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Shipping Management

NSA 2521

Oluf Sandvik
Shipping

Sailor as a Radio officer

Crewing/Accounting/Operation Torvald Klaveness

Chrt/Ops mngr (various incl Bona, Loki, Trinity)

Consultancy shipping software

Business consultant

(ShipNet AS)

Todays agenda
Ports & Canal

Chapter 3

Charterer forms

Chapter 7

Ship costs

Chapter 8

The Freight Market

Chapter 6

MAIN SHIPPING ROUTES TODAY

World Seaborne Trade - Crude

World Seaborne Trade - Grain

World busiest ports

World busiest container ports in 2012

World busiest ports (2012)


by cargo tonnage (mill)
800
700
600

500
400
300
200
100
0
Ningbo

Shanghai

Singapore

Tianjin

Rotterdam

Guangzhou

Qingdao

Dalian

Busan

Port Hedland

Tanker berth in Rotterdam

Container berth in Rotterdam

BUNKER PORT

Port Vessels

Rules and regulations


IMO (International Maritime Organisation)
LOAD LINE

The draft of the ship and legal limit to which a ship may be loaded

SOLAS (Safety Of Life At Sea)

International Maritime Safety Treaty

+ ISPS (Safety)

MARPOL(MARine POLution)
International Convention for the Prevention of Pollution from Ships.
STCW
International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers. Sets qualification standards for Masters,
Officers and Watch personell on seagoing mechant ships.

From the Port State Control - report

Rules and regulations


Classification societies
IACS (LR ABS BUREAU VERITAS - DNV GL NK)
Carrying out statutory inspections for national administrations,
required by international shipping conventions and codes.
Insurance
Hull & Machinery
P&I - Insurance in respect of third party liabilities and expenses
arising from owning ships or operating ships as principals.
Other organisations
INTERTANKO Forum for Tanker Owners to promote their interrest
BIMCO Membership organisation for Dry Bulk Owners
ITF Organisation for all transport workers

Paris MOU
Paris MOU formally adopted the New Inspection Regime
(NIR) in 2011. This saw the culmination of a significant
amount of work over many years and will see the
introduction of the New Inspection Regime from the 1st of
January 2011. All of those who took part in the various task
forces and groups, which developed the NIR and THETIS, are
to be complimented on their work.
The Committee meeting also adopted several other
significant matters including a new instruction on the ISM
Code and agreed to carrying out a concentrated inspection
campaign on the damage stability of tankers.
https://www.parismou.org/publications-category/caught-net

Caught in the Net

No Canals
Tampa-Yokohama - Riga 34 700 miles

Canals
Tampa Yokohama - Riga 21 400 miles

40)

Suez Canal

Panama Canal

http://micanaldepanama.com/expansion/faq/#prettyPhoto/0

Distance 12 723 miles


Length
38 days
Profit
14 300 Usd

Distance 5 967 miles


Length
18 days
Profit 697 000 Usd

Charterer forms Chapter 7

Types of Charter Forms


Voyage Charter Parties
Gencon
Abatankvoy

Time Charter Parties


NYPE
Asbatime

Bareboat Charter Parties


Contract of Affreightment
Salesform

GENCON Payment of Freight


The freight to be paid in the manner prescribed
in Box 14 in cash without discount on delivery of
the cargo at mean rate at exchange ruling on day
, or days of payment , the receivers of the cargo
being bound to pay freight on account during
delivery, if required by Captain or Owners.

ASBATANKVOY Laytime
The cargo shall be loaded within the number of
running hours as indicated in Box 16, weather
permitting, Sundays and holidays excepted,
unless used, in which event time actually used
shall count.

ASBATANKVOY NOR
Upon arrival at customary anchorage at each port of
loading or discharge, the master or his agent shall give
the Charterer or his agent notice by letter, telegraph,
wireless or telephone that the Vessel is ready to load
or discharge cargo berth or no berth, and laytime as
hereinafter provided shall commence upon the
expiration of six (6) hours after receipt of such notice,
or upon the vessels arrival in berth.

