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Types Of Ships
Handy is the name for bulk carriers of less than 60,000 tons deadweight capacity. In
many cases, the carrier itself may be equipped with cranes to handle all sorts of cargo.
The type of handy bulk carrier of 40,000 tons or more of deadweight capacity is
called the "handy-max" type.
Handysize-vessels are up to 30,000 DWT, which carry exclusively minor bulk
cargoes. Since the past, the Handysize drybulk carrier sector was seen as the most
versatile. Increasingly, however, this has become more of a regional trading, niche
sector. The vessels are well suited for small ports with length and draft restrictions and
also lacking infrastructure.
Handymax-vessels range between 30,000 DWT and 60,000 DWT. The Handymax
sector operates in a large number of geographically dispersed global trades, mainly
carrying grains and minor bulks including steel products, forest products and
fertilizers. Vessels less than 60,000 DWT are built with on-board cranes that enable
them to load and discharge cargo in countries and ports with limited infrastructure.
These smaller Handysize and Handymax vessels are general purpose in nature, and
not only comprise 71% of all bulkers, but also have the highest rate of growth. This is
partly due to new regulations coming into effect which put greater constraints on the
building of larger vessels.
Supramax vessels range from 45,000 to 59,000 DWT, A Supramax vessel is typically
150200 meters in length, 52,000 to 58,000 DWT, with five cargo holds and four
cranes.
Panamax refers to the maximum size that can navigate the Panama Canal. This type of
vessel can be up to 32.2 meters wide. Panamax bulk carriers are usually of 60,000 to
80,000 tons of deadweight capacity, determined by the Panama canal's lock chambers,
.26 metres in width, 320.0 metres long, and 25.9 metres deep and they are suitable for
carrying bulk cargo of industrial commodities like as salt, grain, coal and/or iron ore.
Panamax vessels, defined as those with the maximum beam (width) of 32.2 metres
permitted to transit the Panama Canal, carry coal, grain and, to a lesser extent, minor
bulks, including steel products, forest products and fertilizers.
Capesize is the type of large-scale bulk carrier primarily used for transporting raw
materials for making steel (coal and iron ore). This type of vessel is considered to be
at least 100,000 tons of deadweight capacity, and there are currently super-large ships
in excess of 200,000 tons of deadweight capacity. Vessels over 80,000 DWT is the
traditional definition of a Capesize bulk carrier, in terms of deadweight, the sector is
changing. The Capesize sector is focused on long haul iron ore and coal trade routes.
Due to the size of the vessels there are only a comparatively small number of ports
around the world with the infrastructure to accommodate them. Capesize vessels are
too large to traverse the Suez or Panama Canals, therefore they must round the Cape
of Good Hope or Cape Horn to travel between oceans.
VLO (Very Large Ore) or Very Large Bulk Carriers are for ships that range over
200,000 DWT. The Berge Stahl is the world's largest bulker and is
364,768 deadweight metric tons. It is 343 m long, has a beam of 65 m, and a draft of
23 m. Bulk carriers of this size almost always carry iron ore.
2. Main Areas Of Operation
The main trading routes are USA-Far East or South America-Europe.
To meet the increasing market demand for international goods, the Port Authority of
New York and New Jersey is in the process of an extensive port development project
to increase handling capacity.
Examples of other ports of operation include Rotterdam and the Port of New Orleans
where they are both characterized by their strict port state control and Argentina and
Brazil where they are also one of the main areas of operation for trades of wheat and
iron ore between both countries.
Cornships Management and Agency Inc. in Turkey owns a fleet of seven Mini-bulkers
which specialize in markets in Europe, the Mediterranean, the Black Sea, and West
Africa.
4. Types Of Charter Parties Used
The charter market is central to the functioning of the shipping industry, it is here that
ships and cargoes get 'paired'. The effort to combine cargo with a particular ship
seems like an easy task to accomplish, but the cargoes vary as much as the ships do.
Drybulk carriers are employed in the market via a number of different chartering
options such as bareboat, time and voyage charters.
Bareboat charter involves the use of a vessel usually over longer periods of time
ranging over several years. In this case all voyage related costs, including vessel fuel
and port dues as well as all vessel-operating expenses such as day-to-day operations,
maintenance, crewing and insurance, transfer to the charterer's account. The owner of
the vessel receives monthly charter hire payments on a per-day basis and is
responsible only for the payment of capital costs related to the vessel.
Time charter" involves the use of the vessel, either for a number of months or years
or for a trip between specific delivery and redelivery positions, known as a trip
charter. The charterer pays all voyage-related costs. The owner of the vessel receives
semi-monthly charter hire payments on a per-day basis and is responsible for the
payment of all vessel operating expenses and capital costs of the vessel.
Voyage charter" or "spot charter" involves the carriage of a specific amount and type
of cargo on a load-port to discharge-port basis, subject to various cargo handling
terms. Most of these charters are of a single voyage nature, as trading patterns do not
encourage round voyage trading. The owner of the vessel receives one payment
derived by multiplying the tons of cargo loaded on board times the agreed upon
freight rate expressed on a per-ton basis. The owner is responsible for the payment of
all expenses including voyage, operating and capital costs of the vessel. Chartering on
a single voyage or a trip charter basis may be referred to as spot chartering activity.
The main differences between them is the degree of owner involvement in the
operation, the division of the costs and the extent to which the cargo to be transported
is specified in the contract.
Therefore this means that the rates are $18.00/tonne or 34 % in this range since the
beginning of 2007 and up 108 % fromm April 200 (April 2007 = $34.17 verses April
2007 at $71.50).
The freight market is inverted and everyone is wondering how sustainable these rates
are. With current Panamax rates from the Gulf to Japan at about $71.50 and PNW
rates at near $51.00; the Panamax freight spread to Japan close to $ 20.50/mt or
$.52/bushel for corn and .56/bushel for Wheat and Soybeans
Today, bulkers represent 40% of the world fleet in terms of tonnage and 39.4% in
terms of vessels.
The current rates of different bulk carriers are as follows:
For a new Supramax vessel, the price will be $75,000,000 [sic] in 2007 and for a 5year-old Supramax in 2007, it will cost $60,000,000 [sic].
The cost of a large new Panamax is $100,000,000 [sic] and the cost for a compatable
five-year-old Panamax in 2007 is $85,000,000 [sic].
A new 170,000 DWT Capesize vessel costs $165,000,000 and $115,000,000 for a
comparable five-year-old in 2007.
will be an issue to be taken into consideration. It is a major issue for the market and
there will be delays at many dry bulk loading ports.
8. Other Information that may be of interest to Ship owners
Charter rates for Supramax and Handymax vessels may continue to weaken in 2008
until the extra supply is made up with returning demand and expected in the first half
of next year. 2008 may be the end of the line for the drybulk market - with rates
falling off in 2009 and 2010 as a number of new vessels are expected to flood the
market. Just a few months ago, it was widely speculated that the market could sustain
itself through 2009 or 2010, but Boyden noted that new ship building has caught up
with demand at a faster rate than expected.