1.1 What are Container vessels? The first question that comes to mind is that what are container ships? Container ships are basically cargo ships which make use of the process of containerization to carry their cargo in truck size intermodal containers. The world container fleet almost reached a capacity of 17 million TEU (or twenty-foot equivalent unit) at the end of the financial year 2013. In India, in the year 2014 the number of containers handled in the major ports increased by 8.32 percent, and container handling from April to November 2014 can be summed up around 5.31 million TEU. 1.2 Globalization and its impact on Containerization There are various methods of measuring globalization and one of them is increase in trade flow. Trade in through the sea route has increased by a great amount through the introduction of container vessels. Globalization encouraged the growth of sea route facilitated trade through the transactions which focused on trade of goods in smaller packets which were delivered just-in-time. In the 1970’s this led to the reliance on faster, smaller …show more content…
The TAMP can regulate rates related to vessels, cargoes, lease of properties owned by private operators in Major Ports, etc. The TAMP despite its tariff related powers, does not have much power when it comes down to select private parties for allotting contracts or other services, and therefore, even though the TAMP is a central government body, its powers are pretty restricted. The bigger problem than this is the regulatory approach followed by the TAMP, which is basically a ‘cost-plus approach’ that according to critics does not recognize and award any improvements made to make the shipping vessels more
The North American transport system is run by several different agencies, each one having its own important part in making it all run smoothly and efficiently . There are also several policies that have been put in place to keep the transportation system working for the good of everyone. The agencies involved keep very good records of all the types of transportation that make up the system, which makes it easy for anyone to be able to see all the different statistics associated with the system. The Freight broker business is another important part of the transportation system, the following paragraphs will tell how all these things work together.
Globalization is the phenomena of increased economic integration among nations characterized by the movement of people, ideas, culture, and resources across borders. This phenomena dates back to the trade routes developed by the Silk Road, as well as those that were discovered by European explorers such as Columbus, Magellan, and Marco Polo. Globalization has been crucial for the development of both individual countries as well as the world as a whole. The conquests and subsequent settlement of new lands with new biological resources, the potential to accommodate transfers of population, crops, and livestock, international trade, as well as technological innovations are all key elements of globalization.
The national transportation system was composed of relatively discrete units of rail, road and water transportation sub-systems, which interfaced by necessity rather than by design. Today, due to increasing cargo volumes and competition from other national port systems, the cornerstone of our national port and waterways system must be the recognition that intermodalism maximizes the efficiency of our system and provides the well marked pathways to future planning and development efforts. Intermodalism requires a seamless transportation system, which provides smooth transition of cargo from one transportation mode to the other. It also requires the recognition that the waterborne and land based infrastructure must develop with the needs of the users in mind. These developments must include developing technology in the areas of ship design and onboard equipment, vessels traffic systems, aids, and port access programs that efficiently link marine transportation systems to their rail and road links.
...nd and 10 to 14.5 thousand TEUs, and are only able to navigate the Panama Canal after the set of expansions it received. Finally, the Ultra Large Container Vessel class holds upwards of 14,500 TEUs. The largest in the world right now is owned by Danish shipping company Maersk, and can hold 18,270 twenty-foot equivalent containers. (Maersk)
An amazing assortment of goods are moved over the worlds ocean trade routes. Of necessity, the carriers charge for the service they render. These charges vary almost as widely as do the cargoes, for they mirror both the shipowner’s costs and the special conditions prevailing on the trade routes traversed by the ships. Ocean freight rates may be described as the prices charged for the services of water carriers. Each ship operator develops it’s own rates, usually without consultation with the shippers. The charges reflect the cost of providing the carriage, the value of this service to the owner of the goods, the ability of the merchandise to support the expense of transportation, and economic conditions in general. Freight rates truly reflect the working of the laws of supply and demand. In tramp shipping, particularly, it is possible to observe how these factors influence the rise or fall of freight rates from day to day and from cargo to cargo. Tramp ships transport, in shipload (or “full cargo”) lots, commodities which, like coal, grain, ore, and phosphate rock, can be moved in bulk. The fact that usually only one shipper and one commodity are involved simplifies the establishment of a freight rate for this particular movement. To the capital charges of ownership and the expense of administration and overhead must be added the cost of running the ship, handling the cargo, and paying port fees and harbor dues. Against this total is set the number of tons to be hauled, and the resultant figure is what the tramp must charge, per ton of cargo loaded, to break even on the contemplated voyage. If competitive conditions permit, a margin for profit will form part of the quoted rate. If however the prevailing economic climate is unfavorable, the owner has the privilege of retiring the ship to a quit backwater, there to wait until the financial skies are brighter. The tramp operator does not depend upon the longterm goodwill of the shippers, but is free to accept those offers which appear profitable at the moment. When adversity threatens, those charters are accepted which minimize anticipated losses. If there is a choice, the cost of temporary lay-up is contrasted with the loss which continued operation might produce, and the less expensive alternative is selected in a bow to the inevitable made with whatever grace that can be mustered.
