Lubnina Ekaterina, BLG-153

ANNOTATION
My presentation is about Maritime transport in Supply Chain Management. I will briefly
describe the structure of this industry, name classes of vessels and common ship types, represent
statistics of several facts in maritime transportations and summarize everything outlining key
advantages and disadvantages of this mean of transport.

SUMMARY
Maritime transportations in SCM
Its known that 90% of the worlds international trade is transported by sea. Maritime transport is
the most convenient way of sending high-volume imperishable cargoes. Of course there are some
disadvantages of this mode of transport: for example, sea-freights are really slow, thats why they
are often delayed.
In the structure of this industry there are formal groups of shipping lines that operate on certain
shipping routes, called liner conferences. The role of shipping lines in the process of transporting
goods is to provide companies with necessary means. However, with all important matters will
deal a ship's operator. His responsibilities include: providing stuff with food, controlling repair
works, dealing with customs etc. Not the last place in the structure of industry take freight
forwarders, who mostly watch and control movements of goods trough all distances.
Here are some special terms and abbreviations, regularly used in a sea-freight area: full container
load(FCL), less than container load(LCL), hook to hook, liner in, liner out, break bulk cargo,
stowage plan, lost slots, TEU, FEU etc.
Prices on such deliveries are usually quoted in US$ or . However, in addition to this price
special surcharges (BAF, CAF, PSS, repositioning charge, war risk surcharge) can be applied.
Of course, an important role in maritime transportations plays documentation, required by
customer as well as government. They include bills of lading, letters of credit, certificate of
origin, commercial invoices, packing lists etc.
Vessels are classified by special organizations in order to establish the class, age and minimum
standard of maintenance of it by a shipping line. Every craft should have a license given by the
government. There are such ships classes as: handysize, handymax, aframax, suezmax,
panamax, VLCC, ULCC, capesize.
Talking about common ship types we can cover cellular container vessel, break bulk freighter,
roro vessel, LNG vessel, oil tanker, specialized heavy lift vessel, dry bulk carrier. Their cargoes
depends on types of vessels. For example CCV is designed for ISO shipping containers
transportations whereas roro vessel is used to carry wheeled vehicles.
Before sent a cargo to any port, its important to know all available handling facilities: not all the
ports can handle all types of cargo. Lots surcharges and extra offers depends on the port and its
place.

GLOSSARY
Shipping terms
1. FCL (Full container load) filled in a container goods
2. LCL (Less than container load) shipment that should be consolidated with other in
order to save money
3. Hook to hook means that a shipping lines prices include loading the goods as well as
unloading them
4. Full liner terms synonym of hook to hook
5. Liner in responsibility for the cost of loading the cargo
6. Liner out responsibility for the cost of unloading the cargo
7. Free in/Free out opposite of hook to hook; (free to a shipping line)
8. Break bulk cargo non-containerized loose freight
9. Weight or measure method to price sea-freight for break bulk shipments
10. Stackable cargo easily arranged in a stack
11. Stowage plan plan which will clearly show where each item should be loaded
12. Lost slots extra space occupied by the load
13. Port rotation order and names of necessary ports
14. TEU unit of containers that a ship can carry (equal to one 20 foot ISO shipping
container)
15. FEU unit of containers that a ship can carry (equal to one 40 foot ISO shipping
container)
Surcharges
1. BAF (Bunker adjustment factor) common surcharge change due to the variations in the
price of marine fuel in different parts of the world.
2. CAF (Currency adjustment factor) common surcharge change due to currency
exchange
3. PSS (Peak season surcharge) surcharge originated in the Far East due to imbalance in
trade flows
4. Repositioning charge surcharge that is applied to cover the cost of returning an empty
container
5. War risk surcharge surcharge that is applied in war zones
Documentation
1.
2.
3.
4.

Bills of lading receipt for the cargo being transported on its ship to a named destination.
Letters of credit guarantee that the seller gets his payment in time and in full
Certificate of origin document establishing the origin of the goods
Commercial invoices used as a customs declaration provided by the person or
corporation that is exporting an item across international borders
5. Packing lists detailed list of all the items to be transported

Vessel classification
1. Handysize smaller sized ship

2.
3.
4.
5.
6.
7.
8.

Handymax medium sized ship

Aframax the largest crude oil tanker
Suezmax the maximum size of ship that can pass through the locks
Panamax special for Panama Canal (special size)
VLCC very large crude carrier
ULCC ultra large crude carrier
Capesize large ships

Common ship types and their cargoes

1.
2.
3.
4.
5.
6.
7.

Cellular container vessel special vessel for ISO shipping containers transportations
Break bulk freighter vessels for any kind of loose cargo
Roro vessel (roll-on roll-off) vessel used to carry wheeled vehicles
LNG vessel vessel cooled to a necessary temperature to reduce in size
Oil tanker vessel for large volumes of crude oil
Specialized heavy lift vessel vessel for very heavy and large cargoes
Dry bulk carrier vessel for loose dry bulk goods (stone, coal)

Other
1.
2.
3.
4.
5.

Surcharge extra payment

Consignor freighter or shipper
Intercontinental can deliver goods from one continent to another
Weight ratio coefficient of weight
Transport fleet workers on board
6. Unit load combines individual items or items in shipping containers into single "units"
that can be moved easily with a pallet jack or forklift truck