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Understand the fundamental differences between dry bulk cargo ships, general purpose ships, liners (container, break bulk and RoRo) and tankers. Thoroughly understand the differences in the types of ships employed in dry cargo trades including Capesize, Panamax and Handy size bulk carriers, General Purpose (Tramps), Container, Ro/Ro, Ore/Bulk/Oil and Ore/Oil carriers; Short sea and coastal traders. Understand the basic dimensions, design and construction details including decks, holds, hatches, derricks, winches, cranes and specialised cargo handling gear. Thoroughly understand the terminology of measuring ships including dimensions, actual tonnages – deadweight (dwat &dwcc), displacement (total & light); pseudo tonnages – NT & GT; capacities – bale & grain cubic, TEUs. Understand what information is contained in Capacity, General Arrangement and stowage plans. Thoroughly understand the central importance of ship classification, the importance of charterers’ inspections and questionnaires.

This subject should interlink with ships so that students can understand how particular ship types are required for the different cargoes and trade routes. Thoroughly understand the nature, characteristics, hazards and stowage requirements of the four main dry commodities namely Coal, Ore, Grain, and Fertilizers. Understand the different sub-divisions within these categories and the trade routes which apply. Understand the nature and characteristics, main places of origin and appropriate trade routes of other important cargoes. Understand the stowage factors of goods. Be aware of the importance of proper packing, angle of repose, ventilation and prevention of stowage hazards. Understand the use of alternative routes; the existence of seasonal variations and their impact on markets.

Thoroughly understand the role of the different market practitioners; Charterers, Shipowners, Operators. Understand the structure of the international dry cargo chartering market and the relative importance of the major market centres. Thoroughly understand the role of the Broker and its relationship to the principals as an agent. (Owners broker, charterers agent, exclusive broker, competitive broker, intermediate broker). 2 Understand the advantages and disadvantages of different methods of communications.

Understand the structure and content of market reports and market indices. Thoroughly understand the nature and impact of external factors affecting the market including natural catastrophes, environmental, aid programmes, political crises. Be aware of the effect that merchants’ trading terms (INCOTERMS) may have on the shipping contract and the impact of documentary credits especially on documentation. Understand the rationale of joint ventures and shipping pools and be aware of how these operate.

Thoroughly understand the impact of e-commerce on market practice, its advantages and disadvantages. Be aware of the main alternative electronic solutions available to brokers.

Thoroughly understand the basic format and purpose and content of those main clauses common to all Charter Party forms. Thoroughly understand the differences between the structure and purpose of voyage charters and time charters

Understand the reasons for the use of standard forms of voyage and time charter parties and their suitability to different trades including a working knowledge of the content of commonly used standard forms including: voyage charters – Gencon, Norgrain, Amwelsh and time charters – Baltime, NYPE. Understand the reason for charter party interpretation rules and be aware of the contents of Voylay Rules 1993 and FONASBA Time Charter Interpretation Code 2000.

Thoroughly understand the importance and proper use of additional clauses and addenda and be able to draft simple specimen clauses. Understand the individual rights responsibilities and liabilities of owners, charterers and brokers which arise under the charter party. Understand the use of consecutive voyage contracts and contracts of affreightment and be aware of the particular terminology required.

Thoroughly understand the role of the bill of lading in charter parties and in particular the liabilities of the shipowner to the bill of lading holder. Understand the relationship to mate’s receipts and potential problems arising from the demand for clean bills of lading. Be aware of cargoes that pose particular problems in this context including steel, grain etc.

Thoroughly understand the requirements regarding delivery of cargo against bills of lading. Understand the problems arising from the non production of originals at discharge ports and practical solutions.
Understand the particular problems for owners arising from bills of lading under time charters and the potential special problems of freight prepaid bills of lading.

Thoroughly understand the procedure of negotiations including cargo circulars, indications, and firm offers. Understand all the customary abbreviations used during negotiation. Understand the process of offer, rejection and new offer (counter offer, accept/except) and acceptance.

Thoroughly understand the details to be included in offers for both voyage and time charters and be able to draft a firm offer. Understand what “subjects” are, be able to identify some common examples of subjects and explain how they are lifted. Understand at which point the ship and cargo are “fully fixed”.

Understand the role of the post fixture department and be able to identify and explain its functions. Thoroughly understand the legal, tactical and ethical requirements of the market and the avoidance of conflicts between them.

Thoroughly understand the brokers responsibility to the principal and the circumstances under which breach of warranty of authority (with and without negligence) might arise. Be aware of the consequent penalties. Understand the importance of professional negligence and indemnity insurance for brokers and be aware of the cover provided.
Be aware of the remedies available to the broker in the event of the principal defaulting on its obligations.

Thoroughly understand the various ways in which freight (rates per tonne or lump sum) and hire calculations (rate per day or per dwt/month)are made and the time when payment is due. Thoroughly understand that reasons for and calculation of additional payments due under charter parties and the appropriate clauses: for Voyage Charters – deadfreight, demurrage/despatch, damages for detention and freight taxes; for Time charters – payment for bunkers, ballast bonuses. Understand the importance of clauses in time charters relating to late hire payment and the remedies available to the owner. Understand the importance in time charters of performance claims and the nature of off-hire events. Understand the arrangements for and relevant clauses regarding delivery, final voyage and re-delivery. Thoroughly understand how commissions and brokerage are calculated and who is responsible for payment. Understand the use of freight market derivatives as an hedging tool and be aware of the operation of the derivatives market.

Thoroughly understand the importance of the clarity of notice of readiness clauses and be able to draft a concise clause. Understand the procedure for tendering a valid NOR and common problems relating to acceptance. Understand the point at which laytime commences and the circumstances under which laytime may be interrupted; understand what time is excluded from laytime. Thoroughly understand the principle of “once on demurrage always in demurrage” – and the rare exceptions. Thoroughly understand the extent and nature of the information contained in the Statement of Facts and how the Laytime Statement is prepared. Be able to calculate the laytime used and demurrage/despatch earned from appropriate data. Understand the application of “Voylay Rules”with particular reference to Berth-vPort charters and Weather Working days.

