INTRODUCTION TO MARITIME SHIPPING - course notes.pdf

INTRODUCTION TO MARITIME SHIPPING

This course will cover the basics of global maritime shipping with a particular focus on Containerisation and Liner shipping. This course is aimed at a person wishing to enter the Maritime Shipping Industry, a new recruits starting in the industry or someone who wishes to complement their existing knowledge base. Course Content 1. International Maritime Trade 2. Vessel and Cargo Types 3. The Container Export and Import Transactions 4. Types of Shipping Services 5. The Key Role Players in Maritime Shipping 6. Overview of Maritime Shipping Documentation 7. Shipping Terminology - Glossary of Industry Terms 8. Quiz 9. Recommendations 10. References and Credits

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1. International Maritime Trade SHIPPING Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship. Land or "ground" shipping can be by train or by truck. In air and sea shipments, ground transportation is required to take the cargo from its place of origin to the airport or seaport and then to its destination because it is not always possible to establish a production facility near ports due to limited coastlines of countries. Ground transportation is typically more affordable than air shipments, but more expensive than shipping by sea especially in developing countries like India, where Inland infrastructure is not efficient.

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Shipment of cargo by trucks, directly from the shipper's place to the destination, is known as a door to door shipment and more commonly multimodal transport system. Trucks and trains make deliveries to sea ports and air ports where cargo is moved in bulk or containers. Most shipping is done aboard actual ships. An individual nation's fleet and the people that crew it are referred to as its merchant navy or merchant marine. Merchant shipping is lifeblood to the world economy, carrying 90% of international trade with +- 90,000 commercial ships worldwide. The term shipping in this context originated from the shipping trade of wind power ships, and has come to refer to the delivery of cargo and parcels of any size above the common mail of letters and postcards. For the purpose of this course, ―Maritime Shipping‖ will be referred to as ―Shipping‖ INTERNATIONAL TRADE International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries.

Industrialisation, advanced transportation, globalisation, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalisation. Without international trade, nations would be limited to the goods and services produced within their own borders. International trade is, in principle, not different from domestic trade as the motivation and the behaviour of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. Another difference between domestic and international trade is that factors of production such as capital and labour are typically more mobile within a country than across countries. Thus international trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labour or other factors of production. Trade in goods and services can serve as a substitute for trade in factors of production. Instead of importing a factor of production, a country can import goods that make intensive use of that factor of production and thus embody it. An example is the import of labourintensive goods by the United States from China. Instead of importing Chinese labour, the United States imports goods that were produced with Chinese labour. One report in 2010 suggested that international trade was increased when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country. International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.

Largest countries by total international trade Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Country

Total International Trade Date of (Billions of USD) information World 27,567.0 2010 est. United States 3,825.0 2011 est. 3,791.0 2010 est. European Union (Extra-EU27) 3,561.0 2011 est. China Germany 2,882.0 2011 est. 1,595.5 2011 est. Japan 1,263.0 2011 est. France United Kingdom 1,150.3 2011 est. 1,091.0 2011 est. Netherlands 1,084.0 2011 est. South Korea 1,050.1 2011 est. Italy 944.8 2011 est. Hong Kong Canada 910.2 2011 est. 818.8 2011 est. Singapore 808.7 2011 est. Russia 749.2 2011 est. India 715.2 2011 est. Spain Mexico 678.2 2011 est. 664.4 2011 est. Belgium 623.7 2011 est. Taiwan 607.9 2011 est. Switzerland Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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19 20

Australia Brazil

502.3 470.4

2011 est. 2011 est.

Top traded commodities (exports)

Rank

Commodity

Value in US$('000)

Date of information

1

Mineral fuels, oils, distillation products, etc.

$2,183,079,941

2010

2

Electrical, electronic equipment

$1,833,534,414

2010

3

Machinery, nuclear reactors, boilers, etc.

$1,763,371,813

2010

4

Vehicles other than railway, tramway

$1,076,830,856

2010

5

Plastics and articles thereof

$470,226,676

2010

6

Optical, photo, technical, medical, etc. apparatus

$465,101,524

2010

7

Pharmaceutical products

$443,596,577

2010

8

Iron and steel

$379,113,147

2010

9

Organic chemicals

$377,462,088

2010

10

Pearls, precious stones, metals, coins, etc.

$348,155,369

2010

Risk in International Trade Companies doing business across international borders face many of the same risks as would normally be evident in strictly domestic transactions. For example,        

Buyer insolvency (purchaser cannot pay); Non-acceptance (buyer rejects goods as different from the agreed upon specifications); Credit risk (allowing the buyer to take possession of goods prior to payment); Regulatory risk (e.g., a change in rules that prevents the transaction); Intervention (governmental action to prevent a transaction being completed); Political risk (change in leadership interfering with transactions or prices); and War, piracy and civil unrest or turmoil; Natural catastrophes, freak weather and other uncontrollable and unpredictable events,

In addition, international trade also faces the risk of unfavourable exchange rate movements (and, the potential benefit of favourable movements).

TRADE ROUTE A trade route is a logistical network identified as a series of pathways and stoppages used for the commercial transport of cargo. Allowing goods to reach distant markets, a single Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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trade route contains long distance arteries which may further be connected to several smaller networks of commercial and non commercial transportation. SHIPPING ROUTE A shipping route is a trade route used by merchant ships. Early routes usually were coastal in nature as navigators had to rely on the coastal landmarks. As the knowledge of navigation and mapmaking increased, shipping routes became less dependent on coastal landmarks and spanned to larger seas and oceans.

Above : Main maritime shipping routes The top twenty trade routes account for over 60 percent of the global container trade volume.

TOP 20 CONTAINERISED TRADE ROUTES, 2009 ORIGIN

DESTINATION

TEU’S (Millions)

% Share

Greater China

United States

7.1

7.8%

Greater China

European Union

5.8

6.5%

Other Asia

Other Asia

5.2

4.0%

Greater China

Other Asia

4.6

4.0%

Other Asia

European Union

3.6

3.8%

United States

Greater China

3.2

3.2%

European Union

Middle East & Africa

3.2

2.9%

European Union

Other Asia

3.0

2.8%

European Union

Greater China

2.9

2.7%

Greater China

Middle East & Africa

2.7

2.6%

Other Asia

Greater China

2.7

2.4%

Greater China

Greater China

2.6

2.4%

Other Asia

United States

2.3

2.2%

Latin America

United States

2.2

2.2%

Greater China

Japan

2.1

2.2%

Other Asia

Middle East & Africa

1.9

2.1%

& Caribbean

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Greater China

Other Europe

1.8

2.0%

European Union

United States

1.8

2.0%

Middle East & Africa

European Union

1.7

1.9%

United States

Other Asia

1.7

1.9%

Rest of World

Rest of World

41.8

38.4%

TOTAL

103.8

100.0%

There are approximately 400 liner shipping services providing regularly scheduled service (usually weekly), that enable goods to move between ports along the many trade routes of the world.

ROUTE

SERVICES

West Coast of North America – Asia

68

East Coast of North America – Asia

22

North America - Northern Europe

17

North America – Mediterranean

20

Asia - North Europe

35

Asia – Mediterranean

40

North America - East Coast of South America

8

North America - West Coast of South America

16

North America - North Coast of South America

26

Europe - East Coast of South America

10

Europe - West Coast of South America

8

Europe - North Coast of South America

10

Asia - East Coast of South America

8

Asia - West Coast of South America

13

South Africa – Europe

5

South Africa - North America

2

South Africa – Asia

19

West Africa – Europe

37

West Africa - North America

3

West Africa – Asia

18

Total

385

.

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2. VESSEL AND CARGO TYPES VESSEL TYPES

Merchant Vessel A merchant vessel is a ship that transports cargo or passengers. Most countries of the world operate fleets of merchant ships. However, due to the high costs of operations, today these fleets are in many cases sailing under the flags of nations that specialise in providing manpower and services at favourable terms. Such flags are known as "flags of convenience". Currently, Liberia and Panama are particularly favoured. Ownership of the vessels can be by any country. Merchant ship categories Merchant ships may be divided into several categories, according to their purpose and/or size. Below is a quick introduction to the basic types of ships.       

