MARITIME PRACTITIONERS
By Kevin Joseph
MBA (Energy Trading)
Merchant
 A person or company involved in wholesale
trade ,especially one dealing with foreign
countries or supplying goo...
The practitioners should be aware that the
demand for shipping is a derived demand.
Shipping is a derived demand, which me...
CHARTERING MARKETS
The Dry Cargo Market
 Dry bulk trades comprise iron ore, coal, grain,

timber, steel and other similar cargoes which are
...
Dry Cargo Charter Parties
Two most commonly used charter parties used for dry cargo are
the Baltime and the New York Produ...
 Single Voyage Charter:
Ship agrees to go to load a cargo of an agreed

quantity of a commodity and carry it to ‘B’ for w...
Time Charter
The shipment is responsible for providing a seaworthy ship
with valid classification and a master and a crew,...
Contract of Affreightment
 Binding agreement which sets forth the obligations

and rights of the owner of a vessel and a ...
Bare Boat Charter
 The owner gives possession of the ship to the charterer and

the charterer hires its own master and cr...
Terminologies used in voyage
charter :
 Trimming
 Dunnage
 Tallying

 Stevedore
 Agents
 Trimming:

Applies to bulk cargoes such as coal, where the surface of the
loaded cargo needs to be leveled out to make b...
Steve Dore
 The primary role of a

stevedore is the loading
and unloading of freight on
an off ships while they are
in po...
 Stevedore(also known
as a dock worker, docker
or dock laborer, wharfie)
is usually the entry point
for individuals seeki...
 Refer document in
folder.
Skeleton of voyage charter :
 Date
 Names of parties
 Name of the ship with some











description
Loadin...
Time charters :
 The shipment is

responsible for providing a
seaworthy ship with valid
classification and a master
and a...
Skeleton of time charters
 Date
 Names of parties
 Name of the ship with some








description
Speed and fuel...
International chartering market
at Work
Internet
 Dry cargo chartering takes place

all over the world

 Geological loca...
The practitioners in the
shipping communities :
 Charters and their

agents
 Owners and their brokers
( here brokers can...
Exclusive brokers :
 These can be shipbrokers that
negotiate charters only for one
shipowner or one charterer.


It can ...
Competitive brokers :
 Here the principal places his

business on the market through
several brokers who are in
competiti...
The tanker market


This market is separate form the dry
cargo markets but tanker chartering
itself subdivides into separ...
Crude Oil
 This is the trade that

hits the news whenever
there is political unrest
in the Midddle East.
 Catastrophic p...
The things which conspired to stop
the continuing upward trend in
tanker sizes are Draft question
 Economy of the ships-...
Petroleum products



These are those which are extracted from
the crude oil which are to be burnt in that
form.
Ranging...
The second tanker
market is that for refined
petroleum products.
The oil consuming world
quickly found that the
most econo...
Chemicals and other products
 These are the by
products of the oil

refining . e,g
feedstocks for
manufacturing plastics....
 Ships in such trades have to be equipped

with showers at intervals along the deck
so that any splashes may be washed at...
Tanker charter parties


Tanker market has its single voyage and consecutive voyage charters and a
contracts of affreight...
THANK YOU
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Maritime - Practitioners

