Ship MGT Strategy Commercial MA
Ship MGT Strategy Commercial MA
Ship MGT Strategy Commercial MA
STRATEGY.
COMMERCIAL.
Name: Michael Mawufemor Dzikunu FICS
Tel: 00233-543001771
WhatsApp: 0509621521
e-mail: [email protected]
[email protected]
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2. DYNAMICS OF SHIPPING MARKETS
2.1Shipping and Freight Markets
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3. LINER SHIPPING
3.1 COMMON CARRIER
3.2CHARACTERISTICS OF LINER
SHIPPING
3.3 COLLUSION IN LINER SHIPPING 3.4
CONTAINERIZATION AND MODERN
TRENDS
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4 CHARTERING
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5. ELEMENTS OF RUNNING COSTS
5.1 GENERAL INTRODUCTION TO
MARITIME TRANSPORT COST
5.2 COMPONENTS OF SHIPS RUNNING
COST .
6.2COST CONTROL METHODS
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6 SHIPPING AGENCY
6.1 TYPES OF INTERMEDIARIES IN
SHIPPING
6.2FUNCTIONS AND ROLE OF SHIPPING
AGENTS
7. SHIP ACQUISITION
7.1 FORMS OF ACQUISITION 6.2SALE
AND PURCHASE OF SECOND HAND
TONNAGE
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TEXTBOOKS
Branch, A. E. (2012). Economics of shipping practice and management. Springer
Science & Business Media
Alderton, P. M. (1995). Sea Transportation–Operation and Economics. Surrey,
UK: Thomas Reed Publications.
PLOMARITOU, E.& PAPADOPOULOS, A. Shipbroking And Chartering
Practice. 8th edition.
Dykstra, D.L. Commercial Management In Shipping Published byThe Nautical
Institute.
Tsoudis, G.N. The Shipbroker’s Working Knowledge. Published in England by
AKAKIA Publications, 2015
DICKIE, J.W. 21st Century Ship Management. Surrey, UK: Thomas Reed
Publications.
Stopford, M. Maritime Economics Third edition published in the Taylor &
Francis e-Library, 2008.
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TEXTBOOKS
Lars Gorton, et al, (2009).Shipbroking and Chartering Practice, 7th Edition.
Informa London.
John, F.W, 2010: Carriage of goods by Sea, 7th Edition.
Scrutton, T.E. (1996): Scrutton on charter parties 20th Edition.
Thomas D.R, (2008): Legal Issues Relating to time charter parties, 3rd Edition,
LLP.
John, S. 2000: Laytime and demurrage,4TH Edition, LLP.
REFERENCES:
ICS notes
Lloyd’s publications
Fair Play Publications
InternetWEBSITES:
www.drewry.co.uk
www.hellenic shippingnews.com
Dewry.com
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INTRODUCTION TO SHIP MANAGEMENT.
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The three main management models
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INTRODUCTION TO SHIP MANAGEMENT.
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4.CHARTERING
What is chartering?
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4.CHARTERING
What is chartering?
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4.CHARTERING
Chartering Markets
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Market Practitioners:
OWNERS.
There are several functions in a shipowning company
which we can, briefly, describe as follows:
Ownership = finance
Management = manning - technical - spares -
bunkers - claims etc.
Operational = daily routines concerning the vessel
Commercial = employment of the ship
Trade in ships
Trade in cargoes
Trade in both.
NVOCC
Disponent owners
Voyage chartering
Consecutive Voyages
Time chartering
Bareboat chartering
Contracts of Affreightment
Joint Ventures
Shipping pools
Parcelling
Project cargoes
Slot charters.
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Classification of ship running costs
Capital cost.
Operating cost
Voyage cost.
Cargo-handling cost.
Periodic maintenance cost.
Classification of ship running costs
Capital cost.
This is the cost as a result of the ship acquisition
and dependent on the way the ship has been
financed. They may take the form of dividends to
equity, which are discretionary, or interest and
capital payments on debt finance, which are non-
discretionary. The cost repayment amount is
influenced by the amount of loan, the loan
repayment period, Moratorium, bullet and
Currency. This cost element covers about 42% of
the total ship running cost.
