Commercial Shipping M06

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Commercial Shipping (M06)

• Learning objectives
• Describe the characteristics of bulk shipping
• Explain how bulk shipping developed, particularly
  in terms of the key historical and economic
  forces that have shaped this sector of the
  industry
• Discuss the major characteristics of dry bulk
  shipping operations
• Discuss current trends and issues in the tanker
  industry and evaluate the industrys future
  prospects
• Discuss the current regulatory systems for the
  prevention of marine pollution from tankers

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Commercial Shipping (M06)

• Bulk shipping
• Dry bulk
• Development of dry bulking shipping
• Dry bulk carriers
• Tankers
• Crude oil tankers
• Products tankers
• Chemical tankers
• Gas tankers
• Combination carriers

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Commercial Shipping (M06)

• World seaborne trade -- bulk (2006)
• Wet bulk
• Crude oil 2 billion tons Petroleum products
  0.67 billion tons
• In terms of ton-mile
• Crude oil 9516 petroleum products 2635
  12151 billions of ton-mile
• Dry bulk
• Iron ore 716m, coal 728m, grain 281m,
  bauxite/alumina 72m, rock phosphate 31m,
• In terms of ton-mile
• Five main dry bulk (iron ore, coal, grain,
  bauxite/alumina, and rock phosphate) 9341
  billions of ton-mile

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Commercial Shipping (M06)

• Bulk shipping
• Trends in bulk carriers
• larger size tankers for carriage of crude oil
• design features that reduce pollution of the
  ocean by the bulk cargo
• large scale development of specialised carriers
  such as liquefied natural gas (LNG ships)

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Commercial Shipping (M06)

• World bulk fleet (in thousands of dwt)
• Deliveries of new ship in 2006
• Oil tankers 24.7 m dwt, 322 ships, average
  size of 76,578 dwt
• Dry bulk carriers 25.2 m dwt, 310 ships,
  average size of 81,260 dwt

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Commercial Shipping (M06)

• Development of dry bulk shipping
• Early bulk shipping (using general cargo ships)
  prior to 1960s
• In the 1960s a number of factors produced the
  impetus that led to the present day bulk carrier
• Costs of handling cargoes rose, leading to more
  intensive capital investment.
• Economies (Japan, Germany and USA) increased
  rapidly, leading to a corresponding increase in
  demand for raw materials.
• New ports and the deepening of old ports,
  especially in Japan, Europe and exporting
  countries like Australia and Brazil, enabled
  larger ships to be handled.
• Unitisation of general cargo led to the
  specialisation of ships and handling facilities,
  making obsolete a large percentage of the
  traditional general cargo fleet.

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Commercial Shipping (M06)

• World Iron ore trade

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Commercial Shipping (M06)

• World steel trade (production 1.24 bt,
  consumption 1.113 bt, 2006)

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Commercial Shipping (M06)

• Dry bulk carriers
• Bulk carriers vary greatly in size and level of
  sophistication (up to 250,000 dwt), gearless vs.
  sophisticated gears
• Key features
• single-deck ships with a double bottom, vertical
  cargo access through hatches in the weatherdeck
  with a speed of 13 to 16 knots
• large cubic capacity, ease of access to the
  holds, and cargo handling gears
• self-trimming holds the topside wing tanks are
  sloped so that granular cargoes can be loaded by
  gravity without having to trim the cargo out into
  the wings of the hold

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Commercial Shipping (M06)
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Commercial Shipping (M06)

• Dry bulk carriers
• A large proportion of bulk carriers do not need
  to carry cargo-handling equipment because they
  trade between special terminals which have
  particular equipment for loading and unloading
  bulk commodities.
• Cargo handling gear is normally fitted to smaller
  bulk carriers since they are more likely to
  operate into ports with inadequate shore based
  facilities. Cargo handling gear does increase the
  flexibility of a vessel, though, and for this
  reason it is sometimes fitted even to larger
  vessels.

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Commercial Shipping (M06)

• 35,000 dwt bulk carrier

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Commercial Shipping (M06)

• 66,000 dwt Panamax bulk carrier

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Commercial Shipping (M06)

• Dry bulk carrier
• The size of dry bulk carriers will depend more or
  less on a trade-off between three factors
• economies of scale
• the parcel sizes in which cargo is available
• available port draught and cargo handling
  facilities
• Unlike the oil tanker, a bulk carrier must enter
  a port to be loaded or unloaded.

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Commercial Shipping (M06)

• Three main bulk carrier sizes
• Handy size
• 10,000 to 35,000 dwt, or Handymax 35,000 to
  50,000 dwt
• flexible in trades where parcel size and draft
  restrictions demand small ships (at 10 metres
  draught, they are capable of entering most ports)
  
• carry minor bulks and smaller parcels of major
  bulks
• old ships (70 of the fleet is over 15 years old)
• shrinking fleet as whole is shrinking (in 2000,
  there were 2457 ships between 10,000 and 35,000
  dwt and 1327 ships between 35,000 and 50,000 dwt)

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Commercial Shipping (M06)

