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6CARGO BROKING &

OPERATION

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Roles and Responsibilities

Cargo broker acts as an intermediary between charterers and ship owners, to help Charterers look for ships to move their cargoes, and ship owners to look for cargoes to earn freight.

Is actively involved throughout the deal: presenting the

business to potential clients, negotiating main terms of the fixture, finalizing the contract and following the fixture through to its conclusion.Provides expert industry advice to charterers and

ship owners, including market surveillance and intelligence.

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Module Content1. Understanding Different Types of Bulkers

and Container Ships

2. Introduction to International Ship Safety

Procedures

3. Dry and Chemical Bulk Cargoes: Safety

and Ship Types

4. Heavy Lifts and Project Cargoes

5. Offshore Supplies

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Merchant Shipping1. 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 Cargo1) 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 Cargo5) 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 Bulk1) 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 Chemical1) Crude tanker….VLCC, suezmax,

panamax2) Product tanker…..crude tanker, long

haul3) Chemical tanker4) Combined carrier

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

sophisticated freezing system6) Liquefied Nitrogen Gas (LPG)

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International Ship SafetyEvery shipping company must develop, implement, and

maintain a safety management system (ISM) that includes

the following functional requirements: a safety and

environmental policy; instructions and procedures to ensure

safe operation of ships; defined the levels of authority and

line of communication between and among, shore and

shipboard personnel; procedures for reporting accidents and

nonconformance; procedures to prepare for and respond to

emergencies; procedures for internal audits and management

review audits.

IMO, ISM, SOLAS, SMC (Safety Management Certificate),

DOC

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International Ship Safety…cont

It is not just another inspection that focuses on

hardware

It is about HUMAN ELEMENT and the Relationship with

shore side and ship board management activities

It focuses on Human Element

Requires and Demands COMMITMENT. Not something

you can throw money and resolve

It simply makes a good business sense

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International Ship Safety…cont

It ensure safety of life, cargo at sea

Prevent human injury and loss of life

Avoid damage to property

Prevent pollution of the environment

Ensure full compliance to National, Local, and

International rules, regulations, standards, and codes

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International Ship Safety…cont

The company should ensure that:

a. Inspections are held at appropriate intervals;

b. Any non-conformity is reported, with its possible

cause, if known;

c. Appropriate corrective action is taken; and records of

these activities are maintained

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ISM CODE…..cont Internal Auditor

External Auditor….. Jabatan Laut

- Initial Assessment….before issue certificate

- Periodic (verification) Assessment

- Renewal Assessment

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ISM CODE…..cont Non – Conformity

Major ---- a failure of a system which has immediate

impact to safety and pollution

Minor …… a failure of a system which has no

immediate

impact or bearing on safety and pollution prevention

Observations

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ISM CODE…..cont OFFICE (Auditor)

-Document of Compliance (DOC)

Each Ship

-Safety Management Certificate (SMC)

- Non-conformance/compliance? … SMC withdrawn

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Major International Incident Torrey Canyon……March 1967

Amoco Cadiz……..March 1978

Exxon Valdez……..March 1989

………………..Do you see a sequence?

What happened in March 2000……..?

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Dry bulk Cargo : Safety/TypesIs a parcel transported in a single

shipPlayers are ship owner, operators,

commodity traders, and cargo ownersBulk carriers (4 sizes)1. Handy (10,000-39,000) dwt2. Handymax (40,000-59,000) dwt3. Panamax (60,000-99,000) dwt4. Capesize (over 100,000) dwt

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Dry bulk Cargo : Safety/Types

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 200,000) dwt draft >25

meters6. ULCC (over 350,000) length 380 meters, breath 68 meters

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Classes of Bulk Cargo

1) Liquid bulk e.g crude oil, oil products2) Major dry bulk e.g iron ore, coal, and

grain3) Minor bulk e.g agri bulk such as soya

bean, sugar, rice, fertilizer, metal steel, minerals, and forest products

“It is the ships used rather than the commodity type”…. Bulk cargo

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Chemical Cargo/Ship & SafetyUSA, Europe and Asia, India and Middle East, South

America

Cargo carried annually in the region of 60 million tons

of organic and inorganic chemicals…… and 40-50 million

tons of vegetable oil, alcohol, molasses, lubricating

oil…..

