Maritime Transport System Flashcards
In shipping we talk about derived demand, explain this expression,
Its not about the vessel. Its is about transporting goods from A to B
Make a sketch of a typical short shipping market cycle (also called ‘business cycle’ and explain the stages in detail including market sentiment.
The short cycle is 5-12
Trough phase - Freightrates<opex></opex>
Recovering phase - Supply/demand towards balance, freightrates=opax, groving optimism but still alot of pessimism
The pik, (bull market) - supply demand thighten, full speed, Freightrate> 3Xopex, speculative investment, overtrading & overordering, 2:nd price>nembuilding
The colaps phase, (bear market)
Expensive delivery of ships, business downturn, oversupply, sharp fall in freight, confused sentiment=reluctan to sell, 2:nd price is still high, is the party really over?!
Describe what a secular trend is
Long term cycle - ≈ 50 years
Tecnical changes
Economical changes
Reginol changes
List the four important innovations during industrial revolution (1833-1950) that radically transformed shipping and describe the implication it had on international trade and shipping.
1) Steam engin 17 => 5 dagar över atlanten
2) Steel hull - increase the strength and dwt
3) Scruve propeller - increase the manoverbility and the efficiencies of the steam engin and the bulk consumption
4) The Atlantic cable made it possible to speed up the communication and ship the right cargo.
The “four shipping markets” are distinct but closely correlated. Sketch a diagram showing the flow of cash and explain in words the waves of cash flows also referring to freight market level.
If the market is good and the companies are shipping gods for the freight market. If the market still groves the companies will look to expand, they cold eder look to the shipyard for a new ship or att det sale and purchase market for a 2:and hand one. Depending on the price difference and if its to small they probably will by a new ship. And when the market turns the companies that can’t make the the payment to the bank the will try to sell the ship on the sale and purchase market and if now one wants it then they have to sell it to the demolition market.
The ‘seven questions that define the design’
How will the ship be traded.
What cargo should the ship carry
How should the cargo be stowed in the ship
How should the cargo be handled
How fast should the ship go
How big should the ship go
How flexible should the ship be
Identify and explain the different duties and costs associated with timecharter and voyage charter.
Time charter: Crew, (Payment, food, travel, etc) Maintenance, (Repers, sparparts etc) Dry dock Insurance Operatin expense
Voyage charter: Bunker cost Port cost Canal fee Tug boat
Write out the following abbreviations and briefly explain what they mean
CoA
cgt
MoA
PCTC
Ro-Ro
COA = Contract of Affreightment - is a contract for a set volume over a set period that involves more than one shipload. The owner can use any of the ships agreed to fulfill the agreed transport.
cgt = compensated gross tonnes - is compensated gross ton which takes into account the “work/labour” for constructing a ship, a cgt is higher for a sophisticated ship than for a simple ship of same size. Used to compare output and productivity of shipyards as using gros ton is not telling the whole story.
MoA = Memorandum of Agreement - a non-legal bounding pre-sale document
PCTC = Pure Care and Truck Carrier
Ro-ro = Roll on, Roll off
The theory of Westline explains the westward movement of the maritime trading center in history. Already the Mesopotamians had some regulations in their MARITIME CODE. Describe this code and if we still today can see similarities in today’s high-tech shipping
The maritime code regulated ships to be hired at fixed rates depending on cargo size, Shipbuilding prices were related pro rata to size and builder provided a one-year guarantee for seaworthiness. Freight was paid in advance and a travelling agent had to account for all the sums spent.
Today there is no such thing as fixed rates, they fluctuate with supply and demand but generally the larger the ship the lower the rate per tonne. Shipbuilding prices are not fixed either but there is some relation to ship size but even more to type of ship. But still there is guarantee for seaworthiness though today construction is much more regulated in SOLAS. Paying freight in advance is common also today and we use agents to take care of the ship in port however the agent is no longer travelling with the ship.
Briefly explain the following shipping terms
Open ship
charterparty
SOLAS
Lightweight
Suezmax
Open ship - Is a ship without orders, looking for employment
charterparty - is the word for the contract for seatransport. Often standard contracts are used it sets the agreed terms and conditions such as laycan, freightrate etc
SOLAS - Regulate the safety of lives on sea
Lightweight - its only the ship, the things that is stuck to the ship
Suezmax - The biggest tanker that can pass through the Suez-cana, 120-200000 dwt
Maritime industry (sometimes referred to as “the maritime cluster”) can be divided into five groups. Sketch an overview of the maritime industry; add some examples and relevant figures. Identify the largest group.
Marin Activities
1)Vessel operating 47%
Ports, Marrianer ships, Naval, Cruises
2)Ship builders 13%
Merchantship, Naval, Marine equipment
3)Marine resources 8%
Offshore, Renewable energy, Minerals aggregate
4)Marine fisheries 15%
Fishing, Aqua culturre
5)Other related activites 18%
Biotec, Maritime tourism, satelites
Sea trade has evolved into three separate, but closely connected segments (‘types’ of shipping) each with a very different character. Still to some extent they compete for the same cargo. Define the three segments and their product differentiation. Give example of a technical solution related to this product differentiation of each segment.
Bulk
Large cargo filling the whole ship. Low cost! Low speed, low reliability, low security – larger ships and simple design (=little flexibility) gives the lowest cost/tonmile, used for transport of large volumes of low value good.
Liner (General cargo)
Cost less important at least for high value goods, speed used to be important due to inventory carrying cost (but now slow steam is used due to low demand and high bunker price), reliability and security more important, especially for high value goods and just-in-time consignments. The container is a typical general cargo.
Specialized cargo
cargo that is not easily handled in conventional ships, eg cars, forest products, refrigerated food, liquid gas etc.
Describe the mening of sesonal cycles.
Shipping are fluctuating in freightrates wich occur in a year.
Ex: The winter in Sweden for example the demand for oil increases and drops when the temperatur rises. Its the same with fruit and grain etc, it increases in the harvest.
Which parts are included in the freightmarket?
Spotmarket
Contract of affreightment
Periodmarket
Forward freight agreement
Describe the life of a vessel in the market.
New builder market => Freightment => 2:nd handmarket => Freightmarket => Scrappingmarket
The sippingmarket are divided in to two parts, describe them.
1) The transport as a service - Industrial shiping and the freightmarket
2) The ship asset, (asset play) - New building, scrapping, 2:nd hand
