Friday, October 26, 2012

FCLs & LCLs

FCL - Full Container Load , doesn’t mean that the container is indeed FULL, it may be partially filled also.  It means that the shipper is responsible for stuffing / sealing the container. The shipper is responsible for the proper stuffing as well as the contents inside the container. FCL supposed to reach the consignee as it left the shipper’s premises.  The line is not responsible for the condition of the cargo unless the seal has been tampered with or the container is damaged while it is in their custody.

FCL/FCL – The shipper is responsible for stuffing at the load port and consignee is responsible for de-stuffing at the discharge port.

LCL – Less than Container Load is same the conventional cargo and the liability is same as for break-bulk cargo. The line ( or forwarder / NVOC) is responsible for stuffing and de-stuffing of the container (LCL/LCL) . Generally the cargo gets consolidated and stuffing/de-stuffing happens at CFS  on both ends.

LCL/FCL – The line (forwader/NVOC) consolidate cargo from various shippers and organise stuffing at the load port. The full container would be delivering to a single consignee at the POD.

FCL/LCL – This happens when one shipper wishes to supply more than one consignee at the discharge port. In this case shipper is responsible for stuffing.

Monday, October 1, 2012

How do containers hold together on-deck ?


 
The containers on-deck is secured to each other by means of TWIST LOCKS and lashing rods. The twist lock is designed for very close tolerance and very rough use and is consists of two sets of rectangular projections, one at the top and other at the bottom. 

How it work?
 
Four twist locks are inserted to the four corner castings (small rectangular holes) of a container and the next container will be placed on top in such a manner that the corner castings of the second container fit into the upper rectangular part of the twist lock. After that , the lock is twisted or turned by 90 degrees. In this position the width of the rectangular projection is more than the width of the hole and hence cannot be removed.

Wednesday, September 26, 2012


 
Iacocca – An Autobiography by Lee Iacocca with William Novak is one of my favourites !  I’m sure that this record breaking bestseller by the author of TALKING STRAIGHT, will be enjoyed by all his readers. A must read for all management students and those who are headed for a business career....  

Lee Iacocca , the son of Italian immigrants , is  an American legend.  He  is a straight – shooting , fast talking , blunt, practical  business man - the man who made his mark by giving results ! His name is the symbol of integrity, ‘guts’ and know-how. He is one of the great success stories of the decade. A genuine hero...a leader.

Beginning his career at Ford as a trainee,  he rose spectacularly through the ranks of Ford Motor Company and became its president. Iacocca successfully developed many automobiles at Ford, including the Ford Mustang. After 32 years of his employment with Ford , 8 years as President of Ford , he was fired ! Ford was his first and only employer till that date, he had never worked anywhere else. The power play which toppled him would have shattered him, but he didn’t get mad , he got even.

Iacocca was not without a job long , Ford’s loss was Chrysler’s gain . Iacocca ,as the chairman of Chrysler Corporation, was instrumental for the miraculous rebirth of Chrysler from near  bankruptcy to the most envied of the Big Three automakers of America.

His book , IACOCCA – An Autobiography , is a profile of a strong-minded corporate chief. Many people admire him for his marketing savvy and management expertise. This book is his success story, about his breath taking career. Iacocca reads like he talks – plain and straight. This book gives lots of management tips on industrial policy, labour costs, auto safety etc.

In the "Opening Word"  Mr Iacocca explains why he has written this book , Not to become famous , (he was  already famous than he ever wanted to be), Not to get rich , Not to get back at Henry Ford for firing him ( he did it in the marketplace by fighting it out in the old fashioned way) But to set the record straight, to tell the story of his life at Ford and at Chrysler the way it really happend !
 
Its vintage Iacocca....!

 

Sunday, September 2, 2012

The Ship

Why Ships ??


More than two thirds of the Earth’s surface is covered by water and naturally water transportation is the oldest mode of transportation.  Ever since man designed crafts to float on seas, goods have been carried between ports worldwide. The demand for ships is derived from the demand for the goods they carry.

Ships have been used for trade for thousands of years, but the present shipping business is the result of technology developments and practice established over the last 150 years. The invention of ‘iron’ and steam engine did wonders to shipping trade and caused eventual demise of wooden sailing ships. However, today the ships are powered primarily by diesel engines.

The ship

The ship is obviously the Fundamental tool for all commercially related shipping activities. There are two main parts to a ship – The Hull & the Machinery. Hull is the actual shell of the ship  including the superstructure where as machinery includes not only the engine required to drive it  but also the  generators required for lighting, refrigeration and other auxiliary loads.

Bows , Stern , Amidships, Beam

The front portion of the ship is called the fore end and the extreme forward end is called the bows. The vessel is said to be moving ahead when bows move first.