Container ships Break bulk ships Bulk ships Tankers ships Reefer ships Ro-Ro ships Specialist ships

Container Ships Container ships are cargo ships that carry their entire load in truck-size containers, in a technique called containerisation. They form a common means of commercial intermodal freight transport. They carry most of the world’s manufactured goods and products, usually through established routes and schedules. The typical measurement of a container ship’s capacity is in twenty-foot equivalent units (TEUs), which is the measurement of one twenty-foot container (6.06m length by 2.44m width by 2.59m height) or a forty-foot equivalent units (FFEs), which is the measurement of one forty-foot container (12 m length by 2.3 m wide by 2.3 m height)

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Above : container ships Break Bulk Ships Break bulk cargo handling is the method employed since the earliest days of shipping. A bulk of cargo is broken down into groups that can be handled by the equipment available. Break bulk cargo is cargo that may be affixed to a pallet. Palletised cargo is organised in such a way as to facilitate the loading into the ship by crane or derrick. This type of ship may carry some bulk cargo, some break bulk and some containers. Smaller, inter-island ships generally carry a variety of cargo sizes, types and containers. Ships that carry this sort of cargo are often called general cargo ships. Bulk ships A bulk carrier is ocean-going vessel used to transport dry bulk cargo items such as iron ore, bauxite, coal, cement, grain and similar cargo. Bulk carriers can be recognised by large boxlike hatches on deck, designed to slide outboard or fold fore-and-aft to enable access for loading or discharging cargo.

Above : bulk vessel Tanker ships A tanker is a ship designed to transport liquids in bulk. Tankers for the transport of fluids, such as crude oil, petroleum products, liquefied petroleum gas, liquefied natural gas and chemicals, also vegetable oils, wine and other food - the tanker sector comprises one third of the world tonnage

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Above : tanker vessel and commercial crude oil supertanker AbQaiq.

Reefer Ships A refrigerator (or reefer) ship is a type of ship typically used to transport perishable commodities which require temperature-controlled transportation, mostly fruits, meat, fish, vegetables, dairy products and other foodstuffs. They are similar in design to multi-purpose ships but have insulated cargo spaces and refrigerating plant to keep the temperature at optimum conditions. When not being used for refrigerated cargoes, these ships can carry general cargo to stay employed.

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Ro-Ro ships

Most car carriers are RO-RO (roll on-roll off) ships which are like huge multi-storey car parks where vehicles can drive straight on and off, making it a speedy and easy way to transport vehicles.

Above : Car carrier and loading of a ro-ro passenger car ferry

Specialist ships Specialist ships are ships that are constructed for certain functions that normal ships are unable to perform, such as anchor handling, ice breaking and lifting of heavy structures

CARGO OR FREIGHT TYPES

Cargo (or freight) is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal longhaul cargo transport. There is a wide range of maritime cargo handled at seaport terminals. 

 

Containerised cargo is the largest and fastest growing cargo category at most ports worldwide. Containerised cargo includes everything from auto parts, machinery and manufacturing components to shoes, toys, frozen meat and seafood (reefer) and hazardous cargo. Break bulk cargo is typically material stacked on pallets and lifted into and out of the hold of a vessel by cranes on the dock or aboard the ship itself. Automobiles are handled at many ports and are usually carried on specialised rollon/roll-off ships.

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  

Bulk cargo, such as salt, oil, tallow, and scrap metal, is usually defined as commodities that are neither on pallets nor in containers. Neo-bulk cargo comprises individual units that are counted as they are loaded and unloaded, in contrast to bulk cargo that is not counted, but that are not containerised. Project cargo and the heavy lift cargo include items like manufacturing equipment, air conditioners, factory components, generators, wind turbines, military equipment, and almost any other oversized or overweight cargo which is too big or too heavy to fit into a container

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3. THE CONTAINER EXPORT AND IMPORT TRANSACTIONS CONTAINER EXPORT TRANSACTION

Step 1 - An aluminium producer, Aluprod, (Shipper) in Durban, South Africa receives an order from his customer Tovito, (Consignee) a motor manufacturing company in Kobe, Japan for 20 x 20FT containers of aluminium. Aluprod contacts their Freight Forwarder (FF) in Durban with the order requirements. If they have not shipped to this area before he will request a rate for the shipment either directly from the Shipping Line or the FF. The Freight Forwarder (FF) contact the Shipping Line to place a booking to ship the containers on a vessel that will arrive in Kobe nearest to the Consignee, Tovito’s delivery date request and starts to prepare the necessary documents to submit to the Shipping Line, the Port Authorities and the Customs department.

Step 2 – On the instruction from the FF the Shipping Line releases an empty container to the FF transporter who uplifts this from the Shipping Lines depot and delivers the containers to the Shipper. The Shipper packs his cargo into the containers and seals the containers with high-security seal and then contact the FF to advise the containers are ready to be collected for shipment.

Step 3 – The FF arranges for the container to be transported to the Load Port for shipment, they also submits the relevant documents to the authorities and the Shipping line

Step 4 – The Port stores the container in a demarcated port stack until the vessel is ready to load. There is normally a nominated period +- 4 days prior to the vessel arriving, where the containers are allowed to be delivered into the stack, if the containers are late or early there can be penalties

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Step 5 – The Port loads the containers onto the vessel for the Shipping Line, the Shipping Line gives the Port the bay plan so they know where the containers need to be stowed on the vessel.

Step 6 – The Shipping Line submits the relevant manifests and documents to the port authorities at load and discharge port and sets sail. The Shipper, FF and Consignee can track the progress of the containers through the Shipping Line, some Shipping Lines offer on-line tracking facilities so you can check on-line yourself.

Step 7 – The vessel arrives at the discharge port in Kobe, Japan, the Shipping Line provides the Port with the relevant information on what containers need to be discharged and loaded at each Port. This is done prior to the vessel arriving at the Port. The Port discharges the containers into a stack area awaiting instruction from the Shipping Line to release to a nominated transporter.

Step 8 – The FF arranges for all documents and relevant charges to be paid to the Shipping Line and Authorities to obtain release of the cargo and container. The relevant authorities may request inspection of the cargo prior to release.

Step 9 – Once clearance has been confirmed by the relevant parties, the FF will arrange for the container to be uplifted at the Port and delivered to the Consignee’s premises.

Step 10 - The containers are unpacked by the Consignee (normally unpacked while the truck is still attached to the container) and the empty containers are returned to the Shipping Line’s depot by the FF transport agent in a ―good clean condition‖.

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CONTAINER IMPORT TRANSACTION

THE T-SHIRT JOURNEY FROM INDIA TO ENGLAND

Step 1 - A T-shirt shop in London, England is running low on T-shirts and needs to restock their product. The shop places an order for 100 x T-shirts of each colour with their bulk buyer, Shirtee, in London. Shirtee places an order with his supplier Indirie Shirts, in Mumbai, India and advises he will arrange shipment. The Shipper, Shirtee, then contacts his Freight Forwarder (FF) in London to request that a container be released to his supplier in Mumbai, India and booked on a vessel to arrive at a specific date. If this is a new area he will request a rate for shipment from the Shipping Line or the FF.

Step 2 – The FF will contact their office in Mumbai, India to make a booking with the selected Shipping Line destined to arrive in London on the specific date or closest to that specific date. The FF in India will arrange transport to collect the empty container from the Shipping Lines depot and deliver it to the supplier Indirie Shirts premise to pack the cargo, once the cargo is packed and sealed with a highsecurity seal, Indirie notifies the FF to collect the full container.

