Welcome to Shipping Guide

The intention of this e-book is not only to create professionalism among shipping executives , but also for the guidance of all persons who are involved in shipping and those who are interested to know shipping. Though this book is designed as a reference book it can be used as a text book and the author assumes that the majority of the readers of this book, certainly can gain more knowledge of shipping. This single volume edition incorporates all the subjects, provides a comprehensive cover to the needs of shipping executives globally with the words and terms that are or have been used in shipping industry in connection with their work

This e-book consist of twelve chapters which covers International trading & commerce, Geography, Ship & ship management practice, Cargo, Port & Harbour, Chartering Practice, Container, Logistics & Supply Chain, Agency, Marine Insurance and Claims, and Indian Shipping and practices being followed. It will give the learner a very fair idea and knowledge of the wide range of subjects which are involved in shipping industry globally and in India.



The author N .Sam Densingh Jayaraj is popularly known as Sam or Jayaraj in shipping  circles both in  the domestic and overseas markets. He made his career in shipping after his college studies and with a Diploma in Business Administration, ventured into shipping at a very early age. He started with  vessel operation work for most types of vessel such as coastal, tanker, bulker, cruise, container, general/heavy-lift/project cargo, multi-purpose, Roll-on & Roll-off ships and more. He has served in various capacities as the head of operations/branch manager and general manager in a few of the reputed multinational shipping companies/lines and hence has vast experience in shipping logistic work.  He continues to be in touch with the shipping market both tramp and liner while keeping abreast with the latest developments in the industry. He is also a resource person for various institutions that impart knowledge to students of shipping and logistics.


Author's preface

I am anxious to make it clear that this shipping guide for beginners is intended as a help to beginners. I do not profess to teach those who may be already experienced in shipping . I feel my present work of compiled single edition of shipping guide to beginners is an attempt and certainly will be useful to those who start in entire ignorance of shipping subject. Such a work presents some difficulties and is therefore naturally open to criticism. I sincerely hope that this compiled edition will be sufficient to meet the needs of those first encountering into shipping venture, either in person or in literature, while others already familiar with shipping matters, may find interest in the description of things no longer often encountered - N.Sam Densingh Jayaraj


Self Evaluation

 1  Name of boarding officer is written by board clerk at the time of boarding the vessel in
 Stores List    Crew list    Shipping journal 
 2  The owner of a ship can choose not to operate his ship himself but to entrust this to a third person or company. The person who hires a ship or several ships in bareboat charter or in time charter is called. ..
 Managing owner   Registered owner    Disponent Owner   Beneficial owner 
 3  The time it takes between the arrival of a vessel and its departure from port; frequently used as a measure of port efficiency is called
 Waiting time   Turnaround time    Streaming time 
 4  An indemnity issued to the carrier by a bank; protects the carrier against any possible losses or damages arising from release of the merchandise to the receiving party. This instrument is usually issued when the bill of lading is lost or is not available is called
 Bank Guarantee   Steamship Guarantee  

Chapter I - International Trade and Commerce

International Trade and CommerceThis chapter outlines the main drivers of shipping business and lays the road-map to the study of shipping business, as it gives comprehensive knowledge on International Trade and Commerce, the terminology used in business economics, banking and computer language along with glossary of terms. A detailed explanation on terms of sale, methods of payments, Letters of Credit are dealt with illustrations for easy understanding, followed by the procedure for air, sea, containerized cargo, bulk cargo shipment are included with illustrations and flow charts. A step by step procedure for setting up an export/import business in India is also included.

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Chapter II - Geography

GeographyThis chapter deals with our planet earth and the geographic features namely atmosphere, land,ocean, sea, straits, gulf, bays, canals and country-wise profile. Definitions of hydrography and oceanography, atmospheric and weather conditions, ocean and wind currents, natural phenomenon such as storm, typhoon, cyclone formation. Classification of water bodies like oceans, seas, territorial sea,internal waters, exclusive economic zone, contiguous zone are explained with diagram., the meaning of Beaufort windscale, high tide, low tide & neap tide are explained. Country profile such as geographical location, economy, government type, natural resources, harbour, port & terminals, country’s foreign trade details are given along with country map.

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Chapter III - Ship

ShipThis chapter will give a greater insight to the readers about ships and its working as clear description various types of ships are given like sailing ship, steamship, paddle-wheel ship, modern ship and so on. A brief explanation on ship design followed by a step-by-step process of modern ship construction, ships’ parts, tonnage measurement, cargo ships’ terminology. Principal shipping organizations and Classification Societies are detailed in this chapter. Definitionfor portside, starboard side, Pilmsoll (Loadline) Line, summer draft, free board types of propulsion, bunker fuels are explained with diagram.Deadweight calculation table with example of draught calculation is given in detail specially used in break-bulk vessel.

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Chapter IV - Ship Management Practice

Ship Management PracticeThis chapter starts with Ship Management flowchart that covers proforma budget estimate, functional organisational chart, ship’s life chart. shipping finance, system of ship registration and registration formalities of various countries, process of survey certificate - hull and machinery and other onboard equipments for safety of crew, cargo and passenger. Ownership and control of ship, the practice of flag of convenience adopted by ship owners. International Maritime Organization (IMO) number system is detailed in this chapter. Efficient and safe-ship management procedure, crew recruitment, different types of charters and ship management practices are explained. Sale and purchase of ship, Seafarers, Role of Ship’s Master and crew are detailed in this chapter.

