Presentation on theme: "International Ocean Transportation Becoming a Master Unlimited."— Presentation transcript:
1 International Ocean Transportation Becoming a Master Unlimited. Maneuvering a ULCC is a job that a few people can handleIt is the responsibility of the Captain who have reached a precious tile “Master Unlimited.There are only 3000 of them world wide and there the only ones accredited to command the shipULCC is as long as four foot ball fields, & that , at cruising speed & fully loaded, it stops in a mere six miles if its engine is stopped. With full reverse it stops in 2 milesCaptains practice on simulators and training at Port Revel in FranceAfter few days of practice, they can squeeze 700’ behe-moth in 750’ space left between two other ships in port without the help of a tug.
2 The End of The Shipping Line Most ships after years of sea get damaged so much, they can not be economically usedIn addition as size of ship increases, shipping lines have a surplus of capacity which can be soldWhere do all these old ships end their lives?Many of them end up on beaches of Pakistan, Bangladesh or India where they are dismantled for a sale as scrapHalf of these ships die in Alan in Gujarat600 or so scrap businesses dismantle 400 ships every yearThese are dangerous & poorly paid jobs but provided employment to 200,000 workersDespite governmental protests about the impact of this business on health, image etc, it continues.
3 International Ocean Transportation Liner Ships – They make regular voyage on established routes. Two ports or more as scheduledLiner ship’s size depends on draft & ocean condition on the route, specific types of cargoTramp Ships : they operate whenever market dictatesThey do not operate on regular scheduleThey usually carry one type of cargoTramp vessel is like a taxi cab whereas a liner ship is like a public bus.
4 Size of Vessel : – Expressed in tons Dead Weight tonnage – (DWT) is the total capacity of the ship i,.e max weight of cargo ship can carry.Bunker – Fuel it needsStores – Supplies it needsRegistered tonnage – (GRT) total volume capacity of the ship measured in hundreds of cubic feetBut this not the cargo carrying capacityThis capacity is used to pay tax when registered or to ports when they visit or the channels they useOnce volume occupied by crew,engine, etc, is removed, the net registered tonnage is obtained
5 Displacement : The displacement tonnage is the total weight of the ship when fully loaded, measured by the weight or the volume of water it displacesLight tonnage – is the weight of the ship measured the same way, when the vessel is empty. Both the tonnages are used for stabilityPlimsol Lines : Ships are fully loaded” at different drafts is the function of season in which they are operating, latitude & density of water. The deepest a ship can sink is called the “tropical line”, summer line, winter line, Winter-North – Atlantic Line . Fresh water line in which ship sinks/sits more as density is low. All of these lines are painted on the hull & form a diagram called Plimsol mark.
6 The Plimsoll Mark T F L R F S T W WNA LR – Lloyd’s Register TF – Tropical Fresh WaterF – Fresh WaterT – Tropical SeasS – Summer SeasW – Winter SeasWNA – Winter, North Atlantic Ocean
7 Size Categories : The ships which pass through panama are called Panamax ship. Such ships have tons dead weight. They barely fit locks of panama which are 1000’ long & 110 ft wide. Longest ship to cross panama canal is Marcona Prospector 973’ Long, 106 ‘wide, The widest is USS New Jersey which is 108’ wide.Post – Panama ShipsSuez – Max Ships : DWT – 150,000 tons, 285 M long, 35 M wide & 23m draft. In 1996, Suez canal was widened & deepened
8 Capesize Ships –large dry bulk carriers of a capacity greater than 80,000 DWT Very large Crude Carrier – Oil tanker of upto 300,000 DWT, 350 m long, 55 m wide, 28 m draftUltra Large Crude Carrier – Oil tanker of more than 300,000 DWT. One of the largest ULCC built, the “Sea Giant” is 555,000 DWT. 415m long, 63m wide; 35m draft. Such a ship can not go to port but discharges cargo in deep sea by lightering
9 The largest container ship is Regina Maersk – 302 m long, 43 m wide &12 m draft & DWT – 65,600 ton. Types of VesselsContainership – 60% of world trade is containerized. They rely on port cranes to unload cargo. Some container ships have their cranes.Roll on/roll off ships – 1. Ships were created to accommodate cargo that was self propelled, such as automobiles etc.They are essentially floating parking garages.RORO ships have a portion of their hull that opens up and acts as a ramp on which the vehicles are driven before being parked, on decks of the ship.Opening on the side of the ship or its stern (rear). 5. Specialized equipment not required. 6. They have adjustable decks. 7. No stevedoring labor required. It is cheap