• Three main bulk carrier sizes
• Panamax
• 55,000 70,000 dwt (a beam of 32 metres to be
  able to cross the Panama Canal)
• most panamaxes are gearless (panamaxes with 25
  ton gear have a niche market)
• carry five major dry bulk cargoes, and the larger
  minor bulk parcels
• increasing in number of ships (1016 panamax ships
  with a capacity of 68.5 million dwt in 2000)

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Commercial Shipping (M06)

• Three main bulk carrier sizes
• Capesize
• 100,000 to 300,000 dwt
• gearless
• carry iron ore and coal trades for long hauls

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Commercial Shipping (M06)

• Operation of bulk carriers
• Substantial cost savings are achieved by using
  larger vessels. However, the use of big ships is
  not always possible and they face two important
  restrictions
• the maximum size of delivery that an industry is
  able or willing to accept at any one time (costs
  involved in inventory etc.)
• the constraint on ship size imposed by port
  draught (or by canals)

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Commercial Shipping (M06)

• Operation of bulk carriers
• Trade-specific issues can have great impacts on
  dry bulk market, therefore operations of bulk
  carriers.
• Natural factors such as drought in Australia can
  have strong effects on grain trade therefore bulk
  shipping.
• Changing trade patterns (length of shipping legs)

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Commercial Shipping (M06)
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Commercial Shipping (M06)

• World crude oil trade

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Commercial Shipping (M06)

• Tankers
• oil tankers
• crude oil
• products tankers
• chemical tankers
• gas tankers
• LNG (liquefied natural gas)
• LPG (liquefied petroleum gas).

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Commercial Shipping (M06)

• Oil tanker groups
• Oil tankers can be divided into different groups
  according to size and usage
• handy (1050,000 dwt)
• panamax (5070,000 dwt)
• aframax (70-100,000 dwt) The Aframax class
  tanker is largely used in the basins of the Black
  Sea, the North Sea, the Caribbean Sea, the China
  Sea and the Mediterranean.
• suezmax (100200,000 dwt)
• VLCC (200-300,000 dwt)
• ULCC (over 300,000 dwt)

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Commercial Shipping (M06)

• Typical oil tanker

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Commercial Shipping (M06)

• Crude oil tankers
• From the oil wells in producing countries to
  refineries elsewhere in the world.
• Loaded on board in its original condition without
  any treatment.
• It is common that crude oil carriers only call at
  offshore loading/discharging facilities
• Product tankers
• Product tankers carry oil that has been refined
  (range from black oil and diesel to the other end
  of the range aviation gasoline). Size is
  normally less than 50,000 dwt.
• Clean product tankers require special coatings to
  protect the steel from the oils corrosive
  effects.
• Dirty product tankers, transporting denser
  products, are equipped with heating equipment, or
  heating coils, to keep the product less viscous.

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Commercial Shipping (M06)
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Commercial Shipping (M06)

• Chemical tankers
• Specially designed and built to carry a variety
  of liquid cargoes
• Much smaller in size than oil tankers due to
  small parcels of cargo available
• Chemical tankers generally have a number of
  tanks, each with its own piping which makes each
  cargo self-sustaining
• Extremely complex and expensive to build.
• International regulation on the carriage of
  dangerous chemicals
• The Code for the Construction and Equipment of
  Ships Carrying Dangerous Chemicals in Bulk (BCH
  Code) came into force in 1972 and was applied on
  a voluntary basis by various conscientious
  governments such as the U.K., U.S.A., Japan,
  Germany and France.
• International Code for the Construction and
  Equipment of Ships Carrying Dangerous Chemicals
  in Bulk (IBC code) was drafted as an amendment to
  SOLAS 1974.
• MARPOL Annex II entered into force in 1987 and
  consequently, is applicable to all vessels.

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Commercial Shipping (M06)

• World LNG trade (2,865.3 billion cubic metres)

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Commercial Shipping (M06)

• Gas tankers
• The two main types of gas tankers used are
  liquefied natural gas (LNG) tankers and liquefied
  petroleum gas (LPG) tankers. Carriage of gas
  involves both pressure and refrigerated
  transportation. A separate inner tank is usually
  employed to contain the liquid and this tank is
  supported by the outer hull which has a double
  bottom.
• LNG tankers carry methane and other paraffin
  products obtained as a by-product of petroleum
  drilling operations. The gas is carried at
  atmospheric pressure and at temperatures as low
  as -164C in tanks of special materials which can
  tolerate the low temperature.
• LPG tankers are employed in carrying liquefied
  petroleum gases (propane, butane, propane/butane
  mix) which are extracted from natural gas.

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Commercial Shipping (M06)

• Combination carriers
• With all specialised cargo carriers, there is
  always a possibility that after discharging its
  cargo, the vessel might spend 50 percent of its
  employment empty as it ballasts to another area
  to pick up another cargo.
• Combination carriers are bulk carriers designed
  for flexibility of operation and able to
  transport any one of several bulk cargoes on any
  one voyage e.g. ore or crude oil or any dry and
  liquid bulk cargo.
• To give greater-flexibility, oil/bulk/ore
  carriers (often referred to as OBOs or combined
  carriers) are designed to carry a full cargo of
  dry bulk such as ore, coal, grain or phosphates,
  or a liquid cargo such as crude oil.

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Commercial Shipping (M06)