M1 Complete
M1 Complete
LOGISTICS MANAGEMENT
Shipping Industry and Business: MODULE1
1. Maritime Industry = anything related to the ocean, sea, ships,
navigation of ships from point A to point B, seafarers, ship
owning and other related activities..
2. Shipping Business = the act of carriage of cargo from point A to
another point using the ships which falls under the Maritime
industry..
3. Freight = the cargo that is carried using the shipping services
offered by the shipping lines using the ships which falls under
the Maritime industry..
4. Logistics Services = the processes involved in getting the cargo
from the manufacturers warehouse to the receiver’s
warehouse including arranging for shipping services offered by
the shipping lines using the ships which falls under the
Maritime industry..
5. Supply Chain = the whole granddaddy process comprising of all
aspects in a product cycle, for example from picking of the fruit
at a farm in Point A to delivering the fruit to the shelf at a store
in Point B using all of the above-mentioned industries,
businesses and services..
6. Trade = is the basic economic concept involving buying and
selling of goods and services, with compensation paid by a
buyer to a seller, or the exchange of goods or services between
parties.. Trade is the reason all above businesses from 1-5
exist..
Maritime Industry
It is fair to say that Maritime Transportation has been and still
remains the backbone of global trade and has been so since the
Egyptians, Greeks, Romans, Arabs, Indians, Chinese, Europeans all
started sailing and improvising the sailing methods from sailboats,
dhows, long boats, dragon boats, steamships to the current ULCVs,
VLOCs, VLCCs etc..
Maritime transportation is a derived demand whose main purpose is
to support trade, business and commerce – whether global or
domestic, whether cargo or people..
An estimated 89.5% of global trade is carried by sea.. As per
UNCTAD figures, in 2019, although the maritime trade growth and
port traffic growth were down, world seaborne trade reached a
volume of 11 billion tons with a predicted growth of +2.6% in 2019
and an annual average growth of +3.4% for the period 2019-2024..
An estimated 793.26 million TEUs were handled in container ports
worldwide in 2019 and as of now there are 6,145 active ships
carrying 23,657,724 TEUs around the world..
The growth, numbers and the volume involved makes the maritime
industry one of the most globalized industries in the world in terms
of ownership and operations..
Not just in terms of ownership, the Maritime industry also provides
employment for an estimated 1.65 million seafarers working in the
global merchant fleet across the world..
Here are a few stats for you to think of, about the Maritime Industry
(all stats compiled/shared from UNCTAD)..
Which country owns the most number of ships..??
By number of vessels
Trade Routes
Most of the world's shipping travels a relatively small number of
major ocean routes: the North Atlantic, between Europe and eastern
North America; the Mediterranean-Asian route via the Suez Canal;
the Panama Canal route connecting Europe and the eastern
American coasts with the western American coasts and Asia; the
South African route linking Europe and America with Africa; the
South American route from Europe and North America to South
America; the North Pacific route linking western America with Japan
and China; and the South Pacific route from western America to
Australia, New Zealand, Indonesia, and southern Asia. The old Cape
of Good Hope route pioneered by Vasco da Gama and shortened by
the Suez Canal has returned to use for giant oil tankers plying
between the Persian Gulf and Europe and America. Many shorter
routes, including coastal routes, are heavily traveled.
The ADVANTAGES of maritime shipping
We’ll begin by discussing the positive aspects of maritime shipping.
As we said, in some situations, these advantages will be enough to
tip the scales in favor of choosing maritime freight services.
To begin, the main cargo types should be defined. For the purposes
of this article, cargoes shall be divided into dry, liquid and
specialised, with each of these divided further into sub categories.
Dry cargoes include bulk, general and breakbulk, containers, reefer
and Ro-Ro. Liquid cargoes are predominantly oil based but may also
include chemicals and liquefied gasses. Specialised cargoes include
passengers, livestock and heavy-lift/project.
For dry cargoes with a high weight to cost ratio such as coal, grain
and ore, economies of scale have produced the modern bulk carrier.
