Introduction to Shipping Overview

The weight of water a ship displaces when fully loaded with fuel and all stores.

The weight a ship can carry, including cargo, fuel, water, and crew.

The weight of the ship's hull and its equipment, excluding cargo, fuel, and passengers.

The depth of the ship's hull below the waterline.

The maximum draft a ship can safely have, based on its structural design.

The draft a ship is designed for based on its deadweight, stability, and performance.

The draft of a ship when it is empty of cargo.

The volume of all cargo spaces on a ship.

A person or entity who owns and operates a commercial ship, responsible for equipping and exploiting it for cargo delivery or hire. They may hire a crew but usually manage the vessel's technical operations.

A professional who provides expert advice on a particular subject, especially in business or law.

A person or entity who contracts with a shipowner to use a ship for transporting cargo, often for a specific price and route. They may own the cargo or act as a third party broker.

A business model for shipbroking that involves trading, ship management, construction, repair, and other services.

A non-governmental organization that sets technical standards for ship construction and operation.

The process of building a new ship.

A business that helps connect cargo owners with shipowners to arrange transportation contracts. They act as intermediaries, finding suitable ships for delivery and negotiating freight rates.

Companies specializing in connecting ship owners and charterers for cargo transport, or buyers and sellers for ship transactions.

A legal document outlining the agreement between a ship owner and shipyard for the construction of a ship.

A company that sets standards and provides classification certificates for ships, ensuring they meet safety and technical requirements. This helps with insurance and port access.

A company responsible for the technical maintenance and management of a ship, handling tasks like repairs, inspections, and crew management. This can be done in-house by the shipowner or outsourced.

A legal document used in the purchase and sale of ships, often following the NSF 2012 format.

Insurance that covers losses or damage to ships, cargo, terminals, and any transport or cargo movement during transportation.

The process of finding a charterer for a ship, where the owner leases the ship for a specific period.

A company or individual who owns cargo and hires a ship to transport it. They may employ a shipbroker to find suitable vessels for their shipments.

A system that connects different companies and individuals involved in shipping, from brokers and insurers to classification societies.

A person who navigates and commands a ship. They are responsible for the safety and operation of the vessel and its crew.

The process of managing the day-to-day operations of a ship, including maintenance, staffing, and compliance.

A process where classification societies inspect ships to ensure compliance with standards and safety regulations.

A group of people who work on a ship, responsible for various tasks like navigation, maintenance, and cargo handling.

The process of selling an existing ship.

An organization that validates ship construction against established standards.

International Association of Classification Societies (IACS) ensures uniformity and high quality in ship classification standards.

They explicitly state they are not responsible for a ship's safety or seaworthiness.

A voyage charter is a contract where a charterer hires a vessel and its crew to transport cargo from a loading port to a discharge port for a specific voyage. The charterer pays the vessel owner a per-ton or lump-sum fee.

Laytime is the time allotted for loading or unloading cargo at a port. If it is exceeded, the charterer pays demurrage to the vessel owner.

Demurrage is a fee charged for exceeding the agreed-upon laytime in a voyage charter. It penalizes the charterer for delaying the vessel's departure.

Despatch is a payment made by the ship owner to the charterer when cargo is loaded or unloaded faster than the agreed-upon laytime in a voyage charter.

A time charter is a contract where a charterer hires a vessel for a specific period of time, not just a single voyage, for a fixed daily or monthly fee. The charterer can then choose where to send the vessel.

In a time charter, the vessel owner manages the vessel and its crew, while the charterer directs the vessel's movement and cargo operations.

Time charter agreements usually specify a per-day or per-month rate, also called a 'hire rate', which the charterer pays to the vessel owner.

Under a time charter, the vessel owner is responsible for all operating costs like port fees, fuel, crew, and maintenance, while the charterer bears the costs of cargo loading and unloading.

A shipping arrangement where the charterer hires a vessel without any administrative or technical maintenance included. The charterer takes full responsibility for the vessel, including operating expenses, crew, and insurance.

In a bareboat charter, the charterer pays a daily rate to the owner for the use of the vessel.

A bareboat charter can be a form of hire-purchase, where the charterer eventually acquires ownership of the vessel.

The charterer is responsible for all operating expenses in a bareboat charter, including fuel, maintenance, and crew.

The owner of the vessel is responsible for the capital cost in a bareboat charter.

The majority of goods are transported by sea.

Bulk cargo, including solids and liquids, make up the largest percentage of goods transported by sea.

Containers and general cargo make up a significant portion of goods transported by sea.