SHIP OPERATIONS AND MANAGEMENT

21MR61
MODULE 1 Introduction to ship Management

Nithin Joshuva
SIT MANAGLORE
• Course objectives:
• ● To understand the concepts of Ship operations.
• ● To understand the concepts of Freight Rates, voyage
planning, marine Insurance
• ● To understand the organizational structure of a
shipping company.
• ● To get familiarized with various chartering methods, Bill
of Lading and di erent paper works on board a
• merchant vessel
• MODULE-1 8 HOURS
• Introduction to Ship Management: Modern shipping practice. Marine vehicles and
cargo, care of cargo against damage. Cargoes, stowage of cargo and cargo
information. Stowage factor. Care and securing of cargo Damage of cargo
Development in shipping and cargo handling. Multimodal transportation, Liner
and tramp shipping services. Shipping companies- Owned and ship management
company, organization structure.
• MODULE-2 8 HOURS
• Agents and Agencies: Ports and other intermediaries – Stevedores, Agent and
Agency. Port clearance, Custom clearance – Ship documents for inward and
outward clearance and procedure. Import and export procedure and documents
for import and export. Procedure to convert foreign going vessels into coastal
vessels and vice versa.
• MODULE-3 8 HOURS
• Marine Insurance: Risk and risk control. Classif ication of insurance business.
Principles of insurance and Types. Important clauses of Hull, cargo and freight
insurance and their importance. General average, Characteristics of General
Average Particular average P&I clubs, Underwriting claims. Insurance
companies in India. Reinsurance
• MODULE-4 8 HOURS
• Chartering: Terms used in commercial shipping- Bill of lading and types. Clauses
in Bill of lading. Issues with Bill of lading. Seaway bill Freight and type of freight,
Lein, Chartering of vessel and types of charter. In Charter, Out
charter. Charter terminology – types of days in a Charter party. Charter party
clauses. Fixation of vessel Voyage estimate
• MODULE-5 8 HOURS
• Maritime Law:
• International laws of the sea. Limitation of shipowners liability. Carriage of
Goods by Sea Act 1971. York – Antwerp rules Maritime safety and security –
Employment of seafarers, ILO, MLC convention Maritime Business
contracts. Maritime disputes and set tlements, Arbitration .Maritime Jurisdictions
( Admiralty courts) and Judicial process in India
 Prehistory
 Sea transportation dates back to 10000 years ago to
the Neolithic Period.
 Though these crafts cannot be classi ed as ships they
marked the beginning of transport of goods by sea.
 Animal skins and woven fabrics were used as sails and
the birth of the early SHIPS.
 The birth of these crafts allowed men the opportunity
to explore distant lands separated by sea and the
migration
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of mankind.
 Origin of International Sea Trade
 Has been in vogue since 3000 BC – Egyptian coastal and river Ships
 1200 BC Egyptian ships have believed to have ventured upto Sumatra
for trading.
 15th Century China had established major trade expeditions including
venturing upto East Africa.
 International Trade picked up momentum with European Colonial powers
such as Spain, Portugal, French and British established trade networks
through sea and the colonization of the territorries they landed in.
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 Types Of Ships
 Cargo ships/freighters can be divided into four groups, according to the type
of cargo they carry.
 General Cargo Vessels - carry packaged items like chemicals, foods,
furniture, machinery, motor vehicles, footwear, garments, etc.
 Dry-bulk Carriers - carry coal, grain, ore and other similar products in loose
form.
 Tankers - carry petroleum products or other liquid cargo.
 Multipurpose Vessels - as the name suggests, carry di erent classes of
cargo – e.g. liquid and general cargo – at the same time
 Container vessels – Vessels that carry containers.
 RO-RO Vessels –that can carry cargoes which can be rolled on and o the
vessel.
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 Gas Carriers - ships that are specially designed to transport gas
 General Cargo Ships
 General cargo vessels carry packaged items like chemicals, foods, furniture, machinery,
motor- and military vehicles, footwear, garments, etc
 A ship with one or more decks, having ability to carry a variety of commodities in di erent
forms such as boxed, palletized, refrigerated, and with the possibility to accommodate
bulk materials such as grain. Generally geared

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 Dry Bulk Carriers
• A bulk carrier is primarily used in carrying unpackaged bulk
cargo items such as metal ores, coal, cement, grains and
other similar cargo.
• Bulk Carrier Sizes
Small Handy - carriers of 20,000 long tons deadweight (DWT)-28,000 DWT
 Handy - carriers of 28,000-40,000 DWT.
 Handymax, carriers of 40,000-50,000 DWT.
 Supramax (50,000 to 60,000 DWT).
 Panamax, the largest size that can traverse the Panama Canal (generally: vessels with
a width smaller than 32.2 m).
 Capesize, vessels larger than Panamax and Post-Panamax, and must traverse the
Cape of Good Hope and Cape Horn to travel between oceans.
 Chinamax, carriers of 380,000-400,000 DWT with main dimensions limited by port
infrastructure in China
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 Liquid Bulk Carriers - Tankers
• A merchant vessel designed to transport liquids or gases in bulk. Major
types of tankship include the oil tanker, the chemical tanker,
• Second half of 19tCentury tanker (tankship) concept was introduced.
• Tankers can range in size of capacity from several hundred tons, which
th

includes vessels for servicing small harbours and coastal set tlements, to
several hundred thousand tons, for long-range haulage. Besides ocean-
or seagoing tankers there are also specialized inland-waterway tankers
which operate on rivers and canals with an average cargo capacity up to
some thousand tons. A wide range of products are carried by tankers,
including:
• hydrocarbon products such as crude oil and producrts
• chemicals, such as ammonia, chlorine, and styrene monomer
• fresh water, wine molasses
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Vegetable oils.
