Liner Trade & Multi-modal

Transport
Session 9
28.9.12
Liner Agent, FAK, Lash
 Liner/ Shipping Agent
• Liner Agent: No agent in early shipping era to agents
in increased shipping trade
• Agent Principal Relationship- The agent has authority
to act on behalf of principal.
• Port agents in tramp are appointed on voyage basis
and referred to special agent
• Liner agents are appointed for a specific period and
represent business of principal
• Relationship between principal & agent is of that a
Master and Slave.
 Liner/ Shipping Agent
• Role of Agent-
1. Interact with local authority like port,
custom, immigration, govt shipping dept,
surveyor etc
2. Entry inward and entry outward of ship
3. Berthing & Un berthing arrangement
4. Cargo handling arrangement
5. Marketing of export cargo
 Liner/ Shipping Agent
6. Supply of bunkers, fresh water
7. Supply of provisions/ stores at port
8. Waste removal
9. Medical treatment of crew falling sick at port
10. Repatriation of crew
 Liner Agent
• Authorities with whom Agent will deal-
1. Port
2. Customs
3. Income Tax
4. Immigration
5. Embassies/ Consulate General
6. Railways
7. Health Dept
8. Dock Safety, Nav Aids etc
 Ship Boarding by Customs
• The Customs (Preventing Officer) boards
ship on arrival to ascertain that all dutiable
goods are accounted for duty payment and
there is no smuggling. Master provides
following documents-
1. Crew List & personal property declarsion
2. Store List
3. Cargo declaration-IGM
4. Custom issues “inward” & “outward clear
 Liner Office Organization
1. General Manager- Overall (Operation, marketing &
Finance)
2. DGM (Mktg)
3. Manager (Oprn)
4. Manager (Fin) and sub ordinates
5. Executives (Mktg)
6. Executives (Oprn)
7. Executives (EDP)
8. Executives (Import), Export
9. Secretarial Staff
 Freight All Kind (FAK)
• Shipper shipping multiple commodities may
negotiate for an FAK rate.
• Purpose is to facilitate easier pricing & billing.
• It eliminates figuring all items separately
• On busy route liner will agree to lower class of
freight
• Shipper can benefit by getting lower rate
 Container Imbalance
• Movement of more cargo in one direction
than reverse leads to container imbalance
• This could be seasonal imbalance or annual
imbalance
• Movement of specific purpose cargo in one
direction without similar return causes a big
problem of imbalance
 How to calculate imbalance
• Imbalance calculation:
1. It can be done on port to port basis first and
then extended to region to region
2. Imbalances can be calculated on monthly
basis and then compiled annually with break
of 20’ and 40’
3. Finally it will show arithmetical difference
between cont discharged and loaded
 Tackling Imbalance
1. Administrative Commercial Angle: Commercial
dept of Line may be able to take appropriate
decision after studying trend in imbalances
2. Business commercial angle: Try to find out
shipment at port which are considered as non
containerisable and by discussing with shippers try
to move these cargo in containers.
3. Adjustment with size and type of containers
 Cont Trade Imbalance
4. Ensure cont stay at land is minimized to
ensure max circulation of inventory.
5. Take a call on owned and leased containers.
6. Prepare against seasonal demand by
withholding stock at relevant ports
Profit/Loss calculation in Cont Business
• NVOCC compute cont business profit/ loss as
per following method-
Refer Excel sheet
 Classification Society
• Classification Society is an independent, non
profit organization made up of representatives
of ship owners, ship- builders and
underwriters. There job is to ensure that ships
are properly constructed, registered and
maintained in seaworthy condition all the
times.
 Classification Society-Functions
• The function of a classification society are-
1. To publish rules for construction of ships
2. To receive the plans of ship construction for
approval including details of materials to be
used and equip to be installed, scrutinize it
and approve ensuring the ship is properly
designed.
 Classification Society
3.To publish a register which contains details of
classed ships such as dimension, hold capacity,
derrick capacity, equip on board ship, engines
powers etc for use by charterer, banker,
underwriter, shipper, charterer, port etc
4.To ensure periodical and proper surveys of
ship under their register for proper
seaworthiness all the time when at sea.