Ports operations.

• Harbour: a geographical location where ships and vessels may moor and shelter. Within
harbours are ports

• Port: a town or city with access to navigable water that has one or more docks surrounded by a
natural or man-made harbour

• Dock: a facility along the water’s edge at which ships are loaded or unloaded

Types of ports

• Small port

• Large local port

• Large regional port

• Regional distribution centre

• Container port

• Military port

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Small port
• Worldwide, there are thousands of small ports serving local trade.

• Only small vessels can be accommodated.

• Limited infrastructure; basic amenities.

• These ports handle a mixture of cargoes, from containers, break-bulk cargo and shipments of
commodities in bulk and packaged form.

• Most vessels have own gear for loading and unloading cargo.

Large local port

• When volumes of cargo are higher, special investment becomes more economically viable.

• Specific bulk terminals are constructed as long as there is sufficient deep water.

• To allow access for what?

• Larger vessels
 • Quaysides are equipped with grab cranes, hard standing ‘apron spaces’ to stack cargo and rail,
and road access for trains and trucks.

Large local port In general bulk carriers of the size of range fromHandymax to Capesizeuse such
facilitiesBulk Carrier Fleet Specifications Handysize Handymax Panamax Capesize

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Large regional port

Ports handling high volumes of deep sea cargo require significant investment in specialised and
dedicated terminal facilities.

Unit loads such as pallets and containers are handled in sufficient volume to justify terminals with cargo
handling equipment such as gantry cranes, fork-lift trucks and storage space for unit load cargo in the
form of large, purpose-built warehouses and containers, using purpose-built container facilities.

• Large regional ports may also have access for a wide variety of vessels, with facilities for most
kinds of cargo vessels as well as Roll on Roll off [Ro-Ro] ferry operations.

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Regional distribution centre
• Regional ports can have a wider and more varied role as distribution centres for cargo shipped
deep sea in very large vessels, requiring distribution to smaller local ports or to inland centres.

• Significant investment in terminal facilities.

• Accommodate larger ships (>60000 DWT)

• This type of port, such as the ports of Rotterdam, Antwerp, Hong Kong or Singapore, comprise a
network of specialist terminals, each one dedicated to a specific cargo.

• These terminals allow for the trans-shipment of cargoes by sea, barge, rail and road, thus
facilitating hub-and-spoke international transport operations while accommodating a wider
range of vessels.

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Container port
• A container terminal is a facility where cargo containers are trans-shipped between different
transport vehicles, for onward transportation.

• The trans-shipment may be between container ships and land vehicles, for example trains or
trucks.

• In this case, the terminal is described as a maritime container terminal.

• Alternatively, the trans-shipment may be between land vehicles, typically between train and
truck, in which case the terminal is described as an inland container terminal.

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Military port
• A military port is a port which caters solely for military vessels or their support vessels.

• They are designated by robust perimeter fences and have a limited number of access points.

• There are tight controls over the entry and exit of both personnel and materials, and each port
is. governed by the national military authority, usually in the form of the national Ministry of
Defence (Naval Division).

Stevedores, (longshoreman)

Staff for loading and unload

Track the containers.

•
Ports competition.
Intra-port Competition

2 or more companies managing in the same port.

Inter-port Competition Within a Multi-port Gateway Region

• Proximity to the same major cities or industrial areas.

• Similar types of services and cargo handling capabilities.

• Same hinterland market

Inter-port Competition Within a Port Range

• Multiple stops along major international shipping routes.

• Ports compete for the same traffic but may not share the same hinterland.

Determinants of Port Competitiveness

• Supply Chain Approach

Viewing the port as a key node in a larger supply chain, rather than an isolated entity.

offering not just port services but also logistics and supply chain management services.

• Integration with logistics providers, warehouses, and distribution centers.

• Seamless transfer of goods from ship to shore to final destination.

• Physical Attributes vs Network Costs

The balance between the geographical and infrastructural advantages of a port versus the costs of
connecting to it.

Physical attraction: Natural deep harbors, modern equipment, and proximity to key markets.

Network Costs:
 1. Transportation Costs: Costs of moving goods to and from the port. This includes fuel costs,
labor, and tolls.

2. Transshipment Costs: Costs associated with transferring goods from one mode of transport to
another, such as from a ship to a truck or rail.

3. Administrative Costs: Costs of customs clearance, document processing, and other

administrative procedures that take place when goods are shipped through a port.

4. Time-related Costs: Delays due to congestion, slow customs procedures, or limited operating
hours can add to costs, often indirectly.

• Out-of-Pocket Costs and Generalized Logistics Costs

The direct expenses incurred by using the port services, and the broader costs related to logistics
and supply chain inefficiencies.

1. Port dues, terminal handling charges, and other direct fees.

2. Indirect costs like delays, inventory costs, and opportunity costs.

Elements of Competitive Advantage

• