Ship Voyage Estimation is forecasting of costs and revenues. Unavoidably, Ship Voyage Estimation includes comparing one voyage with an alternative voyage to see which produces the most immeasurable yield. Ship Management or Shipbrokers are closely involved in Ship Voyage Estimation calculations. Ship Manager must be adequately aware of the process of voyage estimating. It is important to understand how numerous pieces of data, supplied by the ship manager, apply to the process of estimating the profitability of a proposed voyage.
In the calculation of demurrage amount payable to shipowner, demurrage rate is multiplied by the number of days or part of day in excess of the agreed laytime.
In shipping business, output can be measured either by:
Laytime is the time permitted in a contract for loading and/or discharging a Voyage Chartered Ship.
Stowage Factor (SF) is the density of the cargo in the ship’s hold. In the shipping business, Stowage Factor (SF) is a very important piece of information.
The word TON in shipping can denote both weight and capacity. Loaded displacement tonnage is the actual weight of the ship and cargo. Light Displacement Tonnage (LDT) is the actual weight of the ship. The difference between the loaded displacement and the light displacement is the weight that the ship can actually carry and is known as the Deadweight Tonnage (DWT).
In dry bulk ship chartering, deadfreight refers to the monetary compensation owed by the charterer to the shipowner when the actual cargo loaded is less than the agreed upon minimum quantity, as stipulated in the charter party agreement. Deadfreight is generally calculated based on the difference in weight between the minimum agreed quantity and the actual loaded cargo, multiplied by the agreed freight rate.
Shipbrokers should be familiar with the basic layout of voyage charterparty and time charterparty forms. Shipbrokers should be capable of selecting a suitable charterparty for the business. Usually, specific charterparty forms are used in certain businesses, and a shipbroker should recommend and use these if possible.
The global dry cargo market is served by numerous ships of all sizes, ranging from small coasters up to giant Very Large Ore Carriers (VLOC) capable of hauling a quarter of a million tonnes of iron ore. Currently, dry cargo ships are highly sophisticated, fuel-efficient, and cargo-friendly ships.
Process of Chartering Ships takes place in the charter market by the parties that enter the market seeking to fulfill a need in transportation capacity (charterers) and those who have available ships (shipowners).
The payment that is due to the shipowner by the charterer in a voyage charter is called Freight payment and is expressed in dollars per ton of cargo shipped.
In the shipping business, one of the most crucial points is the amount of cargo that can be lifted. The quantity of cargo that will be written in the bill of lading (B/L) is the quantity that will be transported. However, to arrive at the amount, the ship operator must consider the properties of the cargo against the summer deadweight (DWT) of the ship. Summer Deadweight (DWT) of the ship indicates the maximum quantity of cargo that can be lifted. At this quantity, the ship will be down to its summer marks.
Shipbrokers and agents should be aware that no single issue occupies the minds of maritime lawyers more than the counting of loading and discharging time
FlO (Free In and Out): in practice it may be argued, that a cargo is loaded when it is placed in the hold of the vessel without the requirement of placing (stowing) in the correct position to keep it safe from damage, either from other cargoes adjacent or subsequently loaded in the hold. Thus frequently the following description is included: free in and out, cargo to be loaded and discharged free of expense to the carrier.
Contract of Affreightment (COA) are used when a shipowner or ship operator agrees to transport a given quantity over a fixed period of time. Unlike other charterparties, no specific ship is named in the charterparty. It is up to the shipowner or ship operator to provide ships as needed for the project.
What are the essential elements of a Contract?
The world’s principal ten classification societies make up the membership of International Association of Classification Societies (IACS), along with two associate members. Ninety percent of the world’s cargo carrying tonnage is covered by the classification; design, construction and through-life compliance rules and standards set by these members.
GENCON Charterparty Clause 12 covers General Average (GA)
Another expression with a long history and now covered by an international convention (The York-Antwerp Rules). In essence, General Average is the procedure whereby if the ship is involved in extraordinary expense in order to avoid damage to the ship and her cargo then the cargo as well as the shipowner contributes to that expenditure; the formal wording reads ‘…. preserving from peril the property involved in the common maritime
venture’.
The shipowner may be interested in knowing whether they have the authority to place a lien on the cargo until they receive payment for the freight or hire owed by the charterer. This right of lien must be established in the charterparty. To determine if they have a possessory lien over the cargo for unpaid freight and hire, the shipowner must examine the lien clause in the charterparty. The clarity of the clause is crucial, as it determines the extent of the lien and the shipowner’s ability to exercise their possessory lien for the unpaid freight or hire.
Hatchway is the hole through which the cargo is loaded into the ship. Traditionally this hole has been a source of weakness in the structure, but modern technology has provided large steel hatch covers that can slide back into place at the flick of a lever. Ships with these are allowed to load deeper than the older types covered only by wooden boards and canvas. There are many different types and designs of steel hatch covers.
There are two (2) types of bulk cargoes Dry Bulk Cargoes and Wet (Liquid) Bulk Cargoes.
There are four (4) ISM Code (International Safety Management Code) Certificates