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Maritime - Practitioners

  1. 1. MARITIME PRACTITIONERS By Kevin Joseph MBA (Energy Trading)
  2. 2. Merchant  A person or company involved in wholesale trade ,especially one dealing with foreign countries or supplying goods to a particular trade  An individual whose occupation is to buy items at wholesale price and sell them at retail price
  3. 3. The practitioners should be aware that the demand for shipping is a derived demand. Shipping is a derived demand, which means that shipping as an industry depending on people who are willing to trade by sea using ships. Eg.demand for grain trade increases, so demand for shipping grows with it.
  4. 4. CHARTERING MARKETS
  5. 5. The Dry Cargo Market  Dry bulk trades comprise iron ore, coal, grain, timber, steel and other similar cargoes which are shipped in bulk.  Dry Cargo market relies on a range of vessels and covers all the world’s major trade routes.  A chartering contract is the example of a transaction entirely governed by market forces.  The relative bargaining strength of the two parties depend on the current state of the market.
  6. 6. Dry Cargo Charter Parties Two most commonly used charter parties used for dry cargo are the Baltime and the New York Produce Exchange (NYPE) Charter parties. The Baltime is often considered to favour shipowners while the NYPE is considered more advantageous for charterers. Many of the standard forms are imposed on the markets by the charteres:  To fit into the their contacts of sale of the commodity itself.  The charterer is most of the time in a stronger position as far as terms and conditions are concerned as they are static and is easy for them to band together with the competitors.
  7. 7.  Single Voyage Charter: Ship agrees to go to load a cargo of an agreed quantity of a commodity and carry it to ‘B’ for which the consideration will be rate of freight (calculated on per tonne basis)  Consecutive Voyages: When there are more than one cargo to move and in a consequence , it is convenient to fix the cost i.e to contract with the owner.
  8. 8. Time Charter The shipment is responsible for providing a seaworthy ship with valid classification and a master and a crew, so that the ship can be sailed to its final destination.  The charterer is responsible for loading, stowing and discharging cargo safely.  The charterer is responsible for giving the master the effective orders and instructions with regard to when and where the cargo should be shipped.  The charterer is responsible for providing fuel for the vessel.
  9. 9. Contract of Affreightment  Binding agreement which sets forth the obligations and rights of the owner of a vessel and a merchant.  The vessel owner undertakes to provide cargo space (at a specified time and at a specified freight)to the merchant who is liable for payment whether or not the cargo is ready for shipment  The contract addresses issues associated specifically with the vessel, its crew and the routes on which it will be piled
  10. 10. Bare Boat Charter  The owner gives possession of the ship to the charterer and the charterer hires its own master and crew.  The giving up of possession of the ship by the owner is the defining characteristic of a bare-boat charter.  The bare-boat charterer is sometimes called a "disponent owner".  The chartered takes over the vessel for a stated period of time with a minimum of restrictions for a stipulated sum.
  11. 11. Terminologies used in voyage charter :  Trimming  Dunnage  Tallying  Stevedore  Agents
  12. 12.  Trimming: Applies to bulk cargoes such as coal, where the surface of the loaded cargo needs to be leveled out to make best use of the space available and to minimize the danger of the cargo shifting in the hold during the voyage.  Dunnage: Is the timber used to prevent metal to metal contact between cargo and the ships to hold or between ship plates. And to stop loose items from moving around in the hold during the voyage.  Tallying: Is the name given to the procedure of checking the no of packages, as they are loaded or discharges.  Stevedores: One who is employed in the loading or unloading of ships.
  13. 13. Steve Dore  The primary role of a stevedore is the loading and unloading of freight on an off ships while they are in port Other responsibilities includes 1-mooring and unmooring ships  2- cleaning and preparing container  3-stacking and securing cargo's  4-adminitravtives process associated with the transfer of cargo
  14. 14.  Stevedore(also known as a dock worker, docker or dock laborer, wharfie) is usually the entry point for individuals seeking a carrier on the docks or within ports  Stevedores can than progress to became a crane operator, foreperson or container terminal manager
  15. 15.  Refer document in folder.
  16. 16. Skeleton of voyage charter :  Date  Names of parties  Name of the ship with some          description Loading port Cargo nature and quantity Discharging port Lay days and cancelling dates Rate of freight and manner of payment Loading/discharging cost Speed of loading and discharging Demurrage rate Brokerages
  17. 17. Time charters :  The shipment is responsible for providing a seaworthy ship with valid classification and a master and a crew, so that the ship can be sailed to its final destination. Objective :  Is to transfer the commercial direction of the ship to the charter while leaving technical controls with its owners.  Refer document - NYPE 93 asbatime