These usually large vessels are divided up into several separate holds
covered by hatches. In port, cargo is loaded by conveyor and spouts
or by crane and grab. Some bulk carriers are geared (usually a crane
is located between each hatch) to allow the loading and unloading of
cargo at berths without the need for shore equipment.
For unloading, cranes with grabs are the norm although specialised
equipment may be used for certain cargoes. When vessels unload
using cranes and grabs, personnel and vehicles will often be placed
inside the holds to assist the process. Cargo will usually be unloaded
into hoppers and will then be transferred by conveyor to silos or
open storage, smaller vessels may discharge directly into road
vehicles.
General Cargo Vessels:
Although largely replace by bulk and container carriers, general cargo
vessels still operate throughout the world. Cargo is usually in the
form of pallets or bags and is known as breakbulk. There may be
specialised handling facilities for such cargo, but usually loading and
unloading is carried out using cranes and straps (for boxes) or slings
(for bags). Loose or irregular cargo is also carried, in this case the
vessel's crew and port stevedores will pack the cargo to minimise
damage and maximise the utilisation of space.
Container Vessels:
Reefer Vessels:
Ships designed to carry a refrigerated cargo usually comprising
perishable goods such as fruit or meat are known as "Reefer
Vessels". Cargo is stowed in holds which are then sealed and
temperature controlled. Traditional reefer vessels have been largely
replaced by the use of reefer containers which may be carried on
board a container vessel. Reefer containers only need a power
source to function although they are usually loaded to allow the
crew to inspect them during the voyage.
Ro-Ro Vessels:
Tankers are divided into separate tanks into which the cargo is
pumped via a pipeline system. Modern tankers have large and
segregated ballast tanks to allow them to sit lower in the water on
the return 'empty' journey to improve stability. Many tankers also
feature systems to add an inert gas to the tanks to reduce the risk of
fire and explosion.
Crude Carriers:
The largest ships afloat are the Very Large Crude Carriers (VLCCs) and
the Ultra Large Crude Carriers (ULCCs). These ships are designed to
load crude oil and transport it to refineries around the world where it
can be processed into petroleum products. The largest crude carriers
often load and unload at offshore buoys and terminals as they are
too large to enter most ports.
Product Carriers:
These vessels, which are generally smaller than crude carriers,
transport the refined products from larger terminals to smaller ports
around the world. Products carried can include petroleum, jet fuel,
diesel, asphalt, lubricating oil and tar. Smaller tankers are also used
to transport non-petroleum bulk liquids such as molasses and palm
oil.
Chemical Carriers:
Specialised Cargoes:
Most types of cargo could be considered as specialised due to the
specific loading, unloading or stowage arrangements required. Many
such cargoes are however, moved with such regularity and ease that
the term 'specialised' takes on a new meaning. For the purpose of
this article, it refers to cargoes that are either difficult to categorise
as dry or liquid, or to cargoes that are relatively difficult to handle.
Passenger Vessels:
Livestock Carriers:
These ships are often converted from other types of vessel and are
equipped with pens for large numbers of animals. The main
considerations during the transport of livestock are adequate
ventilation, food and water, but also the ability of the reception
facilities at the destination port to handle the cargo. Some livestock
carriers are reported to be able to transport up to 120,000 sheep. A
Common route for livestock carriers is Australia and New Zealand to
the Middle East.
Heavy-lift/Project Cargo Vessels:
These, mostly purpose built, vessels specialise in the transport of
extremely heavy or bulky objects such as other ships and large
industrial components. Some heavy-lift vessels are equipped with
high-capacity cranes to load at ports without a heavy-lift capability.
Other types are semi submergible, which allows a cargo to be floated
into position before the heavy-lift vessel de-ballasts to lift the cargo
out of the water.
Flag State
The term Flag State came to existence because of the usage of flags
as the symbol of the nationality or tribe the ships belong to from the
early days. The flag has come to be an officially sanctioned and very
powerful symbol of the State and is the visible evidence of the
nationality conferred by the State upon ships registered under its
national law. The ship’s flag displays the nationality of the ship,
under whose laws the ship is plying in the international waters.
