shippipedia.com http://www.shippipedia.com/life-cycle-of-a-ship/

Life Cycle of a Ship

Lifetime of a modern vessel is about 25 – 30 years and when the idea of ordering a new ship is born, a numberof steps and people that gets involved will follow, that acts to support the truly international business of shipping.

Whether it’s the lawyer checking the contracts, the financier delivering the capital, the seafarer crewing the ship,the port worker handling the cargo, the broker arranging insurance, the pilot charting a safe course, the hauliertrucking the goods, the police officer maintaining a secure port, or the chaplain supporting seafarers, theshipping industry is alive with activity 24 hours a day, seven days a week.

The Initial Planning

At this stage the shipowner will start planning for the new ship involving naval architects for the design. Usuallyprevious designs are considered however new and modern technology will be incorporated that meets today´stougher environmental regulations. A list of preferred suppliers is established based on technology, quality andprevious experience (Makers List). All information will be package in to specification that is used as basis for asyards for a quotation. When requesting a quotation a ship broker may be involved.

Ordering

Ordering of modern vessels requires huge amount of capital (a VLCC is priced at >$ 120 million) which meansthat the shipowner needs to secure ship financing. A negotiation between ship owner and ship yard takes placeand it may involve a ship broker to work through the contract supporting the process. Once the contract is

signed, engine builders & equipment manufacturers will be involved. At this stage ship owner and ship yardmakers lists will be discussed and it will be decided on which equipment makers that will be invited to bid. It willalso be decided what classifications society that will certify the vessel.

Ship Building

1. Signing of Contract - When signing the contract a ceremony usually will be held at the shipyard and this is astarting point for the shipyard to begin its process for building the ship. Normally the first payment is done whenthe contract is signed. The ship is also officially given a hull number and an IMO number which is unique identitythat will follow the ship through out its lifetime.

2. Production Design – The production design organizes the design information in the detailed plans intorespective component information. The production design enables the field staff to meticulously control a largeamount of components on site.

3. Material and Equipment Purchase - At this stage yards starts purchase all material and equipment need tocomplete the vessel. Since a tremendous volume of materials need to be ordered to build a ship, it is vital tomanage and supervise the delivery dates of those materials so that the procurement is timely and accurate.

4. Production Plan – The production plan has a critical impact on manufacturing efficiency due to theenormous amount of components and the large number of workers involved on the job site. It is vital,therefore, to plan thoroughly so as to control and supervise the flow of materials, work volume, jobassignments and subsequent progress of the shipbuilding process.

5. Steel Cutting – Steel plates are being cut in to the parts that will form the the hull and deck sections of theship. The process of heating and bending a steel plate into curved shapes is of great importance in shipbuilding,and requiries sophisticated skill and technique. Normally second payment will take place at this stage.

6. Assembly and Mounting of Ship Sections – The cut steel is assembled into smaller blocks that in turn areassembled into larger sections that mounted together to finally become a complete ship.

7. Launching – When all the blocks are mounted and jointed, launching is the next stage. While the launching ata dock simply means filling the dock with water to float the ship, the launching from a building berth is a veryimpressive and exciting sight to see since the ship slides its way majestically into the sea. This is one of the mostthrilling moments for all involved with the shipbuilding process. Third payment will normally take place duringlaunching.

8. Finishing of the Vessel – After launching the vessel is finished up at the quay. Starting with finishing work ofaccommodation and control sections, every equipment and instrument is checked and re-examined in practice.We are now in the final stretch of shipbuilding.

9. Sea Trial – At sea trial the ship and ship equipment performance is tested and the result is kept as aperformance record of the vessel.

10. Delivery – A new ship is born. After the delivery ceremony, the captain, chief engineer and crewembark for the ship’s maiden voyage. Final payment is done at delivery.

11. Warranty - Warranty period of a new ship is usually 12 – 24 months depending on the contract.

Ship Operation

Modern ship operation is a big and sophisticated process that involves a number of people at authorities anddifferent companies. During this period of the ships life it will generate money for the owner who will get hisreturn on the investment.

Ship recyling

After 25 – 30 years of service or when repairs and retrofitting cannot be financial justified the ship is recycled.Normally the ship owner sells the ship to a ship scrap yard for demolition. At the yard all the steel and some ofthe equipment is reused or sold in th secondhand market. For safty, helth and environmental issues in the pastthe IMO has set up new rules for the process.