ONTARIO International Transport and logistics Section 4: Ocean transportation

Types of Vessels CON-RO SUPER TANKER (liquids) (Abqaiq) RO-RO CONTAINER PROJECT VESSEL BULK CARGO (Sabrina 1)

OCEAN SHIPPING In volume, the transportation by vessel represent more than 90% of all international movements. By Bulk: Petrolium, Grain, coal, chemicals By Containers: FCL (Full container load) 20 feet, 40, 40HC,45 LCL (less than container load) consolidation Reefer -10 degrees ou Temp control 4 degrees) Open-top Plateform Tankers

OCEAN TRANSPORT Loading types Bulk (grain, cereals,cement, coal, minerals, etc) Liquids Ocean Containers Unit loading mechanical loading merchandize on skids merchandize in cases heavy merchandize oversize

OCEAN SHIPPING A.The container: Numerous advantages: Regroups the merchandize in a single unit; Adapted for ocean, rail and road transportation; It’s rectangular shape permits easy handling; Protects the freight against damage (packaging) and theft (seals); The industry as standardize dimensions mainly into 20 and 40 feet long steel containers. The reference dimension is called TEU’s for twenty feet equivalent units.

B. Rates: For FCL, rates are calculated by container (box). For LCL, rates are calculated by cubic meter. The customer pays for the SPACE taken in the container. OCEAN SHIPPING

OCEAN CONTAINERS Main ocean containers 20’, 40’, 40’HC, 45’* Standard width:8’ Standard height:8,5’ HC height:9,5’ NOTE: There are other types of containers. Charge: 20’:24 TM 40’:30 TM Limits of charge vary depending on country of origin / destination road rules. * Available on certain destinations only

OCEAN SHIPPING

OCEAN CONTAINERS Open top containers 20’, 40’ Standard width:8’ Standard height:8,5’ Charge: 20’:18 TM 40’:25 TM. Charging limits can vary upon country road rules.. Loading with cranes.

OCEAN SHIPPING

OCEAN CONTAINERS Temperature control20’*, 40’ Standard width:8’ Standard height:8,5’ Charge: 20’:18 TM 40’:25 TM. Charging limits can vary upon countries road rules.. Temperature around 4 degrees C.. Freezers around -10 degrees C. * Available on certain corridors only

CONTENEURS MARITIMES Platform 20’, 40’ Standard width:8’ Standard height:8,5’ Charge: 20’:18 TM 40’:25 TM. Loading limits can vary upon road rules in countries.

OCEAN CONTAINERS TANKER 20’ * Available on certain corridors only

WASHED CONTAINERS ISO + LOAD INFOS

HOW TO MAXIMIZE THE LOADING OF YOUR CARGO?

Domains of Maritime Circulation Copyright © , Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.

World’s Largest Maritime Container Shipping Operators, 2007 OperatorMarket Share TotalOwnedChartered TEUShipsTEUShipsTEUShips APM-Maersk16.1%1,874, , , MSC10.5%1,217, , , CMA CGM7.4%864, , , Evergreen5.3%618, , ,12768 Hapag-Lloyd4.2%487, , ,45279 China Shipping 3.8%437, , ,99154 COSCO3.6%420, , ,97346 APL3.4%400, , ,17584 NYK3.2%375, , ,61677 OOCL2.9%343, , ,46947 Total Top %7,039,5602,2763,596, ,442,6781,226 Total Top %10,310,2413,9365,134,5631,6525,475,6782,284

MAERSK LINE

SAILING SCHEDULE: NY to South east Asia to Freemantle NYCCHIHOUPDXSEASFOLAX SINBKKPTKJAKFRE Maersk /20 09/25 09/27 10/0110/1810/2110/2510/28 Arthur /27 09/29 10/04 10/0810/2910/2511/04 Long /04 10/09 10/11 10/1511/0111/0411/0811/11 Luna /11 10/16 18/10 22/1011/0811/1211/18 Axel /18 10/23 10/25 10/2911/1511/1811/2211/25

ON LINE SAILING SCHEDULES

PANAMAX and POST-PANAMAX The Post-Panamax (or Overpanamax, Postpanamax) classified vessels have a larger capacity than the Panamax class, i.e. exceeding the dimensions to use the Panama Canal lock (écluses). Prior to the 1990’s, the Panamax class was the main factor influencing naval architecture for the size of vessels. Changes happened due to increase in traffic and volumes of business (Asia) to benefit from the economy of scale : Depression in the economy. Less vessels on the seas and less vessels in construction in shipyards.

