1. SHIP TYPES & MARKET ROLE

3. Ship Types
1.1 Liners
Ply along a fixed route on a regular schedule service between group of ports
Offer cargo space to all shippers
Liner operation involves adequately sized fleet
Designed to carry general cargo
Operate both deep and short sea services
Large volume of such cargo is container vessels
Large shore establishment

4. 1.2 Tramps Does not operate on a fixed sailing schedule
Trades in all parts of the world
Tramps companies are much smaller than liners’
Engaged under charter party: time or voyage basic, COA
Small shore establishment

5. 1.2 Tramps f) Mainly transporting bulk cargo, low intrinsic value such
as coal, ore ,grain, fertilizers
g) Shipowner negotiate a separate contract for each
employment
h) Procurement of cargo through broker
i) Freight vary according to ss/dd

6. 1.3 Specialized Vessels
Coal Carrier – Designed to convey coal in bulk in deep-sea trades usually 75,000 tones.
LNG Carrier – Cargo is contained in nine prismatic internally insulated aluminum tanks Temperature at – 162’C Tanks constructed of aluminum or nickel steel
Parcel Tanker – Designed to carry chemicals, petroleum products, edible oil and molasses (extract from raw sugar)
Passenger vessels – Operate in the short sea trade and have limited cabin accommodation

7. Refrigerated vessels – Designed for the carriage of frozen or chilled meat. Operate on liner service.
Ro/Ro Vessels – Vehicle ferry. Designed for conveyance of road haulage vehicles and cars
Timber carriers – provided with large unobstructed holds and large hatches
VLCC/ULCC - Oil carrying vessels in excess of 200,000 dwt

8. 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

9. 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

10. 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

11. 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

13. 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 (LPG) sophisticated freezing system
Liquefied Nitrogen Gas (LNG)

14. Sub-division of Tankers…cont
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 250,000) dwt
ULCC (over 350,000) dwt draft >25 meters
length >380 meters, breath 60 meters

15. The Development of Fleet of Container Ships

16. Classification by Generation
Type of Vessel
Capacity
Teus
DWT
Length m
Beam m
Max. Row
Draft
1st. Generation
<1,000
16,000
180 –
190 20 8
9.5
2nd. Generation
1,000 – 2,999
24,000
200 – 250 31 12
11.0
3rd. Generation
3,000 – 3,999
48,000
32.2 13
12.5
4th. Generation
4,000 – 5,999
58 ,000
39.6 16
13.5
5th. Generation
6,000 – 8,000
89,000
46.0
14.0
6th. Generation
12,000 -
18,000
120,000
180,000
400
50.0
60.0 24
17.4
21.0

17. Classification of Containership
Type of Vessel
Capacity Teus
# Row Abreast
DWT
Length M
Beam M
Draft M
Speed Knots
Barges
<10
2,200 45 16
4.3 12
Feeders
400 –
2,999
10-12
7,000
120 20
6.75 15
Panamax
3,000
3,999 13
48,000
250 -
280
32.2
12.5 22
Post
4,000
5,999
58,000
290
39.6
13.5 25
Super Post –
6,000
8,000
89,000
338
46.0
14.0
Mega
12,000
18,000
20 -24
120,000
180,000 50 60
17.4
21.0

18. Economy of Scale in Ship Capacity

19. Carrier Capacity Commercial Interest vs Financial/Investment Interest
Carrier capacity appear aligned with customer demand
Customers seek greater reliability at lower cost through end-to-end integration, tighter synchronization, and optimized supply chain services
….Which forces shipping lines to make a choice about where and how they want to play in this market…….strategic direction

20. Carrier Capacity..cont
Players need to assess their core competencies and the market opportunity to determine their strategic direction
e.g …..liner/tramp, choice of routes/loop, Atlantic/Pacific/Far East/Mediterranean/Middle East….Spot/Voyage/COA, 70/30,60/40 rule
…..COMMECIAL consideration
Strategic clarity.. focus on service, cost, and value

21. Carrier Capacity..cont
Capacity addition are concentrated towards mega-ships, since unit cost decreases as ship sizes increases
Near-term demand growth able to absorb capacity, later years unclear
Long term will depend on availability of ship building capacity
Korea, China, Japan….Samsung, Hyundai, Hanjin

22. Carrier Capacity-Future Scenario
Size matter, no doubt about it
Excellence service equally important. There will be a cultural shift from asset-centricity to greater balance between customer and asset focus
Top 10 players control 80% of the market
More free trade agreements spur sustainable growth
Shipping lines can segment the market more accurately

23. Ship Papers
Following papers are required by International Regulation, obligatory for the master to produce them to authority for inspection
Charter party/bills of lading
Cargo manifest
List of dutiable stores
Loadline Certificate or examption
Cargo ship safety equipment construction certificate ship license
Ship certificate

24. Ship Papers…cont Ship certificate of Registry Official logo
Radio Log Book
De-ratting certificate
Deck log book
Oil record book
Crew list

25. Ship Papers…cont
To Discuss on the Technical/ Operation Management in liner Shipping
To elaborate on Key Distinction between Liner and Tramp

26. Shipping Costs
Shipping is a capital intensive industry and the cost of running a vessel is beyond the imagination of a small industry player.
The various cost components of a shipowning company under various headings as below:
Capital costs
Voyage costs
Crew costs
Consumable stores
Vessel maintenance
Insurance
Drydocking

27. Shipping Costs depreciation
a) Loan repayment, interest payable, exchange rate amortization,
depreciation
b) Port charges, light dues, tug boat, bunkers (MFO, MDO),
communication
c) Salaries and allowance, joining and repatriation, victualing,
medical, crew insuranc EPF and other contribution, safety
shoes and overalls, training
d) Ship stores, water, map and charts, chemicals, lubricants
e) Paints, machinery spares, voyage survey repairs, survey fees
f) H&M, P&I, FD&D, War&Strike, Loss of hire, Crew insurance
g) Drydock, modification and upgrading

28. THANK YOU