 Tanker Sizes and their Classi cation
• 10,000–24,999 - Small tanker
• 25,000–34,999 - Intermediate tanker
• 35,000–44,999 - Medium Range 1
(MR1)
• 45,000–54,999 -Medium Range 2
(MR2)
• 55,000–79,999 - Large Range 1 (LR1)
• 80,000–159,999 - Large Range 2
(LR2)
• 160,000–319,999 - Very Large Crude
Carrier (VLCC)
• 320,000–549,999- Ultra Large Crude
Carrier (ULCC)
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 Container ships
• Revolutionized sea transportation of freight. Commenced in 1955. First container
ship Ideal X - New Jersey and Houston – Malcolm Mclean -58 containers.
• Other ships referred by the weight of cargo they can carry. Container ships -
number of TEU they can carry.
• Container vessels eliminate the individual hatches, holds and dividers of the
traditional general cargo vessels.
• Hull of a typical container ship is a huge warehouse divided into cells by vertical
guide rails- cells are designed to hold cargo in pre-packed units – containers.
• Shipping containers are usually made of steel, materials like aluminium, berglass
or plywood are also used.
• Designed to be entirely transferred to and from smaller coastal carriers, trains,
trucks and/or semi-trailers (and so are carried by di erent modes of transport
during
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•
 Containe
r Ship
View
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 RO RO Vessels
 Roll-on/roll-o (RORO or ro-ro) ships are vessels designed to
carry wheeled cargo, such as cars, trucks, semi-trailer trucks,
trailers, and railroad cars, that are driven on and o the ship on
their own wheels or using a platform vehicle, such as a self-
propelled modular transporter.
 RORO vessels have either built-in or shore-based ramps that allow
the cargo to be e ciently rolled on and o the vessel when in port.
 First cargo ships specially ed for the transport of large quantities
of cars came into service in the early sixties.
 Today’s pure car carriers, 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.
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 Ro RO Vesssel Pro le
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 View from
Stern
Ramp

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 Gas Carriers
• A gas carrier (or gas tanker)- ship designed to transport LPG, LNG or
lique ed chemical gases in bulk.
• Gas Carrier – Types
• Fully pressurised LPG carriers - f it ted with a number of horizontal cylindrical
or spherical cargo tanks and have capacities up to 6,000 m3. A cost-
e ective, simple way of moving LPG to and from smaller gas terminals.
• Semi-pressurised tankers - development of metals suitable for containment
of liquef ied gases at low temperatures, semi-pressurised tankers were
developed. By installing a reliquefaction plant, insulating the cargo tanks and
making use of special steels, the thickness of the pressure vessels, and
hence there weight, could be reduced. 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.
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• Fully refrigerated tankers - built to carry lique ed gases at low temperature and
atmospheric pressure between terminals equipped with fully refrigerated storage
tanks.
• Prismatic-shaped cargo tanks fabricated from 3.5% nickel steel, allowing the
carriage of cargoes at temperatures as low as –48°C, marginally below the
boiling point of pure propane. Prismatic tanks enable the tanker’s cargo carrying
capacity to be maximised, thus making the fully refrigerated tanker highly
suitable for carrying large volumes of cargo such as LPG, ammonia and vinyl
chloride over long distances.
• Lique ed natural gas (LNG) carriers LNG is carried at its boiling point, being
–162°C. LNG containment systems have developed considerably. LNG carriers
are ed with independent cargo tanks or with membrane tanks.
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 • Project cargo- used to broadly describe the national or international
Project transportation of large, heavy, high value or a critical (to the project
they are intended for) pieces of equipment.
Cargo Ships • Referred to as Heavy lift , includes shipments made of various
components which need disassembly for shipment and reassembly
after2018deli very.
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• Heavy-lift/Project Cargo Vessels:
These, mostly purpose built, vessels specialise in the transport of extremely
heavy or bulky objects such as other ships and large industrial components.
Some heavy-lift vessels are equipped with high capacity cranes to load at ports
without a heavy-lift capability.
• Semi submersible - allows a cargo to be oated into position before the heavy-
lift vessel de-ballasts to lift the cargo out of the water.
• Used to transport o shore platforms from their construction site to the drilling
site.
• Common project cargoes are wind turbine blades and towers, quay cranes and
industrial machinery.
• 'Jack up' vessels -able to put down 'legs' to lift themselves out of the water.
Commonly used by vessels installing o shore wind farms where stability is
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 Heavy Lift vessel with Gear

• Semi Submersible Vessel

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 • LOA (Length Overall): The
extreme length of a ship, from
fore to aft.
• Beam: The width of a ship. It is
important to establish the
'extreme' length and breadth of a
vessel, to ensure that passages
in con ned waterways are
possible and that it is physically
feasible for a vessel to enter
certain ports.
• Draft: The depth of a ship in the
water. (A oating ship will be
deeper in freshwater than in salt.
Vessel Dimension and Parts The di erence is shown on the
Deadweight Scale as that
vessel's freshwater allowance).
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• Air Draft: distance from a vessel's
surrounding waterline to the highest
xed point on the ship. This distance is
to be known if the ship has to pass
under bridges or xed equipment
• Distance from a vessel's surrounding
waterline to the top of her hatch
coamings (an indication of whether a
particular vessel can manoeuvre under
shore cargo-handling equipment).
• Freeboard is the distance measured
from the waterline to the upper edge of
the deck plating at side of the
freeboard deck amidships.
• Under keel clearance is a vertical
distance between the deepest
underwater point of the ship's hull and
the water area bo om or ground.
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Modern shipping practice" refers to the contemporary methods,
technologies, regulations, and practices employed in the maritime
industry to facilitate the ef ficient and safe transportation of goods
and passengers by sea.
 It encompasses various aspects of maritime operations, including
vessel design and construction, navigation and seamanship, cargo
handling and stowage, safety and security, environmental protection,
regulatory compliance, and business management.
