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International Logistics

Liner & Tramp Ships

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LINER SHIPS

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Liner Shipping

The liner shipping is mainly associatedwith containers/passengers.

Freight rates are fixed. Purpose is mainly to carry small lots of

goods from numerous shippers in

designated ports to a large number ofreceivers.

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Liner Shipping DistinctiveCharacteristics

Liner services are: Well established, pre-published schedules Fixed routes Fixed prices These services are controlled by cartels,

called shipping conferences.

Other distinct characteristics are Regularity Punctuality Speed Reliability

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Liner Shipping OperatingRoutes

Generally three types of itineraries

End to end services

Pendulum services Round the world services

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Liner

Freights & Tariffs

Usually established by the ShippingConferences

These are fixed for a certain period orfor specific quantity or type of goods

The freights and tariffs areconsiderably higher than charged incase of shipment by tramp vessels

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Benefits of Liner Shipping

Efficiency

Global Economic Engine

Low Environmental Impact

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Modes of Shipment

Break Bulk

Containerized Mode

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Cost calculation

Input

Method

Output

Uses

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TRAMP SHIPS

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This branch of shipping industry is very irregular.Unstable and little organized.

Tramp ships are , in accordance with the demand,

contractually put at the disposal of charterers .

Tramp ships trade on spot market with no fixedschedule

It is done with ships in voyage charter

The Ship operator must see to it that his ship israrely idle

Tramp Ships

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Vary considerably in size

Sometimes of lesser qualitythan liners

Relatively slow and cheap

Modern Tram fleets havetankers & specialized ships

SHIPS

Consists of unpackaged bulkgoods (ore, coal, grain etc),or seasonal products.

No special care given tomanipulation and stowage

Speed of delivery is ofprimary importance

CARGO Compared with liners, freight

is low.

Freight established on INT.freight market according to

rules of supply and demand. The Baltic exchange of

London Is the main market

FREIGHT

EL

EME

NTS

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TRAMP SHIP

These are the ships which are like on-call or

on-demand service ships.

Tramp ship services are availed when the

customer has large cargo volumes, when

needs to be shipped in vessel like food

grains, chemical, crude oil.

Ships capacity ranges from 5000 M.Tons to

500,000 M.Tons .

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TRAMP SHIPS

Small Size

Don't Use Highly Sophisticated Ships And Technology

Slow And Cheap

Transport Of

Bulk Goods Cereals & Derivatives

Coal

Ores

Gases

Frozen Products

Oil

Cars

Wood

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Types of Ships

Various types of ships

Car ships (Pure car carriers)

General Cargo vessel

Bulk Cargo Carries raw materials grain, coal, ore, sand, fertiliser,alumina, bauxite, sugar, cement, wood

chipOre Oil and Ore Bulk Oil

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Ore Oil carrier

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Types of Ships

VLCC (very large crude carriers) 200-320,000 dwt; ULCC (ultra large crudecarrier) 320,000 + dwt

Parcel Tankers LNG & LPG Carriers

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Charterer

A charterer may own cargo and employ a shipbroker to find a ship todeliver the cargo for a certain price, called freight rate.A charterer may also be a party without a cargo who takes a vessel oncharter for a specified period from the owner and then trades the ship tocarry cargoes

Charter Parties

A written, or partly written and partly printed, contractA charter party is the contract between the owner of a vesseland the charterer for the use of a vessel

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Bareboat Charter

Time CharterVoyage CharterSpace Charter

Spot Charter

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An agreement between the charterers to exploit theearning capacity of similar ships to co-operate inthe Commercial Management and CommercialOperation of all such ships controlled by them

Improves transport efficiency by special investmentand increased ship utilization

A pool agreement is a horizontal agreement betweencompetitors which may create market dominance andincrease barriers to entry. In many jurisdictions thisalready makes them illegal

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THANK YOU