SHIP TYPES & MARKET ROLE 1. 2 Ship Types 1.1 Liners a)Ply along a fixed route on a regular schedule service between group of ports b)Offer cargo space.

SHIP TYPES &MARKET ROLE

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Ship Types

1.1 Linersa) Ply along a fixed route on a regular schedule service

between group of portsb) Offer cargo space to all shippersc) Liner operation involves adequately sized fleet d) Designed to carry general cargoe) Operate both deep and short sea servicesf) Large volume of such cargo is container vesselsg) Large shore establishment

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1.2 Tramps

a) Does not operate on a fixed sailing schedule

b) Trades in all parts of the world

c) Tramps companies are much smaller than liners’

d) Engaged under charter party: time or voyage

basic, COA

e) Small shore establishment

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1.2 Tramps

f) Mainly transporting bulk cargo, low intrinsic value such

as coal, ore ,grain, fertilizers

g) Shipowner negotiate a separate contract for each

employment

h) Procurement of cargo through broker

i) Freight vary according to ss/dd

1.3 Specialized Vessels a) Coal Carrier – Designed to convey coal in bulk in deep-sea trades

usually 75,000 tones.b) LNG Carrier – Cargo is contained in nine prismatic internally

insulated aluminum tanks - Temperature at – 162’C - Tanks constructed of aluminum or nickel steel

c) Parcel Tanker – Designed to carry chemicals, petroleum products, edible oil and molasses (extract from raw sugar)

d) Passenger vessels – Operate in the short sea trade and have limited cabin accommodation

Timber carriers – provided with large unobstructed holds and large hatches

VLCC/ULCC - Oil carrying vessels in excess of 200,000 dwt

Refrigerated vessels – Designed for the carriage of frozen or chilled meat. Operate on liner service.

Ro/Ro Vessels – Vehicle ferry. Designed for conveyance of road haulage vehicles and cars

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Merchant Shipping

1. Cargo ships…..split into four (4) sectors

based on economic activities namely (a)

general cargo transport, (b) dry bulk

transport, (c) oil and chemical transport,

(d) liquid gas transport

2. Offshore oil, mobile structure, supply ships

3. Non-cargo ships….tugs, dredgers, fishing

boats, passenger ships, research ships

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Six (6) General Cargo

1) Container-ship… cellular ‘lift on lift off”

exclusively for carriage of containers

2) Ro-Ro… multi-deck vessels, no public

area, carry cargo on deep-sea routes

3) Barge carrier … carry 500-ton standard

barge which are floated or lifted on and

off the ship

4) Reefer ships….refrigerated, palletised

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Six (6) General Cargo

5) General cargo… purpose-built cargo liner, fast,

multiple decks, extensive cargo gears but

poor

container capacity

6) Multi-Purpose ships… fast speed, good

container capacity, ability to carry break

bulk/other unitised cargo such as forest

products, heavy lifts and project cargo

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Six (6) Dry Bulk

1) Bulk carrier..capesize (carry ore, coal),

panamax (carry coal, grain), handymax,

handy

2) Open hatch (designed for unit loads)

3) Ore carrier

4) Woodchip carrier

5) Vehicle carrier (multiple deck)

6) Cement carrier

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Four (4) Oil and Chemical

1) Crude tanker….VLCC, suezmax, panamax

2) Product tanker…..crude tanker, long haul

3) Chemical tanker4) Combined carrier

Two (2) Liquid Gas5) Liquefied Petroleum Gas (LPG)

sophisticated freezing system6) Liquefied Nitrogen Gas (LNG)

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Sub-division of Tankers…cont

In tanker business, there are six (6) sizes1. Handy (10,000-59,000) dwt2. Panamax (60,000-79,000) dwt3. Aframax (80,000-119,999) dwt4. Suezmax (120,000-199,999) dwt5. VLCC (over 250,000) dwt6. ULCC (over 350,000) dwt draft >25

meters length >380 meters, breath 60 meters

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The Development of Fleet of Container Ships