 Modern shipping practice ref le cts the dynamic nature of the
maritime sector, driven by advancements in technology, changes in
global trade pat te rns, evolving regulatory frameworks, and the
adoption of best practices to enhance ef ficiency, sustainability, and
• care of cargo against damage
• Protecting cargo against damage is a critical aspect of maritime
industry operations, given the inherent risks associated with sea
transportation.
• Safeguarding cargo ensures that it arrives at its destination in the
intended condition, thereby maintaining customer satisfaction,
preserving the value of goods, and preventing f inancial losses for
shippers, carriers, and other stakeholders.
• In this essay, we will explore the various measures and practices
employed to care for cargo against damage in the maritime
industry.
• What are the most common causes and types of cargo damage?
• There are ve main causes and types of cargo damage:
• Physical damage – This is when cargo is damaged due to dropping, breakage,
improper packing, or bumps during transit etc.
• Wet damage – As the name suggests, this is when cargo is damaged by water
(e.g. exposure to rain).
• Reefer damage – This refers to cargo damage caused by reefer equipment or
mishandling.
• Contamination damage – This is when cargo is damaged due to
contamination (e.g. unclean truck conditions or mixed cargo).
• Infestation damage – This refers to any cargo damaged by infestation (e.g.
pests, rodents).
• - Preventive measures against physical damage
• 1. Use the correct type of container.. For example, when packing heavy
• cargo, you need to ensure that the container used can carry the weight of
• the cargo..
• This is easily identi ed by checking and following the markings on a
• container, one of which is the weight allowance displayed on the CSC
• plate on the container..
• 2. Make sure that the lashing and dunnage material and methods are
• su cient to restrict the movement of the cargo within the container
• 3. Ensure that you follow the SOLAS VGM
• requirements at all times when packing,
• transporting and loading container
• A few other important factors to consider when packing your cargo
is to
• • plan the stowage of the cargo in the container
• • ensure that all container weight limitations of the container are met
as per the markings on the container
• • distribute the weight equally inside the container taking care not to
exceed
• permissible weight concentrations per square foot of deck
• • avoid concentrating heavy weights at one side or one end
• • stow heaviest items on the bo om for stability
• • box, crate or place on cradle the heavy items
• • ensure that incompatible cargo is not mixed in the container (like
• Preventive measures against wet damage
• As mentioned above, it is imperative that you are aware not just of the
• vulnerability of your cargo, but also the physical route that the cargo
• takes from origin to destination..
• For example, if you are loading cargo in cartons, or iron/steel cargo, or
• co on or other cargo that is susceptible to wet damage, it may be
• prudent for you to take cognizance of the route of the cargo and take
• proper precautions..
Climatic conditions (temperature and humidity) can a ect the cargo
• inside containers especially if the ship is moving from one hemisphere to
• the other..
• Corrosion and oxidation a ect metal products speci cally while
•
• While you might not be able to do much about the route the
cargo takes,or how long it takes, or the weather conditions
along the route, what you can do is take appropriate mitigation
steps to avoid condensation and moisture inside the container.
• These steps could include using antihumidity materials or you
could use “ventilated containers” with side vents
• One should also ensure that the doors of the containers seal
properly and the rubber seal gaskets are present and in good
condition
• Preventive measures against contamination damage
• If you are loading liquid bulk cargo in an ISO tank container, you should insist on a
“tank cleaning certi cate” from the tank operator which tells you the last date of
the cleaning, what type of cleaning etc..
• Once you have this information, you can satisfy yourself whether this speci c
tank will be suitable for your cargo or not. You can identify whether your cargo
may or may not get contaminated when using this tank container..
• It is also recommended to have a professional liquid bulk cargo surveyor to
inspect the tank or be present during loading operations to ensure that there are
no issues.
• Tank operators keep their food grade tank eet separate to their other tanks like
chemical and gas tanks.. All food tanks might not be compatible with your speci c
food cargo and similarly, not all chemical tanks may be compatible with or be
suitable for your speci c chemical cargo..
• Therefore it is imperative that you provide ALL information about your cargo
• Cargo to be loaded may react with previous cargo or cargo in adjacent
compartment through substance mixture or temperature impact, even if
the equipment is stated to be clean and ready to serve..
• Such mixture may damage the product an equipment, or cause severen
reactive incident due to contamination..
• You may be loading solid cargo that is susceptible to odour and rust
• contamination – like nuts, tobacco, clothing, fabrics etc in a normal ISO
• container..
• In such cases, you need to request the shipping line for a food grade or A
grade container which is “prepared” speci cally for the carriage of your
cargo, usually at a cost..
• - Preventive measures against infestation damage
• Advise shipping line “speci cally” about the type of cargo being shipped
• and if it is food cargo, then you must request for a food grade container
• for packing
• Ensure that the warehouse that your cargo is stored in is clean and free
• of pests and rodents that may cause infestation
• Dunnage made from raw and unprocessed wood may present a high risk
• of introduction/spread of quarantine pests and therefore many countries
• require wooden dunnage and pallets to be fumigated before it can be
• exported..
• stowage of cargo and cargo information
• Stowage of cargo is a critical aspect of maritime operations. It
involves the strategic arrangement, securing, and distribution of
cargo within a vessel to maintain stability, prevent shifting, and
minimize damage during transit.
• Stowage is the process of packing or arranging items in a specif ic
way to optimize space utilization. In the shipping industry, stowage
refers to the arrangement of cargo on board a ship to ensure that it
is secure and does not move around during transportation.
• The stowage factor indicates how many cubic metres of space one
• Importance of Proper Cargo Stowage
• Proper cargo stowage is crucial for a smooth sailing (or f lying)
experience. Imagine loading a ship or an aircraft haphazardly, with
heavy items on top of delicate ones, or with minimal regard for
weight distribution. It’s like a recipe for disaster!
• Proper stowage ensures not only the safety of the cargo but also
the stability of the vessel and the ef fic iency of the entire
transportation process. So, it’s safe to say that proper cargo
stowage is the unsung hero of logistics.
