1. CARGO BROKING &
OPERATION 6

2. 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.

3. Module Content
Understanding Different Types of Bulkers and Container Ships
Introduction to International Ship Safety Procedures
Dry and Chemical Bulk Cargoes: Safety and Ship Types
Heavy Lifts and Project Cargoes
Offshore Supplies

4. Merchant Shipping
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
Offshore oil, mobile structure, supply ships
Non-cargo ships….tugs, dredgers, fishing boats, passenger ships, research ships

5. Six (6) General Cargo
Container-ship… cellular ‘lift on lift off” exclusively for carriage of containers
Ro-Ro… multi-deck vessels, no public area, carry cargo on deep-sea routes
Barge carrier … carry 500-ton standard barge which are floated or lifted on and off the ship
Reefer ships….refrigerated, palletised

6. Six (6) General Cargo
5) General cargo… purpose-built cargo liner, fast,
multiple decks, extensive cargo gears but poor
container capacity
6) Multi-Purpose ships… fast speed, good
container capacity, ability to carry break
bulk/other unitised cargo such as forest
products, heavy lifts and project cargo

7. Six (6) Dry Bulk
Bulk carrier..capesize (carry ore, coal), panamax (carry coal, grain), handymax, handy
Open hatch (designed for unit loads)
Ore carrier
Woodchip carrier
Vehicle carrier (multiple deck)
Cement carrier

8. Four (4) Oil and Chemical
Crude tanker….VLCC, suezmax, panamax
Product tanker…..crude tanker, long haul
Chemical tanker
Combined carrier
Two (2) Liquid Gas
Liquefied Petroleum Gas (LNG) sophisticated freezing system
Liquefied Nitrogen Gas (LPG)

9. International Ship Safety
Every 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

10. 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

11. 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

12. International Ship Safety…cont
The company should ensure that:
Inspections are held at appropriate intervals;
Any non-conformity is reported, with its possible cause, if known;
Appropriate corrective action is taken; and records of these activities are maintained

13. ISM CODE…..cont Internal Auditor External Auditor….. Jabatan Laut
- Initial Assessment….before issue certificate
- Periodic (verification) Assessment
- Renewal Assessment

14. 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

15. ISM CODE…..cont OFFICE (Auditor) -Document of Compliance (DOC)
Each Ship
-Safety Management Certificate (SMC)
- Non-conformance/compliance? … SMC withdrawn

16. 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……..?

17. Dry bulk Cargo : Safety/Types
Is a parcel transported in a single ship
Players are ship owner, operators, commodity traders, and cargo owners
Bulk carriers (4 sizes)
Handy (10,000-39,000) dwt
Handymax (40,000-59,000) dwt
Panamax (60,000-99,000) dwt
Capesize (over 100,000) dwt

18. Dry bulk Cargo : Safety/Types
In tanker business, there are six (6) sizes
Handy (10,000-59,000) dwt
Panamax (60,000-79,000) dwt
Aframax (80, ,999) dwt
Suezmax (120, ,999) dwt
VLCC (over 200,000) dwt draft >25 meters
ULCC (over 350,000)
length 380 meters, breath 68 meters

19. Classes of Bulk Cargo Liquid bulk e.g crude oil, oil products
Major dry bulk e.g iron ore, coal, and grain
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

20. Chemical Cargo/Ship & Safety
USA, 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 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

21. 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

22. 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

23. Chemical Cargo/Ship & Safety…cont
Three (3) ship types:
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
Bulk Chemical Tanker with average size
13,380 dwt, tank size >2,700, over 75% of tank
are segregated
Chemical Product Tanker with 51-75% tanks segregated, average tank size >2,700 cubic meters
Cargo 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

24. 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:
Lack of oxygen;
residue of cargo on tank walls/bottom;
Rust , sludge, cargo vapours when subjected to heat
Leakage from adjacent tanks

25. 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

26. Heavy Lift/Project Cargo
The 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.

27. 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.

28. 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

29. THANK YOU