Commercial Shipping M03

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Commercial Shipping (M03)

• Leaning outcomes
• Understand the characteristics of each major
  commodity
• Explain the requirements on cargo handling
• Relate the type of ship to a particular cargo
• Explain the pattern of seaborne trade

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Commercial Shipping (M03)

• Cargoes
• Iron ores
• Grains
• Coal
• Steel
• Liquid petroleum goods
• Gas
• Containers
• The pattern of maritime trade

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Commercial Shipping (M03)

• Iron ores
• a rock containing iron-rich compounds and forms
  the basic raw materials in the manufacturing of
  steel and iron products, shipped in the form of
  fines or in lumps or as pellets. (Fines
  particles smaller than 6mm lumps between 6-30mm
  pellets like small marble, formed by crushing
  the fines into a powder, then into pellets by
  using clay as a binding agent. )
• Exporters Australia, Brazil, South Africa and
  India. Australia and Brazil together accounted
  for more than 70 of world exports in 2006
  (37.7 and 34.2 respectively).
• Major importers China (326.3 million tons),
  Japan (135.3 million tons) and Western Europe
  with (117.6 million tons) -- 2006

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Commercial Shipping (M03)

• Cargo handling
• Iron ore is very heavy and dense, occupying only
  a small space for every tonne. It is important
  that the carrying vessels cargo compartments can
  safely sustain such heavy cargoes.
• Most modern bulk carriers engaged in these trades
  will have ore-strengthened structure and in fact
  there are ore-carriers built specifically for the
  carriage of this commodity with small and strong
  holds.
• Trimming is required
• Weight loss (freight charge on the delivered
  weight a deduction of mutually agreed percentage
  from the weight indicated on B/L)

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Commercial Shipping (M03)

• Grains
• Comprise wheat, corn, rye, barley, oats, rice,
  soybeans, sorghums, oilseeds, and by-products of
  all these.
• Exported from
• USA (wheat, soybeans, oats, corn, sorghums)
• Canada (wheat, barley)
• Australia (oats, wheat, barley, sorghums)
• North Europe (oats, wheat, barley)
• South America (soybeans, sorghums)
• Thailand, Myanmar, Pakistan and India (rice)

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Commercial Shipping (M03)

• Grains
• Importers
• Bangladesh
• Japan
• Korea (Republic)
• China
• Middle east countries
• North and East Africa
• EU
• Grain trade
• Political
• Economical
• Climatic

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Commercial Shipping (M03)

• Requirements on cargo handling
• Whether transported in bulk or in bags, grains
  are liable to heat and/or sweat, especially if
  damp, when they may germinate or rot.
• Pre-loading inspection
• no residues remaining from the previous voyage
• no insect or rodent infestation
• no strong odours
• free of rust scale.
• If the requirements are not met, a thorough
  clean-up or even fumigation, in case any insects
  were found, has to be carried out before the
  commencement of cargo loading.

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Commercial Shipping (M03)

• Requirements on cargo handling
• Trimming
• Grains in bulk have angles of repose of less
  than the critical 35 degrees and consequently are
  prone to surface movement at sea.
• Costs of trimming overtime, stand-by labour
  time, anti-pollution requirements.
• Free Load Trim cargo is loaded and trimmed at
  the expense of the shipper or charterer.

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Commercial Shipping (M03)

• Requirements on cargo handling
• Fumigation
• Grain is readily subject to infestation from
  various insects, regular fumigation therefore
  shall be carried out for stored grain whether in
  silos, elevators or in a ships cargo hold
• Onboard fumigation a popular choice for grain
  shippers
• At the end of the loading process when all
  hatches are closed
• Fumigant tablets are placed just beneath the top
  of the stow
• Professional fumigation contracts should be
  employed to ensure effectiveness
• During the whole fumigation process, the crew
  shall move ashore to avoid the risk of inhaling
  active fumigant
• A certificate will be issued to the master after
  fumigation. Normally, the holds are to keep
  sealed for several days and then thoroughly
  ventilated to reduce any danger to the crew
  onboard.

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Commercial Shipping (M03)

• Requirements on cargo handling
• Fumigation
• It is important that grain sale/purchase
  contracts and charter parties carefully set out
  the agreement for fumigation. A check list should
  cover the following
• where fumigation is to take place, that is, at
  load port, in transit, or at discharge port
• type of fumigant (the type of fumigant will
  affect where the fumigation is to take place.)
• whether crew to be removed ashore and, if so, who
  is responsible for the cost
• certification and safety procedures
• is laytime to count?
• responsibility for cost of the operation.