• Cargo information
• The master should be provided with suf ficient information on any
heavy cargo of fered for shipment so that he can properly plan its
stowage and securing; the information should at least include the
following:
• .1 gross mass;
• .2 principal dimensions with drawings or pictorial descriptions, if
possible;
• .3 location of the centre of gravity;
• .4 bedding areas and particular bedding precautions if applicable;
• .5 lifting points or slinging positions; and
• General Principles
• All cargoes should be stowed and secured in such a way that the
ship and persons on board are not put at risk.
• The safe stowage and securing of cargoes depend on proper
planning, execution and supervision.
• Personnel commissioned to tasks of cargo stowage and securing
should be properly quali ed and experienced.
• Personnel planning and supervising the stowage and securing of
cargo should have a sound practical knowledge of the application
and content of the Cargo Securing Manual.
• In all cases, improper stowage and securing of cargo will be
potentially hazardous to the securing of other cargoes and to the
• Procedures for E ective Stowage of Cargo
• Planning and Designing the Stowage
• Before you start playing cargo Tetris, it’s important to have a game plan. Planning
and designing the stowage involves considering factors such as the cargo’s
nature, weight, and dimensions, as well as the vessel’s limitations. It’s like creating
a blueprint for a successful stowage operation.

• Allocating Space and Weight Distribution

• Just like your favorite buf fet, space, and weight distribution are all about
maximizing ef ficiency. You want to make sure that every nook and cranny is
utilized. That the weight has evenly distribution to maintain stability. It’s like
f inding the perfect balance between f illing up your plate and ensuring you don’t
accidentally topple over someone’s drink.
• Di erent Types of Stowage Methods
• Bulk Stowage
• Bulk stowage is like throwing everything into a giant bag and hoping for the
best. It’s commonly used for non-containerized cargo like oil, grain, or ores.
Individual packaging usually isn’t necessary. It’s the ultimate “organized chaos”
where cargo is poured or dumped into a designated space, creating a solid
mass.
• Container Stowage
• Container stowage is the superstar of modern logistics. It’s like having your
very own LEGO set, with standardized containers that neatly t together. Each
container acts as its own li le world, housing a variety of goods. It’s an
e cient method that allows for easy handling, stacking, and securing of cargo.
• Securing and Lashing Requirements
• Once your cargo is snugly in place, it’s time to secure and lash it
down. It’s like wrapping a present to ensure it doesn’t unravel
when you shake it. Securing and lashing requirements involve
using various tools and techniques to prevent your cargo from
becoming a chaotic mess on rough seas or turbulent f lights. So,
grab your ropes, straps, and chains, and get ready to tie down
your cargo like a cowboy taming a wild stallion.
• What Is A Cargo Stowage Factor?
• The stowage factor is the coe cient that indicates how
much space is needed to load a unit mass onboard the
ship or loading area in a port or at a warehouse. In the
imperial system of measurements, the coe cient
displays cubic feet for one long ton, and in the metric
system, the space in cubic meters for one metric ton.
• h ps://maritimepage.com/cargo-stowage-factor-use-
calculate/
• Knowing the stowage factor allows the cargo o cer
onboard the vessel, operator, and broker to calculate
space in the ship’s cargo hold used by the cargo parcel or
the minimum required volume of the cargo hold required
for the shipment.
• Despite the importance of the stowage factor, for most
types of cargo, it remains an estimated value and should
be used with caution, unless it is con rmed by production
speci cation or historical data from the exact shipper.
• A good example of the deviation of the stowage factor will
be all kinds of grains that strongly depend on the humidity,
which can be calculated to average, but practically varies
depending on the number, time, and place of sampling.
• If the stowage factor is precisely calculated or conf irmed
by the laboratory, the shape of the cargo hold, the number
of bulkheads, and frames, and the way of loading the
cargo by shippers or stevedores can have an impact on
the nal stowage factor or volume used by cargo.
• Cargo Stowage Factor Formula In Cubic Meters.
• If you are using a metric system, the formula is 1,000
kilograms times the volume in cubic meters divided by
the cargo weight in kilograms.
• It is important to note that the stowage factor can be
used as a combination of cubic feet per metric ton and
therefore you might need to convert the stowage factor
to corresponding measurements.
• 1 Cubic meter equals 35.3147
Cubic feet.
• If you need to convert the
known stowage factor from
cubic feet to cubic meters
divide the storage factor by
35.3147.
• For the opposite calculation
from cubic meters to cubic
feet multiply by 35.3147.
• Concept of Multimodal Transport
• • What is Multimodal Transport de nition
• “A transport system operated by One carrier with more than one
mode of transport under the control or ownership of One Operator.”
• “International multimodal transport’ means the carriage of
goods by at least two di erent modes of transport on the
basis of a multimodal transport contract from a place in one country at
which the goods are taken in charge by the multimodal transport
operator to a place designated for delivery situated in a dif ferent
country”
• Advantage of Multimodal Transport
• • Reduce Complication of Liability of Intermodal
Transport
• • Dealing with one operator for contract of carriage
• • Fix the limitation of liability of operator
• • One single contract of carriage for entire routes
• • Door-to-Door Deliverable
• • National Wealth as Hub of Transit
• Advantage of Multimodal Transport
• • Reduction in the costs and time for coordination and operation of
logistics.
• • Increased monitoring of shipments from stage to stage.
• • There is only one company in charge of meeting the shipment
• deadline; therefore, there is be er control on management and less
risk of merchandise theft or loss while responsibility lies on just one
entity.
• • Scheduling routes, costs, sta , and logistics becomes easier
• Disadvantage of Multimodal Transport
• • The merchandise may encounter legal and operational
limitations when international standards are applied.