10 Break Bulk Ships Least homogeneous category of ships They are multipurpose ships which carry all sizes of cargoBecause of containerized ships, RORO ships, break bulk ships requirement is decreasingCargo being of different , require different handling equipmentSecuring load on decks is expensiveThey stay in ports longer as discharge rate is lowThey have flexibility of handling any cargoThey have crane on board therefore can handle cargo without difficultyAlmost no new break bulk ship has been built during the last 15 yearsCombination ships are increasing
11 Combination Ships Can carry allsorts of cargo in a single voyage They have several holds which hold all types of cargoIt has also tween deck or a deck below main deckVehicles, break bulk cargo can be accommodatedIt can also carry containersIt has cranesThey operate in shipping lanes that have low volume of trade
12 Lash Ships Lighter aboard ships (LASH) is quite versatile It carries a standardized units of cargoUnit is large in size 385 metric tonsUnit can also float, they are called (LASH) bargesThey are 18 m long, 9 m wide & 3 m deepEach barge is covered with a hatch cover & is watertightCapacity of ship is 80 Lash bargesIt allows very fast loading & unloadingThey can call on ports where lifting facilities are inadequateLoading & unloading at anchor possibleCargo barges can be delivered at any place
13 Crude Carrier Dedicated for petroleum products like crude Refined crude carrier called product carriersLarge ships can call on some ports onlyThey stay at anchor pointsCrude is discharged at anchorage point called lighterageFloating island is used for discharging crude. VLCC or ULCC are connected to floating island. by pipeline
14 Dry - Bulk CarriersOperate as oil tanker basisChartered for whole voyageAgricultural products, ores, scrap etcThey are generally small in size 10,000 DWTRefrigerated ships called “reefer ships”Some ships carry vegetable oils, etcChemical tankersGas CarriersThey carry LNG, LPGLong term contracts called time charter partiesThey have sailing schedule
15 Flying FlagChoice of flag has many consequences beyond training of crew, taxes the ship owners have to pay.Cabot age rules require that American flags & crews be used in US waterShips having no US flag can not travel within American Ports.Most of the cruise ships fly flags of countries such as Bahamas, or Secondary registries, such as that of NorwaySuch ships pay substandard wages & hours of work.
16 Passengers are oblivious about this problem When Hong kong rejoined the people’s Republic of China, in July 1997, a flag issue surfacedThey ultimately decided not to fly any flag in each other’s portsDuring the conflict between Iran & Iraq in the Persian Gulf, Several Kuwaiti Ship were temporarily placed under the US Flag so they could gain protection from US NavyFinally all crude carriers were given US Flag when they were in Persian Gulf.
17 FlagAccording to international convention, each ship carries a flag of the country to which it belongsIt is registered in that countryThey pay taxes to that countryComposition of crew, training requirement, its nationality vacation timeFlying US flag ads at least 30% more to operating costUS flag carrying ship costs $13,300 per day whereas the same ship flying developing country’s flag costs US $1400.Flag regulates qualification of crew, compensation etc
18 ConferenceA group of shipping companies (carriers) that operate vessels competing in the same trade lines, and that have legally agreed to not compete on price and charge the same amount for the same type of cargo and the same voyage.Tariff – The price that conference members have agreed to charge for a specific commodity going from one specific port to another.Conferences are organized on trade routes & will have same price on that route. All these rates are called tariffs & are published
19 Hague – Visby RulesAn international liability convention for ocean going carriers that limits their liability to SDR 667 per package or SDR 2 per kg. Whichever is higher. This liability convention is the most commonly used in the world: however, the United States has not ratified this convention & therefore still abides by the Hague rules.Hamburg RulesAn international liability convention for ocean going carriers that limits their liability to SDR 835 per package or SDR 2.5 per kg. Whichever is higher and eliminates most of the ‘defenses’ a carrier could use to discharge itself liability. The Hamburg rules have not been ratified by many countries, the United States has not ratified this convention and therefore still abides by the Hague Rules.
