Shipping is an international business and people dealing with chartering have to work with conditions prevailing day by day in the international freight market
Forms of transport available for transporting goods
There are 70000merchant ships in the world/ Some of these are general cargo ships. Others are specialized and are used for carrying one kind of cargo such as oil or bananas while others may be used for passengers or holiday cruises. Byt because people travel mostly by air nowadays the old passenger liners have gone out of service. However it is still possible to travel by sea on a cargo boat (freighter) which has passenger accommodation.
Kinds of ships
The Bulk and Tweendeckers
Special ships used for transporting variations of the important bulk cargoes like coal, grain, ores, concentrates, scrap, steel, cement, phosphates, fertilizers, lumber, woodchips , cars. Modern bulk carriers whith technically sophisticated equipment can also be used for the transportation of unitized cargoes of various kinds, like paper and pulp and also for containers.
Tweendeckers are used on one hand for shipments of all kind of bagged commodities, e.g. rice, sugar, cement and fertilizers, and on the other hand as supplementary or «extra» vessels for the regular lines.
This market is limited. This traffic requires large investments in specially equipped vessels, port installations and terminal equipment, technically advanced inland transportation system in both sides.
The roll onroll off ships
Used for carrying all types of commodities, placed on wheeled platforms or flats which may be handled be the use of folk-lift trucks. Does not requires any special port equipment for unloading cargo.
Liner traffic is a firmly controlled activity where remuneration is fixed well in advance.
The feeder ships
Small sized vessels employed in a more or less strictly scheduled feeder traffic.
Heavy-lift carriers built with the special demands on stability and constructional strength.
Barges and Pontoons used for the transport of heavy material, e/g/ built-up drilling rigs, discharging platforms between an ocean-going ship and the guay.
Very Large Crude Carriers and Ultra Large Crude Carriers are used for transporting crude oil, while product tankers less sized to carry refined products, e.g. gas oil, fuel oil, paraffin wax, lubricating oils, etc.
There are also special carriers for liquid chemicals of various kind.
The refrigerated ships
An important spot market for perishable goods – seasonal.
The passenger ship
Nowadays is almost vanished and used for carrying rolling cargoes and for a short distance trade.
The Freight market
The freight market is not a uniform market. It does not have a homogenous connection whith specific geographical area but rather with ships that can carry similar types of cargoes.
There are some deferent ways of making agreements between owner of the ship and charterer. Usually they negotiate through the intermediary of representatives called shipbrokers. They even can never meet each other. Usually sides apply to the world markets for shipping such as the Baltic Exchange in London.
Chartering in full: according to capacity of the ship, and then charterer controls hole vessel.
Space charter: there are several charterers of one vessel.
The voyage charter may cover a single voyage or several consecutive voyages.
The time charter under which the owner puts the vessel at the disposal of the charterer for a certain period of time and can not control the commercial operation of the ship, but however the owner is still responsible for maintenance, nautical operation and the supervision of the cargo.
The Bareboat Charter: this contract amounts to a lease of the ship from the owner to the charterer.
Contract of Affreightment : the owner promises to carry for the charterer during a specified period of time a large quantity of goods between certain ports. And it is up to owner to decide what vessel is the most suitable for charterers cargo.
Management agreements: If the owner has no idea how to to make his ship profitable he can entrust the vessel to manager who will guide all commercial activity of the vessel for a period of time.