• • For safety reasons, inspections in terminals are frequent,
which limits operations
• Safety concerns
• Disrupted service
• In ated shipping cost
• Lack of e ciency and sustainability
• Considerable expense due to transhipment and
• Who is Multimodal Transport Operator
• “Any person who on his own behalf or through another
person acting on his behalf concludes a multimodal
transport contract and who acts as a principal, not as an
agent or on behalf of the consignor or of the carriers
participating in the multimodal transport operations, and
who assumes responsibility for the performance of the
contract.”
• TYPES OF SHIPPING OPERATIONS
• There are various ways in which we can classify maritime operations.
Various shipping companies have their own methods of classifying
their shipping operations. Hence we hear about coastal shipping,
short-sea shipping and deepsea shipping. Additionally, we can
distinguish between the transport of cargoes and the movement of
passengers. A few examples here will clarify how these operations
are classi ed. One major British company has classi ed its shipping
operations as follows:
• (a) General Cargo Division
• (b) Bulk Shipping Division
• (c) Passenger Division
• In India, a major shipping carries out its operations under
the following divisions:
• (a) Liner Division
• (b) Cruise & Passenger Services
• (c) Bulk Carriers & Tankers Division
• A North-European vessel operator has made the
following operating divisions:
• (a) Short Sea Ferries
• (6) Cruise Shipping Division
• What is clearly evident from the above examples is that
shipping operations tend to be divided by the type of
ship being used in the operation of the service. Hence we
can say that shipping operations may be divided into the
following four principal categories:-
• 1. Tramp (or irregular) Services
• 2. Liner (or regular) Shipping
• 3. Specialised (or industrial) Shipping
• 4. Passenger Shipping (liner, cruise or ferries)
• EVOLUTION OF THE TRAMP
• The name tramp designates a ship that moves on routes
wherever cargo is available. It does not follow any xed
routes and is unable to advertise its future schedules with
any certainty. The role of tramp shipping had developed
predominantly due to two major reasons:
• (a) Technicals reasons - which made ships dependent
upon the forces of nature.
• (b) Commercial reasons - merchants had to sail on the
ships resulting in irregular transactions.
• The word "tramp" therefore describes a ship which can transport any
cargo, general or bulk, over any trade route wherever such cargo is
available.
• Hence the old and classical notion of tramping was based upon the
following:-
• (a) A tramp ship was not a ached to any de nite trade route or meant for
any particular cargo.
• (b) It was generally a multipurpose ship which could carry either dry,
general cargo or dry bulk cargo.
• (c) The ships were usually in the size of 5000-15000 dwt for deepsea
trades but smaller for coastal or short-sea trades.
• (d) A contract was usually concluded prior to proceeding on a
voyage.(The earliest contract for such a voyage is a document lying in the
• Today, the tramp still does not operate on a f ixed sailing
schedule. It merely trades in all parts of the world and calls
at a port depending upon the inducement of cargo.
• It primarily moves bulk cargoes e.g. coal, grain, timber,
sugar, ore, fertilizers, minerals, etc.
• Usually these parcels are complete shiploads and may be
seasonal. Tramp shipping companies are usually smaller
than the liner companies.Tramp vessels are not specialised
• EVOLUTION OF THE LINER
• Historically, the liner was a general cargo ship. It was a specially
designed ship which was planned to cope with the needs of the
route which it was serving. It was not designed for carrying bulk
cargoes.
• This type of vessel was divided into holds having 2 or 3 divisions
(between decks) so that a large variety of goods could be
successfully handled. It operated usually to one particular port or
country and sailed on longer routes.
• Britain's domination of the oceanic routes was based on the cargo
liners which were the pride of the shipping companies which
• Liners usually have the following characteristics:-
• 1.Liners mostly carry general cargo.
• 2. The types of ships used in liner trade are either general
cargo ships, container ships, ro-ro ships, etc.
• 3. They operate at xed rates and advertised schedules.
• 4. Freight rates for various commodities are xed. Notices
have to be given in order to revise rates upward
• 5. The vessel operators have to bear all operating costs.
• 6. Contract: Bill of lading.
• Hence the term "liner shipping" is usually taken to mean a form of ship
operations over regular trade routes between the same ports and
usually following the same itinerary indicated in a published sailing
schedule. The liner continues to operate between these ports
independent of the load factor of the ships employed.
• The original form of liner shipping existed in the eighteenth century
when regular plying of sailing ships existed between ports of northem
Europe. However, modern liner shipping appeared only in the f irst half
of the nineteenth century. There were two reasons for this:
• 1. In order to provide a regular service between two distant ports one
had to have a transport that was independent of the vagaries of the
weather and other forces of nature.
• The second reason for the appearance of liner shipping was the
• PASSENGER SERVICE
• This is a separate type of ship operation as this involves
the transportation of passengers from one place to
another. The passenger ship is quite distinct from a cargo
ship, both from the constructional point of view and
equipment. Any ship that has more than 12 berths for
passengers would be termed as a passenger ship.
• Passenger ships may be classed into the following types
• 1. Cruise ships
• 2. Ferries
 Ship Owner
• A shipowner is the owner of a merchant vessel (commercial ship).
• A shipowner is someone who equips and exploits a ship, usually
for delivering cargo at a certain freight rate, either as a per
freight rate (given price for the transport of a certain cargo
between two given ports) or based on hire (a rate per day).
• Shipowners operate the vessel by employing a licensed crew
rather than take charge of the vessel in person.
• Shipowner is organized through a company, but also individuals,
and investment banks are present day ship owners.
8/11/2024
• The legal title of ownership of the vessel is the one that appears
on the ship's registration documents.
• It may be an Owner/Manager or a wholly-owned subsidiary in a
larger shipping group, or a bank or one-ship company vehicle
set up by the bank, or of course, it may be a “brass-plate”
company created on paper to legally own a ship and possibly to
limit liability for the "real" owners and/or bene t from o -shore
tax laws.
• It may also be a legal-requirement of the ag-state with whom
the ship is registered for the legal owner to be a company
registered in that country.