Thoroughly understand the essential procedures used to create a voyage estimate and be able to make complete calculations from given data. Be aware of the main variables including change of loadline zones, fresh water allowances, draft limitations (including draft calculation – tpi/tpcm) also the importance of careful bunker planning. Understand the techniques used and be able to make the calculations to compare alternative routes, alternative voyages, compare voyage with time charter, compare $/tonne with lump sum rates and $/day with DWT/month Understand the reason for and means of calculation of Ballast Bonus in time charters.

Thoroughly understand the charter party clauses for the resolution of disputes including the application of arbitration and jurisdiction clauses. Be aware of the Bimco Arbitration Clause. Understand the roles of the commercial courts, arbitration and Alternative Dispute Resolution (ADR) in settling disputes and be aware of the differing procedures. Understand the importance of shipowners’ P&I Associations and their role in the context of cargo claims, be aware of the other sectors of owners P&I cover. Understand the role of Intermediaries P&I Associations and, the classes of cover offered to brokers and agents. Be aware of the importance of keeping full and proper records to assist in dispute resolution. NB: No exemption is permitted from this subject.

Dry Cargo Chartering

This course discusses how this part of the industry works and also looks at the less familiar cargoes and trades. It describes the roles of the shipowner, the charterer and the shipbroker and also the duties of back-office staff. Readers will gain an understanding of the nuts and bolts of charter parties and different types of shipping documentation. The types of employment of ships, including various commodities and cargoes, are covered too.

The characteristics of liner services. The Liner Trades of the world, trade routes and ports. East/west and north/south trades.
Service options including round the world (RTW), pendulum, hub and spoke.

Vessel types – break-bulk, Con-bulk, Ro-Ro, LASH, Reefer and other specialist ships. Container ships including cellular/non cellular, post panamax, hatchless, ‘fast ships’, etc.
Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs.
Cargo handling equipment on board. Hatches & hold layouts, ro-ro access and other specialised configurations.

Commodities – break bulk, palletised and containerised. Heavy lifts, Out of gauge, IMO Dangerous cargo regulations.
Port & terminal operations and systems: terminal layout, cargo handling systems and equipment.
Other port facilities and value added services.

Liner Operating Companies: Structure, management, technical, operations,
commercial functions.
Liner Marketing and sales: in-house or independent agency, FONASBA Liner agency agreements, hinterland sales & agency, sub agents.
Ship husbandry and port agency.
Shippers, forwarders and NVOs. Logistics operators. e-commerce.

The concept of unitisation and intermodalism.
Container types and terminology.
Non-port depots. Inland haulage; Carrier/Merchant haulage, Feeder services.
Container management, owning/leasing, repairs and interchange.

Economic trends – balancing supply and demand, capacity management options.
Conferences, consortia and alliances: Concepts of the contemporary conference system. Control and regulation including Federal Maritime Commission (USA), Competition Directorate (Europe).
Economies of scale, mergers and market share.

The paramount importance of bills of lading in the Liner Trades.
The functions of bills of lading and their role in international trade.
Bill of lading legislation – UK Carriage of Goods by Sea Act 1992 or equivalent national legislation.
Hague/Hague Visby & Hamburg rules. Rules for combined transport including UNCTAD/ ICC.
Clean and ‘dirty’ Bills of Lading. Letters of indemnity, their use, misuse and the avoidance of fraud.
Types of Bills of Lading: ocean, through, combined transport, waybills. Major and usual clauses.
Other documentation – Booking notes, Shipping notes, Manifests, Dangerous cargo declarations.
Regulatory control of imports and exports including customs procedures and licensing.
Computers: Application in liner trades and development of paperless trading.

Freight rates and Tariff structures including commodity, weight or volume;
advantages and drawbacks.
Adjustment factors including currency fluctuation, bunker charges, war risks and congestion.
Container tariffs – their structure and relevance.
Pricing management including maximising contribution, revenue or market share, marginal pricing of vacant capacity.

Sale of Goods and INCOTERMS.
Methods of payment and their impact on shipping documents. ICC Uniform Custom and Practice.

Carriers limitation of liability, Carriers and Merchants responsibilities.
Cargo claims, role and responsibilities of the parties. Noting Protest.
Insurance arrangements: hull & machinery insurance, P & I Associations.
General Average concept and documentation.
Liabilities of the Agent: Agent’s authority including binding the Principal, fiduciary duty, breach of warranty of authority.

Liner Trades

Container ships have largely taken over the tasks of carrying goods to market internationally. In previous decades, these trades had been undertaken by numerous small tweendeckers. Large container ships have satisfied the promoters of economies of scale.

Liner Trades covers the types of vessels operating liner services and their trade routes, and provides a comprehensive description of modern container ship operations and management. Co-operative ventures and consortia within the various service networks are detailed as are the financial and legal aspects of the trades and various types of documentation involved.

The structure of distribution and the role of logistics.
The evolution of the global economy, the supply chain concept.
Concepts of multi modal transport: different transport modes, modal interfaces.
Basic intermodal systems – road/rail/sea; sea/air; road/air; road/ rail.
Inventory control pressures.

Vehicles and equipment, trucks, trains, aircraft and ships. Swap bodies, double stacks, trailer types, container types.
Intermodal interfaces and terminals; depots, warehouses and cargo handling equipment.

Relative importance of main trade routes and commodities. Container routes, rail routes including land bridges, road/rail competition.
The role of short sea shipping. The role of air freight.
Road haulage – international, domestic trunk and local delivery.
Specialist businesses e.g. hanging garments, bonded, perishables, cars, directories etc.

Liner operators, NVOC`s, parcel/courier services, railroads, airlines.
The advantages and disadvantages of public versus private sector ownership; single company versus networks; joint services versus alliances.
Internal provision or outsourcing.

