ONTARIO

International Transport and logistics

Section 4: Ocean transportation

Types of Vessels

CON-ROSUPER TANKER (liquids)(Abqaiq)

RO-RO

CONTAINERPROJECT VESSEL BULK CARGO(Sabrina 1)

OCEAN SHIPPING

In volume, the transportation by vessel represent more than 90% of all international movements. By Bulk:Petrolium, Grain, coal, chemicals

By Containers:FCL (Full container load) 20 feet, 40, 40HC,45LCL (less than container load) consolidationReefer -10 degrees ou Temp control 4 degrees)Open-topPlateformTankers

OCEAN TRANSPORT

Loading types • Bulk (grain, cereals,cement,

coal, minerals, etc)

• Liquids

• Ocean Containers

• Unit loading • mechanical loading• merchandize on skids• merchandize in cases• heavy merchandize• oversize

OCEAN SHIPPING

A. The container:

Numerous advantages:• Regroups the merchandize in a single unit;• Adapted for ocean, rail and road transportation;• It’s rectangular shape permits easy handling;• Protects the freight against damage (packaging) and theft (seals);• The industry as standardize dimensions mainly into 20 and 40 feet long

steel containers.• The reference dimension is called TEU’s for twenty feet equivalent units.

B. Rates:For FCL, rates are calculated by container (box).For LCL, rates are calculated by cubic meter. The customer

pays for the SPACE taken in the container.

OCEAN SHIPPING

OCEAN CONTAINERS

Main ocean containers

20’, 40’, 40’HC, 45’*

Standard width: 8’Standard height: 8,5’

HC height: 9,5’

NOTE: There are other types of containers.

Charge:20’: 24 TM40’: 30 TM

Limits of charge vary depending on country of origin / destination road rules.

* Available on certain destinations only

OCEAN SHIPPING

OCEAN SHIPPING

OCEAN CONTAINERS

Open top containers

20’, 40’

Standard width: 8’Standard height: 8,5’

Charge:20’: 18 TM40’: 25 TM

. Charging limits can vary upon country road rules.. Loading with cranes.

OCEAN SHIPPING

OCEAN CONTAINERS

Temperature control20’*, 40’

Standard width: 8’Standard height: 8,5’

Charge:20’: 18 TM40’: 25 TM

. Charging limits can vary upon countries road rules.. Temperature around 4 degrees C.. Freezers around -10 degrees C.

* Available on certain corridors only

CONTENEURS MARITIMES

Platform

20’, 40’

Standard width: 8’Standard height: 8,5’

Charge:20’: 18 TM40’: 25 TM

. Loading limits can vary upon road rules in countries.

OCEAN CONTAINERS

TANKER 20’

* Available on certain corridors only

WASHED CONTAINERS ISO + LOAD INFOS

HOW TO MAXIMIZE THE LOADING OF YOUR CARGO?

Domains of Maritime Circulation

Copyright © 1998-2009, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.

Yangtze

Mekong

Danube

Amazon

MississippiHuang He

Xi Jiang

RhineSt. Lawrence

SuezHormuz

Panama

Malacca

Bosporus

Magellan

Good Hope

Gibraltar

Bab el-Mandab

World’s Largest Maritime Container Shipping Operators, 2007

Operator Market Share

Total Owned Chartered

TEU Ships TEU Ships TEU Ships

APM-Maersk 16.1% 1,874,502 524 975,054 184 899,448 340

MSC 10.5% 1,217,013 370 691,334 212 525,679 158

CMA CGM 7.4% 864,669 360 267,921 87 596,748 273

Evergreen 5.3% 618,458 175 376,331 107 242,127 68

Hapag-Lloyd

4.2% 487,283 139 247,831 60 239,452 79

China Shipping

3.8% 437,183 141 251,192 87 185,991 54

COSCO 3.6% 420,410 139 222,437 93 197,973 46

APL 3.4% 400,865 122 139,690 38 261,175 84

NYK 3.2% 375,949 125 229,333 48 146,616 77

OOCL 2.9% 343,228 81 195,759 34 147,469 47

Total Top 10 60.4% 7,039,560 2,276 3,596,882 950 3,442,678

1,226

Total Top 50 91.1% 10,310,241

3,936 5,134,563 1,652 5,475,678

2,284

MAERSK LINEhttp://www.maerskline.com/appmanager/

SAILING SCHEDULE: NY to South east Asia to Freemantle

NYC CHI HOU PDX SEA SFO LAX LAX SIN BKK PTK JAK FRE

Maersk 9507

09/20 09/20 09/20 09/25 09/25 09/27 09/27 10/01 10/18 10/21 10/25 10/28

Arthur 9517 09/27 09/27 09/27 09/29 09/29 10/04 10/04 10/08 10/29 10/25 11/04

Long 9511 10/04 10/04 10/04 10/09 10/09 10/11 10/11 10/15 11/01 11/04 11/08 11/11

