Subject : Socio-economic Development of Maritime Industry

Module 1: Production of Shipping Services

Lesson 1: Evolution of International Seaborne Trade

Suggested Enrichment Activity:

1. Discuss the trend of the world seaborne trade from 1971 to

1982.

The trend of the world seaborne trade from 1971 to 1982.

1. There was an upward trend of the world seaborne trade

from 1971 to its peak in 1979 but was reversed in 1980, due to a

sharp decrease in oil shipments of nearly 180 million which was

not compensated by an increase in dry cargo from 1. 938 million

tons to 2.010 million ton.

2. There was a significant increase in trade in the middle

of 1970’s due to a reaction in major raw-material consuming

countries after its first oil shock in late 1973. The increase

in trade and average transport distance can be attributed to a

Massive stock-piling of basic raw materials and particularly of

oil, which in consequence has led to the famous oil glut of the

early 1980’s.

3. There was a downward trend in major trades particularly

oil cargoes after 1979, due to the recession in the world

economy of the late 1970’s and early 1980’s.

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 The major reasons why there was a spectacular growth in the

category of oil tankers where tonnage increased five folds

between 1960 and 1983 are:

1. the closure of the Zues Canal after June 1967 war in the

Middle East, which at a stroke considerably increased the

distance of many oil statements from the Arabian Gulf.

2. rapid growth of the tanker fleet

3. the reopening and improvement of this canal

4. the use of pipeline alternatives

5. the 1973 and 1979 “oil shocks”

6. recession and oil conservations measures

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 Module 1: Production of Shipping Services

Lesson 2: Evolution of the World Merchant Fleet and its

Productivity

Suggested Enrichment Activity

Discuss briefly the structure of the world fleet by types of

vessels.

The structure of the world fleet by types of vessels.

1. Bulk Carriers :

The work horses of the fleet – these transport raw

materials such as iron ore and oil. Identifiable by te hitches

raised above deck level which cover the large cargo hold.

2. Container Ships:

They are cargo ships that carry their entire load in truck-

size conrainers, in a technique called containerization. They

form a common means of commercial intermodal freight transport.

They are designed in such a manner that no space is wasted.

Their capacity is measured in TEU (twenty foot units) this is

the number of a 20 foot containers that a vessel can carry. The

major of containers used today are 40 in length . Above certain

size, container ships do not carry their own loading gears.

Hence loading and unloading can only be done at ports with the

necessary cranes.

It carry most of the worlds manufactured goods and

products, usually through scheduled liner services

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3. Tankers :

Transport crude oil, chemicals and petroleum products.

Tankers can appear similar to bulk carriers, but the deck is

flush and covered by oil pipelines and vents.

4. Ferries or Cruise Ships or Passenger Ships:

Ferries usually performs short journeys for a mix of

passengers. Cars and commercial vehicles. Most of this ships are

RO-RO ( Roll on Roll off) Ferries where vehicles can drive on

or off, making it in speedy and easily vehicle accessible way to

travel.

Demands for cruise ships expanded greatly during 1980’s

leading to a new generations of large and luxurious “ floating

Hotels”.

5. Specialist Ships:

Such as anchor handling and supply vessels for the offshore

oil industry, salvage tugs, ice breakers and research vessels.

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 Module 2: Type of Ship Operation

Lesson 1: Tramp Shipping

Suggested Enrichment Activity

Briefly describe principal bulk cargoes and the geographical

structure of their movements.

Bulk cargoes - is used to describe commodities such as

crude oil, iron ore and coal that are usually shipped in large

volumes and are homogenous. In other circumstances the term bulk

cargo is used to refer to any consignment of cargo that is

transported in a ship load . Under this definition cargoes such

as refrigerated milk, chilled bananas and motor cars could all

be classified as bulk because they are transported in ship

loads.