Sea versus road versus air competition, cost-benefit-speed assessment.
Market share, revenue.
Pricing strategy – contribution or volume led.
Price discrimination. Distribution and carrier service contracts.

The need to control inventory costs.
Just in time versus warehoused stock. Consolidation centres; central warehousing versus direct retail delivery.
Management systems. Distribution networks.

Terms of sale, INCOTERMS, documentary credits and other payment methods; uniform custom and practice (UCP)
Bills of lading, surface and air waybills, consignment and delivery notes.

International conventions including Hague/Visby and Hamburg rules, CMR, CIM, TIR.
Multimodal rules ICC/Unctad.
Dangerous goods including International Maritime Dangerous Goods (IMDG) Code and International Carriage of
Dangerous Goods by Road (ADR)

National and international regulations including customs, health, veterinary controls and other restrictions on the movement of goods.

Marketing techniques and market research,
Sales systems – field sales and call centres.
Measurement of customer service levels
The role of e-commerce
The role of quality management, TQM, benchmarking, the use of quality assurance.

Logistics & Multi-modal transport

Logistics is the management of a flow of goods from the point of origin to the point of delivery. The carriage of goods by sea is only part of the story. There are links at both ends of this transport chain and it is essential for shipping practitioners to take an overall view of this complex subject

Understand the purpose of marine insurance, its principles and practice.
Are able to communicate intelligently with professional practitioners in the marine insurance market.

Lloyd’s; insurance companies – UK and overseas; Lloyd’s insurance brokers;
Protection and Indemnity associations; market associations.

The Marine Insurance Act, 1906 – insurable interest; utmost good faith; indemnity; subrogation.
Warranties; Proximate Cause; Statutory Exclusions; Excluded Perils.

Effecting marine insurance; premiums; brokerage.
Time and voyage policies; open covers.
Policy terms and conditions – Institute clauses; hulls & freight (time & voyage), cargo, war and strikes.

Total loss-actual and constructive; particular average; deductibles, franchises and excesses
Sue and labour charges; salvage and salvage charges.
Third party liability; collision liability, limitation of liability.
Professional indemnity; pollution.

General average; York-Antwerp rules; application to marine insurance.

Marine Insurance

Offering financial protection against maritime and transit losses, marine insurance gives the shipping industry the confidence to trade. Without the shelter from risk presented by insurance, shipping transactions and operations would be severely curtailed as players would have to rely on their own funds to cover accidents, loss or damage.

Marine Insurance delivers a valuable briefing on this important sector. Insurance and reinsurance markets are reviewed, as are the role of the marine insurance broker and London market associations, such as the International Underwriting Association. The book analyses the UK Marine Insurance Act 1906 and discusses the principles of marine insurance. In addition, it details the nuances of particular versus general average and covers indemnity and third-party liability.

Looking at policies, Marine Insurance considers facultative cargo insurance and cargo and time clauses in great detail. It includes policies and stand-alone Institute cargo clauses in full for a better understanding of the complexities involved. Claims are examined and the concepts of actual total loss, constructive total loss and compromised total loss are explained in detail.

Origins and influences on offshore vessel design, emergence of dedicated industry needs, relevance of differing geographic requirements
Vessel types and design, differing characteristics and equipment requirements, evolvement in response to changing market requirements, effect of environmental issues
Fleet profiles/development, global geographic distribution of industry influence,reasons for development of specialist sector skills for vessel design and construction

Exploration and related activities including surveying requirements and drilling activities, Jackups, semi submersibles, drillships, Tender rigs
Construction relating to installations, platforms, pipelines, umbilicals, well heads and infrastructure, risers, moorings and associated requirements
Production and platforms (fixed and floating), FPSO’s, FSU’s, offtake/loading buoys, shuttle tankers and other production phase units, production drilling, field enhancement
Maintenance and De-commissioning work, other related tasks and issues

Breakdown of regional markets, geographic coverage, relevance of vessel types and numbers, effects of remote locations
Regulatory regimes, cabotage and crewing aspects
Geographic influences, effect of regional/local conditions
Political aspects, environmental issues

Supply and demand, factors affecting the markets, global and local influences, effects of fiscal regimes, political, national and other influences, subletting
Spot and term markets, relevance and optimal use, variations in commercial and operational practices
Role of the Broker, methods of working, legal, tactical and ethical aspects, differing markets, sale & purchase, newbuilding, bareboat, lease purchase, scrapping
Types of Charterers and Owners, Contractors and logistics companies as principals

Runs and Scope of work, capabilities of vessels and their systems, IMO requirements
Cargoes and specialised requirements/differing work roles, pipe carrying, anchor handling, towage and salvage, support work, standby duties, survey work, sub-sea work, diving support, ROV support, heavy lift, rig moves
Marine logistics

Pipeline installations – rigid/flexible, risers/umbilicals, cable installation
Accomodation units
Platform installation, heavy lift/derrick barges and other types
FPSO installations, mooring systems, suction anchors, subsea manifold/template installations
Well head installations and subsea infrastructure
Alongside mooring, DP, mooring systems, gangway connections

Contract features, maintenance days, termination provisions, substitute vessels, iiquidated damages, sub-letting, profit share mechanisms
The Knock for Knock principle
Indemnities, Hold Harmless agreements
Charter forms used, industry charter forms available, relevant differences, other contracts

HSE environment, safety management
Legislative requirements, compliance procedures, security issues and requirements
Hazardous Cargoes, categories, characteristics
Vessel audits, industry standard format, surveys, incident reporting

The nature of OSV management
Propulsion systems, anchor handling, cargo handling systems
Stowage of dry and liquid bulk products, tank cleaning, deck cargoes, special handling and hazardous cargoes
Technical developments, vessel improvements, environmental changes

Factors for change in the offshore industry, technology, vessel size and design, environmental effects and legislation
Taxation, Crewing and experience levels, insurance
Offshore industry terms and abbreviations

Offshore Support Industry

Offshore Support Industry is an easy-to-read reference for those who want an overview of the technical and commercial issues involved in the chartering, ownership and management of offshore vessels. Complete with maps, diagrams and photographs, this book covers everything from the role of the support vessel to knowledge of the wider offshore industry, including exploration and production of oil and gas, together with expanded coverage of offshore renewables.