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Chapter V - Cargo

CargoThis chapter explains the different type of cargo, stowage factor and other cargo related information. Detailed workings with examples of cargo weight/volume calculation are covered in this chapter. Properties and characteristic of different types of cargo, loading and unloading methods, vessel stowage plan are given in detail. Broken-stowage calculation is explained with examples. Chart of classification of cargo, dry, dangerous and refrigerated cargo is explained. Pictures and diagrams of bulk, general and Roll-on Roll-off cargo operations, cargo documents such as Mates’ Receipt and Bills of Lading are explained in detail.

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Chapter VI - Harbour & Port

Harbour & PortThe difference between natural and artificial harbours, detailed layout of harbour, port and terminal are explained in this chapter. Detailed definitions on certain terms such as breakwater, channel, berth , dock, port infrastructure, superstructure are given. Cargo handling equipment details are explained with pictures. Mooring arrangements for ships are explained with diagrams, quay & wharf cranes, cargo handling tackles, runner wires will help the students to understand the massive task of berthing a ship alongside the wharf. Lashing of general cargo and handling of dangerous cargo are explained in detail. Definition of Public Private Participation & concession agreement are given in a nutshell.

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Chapter VII - Chartering Practice

Chartering PracticeBasic principles of chartering, freight market, freight calculation, different types of charter – time, voyage and bareboat charter, terms & conditions of such charter party agreements, lay time calculation, charter terminology are explained in detail. Documentation - Chartering forms and freight calculation. The flow of information essential for successful performance of a charter. The types of charter markets such as bulk cargo dry/wet, general cargo, gas, container, pure car carrier, Roll-on Ro-off, liner, combos, reefer, passenger, small ship, coastal and sale & purchase charter markets are explained. Information network and exchange with examples of cargo, ship offers, freight negotiations, roles of freight brokers, charter-party, sale & purchase brokers are covered in this chapter..

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Chapter VIII - Container

ContainerThe era of containerization, container revolution - advantages and disadvantages of containerisation Definition of shipping container, different types of international containers, 20ft/40ft standard and high cube, the parts of container and dimensions are explained in detail with diagram. Special containers such as open top, platform, tank, flatrack and refrigerated(reefer) are explainedwith temperature maintenance and control systems. Container shipping routes, transhipment, containerisation of inland transport system, unimodal, intermodal & multimodal transportation, micro land-bridge, mini-land bridge are explained with diagrams for better understanding. Details of container leasing companies with different types of container leasing are briefly explained with terminology used.

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Chapter IX - Logistics & Supply Chain

Logistics & Supply ChainIn this chapter the concept of total transportation solutions are discussed, definition of logistics, supply-chain, cold-chain are covered. Explanations on third and fourth party logistics, multimodal transport, warehousing, distribution, reverse logistics methods being followed by service providers. Deciding on which mode of transport to use, value added services, warehouse management methods are explained. Movement of cargo by air, different types of containers used in air shipments called Unit Load Device, sea-air shipments, air sea classification logistics are given with diagram. Preparation of quotation, selection of modes of transport, mobilising equipment, manpower and to maximise profitability by applying cost control are explained.

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Chapter X - Agency

AgencyDefinition of Tramp & Liner agencies, role of agents, code of conduct for shipping agents, agency organization charts, roles and responsibilities of managers, executives and operations & documentation staff are explained in this chapter. Diagrams with explanation of shipping company structure, chain of charter parties, definition of head owners, disponent owners are given. Out-turn problem, lien on cargo, coverage of protection &Indemnity Club and Chartered Institute of Transport, modes of communication, global communication network,master-agent relationship and steamer agency activities are explained in detail.

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Chapter XI - Marine Insurance and Claims

Marine Insurance and ClaimsThis chapter explains general terms of marine insurance and claims, cargo claims, loss prevention, general average and particular average, casualty and claims related to cargo owners’ legal liability insurance. Charterers’ liability insurance and covers, claims handling procedure, different types of surveys such as load line survey, Classification Society surveys, Protection &Indemnity Club surveys, Mates’ Receipt & Bills of Lading Clauses, mis-declaration of cargo, deck cargo, paper claims, perils of sea, Pre & ante dated bills of lading , short landing of cargo, Customs fines and penalties on such instances and valuation of sums insured are explained.

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Chapter XII - Indian Shipping and Practices

Indian Shipping and PracticesThis chapter is devoted to Indian Shipping industry, infrastructure such as road, rail, ports and waterways, ship-acquisition procedure in India, Shipping Ministry’s organisation chart, major, intermediate ports, container terminals with details of Indian Customs, Immigration, Port Health and other relevant information. Procedure for setting up of steamer agency office, agents’ duties and responsibilities, Port Community System, Customs ICEGATE an Indian Customs Electronic Commerce/Electronic Data interchange (EC/EDI) Gateway, pre-arrival, boarding, cargo operation, sailing procedures, crew change procedure and all relevant details that is required by the shipping agents are given in detail which will be useful for Indian shipping business in general.

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Shipping owner Malcom McLean worked with engineer Keith Tantlinger to develop the modern intermodal container. ISO standards for containers were published between 1968 and 1970 by the International Maritime Organization. These standards allow for more consistent loading, transporting, and unloading of goods in ports throughout the world, allowing for saved time and resources

Like the black boxes carried on aircraft, Voyage Data Recorders  (VDRs) are carried in all passenger ships and Ships of 3000 gross tonnage and upwards constructed on or after 1 July 2002  to assist in accident investigations, under regulations adopted in 2000, which entered into force on 1 July 2002.