Ship registration is the process by which a ship is documented and
given the nationality of the country to which the ship has been
documented. The nationality allows a ship to travel internationally as
it is proof of ownership of the vessel.
International law requires that every ship be registered in a country,
called its flag state. A ship is subject to the law of its flag state. It is
usual to say that the ship sails under the flag of the country of
registration.
A ship's flag state exercises regulatory control over the vessel and is
required to inspect it regularly, certify the ship's equipment and
crew, and issue safety and pollution prevention documents. The
organization which actually registers the ship is known as its registry.
Registries may be governmental or private agencies. In some cases,
such as the United States' Alternative Compliance Program, the
registry can assign a third party to administer inspections.
• Tonnage
Tonnage, in shipping, the total number of tons registered or carried
or the total carrying capacity.
There are five kinds of tonnage in use in the shipping business.
They are:
1. Deadweight,
2. Cargo,
3. Gross,
4. Net and
5. Displacement Tonnages
CUBICS
Global trade is facilitated by the transport and transfer of goods
between merchants on an international scale. Sellers and buyers
worldwide transfer large volumes of goods that are
transported mostly by large ocean cargo vessels.
The term Cubic Meter or CBM is commonly used in ports,
warehouses, and in the sea – air – land freight.
A cubic meter, abbreviated to CBM, is a measurement of volume that
is generally used for calculating storage space, storage charges, and
freight charges.
It is the volume of an object that is one meter wide by one meter
long by one meter high (1 m X 1 m X 1 m).
Cleansing
The efficiency of a bulk carrier in vastly accounted to its cargo holds
and the volume of cargo it can carry. The whole operation involving
the loading, the safe transfer and the unloading of the cargo is a
complex procedure requiring diligent preparation, a key part of
which is cargo hold cleaning. Despite the time pressure, this step
should not be neglected, as it can directly affect the bottom line of
the whole operation.
Complying with regulatory requirements of safe cargo cleaning is not
a simple task and involves taking into account equipment,
documentation needed, and properly trained crew, to make sure that
the cargo holds are properly cleaned after each discharge and
prepared to take the next load.
LIST AND TRIM
LIST is define as tilting of ship due to weight of cargo of ship(
generally uneven distribution of cargo in ship cargo hold) either
direction named as port side tilt or starboard side tilt but remember
this tilting must have axis of tilt and this axis is transverse axis of
ship.
listing of ship always avoided for the safety of ship its transverse
stability decrease as list increases.ship is most vulnareble in
transverse stability.( understanding of transverse stability further a
long topic to to describe )
TRIM is also defined as the tilting of ship but this tilting have
different axis name as longitudinal axis of ship. it is calculated
through difference between the forward and aft draught of ship, if
the difference between aft and forward is + then said as ship is
trimmed by stern or if (-ve) then said as trimmed by head. trimming
of ship is done purposefully for stability , propulsion and fuel
consuption reduction especially in ballast condition.( mean ship is
empty condition)
Description of a ship
Different Parts Of Ship And Their Function
1 ) Anchor
An anchor is a heavy metal piece attached to the chain cables and is
stored or secured in the hose pipe during the voyage / ship
operation. It can be either permanent or temporary with an
additional sub class of sea anchors.
All ships carrying anchors are of the temporary type; as they are not
always fixed to the same position and often lowered at different
position depending upon need. Together with its chain cables,
connecting devices, windlass and chain stopper it is called anchor
gear.
.
2 ) Bow
A bow is the front most part of a ship which cuts the water along its
sides as the ship proceeds. The key two requirement for a bow is to
have; minimum drag possible or so-called resistance between the
water and the ships hull and must be tall enough to avoid water
splashing to easily on top of it.
Function: Have you feel that extra effort you have to make to walk
through water? That is due to water drag and its resistance to your
body motion. So to reduce similar negative forces on ships body;
bow are placed on ship assisting easy propulsion.