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Commercial Shipping (M03)

• Requirements on cargo handling
• The International Grain Code (International Code
  for the Safe Carriage of Grain in Bulk)-IMO
• The position and construction of temporary or
  semi-permanent shifting boards
• The trimming and levelling of bulk grain
• Bagging and securing non self-trimming ships,
  eg most tween-deckers and short-sea single deck
  vessels with box-type holds, may well require the
  securing of grain cargo against surface shift
  when at sea, particularly with seeds in bulk, and
  with all grains in winter months when sea
  conditions are usually boisterous.
• Ventilation

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Commercial Shipping (M03)

• Coal
• Mineralised fossil fuel, mined extensively
  throughout the world and widely utilised as a
  source of energy. It provides more than a quarter
  of the worlds energy needs.
• Main exporters Indonesia, Australia, South
  Africa, Colombia, China and Venezuela
• Principal importers Japan, Europe, China

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Commercial Shipping (M03)

• Major safety consideration when handling coal
  (IMDG the International Maritime Dangerous
  Goods)
• Gas explosion
• coal, especially newly-mined coal, emits an
  inflammable gas (Methane) which, when mixed with
  air, is liable to explode if in contact with
  sparks. Such an explosion is augmented by a
  following coal-dust explosion in certain
  conditions. Consequently, coal that tends to
  expel methane gas should be loaded into holds
  which have been well-aired and, during the first
  few days following loading, the cargo surface
  should be ventilated so as to remove any gas.

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Commercial Shipping (M03)

• Dust explosion
• Modern coal is no less dusty and coal dust tends
  to ignite if contacted with sparks or heat
  sources. The remedy for possible dust explosion
  is to keep coal dampened down. However, excessive
  wetting causes another problem, that is, cargo
  shifting at sea.
• Cargo shifting at sea
• Wet coals, especially those small coals (coal
  breeze, slack, slurry or duff), tend to shift at
  sea thereby endangering the safety of the ship.
• The situation gets worse with poor cargo
  trimming.
• Appropriate water content tests have to be
  conducted before cargo is loaded.
• IMO lays down suggested procedures that cargo
  which has potential tendency to excess surface
  movement should be rejected for shipment.

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Commercial Shipping (M03)

• Spontaneous combustion/self heating
• The length of time coal is laden in the ship the
  ventilation methods weather conditions and
  ambient temperatures and methods of cargo
  handling.
• Ventilation may be necessary to reduce the risk
  of gas explosion nevertheless it may encourage
  spontaneous combustion by directing air on to the
  hot surface of the coal. Therefore, ventilation
  must be very carefully supervised and directed at
  the surface area only.
• A temperature reading of between 50 and 55C
  signifies a potential fire hazard is developing
  (Code of Safe Practice for Solid Bulk Cargoes
  IMO).

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Commercial Shipping (M03)

• Corrosion of ships holds
• Coals with high sulphur content, when loaded wet,
  are liable to create chemical reaction which can
  corrode steel hold sides and bulkheads. This
  situation may be worsened if the coal temperature
  rises as high temperature stimulates chemical
  reaction.

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Commercial Shipping (M03)

• Steel
• World crude steel production reached 1,240
  million tons in 2006. The biggest producer was
  China with a total production of 418.8 million
  tons in 2006. China has the largest steel
  consumption about 327 millions tons in 2006.
  increasing demand for steel is also from the EU,
  Latin America, NAFTA countries.
• Seaborne steel products can be divided into five
  main types
• 1) Sheets/coils, 2)Beams girders, 3) Plates,
  4) Wire rods, and 5) Pipes

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Commercial Shipping (M03)

• Sheets/coils Beams girders
• Plates Wire rods Pipes

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Commercial Shipping (M03)

• Cargo handling requirements
• Rust damage One of the main potential sources of
  damage to steel is residues from previous
  cargoes. Sulphur (sulphur components might be
  found in coal, iron ore, phosphate or compound
  fertiliser), for example, is potentially damaging
  to steel.
• The cargo compartments should be clean, free of
  smell and completely dry before commencement of
  loading operations
• Vessels that have carried commodities that
  contain corrosive components need to be washed
  before loading, and last wash should be fresh
  water
• Apart from potential rust damage caused by
  unclean holds, ingress of water through hatch
  covers is another main source of rust damage. It
  is essential that all hatch covers of the
  carrying vessel are well maintained and
  watertight.

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Commercial Shipping (M03)

• Cargo handling requirements
• Storage
• Dunnage weight is spread evenly to prevent
  excessive weight to vessels structure and to
  secure the cargo
• Cargo must be secured to stop any possible
  movement during the voyage.
• Proper dunnage makes the steel product easy to
  discharge, which will lessen the likelihood of
  damage and speed the final cargo handling
  process.

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Commercial Shipping (M03)

• Liquid petroleum goods
• Liquid petroleum goods include a host of
  products ranging from crude oil to refined oil.
  Most petroleum products are inflammable with a
  low flash point and many are dangerous in other
  ways, either emitting toxic gases or possessing
  corrosive qualities, or both. As such, some
  require carriage in specially coated or stainless
  steel containers or tanks, others need cargo
  heating.
• Temperature control these products have
  different pour point, the temperature at which a
  mineral oil begins to flow after heating, (range
  from no heating, to certain crude oils needing
  heating to be maintained throughout the voyage at
  temperatures around 65C).

