Difference between a Liner and Tramp service

Written By Hariesh Manaadiar on 29 July, 2009

You might have heard the terminology Tramp service or Tramper or Tramp vessel
and also the terminology Liner Service.. What is the difference between the two..??

Liner Service is a service that operates within a schedule and has a fixed port
rotation with published dates of calls at the advertised ports.. A liner service
generally fulfills the schedule unless in cases where a call at one of the ports has
been unduly delayed due to natural or man-mad causes..
Example : The UK/NWC continent service of MSC which has a fixed weekly
schedule calling the South African ports of Durban, Cape Town and Port Elizabeth
and carrying cargo to the UK/NWC ports of Felixstowe, Antwerp, Hamburg, Le
Havre and Rotterdam..
A Tramp Service or tramper on the other hand is a
ship that has no fixed routing or itinerary or schedule and is available at short
notice (or fixture) to load any cargo from any port to any port..
Example : A ship that arrives at Durban from Korea to discharge cargo might carry
some other cargo from Durban to the Oakland in the West Coast of USA which in
an entirely different direction.. From Oakland say for example it could carry some
cargo and go to Bremerhaven..
One of the main differences between Liner and Tramp would be in the type of
contract of carriage and Bill of Lading used..
In the case of a Liner, generally the shipping line operating the liner service will
have their own pre-printed bill of lading or use a BIMCO CONLINEBILL 2000,
whereas in the case of a Tramp service (which may be covered by a Charter Party),
a bill of lading like the BIMCO CONGENBILL 2007 will be used depending on
the cargo, charter party etc..
different types of ships
passenger ship is a ship which carries more than twelve passengers. (SOLAS
I/2)
fishing vessel is a vessel used for catching fish, whales, seals, walrus or other
living resources of the sea. (SOLAS I/2)
Fishing vessel means any vessel used commercially for catching fish, whales,
seals, walrus or other living resources of the sea. (SFV 1993 article 2)
nuclear ship is a ship provided with a nuclear power plant. (SOLAS I/2)
Bulk carrier means a ship which is constructed generally with single deck, top-
side tanks and hopper side tanks in cargo spaces, and is intended primarily to carry
dry cargo in bulk, and includes such types as ore carriers and combination carriers.
(SOLAS IX/1.6)
Bulk carrier means a ship which is intended primarily to carry dry cargo in
bulk, including such types as ore carriers and combination carriers. (SOLAS
XII/1.1)
Oil tanker means a ship constructed or adapted primarily to carry oil in bulk in
its cargo spaces and includes combination carriers, any "NLS tanker" as defined in
Annex II of the present Convention and any gas carrier as defined in regulation
3.20 of chapter II-1 of SOLAS 74 (as amended), when carrying a cargo or part
cargo of oil in bulk. (MARPOL Annex I reg. 1.5)
General cargo ship: A ship with a multi-deck or single-deck hull designed
primarily for the carriage of general cargo. (MEPC.1/Circ.681 Annex)
High-speed craft is a craft capable of a maximum speed, in metres per second
(m/s), equal to or exceeding 3.7 times the one-sixth power of the volume of
displacement corresponding to the design waterline (m), excluding craft the hull
of which is supported completely clear above the water surface in non-
displacement mode by aerodynamic forces generated by ground effect. (SOLAS
X/1.2, HSC Code 2000 para 1.4.30)
Mobile offshore drilling unit (MODU) means a vessel capable of engaging in
drilling operations for the exploration for or exploitation of resources beneath the
sea-bed such as liquid or gaseous hydrocarbons, sulphur or salt. (SOLAS IX/1,
MODU Code 2009 para 1.3.40)
Special purpose ship (SPS) means a mechanically self-propelled ship which
by reason of its function carries on board more than 12 special personnel.
(SPS Code para 1.3.12)

Definition of 'Volume Of Trade'

The total quantity of futures contracts bought and sold during a trading day. The volume of trade
numbers, reported as often as once an hour throughout the current trading day, are estimates.
Final, actual figures are reported the following day. In the meantime, investors can use tick volume,
or the number of changes in a contract's price, as a surrogate for trade volume, since prices tend to
change more frequently with a higher volume of trade.
Investopedia explains 'Volume Of Trade'

Volume tells investors about the market's liquidity. Higher volume means higher liquidity and better
order execution. When investors feel hesitant about the direction of the stock market, futures
trading volume tends to increase. Volume also tends to be higher near the market's opening and
closing times, and on Mondays and Fridays. It tends to be lower at lunchtime and before a holiday.
Conference Lines
A Liner Conference can be defined as "a group of two or more vessel operating carriers which provide
internationa liner services for the carriage of cargo on a particular route or routes within specific
geographical limits and which has an agreement or arrangement within the framework of which they
operate under uniform or common freight rates and any other agreed conditions with respect to the
provisions of the liner services".

There are two types of shipping conferences, namely the Open Conferences and the Closed
Conferences.

Open Conferences

All conferences operating to and from the United States are "open conferences". An open conference
practically has to accept any shipping lines that applies for membership in accordance to with the United
States legislation. The interpretation of US Anti-Trust Laws in the context of shipping conference forms
the basis of structure "open" conferences.

Closed Conferences

Most European based shipping conferences are "closed" conferences. A closed conference admit new
members at the discretion of existing members. A closed conference regulates the participation of each
member in the trade via negotiations.

Thus, a closed conference has a greater ability to prevent costly over-tonnaging.

Common Features of Conference Liner Services
1. Uniform tariff rates and terms and conditions.
2. Control of supply of shipping space through regulation of trade participation of each member
such as sailings, tonnages and port restrictions.
3. Loyalty arrangements with shippers such as contractual discounts, deferred rebates and service
contracts.