Step 3 – The FF arranges for the container to be uplifted from Indirie and transported to the Port for shipment, and they submit the relevant documents to the authorities and the Shipping Line

Step 4 –The Port stores the container in a demarcated port stack until the vessel is ready to load. There is normally a nominated period +- 4 days prior to the vessel arriving, where the containers are allowed to be delivered into the stack, if the containers are late or early there can be penalties.

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Step 5 – The Port loads the containers for the Shipping Line, the Shipping Line gives the Port the bay plan so they know where the containers need to be stowed on the vessel.

Step 6 –The Shipping Line submits the relevant manifests and documents to the port authorities at load and discharge port and sets sail. The Shipper, FF and Consignee can track the progress of the containers through the Shipping Line, some Shipping Lines offer on-line tracking facilities so you can check on-line yourself.

Step 7 –The vessel arrives at the discharge port London, England, the Shipping Line provides the Port with the relevant information on what containers need to be discharged and loaded at each Port. This is done prior to the vessel arriving at the Port. The Port discharges the containers into a stack area awaiting instruction from the Shipping Line to release to a nominated transporter.

Step 8 –The FF in London arranges for all documents and relevant charges to be paid to the Shipping Line and Authorities to obtain release of the cargo and container. The relevant authorities may request inspection of the cargo prior to release.

Step 9 –Once clearance has been confirmed by the relevant parties, the FF will arrange for the container to be uplifted at the Port and delivered to the Consignee’s premises. The Consignee, Shirtee delivers the T-Shirt order to the T-Shirt Shop in London.

Step 10 - The container is unpacked by the Consignee (normally unpacked while the truck is still attached to the container) and the empty container is returned to the Shipping Line’s depot by the FF transport agent in a ―good clean condition‖.

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4. Types of Shipping Services CONTAINER OR LINER SERVICE

Containerisation is a system of intermodal freight transport using standard intermodal containers as prescribed by the International Organisation for Standardisation (ISO). These can be loaded and sealed intact onto container ships, rail wagons and trucks. Modern container shipping celebrates its 56th anniversary in 2012. Almost from the first voyage, use of this method of transport for goods grew steadily and in just five decades, containerships would carry about 60% of the value of goods shipped via sea. Shipping containers are usually made of aluminium, but other materials like steel, fibreglass or plywood are also used. They are designed to be entirely transferred to and from trains, trucks or trailers to and from a ship. There are several types of containers and they are categorised according to their size and functions. Liner Shipping Liner shipping could lay claim to being the world's first truly global industry. Likewise it could claim to be the industry which, more than any other makes it possible for a truly global economy to work. It connects countries, markets, businesses and people, allowing them to buy and sell goods on a scale not previously possible. And as consumers, we have become used to seeing goods from all parts of the globe readily available in the stores we visit. Liner shipping is the most efficient mode of transport for goods. In one year, a single large containership might carry over 200,000 container loads of cargo. Container shipping is different from conventional shipping because it uses 'containers' of various standard sizes - 20 foot (6.09 m), 40 foot (12.18 m) , 45 foot (13.7 m), 48 foot (14.6 m), and 53 foot (16.15 m) - to load, transport, and unload goods. As a result, containers can be moved seamlessly between ships, trucks and trains. Also known as TEU – Twenty foot equivalent and FFE – Forty foot equivalent A typical container has doors fitted at one end, and is constructed of corrugated weathering steel. Containers were originally 8 feet (2.44 m) wide by 8 feet (2.44 m) high, and either a nominal 20 feet (6.1 m) or 40 feet (12.19 m) long. They could be stacked up to seven units high. At each of the eight corners are castings with openings for twist lock fasteners.

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The container sizes need to be standardised so that the containers can be most efficiently stacked - literally, one on top of the other - and so that ships, trains, trucks and cranes at the ports can be specially fitted or built to a single size specification. This standardisation now applies across the global industry, thanks to the work of the International Organisation for Standardization (ISO) that in 1961, set standard sizes for all containers. Container types: Dry Containers, Containers that carry dry cargo, 20ft, 40ft, 40ft high cube (general purpose), Special Dry Containers, Bulk Containers, Flat rack Containers, Platforms (collapsible or fixed corner), Garmentainers, Half Height Containers, High Cube Containers, Open Top bulktainers, Open Sides, Platform or Blosters, Swap body, Tank containers, Ventilated Containers and Refrigerated Containers • General purpose dry van for boxes, cartons, cases, sacks, bales, pallets, drums in standard container, 20ft and 40ft • Bulk Containers, Bulk containers or dry bulk containers may be used to transport loose, free-flowing goods such as malt or grain. Some special dry bulk containers resemble tank containers. They may be emptied by gravity or by means of compressed air. • Flat Rack containers, the end sides can fold inwards (collapsible), can be used for boats, vehicle machinery or industrial equipment, heavy and bulky semi-finished goods, out of gauge cargo. • Garmentainers for shipping garments on hangers (GOH) (also known in certain circles as Hangtainer) containers are standard/dry containers that are converted/outfitted to be able to safely and conveniently carry garments on . •

Half height containers have been developed for heavy cargoes.

• High cube or Hi cube pallet wide containers, pallet compatibility, they are about 2 inches (5 cm) wider than standard containers to accommodate for Euro-pallets common in Europe. • Open top bulktainers for bulk minerals, heavy machinery, The Bulk container has been developed as a means of transporting pellets/granulates/chips/powder or any solid commodity which can be loaded and discharged in bulk. • Open side containers, may be used for vegetables such as onions and potatoes or for loading oversize pallets. • Platform or bolster, (also known as artificial tweendecks) a container floor without sides or end walls and does not have corner fittings, requires special gear to be loaded onto a vessel, for barrels and drums, crates, cable drums, out of gauge cargo, machinery, and processed timber. • Swap body units use many of the same mounting fixings as Intermodal containers, but have folding legs under their frame so that they can be moved between trucks without using a crane. They are generally lighter in weight. The containers flex during transport.

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• Tank container for bulk liquids and dangerous goods (non hazardous and hazardous liquids), a tank container is a vessel of stainless steel surrounded by an insulation and protective layer of usually Polyurethane and aluminium. • Ventilated containers for organic products requiring ventilation, For the most part, they are used to transport organic cargoes with high moisture contents, such as coffee and cocoa beans. Special equipment is intended to ensure that, as far as possible, sweat is prevented from forming. • Refrigerated containers for perishable goods, Frozen or chilled cargoes are moved in reefer containers. The container is 20 or 40' long with insulation and an electric refrigerator fitted in the front. Types of container services Although all containers have the same physical construction and appearance, five types of container services can be identified. The differences between such loads are not of a physical nature but are identified by ascertaining who the consignor(s) and consignee(s) of such container is/are: 

LCL/LCL Container Load – The abbreviation LCL means ―less than container load‖, the goods stuffed in this container are from more than one supplier and are consigned to more than one importer. Separate bills of lading are issued for each individual consignment. The container will be delivered to a depot/warehouse for unpacking.



FCL/LCL Container Load – the goods stuffed in this container originate from a single supplier, but is consigned to different importers. The container will be delivered to a depot/warehouse for unpacking.



FCL Container Load – The abbreviation FCL means ―full container load‖. The goods stuffed in this container are from one supplier and are consigned to one importer. This container will be delivered to the consignee directly once cleared by customs.



LCL/FCL Container Load – The goods stuffed in this container are from more than one supplier and are consigned to one importer. The container will be delivered directly to the consignee once cleared by customs.



FCL (Groupage) Container Load – The abbreviation FCL also means ―full container load‖ bus as this is a groupage container it differs from a FCL container. A FCL groupage container is one where a groupage agent consolidates various import consignments into one container. The groupage agent then consigns the container their association.