NYPE description (TC)


, and capable of steaming, fully laden, under
good weather conditions about 14.0 knot on a
consumption of about 25.0 tons of best Welsh
coal best grade fuel oil best grade diesel oil

MV LEO STAR 317 129 Dwt

MV LEO STAR Abt 15 knots service speed

MV LEO STAR 7 SYLINDERS

Ras Tanura Houston


Abt 12 000 nm
Speed 15 knots
Cons 3 100 mt Ifo
Abt 3 760 000 ltr
Usd 360/mt Ifo
Usd 1 100 000

Three containers of liquid


A

Fuel Oil ?
Diesel Oil ?

Crude Oil ?

AIR Cushion

SHIP COST Chapter 8

Cost of running a vessel

Voyage

Finance

Interest
Morgage

Running

Cost of running a vessel

Maint.
Insurance
Manning Crew

Repair
Stores

Cost of running a vessel

Misc.
Cargo

Bunkers
Port/Canal

Ownership
Type cost

Cost

Revenue

Expense

Capital cost

BareBoat

Time Charter

BB Hire

T/C Hire

Freight

6 000/Day

14 000/Day

Usd 34,50/mt

5 000/Day

5 000/Day

5 000/Day

7 000/Day

7 000/Day

Running cost
Voyage cost

Result

Voyage Charter .
COA

17 800/Day

1 000/Day

2 000/Day

5 800/Day

Film

Lifeblood of world
trade
http://www.ics-shipping.org/ics-film---international-shipping-lifeblood-of-world-trade

The Freight market Chapter 6

WHY SHIPPING?

TRANSPORTATION COST
Typical cost for a consumer in US of transporting
crude oil from AG to US in the terms of purchase price
at the pump is $0,01

$10
$1,50
$0,15
$0,05
$0,01

Whiskey
DVD
TV-SET
Biscuits
Can
of Beer
Bulk shipping cost increased 70% last 50 years.
US retail prices have risen by almost 700%

Major cargoes

Million tons loaded

Million tons loaded

Oil & Gas

Main Bulk

Dry Cargo

10
9
8
7
6
5
4
3
2
1
0
70

80

90

00

05

06

07

08

09

10

11

12

Source: Fearnley Review

WORLD FLEET
type of ship-

2013

Oil Tanker
Dry Bulk
Container
General Cgo
Others

Source: Lloyds Register - Fairplay

WORLD FLEET
Nations owned by dwt (2013)
250
200
150
100
50
0

Source: Lloyds Register - Fairplay

Type of vessels based on size (dwt)


Crude oil tankers
ULCC, double-hull
ULCC, single hull
VLCC, double-hull
Suezmax crude tanker
Aframax crude tanker
Panamax crude tanker

350,000
dwt +
320,000
dwt +
200,000349,999 dwt
120,000199,999 dwt
80,000 119,999 dwt
60,000 79,999 dwt

Dry bulk
Capesize bulk carrier
Panamax bulk carrier
Handymax bulk carrier
Handysize bulk carrier

100,000
dwt +
60,000 99,999 dwt
40,000 59,999 dwt
10,000 39,999 dwt

SHIPPING IN PRACTICE
After the blockade of the Suez Canal ( 1967)

An Owner from Bergen, Norway


Managed to get freight rates of Usd 11 mill
From AG to USG/CONT destinations.

2 voyages = revenue Usd 20 mill.*


(*Representing the cost of building a new vessel at that time)

SHIPPING IN PRACTICE

BIG TANKER VESSEL

BUILT 1979 380.000 DWT


SHOT/DAMAGED IN IRAN/IRAK WAR

UPGRADED

SCRAP VALUE
12.000
UPGRADE (1990)
55.000
8 pct interrest
7 years of instalment

Yearly
Daily
Running
Total

13.200.000
36.200
10.300
Usd
46.500 - day

ONE YEAR MID 90s

32 Days at Usd
119 Days at Usd
105 Days at Usd
109 Days at Usd

32 days at Usd
658 000
119 days at Usd 2.628 000
105 days at Usd 1.765 000
109 days at Usd 2.879 000

Total loss of Usd 7,929 000

26.250
24.418
29.691
20.093

Charter Parties the 3 main types


Time Charter

Gives the Charterer operational control of the ship carrying his cargo.
The owner pay operational cost (wages, repair, maint.)
The charterer pay for voyage related cost (bunkers, port exp. etc)
Owners gets less commercial risk and must maintain the ship operational.