LOADING / UNLOADING AT PORT OF JAWAHARLAL, MUMBAI, India

OCEAN CARGO CALCULATION FULL CONTAINERS:  The tare mass (weight) is the weight of an empty container.  The payload is the weight of the cargo is it’s maximum gross weight  Maximum gross weight is the maximum weight including the cargo PALLETS: When the cargo is being loaded on pallets inside the container, remember to include the size, weight and quantity of the pallet in the overall calculation.

CONTAINER LOADING / STUFFING Stuffing Plan To avoid problems such as cargo overflow or wastage of space, it is essential for shippers to have a stuffing plan before cargo is loaded into the container. Measurement Generally speaking, a 20' container can hold as much as cbm or 980-1,060 cu.ft., while a 40' can hold about cbm or 1,980-2,110 cu.ft. and a 40’HC can hold cbm. The actual loading Internal Capacity of a container depends not only on the dimensions of the carton boxes but also on many other factors such as the packaging material and the competence and experience of the stuffing personnel.

CONTAINER LOADING / STUFFING Weight Besides the cargo's measurement, the stuffing plan should also take the weight into consideration. It is important to note that in many countries the permissible weight limits for road and rail transportation are lower than the maximum payload a container can afford.

CONTAINER LOADING / STUFFING

INSIDE CONTAINER CALCULATION

CONTAINER LOADING

OCEAN RATING OCEAN TARIFFS: Steamship lines and NVOCC’s publish their rates in tariffs. Ocean rates are regulated and are lane specific (sometimes commodity, ex. fruits in South America). So, they have less flexibility, officially. ‘According to FMC: Offer equitable rates = same rate to all customers tendering the same commodity under similar circumstances’. Tariffs, Rates are for FCL For LCL, rates are determined using the volume of the freight. It is fixed at the ‘discretion’ of the freight forwarder.

OCEAN PRICES RATES LOCATION: From and to locations can be either a terminal (inland or a port), which is equal to Container yard or a location where the container is to be stuffed, which is equal to Store door. CONTAINER YARD (CY): Port facility at which containers are accepted for loading onboard ships, and off-loaded containers are delivered to the consignees. Also called Marshalling yard.

OCEAN TRANSPORT RATES Container rating POTENTIAL EXTRA FEES TO THE FREIGHT: Origin fees: Local transport origin to port Terminal charges (THC) origin Documentation charges B.A.F. (fuel surcharge, caused by fluctuation) C.A.F. (currency adjustment) Security fees Destination fees: Terminal charges (THC) destination Local transport from port to destination

ASKING FOR A QUOTE Q. How to know if you are quoted the fair price for your movement? A. Obtain quotes, minimum 2 or 3 to compare and choose. Q. How to know if you are charged the quoted price for your movement? A.Compare the invoice with the quote! BE PRECISE: When contacting a freight / Ocean forwarder for a quotation, the information YOU are supplying are crucial. Why? A difference in size or in weight can have a large impact of final rate that will be charged. The forwarder does not see or touch your freight They work with your information; if not precise, potential problem.

QUOTE REQUEST YOUR responsibility: Supply complete informations FORWARDER’s responsibility: Supply detailed quote AVOID to accept an ‘all included’ rate. Example: ‘It will be 1200$ + taxes’.

QUOTE REQUEST AVOID ASSUMING by asking for a documented and complete quote: REGULAR movements:  Obtain minimum 3 quotations from forwarders  Re-look at your rates regularly, maximum 3 months OCCASIONALs movements / Spot Quotes:  Obtain minimum 3 quotations from forwarders  Quotes need to be detailled (see attached)  Compare, select forwarder and contact by phone +  Build an ‘Open shipments’ table for follow-ups (in your ERP or Excel sheet)

QUOTE REQUEST EXAMPLE 1 of 2

QUOTE REQUEST EXAMPLE 2 of 2

QUOTE RESULT EXAMPLE 1 of 2

QUOTE RESULT EXAMPLE 2 of 2