Contractually, an offshore vessel charter may share many aspects with a conventional charter party; indeed most current contracts were adapted from existing documents. But the nature of the work of offshore vessels and the environment in which they work places them in a category that requires industry-specific issues to be addressed. This has consequences for the management of vessel operations and for the information that shipbrokers need in order to operate within the industry. Offshore Support Industry also details contractual and commercial variations that are specific to this industry.

Types of ships employed in dry cargo and liquid trades including Cape Size, Panamax and Handy Size bulk carriers,
General Purpose, Container, Ro/Ro, Ore/Bulk/Oil, Ore/Oil and tankers.
Basic dimensions, design and construction details including decks, holds, hatches, derricks, winches, cranes and specialised cargo handling gear.
Ballasting and ballast systems .
Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs.
Content and information available from Capacity, General Arrangement and Stowage Plans.
Compatibility of different ships for cargoes and trade routes.

Commodities – their nature, characteristics, hazards and stowage requirements.
Areas of production. Trade routes and seasonal variations including approximation of time and distance.
Alternative routes and seasonal variations.

Choice of flag, flag states, offshore registries and flags of convenience.
The role and function of classification societies. Classification societies registers. Class maintenance programmes and class surveys.
Safety certification. Port State Control.
Other surveys including on/off hire, pre-loading, bunkers and draft surveys.
ISM Code – origin, application and audits.
Role of the International Transport Workers Federation (ITF) and national trade unions.

The agent’s role; obtaining business, identifying the principal. Dealing with port authorities, terminal operators, pilotage, towage, stevedores, riggers etc.
Services for Master and ship’s personnel including bunkering, storing victualling, medical needs etc.
Cash to master.

Clearing of the vessel with statutory authorities including customs, port health and immigration.
Problems of smuggling, drug offences, illegal immigration.
Signing crew on and off and repatriation.
Noting protest.
Certificates, reason for and validity.

Standard forms of voyage and time charter parties and their suitability to different trades.
Format and clauses common to all Charter Party forms.
Voylay Rules 1993 and FONASBA Time Charter Interpretation Code 2000.
Rights, responsibilities and liabilities of owners and charterers.
Consecutive voyage contracts and Contracts of Affreightment.

Notices of readiness, arrived ship, statements of facts, timesheets.
Avoiding disputes in connection with time counting.

The importance of bills of lading in Port Agency.
The functions of bills of lading and their role in international trade.
Bills of lading legislation – UK Carriage of Goods by Sea Act 1992 or equivalent national legislation.
Hague/Hague Visby & Hamburg rules. Rules for combined transport including UNCTAD/ICC.
Clean and ‘dirty’ Bills of Lading. Letters of indemnity, their use, misuse and the avoidance of fraud.
Types of Bills of Lading: ocean, through, combined transport, waybills. Major and usual clauses.
Other documentation – Booking notes, Shipping notes, Manifests, Dangerous cargo declarations.
Regulatory control of imports and exports including customs procedures and licensing.
Computers: Their application and the development of paperless trading.

The agent’s relationship with his principal including law of agency.
Charterer’s nomination of agent and appointment by time charterers.
Liabilities of the agent including authority, breach of warranty and fiduciary duty.
Errors and omissions insurance.
The essentials of General Average including documentation.
General average documentation.
Cargo and other claims and the role of the owner’s P & I Association.
The role of the agent in arrest in rem.

Funds in advance. Pro-forma disbursements accounts. Identifying costs for owner’s account, for time charterer’s account, for voyage charterer’s account, for merchant’s account.
Separation of owner’s and charterer’s financial responsibilities.
Freight collection and remittance.
Recovery of overdue accounts.

Port Agency

In an industry as international as shipping, it is impossible for a ship operator to have offices in every port where its ships might call. Instead, ship operators rely on a network of port agents to act as their eyes and ears to ensure the safe and secure running of their ships. As the representative of the ship, the port agent helps keep global trade moving and profits flowing.

The role of ports in international trade and transport and how ports can benefit or detract from the economics development of countries and their sea-borne trade.
The effect of globalisation on port choice and how changes in logistics and distribution patterns influence the development or decline of ports.
The geographic reasons for port location and the extent to which this may depend on the nature of their hinterland and natural resources
Different types of ports and access to ports (natural, man made, river, estuary) and the diversity of specialist port operations.
The enhanced role of ports in a through transport context – hub ports, feeder/transhipment ports, intermodal interfaces.
The different forms of the ownership structure of ports and of port services; public/private, landlord only, full or part service provider, terminal facilities within ports.

The fundamental differences between dry bulk cargo ships, general-purpose ships, liners (container, break-bulk and Ro-Ro) and tankers, including Ore/Oil and Ore/Bulk/Oil carriers. (Students may be expected to produce sketches).
The different categories of Tankers including carriers for crude-oil, petroleum products, chemicals, liquid gases, vegetable oils etc.
The purpose and basic design and construction features of decks, holds, hatches, derricks, winches cranes and other cargo handling gear.
Terminology of measuring ships including pseudo-tonnages – NT and GT. Actual tonnages – deadweight (dwat & dwcc) displacement (total and light). Capacities – bale cubic & grain cubic, TEU. Stowage Plans.
Ship types are required for the different cargoes and trade routes.
Basic characteristics of the main five commodities namely Coal, Ore, Grain, Fertilizers and Oil.
Hazards associated with the transport of certain commodities.
Special requirements of unitised liner cargoes.
The main places of origin and appropriate trade routes of other important cargoes plus any seasonal variations. Working knowledge of distances and voyage times.
A good grounding in maritime geography and access to an atlas is essential for this part of the syllabus.

