Chapter 1 Flashcards
Learn and explain the 50 shipping terms
NB
What is a bill of lading?
A bill of lading is a legal document between the
shipper of goods and the carrier detailing the
type, quantity and destination of the goods
being carried. Also serves as a receipt
What impact did the construction of the Suez and Panama canals have on world trade?
Suez:
1. Reduction in travel distances (reduce distance from Asia to Europe by 600km)
2. Faster and more direct routes from steam ships
3. Asia more accessible, Britain benefited substantially
4. Suez important nowadays for Middle Eastern oil trade
Panama:
1. Distance between East and West coast reduced by 13000KM
What is the basic economic characteristic of the shipping industry?
More or less the ‘perfect’ market at work. Very few monopolies in shipping. Periods of boom and bust. Decreasing transport costs
What is the role of sea trade in economic development?
Key to success in a capitalist society is the division of labour and specialisation. Transport is the facilitator to unlock the benefits of specialisation by giving access to international markets
What is the Westline?
Historical movement of commercial trade along specific line in the northern hemisphere
What four innovations transformed merchant shipping?
- Steam engines (no more reliance on wind)
- Iron hulls protected cargo and allowed for bigger ships
- Screw propellors made ships more seaworthy
- Deep sea cable network allowed traders and ship owners to communicate
How did the shipping industry look in the second half of the 19th century?
- Tramp shipping - freight negotiated for each voyage
- Cargo liners - scheduled services at published rates
- Passenger liners - pax and mail on scheduled services
What is a tramp charter?
A tramp can carry anything to anywhere, and freight rates are influenced by supply and demand.
What were the three types of tramp charter?
Voyage charter
The voyage charter is the most common charter in tramp shipping. The owner of the tramp is obligated to provide a seaworthy ship while the charterer is
obligated to provide a full load of cargo.
Time charter
In a time charter the owner provides a vessel that is fully manned and equipped. The owner provides the crew, but the crew takes orders from the charterer. The owner is also responsible for insuring the vessel, repairs the vessel may need, engine parts, and food for ships personnel.
Demise charter (or bare boat charter)
The ship owner only provides a ship void of any crew, stores, or fuel. It is the Charterer’s responsibility to provide everything the ship
will need.
What are the three types of tramp charter?
Voyage charter
The voyage charter is the most common charter in tramp shipping. The owner of the tramp is obligated to provide a seaworthy ship while the charterer is
obligated to provide a full load of cargo.
Time charter
In a time charter the owner provides a vessel that is fully manned and equipped. The owner provides the crew, but the crew takes orders from the charterer. The owner is also responsible for insuring the vessel, repairs the vessel may need, engine parts, and food for ships personnel.
Demise charter (or bare boat charter)
The ship owner only provides a ship void of any crew, stores, or fuel. It is the Charterer’s responsibility to provide everything the ship
will need.
What major changes occurred after 1950 in the shipping industry?
Labour intensive ships replaced by cheaper capital
equipment and increasing size of operations to take
advantage of economies of scale. Tramps and passenger ships disappeared. Industry now consisted of Bulk carriers, Specialised ships, Container ships. + air freighter
Discuss the growth era from the 1950s
*Recovering from war - needed to reconstruct - need for steel and aluminium plus importing oil for power stations
*ending coincided with oil crisis of 1970s - lead in growth switched to Asian economies - Korea and then China
*Sea trade became network between North America, Western Europe and Japan
Current distribution of shipping trends?
Asia - 66% offloaded, 41% loaded. Followed by Europe
What are the three lessons from 5000 years of commercial shipping?
- Shipping plays central part in the World economy at each stage of development
- Basic economics of the industry have remained mostly the same
*Laws of demand and supply in terms of resources drives trade
*Ships, technology and customers change
*Nations change - directions of trade change - Shipping prospers during periods of political stability when world is prosperous and stable