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Commercial Shipping (M03)

• Tank wash
• Some liquid petroleum products tend to adhere to
  tank sides and the amount of such clingage might
  be considerable, particularly for crude oils.
• For other liquid cargoes, especially those high
  value liquid products, utmost cleanliness is
  required in their carriage so as to avoid any
  potential contamination.
• Pumps and cargo lines must also be clean and free
  of odour. For parcel tankers carrying a variety
  of products at one time, it is particularly
  important that proper cleaning is carried out to
  pipes and pumps. In addition, proper sequence of
  cargo loading is as important as cleanliness of
  pipes and pumps.
• A crude oil washing system helps to reduce this
  clingage by washing the tank whilst alongside and
  when discharging is still progressing.

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Commercial Shipping (M03)

• Marine pollution
• among all oil spills caused at sea, only 25 is
  through accidents such as collisions and
  groundings or mistakes in the handling of
  equipment that lead to a discharge into the
  water, while the other 75 is created by a
  deliberate and repeated operational procedure (2
  million tons every year!).
• Oil spills from washing tanks
• Oil spills from de-ballasting
• About 0.35 of an oil cargo remains after a
  shipment, meaning that the oil content of a
  ballast water discharge for a 200,000 tons ship
  could be about 700 tons.

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Commercial Shipping (M03)

• Gas
• The seaborne gas trade comprises of liquefied
  natural gas (LNG) and liquefied petroleum gas
  (LPG). LNG now accounts for more than 25 of the
  worlds gas exports and forms the third largest
  source of primary energy behind coal and crude
  oil. In 2004, world LNG shipment reached 178
  billion cubic metres (UNCTAD, 2006).
• Main suppliers LPG (Russia, US) LNG (Indonesia,
  Malaysia, Qatar, , Australia)
• Main importer LNG (Japan, Korea, and China) USA
  also is one of the largest importer of LNG.

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Commercial Shipping (M03)

• Cargo handling
• LNG At ambient temperature and pressure, natural
  gas is extremely bulky. However, when it is
  cooled to minus 161C, it becomes liquid and more
  compact, occupying only 1/600th of its gaseous
  volume.
• LNG is transported at very low temperatures (near
  cargo boiling point of minus 161C) at
  atmospheric pressure. The vessels hull is double
  skinned and its cargo tanks constructed of
  aluminium or stainless steel. A feature of the
  LNG trade is that not all the cargo is discharged
  at its destination. A small quantity is retained
  aboard and used to keep the tanks cool until the
  next cargo is loaded.

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Commercial Shipping (M03)

• Cargo handling
• LPG comprises mixtures of petroleum hydrocarbons
  consisting mainly of propane and butane as well
  as various chemical gases derived from the
  petroleum industry. LPG can be transported at sea
  in a variety of ways
• Under pressure at ambient temperature
• Fully refrigerated (at their boiling points) at
  temperatures between minus 30C to minus 48C
• Semi-refrigerated under a combination of pressure
  and reduced temperature.

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Commercial Shipping (M03)

• Containers
• The International Standards Organisation (ISO)
  laid down that container sizes should be 2.59
  metres high and 2.44 metres wide (86 x 8), the
  length being in modules of 3.05 metres (10 feet)
  from 3.05 metres (10 feet) up to 12.20 metres (40
  feet).
• Advantage of containerisation
• Because containers are mainly mechanically
  handled, the speed of loading and unloading is
  increased which brings greater efficiency
  quicker turn-round and a reduction the time a
  ship spends in port.
• Because of the speed of loading, unloading and
  transhipment, transit times are speeded up and
  the increased speed and regularity of
  containerised services reduces the cost of
  warehousing stocks of goods at the destination.

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Commercial Shipping (M03)

• Advantages of containerisation
• Automated containerisation greatly reduces the
  demand for labour at ports and other transhipment
  points while containers can be re-used and also
  give a much greater degree of protection against
  breakages and pilfering.
• Containers can be packaged at inland collecting
  centres, rendering traditional transhipment of
  cargo at the dock side unnecessary.
• Finally, containers fit on motor vehicles, rail
  cars and ships holds, and even aircraft and so
  can be moved easily from one kind of transporting
  agent to another without having to break bulk.

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Commercial Shipping (M03)

• The problems
• A constant problem associated with container
  shipping is the repositioning of empty containers
  as a result of imbalanced international trade. In
  2005, the Asia-Europe route was estimated to have
  carried 15.7 million TEUs, among which 10 million
  were heading westward (originating in Asia), and
  5.7 million were heading eastward. There is a
  flow imbalance of 4.3 million TEUs has to be
  repositioned.
• These repositioning activities add extra cost and
  drain on profits which have to be factored into
  costs along with a rolling programme of container
  replacement and repair.
• At times of high consumer demand for goods,
  Christmas for example, the greater demand for
  containers will have a knock-on effect on
  container rates.
• Challenges to terminals

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Commercial Shipping (M03)

• The pattern of maritime trade
• The Westline theory
• Whats now?