Organics are petrochemicals contain carbon and are

made from crude oil and natural gas or coal.

Ethylene, propylene, butadiene, benzene…used in the

plastic and artificial fibre industry are some of examples

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Chemical Cargo/Ship & Safety…cont

Inorganic are products such as phosphoric

acid, sulphuric acid used in a fertilizer

industry, caustic soda in aluminium industry

Vegetable oils (derived from seed of plants)

include palm oil, soya beans

Molasses are by-products of sugar refining

operations, thick brown syrup/ram/animal

feeds

Safety is paramount

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Chemical Cargo/Ship & Safety…cont

Products such as phosphoric acid are very

dense, corrosive to metal such as iron and zinc

These products are carried in tank coated with

stainless steel, rubber or acid-proof paints

Loaded and discharged through stainless pipes,

transferring rate 600 to per hr. In ports the

acids are stored in steel cisterns with a rubber

lining standing in concrete tanks that can hold

the content in case of leakage

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Chemical Cargo/Ship & Safety…cont

Three (3) ship types:1) Chemical Parcel Tanker, average size 15,000 dwt, over

75% of the tanks are segregated with separate cargo handling facilities, and the average tank size <2,700 cubic meter

2) Bulk Chemical Tanker with average size 13,380 dwt, tank size >2,700, over 75% of tank are segregated3) Chemical Product Tanker with 51-75% tanks

segregated, average tank size >2,700 cubic metersCargo pipe lines categories/varies…cargo tanks are

served directly by a single bottom line to each cargo pump Independent line system/minimum chances of contamination of cargoes

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Chemical Cargo/Ship & Safety…cont

Tank coating is widely used on chemical tankers

Epoxy coated tanks are suitable for carriage of animal fats

and vegetable oils

Zinc silicate high resistance to aromatic hydrocarbon such

as benzene, not resistant to acid or alkalis

Ventilation is critical…harmful gas should always be

suspected in an empty tank due to:

a. Lack of oxygen;

b. residue of cargo on tank walls/bottom;

c. Rust , sludge, cargo vapours when subjected to heat

d. Leakage from adjacent tanks

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Chemical Cargo/Ship & Safety…cont

Gas freeing/displacement in conjunction with tank

cleaning operation to completely remove the cargo

vapour from the tank and replace with fresh air or inert

gas

Cargo heating 1) by heating coils (acid resistant stainless

steel coil fitted in cargo tanks, 2) deck heater (heated by

flow of cargo through deck installed heater)

Tank cleaning/cleaning solution procedures depending on

groups, 1) animal and vegetable fats and oil, 2) minerals

oils, 3) petrochemicals and solvents

Safety during loading, transit, and discharging

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Heavy Lift/Project CargoThe transportation, handling and installation of

heavy items such as generator, satellites, and

boilers which are indivisible

Very challenging/complex handled by specialized

logisticians

highest degree of safety and reliability.

Usually ranging from one (1) to >1000 tons and of

widths/heights of more than 100 meters that are

too large to fit into normal containers or onto

conventional transporters.

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Heavy Lift/Project Cargo…cont

The main characteristics is the absence of

standardization . It comprises of various

shapes/sizes, and forms which make transport

planning difficult.

Generators, turbines, reactors, boilers, towers,

casting, locomotives, boats, satellites, military

equipment, oil exploration machinery ( parts of oil

rigs and production platforms), earthmoving and

mining equipment, transport vehicles, cranes,

excavators, wheel loaders.

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Offshore Supplies Platform supply vessel

Anchor-Handling tug

Fibre optic/cable installation support vessel

Diving support vessel

Pipe lying support vessel

Research vessel

Barge

Services such as casting, blasting, welding and repair

works of maritime structures such as ports

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