LINER SHIPPING

……..

Basics & Concepts

MODULE – 1

INTRODUCTION
1.1 THINK OF A BUS SERVICE

Route No. 100

BUS

TAXI
1.1.1 So the relevant points are:-
i Specific Route.

ii Specific Stoppage.

iii Specific Interval.

iv Size.
1.1.2 Shipping Service Route Map
 1.1.3 TRANSSHIPMENT

Salient Feature:

1. Destination served even without direct port

of calls.
2. This gives rise to concept of Feedering (short
halt Liner shipping service).
 E.g. Cargo carried from Bangalore to Helsinki where
the vessel does not call Bangalore & Helsinki .

CHN A B
B’lore TUT CMB HAM HEL
COK

A & B – Transshipment Port.

1.1.4 DEFINATION OF LINER
SHIPPING

A SHIPPING SERVICE IN A SPECIFIC

ROUTE WITH THE SPECIFIC PORT OF
CALLS AT A SPECIFIC FREQUENCY.
EXAMPLES
i LINE – SCI (www.shipindia.com)
ROUTE : INDIA-UK-INDIA
PORTS OF CALL : JNPT- MUNDRA –
SALALAH – PORTSAID -
BARCELONA - HAMBURG-
ROTTERDAM – FELIXTOWE - JNPT

ii LINE - NYK
ROUTE : INDIA-FAREAST-INDIA
PORT OF CALL : GTI – PIPAVAV – COLOMBO –
SINGAPORE – HONGKONG –
PUSAN – SHANGHAI – NINGBO
 MODULE – 2

TYPES OF LINER SERVICES

2 SERVICES
2.1.1 BREAK BULK.
(a) Conventional.
(b) Barge (Lighter Abroad Ship-LASH).

2.1.2 CONTAINER /CELLUR VESSEL.

2.1.3 COMBINATION (COMBI)/RO-RO.

 2.1.1 BREAK BULK

STORAGE
LOCATION PORT SHIP

Salient Features:
1. Packages as delivered is loaded into the ship there
is no change of packaging by the vessel operator or
any other handling agents.
2. Packages are discharged as it was loaded &
delivered to the consignee in the same way.
Few important nomenclatures in commercial
operation of Break Bulk vessels are:-
A.Stowage B. Compatibility C. Grain & Bail
capacity D. Freight Ton.
Special Type of Break Bulk Vessels:
1. Heavy Lift Carrier – Cater to special project cargoes.
These types of vessels are meant to carry
awkward/heavy cargo. Of course the nos. are not
very many & not easily available. IT is restricted to a
specific route as the cargo flow demands.
2. Reefer Vessels – There are some routes where the
regular movement of reefer cargo (basically food
stuff) & this kind of vessels are used for such
movements & full ship is a reefer chamber like any
other break bulk cargo ship.
2.1.2 CONTAINER /CELLUR VESSEL
STORAGE CONTAINER
LOCATION YARD STUFFING PORT SHIP

1. The packages are put inside (Stuffing) an

equipment called container (details in
subsequent slides) & the container is loaded
on board.
2. The container is discharged & the cargo is
taken out from the containers (De-stuffing)
for delivery to the importer/Consignee.
 ADVANTAGE OF
CONTANARIZATION –VIS-A-VIS
BREAKBULK
• FASTER – CARGO CONSOLIDATION
BEYOND POSSIBILITY OF AVERAGE
BREAKBULK CARGO PER UNIT.
• REDUCES PORT STAY OF THE VESSELS &
THUS FACILITATES QUICKER TURN
AROUND OF VESSELS.
• GREATER PROTECTION OF FRAGILE &
EASILY CONTAMINATED CARGO.
• REDUCES PILFERAGE.
• REDUCTION IN PACKAGING COST.
2.1.3 COMBINATION (COMBI)/RO-
RO
When a vessel can facilitate loading both
container & Break Bulk cargo, the same can
be termed as combination carrier. While it was
quite prevalent during early 80’s it is possible
that no such carrier is available generally but
limited to specific requirement in particular
trade route. In short this kind of vessels are
limited as of now. The technology used in
RO/RO is different from conventional Break –
Bulk vessels.
 MODULE – 3

