9. 2- general cargo
1 Ro-Ro
2 Lo-Lo
3 MPP
4 container ships, which may :-
4-1 large, medium , small & feeder
4-2 pure or combined carrier
4-3 classified as size / age to generations
10.
11. 3- Specialized
1 Reefer
2 LNG carrier
3 LPG carrier
4 Chemical carrier
5 Car carrier
6 live stock carrier
7 Forest products carrier
8 Asphalt carrier…etc
12. B- Non-cargo ships
1Passenger :- cruise/ferries
2 Off-shore:- PSV-OSV &storage tankers
3 Dredger and cable layers
4tugs and pilot boats
5- Hospital
6 Prison
7 Library
8 training……etc
13. World merchant fleet as @ 1/1/2016 (ISL , 2016)
Bulk32.9%- GC 21.2% -Crude13.7% -Con10.2%-Ch10.1% -RORO-PAX8.4% -Gas3.4 %Total 51409
14. BULK CARGO TRADE
Bulk cargo means anything whose physical
characteristics allow it to be handled in bulk.
Bulk cargo transport : moving of one cargo as bulk
from the producer to the customer in one stage -
one B/L.
The main elements of dry bulk transport are:
1-Volume
2 Handling and stowage
3 Cargo value
4 Regularity of trade flow
15. Major Dry Bulks :-
Iron Ore
Coal (Steam for Power) (Coking for Steel
Production)
Grain (Wheat, Corn, Soya, Sorghum, etc)
Bauxite and Alumina
Phosphates
Minor Dry Bulks :-
Forest Products such as Packaged Timber,
Newsprint , Paper Pulp & wood chips.
Animals Feed & fertilizer
Sugar, Rice , salt
Cement, gypsum & sulphur
Steel products, steel scrap, non-ferrous metal ores.
16.
17.
18. BULK GENERAL CARGO
Service Whole ship Slot / hold / container/ pallets
Character Large quantities Small/medium quantities
Value Raw materials(cheap) Loose/ Final / semi final
products (expensive)
Freight Cheap and flexible
negotiations
Expensive and inflexible
negotiations
Service Tramp (1 trip for 1 cargo) Liner or tramp & stops at
different ports (common)
B/L 1 Multi
Respond
to S/D
Quick (charter) Stick (liner)
24. liner service is a fleet of ships, with a common ownership
or management, which provide a fixed service, at regular
intervals, between named ports, and offer transport to
any goods in the catchment area served by those ports
and ready for transit by their sailing dates.
Freight usually high and fixed because of the following
6building blocks:- service schedule ,ship costs, port
charges (including cargo working),container operations
,container costs it self and administration costs.
Chartering Terms
25. Bare boat charter (similar to a lease) the vessel is
chartered to a third party who to all intents and
purposes owns it for the period of the charter,
provides the crew, pays operating costs (including
maintenance) and voyage costs (bunkers, port dues,
canal transit dues, etc.), and directs its operations.
26. Time charter
a charterer has the use of the vessel for a specific
period.
A fixed daily or monthly payment is made for the hire
of the vessel. The charterer pays fuel, port charges,
loading / discharging fees and other cargo-related
costs and directs the ship operations.
27. Voyage charter a charter who provides transport for
a specific cargo from port A to port B for a fixed price
/ ton. Owner pays the port costs(excluding
stevedoring),fuel costs and crew costs.
Contract of Afreightment COA the ship owner agrees
to carry a series of parcels for a fixed price / ton.
28. B- New buildings market
The new building market trades is ship which does not exist.
30. Sale & purchasing stages :-
Putting the ship on the market
Negotiation of price and conditions
Memorandum of agreement
Inspections
The closing
Factors affecting the sale and purchase market
Freight rates
Age
Inflation
Expectations
32. Demolition market parties:
#The ship owner
#The scrap yards
#The broker
Prices are determined by negotiation and depend
on the availability of ships for scrap and the
demand for scrap metal.
33. D- Demolition market
Demolition market parties:
#The ship owner
#The scrap yards
#The broker
Prices are determined by negotiation and depend
on the availability of ships for scrap and the demand
for scrap metal.
34. Because the same ship owners are trading in all four markets
their activities are closely correlated by cash flow and market
sentiment , when freight rates rise or fall the changing
sentiment ripples through into the sale and purchase market
and from there into the new building market, with the
balance sheets of the companies trading in the different
markets acting as a link
35.
36. 3-1 Shipping cycle
Market cycles are the driving force behind shipping
investment and chartering. They are the heartbeat of the
shipping market, pumping cash in and out of the business /
an economic concept that explains how shipping companies
and freight charges respond to supply and demand.
The four stages of the shipping cycle are:
peak-up - Peak - Downturn - Trough.
41. Shipping cycle
D > S Expansion- Peak up
Freight increase
No spaces
Buy new / second hand
Peak
High freight rate
Second hand price increase
More new building orders
Recession –Downturn
Freight decrease
Ship has no business
overshoot
Trough
Freight very low
Short cash
Active demolition market
D = S
D < S
Business cycle
42. In brief
Freight rate links supply and demand:
*When supply is tight freight rates rise, stimulating ship
owners to provide more transport and when they fall, it has
the opposite effect.
*Time-scale is important in reaching an equilibrium price.