3) Accommodation
It is a place on ship where the crew resides or live. Together with
offices, crew cabins, gym, prayer room ( Few ships ), salon,
recreation room, laundry, hospital and galley it is the heart of a ship
next to engine room and bridge.
A salon on board is the common area or living space for its crew,
passengers and any visiting authorities to interact; and often include
common room and dinning space. On another hand galley is just a
nautical term for kitchen; where food is prepared.
Function: An accommodation accounts for the living space of the
ship. it is stated to have proper provision for safety, accommodation,
health and accidents of crew on board ship. It is now required to
have hospital accommodation, proper ventilation, lighting, head
space, heating with adequate size of crew cabins.
4 ) Ships Hull
A hull is that part of ship that extends below the waterline to cover
and protect water from getting in. You can consider it as the shell
which protects the inside treasures from outside environment.
Everything that is stored and situated within the main ship structure
is covered and protected by the ships hull. It includes the key parts of
the ship such as bow, deck, the bottom keel and the both sides of
the ship.
Function: Made of steel the key role of ships hull is to maintain its
water tight integrity and reduce water drag. And so hull plays a
major role in determining overall efficiency of a ship.
Ships hull are thus coated with special paints that not only reduce
frictional drag but also avoid marine growth which further increase
the resistance to ships motion. Thus ships hull are cleaned and
repainted with special coating during dry dock operation.
.
5 ) Keel
A keel is a part of ships hull that is responsible for providing strength
to the ships structure; spreading stress and load equally along its
longitudinal sides.
Due to its this property to hold and support ship structure it is often
termed as the backbone of the ship. In simple terms it provide
stability to a ship and increase its effective speed. The introduction
of keel in shipping reduce much of the work regarding stabilizing ship
structure.
Function: Being one of the key parts of ship; it helps stabilize and
support ship structure. It also plays an important role increasing the
effective speed of a ship. With displacement of ship dependent upon
the depth of keel from water line; it is helpful to measure draft and
reserve buoyancy of ship.
6 ) Freeboard
A freeboard stands for the part of ships hull located above the
waterline. It is the distance between the upper deck of ship and the
point of waterline. The freeboard of a ship is not fixed but rather
depends on the amount of cargo it carries.
This puts a cap on the amount of cargo a ship can load. By law it is
required by ships to load only up to the load line marking for the
designated water type. Thus it is a must for ships to have proper load
line marking amidships on either side of the ships hull.
Function: The role of freeboard among different parts of ship is to
maintain ships stability and avoid it from sinking. Under ICLL 1996 (
International convention on load line ) following load line marking
are put on ships hull; Tropical Freshwater, Freshwater, Tropical,
Summer, Winter and Winter North Atlantic. These load lines ensure
that the ship have minimum sufficient freeboard at all times for safe
voyage.
7 ) Engine Room
An engine room is the power house of the ship located in the lowest
most deck on aft of the ship. It contains important machinery such as
main engine, auxiliary engine ( Alternator ), shafting, boiler, fresh
water generator, air compressor, calorifier, purifier, incinerator,
pumps, heat exchangers, workshop machineries etc.
Function: The key role of engine room is to hold all the key
machinery and auxiliaries required for different operations on board
ship. On deck one it usually has control panels for diesel generators
and pump, workshop, store room, settling tanks, service tanks, fresh
water expansion tanks, Inert gas platform, deck air compressor, air
bottles etc.
On deck two it contains; Fuel oil heaters, purifiers, boilers, main air
compressor, diesel generators, fresh water generator etc. While the
deck 3 mainly consist of main engine, different supporting coolers,
oily water separators etc.
8) Funnel
A funnel is what from which the exhaust gases are released into
atmosphere. You can consider it as the chimney of the ship. Since the
introduction of mechanized ship; it has been an integral part of the
ships structure.
Function: Being one of the parts of ship the function of a funnel is to
safely release exhaust gas produced in engine room to the outside
atmosphere. Together with the forward motion of the ship and
funnel inclination towards the aft; exhaust gas is easily moved away
from ship avoiding possible hindrance to ship navigation.