8/11/2024 2018 - 2020 3rd Sem
 Types of Ship Owning Companies
• Similar to most businesses there are many di erent types of
business models of a ship owning company and each has its
own distinctive organizational structure, commercial aims and
strategic objectives.
 Family run companies ( typical example - Greek families)
 Shipping Corporates – ( Major Container Carriers)
 A division of a large company with interests in various industries
( e.g Shell, BP etc)
 Private Limited Company – Majority stock held by Promoters but
a portion of the shares are still public.
 Financial Institutions/Investors

8/11/2024
 Ship Manager
• Ship manager/Commercial Manager - The company designated by
the ship owner or charterer to be responsible for the day to day
commercial running of the ship and the best contact for the ship
regarding commercial ma ers.
• Including post xture responsibilities, such as laytime, demurrage,
insurance and charter clauses.
• This company may be an owner related company, or a third-party
manager, whose purpose is primarily the management of ships for
their ship-owning clients.
• Many ships today are owned by banks or nance/leasing
companies who have no operational involvement whatever. In
practice
8/11/2024 the lessee companies, referred to as ‘Disponent Owners’ or
• Technical Manager - The company designated by the ship owner or operator or
ship manager to be specif ically responsible for the technical operation and
technical super intendancy of a ship.
• This company may also be responsible for purchases regarding the f leet, such as
repairs, spares, re-engining, surveys, dry-docking, etc. In the majority of cases the
DOC Company will also be responsible for the Technical Management of the ship.
• Operator - The company responsible for the commercial decisions concerning the
employment of a ship and therefore who decides how and where that asset is
employed.
• The direct benef iciary of the prof its from the operations of the ship, this company
may also be responsible for purchasing decisions on bunkers and port services.
A medium to long-term time or bareboat charterer is considered to be the
operator of the ship. Companies heading operator pools are Operators of the
ships in the pool.
8/11/2024
8/11/2024
 Various Departments & Functions
• Network - Head o ce, o ces abroad, the ships and a network of business
connections such as shipbrokers, agents, stevedores, etc.
• Legal Department - Board ma ers, contracts for new buildings, company law,
national/international taxes, purchase/sale of ships.
• Technical and Marine Departments- eet management, ship operations, manning,
spares and stores, repair, maintenance, dockings, classi cation and statutory
compliance requirements of Class, Flag state and port state. Monitoring of vessels
performance etc.
• Marine Insurance and Claims Department - ship insurance, claims relating to
damage of the cargo are handled in this department.
• Chartering/Operations Department- employment for the vessels ,responsible for
their operation. For liner vessels coordinating with partners, slot share
arrangements, scheduling, vessel operations, marketing.
• Miscellaneous – Depending on the size of the ship owning company they could
have their own eet personnel/crewing, travelling department, agency
department etc.
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 Ship Management Company Org. Chart

8/11/20
 Org. Chart of a Merchant Vessel
8/11/2024 2018 - 2020 3rd Sem
SHIPPING ORGANISATION CHART
 Ships Personnel Responsibility
• Captain/Master - Ship's highest responsible o cer - acts on behalf of the ship's
owner. Legally responsible for the day-to-day a airs of the ship as he/she is in
command. It is his responsibility to ensure that all the departments under him
perform legally to the requirements of the ship's owner. Represents the owner
and called the Master.
• Deck department
• Chief O cer/Chief mate -- head of the deck department on a merchant vessel -
second-in-command after the ship's Master.
• Primary responsibilities - vessel's cargo operations, its stability, and supervising
the deck crew- responsible for the safety and security of the ship, as well as the
welfare of the crew on board- assumes command of the whole ship in the
absence or incapacitation of the master.
• 8/11/2024
Second o cer/Second mate - is a quali ed OICNW watch stander, directing the
bridge team and navigating the ship.- duty is navigational, includes updating
• Third o cer/Third mate - Navigational Watch keeping o cer, the
Third mate directs the bridge team, maneuvering the vessel,
keeping it safe and on track. Incharge of Life saving and Fire
ghting equipment onboard.
• Deck cadet/O cer cadet – Trainee deck o cer who gets an hands
on experience and after serving his sea time and passing the
various Competency exams rises up the hierarchy of deck o cers.
• Deck ratings
• Boatswain – Incharge of deck crew, works under the instructions of
the Chief mate and supervises the work of the deck crew.
• Able seaman/AB -An Able seaman works under the Boatswain,
completing tasks such as working mooring lines, operating deck
gear, standing anchor details, and working cargo. The AB also
stands a navigational watch, generally as a lookout or helmsman.
• 8/11/2024
Ordinary seaman/OS – Carries out the general deck maintainence.
 Engineering department
• The engineers are also called technical o cers. They are responsible for
keeping the ship and the machinery running, including engines, generators,
boilers, pumps and the electrical equipment
• Chief engineer -The chief engineer on a merchant vessel is the o cial title
of someone quali ed to oversee the engine department.
• Responsible for all operations and maintenance that have to do with all
machinery and equipment throughout the ship. He may be paid on par
with the captain, although he is never responsible for the action of ship.
• Second engineer- The second engineer or rst assistant engineer is the
o cer responsible for supervising the daily maintenance and operation of
the engine department. He or she reports directly to the chief engineer.
• Third engineer -The Second Assistant is usually in charge of boilers, fuel,
auxiliary engines, condensate and feed systems.
8/11/2024
• Fourth engineer -The fourth engineer - Responsible for electrical, sewage treatment, lube oil,
bilge, and oily water separation systems. Depending on usage, this person is called "The Third
", or "The Fourth", and usually stands a watch.
• Motorman -The Motorman is an unlicensed member of the engine department, with more
experience than an Oiler.
• Oiler - The Oiler is an unlicensed member of the engine department, with more experience
than a Wiper.
• Wiper-The Wiper is an unlicensed member of the engine department, usually with the least
experience.