The basic rationale of port business.
How ports are structured to meet the delivery of services and the relationship between infrastructure, conservancy, navigation and handling facilities.
How the activities are organised to interface with one another and typical port organisational structure.
How port performance can be measured – vessel turn round time, cargo volume, speed of cargo handling, damage and pilferage prevention.
Responsibility for and nature of marine operations – conservancy, dredging, navigation aids, navigation control etc.
Management of cargo operations on board and ashore. Understand the prime importance of avoiding traffic and cargo congestion.
The importance of safety management.
The importance of security to prevent terrorism, illegal immigration, theft and smuggling.
The role of trade unions and other labour organisations including ITF.
The role of statutory bodies – Customs, Immigration, Port Health, Marine Safety etc.
Understanding of the needs of port users – shipowners and operators, ship agents, forwarders, truckers, rail and barge operators.
Information flow requirements of the port, statutory bodies and port users.How these are met by port community computer systems.

The nature of port competition – national and international.
The need for market information – trade growth, vessel development, commercial needs, financial viability.
The relevance of geographic location to vessel transit time and port rotation.
The role of shipowners/ship operators, shippers/receivers, freight contractors, forwarders and other transport interests (eg railways, road hauliers).
Techniques of port promotion – identification of potential users.
The impact of inland transportation and inland depot/handling facilities.
The scope for collaboration on through transport.

The nature and types of port charges – statutory navigational, services to vessels, services to cargoes.
The cost factors in pricing – infrastructure, navigation services, equipment, staff and labour, marketing, security and safety, environmental.
Pricing policy – ‘not for profit’, government influenced, fully commercial.
Effects of competition on pricing policy.
Pricing as a tool to influence demand.
Factors used in establishing pricing structures – lengths of time included in base charge for vessels and cargo; units on which charges are based; simplicity of application and transparency; volume rebates.
Regulatory mechanisms; user appeals against charges.
The integration of port charges with charges of other port operator and inland transport organisations.
Through transport charges.

The nature of port constitutions and the legal framework of ownership.
Port laws and bye-laws, national legislation.
The development of port facilities; the financing of port development.
Law relating to port security, operators’ liability and insurance.
Laws and regulations relating to the employment of dockworkers.
The freedom of port organisations to diversify their activities.
Development, ownership and control of Free Ports and Free Zones.
The impact of international conventions on ports.

Port development policy – governmental role, regional needs, competition.
Planning principles and project planning – role of traffic forecasts, analysis of demand factors, implications for marketing, involvement of users.
Infrastructure/operating structure.
Joint ventures for financing or management, policies for common user and sole user terminals.
Capacity calculations, relationship between berth occupancy, service time and waiting time, berth throughput.
Port layout, physical constraints, terminal planning, specialised terminals, multipurpose terminals and support operations.
The requirements of commodities – break bulk, neo-bulk, special cargoes, dry bulk, liquid bulk etc.
Flow analysis of cargo in a terminal.
Environmental factors and constraints.

Financial management of ports – budgets, capital and revenue expenditures, investment appraisal.
Financial and commercial objectives, analysis and monitoring of costs, port cost accounting.
Corporate analysis of financial data, budgetary planning and control.
Project evaluation and review techniques, capital budgeting.
Financial and economics appraisal of port proposals and traffic forecasting.

Port buildings, transit sheds, warehouses, maintenance workshops, amenity buildings, offices for port users etc.
Cargo handling equipment, type cost and numbers, maintenance management.
Future changes in vessels and cargo handling.
The effect of vessel size.
Procurement and materials management.

Different types of ownership: national or local government owned and managed, other public sector-owned ports and port trusts.
The trend towards deregulation of ports.
Transfer from state to private ownership, methods of privatisation; sale of shares, management and employee buyouts.
Private sector owned ports; different types of ownership, outright, public sector ownership of port infrastructure combined
with private sector provision, public ownership of port superstructure with private management and/or operation.
Lease contracts; joint ventures.

Port and Terminal Management

Port and terminal managers have had to adapt fast to meet rising demand driven by the rapid expansion in world trade during the 21st century. Globalisation has put port models under growing pressure in increasingly competitive cargo markets. Better productivity - through expansion or more efficient use of existing assets - is crucial for economic survival.

Key functions in ship management: commercial, operational, technical, crewing, bunkers, finance & administration.
Type of organisational structure: in-house, all or part contracted out.
Shipmanagement contracts (BIMCO Shipman)

Design and construction with particular reference to suitability for cargoes and trades
Dry Trades: Liner Trades – conventional tween decker, multi-purpose vessel, containership, Ro/Ro cargo, barge carriers
Tramp Trades – conventional bulk vessel (handy size, panamax, capesize)
ore carriers; combination carriers (ore/oil, ore/bulk/oil), refrigerated ships.
Wet Trades: Crude (ULCC, VLCC, Suezmax, Aframax) Product
Carrier; chemical carrier; gas carriers; specialist vessels
Ship-borne cargo handling gear including heavy lift and self unloaders
Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs. Content and information available from capacity, general arrangement and stowage plans.

Choice of flag, flag states, offshore registries and flags of convenience.
The role and function of classification societies. Classification societies registers.
Class maintenance programmes and class surveys.
Safety certification. Port State Control.
Other surveys including on/off hire, pre-loading and bunkers
ISM Code – origin, application and audits.
Environmental protection; pollution liability.

Fixed costs – return on capital, amortisation, debt servicing.
Daily operating costs – crew expenses, victualling, stores, lubricants, insurance, P & I calls (including reserve for deductible), repair/ maintenance, dry docking, communication.
Voyage related costs – bunkers, port costs (including tugs, pilots, agency fees), canal dues, loading/discharging costs.
Budgeting and financial results.

Manning levels, recruiting officers and ratings. The Master and his authority. Using crewing agencies.
International regulations: Standards of Training, Certification & Watchkeeping (STCW),
International Labour Organisation (ILO), International Transport Workers Federation (ITF). National trade unions.
Essential elements of crew costs; basic wages, overtime, allowances, leave, social costs. Crew nationalities, mixed crews.

