TYPES OF SHIPPING

TRADE TRAMP& LINER

SOURABH.K
MBA (PORT & SHIPPING MANAGEMENT)
INDIAN MARITIME UNIVERSITY KOCHI CAMPUS

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TYPES OF TRADE

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TRAMP TRADE

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TRAMP

• The tramp ship is one that is hired like a taxi or leased auto.
That is, it is a bulk or tank ship that is hired on a voyage or time
basis.

• On a voyage basis, a U.S. exporter of grain will seek a tramp

ship that will become empty at a desired U.S. port. It will then
be hired for one-way movement to a foreign port. Port fees, a
daily operating rate and demurrage, will be part of the charter
contract.

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TRAMP

• shipping service where carriers contract to haul cargo in

shipload lots between ports designated by charterer.
• Tramp ships provide convenient, timely & economic
transportation for many goods needed in a complex industrial
society
• It serves

• In established trades (i.e., grain from US, Canada, Argentina & Australia to
N. Europe, Med, Africa, Japan & S. Asia
• On new routes to alleviate temporary critical shortages

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TRAMP

• Moves 4.5 billion tons of basic agricultural, forestry, mining

products & manufactured raw materials (steel, cement, etc)
world-wide
• Depends on a global network of brokers, agents &
representatives to market services, and procure & contract
cargoes
• Smaller general purpose Tramps face fierce competition from
• Larger bulkers: 30-50,000 DWT “Handi-Max” & very large (100-159,000
DWT) special purpose, ore carriers
• Container ships

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TRAMP

• STILL (1996): 50% of all dry-bulk ships & 20% of all dry-bulk
cargo carried by 10-30,000 DWT vessels to service

• Cargoes that cannot be placed in containers

• Transportation of small (10-15,000 T) lots
• Shallow depth ports and/or
• Ports with low to moderate facilities requiring self-unloading
vessels

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 CHARTERING
• CHARTER-The hiring of a vessel for either:
• a specified period of time or
• a specific voyage or set of voyages.
A chartered vessel is technically a private carrier which predominates
in tramp trade, but liner companies often charter vessels or lease
vessels to charter depending on cargo demand

• CHARTERER- The entity hiring the vessel from the shipowner.

• CHARTER-PARTY-The contract between the owner and the
charterer, stipulating in detail each party’s responsibilities in the
transaction.

Charta Partita is Latin for a “letter divided.”

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 LINER TRADE

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LINER SHIPPING

• Liner shipping is the service of transporting goods by means of

high-capacity, ocean-going ships that transit regular routes on
fixed schedules.

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ABOUT LINER SHIPPING

• Transportation by sea in the early days was done by sailing

ships, which depended on wind and weather.
• There are approximately 400 liner services in operation today,
• Most providing weekly departures from all the ports that each
service calls.

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 ADVANTAGES OF LINER SERVICE

• Regularities of sailing to scheduled

• Uniform rates for all shippers
• Cover wide range of ports
• Sometimes give rebates based on
loyalty agreements
• Stable freight rates

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IMPACT OF LINER SHIPPING

• Positive:
• Lowering of Costs
• Increases in Availability
• Economic Growth
• Large Loads
• Global Economic Engine Negative:
• Time
• Environmental Costs
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LINER SERVICE EXAMPLE INDAMEX

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INDAMEX

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INDAMEX

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TOP GUNS

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• 1. A.P. Moller–Maersk Group
• TEU: 3,012,172
HQ: Copenhagen Denamrk
Founded: 1904
Revenue: $40.3 Billion (USD)
Employees: 89,000
• Mediterranean Shipping Company S.A. (MSC)
• TEU: 2,659,489
HQ: Geneva, Switzerland
Founded: 1970
Revenue: $28.2 Billion (USD)
Employees: 24,000

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• 3. CMA CGM Group
• TEU: 1,799,291
HQ: Marseille, France
Founded: 1978
Revenue: $15.7 Billion (USD)
Employees: 22,000

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