Luna 9517 10/11 10/11 10/11 10/16 10/16 18/10 18/10 22/10 11/08 11/12 11/18

Axel 9519 10/18 10/18 10/18 10/23 10/23 10/25 10/25 10/29 11/15 11/18 11/22 11/25

ON LINE SAILING SCHEDULES

www.ports.com

PANAMAX and POST-PANAMAX

The Post-Panamax (or Overpanamax, Postpanamax) classified vessels have a larger capacity than the Panamax class, i.e. exceeding the dimensions to use the Panama Canal lock (écluses).• Prior to the 1990’s, the Panamax class was the main factor influencing

naval architecture for the size of vessels. • Changes happened due to increase in traffic and volumes of business

(Asia) to benefit from the economy of scale.• 2009-2010: Depression in the economy. Less vessels on the seas and less

vessels in construction in shipyards.

LOADING / UNLOADING AT PORT OF JAWAHARLAL, MUMBAI, India

OCEAN CARGO CALCULATION

FULL CONTAINERS:

The tare mass (weight) is the weight of an empty container. The payload is the weight of the cargo is it’s maximum gross

weight Maximum gross weight is the maximum weight including the

cargo

PALLETS:When the cargo is being loaded on pallets inside the container,

remember to include the size, weight and quantity of the pallet in the overall calculation.

CONTAINER LOADING / STUFFING

Stuffing Plan To avoid problems such as cargo overflow or wastage of space, it is essential for shippers to have a stuffing plan

before cargo is loaded into the container.

MeasurementGenerally speaking, a 20' container can hold as much as 26-28 cbm or 980-1,060 cu.ft., while a 40' can hold about 56-58 cbm or 1,980-2,110 cu.ft. and a 40’HC can hold 60-62cbm.

The actual loading Internal Capacity of a container depends not only on the dimensions of the carton boxes

but also on many other factors such as the packaging material and the competence and experience of the

stuffing personnel.

CONTAINER LOADING / STUFFING

WeightBesides the cargo's measurement, the stuffing plan should alsotake the weight into consideration. It is important to note thatin many countries the permissible weight limits for road and railtransportation are lower than the maximum payload a containercan afford.

CONTAINER LOADING / STUFFING

CONTAINER LOADING / STUFFING

INSIDE CONTAINER CALCULATION

CONTAINER LOADING

CONTAINER LOADING

WWW.CANADIANSAILINGS.CA

OCEAN RATING

OCEAN TARIFFS:

Steamship lines and NVOCC’s publish their rates in tariffs.Ocean rates are regulated and are lane specific (sometimes commodity, ex. fruits in South America).

So, they have less flexibility, officially.‘According to FMC: Offer equitable rates = same rate to all customers tendering the same commodity under similar circumstances’.• Tariffs, Rates are for FCL• For LCL, rates are determined using the volume of the freight.

It is fixed at the ‘discretion’ of the freight forwarder.

OCEAN PRICES

RATES LOCATION:From and to locations can be either a terminal (inland or a port), which is equal to Container yard or a location where the container is to be stuffed, which is equal to Store door.

CONTAINER YARD (CY):Port facility at which containers are accepted for loading onboard ships, and off-loaded containers are delivered to the consignees. Also called Marshalling yard.

OCEAN TRANSPORT RATES

Container ratingPOTENTIAL EXTRA FEES TO THE FREIGHT:

Origin fees:• Local transport origin to port• Terminal charges (THC) origin• Documentation charges• B.A.F. (fuel surcharge, caused by fluctuation)• C.A.F. (currency adjustment)• Security fees

Destination fees:• Terminal charges (THC) destination• Local transport from port to destination

ASKING FOR A QUOTE

Q. How to know if you are quoted the fair price for your movement?

A. Obtain quotes, minimum 2 or 3 to compare and choose.

Q. How to know if you are charged the quoted price for your movement?

A. Compare the invoice with the quote!

BE PRECISE: When contacting a freight / Ocean forwarder for a quotation, the information YOU are supplying are crucial. Why?

• A difference in size or in weight can have a large impact of final rate that will be charged.

• The forwarder does not see or touch your freight• They work with your information; if not precise, potential

problem.

QUOTE REQUEST

YOUR responsibility:Supply complete informations

FORWARDER’s responsibility:Supply detailed quote

AVOID to accept an ‘all included’ rate. Example: ‘It will be 1200$ + taxes’.

QUOTE REQUEST

AVOID ASSUMING by asking for a documented and complete quote:

REGULAR movements:Obtain minimum 3 quotations from forwarders Re-look at your rates regularly, maximum 3 monthsOCCASIONALs movements / Spot Quotes: Obtain minimum 3 quotations from forwardersQuotes need to be detailled (see attached)Compare, select forwarder and contact by phone + email Build an ‘Open shipments’ table for follow-ups (in your ERP or

Excel sheet)

QUOTE REQUEST EXAMPLE 1 of 2

QUOTE REQUEST EXAMPLE 2 of 2

QUOTE RESULT EXAMPLE 1 of 2

QUOTE RESULT EXAMPLE 2 of 2