The rear portion / back end of the ship is termed the after end or stern. When moving stern first, the vessel is said to be astern.

The area between forward and aft portions of the vessel is called amidships. The maximum breadth of the vessel in amidships is called the beam.

The bridge of the vessel is the navigating centre. On modern ships the navigating bridge, machinery and crew accommodations are situated aft.

Bow & side thrusters, stabilizers

Modern vessels have transverse propulsion units in the bows known as bow thrusters. Many vessels have side thrusters fitted at the stern. Their purpose is to provide greater manoeuvrability in confined waters like ports and to reduce or eliminate usage of tugs.

Stabilizers are something similar to the fins of a ship, fitted in pairs deep below the water line. Their purpose is to reduce rolling of the vessel in heavy seas.

Types of Ships


Cargo ships are designed for carrying particular commodity or group of commodities. The type of vessel deployed on a trade route is determined basically by the traffic carried.

The Bulk Carrier
Dry bulkers are the simplest ship in terms of construction and it generally carries homogenous cargoes in bulk like coal , iron ore, grains etc. Depending upon the size of the vessel they can be termed as

  1. The Panamax  (50,000 – 79,999 dwt)- The largest size of ships that can be passed through the Panama Canal .
  2. The Capesize  (80,000-170,000 dwt) – too large for the Suez or Panama Canal .
  3. The Handymax (35,000 – 49,999 dwt) – Popular for smaller shipments of bulk cargo – ideal for smaller ports with limited facility

  1. The Handysize (20,000 – 34,999 dwt) – Ideal for ports of limited drafts and berth length. Suitable for grain Shipments .

 Tankers

These are vessels which carries liquid bulks. Oil tankers are used to transport crude oil from the oil fields to refineries and petroleum and fuel oil from refineries to distribution centres and bunkering ports. Hence tankers have a worldwide network routes.

Depending the size there are a range of oil tankers 

  1. ULCC (Ultra Large Crude Carrier 3-500000 dwt)
  2. VLCC  (Very Large Crude Carrier 1.5 to 299999 dwt)
  3. Suezmax (1.2 to 1.5 lakh dwt, could  transit Suez canal)
  4. Aframax (80,000 to 119999 dwt – used in clean product (aviation, motor spirit) trading
  5. Panamax (50,000 to 80,000 dwt , presumed to transit thru’ Panama Canal)

Container Ships

These are becoming increasingly predominant in many trade routes and they can carry a wide range of cargo in containers.  Container ships are ‘cellular’, which means that the vessel holds are fitted with vertical metal guides called ”cell guides” into which containers can slide and thus they are secured from any movement. Though below deck the containers are secured by cell guides, on hatch covers they must be lashed in order to prevent movement.

Ro-Ro Vessel

These vessels are designed for any type of vehicles. Ro-Ros have been designed with ramps in convenient position (stern,bows,side). Ro-Ro ships designed for carriage of new cars are called  Pure Car Carriers. The vessels designed to carry cars and trucks are called PCTS – Pure Care & Truck Carriers. Ro-Ros commonly have their capacity    measured in LANE METRS .  This measure gives an indication of     total length available for vehicles of     given width.

Combi Carrier

Combi carriers are unitized type of cargo carriers , combining Container and vehicular shipments, including   ro-ro . It has a versatile cargo mixture , can carry odd shaped cargo along with unitised cargo. These ships are suitable for a wide range of ports and hence in operation worldwide. A number of Combi carriers are introduced now

-To improve the ship turn-round time

- to improve the versatility of sea transport

- To minimize the operating cost

 General Cargo Ships

They are also called conventional vessels used for the carriage of diverse form of dry cargo. These vessels are almost disappeared due to Containerization . Most of the conventional vessels are Tween Deckers , ie, Ships with 2 or more decks . (“Tween” derives from “Between” , ie, decks between the uppermost deck and the ship’s bottom). This facility adds to the variety of cargo the vessel can carry.

Gas Carriers

The movement of gas, both Natural and Petroleum, is now a major trade in shipping industry. Both type of gases are carried in liquid form and of course both products need purpose built ships.

LPG carriers normally have cylindrical tanks made of aluminum alloys and are self supporting and free standing.LPG (Butane & Propane) can be kept in liquid form under high pressure at a low temperature. Modern LPG carriers are fitted with refrigeration equipment in order to maintain the temperature of the cargo. This helps to liquefy the vaporization during voyage or at discharge point.  

LNG has to be carried under very low temperature (-104 deg cen to – 163 deg cent) and at atmospheric pressure. The vessel has insulated spherical tanks protruding high above the ship’s deck to carry cargo. They are made of aluminium alloy , surrounded by insulation and protected by a steel outer shell. Tanks are connected to vessel’s hull but not a part of it.