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10 Largest Container Ships – as of 2010 Built

Name

Length o.a. Beam

2006 Emma Mærsk 2009 MSC Danit

397.7 m

56.4 m

365.50 m

51.20 m 51 m

2009 MSC Beatrice 2008 CMA CGM Thalassa 2005 Gudrun Mærsk 2002 CLEMENTI NE MAERSK 2006 COSCO Guangzhou 2006 CMA CGM Medea 2003 Axel Mærsk

366 m

2006 NYK Vega

Maximum TEU 15,200 14,000 14,000

45.6 m

10,960

367.3 m

42.8 m

10,150

42.6 m

Owners

Flag

151,687 Maersk Line 153,092 MSC

Denmark Panama

346.5 m

348.7

GT

9,600

151,559 MSC 128,600 CMA CGM 97,933 Maersk Line 96000 Maersk Line

Panama Cyprus

Denmark Denmark

350 m

42.8 m

9,450

99,833

COSCO

Greece

350 m

42.8 m

9,415

99,500

France

352.6 m

42.8 m

9,310

93,496

338.2 m

45.6 m

9,200

97,825

CMA CGM Maersk Line Nippon Yusen Kaisha

Denmark Panama

Ten largest Container Shipping Companies

Ten largest container shipping companies in order of TEU capacity Updated January 2012

Company

TEU capacity

Market Share

A.P. Moller-Maersk Group

2,535,335

16.%

Mediterranean Shipping Company S.A.

2,121,747

13.3%

CMA CGM

1,342,190

8.4%

COSCO

648,157

4.1%

Hapag-Lloyd

645,462

4.1%

APL

626,106

3.9%

Evergreen Line

607,055

3.8%

CSCL

553,232

3.5%

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Hanjin Shipping

472,691

3%

MOL

434,337

2.&%

BREAK BULK SHIPPING SERVICE

In shipping, break bulk cargo or general cargo is a term that covers a great variety of goods that must be loaded individually, and not in intermodal containers nor in bulk as with oil or grain. Ships that carry this sort of cargo are often called general cargo ships. The term break bulk derives from the phrase breaking bulk — the extraction of a portion of the cargo of a ship or the beginning of the unloading process from the ship's holds. These goods may be in shipping containers (bags, boxes, crates, drums, barrels). Unit loads of items secured to a pallet or skid are also used.

There are many sorts of break bulk cargo but amongst them are: Bagged cargo – Cargo packed into bags. Baled goods – Cargo baled into manageable sizes. Barrels and casks – Cargo packed into wooden barrels or casks for unitisation. Corrugated boxes – Cargo packed into corrugated boxes for protection and unitisation. They are frequently loaded on pallets to form a unit load; if so the slings that are used to load the cargo are frequently left on to facilitate discharge. Wooden shipping containers – Cargo packed for unitisation and protection, normally breakable or easily damaged cargo. Drums – Liquid cargo unitised. Paper reels - Reels or rolls are generally stowed on their sides but care must be taken to make sure they are not crushed. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Cars - These are lifted on board and then secured using lashings. Steel girders - Any long heavy item should be stowed fore and aft. If they are stowed athwart ships they are liable to shift if the ship rolls heavily and pierce the side of the ship.

BULK SHIPPING SERVICE

Bulk cargo is commodity cargo that is transported unpackaged in large quantities. This cargo is usually dropped or poured, with a spout or shovel bucket, as a liquid or as a mass of relatively small solids (e.g. grain, coal), into a bulk carrier ship's hold, railroad car, or tanker truck/trailer/semi-trailer body. Smaller quantities (still considered "bulk") can be boxed (or drummed) and palletised. Bulk cargo is classified as liquid or dry. There are two main types of bulk cargo, Dry bulk cargo and Liquid bulk cargo.

TRAMP SHIPPING SERVICE

A tramp service or tramper on the other hand is a ship that has no fixed routing or itinerary or schedule and is available at short notice (or fixture) to load any cargo from any port to any port.. A tramp usually carries bulk cargoes in full shiploads, examples are coal, grain, timber, sugar, ores, copra, fertilisers, etc. Many of these cargoes are seasonal. In view of its nature of trade, tramp vessels are usually unspecialised conventional vessel with two to six cargo holds and built with large unobstructive hatches to facilitate conveyance of bulk cargo. Tramp companies are much smaller than their counterparts and their business demands an intimate knowledge of market conditions.

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5. The Key Role Players in Maritime Shipping SHIP OWNER

A ship owner is the owner of a merchant vessel (commercial ship). In the commercial sense of the term, a ship owner 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). Ship owners typically hire a licensed crew and captain rather than take charge of the vessel in person. If owned by a ship company, the ship owner usually performs technical management of the vessel through the company, though this can also be outsourced or relayed onto the shipper through bareboat charter. A ship owner can either run the ships themselves by opening offices in all the major ports and / or taking on the services of a ships agent to assist them.

SHIPPING AGENT

A shipping agent is employed by the shipping line at a shipping port and provides all the services required by a visiting ship to ensure the ships stay runs smoothly. A shipping agent sometimes only provides some of the services and the shipping line managers the balance with their own offices. In some instances the shipping line managers all of the services themselves without the need of a shipping agent. A shipping agent is a person who deals with the transactions of a ship in every port that the ship visits or docks. In simple terms, it is a shipping agent who with a local expert acts as a representative of the owner of the ship and carries out all essential duties and obligations required by the crew of the ship.

FREIGHT FORWARDER

A Freight Forwarder acts as intermediaries between importers and exporters, they seek out and then coordinate the most cost effective and fitting way to move goods between nations. A forwarder is not typically a carrier, but is an expert in supply chain management.

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In essence the Freight Forwarder’s role falls into four main areas: the provision of a range of independent services such as packing and warehousing; giving distribution advice; acting as a agent to source transport space; and acting as a principal to move goods across international frontiers.

SHIP BROKER

A ship broker is someone who arranges the employment of a vessel or buys and sells ships on behalf of his clients. Ship brokers act as intermediaries between ship owners and charterers or the buyers and sellers of ships. The broker is involved in many stages of a deal: presenting the business to potential clients, negotiating the main terms of a contract or sale, finalising the details of the contract and following the deal through to its conclusion. Increasingly ship brokers also provide their clients with a wide range of market intelligence and advice.

CARGO AND FREIGHT BROKER

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A cargo (freight) broker is an individual or company that serves as a liaison between another individual or company that needs shipping services. Though a cargo broker plays an important role in the movement of cargo, the broker doesn't function as a shipper or a carrier. Instead, a cargo broker works to determine the needs of a shipper and connects that shipper with a carrier willing to transport the items at an acceptable price. Often, cargo brokers are confused with freight forwarders. Though a cargo forwarder performs some of the same tasks as a freight forwarder, the two are not the same.

The main differences are: 

The main difference between the two is the responsibility they have in the business being made. The freight forwarder is responsible for the shipments while the cargo broker is responsible for organising the transaction between the two parties doing business between each other. A forwarder takes possession of the items being shipped, consolidates smaller shipments, and arranges for the transportation of the consolidated shipments. By contrast, a cargo broker never takes possession of items being shipped.



A freight forwarder is also known as a forwarding agent. This person is someone who takes care of the shipments of certain business transactions. The forwarder responsible for the bookings of shipment spaces for the transport of cargoes through ships, planes, trucks, or trains, commercial invoices, bills of lading, shipper’s export declarations, and other kinds of documents needed in shipping cargo.



The broker, on the other hand, is a third party who is responsible for the transactions of two parties. They are the middlemen for the buyer or the seller. These buyers and sellers may be individuals or companies. The broker gets a commission for every successful transaction he or she has done. When a broker acts as a middleman, he or she becomes a principal, or someone acting on behalf of the buyer or seller.

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CUSTOMS AND EXCISE

Customs and Excise refers to customs duty and excise duty. A tariff may be either tax on imports or exports (trade tariff), or a list or schedule of prices.

In certain countries, the national tax authorities that are responsible for collecting those duties are named Customs and Excise. Customs Duty Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country. A customs duty is a tariff or tax on the importation (usually) or exportation (unusually) of goods. In the Kingdom of England, customs duties were typically part of the customary revenue of the king, and therefore did not need parliamentary consent to be levied, unlike excise duty, land tax, or other forms of taxes. Excise Duty Excise or excise tax (sometimes called a duty of excise special tax) is commonly referred to as an inland tax on the sale, or production for sale, of specific goods; or, more narrowly, as a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.

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6. An Overview of Maritime Shipping Documentation International documentation is very complex as each country has its own specifications and requirements. The most widely used documents are listed below:                 

Ocean Bill of Lading House Bill of Lading Sea Waybill Digital Waybill Arrival Notification Bill of Entry Customs Entry Delivery Order Delivery Note Manifest Telex/e-mail release Commercial Invoice Certificate of Origin Insurance Certificate Mate’s Receipt Packing List Pro Forma Invoice

Ocean Bill of Lading A bill of lading (BL - sometimes referred to as BOL or B/L) is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. A through bill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto a ship or other form of transportation. Three main functions of a Bill of Lading 1. As Receipt for the 2. As Evidence of a contract of 3. As a Document of Title House Bill of Lading A House Bill of Lading is a B/L issued by a freight forwarder to a shipper as a receipt for the goods being shipped with other cargo as one consignment (usually as a full container load). The shipping company's (carrier's) B/L shows the forwarder as the consignor, and the name of forwarder's agent at the port of destination as the consignee. Sea Waybill Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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A sea waybill is a non-negotiable receipt issued by the carrier. Where the cargo is likely to arrive before the formal documents or where the shipper does not insist on separate bills for every item of cargo carried (e.g. because this is one of a series of loads being delivered to the same consignee). Delivery is made to the consignee who identifies himself. It is customary in transactions where the shipper and consignee are the same person in law making the rigid production of documents unnecessary. Sea waybill of lading has two main functions (1) receipt for cargo and (2) evidence of a contract of carriage. Digital waybill A digital waybill is an electronic version of a waybill, which has become very common as many shipments are ordered through the internet. The driving force behind the movement to the Digital Waybill has been the lowering of printing costs for shipping companies. The market has also benefited from cost savings through the reduction in telephone and fax costs due to the increased usage of the digital waybill. In some regions, it has been referred to as an e-Waybill however this is not the industry standard. Arrival Notification/Notice of Arrival Notice sent by a carrier or agent to the consignee (and to the notify party, if any) to inform about the arrival of the shipment and number of packages, description of goods, their weight, and collection charges (if any). This allows the consignee to prepare his documents for clearance in advance. This however is not a requirement of the shipping line to notify the consignee, the shipper is responsible for notifying the consignee. Bill of Entry or Customs Entry A bill of entry is a formal declaration to Customs describing goods which are being imported or exported. The bill of entry is examined by customs officials to confirm that the contents of a shipment conform with the law, and to determine which taxes, tariffs, and restrictions may apply to the shipment. This document must be prepared by the importer or exporter, with many companies hiring a clerk specifically to handle the process of preparing bills of entry. Delivery Order (D/O) Is a document from a consignor, a shipper, or an owner of freight which orders the release of the transportation of cargo to another party. Usually the written order permits the direct delivery of goods to a warehouseman, carrier or other person who in the course of their ordinary business issues warehouse receipts or bills of lading. A Delivery Order which is used for the import of cargo should not to be confused with delivery instructions. Delivery Instructions provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or vessel. Delivery Instruction Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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A Delivery Instruction or Delivery Note is a document accompanying a shipment of goods that lists the description, and quantity of the goods delivered. A copy of the delivery note, signed by the buyer or consignee, is returned to the seller or consignor as a proof of delivery. Manifest A manifest is a Transport document that serves as a tally-sheet, and gives a detailed summary of all bills of lading issued by a carrier (or its agent) for a particular voyage of a particular vessel or vehicle. For cargo carrying vessels or vehicles, a manifest lists its consignor, consignee, number, origin, destination, value, and other such information primarily for use by the customs authorities. Telex/Email Release of cargo Cargo may be released via telex release (historical reference, now email is used), if a Customer requests his cargo to be released at destination; but hands in his original Bills of lading, duly endorsed, at another shipping line office than the destination office. Commercial Invoice A Commercial Invoice is a document required by customs to determine true value of the imported goods, for assessment of duties and taxes. A commercial invoice (in addition to other information), must identify the buyer and seller, and clearly indicate the (1) date and terms of sale, (2) quantity, weight and/or volume of the shipment, (3) type of packaging, (4) complete description of goods, (5) unit value and total value, and (6) insurance, shipping and other charges (as applicable). Certificate of Origin A Certificate of Origin is a document that certifies a shipment's country of origin. It is used between members of a trading block or where special privileges are granted to goods produced in certain countries. Certificate of origin is commonly issued by a trade promotion office, or a chamber of commerce in the exporting country. Also called declaration of origin. Insurance Certificate An Insurance Certificate is proof of Insurance. Insurance is a risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event(s) beyond the control of the insured party. Under an insurance contract, a party (the insurer) indemnifies the other party (the insured) against a specified amount of loss, occurring from specified eventualities within a specified period, provided a fee called premium is paid. Mate’s Receipt A Mate’s Receipt is a document signed by an officer of a vessel evidencing receipt of a shipment onboard the vessel. It is not a document of title and is issued as an interim measure until a proper bill of lading can be issued. Packing List Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Itemised list of articles usually included in each shipping package, giving the quantity, description, and weight of the contents. Prepared by the shipper and sent to the consignee for accurate tallying of the delivered goods. Also called bill of parcels, packing slip, or unpacking note. Pro Forma Invoice An abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges. Pro forma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in importation. They differ from a normal invoice in not being a demand or request for payment.

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7. Maritime Shipping Terminology - Glossary of Industry Terms Agent / Agency An organisation working on behalf of a principle. Company whom represents/acts on behalf of another entity. Arrival Notice (ANF/AN) An advice that the carrier or forwarder sends to the consignee advising of goods coming forward for delivery. Pertinent information such as bill of lading number, container number and total charges due from consignee etc, are included and sent to consignee prior to vessel arrival. This is done gratuitously by the carrier or forwarder to ensure smooth delivery but there is no obligation by the carrier or the forwarder to do so. The responsibility to monitor the transit and present him to take timely delivery still rests with the consignee. BAF Bunker Adjustment Factor - an adjustment to shipping companies' freight rates to take into account fluctuations in the cost of fuel oil (bunkers) for their ships. Bank Guarantee A document issued by a bank acting as a guarantor for their customer. The bank's guarantee is accepted because of their status and creditworthiness compared to that of their customer. Often used in conjunction with major projects, in the form of Bid Bonds, Performance Bonds and Warranty Bonds, commonly for 10% of the contract value, all of which provide the buyer with a measure of comfort should the seller not fulfil his obligations at various stages of the contract. B/B Breakbulk. Berth The place beside a pier, quay or wharf where a vessel can be loaded or unloaded. Bill of Lading (B/L) A document that establishes the terms between a shipper and a transportation company. It is a document of title, a contract of carriage or in layman's terms a receipt for goods being transported or shipped. Bonded The storage of import goods under charge of customs viz. Customs seal until the import duties are paid or until the goods are re-exported.

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Bonded Carrier A carrier licensed by Customs to carry Customs-controlled merchandise between Customs points. Old Dominion is a bonded carrier. Bonded Warehouse A warehouse authorized by Customs for storage of goods on which payment of duties is deferred until the goods are removed. Booking Arrangement with a steamship company for the acceptance and cartage of freight. Booking Number A reference number for bookings registered with a carrier. It should be unique without duplication for a three-year period. Box Colloquial term for a shipping container. Box Rate A lump sum charge to move cargo in containers from origin to destination. Box Colloquial term for a shipping container. CAF Currency Adjustment Factor. Carrier Is a term referring to a Shipping Line, Freight Forwarder or NVOCC Carrier Haulage The inland transport service, which is performed under the sea-carrier’s responsibility under the terms and conditions of a tariff and of the relevant transport document (B/L) CBM (CM) Cubic metre. – 35.314 cubic feet. Cell Position The location of a cell on board of a container vessel identified by a code for successively the bay, the row and the tier, indicating the position of each container on a vessel. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Certificate of Origin A certificate stating the country of origin of the goods. Depending on the importing country's requirements, this can be as simple as being issued by the seller or the manufacturer. In most cases however, it is required to be issued by a Chamber of Commerce in the country of origin. Combined Transport B/L Transport document providing for a combined transport by a least two different modes of transport from a place at which the goods are taken to a place designated for delivery under the responsibility of the Carrier. Commercial Invoice A document issued by the seller, addressed to the buyer, giving details of the individual transaction, including complete description of the goods, prices, currency, delivery and payment terms and so on. This is generally used by the Customs authorities in the importing country to assess customs duties payable. Commodity Indication of the type of cargo. Congestion Accumulation of vessels at a port resulting in waiting time for arriving vessels to load or discharge for a vacant berth. Consignee The party shown on the bill of lading or air waybill to whom the shipment is consigned. Need not always be the buyer, and in some countries will be the buyer's bank. See also Bill of Lading - Order B/L and Notify Party. Cross-Docking The process of moving merchandise directly from the receiving dock to the shipping dock eliminating the need to place the merchandise in storage. Currency Adjustment Factor (CAF) A surcharge percentage applied to freight rates to reflect currency fluctuations between currencies. Customs: Government agency charged with enforcing the rules and regulations passed to protect the country's import and export revenues. Customs Bonded Warehouse A public or privately owned warehouse where dutiable goods are stored pending payment of duty or removal under bond. The storage or delivery of goods are under the supervision of customs officers and if the warehouse is privately owned the keeper has to enter into a bond Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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as indemnity in respect of the goods deposited, which may not be delivered without a release from the customs. Customs Duties and Taxes The documents, duties or taxes that you may be required to produce and or pay vary depending on your status for entering the country. The regulations are subject to change without notice. Each situation is individual and unique. You could be entering as a returning citizen, a retiree, a student, with a work visa or a tourist visa just to name a few. It is essential that you contact the consulate or embassy for your destination country or visit your destination country's government Customs website for the latest updates in regulations or requirements. If you cannot find the information you need on the website, there is always a way to contact Customs via email and you can then ask questions unique to you and your shipment. It is your responsibility to have the proper documentation available for the Customs Clearance Agent. Customs Clearance Agent The person who facilitates the paperwork for normal customs clearance of your shipment. CY Container Yard - place or depot where individual containers are held prior to loading on board a ship and after unloading from the ship. Can be inland or at the dock-side. Dangerous Goods Cargo of a hazardous nature as classified under IMO regulations. The term used by IMO for hazardous materials which are capable of posing a significant risk to health, safety or property while being transported. Dangerous Goods Declaration Document issued by Shipper in accordance with applicable conventions or regulations, describing hazardous goods or materials for transport purposes, and certifying that the latter have been packed and labelled in accordance with the provisions of the prevailing conventions or regulations. D/D Door/Door. Delivery Note A document evidencing the delivery of a shipment to a Consignee. Delivery Order A document authorizing delivery to a nominated party of cargoes in the care of a third party. The document is issued by a carrier or a forwarder on surrender of a bill of lading and then used by the merchant to transfer title by endorsement. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Destination: the location where a shipment ends its movement. Demurrage (Port levied charges) Additional charge imposed for exceeding the free time included in the freight rate while in the port, normally back to back recovery of port levied charges. Detention (Carrier levied charge) Charges raised by the carrier or the forwarder for detaining container/trailer at customer premises for a period longer than that provided in the Tariff of the carrier or the forwarder. This is to recover loss of earning on the container and encourage the Consignee to return the container to the Carrier as agreed. Devanning The removal of cargo from a container. Also known as unstuffing, unloading or stripping. Discharge The unloading of a vessel or vehicle. Discharge Port Port where cargo is unloaded form vessel. Dock Receipt A document used to acknowledge receipt of cargo or container at a Container Freight Station, a Container Yard or a Container Terminal. When delivery of an expert shipment is completed, the dock receipt is surrendered to the vessel operator or the operator's agent in exchange for the ocean or house bill of lading. Door to Door Service (D/D) Your household goods are picked up at your door (origin in the US -- can be your home or a storage facility) and delivered to your door in your destination country (can be your home or a storage facility). Customs clearance will be handled (paperwork facilitated by Customs Clearance Agent) for you. Door to Port Service (D/P) Your household goods are picked up at your door (origin in the US -- can be from your home or a storage facility) and discharged at the port of destination. You will need to clear your shipment through Customs and arrange to have your items picked up and delivered to your home or storage facility. Dry Reefer Reefer container used to carry dry cargo not requiring temperature control, normally use in a repositioning exercise where the Carrier has not reefer cargo on a back leg. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Dunnage Lumber or other material used to brace materials in carrier's equipment or containers. Dwell Time It is expressed in terms of number of days that a container changed from one status to another, e.g., from inbound load to empty available to outbound load. The shorter the dwell time, the more efficient the container utilization will be. Endorsement The transfer of the right to obtain delivery of the goods from the Carrier by means of the Consignee’s signature on the reverse side of a Bill of Lading. En route Along the route of movement. ETA Estimated Time of Arrival, when your shipment is estimated to arrive in your destination country. ETD Estimated Time of Departure, the time and or date your shipment leaves the US. Export The shipment of goods to another country. Extra Loader Additional vessel brought into schedule to cater for increase in demand ie seasonal fluctuations FAF Fuel Adjustment Factor. An ancillary charge on ocean freight shipments to account for fluctuations in fuel costs. FAK Freight All Kind. A system whereby freight is charged per container, irrespective of the nature of the cargoes, and not according to a Tariff. FCL Full Container Load. It is an arrangement whereby the shipper packs cargoes into a container provided by the carrier or the forwarder before delivering to the container terminal. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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FEU / FFE Forty foot (40’) Equivalent Unit. Commonly describes a 40- foot container. Feeder Vessel A vessel employed in normally short-sea routes to fetch or carry cargoes and containers to and from ocean-going vessels from the principle port hubs in a region to the minor ports. FFE / FEU Forty-foot Equivalent Unit (40' or 2 TEUs). Flash Point A temperature that when certain inflammable cargo reaches will trigger spontaneous ignition. It is an IMCO standard information requirement for dangerous goods. Flat Rack A device which is designed for cargos which will not fit into containers to be shipped on container ships. Consists of a base and two ends of the same dimensions as an ISO container. Flexitanks A polythene ―bag‖ which can be fitted inside a 20ft container for the transportation of nonhazardous liquids. Floating Crane Heavy-duty cranes brought in to handle cargo when unable to use gantry crane. A crane mounted on a barge or pontoon which can be towed or is self propelled. Force Majeure (Act of God) A clause in a contract which protects both parties in the event that part of the contract cannot be complied with due to causes outside the control of the parties and could not have been avoided by exercising due care. For example, floods, earthquakes, civil unrest and so on. Free Time Same as Free Storage Period. Free Storage Period (FSP) A carrier offers a period of time, normally three to five days, at destinations whereby imported containers or cargoes are allowed to be taken delivery by consignees free of any storage charge. After the FSP, there will be an overtime storage charge or demurrage levied by the carriers to the consignee. When bulk shipments are involved, the carriers are prepared to negotiate a longer FSP with the consignees. Freight Forwarder Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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A freight forwarder combines less-than-truckload (LTL) or less-than-carload (LCL) shipments into carload or truckload lots. Freight forwarders are designated as common carriers. They also issue bills of lading and accept responsibility for cargo. The term may also refer to the company that fills railroad trains with trailers. A person or corporation who arranges transport of goods on behalf of either the seller or buyer. In many cases the freight forwarder will also consolidate several small shipments into one larger one to take advantage of better freight rates. In most cases the freight forwarder will assume the legal liabilities of acting as a carrier. Freight Prepaid Freight and charges are required to be paid by a shipper before an original bill of lading is released. Gantry Crane A crane or hoisting machine mounted on a structure spanning an intervening space, which often travels on rails Genset (Generator Set) A portable power generator, which converts fuel into electrical power by mechanical means, and from which a reefer draws power. A clip-on generator set is mounted to the front of the refrigeration unit. An underslung generator set is mounted to the chassis upon which the reefer is mounted for handling and transport. The underslung generator set can be either side-mounted or centre-mounted on the chassis. G.R.I. General Rate Increase Gross Weight of Container Entire weight (mass) of goods, packaging and container, ready for shipment. Groupage The combination of many small shipments into one container. Hangertainer Specialised container equipment with hanger beams for the purpose of stowing garments. Hatch The opening in the deck of a vessel which gives access to the cargo hold. Hatch Cover Watertight means of closing the hatchway of a vessel. Haulage Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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The inland carriage of cargo or containers between named locations. Haulier The participating carrier responsible for drayage of containers, road carrier. Hazardous Goods Certain cargoes, as prescribed by the UN, such as explosive, radioactive, poisonous and flammable goods etc, which must be declared to the carrier before being loaded onto ships or aircraft. The penalties for mis-declaring or failing to declare hazardous or dangerous cargo are extremely high. Heavy Lift (H/L) Articles too heavy to be lifted by a ship's tackle. Heavy-Lift Charge A charge made for lifting articles too heavy to be lifted by a ship's tackle. High Cube Container (HC or HQ) Any container which exceeds 8 feet 6 inches (102 inches) in height, usually 9 feet 6 inches. Hinderland An inland area served by a particular port. Hold It is the part of the ship below decks where the cargo is stored. Hub Transshipment point in a service network, which serves points beyond that of a particular service by means of feeder vessels. IHC Inland Haulage Charge. Cost to move a container to an inland destination. IHL Inland Haulage. IMO International Maritime Organisation. I.M.C.O. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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International Maritime Consultative Organisation. A forum in which most major maritime nations participate and through which recommendations for the carriage of dangerous goods, bulk commodities and maritime regulations become internationally acceptable. IMDG Code International Maritime Dangerous Goods Code. Import To bring in goods from a foreign country. Import Licence A document required and issued by some national governments authorizing the importation of goods into their individual countries. In Bond A term, which indicates that an imported shipment was not cleared by Customs at the border, and is moving under a surety bond. In Transit In passage from one place to another. Incoterms Incoterms are a set of uniform rules codifying the interpretation of trade terms defining the rights and obligation of both buyer and seller in an international transaction, thereby enabling an otherwise complex basis for a sale contract to be accomplished in three letters. Incoterms are drafted by the International Chamber of Commerce. Interchange Transfer of a container from one party to another. Intermodal Pertaining to transportation involving more than one form of carrier: truck, ship and rail. Invoice Documentation supplying Customs with the type of goods, quantity, price of each type and terms of sale. The type of invoice required is determined by the shipment’s value. IT (In Transit) Type of Customs document governing movement of in transit (bonded) cargo. Laden On Board Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Statement on a Bill of Lading which indicates that a shipment has been loaded on board a vessel. Lashing Support for cargoes inside a container or a cargo hold to ensure that they are secured and will not be subject to rolling during the voyage from origin to destination. L/C Letter of Credit. LCL Less than Container Load, a small amount of cargo insufficient to on its own be economically shipped as FCL. It will be combined with other LCL cargo from other shippers going to the same destination port, into an FAK FCL. See also Consolidation. Lead Time The time elapsed between the request of a service and the actual provision of such service. Letter of Credit (L/C) A conditional order in writing, issued by a buyer's bank, guaranteeing to pay the seller upon presentation of stipulated documents, strictly in accordance with the credit. It is strongly recommended that every exporter and importer has a copy of the "Uniform Customs and Practice for Documentary Credits", International Chamber of Commerce publication 500. These are available from most major Chambers of Commerce, or from us at AUD 20.00 including postage, handling and GST, to Australian addresses only. Letter of Indemnity Guarantee from the shipper or consignee to indemnify carriers or forwarders for costs and/or loss, if any, in order to obtain favourable action by carriers or forwarders. It is customary practice for carries and forwarders to demand letters of indemnity from consignees for taking delivery of cargoes without surrendering bill of lading which has been delayed or is lost. Liner Vessel plying a regular trade/defined route against a published sailing schedule. Load List Container stuffing list. Load Port. Port where the cargo is actually loaded on vessel. Manifest