Hull and Machinery. Markets and placements. Institute warranties. Institute Time Clauses.
Additional cover (war risk, ice etc.), Total Loss, Constructive Total Loss (CTL).
P & I – The constitution and cover provided by mutual associations. Strike insurance, pollution insurance.
General Average when and why to declare it. The role and function of average adjusters.
Coping with casualties. Limitations of liability, salvage claims. Lloyds Open Form and salvage arbitrations.
Cargo claims.

Commercial Operations: voyage instructions, loading and discharging, compliance with contract including speed and performance issues. Other post fixture matters.
Technical Operations: Repair & maintenance, stores, dry docking.
Vessel routing: geographical and meteorological considerations, load line zones, canals and waterways.

Stowage factors; Characteristics; Stow plans & stability; compatibility, cleanliness, segregation etc.; IMDG Code, Outturn reports, tallying, sampling & disputes; Cargo damage, survey & reports.

Bunkers: Types of fuel supplied and their characteristics; Main bunker ports. Key players in the bunker market, contracts (use of FuelCon), quantity and quality measurement, sampling and testing.

Freight/hire collection, port disbursements, dealing with port agents.
Demurrage/despatch claims. Dealing with contractors and sub-contractors including Tugs, Pilots, Stevedores, Terminal operators, Riggers, Hold/Tank cleaners, slop disposal services, dry docks, engine builders, lubricant and bunker supplies, repairers, ship chandlers etc.

Route calculations. Maximising cargo lift – load line zones and stability issues.
Bunker planning – choice of bunker ports.
Comparing different employment offers and alternative routes.

The legal position of the ship managers in relation to; cargo claims; arrest in rem; freezing orders and late hire payment.

Ship Operations and Management

The thousands of ships, vessels and craft that are trading in the world today all have to be operated and managed. For some maritime operations, the task is a straightforward one, but it becomes more challenging as the venture increases in size and complexity. Ship management and the operation of ships is a crucial branch of shipbroking.

Anyone planning to study this complex subject with a view to employment with a ship operator or a ship manager should read this book as it covers all areas that are necessary for ship operations. These will include the ship, its registration and classification, insurance, crews and bunkers. The structure of shipowning and management organisations is detailed in the book as well as the ship manager's legal relationship with others. Voyage estimating and accounting are also discussed.

All types of ships.
Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs.
Types of machinery, cargo handling and any other specialised equipment.
Current and future development of vessels new and specialised designs including innovations.
The effects of recent legislation.

Geographical location of newbuilding yards, demolition buyers and areas where particular types of vessels are utilised. Cargoes and trading routes, physical or meteorological limitations on dimensions and ship types.

The main and ancillary purposes of ship registration.
Requirements, advantages and disadvantages of various flags; dual flagging.
The role and function of classification societies and classification society registers.
When and how classification may be involved in a ship’s sale.

Shipowners – Development of differing types of owning groups e.g. individual entrepreneurial owners, corporate structure, conglomerates, investment groups, pools.
Other parties involved – brokers, charterers, ship breakers, bankers, other financiers, lawyers, notaries, consuls and registrars.

The markets for new building, second-hand and demolition sales and purchases and their inter-relationships.
Factors affecting the market including natural catastrophes, environmental, aid programmes, political crises. Tramps and liners. National traditions and weaknesses.
The production and interpretation of both statistical and written market reports.

The necessary content of a contract for the sale and purchase of a ship whether for new building, second hand or demolition, including detailed understanding of fundamental clauses.
Drafting summaries of agreements and Memoranda of Agreement.
All standard forms currently in use as a base for a contract and necessary or desirable additional extra clauses or alterations.
Procedures, reasons for and form of documentation produced by buyers, sellers and other parties in connection with completion of a sale and delivery and legal transfer of a ship.
The different certificates and compliances that might be relevant the time of sale of a ship. Issuing authorities and validities including compliance with international and national authorities.

The conduct, etiquette, ethics and procedures of a negotiation. Translating a principal’s requirements into suitable clauses.
Drafting offers with the correct sequence of clauses, counter offers, specific clauses, recapitulations, completion agenda and understanding their implications.
The importance of information given ‘without guarantee’.

The information needed by a financier when considering a project.
Providers and different methods of financing including mortgages, leasing and bareboats
Means of providing security for loan.
Currencies, interest and exchange rates.
The role and function of insurance in sale and purchase transactions inclulding P & I insurance.

Role and legal position of the valuer, liabilities and protection.
Reasons for and types of bodies requiring valuations. Salient facts needed to carry out valuations. Methods of assessing values.

Law relating to sale and purchase. Areas of dispute including: Validity of agreement;
Entitlement to commission; Rejection of the vessel by buyer; Condition of the ship on delivery; Validity of Notice of
Readiness; Description of vessel in the preamble; ramifications and significance; Brokers’ liability.
The effect of legislation on both existing vessels and new buildings or construction

Ship Sale & Purchase

Selling ships is a highly specialised and, when successful, highly profitable sector of the shipbroking market. But the process is complicated and the failure rate is high. To have a chance of succeeding, a sale & purchase broker needs to be adept at marketing, maintaining relationships, negotiating, drawing up contracts and assessing documentation

Thoroughly understand the objectives of lenders and borrowers in the shipping business, including the areas where agreement or consensus is usually achieved and potential areas where there is conflict.
Thoroughly understand the basic features of shipping cycles ‘from boom through to bust’, and the implications of this for the principal participants in the ship financing decision.
Be aware of the historical context of ship finance (over the past four decades), and the significance of wider economic phenomena in the shipping finance business.
Thoroughly understand the principal sources of security to lenders to shipping companies.
Understand, by reference to appropriate case studies, the consequences for both borrowers and lenders of failing to take into account the phases of the shipping cycle in which the financing decision is made.

