANK VESSELS

IMO number : 9193587Name of ship : CHEM STARCall Sign : V7FI3Gross tonnage : 6301Type of ship : Chemical/Oil ProductsTankerYear of build : 1999Flag : Marshall IslandsStatus of ship : In ServiceLast update : 2008-12-22

Shipping Business 2 - Copy

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