20 Non Vessels Operating Common Carriers – NVOCC make up another type of shipping Co : They do not own & operate shipNVOCC operate by purchasing space on ship on a given voyage & by selling this space to companies that need to ship cargoNVOCC acts as a freight consolidator
21 International Air Transportation Cherries & Carnations. In 1999, US $ 870 million worth of cut flowers entered USA. 70 % which came from Colombia,Trade was done through airfreight, Aero flora of ColumbiaAeroflora sends 15 flights every week to USA filled with only one cargo 1,e.cut flowers-roses & carnations mostly.Week preceding valentine's day, business becomes crazy.In 1999, co: sent 18 Boeings 474s with flowers 48 hours preceding holidayEvery year Federal Express dedicates two to three of its DC10s for that purpose.747 Boeing holds 3.6 million rosesFrom Late May until late June, Cherry season startsMore than 1.1 million cartons (8.2kg each) of cherries leave USA for Japan9000 MT of cherries travel by air freighters. US$ 1.95 per kg freight charge.It is the most profitable period of the year for the airline involved in that trade.
22 Air Transportation 34% world trade by value is moving by air High value low density cargo moving fastAir transportation is increasing as air transportation is becoming cheap. Reasons for increase in air cargo areDeregulation & liberalization of air cargo industryGlobal interdependence helped by world trade agreementsInternational production & sales of goods & serviceNew inventory management concepts like JITNew air eligible commoditiesVast development of high value & limited time consumable commodities.
23 International Air Transportation It has grown during last two decades through the advent of “time defined” deliveriesFederal Express create above concept in 1981.It is the largest airfreight company in the worldLufthansa is the second.Types of AircraftsPassenger aircrafts carrying cargoCargo aircrafts carry only cargoPlanes used for cargo services that are regularly scheduledPlanes of cargo services hired for a single trip
24 Passenger airplanes Aircraft carries some cargo in the belly Most of the airfreight is looseNone of the packages in the aircraft are securedInternational belly cargo is extremely urgentMax size & weight of package/load that an aircraft can carry.Many items are not allowed in passenger planesOnboard carriers above use passenger aircrafts
25 CombisCombi airplanes are passenger airplanes that are designed so that freight is carried on the main deckMain deck is split in the middle of the aircraftSome portion for cargo & other for passengersThey travel long distancesCombis are advantageous as size limitation of passenger aircraft is absentMain deck has a greater weight capacity, larger door can accept pallets, containerized cargoCargo can be secured in plane with slingsRestrictions on what can be shipped with passengers aboard remains
26 Air freightersMost air freighters are liners traveling between two airports. They operate on regular basisOne of which is hub, the location at which the cargo will be transferred to another flightThey are equipped with ‘roller deck” for pushing palletized or container's cargo through an over sized door.These are old planes used & are noisy. They operate at nightMemphis airport is largest cargo airport in the world.Freight is priced on weight & volume & will charge higher of the twoOn international shipments the volume weight conversion uses 60 m3 per Ton. Or 166 cubic inches per pound.