EQUIPMENT - CONTAINER
 3.1.1 TYPES OF CONTAINERS

1. OWNERSHIP WISE

1.1 SOC – SHIPPERS OWNED CONTAINER

1.2 COC – CARRIER OWNED CONTAINER

2. CATEGORY WISE

2.1 GENERAL PURPOSE (GP) – e.g. TEU, FEU &

HQ (only 40’)

2.2 REEFER (RF) – e.g 20’, 40’, HQ.

2.3 TANK – e.g 20’, 40’.

2.4 SPECIALS – FLAT RACK(FR), FLATS, OPEN

TOP
3. SIZE WISE
3.1 TWENTY EQUIVALENT UNIT (TEU) – OUTER
DIMENTION
l – 20 FEET
W – 8.5 FEET
H – 8.5 FEET
NOTE: HIGH CUBE(HQ) – CONTAINERS ARE
ALSO AVAILABLE WHERE LENGTH & WIDTH
REMAINS SAME BUT THE HEIGHT IS 9 FEET.
3.2 FOURTY EQUIVALENT UNIT (FEU) – OUTER
DIMENTION
l – 40 FEET
W – 8.5 FEET
H – 8.5 FEET
 3.1.2 DIFFERENT STATUS OF
CONTAINERS
• FCL/FCL :Stuffed by Shipper & in its own premises /
consignee destuff at its own premises.

• FCL/LCL: Stuffed by Shipper & in its own premises

destuffed by carrier.
•LCL/LCL: Stuffed by carrier /destuffed by carrier.

• LCL/FCL: stuffed by carrier & destuffed in consignee

premises.
 MODULE – 4
SERVICE PROVIDERS
 4. SERVICE PROVIDERS
1 PORT / TERMINAL / BERTH OWNER.
2. CONTAINER FREGIHT STATION (CFS).
3. VESSEL OPERATOR.
4. FREIGHT BROKERS.
5. SHIP AGENCY HOUSES.
6. NVOCC / FRT FORWARDER (FF).
7. CUSTOMS HOUSE AGENTS (CHA).
8. TRANSPORTERS (RAIL/ ROAD).
9. STEVEDOURING.
10. SURVEYORS.
 MODULE – 5
STEVEDORS / TERMINAL
HANDLING CHARGES
 5. Loading-Un loading (Stevedoring)/
Terminal Handling charges (THC)
5.1 The Service providers who load/discharge cargo are called
stevedores. These stevedores are equipped to handle all
types of cargoes both for discharge & loading .
Normally, the cost of the loading/discharging of break bulk
cargo is based on the weight. However the terms may differ
in case of awkward cargo (long length / heavy lifts).
Further, the freight rates of Break Bulk cargo is normally
inclusive of loading & discharging charges unless specified
in the beginning. Informatively when the cargo is loaded on
FIO (Free in & Free Out) basis it means discharging &
loading are in addition to freight agreed upon.
Similarly many other terms like FILO,LIFO, HOOK to
HOOK etc are also in vogue.
5.2 In container shipping, the vessel operator recovers the
discharging, loading expenses etc through a service
charge termed as Terminal handling charge (THC).
Over the years the terminal handling charges have
undergone sea changes and as of now following
expenses (may not be exhaustive) are included in the
recoverable THC:-
1. Delivery of empty container & receiving laden
container at the Terminal, & all clerical work &
reporting associated with delivery & receiving.
2. Inspection & reporting condition of container &
completion of Interchange receipt.
3. Inspection & reporting of seals & wiring including
removal of invalid labels & resealing as appropriate.
4. Movement of container on/from chassis, barge
or rail.
5. Internal Transport of container on/from
chassis, barge or rail car.
6. Handling container out off/into/out off stack.
7. Reporting of chassis, barge & railcar activities
in/out of the Terminal.
8. Storage of full container within the time
limits defined in the conference Tariff.
9. Take Laden box out of stack.
10. Internal Transport of container from stacking area
to ship’s side under hook.
11. Move of container from ship’s side under hook to
ship’s rail.
12. Move of container from ship’s rail into ship’s cell
(including ship’s hold or Deck).
13. Lashing of container.
14. Opening & closing of hatch covers including
unsecuring & securing, & movement of hatch-
covers from bay to bay or to quayside & V.V.
15. Wharfage charges & quay dues etc. where related to
cargo.
16. Physical & clerical Terminal planning plus reporting
of container activities into vessel, including damage
reporting & inspection of seals, wiring & labels.
17. Overtime or public holiday extra working costs.
18. Pre-trip container inspection.
19. Connecting of container cables, clip-on units and/or
generating sets.
20. Electric power supply liquid nitrogen etc.
21. Monitoring of Temperatures.
22. Administration including reporting of defective units
& reporting equipment into/out of Terminal.
23. Temperature controlled container costs in excess of
GP items.
24. For Loading over height or other Non-Standard
containers involving the use of special spreaders
or equipment.
25. Additional physical & administrative costs
associated with the handling of dangerous goods
(IMO) at terminals.
 MODULE – 6

PROCESS FLOW
6.1 PLACE OF ORIGIN TO PORT
CARGO LOADED
FROM FACTORY

RAIL HEAD

RAIL HEAD

BROUGHT TO
PORT FOR
LOADING
 6.2 AT A GLANCE - EXPORT
MOVEMENT TRANSPORTATION OF
FREIGHT CARGO / CONT R TO
FORWARDER PORT PREMISES
CARGO
TO BE CHA FACTORY
SHIPPED STUFFED STUFFING
SHIPPING
CARGO OF CARGO
LINE

ISSUANCE
OF ISSUANCE OF
SHIPPED LOADING “RECEIVED FOR
VESSEL
ON BOARD OF CARGO SHIPMENT B/L WITH
ARRIVAL
B/L INTENDED MOTHER
VESSEL
FILING OF
EGM
DEPARTURE
OF VESSLE DOCUMENTATION FOR
DISPORT STARTS
 6.3 AT A GLANCE - IMPORT
MOVEMENT
ARRIVAL OF DELIVERY
FILING DISCHARGE
VESSLE AT DOC.
OF IGM OF CARGO
DISCHARGE COMMENCED
PORT

CONTAINERS
MOVED TO
TERMINAL YARD

CONT TAKEN TO
RETURN OF FACTORY FOR
EMPTY DESTUFFING
CONTAINERS
AS DESIRED DESTUFFING AT
PORT PREMISE
 6.4 DISCHARGE PORT TO
DESTINATION
CARGO
DISCHARGED AT
DISPORT

RAIL HEAD

RAIL HEAD

DELIVERY AT
FINAL
DESTINATION
 MODULE – 7

DOCUMENTATION
 7.1 BILLS OF LADING

Issuance of Bills of Lading gives

Birth to an obligation at a price.
I
Mother Of All Documents.
I
Cannot possibly fulfill the obligation
without appropriate documentation.
 7.2 Appropriate documentation leads
I
To your shipper – Motivation for next visit.
To your principal – Good balance sheet
figures.
- Processing of claims (if
any) without much
agony.
To your Dest. Port
Brothers/sisters – Less consumption of
man (woman) power.
To your consignee – Delivery with a feeling of
home coming.
 7.3 Flow of Documentation

FULL SET OF FREIGHT

PRINCIPAL MANIFEST COVERING ALL
DESTINATIONS

DOCUMENTATION
DESTINATION
(FROM THE FREIGHT MANIFEST
PORT AGENTS
ISSUING AGENTS)

THIRD PORT FREIGHT MANIFEST ONLY.

AGENTS (IF
APPLICABLE)
MODULE – 8
MULTI-MODEL
 8.1 WHAT IS MULTIMODEL ?

ORIGIN
LOCATION RAIL PORT
HEAD PREMISE

PORT DISPORT LOADED

PREMISE ON BOARD

RAIL RAIL FINAL

HEAD HEAD LOCATIO
N
 8.2 SALIENT POINTS
1.The concept of multimodal transport covers
the door-to-door movement of goods under
the responsibility of a single transport
operator.

2. Multimodal transport implies the safe and

efficient movement of goods, where the
MTO (Multi model Operator ) accepts the
corresponding responsibility from door-to-
door.
SESSION OPEN FOR QUESTIONS
 POINTS TO PONDER FOR NEXT
SESSION .
1. No. of Containers required for a Trade route
and bit of technical side of the equipments.
2. Stowage.
3. Multimodal Transport.
- There is a world-wide need for
harmonization (uniformity) of the
understanding (legal environment )for
multimodal transport.
4. Joint Service Agreement.
THANK YOU
नमस्ते