Thoroughly understand the basic principles of good lending, including the importance of proper evaluation of the asset to be financed, the cashflow to be generated, and the significance of ‘name’ or reputation.
Be aware of the Japanese model applied in shipping finance during the 1960’s and 1970’s.
Thoroughly understand ship mortgages, and their importance as a source of bank security.
Understand the legal rights of mortgagees in the event of default by the borrower. Understand case studies in which mortgagee’s rights have been asserted over assets.
Be aware of standard terms in a ship mortgage. Understand the purpose of ship mortgage indemnities.
Understand the purpose and practice of assignment of insurances and earnings as sources of banker’s security.
Understand the purpose and practice of charges or liens over shares, and guarantees from parent companies in respect of loans made to subsidiary companies.
Thoroughly understand the crucial importance of value maintenance clauses in ship finance loan agreements.
Understand standard terms in the documentation of a guarantee provided by a parent in respect of a loan made by a bank to its subsidiary.

Thoroughly understand the historical reasons why it has been difficult to attract external equity financing into the shipping business. Reasons include the volatility of the sector, the perceived secretiveness of ship owners, the single ship company nature of the business, and international jurisdictional issues, including the ultimate remedy of enforcing a court order for the arrest of a ship.
Understand the traditional points of conflict between ship owners and external investors in their companies, and the mechanisms by which these may be resolved.
Be aware of the reasons why ship owners may decide to list their shares on several international stock exchanges rather than one.
Understand the principal characteristics of the main international stock exchanges on which shipping equity is traditionally listed, including the New York Stock Exchange, the Oslo Bourse, and the Tokyo Stock Exchange.
Be aware of international shipping companies which have elected to list their shares on several international stock exchanges.
Thoroughly understand the implications of the US Sarbanes Oxley Act 2002 for shipping companies looking to list on US stock exchanges.
Thoroughly understand the different types of shares which may be issued by shipping companies, and their relative advantages and disadvantages for both issuers and investors, including ordinary shares, partly paid shares, rights issues, cumulative participating preference shares, convertible preferred stock, and participating preferred stock.
Be aware of the rationale of private placements, and the significance of timing.

Thoroughly understand the differences between debt and equity financing in terms of payment of mandatory interest versus payment of discretionary dividends.
Be aware of some of the different forms bonds may take, and the significance of different payment schedules.
Be aware of the functions and characteristics of sinking funds. Thoroughly understand the structure and purposes of convertible bonds.
Thoroughly understand the attractions and implications of conversion of convertible bonds from both the ship owner issuer’s and investor’s perspectives.
Understand the significance of phases of the shipping cycle for the timing of issuance of convertible bonds, and for predicting the likelihood or otherwise of the investor to convert from debt into equity.
Be aware of the principal consequence of conversion of a convertible: the prohibition of re-conversion from equity back into debt.
Understand the basic features of convertible bond issues in case studies provided.
Understand the structure and use of mezzanine finance, and its suitability in shipping finance.

Understand the principal objectives of the participants to the loan decision: the ship owner and lender.
Thoroughly understand the characteristics of the different types of loans used in shipping finance, including plain vanilla loans, moratorium loans, bullet repayment loans, balloon repayment loans, back/front ended loans, and revolving credit facility loans.
Thoroughly understand the rationale for syndicating a loan, and the principal responsibilities of all parties to bond syndications.
Be aware of the objectives of parties to syndications and other loans described in the case studies provided.
Thoroughly understand the principal features, purposes, and participants to the hedging techniques of interest rate and currency swaps.

Thoroughly understand the basic objective of securitisation: the bundling together of homogenous cashflows and their use as collateral for a bond issue.
Thoroughly understand the basic structure of a securitisation, and the role of all participants.
Understand the procedural steps in a securitisation.
Understand the potential benefit of securitisation as a financing technique for Third World shipping companies.
Be aware of the objectives of ship owners in securitisations described in the case studies provided.

Be aware of the German government policy rationale for KG ship financing. Thoroughly understand a typical KG ship financing structure. Understand the principal advantages of KG finance. Be aware of case studies in which KG financing has been utilised. Understand the Norwegian KS system of ship finance.
Be aware of the similarities between KG and KS financing.
Thoroughly understand the structure of a typical KS financing.

Be aware of the history, purposes, and composition of the main international body concerned with the setting of capital adequacy ratios for banks: the Basel Committee.
Thoroughly understand the significance of the capital adequacy ratio for shipping companies.
Understand the basic composition of the Basel capital adequacy ratio in terms of tiers and asset weighting.
Understand capital financing theory, including the basic elements and implications of the Modigliani-Miller theorem.
Be aware of criticisms of the Modigliani-Miller theorem.
Thoroughly understand that in the context of shipping finance; the debt-equity mix-is not a static structure.

Shipping Finance

Without access to finance, the maritime industry as we know it would cease to exist. Whether it is the purchase of a ship, investment in a shipping start-up or the outlay into research and development, finance is the engine of progress in the shipping world.

Taking the lender's perspective, Shipping Finance considers the basic principles of good lending and sources of security for loans. From the borrower's angle, Shipping Finance examines different equity sources, from debt financing and the bond markets to mortgages, loans, leasing, securitisation and tax-efficient financing schemes. It also examines the all-important debt-equity balance and Islamic finance options.

Concept and construction of a charter party; descriptive warranties, breaches and consequences; frustration; deviation; war risks and other protection clauses.
Safe port warranty; arrived ship; cancelling; notice of readiness.
Voyage charters – laytime, demurrage and despatch; damages for detention; freight, deadfreight and freight payment.
Time charters – payment of hire and remedies for non-payment; delivery, redelivery and offhire; responsibility for cargo; performance (speed and consumption).
Bareboat charters (newbuildings and second hand); lease charters; bareboat registry.
Time barring of actions; contractual time barring, statutory time barring.

International cargo liability conventions, rules and revisions. Reasons for the introduction of rules, their application and their relationship with insurance. Common and private carriers; carriers’ liabilities.
The areas of dispute and litigations arising from the interpretation of the rules.

