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International Logistics

Liner & Tramp Ships


Liner Shipping
The liner shipping is mainly associated with containers/passengers. Freight rates are fixed. Purpose is mainly to carry small lots of goods from numerous shippers in designated ports to a large number of receivers.

Liner Shipping Distinctive Characteristics

Liner services are: Well established, pre-published schedules Fixed routes Fixed prices These services are controlled by cartels, called shipping conferences.

Other distinct characteristics are

Regularity Punctuality Speed Reliability

Liner Shipping Operating Routes

Generally three types of itineraries

End to end services Pendulum services Round the world services


Freights & Tariffs

Usually established by the Shipping Conferences These are fixed for a certain period or for specific quantity or type of goods The freights and tariffs are considerably higher than charged in case of shipment by tramp vessels

Benefits of Liner Shipping

Efficiency Global Economic Engine Low Environmental Impact

Modes of Shipment
Break Bulk Containerized Mode

Cost calculation
Input Method Output Uses


Tramp Ships
This branch of shipping industry is very irregular. Unstable and little organized.
Tramp ships are , in accordance with the demand, contractually put at the disposal of charterers . Tramp ships trade on spot market with no fixed schedule It is done with ships in voyage charter The Ship operator must see to it that his ship is rarely idle


Vary considerably in size Sometimes of lesser quality than liners Relatively slow and cheap Modern Tram fleets have tankers & specialized ships

Compared with liners, freight is low. Freight established on INT. freight market according to rules of supply and demand. The Baltic exchange of London Is the main market

Consists of unpackaged bulk goods (ore, coal, grain etc), or seasonal products. No special care given to manipulation and stowage Speed of delivery is of primary importance




These are the ships which are like on-call or

on-demand service ships.

Tramp ship services are availed when the customer has large cargo volumes, when needs to be shipped in vessel like food grains, chemical, crude oil.

Ships capacity ranges from 5000 M.Tons to

500,000 M.Tons .


Small Size Don't Use Highly Sophisticated Ships And Technology Slow And Cheap Transport Of Bulk Goods Cereals & Derivatives Coal Ores Gases Frozen Products Oil Cars Wood

Types of Ships
Various types of ships Car ships (Pure car carriers) General Cargo vessel Bulk Cargo Carries raw materials grain, coal, ore, sand, fertiliser, alumina, bauxite, sugar, cement, wood chip Ore Oil and Ore Bulk Oil

Ore Oil carrier

Types of Ships
VLCC (very large crude carriers) 200320,000 dwt; ULCC (ultra large crude carrier) 320,000 + dwt Parcel Tankers LNG & LPG Carriers

A charterer may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate. A charterer may also be a party without a cargo who takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes

Charter Parties
A written, or partly written and partly printed, contract
A charter party is the contract between the owner of a vessel and the charterer for the use of a vessel

Bareboat Charter Time Charter

Voyage Charter
Space Charter Spot Charter

An agreement between the charterers to exploit the earning capacity of similar ships to co-operate in the Commercial Management and Commercial Operation of all such ships controlled by them Improves transport efficiency by special investment and increased ship utilization
A pool agreement is a horizontal agreement between competitors which may create market dominance and increase barriers to entry. In many jurisdictions this already makes them illegal