Both definitions highlight an important aspect of bulk

cargo. The first emphasizes the handling characteristics of the

cargo while the second emphasizes the way in which it is

actually transported by sea, so that both are technically

correct within their own terms of reference. The general

definition is that bulk cargo is any cargo that is transported

by sea in large consignments in order to reduce unit costs. This

definition helps to focus attention on the ultimate objective,

which is to reduce costs, rather than the means by which the

objective is achieved. Ex. The cargo handling method, or the

type of ship used.

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 As far as bulk cargo is concerned, crude oil, and the five

major bulks are shipped almost exclusively in bulk vessels. In

the minor bulk trades, however many of the commodity groups

straddle liner and bulk shipment, owing to a combination of

factors, including low volume, irregular shipment handling and

stowage difficulties and most importantly , the fact

manufacturing plants do not wish to received large consignment

cargoes.

In the future new countries such as South Korea may refuel

the growth of demand for bulk shipping, but for Europe and Japan

the growth pace is clearly over.

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 Module 2: Types of Ship Operations

Lesson 2: Liner Shipping

Suggested Enrichment Activity

Illustrate the Organizational Chart of Liner Shipping and

enumerate the functions of every personnel.

Answer:

The Organizational Chart of Liner Shipping and the

functions of every personnel:

1) The Secretariat – also called the general affairs department

or management department which is usually headed by the General

manager or is directly subject to his authority.

a. Concerned with the general policy of the company ssuch

as: agreement, capital and shares, legal matters, appointment of

executive personnel

b. Provide consultancy services

2) Operating Division – the heart of every shipping company

a. Primarily responsible for the trading of a ships

b. Responsible for appointment and control of agents,

issuing of voyage instruction, voyage accounting, etc. which

maybe confined to the freight departments.

3) Technical Division: The manager who is normally the Chief

Engineer of the company and the officer of the Technical

Division are responsible for the following:

a. the technical operating of the company’s vessel

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 b. main and auxiliary engines, boilers and pipes,

electrical installation, cranes, winches and cargo pumps

c. preparations of plans and repairs for the ships

d. asks to study offers from shipyards

e. responsible for contacts with the classification society

f. promotion of spare parts for the ship

g. appointments for engineers and training

h. has to care of technical matters relative to the

company’s ships.

4. Marine Division – a division corresponding to the Technical

Division but usually dealing with deck operation and responsible

for the following:

a. nautical equipment

b. manning of ship

c. victualing and catering

d. deck equipment

e. safety and safety equipment

5. Administrative and Finance division – deals with the

financial management of the company and other responsibilities

such as:

a. accounting

b. analysis of financial ratios

6. Conference Division – it carries out the conference business

which involves the following issues:

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 a. membership

b. tariff agreements

c. cargo allocation

d. rebates and surcharges

e. policy towards outsiders

7. Research and Development Division – it is found only in large

companies and deals with the long-term development of the

company

a. carries out pre-investment investigations

b. carries out analysis of freight markets

c. studies new concepts in cargo handling and transport

d. data regarding stability

8. Personnel department – in large companies the problem of the

short staff is dealt with by a separate personnel department.

Its responsibilities are:

a. employment of the company’s administrative personnel

b. salaries and pensions

c. annual and sick leave

d. industrial relations

e. education and training

f. appointment of personnel.

9. Public Relations Department – it is found only in large

companies and responsible of the following:

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 a. maintaining good image of the company to the outside

world

b. deals with publishing of booklets

c. advertising

d. publicity

e. organizes receptions for visitors.

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 Module 2: Types of Ship Operation

Lesson 3: Tanker Shipping

Suggested Enrichment Activity

Draw the Organizational Chart of Tanker Shipping and discuss the

functions of every personnel.

The Organizational Chart of Tanker Shipping and the

functions of every personnel:

1) The Secretariat – also called the general affairs department

or management department which is usually headed by the General

manager or is directly subject to his authority.

a. Concerned with the general policy of the company such

as: agreement, capital and shares, legal matters, appointment of

executive personnel

b. Provide consultancy services

2) Operating Division – the heart of every shipping company

a. Primarily responsible for the trading of a ships

b. Responsible for appointment and control of agents,

issuing of voyage instruction, voyage accounting, etc. which

maybe confined to the freight departments.

