S2 2023/2024

Question 1

Open liner conference/ liner alliance?

Answer 1

Imagine: A new shipping line wants to enter the Asia-Europe trade route. An open conference on this route allows them to join after meeting basic criteria like safety standards and cargo handling capabilities. This gives them access to established ports and potentially existing customer networks. However, they will also face competition from other members, potentially affecting their profit margins.

Question 2

(Closed) liner conference?

Answer 2

Imagine: A well-established shipping company operating on the North America-East Asia route wants to maintain its market share. Joining a closed conference on this route allows them to influence pricing and capacity decisions, potentially leading to higher profits. However, this restricts access for new entrants, potentially limiting competition and innovation in the long run.

Question 3

Explain the open conference

Answer 3

Open:
Membership: Easy to join, only a set of qualifications need to be met
Benefits: Access to established trade routes especially for new entrants, and benefit from established/existing customer bases
Drawbacks: Reduced control over pricing and capacity because of easier entry which means increased competition

Question 4

Explain the closed conference

Answer 4

Membership: Restricted entry, strictly controlled by existing members, based on experience, capacity and reputation
Benefits: Greater control over pricing, capacity and overall market stability. Limits competition leading to guaranteed higher profits for members
Drawbacks: Difficult to join, limits competition and innovation in shipping industry

Question 5

What is MARPOL and what is the function?

Answer 5

International Convention for the Prevention of Pollution at Sea. The regulations are for the prevention of pollution from oil, sewage, garbage, and air pollution from ships.

Question 6

What is ISPS and what is the function?

Answer 6

International Ship and Port Facility Code.
To set minimum security arrangements for ships, government, and port facility.
It can enhance maritime security by :
1. Identifying potential security threats
2. Establishing preventative measures against these threats
3. Defines roles and responsibilities of stakeholders.
Example:
-Gov should undertake risk assessments to establish the level of security threat in their ports
-Both ships and ports should appoint dedicated security officers and have formal security plans drawn up.
-Training for workers during emergency

Question 7

What is ISM and what is the function?

Answer 7

International safety management code.
-Ensure safety at life or sea
-Prevent human injury or loss of life
-Avoid damage to environment
ISM certification demonstrates:
-Safety management system is in accordance with ISM for dealing with safety and pollution prevention on board
-System is understood and implemented by those responsible for the various functions
-Key actions indicated in the system are being carried out

Question 8

As port operator, how to ensure vessels follow MARPOL?

Answer 8

1. Pre-arrival and departure procedures.
   -Implement mandatory reporting system for vessels entering and leaving the port.
   For example, the report should include information such as waste types and quantities onboard, last port of call and waste reception facilities used and any MARPOL-related incidents or equipment malfunctions
   2.Port reception facilities.
   Provide adequate and accessible reception facilities for various MARPOL waste steams, such as oil, noxious liquid substances, sewage, garbage. Also ensure these facilities are operated efficiently and with fair pricing, to avoid discouraging vessels to use them.
   3.Information and awareness
   Provide clear and accessible information to vessel operators about MARPOL requirements and local port regulations, translated into relevant languages.
   Organize training and workshops for port personnel to ensure they understand and can effectively enforce MARPOL regulations

Question 9

How to change traditional port to automated port?

Answer 9

1. Conduct a comprehensive feasibility study. This is to assess the technical, economic and social viability for automation.
   For example, evaluate if existing infrastructure can be retrofitted or requires complete overhaul for automation.
   Other than that Assess the costs of upgrading infrastructure, acquiring technology, and potential changes in workforce requirements.
2. Select the suitable automation technologies based on the study findings. For example, automated guided vehicles (AGVs), Automated stacking cranes (ASCs) and Automated terminal operating systems (TOS). Implement the chosen technologies through careful planning, installation, testing.

Question 10

Pros of automated port?

Answer 10

-Reduce the number of required workers by at least 45%
-Shortening the stay of the ship at the container terminal
-Reduction of human errors and delays.

Question 11

Cons of Port Automation?

Answer 11

-High capital investments
-Pushback from labor unions
-High maintenance costs
-Cyber security risks

Question 12

Demurrage?

Answer 12

Charge by shipping line to consignee for not pull the container out from port on time

Question 13

Detention?

Answer 13

Charged by shipping line to consignee for not returning the container on time

Question 14

Storage?

Answer 14

Time given by port. Charged by port to shipping line

Question 15

Name shipping route trades

Answer 15

1. Asia-North America Route, the biggest sea liner route
2. Asia-Europe Route
3. Intra-Asia Route
4. North Atlantic
5. Suez Canal

Question 16

What is FCL

Answer 16

Full Container Load.
-Cost effective for large shipment
-Security and control.
-Faster transit times due to faster processing and handling

-Less flexibility, wasted space and higher costs
-Higher upfront cost.

Question 17

LCL?

Answer 17

Less container load.
-Cost effective for small shipments
-Flexibility

-Slower transit times
-Less control and and security

Question 18

How to choose between FCL and LCL

Answer 18

1. Shipment size.
2. Budget. compare to FCL cost
3. Urgency and desired transit time.

Question 19

Function of BOL

Answer 19

1. receipt of goods
2. contract of carriage
3. Evidence of shipment