Type of Vessel Capacity Teus

DWT Length m Beam m

Max. Row

Draft

1st. Generation<1,000 16,000

180 –

19020 8 9.5

2nd. Generation 1,000 – 2,999 24,000 200 – 250 31 12 11.0

3rd. Generation 3,000 – 3,999 48,000 250 - 280 32.2 13 12.5

4th. Generation 4,000 – 5,999 58 ,000 280 - 290 39.6 16 13.5

5th. Generation 6,000 – 8,000 89,000 290 - 338 46.0 17 - 18 14.0

6th. Generation12,000

- 18,000

120,000 -

180,000400

50.0-

60.0

20-

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17.4-

21.0

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Classification by Generation

Classification of Containership

Type of Vessel

Capacity Teus

# Row Abreast

DWT Length M

Beam M

Draft M

Speed Knots

Barges 60 - 100 <10 2,200 45 16 4.3 12

Feeders400

– 2,999

10-12 7,000 120 20 6.75 15

Panamax3,000

– 3,999

13 48,000250

-280

32.2 12.5 22

Post –

Panamax

4,000 –

5,99916 58,000

280 -

29039.6 13.5 25

Super Post – Panamax

6,000 –

8,00017 - 18 89,000

290 -

33846.0 14.0 25

Mega12,000

– 18,000

20 -24120,000

– 180,000

40050 -

60

17.4 –

21.025

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Economy of Scale in Ship Capacity

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Carrier Capacity

Commercial Interest vs Financial/Investment Interest

Carrier capacity appear aligned with customer demand

Customers seek greater reliability at lower cost through end-to-end integration, tighter synchronization, and optimized supply chain services

….Which forces shipping lines to make a choice about where and how they want to play in this market…….strategic direction

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Carrier Capacity..cont

Players need to assess their core competencies and the market opportunity to determine their strategic direction

e.g …..liner/tramp, choice of routes/loop, Atlantic/Pacific/Far East/Mediterranean/Middle East….Spot/Voyage/COA, 70/30,60/40 rule

…..COMMECIAL consideration Strategic clarity.. focus on service, cost,

and value

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Carrier Capacity..cont

Capacity addition are concentrated towards mega-ships, since unit cost decreases as ship sizes increases

Near-term demand growth able to absorb capacity, later years unclear

Long term will depend on availability of ship building capacity

Korea, China, Japan….Samsung, Hyundai, Hanjin

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Carrier Capacity-Future Scenario

Size matter, no doubt about it Excellence service equally important. There

will be a cultural shift from asset-centricity to greater balance between customer and asset focus

Top 10 players control 80% of the market More free trade agreements spur

sustainable growth Shipping lines can segment the market

more accurately

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Ship Papers

Following papers are required by International Regulation, obligatory for the master to produce them to authority for inspection• Charter party/bills of lading• Cargo manifest• List of dutiable stores• Loadline Certificate or examption• Cargo ship safety equipment construction

certificate ship license• Ship certificate

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Ship Papers…cont

Ship certificate of Registry Official logo Radio Log Book De-ratting certificate Deck log book Oil record book Crew list

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Ship Papers…cont

1) To Discuss on the Technical/ Operation Management in liner Shipping

2) To elaborate on Key Distinction between Liner and Tramp

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Shipping Costs

• Shipping is a capital intensive industry and the cost of running a vessel is beyond the imagination of a small industry player.

• The various cost components of a shipowning company under various headings as below:

1. Capital costs2. Voyage costs3. Crew costs4. Consumable stores5. Vessel maintenance6. Insurance7. Drydocking

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Shipping Costs

a) Loan repayment, interest payable, exchange rate amortization, depreciationb) Port charges, light dues, tug boat, bunkers (MFO, MDO), communicationc) Salaries and allowance, joining and repatriation, victualing, medical, crew insuranc EPF and other contribution, safety shoes and overalls, trainingd) Ship stores, water, map and charts, chemicals, lubricantse) Paints, machinery spares, voyage survey repairs, survey feesf) H&M, P&I, FD&D, War&Strike, Loss of hire, Crew insuranceg) Drydock, modification and upgrading 

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