Classification of ship running costs
Operating cost
Operating cost constitute the expenses involved
in the day-to-day running of the ship incurred
irrespective of the trade the ship is engaged in
and whether the vessel has business (cargo) or
not. This includes such costs as manning, stores
and lubricants, repairs and maintenance,
insurance and administrative/general costs. This
cost element accounts for about 14% of the total
ship running cost.
Classification of ship running costs
Operating cost
OCtm = Mtm + STtm +MNtm +Itm +ADtm
Crewing Employment
Maintenance and spares Bunkering
Repairs Port Expenses
Classification Canal tolls
Surveys Stevedoring
Lubricating Oils Cargo Handling
Fresh water Cargo insurance
Hull & machinery insurance Bunker insurance
Stores and provision
Heating/cooling and cooking
Market Research:
The exchange of information is the basic need of the chartering
departments in order to get to know the prevailing supply and
demand of sea transport services. Those engaged in chartering
are important consumers and distributors of information. The
continuous flow of information and the treatment and
evaluation of the material is necessary for judgment of the
situation and the trends of the freight markets.
A chartering department will have to make a market research
taking into consideration pieces of information gathered from
all possible sources e.gs to be mentioned below. As a result the
chartering person, either the decision maker (shipowner /
charterer) or the
'proposer' (broker) will be in a position to make the best
decision or the best proposition.
EXAMPLE:
Analysis of Charter Market Reports and other Sources of
Information
EXAMPLE:
By comparing the conclusions made in the various
reports it is possible to form a fairly accurate picture of
the state of the market in the sectors of particular
interest.
'SUBJECT TO DETAILS' OR
'SUB DETS' OR 'SUB DETS / CHRTS
PROFORMA'
Details included in Firm Offers (Time Charter)
The details of the vessel that are included in the particulars
given in the main terms negotiations are:
Vessel's name.
Year of built
Flag
Deadweight (DWT)
Cargo space cubic (Grain / Bale capacity)
Number of hatches and holds
Cargo gear
Speed (time charter and sometime in voyage charter)
Bunker consumption in FO and DO
Other details of importance for the intended cargo and
trade.
Details included in Firm Offers
The ship’s description is followed by the words, ALL
DETAILS ABOUT or ALL DETAILS GIVEN WITHOUT
GUARANTEE BUT GIVEN IN GOOD FAITH AND
BELIEVED TO BE CORRECT.
COUNTER OFFERS
The reply to a firm offer (the counter offer), usually,
commences as follows:
Charterers Accept Owners' offer , except...... …for reply
within ...........
or
Charterers A/E for reply within ............. ... followed by
the terms that charterers wish to change.
LAYTIME
Laytime is the period allowed for cargo work
(laoding/discharging) under a voyage charter party where the
charterer negotiates to be responsible for cargo handling.
1. Normal or Non-reversible
2. Reversible and
3. average
LAYTIME
EXAMPLE:
A charterer booked for 20,000 tons of cargo min/max and loading
rate is 5000 tons per day. Freight is 200 USD per ton. The contract
is on DHD basis.
At the time of loading actual cargo supplied is 15000 tons.
Compute earnings and expenditure for both parties where
applicable based on American and English law respectively.
LAYTIME
COMMENCEMENT OF LAYTIME:
Arrival conditions.
Readiness.
Contractual Commitments ( entered at local customs and in free
pratique).
Congestion.
Turn Time.
CESSATION:
Simultaneously with cargo operations.
VOYAGE ESTIMATING
A realistic assessment of the profitability of ship’s
voyage(s) and time charter trips. (Cost and Revenue)
METHOD:
This is divided into Five steps:
Itinerary
Cargo Quantity
Expenses
Income
Results
Itinerary
1. Voyage Plan
2. Duration
3. Bunker Consumption
What is Agency?
Who is an agent?
SHIPPING AGENCY
SHIPPING AGENCY
MAIN CATEGORIES OF SHIP AGENT:
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Liner Agent’s Duties.
.
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