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A document that lists in detail all the bills of lading issued by a vessel or its agent or master, i.e., a detailed summary of the total cargoes or containers loaded in a vessel. Used principally for customs purposes. It is also called summary of Bills of Lading. Marine Insurance Broadly, insurance covering loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, piracy and various other causes but excludes losses that can be legally recovered. Marks and Numbers Marks and Numbers placed on packages for export for identification purposes; generally a triangle, square, circle, diamond, or cross with letters and/or numbers and port discharge. They are of important use before containerization. Mate's Receipt A receipt signed by a mate of the vessel, acknowledging receipt of cargo by the vessel. The individual in possession of the mate's receipt is entitled to the bill of lading, which in due course is issued in exchange for that receipt. Maximum Payload Maximum cargo that can be loaded into a container either by weight or volume. Merchant Shipper and/or Consignee and anyone acting on their behalf, owning or entitled to possession of the goods. Merchant Haulage Inland transport of cargo in containers arranged and paid by the Merchant under Merchant’s responsibility. Mother Vessel Main vessel in a liner service designated to move containers from set origin point to set destination points on a regular basis Net Weight Weight of the goods alone without any immediate wrappings, e.g., the weight of the contents of a tin can without the weight of the can. Also called actual net weight No Show Cargo that fails to appear for the vessel it was originally booked. Notify Party

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The person or company to be advised by the carrier upon arrival of the goods at the destination port. NVOCC Non-Vessel Operating Common Carrier. Cargo consolidator of small shipments in ocean trade into containers at the port. OBL Original Bill of Lading. O/C Oncarriage. Movement of cargo by connecting Carrier to ultimate destination. On Board Cargoes or containers landed onto the cargo hold or the cells of carriers. On Board / Shipped On Board A notation on a bill of lading, indicating that not only did the carrier receive the goods in good order and condition, but they were also placed on board the ship. On Board Bill of Lading A Bill of Lading in which a carrier acknowledges that cargoes have been placed on board a certain vessel. The on-board date of bills of lading is the date on which liabilities of the carrier start. OOG Out of Gauge Cargo. Out of Gauge Cargo (OOG) Cargo which dimensions exceed the normal dimensions of a container, whether in length, width, height or a combination of same. Outturn Report Written statement issued by a stevedore detailing the condition of cargo discharged from a vessel along with any discrepancies in the quantity compared with the vessel’s manifest. Overheight Cargo Cargoes which exceed 9-1/2 ft. in height. They have to be stowed normally in an open-top container. Over Landed Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Cargo taken beyond original port of discharge. Packing List A document which details the contents, and often dimensions and weight, of each package or container. Per Diem Cost Per day. Charge on container held by customers for an extended time, charges levied upon a trucker due to late return of equipment. POD Port of Discharge. The port at which cargoes or containers are discharged from vessel. When transshipment is needed, there can be a number of PODs during the course of shipment until it reaches the final POD. POL Port of Loading. The port at which cargoes or containers are loaded onto vessels Positioning The transport of equipment from a depot to Shipper’s premises or from Consignee’s premises. Precarriage The carriage of cargo by any mode of transport from the place of receipt to the port of loading into the ocean vessel. Precarrier The carrier by which the cargo is moved prior to the port of loading. Prepaid Bill of Lading A Bill of Lading stating that freight has to be paid prior to the Bill of Lading being released to Shipper or Shipper’s designated party. Pre-trip Inspection (PTI) A technical inspection of Reefer containers prior to their being positioned for stuffing. Principal Party for whom another acts as agent. Pro Forma Invoice