27 Charters Cargo airplanes serve chartered transportation Goods should be present for loadingGoods to be shipped do not fit into airplanes regularly scheduled, in this case shipper charters a heavy lift cargo airplaneSpecialized cargo is handled by specialised aircraftsAntonov 124 carries 150 TonsAirbus beluga for large volume cargo 1400 m3 but max of 47 tonsIf the cargo service is not available for some location, then DC3 is used to take cargo to the destination
28 Space & EquipmentBelly space – Normally used for luggage of passengers about 60% of cargo moves in luggage compartmentsFlex belly – Interior of passenger plane can be adjusted to include more/less space for cargoFreighter – Used for cargo Often passenger planes at the end of their life is converted into freighterTransport related stress on cargo are much lessLess packaging is needed which saves costInsurance premium on air cargo tends to be lowPlanes are designed for long flights
29 Freighter fleet doubles by 2013 19932013Large175Medium357Small476Small862Large777Medium575
30 IATA ( International Air Transport Association ) found that the average delivery time for air cargo was 6.5 days point to pointThis time has decreased to 6 daysWealthiest regions in the world use air tours portal for exotic food, medicines etc.Four major air cargo markets – North Atlantic transpacific, Europe – Far East & US domestic make three quarters of the total marketThree forms of air cargo carriers: Integrated carries & FedEx & UPS. Scheduled Couriers offering cargo services. Chartered carriers are specialized all cargo couriersCargo containers used for air cargo are very different from that used for other modes of transportInter modal size containers (8X8X20) are used for cargo only on freighters
31 Four Distinct Markets for Air Cargo Mail – used in official postal serviceExpress transportation – It is defined by FedEx is faster growing. Delivery is time definiteCourier – It is an extension of air express. Delivery is either same day or next day flight. They can track the packageCourier service is expensive because someone has to be at the airport 24 hours to get packages passed through customsFreight – Mostly larger packages are movedMoving large packages by express is expensiveHowever difference between express & freight is diminishingAir cargo company has to satisfy expectations of both the partiesPerishables is a golden market
32 Perishable Imports World wide (breakdown) Meat and animal products –0.241PharmaceuticalsDairy productsNutsFish & Sea foodMiscellaneousVegetablesFlowers & PlantsFruitsChocolates & Candy
33 Distribution of Costs Value added services -0.082 Local pickup -0.089 Transportation in refrigerated truck –0.144Export service & customsAir cargoImport service & customsWarehousing
34 Forces & constraints for Air Cargo Growth Industry RelocationDirectionalImbalancesRestrictionsQuotas &Tradelower deckCombos &freightersWide bodyNewcommoditiesExportPromotionResearchmarketAirlineNewTradeRelationshipShipper educationAirline marketSurfaceCompetitionCurrencyRevolutionShipper utilizationNationaldevelopmentprogramAirportCurfewsof points servedProliferationOil price &AvailabilityDeregulationLabour stoppagesAir & surfaceExpress marketJIT conceptsReengineeredBilateral
35 Characteristics of Air Cargo Commodities PerishableSubject to quick obsolescenceRequired on short noticeValuable relative to weightExpensive to handle or storeWhen demand is unpredictable, infrequent, in excess of local supply, seasonalWhen distribution problems include:Risk of pilferage, breakage, deteriorationHigh insurance costs for long in transit periodsHeavy or expensive packaging required for surface transportationSpecial handling or case neededWarehousing or stocks in excess of what would be needed if air freight were used
36 Aviation EconomicsTwo major factors influence the growth of air cargo: economic conditions & rate levelYield Management – It is the way air carrier gets maximum amount from each unit (cargo) carriedVolume of traffic – Higher volume lower ratesCharacteristics of the traffic – Cargo density size per piece, average weight of the shipmentVolume of the service – Needs of customerCompetition
37 Aviation Regulation International Air Transport Association (IATA) Used to regulate price but not nowInternational Civil Aeronautic Organisation – Safety standards, technical standardsFirst freedom, over flight – Right to fly in a country’s air spaceSecond freedom service stops – Right to stop for servicing of the plane, refueling etcThird freedom, passenger deliver – Right to bring revenue passenger from foreign countryThis requires bilateral agreements
38 Fourth freedom, Repatriation – Right to bring revenue passengers from a foreign country to home countryFifth freedom on carriage – The right to bring revenue passengers from one foreign country to anotherSixth freedom , Cabot age – The right to carry passengers within a countrySeventh freedom, All arrangement apply but for cargo
39 PORT OF MUMBAIMumbai port has long has been principal Gateway to India.It is situated almost midway ( Latitude 18o 54’N.Longitude 72049’E) on the west coast of India.It is a natural deep water Harbor of about 400sqKm.Approaches to harbour are well lighted, visible 29km.Channel has been deepened to 11 m with a mean high water neap tide of 33m. Channel is adequate to meet the requirements of large vessels, passenger ships & deep drafted takers.Navigation is allowed round the clock.
