Commercial training course

The sole purpose of merchant shipping is the carriage of cargo, liquid, solid, passengers, from the place that it was mined, grown or manufactured, to the place that it is required. Normally the owner of the cargo does not own transport and therefore he needs to enlist the services of a company that would be willing to carry the cargo for him.

This course provides details related to the Commercial Aspects of Shipping that affect the carriage of cargoes and identifies areas where personnel onboard may require assistance in dealing with the commercial aspects of its carriage.

AIM

The Aim of this course is to provide a structured view of the commercial activities that affect all personnel involved in ship operations.

OBJECTIVES

The course will make the participant:

aware of the methods of acquiring a ship or space to carry cargo
understand the statutory controls imposed by international authorities, flag and port states that effect the operation of a ship
identify the different kinds of contracts used in the carriage of cargo

The INTRODUCTION provides general information on the types of carriers and their relationship with the cargo owner. It also outlines the role of the Ship Managers and the various components of the Shipping Industry. Finally this section looks at the importance of Marketing in the industry.

SHIP ACQUISITION provides details of the Shipowner, Ship management and the Management Structure. It also gives a broad introduction to Hiring Space in a ship through Charterparties etc.

THE STRUCTURE OF SHIPPING identifies the Personnel and Organisations involved in the shipping industry. It discusses the major participants including Ship Interests, Shipping Line, the Carrier, Cargo Interest and the Shipper and Charterer. In addition it defines the “surveyor” and explains the role of the Independent Surveyor, Classification Societies and the International Association of Classification Societies (IACS).

INTERNATIONAL REGULATORY FRAMEWORK explains the relationship of Flag, including the Open Registers and some outline information on Jurisdiction and the Flag State/Port State relationship.

MARITIME LEGISLATION is an overall discussion of the main areas of International Conventions that affect shipping, these include SOLAS, Loadline, Tonnage, Minimum Standards ILO 147, STCW and the Environment through MARPOL. The International Safety Management (ISM) Code is explained in detail to ensure all participants are knowledgeable of it.

PORT STATE CONTROL provides information on how the maritime legislation is used by various countries to enforce better standards on vessels trading to their ports. This includes the USCG Port State Control Initiative, Australia’s Sub-standard ship program and the Paris Memorandum.

The need for good COMMUNICATIONS & REPORTS show how all personnel can affect the viability of a shipping company.

COST explain the importance of onboard personnel in relationship to the ship’s financial operation, emphasis being placed on the need to report actions and to asked questions.

The different type of Maritime Trade are discussed in CARGO OPERATIONS. Differentiating between Liner Service and Tramp Operations. A Voyage Diagram showing the optimum calculations being made provides an exercise in the Course. Under this section the various types of Contracts used is explained.

FIXING A CARGO outlines the role of exchanges, brokers and the New Worldscale Rate.

Contracts are detailed in CONTRACTS OF CARRIAGE, this defines the role of Bill of Lading, both under International Law and National Law. With reference to Hague, Hague Visby Rules and Hamburg Rules and the onboard participation required.

CHARTERPARTIES details the different types of C/P in operation today and discusses the difference between them with reference to delay, costs and other factors.

OPERATING COSTS are defined with relation to the Demise Charterparty, Time Charterparty and Voyage Charterparty, with the various items being allocated in an exercise - Choice of Charter.

MARITIME INSURANCE outlines the various areas of recompense that is available to a shipowner, this includes, Marine Insurance, General Average and P&I. Detailed practical information is provided on Institute Clauses, York-Antwerp Rules and Protection and Indemnity.

LIABILITY is a specialised area the explains to participant the role of limiting liability and its importance to the ship owner. This includes reference to International Conventions and covers liability such as Damage by ship, Collision/Loss of ship, Injury to Crew, Cargo Loss or Damage and, of course Pollution. Pollution liability relates to Oil Tankers and Non-Tankers and to oil and non-oil Pollution. Reference is made to OPA90.

Finally the course addresses some lesser known areas of the Commercial Aspects of Shipping, these include LIEN, SALVAGE and PROTEST.

Though the time for this course is limited and provides a general view, it is possible and desirable that a Company’s own specific information be included and if an owner/manager has an important message or incident to have discussed it is a good opportunity to provide information.

v.3 2/2006