  18. 18. Skeleton of time charters  Date  Names of parties  Name of the ship with some        description Speed and fuel consumption Duration Places of delivery and re delivery Trading area or limitations Rate of hire Lay days and cancelling dates Commissions
  19. 19. International chartering market at Work Internet  Dry cargo chartering takes place all over the world  Geological location of a shipping market is very crucial to hold a dominant position. Eg : London market  With the advent of new technologies. The communications between the traders, the seller and the buyer has improved significantly. It is real time and can be part of the market from any part of the world at any time of the day. Servers Wireless communications Optical cables (trans atlantic cable)
  20. 20. The practitioners in the shipping communities :  Charters and their agents  Owners and their brokers ( here brokers can have several roles)  The broker can be a member of the charter’s (or owner’s own staff) 
  21. 21. Exclusive brokers :  These can be shipbrokers that negotiate charters only for one shipowner or one charterer.  It can also mean shipbrokers that specialise in a restricted category of vessel, such as oil tankers; or in a restricted category of shipbroking , such as sale and purchase of passenger ships.  The broker can also work exclusively with regard to the place in which he offers his broking services, such as a broker offering services exclusive to Hong Kong
  22. 22. Competitive brokers :  Here the principal places his business on the market through several brokers who are in competition with each other to bring suitable business to the principal.  There is also extensive used of intermediate broker . These broker must walk a very narrow path because he or she does not represent either of the parties and so must take care to be strictly even-handed.
  23. 23. The tanker market  This market is separate form the dry cargo markets but tanker chartering itself subdivides into separate specialists  Crude oil market is the important market. Any any political unrest in the middle east directly effect the crude market. It is also prone to be in headlines due to the catastrophic pollution problem during spills. The depth of the water is important to accommodate the draft of the giant crude oil carriers.
  24. 24. Crude Oil  This is the trade that hits the news whenever there is political unrest in the Midddle East.  Catastrophic pollution problem takes place whenever there is oil spill
  25. 25. The things which conspired to stop the continuing upward trend in tanker sizes are Draft question  Economy of the ships-the sheer size of ships were lacking designers' into areas of pure theory.  Recession caused by the oil producing countries which imposed massive price increase and thus created a slump in the demand for oil .and thus the price of he ‘dead-weight tonne’ has to be increased
  26. 26. Petroleum products   These are those which are extracted from the crude oil which are to be burnt in that form. Ranging from highly volatile to viscous . There is a term as clean and dirty oil  Clean oil require particularly clean vessel, handling that carry them . The fuel can be naptha , kerosene , etc  Dirty oil covers fuel oil, diesel and heavy gas oil as well as crude .Many heavy oil require heating before they can be pumped with the help of the heating coil.
  27. 27. The second tanker market is that for refined petroleum products. The oil consuming world quickly found that the most economical system was to site refineries near the end users.
  28. 28. Chemicals and other products  These are the by products of the oil refining . e,g feedstocks for manufacturing plastics.  Some are volatile and some are toxic that can cause damage.
  29. 29.  Ships in such trades have to be equipped with showers at intervals along the deck so that any splashes may be washed at once  One thing these cargos have in common is the need of the cleanliness of the ship’s tanks  One source of impurity could simply be the surface of the tanks themselves and chemical carriers normally have metals of the tanks coated with a plastic film. Some are soluble and some are not.  Parcel tankers are used to carry many different consignments in different tanks . H2so4, vegetable oil,wine LNG are easily transported in this .
  30. 30. Tanker charter parties  Tanker market has its single voyage and consecutive voyage charters and a contracts of affreightment.  The basic construction of the tanker charter is the same as for the dry cargo and in some respects the clauses are simpler for the wet cargo as oil installations are almost variably set well apart from port complexes. the operation is simpler in case of the oil transport.  One major difference between voyage charters for dry cargo and those for tankers is in the way the rate of freight is expressed.  It is usually expressed in terms of the unit of currencies per tonne of cargo carried  A system was evolved after world war 2 to have an agreed schedule of nominal rates covering every combination of loading and discharging ports for crude oil.  This enabled a charter to fix a ship naming in an area. fix prices for an area.
  31. 31. THANK YOU
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