Nowadays, Globalization is a main trend for the world economic. The world’s economy has become fully integrated. There are no barriers and borders to trade around the world.
More than forty thousand merchant ships, and countless number of smaller coastal craft, ply world oceans which comprise nearly seventy percent of the earth’s surface. Each year approximately ten million containers of cargo, containing raw materials to finished goods are transported by seas. The ships are owned by different states, private companies or individuals and manned by mixture of seafarers from different countries, mixed together from various nationalities. These ships are perhaps the most autonomous entities on earth as rule of law allows frequent change of their allegiance or identity by choosing a flag to suit their requirement.
A general ship or a common carrier is a vessel that the owner or operator willing carries goods for more than one person. There are three different types of common carriers. First is a conference line which is an association of seagoing carriers who have joined together to offer common freight rates. Those that chose to ship all or a large share of their cargo through this process receives a discounted rate. Second is an independent line, which is when the vessel has their own rate schedules. Generally, independent lines have a lower rate than that of the conference discounted price. Finally the third aspect of common carrier is tramp vessels which are similar to independent lines by the fact that they have their own rate schedule, but they differ from both in that they don’t operate on established schedules.
A strategic importance to achieve sustainable maritime transport system is to give a great emphasis of the transportation infrastructure.
The company is working on increasing its fleet to 60 vessels by 2016 with an addition 10 MR Tankers which will be distributed during 2015 and 2016 as well as some other leased in vessels that are anticipated to join as per OSC’s business requirements. Oman Ship Management Company is presently managing 27 vessels counting full practical management of possessed and third party vessels as well, including of 10 VLCCs, 6 LNG vessels, 4 VLOCs, 3 LPG vessels, 2 Methanol Carriers, 1 Chemical Tanker and 1 MR Tanker and 1 Multi-Purpose Vessel. Moving forward, OSC has tactics to bring more of its vessels under OSMC’s technical organization. Oman Shipping Company has supported to the expansion and advancements of ports and free zones areas in the Sultanate thereby merging the planned partnerships with business acquaintances in general and in precise the local and thus fundamental straight to the development of In-Country
As the largest exporter of goods moving on container services, Shanghai, China ranks as number one in the top fifty global container ports. Furthermore, Singapore still ranks as number two mainly because it is an important hub where containers from one-liner service are transferred to another liner service for on-carriage to their final destination. The top ports around the world ranking demonstrating the truly global nature of the liner shipping business and the importance of the networks of ports that facilitate timely and efficient ship and cargo movement.
The reduction of obstacles to trade and declining transport costs enhanced international trade growth. The liberalization of capital movements spurred international economic integration by eliminating restrictions on foreign direct investment, and multinational enterprises, with headquarters mostly located in developed economies, established affiliates in foreign markets. Thus, communication networks, helped to link the various stages of production across huge physical distances; economies of scale and scope remained important but on the level of individual activities rather than industries. All those factors, has considerably changed the speed and nature of economic globalization: international trade now consists of imports and exports of intermediates rather than trade in final
In SEA region, entry to Indonesia is restricted with cabotage law and only Indonesian flagged vessels are allowed to operate. Malaysia, largest market in SEA also restricts foreign owners from operating in the country unless the type of the vessel required for operation is not available from local owners. Labuan, a freehold registry can be considered as a short-term path to do business in Malaysia as a local flag. Other countries in SEA do not restrict foreign vessels in operating in their
Their main objective is to provides the framework especially for shipping and inside the framework had include the safety, environmental concerns, legal and policy, integration of technical, security of maritime and the efficiency of shipping.
Water transport is not flexible because it is restrained within water bodies. The use of containers has becomes the best inter-modal option for water transport whereby goods are placed in containers and transported through truck or rail to the port where it is loaded in to a container ship. Upon arrival to the destination port it is offloaded and transported again by track or rail to the consumer of customes.This helps reduce staffing needs, transit time and damages (Haulk, 1998).