3) Technical Division: The manager who is normally the Chief

Engineer of the company and the officer of the Technical

Division are responsible for the following:

a. the technical operating of the company’s vessel

11
b. main and auxiliary engines, boilers and pipes, electrical

installation, cranes, winches and cargo pumps

c. preparations of plans and repairs for the ships

d. asks to study offers from shipyards

e. responsible for contacts with the classification society

f. promotion of spare parts for the ship

g. appointments for engineers and training

h. has to care of technical matters relative to the company’s

ships.

4. Marine Division – a division corresponding to the Technical

Division but usually dealing with deck operation and responsible

for the following:

a. nautical equipment

b. manning of ship

c. victualing and catering

d. deck equipment

e. safety and safety equipment

5. Administrative and Finance division – deals with the

financial management of the company and other responsibilities

such as:

a. accounting

b. analysis of financial ratios

12
6. Personnel department – in large companies the problem of the

short staff is dealt with by a separate personnel department.

Its responsibilities are:

a. employment of the company’s administrative personnel

b. salaries and pensions

c. annual and sick leave

d. industrial relations

e. education and training

f. appointment of personnel.

9. Public Relations Department – it is found only in large

companies and responsible of the following:

a. maintaining good image of the company to the outside

world

b. deals wit publishing of booklets

c. advertising

d. publicity

e. organizes receptions for visitors.

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 Module 2: Types of Ship Operation

Lesson 4: Passenger Shipping

Suggested Enrichment Activity

Illustrate the organizational chart of the merchant

passenger’s vessel. Enumerate and discuss the function of each

department under such vessel and the duties and responsibilities

of every personnel under a particular department.

Answer:

The Organizational Chart of Liner Shipping and the

functions of every personnel:

1) The Secretariat – also called the general affairs department

or management department which is usually headed by the General

manager or is directly subject to his authority.

a. Concerned with the general policy of the company ssuch

as: agreement, capital and shares, legal matters, appointment of

executive personnel

b. Provide consultancy services

2) Operating Division – the heart of every shipping company

a. Primarily responsible for the trading of a ships

b. Responsible for appointment and control of agents,

issuing of voyage instruction, voyage accounting, etc. which

maybe confined to the freight departments.

14
3) Technical Division: The manager who is normally the Chief

Engineer of the company and the officer of the Technical

Division are responsible for the following:

a. the technical operating of the company’s vessel

b. main and auxiliary engines, boilers and pipes, electrical

installation, cranes, winches and cargo pumps

c. preparations of plans and repairs for the ships

d. asks to study offers from shipyards

e. responsible for contacts with the classification society

f. promotion of spare parts for the ship

g. appointments for engineers and training

h. has to care of technical matters relative to the company’s

ships.

4. Marine Division – a division corresponding to the Technical

Division but usually dealing with deck operation and responsible

for the following:

a. nautical equipment

b. manning of ship

c. victualing and catering

d. deck equipment

e. safety and safety equipment

5. Administrative and Finance division – deals with the

financial management of the company and other responsibilities

such as:

15
 a. accounting

b. analysis of financial ratios

6. Conference Division – it carries out the conference business

which involves the following issues:

a. membership

b. tariff agreements

c. cargo allocation

d. rebates and surcharges

e. policy towards outsiders

7. Research and Development Division – it is found onl in large

companies and deals with the long-term development of the

company

a. carries out pre-investment investigations

b. carries out analysis of freight markets

c. studies new concepts in cargo handling and transport

d. data regarding stability

8. Personnel department – in large companies the problem of the

short staff is dealt with by a separate personnel department.

Its responsibilities are:

a. employment of the company’s administrative personnel

b. salaries and pensions

c. annual and sick leave

d. industrial relations

e. education and training

16
 f. appointment of personnel.

9. Public Relations Department – it is found only in large

companies and responsible of the following:

a. maintaining good image of the company to the outside

world

b. deals with publishing of booklets

c. advertising

d. publicity

e. organizes receptions for visitors.

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