40 Three wet clocks:Indira, Prince’s & Victoria, total water area of 46 Three wet clocks:Indira, Prince’s & Victoria, total water area of hectares & a qua yage of 7776 meters.Indira Dock has an Entrance Lock m long & 30.5 m wide.21 berths& 5 berths along harbour wall – 9.14m draft & 7.5 m Depth of berths can be increased by 1.2 m by impounding water by pumps.Two berths at ballard Pier – 224 m long, 9.75 m deep.For handling crude oil, petroleum products, there are four jetties at Jawahar Dweep. Tanker of 12.7 m draft & 1,23,000 tonnage can be handled.Two of the jetties can take tanker of 70,000 T. & m long & third one can take 213.4m & 48,000 T. tanker.Chemical & POL products are handled at two jetties at Pir PauPin pass can accommodate tankers of m long & new jetty can handle 197 m long & 10.5 m draft tanker.Open bunders can also handle sailing vessels traffic.Two dry docks 304 m long & other 160 m long.Transit sheds at most of the berths.
41 STORAGE & HANDLINGThere are liquid storage tanks for HSD, FO, Veg. oil, etc.Total covered storage area of 3,17,857, & open area 1,41,401 & slots 12,802. Sq m.Cargo handling equipments like wharf cranes over 6 tonnes, shore cranes/ gantries 35.5 ton.Mobile cranes 14 tonnes, 20 tonnes.Tractors 6000 lb per pull.Portainer 35.5 Tonn.
42 Reach Stackers 43 T & 45 T.Port Railway of its own 11 locomotives.Rail container depot which can handle two trains of 45 with double discharge facilities.Nicnet connectivityInternetISO 9001 – 2000 certification.
43 State of the art Vessel Traffic Management Systems ( VTMS) for tracking & guidance of the ships. MISGPS based marine survey system.Computerization of port operation & management.Flotilla of dredgersHopper barges of 225 – 300 T capacityTugs from 320 HP to 1500 BHPPilot Launches & other LaunchesFire FloatsSurvey Vessel
44 PORT CHARGESPORT DUESForeign going vessels of 3000 T & upwards – 17 US cents per G.R.T.Foreign going vessels of 3000T & below 12 US centsCoasting Vessels 3000T & upwards Rs.1.6/ GRTCoasting Vessels 3000T & below Rs.1.10 GRTPIER DUESRs.1.2 per GRT for 8hrs subject to minimum Rs.1200Rs.25 for every boat / barge for 8 hrs.BERTH HIRE CHARGECoasting vessel Rs.0.75 / GRT for 8 hrs.Foreign going US Cent 4.7 / GRT
45 Pilotage, Tug Assistance, Towage Vessels maneuvering with their engineCoasting (varies) Rs.3.85 / GRT / dayForeign going (varies) US cent 26.4 / GRT /dayCharges for harbor tug for mooring vessel Rs.1.1/GRT/day & US Cent 12.1/GRT/day.Pilotage chargeMooring feesAttendance/ cancellation / Detention for harbor Tug.
46 Hire of launches & tank barges. Anchorage FeesCharges on cargo containers, containerised cargo & container equipment.Licence (Storage) Fees on containers for the period of storage of containers.Charges for port trust labour for stuffing or destuffing of cargo.Telephone charges.Craneage charges.Mobile crane & equipment.Port trust labour requisitioned & supplied but not fully or properly utilized.
47 Dry docks – docking & unloading. Occupation of dry docks.Wharfage.License fees for water conveyance.Charges for operation of the catamarans, hovercrafts, speed boats.Wharfage for POL.Free days – 3 days free of demurrage.Demurrage on import cargo – Rs.25/day/tonne for first 30 days.Exports – Non containerised cargo.Containerized cargo export / import.
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