Shipping

Main Types of Ships 

Passenger liner — this is normally used for carrying passengers, mail and some express cargo. It has a regular time-table and only calls at major ports. 

Cargo liner — this is mainly used for carrying a variety of cargo and sometimes a few passengers. It has a regular itinerary. It follows a regular itinerary. It carries a variety of cargo, e.g. machinery, textiles, rubber, wool, and meat in refrigerated chambers and goods in containers. It is highly unlikely that the exporter will have sufficient quantities of one type of non-bulk cargo at any time to fill a whole ship. The freight rates for goods and passengers carried are fixed by their owners with their competitors at the shipping conferences. They are not subject to bargaining with the shipper. However, to encourage shippers to use the services of a particular shipping conference, rebates ‘are given to shippers if they use the services only of members of a particular conference at all times, and not those of a non-conference line. It is not subject to charter (i.e. the hire of the whole ship). However, shipping space can be booked in advance through the various shipping companies or agents who know the itinerary .of the ship. Generally, more control and supervision are exercised over the ship's activities including handling which covers lighterage, movement of cargo from shore to ship and from ship to storage hull.

Shipping conference 

A shipping conference is an international organization formed by the owners of cargo liners which ply the same routes in a particular area and charge the same rates of freight for carrying different goods. It is difficult to find a cargo liner which does NOT quote the conference rate. .The same liner company may belong to more than one conference and where routes intersect or overlap, the respective interests of the conferences concerned are secured by mutual agreement. Members of the liner companies forming a shipping conference meet periodically to discuss policy and to fix uniform rates for the different classes of cargo.  

Advantages of shipping conference to the ship owners: 

(a) The conference prevents competition amongst members.

(b) The conference tries to keep freight rates at a profitable level.

(c) Members' ships are assured of a sufficient minimum of cargo to feed the regular services they undertake to provide. This is achieved by giving shippers who ship their goods entirely in ships belonging to a particular conference deferred rebates on all freight charges paid in a year.  

Advantages of shipping conference to shippers: 

(a) Shippers are assured of regular sailings.

(b) Shippers are also assured of definite delivery dates for their goods. 

Disadvantages of shipping conferences to shippers: 

In order to qualify for rebates in freight rates, shippers have to limit themselves to cargo liners belonging to a particular conference.

 

Transportation via liners — this can be planned ahead as space on ships can be booked ahead. Charges are made according to published tariff rates fixed by the shipping conference. 

Tramp — this is essentially a cargo ship which does not belong to any special line of services or sail to any special place. It has no special itinerary, but goes wherever it is commissioned. It usually carries only one type of cargo in bulk, e.g. wheat, timber, rice, maize. It is very likely that an exporter would have enough of one type of bulk cargo to fill a whole ship. Hence, it is more economical to transport bulk cargo in a tramp. The freight rates are determined by bargaining (which depends on supply and demand conditions) at the time when the ship is chartered— usually at the Baltic Exchange, London. Prospective charters normally contact the local shipping agents indicating to them the type of ship required, the date of loading and destination, etc. If necessary, they will contact the shipping brokers at the Baltic Exchange who will then find a suitable tramp for charter. The tramp can be chartered either for a voyage or a period of time. All the terms of the charter are contained in an agreement called a charter party. It is doubtful if a tramp provides such a handling service.

Bulk carrier— This is a ship which is specially built to carry a particular type of cargo, e.g. a bulk carrier is for iron ore.  

Tanker — this is a special bulk carrier which carries liquids or gases such as oil or liquefied natural gas.OBO ship — this is an ore-bulk-oil carrier which uses different holds to transport at one time a mixed-bulk cargo. It has holds which can be completely sealed off one from the other. 

Roll-on, roll-off or Ro-Ro ship — this is a highly specialized ship that allows loaded vehicles like trucks, trailers, passenger cars, etc. to be driven aboard through ramps at the stern and sides. Using a system of interior ramps, these vehicles are driven to their proper positions, either below decks or topside. At their destinations, they are driven off the ship in reverse to the loading operation. 

Container ship — this is built to carry large standardized containers. Containerization involves the stacking of goods in large metal containers. These containers usually conform to international standards of 20 ft x 8 ft x 8 ft or 40 ft x 8 ft x 8 ft. The goods are stacked into the container either at the consignor's premises or at the container terminal and transported as a single unit. These standard sized containers can be transferred between different forms of transport, especially between road, rail and sea, as Lorries, rail wagons and ships have been specially designed to hold them. This integration of different methods of transport ensures that goods are facilitated by using special cranes. There is an increasing tendency for shippers to send general cargo like mail bags, etc. in containers. 

Advantages  

There is quicker turn-round time for ships because loading and unloading take place simultaneously after the first cell has been emptied, resulting in faster service. This means less unproductive delay and less port dues. There is increased security. Pilferage is quite impossible for the containers are packed and locked by the consignor and opened only by the consignee. Operational and handling charges can be reduced by as much as 50%. This is due to savings on packing, reduced handling and checking of contents and reduced manpower requirements. There is increased protection from damage due to pressure, water or undue weight. It reduces the cost of transporting the goods to the harbor. Packed and sealed containers may be collected from consignors as a single unit and taken to the harbor to be loaded on to the container ships. When the ship reaches its destination, the containers are unloaded onto specially made trucks and delivered to the consignee's premises. 

Disadvantages 

High capital costs are involved in equipping a container terminal with all the proper facilities. High training costs are incurred in training the labor needed to handle the sophisticated .equipment to load and unload containers. Labor-related problems like uncomfortable working conditions in filling or emptying containers, resistance to change on the part of port workers, etc. may arise. It is not suitable for small loads as there is wastage in space. Not all goods are suitable to be transported via containers, e.g. it is better to ship small consignment bulk machinery or vehicles by cargo liner on account of their dimensions, and oil by oil tankers. 

Note: The above classification is only a general way of dividing ships. In practice, various combinations are possible. For example, a tramp could be an oil tanker operating on short routes in the South China Sea. Alternatively, a liner could be a container ship on a regular, route between ports in India across the Indian Ocean and South East Asian ports.

Reference:

Betsy, L., & Tan, K. S. (1999). Transport., Modern certificate guide: Elements of Commerce
                      (pp. 148-150). Singapore: Oxford University Press.