Bareboat
Gives away full operational control of a vessel, and maintain only the
ownership. Typically done by a financial institution that does not want (or
can) do shipping but have invest in the vessel.

Charter Parties cont.


Voyage Charter
Transport of a cargo from A to B for a freight pr ton cargo.
Agree on qty, ports, freight, comm., Laycan load-/disch- terms.
If fixture not fulfilled there will be a claim, i.e. LAYTIME

COA (multiple Voyage Charter)


A series of cargoes for a fixed period at a fixed price per ton.
Gives owners ability to better future plans.
Can take market positions Spot or COA?

Ownership
Type cost

Cost

Revenue

Expense

Capital cost

BareBoat

Time Charter

BB Hire

T/C Hire

Freight

6 000/Day

14 000/Day

Usd 34,50/mt

5 000/Day

5 000/Day

5 000/Day

7 000/Day

7 000/Day

Running cost
Voyage cost

Result

Voyage Charter .
COA

17 800/Day

1 000/Day

2 000/Day

5 800/Day

Panmax - BANASOL
79 700
13,9
14,0
25,0/30,0
1,0
Running Cost
Marshall Isl
Vessel Open
ETS
Extra insurance Usd
Extra insurance Usd

DWT
Draft
Speed
Consumption B/L
Consumption MDO (daily)
Usd 8 000 pr day
Flag
Bilbao
Nov 24th 2010 09:40
2 000 1st voyage
5 000 2nd voyage

Our voyage

Elements in calculation
TIME CHARTER
Revenue
Hire less comm.
Ballast Bonus

Expenses
Running Cost
Financial Cost

VOYAGE CHARTER
Revenue
Freight less comm.

Expenses
Bunkers
Heating
Cleaning

Port/Canal Cost
Cargo Cost
Various other cost
Extra Insurance
Pilot - Inspection

Running Cost
Financial Cost

Calculate a voyage voyage charterer


Revenue

Freight quantity loaded * freight pr mt.

Expenses

Bunkers

Main engine tons consumed/day (ballast leg or laden leg) * number of days
(Nautical miles / speed (knots) pr hour) = total hours steaming.
Aux engine tons consumed/day (extra if cargo operation)

Port/canal expenses
Other expenses

Voyage Result = Revenue Expenses

Result = Voyage Result Running Cost

Calculate

st
1

voyage for MV Banasol

Account LKAB
75000 MT Iron Ore
Load Narvik
Terms 2 ds SHINC
Discharge Rotterdam
Terms 25 000 SHINC
LayCan Jun 3rd 10th
Demurrage 50 000
Commission 2,5 Address + 2,5 RSP

Calculate

nd
2

voyage for MV Banasol

Acc Glencore
54000 MT HSS 10 %
Load MISS RIVER
Terms 8 DS WWDSHEX
Discharge Kashima
Terms 8 DS WWSHEX
LayCan Jul 1st 15th
Demurrage 40 000
Commission 2,5 Address + 2,5 RSP

LAYTIME calcualtions
LAYTIME -

Agreed time for loading/discharging

DESPATCH-

Agreed compensation for early completion

DEMURRAGE-

Agreed compensation for late completion

LAYTIME

DEMURRAGE

DESPATCH

Make a laytime calculation based on


Charter Party
NOR

SOF

Performance claim
Agreed in a T/C fixture to

A speed of 14 knots with


A consumption of 25,0mt IFO and 1,0mt MDO

Rotterdam Houston 4 993 nm


Vessel left R-dam 4th Oct 12:00 arr Houston 20th Oct 18:30
Used 16d-06h-30m = 16,2708 days
4 933/(24/14)
= 13,2481 days = 2,7927 = 2d-19t-01m
@ hire 20.000/day = Usd 55 854