The role and function of bills of lading and mate’s receipt.
Essential characteristics of liner bills including combined transport and through bills of lading.
Charter party bills of lading including difference between owners’ and charterers’ bills of lading.
Negotiability of title including Carriage of Goods by Sea Act 1992 or equivalent national bills of lading acts.
Principal bills of lading clauses including identity of carrier, law and jurisdiction and Himalaya clause.
Standard protection clauses including Paramount, Jason, Both to Blame.

The application of International Conventions. Contract of carriage; rights and responsibilities of parties under Common Law and statute; limitation of liability for life injury and property claims.

Unlike other aspects of ship-owning structures mortgages are still covered under English law in many jurisdictions.

Arrests; jurisdiction, types of claim, priority of claims.
Arrest conventions. Basic procedures of arrest; freezing orders.

General Average; rationale, practice and rules. Salvage agreements; salvage arbitrations. Towage agreements.

Conventions and applicable law including criminal and civil law.
Pollution as a nuisance.

International Conventions; areas of conflict; apportionment of fault; measure of damages.

International Conventions. Those entitled to limit; methods of calculation and distribution; how limitation may be broken.

Enabling clauses.
The procedures in litigation, arbitration and other systems of dispute resolution.
Arbitration locations and significant differences in procedures.
Acts and rules covering litigation hearings and arbitrations.
Damages – contract and tort.

Shipping Law

The law applies in some form to every aspect of our lives, and this is especially so in shipping because it is such an international and complex business.

Nearly all practical documents of an international nature involved with shipping business are based on English law and the vast majority of international contracts for sale of commodities and the contracts of their carriage are governed by English law.

Shipping Law covers the most important areas of wet and dry law. Legal aspects of charter parties and bills of lading are examined and conventions on the carriage of goods by sea are discussed. Ship ownership and Admiralty jurisdiction, general average, salvage, towage, collision, dispute resolution and limitation of liability are considered.

Problems and disputes will arise in all aspects of shipping business and so Shipping Law will be of great value to all professionals involved in the business of shipping.

The basics of oil refining and its products.
Crude Oil – characteristics.
Crude Carriers, VLCC, ULCC, OBO, O/O, Suezmax, Aframax
Petroleum Products – product carriers, dirty and clean – characteristics of cargoes
Vessel systems: Pumps, Pipelines, Manifolds, Cargo Heating (coils/heat exchangers),
Crude Oil Washing (COW), Inert Gas Systems (IGS), Segregated Ballast Tanks (SBT), Double Hulls.
Chemicals – Tank coatings, IMO Certification. Commodities and handling systems.
Compatibility of grades and coatings.
Parcel cargoes and carriers.
Gas – Liquid natural gas (LNG), liquid petroleum gas (LPG); awareness of cargo tank types; pressure, semi-refrigerated, refrigerated; typical size ranges.
Vegetable oils and juice, wine.
Basic constructional details and approximate tonnes and dimensions of vessels employed in the tanker trades.
Classification; the importance of oil company vetting inspections and oil company acceptability.

Main routes for crude oil, products, chemicals, gas. Essential geography of the tanker trades understanding of location of production areas, refineries, pipelines, oil terminals. Typical locations of offshore loading and discharging facilities.
Environmental protection, pollution liability.

Market Practitioners; Shipowners, Oil Companies, State Companies and Trading Companies. The role of the broker.
Factors affecting the market; political issues, sanctions, the role of OPEC, natural and political crises.
Methods of communication and market reporting.
International organisations relevant to the tanker trades especially International Maritime
Organisation (IMO), Worldscale, Oil Companies International Maritime Forum (OCIMF),
Intertanko, International Tanker Operators Pollution Fund (ITOPF).
The impact of e-commerce on market practice.

Standard voyage and time charter parties and standard additional clauses.
Consecutive voyage charters and Contract of Affreightment, Bareboat Charters.
Rights, responsibilities and liabilities of owners and charterers.
Drafting additional clauses and addenda.

The functions of the Bill of Lading, risk of fraud and non production of original at discharge port or change of discharge port and practical solutions including Letters of indemnity.

Procedure of negotiations; offer and counter offer, essential details to be included in offers, subjects and fully fixed. Legal, tactical and ethical requirements.
The role of the post fixture department.
Breach of Warranty of Authority (with and without negligence).
Professional negligence and indemnity insurance. Defaulting Principals

Freight and Hire calculation and payment methods.
Voyage charters – deadfreight, demurrage.
Time charters – late hire payment, payment for bunkers and associated clauses;
Performance claims, off-hire events; delivery, final voyage and re-delivery.
Commissions and brokerage
The use of freight market derivatives.

Importance of clarity of valid notice of readiness clauses. Tendering valid NOR.
Commencement, interruption and pumping warranty; Statement of Facts, Laytime Statement, calculation of Laytime and Demurrage.

The structure and use of Worldscale.
Voyage Estimating – making the calculation using Worldscale, $/tonne and lump-sum rates.
Comparing alternative voyages, comparing voyage with time charter.
For Time Charter calculation of Ballast Bonus; comparison of $/day with DWT/month.

Resolution of Disputes; commercial courts, arbitration and Alternative Dispute Resolution (ADR), how arbitration works, resort to the courts. Role of the Shipowners and intermediaries P&I associations.

Tanker Chartering

The general impression of a tanker is a huge vessel steaming from the Middle East to consumer countries full of crude oil to be refined. But the tanker trade is much larger and much more complex than that. Crude oil is just a part of it; a large part, but there are many other elements.

Crude oil is carried in very large crude carriers, or VLCCs, as well as in Suezmax, LR2 and Panamax tankers. This book explains the characteristics of each type and their typical trades. It also details other tanker trades. These include clean products such as petrol or gasoline, diesel, gasoils, jet fuels and all the other refined products.

Oil is also refined into elements called chemical feedstock, where clean fluids such as naphtha are turned into everyday chemicals and plastics. These end-products are carried around the world in chemical carriers. Gas carriers are also a branch of the tanker sector, carrying natural and petroleum gases. As well as the ships and the trades, Tanker Chartering describes types of employment and the relevant contracts.

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