• Electro-technical o cer- is in charge of all the electrical systems on the ship. The electrical
engineer is one of the most vital positions in the technical hierarchy of a ship and engineer is
responsible for their assigned work under the chief engineer’s instructions.
• Catering Department – Headed by the chief Steward with a team of Cooks and Stewards, who
is responsible for procurement of provisions, food, menus and the general house keeping of
the ships accomodation.
8/11/2024
• An Ownership Shipping Company is the entity that
purchased the vessel and is in charge of it. It performs
tasks like regular maintenance, timely inspections, and
onboarding of crew.
• Ship owners own merchant ships which are equipped
and exploited for cargo delivering for a price. Rates
can be calculated as either per freight or per day.
While technical management is usually performed by
the ship owner, outsourcing is viable.
• MODULE 2
• AGENT AND AGENCY
Intermediaries play important roles in conf iguring, brokering, and facilitating
transition ef forts and operate in dif ferent parts of socio-technical systems. Their
node position between transport and energy systems makes port authorities a
potentially crucial intermediary in transitioning the many dif ferent sectors that
intersect in ports.
THE ROLE, RESPONSIBILITIES
In trade, an intermediary middleman acts as a conduit for goods or services of fered
AND OBLIGATIONS OF THE SHIP
by a supplier to a consumer. Typically the intermediary of fers some added value to
the transaction that may not be possible by direct trading. Examples of
AGENT IN THE INTERNATIONAL
intermediaries are wholesalers and resellers.
TRANSPORT CHAIN
Common usage includes the insurance and f inancial services industries where e.g.
mortgage brokers, insurance brokers, and f inancial advisers of fer intermediation
services in the supply of f inancial products such as mortgage loans, insurance, and
investment products. In relation to energy supplies, third party intermediaries
What are Stevedores in Shipping?
Ships carry a wide array of goods ranging from foodstuf f, machinery,
vehicles, oil, gas, and dry goods. At the port, the goods are unloaded
from one vessel to the warehouse or from one warehouse to another
that is ready for transportation to the next destinations or put in
warehouses as they await repackaging, customs clearance, and
distribution.
Stevedores are the personnel at the port in charge of the movement of
cargo within and from port to port. A stevedore loads cargo to a ship
before it leaves the port, unloads cargo from a vessel that arrived at the
You need technical skills in operating di erent machines and equipment to do
the stevedore job. Some cargo is heavy and requires equipment such as power
cranes to transport. Other types of equipment like wheel-loaders, hose and
shorelines, conveyor belts, and trucks help in the transport of general cargoes,
liquid, gas, and dry bulk cargoes, and knowledge on how to operate them is
crucial for every stevedore.
What Are the Functions of Stevedores in a Port?
Sorting and storage of containers. Various types of cargo arrive at the port
from di erent parts of the world. Some contain perishable goods in reefer
containers like fresh fruits and vegetables, others dry goods like clothes and
heavy machinery and vehicles are loaded into dry containers or even on at
racks or open-top containers.
Driving transport vehicles. Most of the cargo at the port comes in
large quantities and can only be transported by vehicles. A stevedore
is skilled in driving vehicles that aid in transportation such as trucks,
tractors, cranes, and winches, depending on the type of the goods
and storage requirements.
Pallet fastening and lashing. While loading vessels, stevedores ensure
containers are stable by supporting them using pallets. For the pallets
to provide f irm support, they are lashed and fastened before piling
goods on them.
Carrying out safety checks on equipment. Equipment used for
transportation in ports such as trucks and cranes should be in good
 AGENTS AND AGENCIES
A ship agent is any person or company that carries out the functions of
an agent (see the following slide), irrespective of whether they are in
business as a ship agent, or they perform such functions as an adjunct
to, or in conjunction with, other activities such as shipowning or
operating, providing cargo handling or similar.
FONASBA makes no distinction between those providing agency
services as their main business activity or as a part of a portfolio of
marine related services.
Acting as the local representative of the principal, the agent
provides local knowledge and expertise and ensures that the
principal’s requirements are performed with the utmost ef ficiency
and despatch.
Accordingly the agent requires to be fully conversant with all the
appropriate regulations and requirements relating to the port, area
or sector in which they operate, to have a wide range of relevant
contacts and be suf ficiently well established and founded to be
able to provide the level of service and support the principal
needs.
The ship agent, as enshrined by international maritime convention, is primarily
the servant of the master and owners of the vessel, the “principal”.
In practice however, the agent can act for any of the parties involved in the
voyage and in any capacity as agreed between the agent and his principal.
MAIN CATEGORIES OF SHIP AGENT:
PORT AGENT: organises and coordinates the port call, acting on behalf of
the owner or operator of the vessel.
CARGO AGENT: solicits cargo on behalf of the owner, or operator, usually
within a defined geographical area OWNERS/CHARTERERS AGENT: acts
for another party that has an interest in the port call. The specif ic duties
undertaken vary depending on the relationship between the parties
OTHERS: as the principal may decide or require
THE PORT AGENT
The port agent is central to all trades and is responsible for organising,
overseeing and coordinating all aspects of the port call, from booking
berth allocations and services ahead of the vessel’s arrival to finalising
the accounts and other paperwork after the vessel has sailed.
Functioning as the de facto port single window, the agent is the conduit
for all information exchanged between the vessel and the shore.
 The Role of the Port Agent in the Port
Call
Tugs/ Stevedores Other Port Shippers,
Pilots / Terminals Services Receivers,
Statutory Forwarding
Authorities Agents,
PORT NVOCC’s
Surface
Transport/
AGENT Other
Contractors
SSS/Road/Ra / Social
il Services
The Master and
Owners/Operators
THE PORT AGENT/contd..
In order to operate ef fectively, the port agent is required to be fully
conversant with the safety, commercial and statutory requirements and
regulations applicable to the port and ensure the vessel complies fully,
in to ensure that no delays are caused as a result of failure to meet its
obligations.