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A sample invoice issued by the exporter before shipment, which the importer may require to arrange import approvals or apply for a letter of credit. It can also be used as an offer to sell goods. Proof of Delivery A receipt signed by the Consignee upon delivery. Purchase Order An order from a customer to a supplier for specific quantities of goods, materials, services or products at agreed terms of delivery and prices. PSC Port Service Charge, similar to APCA. Quotation Offer providing the price according to tariff for certain services to be provided or issued to a customer with specification on conditions for carriage. Reefer In the industry, it is the generic name for a temperature-controlled container. The containers, which are insulated, are specially designed to allow temperature controlled air circulation within the container. A refrigeration plant is built into the rear of the container. Reefer Cargo Cargo requiring temperature control. Reefer Plug Electrical outlet on ship or a terminal providing electrical current for maintaining temperature. Release Note A receipt signed by a customer acknowledging the delivery of cargoes. Return Cargo Cargo to be returned to original place of receipt. ROE Rate of Exchange. Rotation Sequence in which a vessel calls at the ports on her schedule. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Round Trip A voyage to a certain port or country and back again. Route The plan of movements of a vessel from the first port of call to her final destination. Routing The process of determining how a shipment (cargo) will be moved between Shipper and Consignee, between place of receipt and place of delivery. Said to Contain (STC) Term in a Bill of Lading declaring that the master and the Carrier are unaware of the nature or quantity of the goods in a container, particulars of which have been furnished by the Shipper. Schedule A timetable comprising arrival/departure times of ocean and feeder vessels and also inland transportation. Sea Way Bill Non-negotiable Bill of Lading used for through consignments, no original Bill of Lading required, proof of identity (of Consignee), only is required. Seal A metal strip and lead fastener used for locking containers, freight cars or truck doors. Seals are numbered for record and security purposes. Seal Record A record of the number, condition and marks of identification on seals made at various times and places, referring to the movement of the container between origin and destination. Shipper Owned Container (SOC) The container used for cargo shipment is owned by the shipper. Shipper's Load and Count Shipments loaded and sealed by shippers and not checked or verified by the carriers or forwarders. Neither the carriers nor the forwarders will assume any liability for shortages of cargoes as long as the container seal remains intact at the time of devanning. Shipping Order

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A set of documents of carriers or forwarders which allows the shippers to book shipping space with them. There are a number of copies with the same form and contents but with different names such as the 1st copy is called Shipping Order and the remainders are called Shipping Order Copy or Dock Receipt for different purposes such as space control, surveyor and sworn measurer, confirmation of receipt of cargoes/containers, etc. As EDI is more popular nowadays and used by both the shipper and Customs, hardcopy Shipping Order is no longer widely used. Short Landed Cargo volume count less than originally shipped. Short Shipped Cargo missing vessel that originally intended for due to Carrier’s option. Shut-out Cargoes or containers which are not loaded on-board the intended vessel in line with the Shipping Order confirmed with the carrier. Slot Space on board a vessel occupied by a container. Slot Charter A charter whereby the shipowner agrees to place a certain number of container slots at the charterer’s disposal. Spreader Device used for lifting containers and unitised cargo. Beam or frame that holds the slings vertical when hoisting a load. Stability The force that holds a vessel upright or returns it to upright if keeled over. Weights on the lower hold increase stability. A vessel is stiff if it has high stability, tender if it has low stability. Stack An identifiable amount of containers stowed in an orderly way in one specified location. Stevedore Terminal operator entrusted with the operation of loading and discharging vessels and various terminal activities Stowage A marine term referring to loading freight into the ships' holds. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Stowage Plan A plan indicating the locations on the vessel of all the shipments for the benefit of stevedores and vessel’s officers. Straddle Carrier Wheeled vehicle designed to lift and carry shipping containers within its own framework. It is used for moving, and stacking containers at a container terminal. Stripping (Devanning, Unstuffing, Unpacking) The unloading of cargo out of a container. Surcharge An extra or additional charge. Survey An inspection of a certain item or object by a recognised or certified specialist. Surveyor A specialist who carries out surveys. Switch Bill of Lading A Bill of Lading is re-made to effect movement from discharge port to final destination. Tank Container (Tanktainer) A tank, surrounded by a framework with the overall dimensions of a container designed for the transport of liquids or gasses in bulk. Tare Weight The weight of packing material or, in carload shipments, the weight of the empty freight car, or the weight of an empty container. Tariff A publication setting forth the charges, rates and rules of transportation companies. TEU Twenty-foot Equivalent Unit (20"). Terminal Handling Charge (THC) A charge of carriers for recovering the costs of handling FCLs at container terminals at origin or destination. Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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THC Terminal Handling Charge. Through Rate The total rate from the point of origin to final destination. Tracking The function of maintaining status information, including current location, of cargo and containers, whether full or empty. Transshipment Hub A port which is employed by a carrier for transshipping its carriers from one transportation line ( trade lane ) to another. Transit Cargo Goods onboard which upon their arrival at a certain port are not to be discharged at that port. Transit Port A port where cargoes received are merely en route and from which they have to be transferred and dispatched to their ultimate destination by coasters, barge and so on. Also called ―Transshipment Port‖. Transit Time Time vessel takes moving from one port to another. Twenty Foot Equivalent Unit (TEU) Unit measurement equivalent to one twenty foot container. Twistlock Device which has to be inserted into the corner fittings of a shipping container and is turned or twisted, thus locking the container for the purpose of securing or lifting. UCP Uniform Customs and Practice of Documentary Credit. The "bankers Bible" on Documentary Credit Interpretation issued by the International Chamber of Commerce ( I.C.C. ) UCP600 Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce publication 600, which lays out guidelines for banks to follow when dealing with L/Cs. (See also Letter of Credit). Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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Underdeck Stowage Cargo/container which is stowed below the main deck. Unit Train A train of a specified number of railcars, perhaps 100, wherein they remain in a unit for a designated destination or until a change in routing is made. Unstuffing/Unstripping Loading and devanning of containers Vanning A term sometimes used for stowing cargo in a container. Ventilated Container A container designed with openings in the side and/or end walls to permit the ingress of outside air when the doors are closed. Vessel (Ship) A floating, self propelled structure designed for the transport of cargo and/or passengers. Voyage A journey by sea from one port to another or, in case of round trip, to the same port. Voyage Number The numeric identification of a trip undertaken by a vessel on a fixed trade lane. Warehouse A place for the reception and storage of cargoes. Warehouse Receipt Receipt for goods deposited in a warehouse Waybill (WB) A document prepared by a transportation line at the point of a shipment; shows the point of the origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. A waybill is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination. Unlike a bill of lading, a waybill is not a document of title. Wharf Shipping College – Introduction to Maritime Shipping www.shippingcollege.com Global Qualifications for Global Positions Copyright of Shipping College 2012, this course may not be copied

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A place for berthing vessels to perform loading and discharging of cargo. Wharfage A charge assessed by a pier or dock owner against freight handled over the pier or dock or against a steamship company using the pier or dock. W/M Weight or Measurement.

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8. Quiz and Certificate Please return to our website www.shippingcollege.com and click on the Free Courses icon, in the left column you will find the quiz. Please note that this quiz which will cover the entire course and has a time limit. Once you have passed the Quiz then we will issue you an e-Certificate.

9. Recommendations We hope you enjoyed this course and found this useful in your role as a Maritime shipping professional. We highly recommend you enrol for the Diploma in Maritime Shipping for a more in depth learning of Maritime Shipping to further complement and support you through your Shipping career, we are highly accredited and recommended within the industry. Please visit our website www.shippingcollege.com for more information.

10. References and Credits We would like to take the time to acknowledge the below parties for their invaluable contribution to this course. Resource References: Wikipedia, Ehow, Thefreedictionary

Image Credits: Google images

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