Refrigerated (Reefer) Ships

Refrigerated ships or reefer ships are designed  to carry fresh produce. Development of reefer ships helped to trade meat resource of Australia & New Zealand. Reefer ships are also designed to carry non-refrigerated cargo too as reefer trade generally is seasonal and one way. These types of vessels are in decline due to development of reefer container trade.

Heavy Lift Ships

This is an emerging trade and is  used for the transportation of  indivisible loads . This is a risk market and generally is spot market  in nature with a reasonable return. Long term contract of such ships are found in oil contractors, fabricators and conversion yards.

Tuesday, July 31, 2012

How shipping industry adjust over supply to decline in demand?

During 2002-’04 the demand in container trade grew faster than the supply and hence the shipping companies placed new orders. The deliveries of new orders generally take 2-3 years to materialise and from 2006 onwards the industry has been experiencing faster supply growth compared to demand. This over supply resulted in considerable drop in freight rates , especially during 2008 - 2009.

Shipping industry has been hit particularly hard by the reduction in merchandise trade in 2009 resulted by the world economic crisis. Inspite of the downturn in demand, shipping capacity increased as vessels ordered earlier continued to be delivered during the recession period. As far as container trade is concerned, the fleet size is expected to grow further during the next 4 to 5 years, that too , most of the new vessels to be delivered are of 8,000TEU or more capacity.

How do industry adjust this over supply > demand decline crisis ? It has 5 ways to adjust its supply to a declining demand, though most of them are effective only in long run.


1. Stop ordering new tonnage – Compared to the year 2007 (538) and 2008 (213), 2009 saw only 9 new orders for container ships. For tankers new orders in 2009 stood at 153 (against 1,054 in 2007)  and 290 for dry bulks(against 2,060 in2007).

2. Terminate or postpone existing orders – Almost all shipping companies restructured, to the possible  extent, the order book in 2009. Many deliveries were postponed, cancellations were few.

3. Slow-Steaming – means that the speed of the ship is reduced so that it will be necessary to deploy more number of vessels to meet the same demand or to maintain the same frequency. This measure helps to maintain freight rates without laying off vessels and also saves bunker expenses considerably.

4. Temporarily withdrawing existing tonnage from the service – This indeed is another good measure to keep up the demand in a particular trade and to keep the freight rates from further slipping. During 2009-10, around 500 container vessels ( around 12% of the global container carrying capacity) idled at anchorages across the globe.

5. Demolish older vessels – Ship owners sell their older vessels as scrap metals. As the prices of scrap is very low, many ship owners preferred to hold on to their vessel than scrapping. However 2009 witnessed a surge in ship recycling / demolishing, China leading the market (34.5%) , followed by India (30.7%) and Bangladesh (24.8%).

Though drastic capacity reduction deployed on main trade routes, interestingly the fleet reduction was less drastic on major South-South routes, as trade among developing countries were comparatively less affected by the recession. This shows the positive role the developing countries are playing in the global economy recovery.

Sunday, July 15, 2012

CONTAINERIZATION OF DRYBULK

Presently, the containerization level of general cargo that can be containerised is only 68% in India against the international levels of around 80%. Further increase in containerisation of bulk cargo is expected over the next few years. it is to be noted that the share of liquid and dry bulk cargo has reduced from 94% in 2005-06 to 87 % in 2009-10. There has been an increase of 7% in the share of “Others” (food grains, automotive spares, automobiles, steel, cotton yarn, other containerized cargo ) due to increase in containerized cargo movement. This proportion is likely to increase as new technologies are getting developed for easy and economic filling and discharge of dry bulk cargo from the containers.

Dry Bulk cargo is generally transported in large quantities in ship's hold or in rail wagons. Smaller quantities of grains , sugar, cement, grains/seeds etc (still considered "bulk") gets packed in gunny/plastic bags before transporting to the destination. It is estimated that about 6.2 million bags are used per day for packing these materials. Containers can effectively be deployed for the movement of small to medium quantities of dry bulk cargo. This requires silos at both suppliers and receivers end and also some capital equipments. The overall economics prove that it is cheaper to handle dry bulk in containers than in bags or bulk , especially for domestic logistics .


Few techniques used by M/s Scorpio Engineering Pvt Ltd, Bangalore is shown below. For more details you may please contact them .
 





Friday, June 29, 2012

Conference on "Coastal Shipping, Inland Waterways & Surveillance” on 23rd Jun 12 at Hotel Le-Meridien,Chennai — Confederation of Indian Industry










                                                                                                                                                               




The presentation is uploaded here http://ametuniv.academia.edu/AshaPillai/Talks and is based on below posted text.