The port agent will also require wide ranging and ef fective contacts
within the regulators, port operators and service providers in order to
ensure that the actions taken, and information provided, are correct
and appropriate.
THE PORT AGENT/ contd…
When developing its unique Port Procedures Survey, FONASBA
indentif ied more than 130 separate operations that a port agent may be
required to undertake. Whilst it is unlikely that an agent will have to carry
out all 130+ operations in a single port call, the extent of the duties and
disciplines covered is indicative of the breadth of knowledge and
experience that the port agent is required to have and, importantly, to
keep up to date.
• Operating primarily in the liner and break bulk trades, the
cargo (or liner)THEagent
CARGO
is responsible for securing cargo for
AGENTThis requires the agent to be in
the line or ship operator.
regular contact with local shippers and be ready to provide
information on vessel schedules, competitive rates and
conditions of carriage. The agent may also of fer or provide
inland transportation, customs clearance and other related
services.
•than
Theone
cargo agent
principal may
but inbe independent
many cases theand represent
agent is tied more
to, or
is often a subsidiary of, one specif ic principal.
THE OWNERS/CHARTERERS AGENT
Depending on the circumstances of the port call,
there may be more than one agent at tending the
vessel.
One party may decide that their best interests will
be represented by appointing their own
independent representative, rather than using the
primary nominated agent.
The exact role and responsibilities of this second
agent (and indeed the title under which they
operate) will be determined on a case by case
OTHER AGENCY APPOINTMENTS
An agent may be appointed to undertake other
duties on behalf of a principal and the extent of
those duties may be specif ic or general in nature as
the principal requires.
Such appointments often derive from unscheduled
occurrences such as port calls arising as a result of
an emergency, vessel breakdowns or pollution
incidents, or action by statutory authorities such as
customs or immigration.
DUTIES OF THE AGENT / DELEGATED
AUTHORITY FROM THE PRINCIPAL
At the time of initial appointment, the principal will
issue instructions to the agent detailing the
services required and the limits of delegated
authority. Within the limits of that authority, the
agent is entitled to enter into agreements or
contracts, disburse funds and make other
arrangements that may bind the principal or incur
costs on their behalf.
“AS AGENTS ONLY”
Assuming that the agent has not exceeded the
delegated authority granted by the principal, the
principal agrees to assume the obligations and to
indemnify the agent for any costs resulting from any
contract or arrangements entered into by the agent
on the principal’s behalf.
The agent is entitled to benefit from the protections
available to it under the above agreement but in
order to do so must describe itself in all
correspondence, writ ten verbal and otherwise, “as
THE AGENCY FEE
The agent will charge the principal a fee based on
the volume of work undertaken. The fee is agreed
through negotiation between the agent and the
principal and is often subject to competition from
other agents.
The precise form of the fee, for example a f lat fee or
one based on the duties undertaken, can vary
widely. The f lat fee is common in port agency whilst
the component based fee is more normal for cargo
agencies.
THE ROLE OF FONASBA
Established in 1969, FONASBA is the global
association for ship brokers and ship agents. With
members in more than 50 maritime nations, the
Federation’s remit is to “promote and protect the
professions of ship broker and ship agent
worldwide”, an obligation it discharges through
actions in relevant international and regional bodies
and organisations and by supporting its members
on mat ters of a national nature.
THE ROLE OF FONASBA contd/..
FONASBA has consultative status with:
the International Maritime Organisation, the UN
Conference on Trade and Development, the World
Customs Organisation and the European
Commission. The Baltic Exchange, BIMCO,
INTERTANKO and the Shipbrokers’ Register are
members of FONASBA and the Federation maintains
close relations with Intercargo, as well as European
organisations representing shipowners, port
authorities, terminal operators and others.
 FONASBA Membership
2012
AFRICA: Kenya, Mauritania, Mauritius, Morocco,
Nigeria, Senegal, South Africa, Tunisia
AMERICAS: Argentina, Brazil, Mexico, Peru, USA
ASIA/PACIFIC: Australia, China, India, Indonesia,
Japan, the Philippines, Sri Lanka
EUROPE: Belgium, Bulgaria, Croatia, Cyprus,
Denmark, Finland, France, Germany, Great
Britain, Greece, Hungary, Ireland, Italy, Malta,
Montenegro, Netherlands, Norway, Poland,
Portugal, Russia, Slovenia, Spain, Sweden,
Turkey
MIDDLE EAST: Dubai, Israel, Jordan, Qatar,
Syria, Yemen
 FONASBA Membership
2012
FONASBA Membership currently represents:
• 69% of global population (4.77 billion people)
• 71% of global GDP (US$ 52.78 trillion)
• 6 of the G7 countries (excl Canada)
• 7 of the G8 countries (excl. Canada)
• 17 of the G20 countries (excl. Saudi Arabia,
South Korea & EU)
• 19 of the 27 EU countries (excl. Austria,
Czech Rep. Estonia, Latvia, Lithuania,
Luxembourg, Romania and Slovakia)
• All 5 of the BRICS countries (Brazil, Russia,
India, China and South Africa)
 FONASBA Quality Standard
In October 2007, FONASBA unveiled its Quality
Standard for Ship Brokers and Agents. This is
designed to set an internationally recognised set of
quality criteria by which companies operating in the
broking and agency industries can be judged.
Only companies that are members of FONASBA
member associations can secure this standard.
Currently FONASBA associations in 19 countries
(Argentina, Australia, Belgium, Brazil, Croatia, Cyprus,
Denmark, Finland, Great Britain, Israel, Italy, Japan,
Malta, Norway, Portugal, Slovenia, Spain, Sweden
and the USA) are accredited to the Standard and over
280 companies are approved.
• Export and import documents
• Export and import documents are used to provide
information to all parties involved in international trade and
ensure that products make a smooth transition into or out
of a country. Some of the most common documents
include:
• Commercial invoices
• Bills of exchange
• Bills of lading
• Le ers of credit
SALES
DOCUMEMTS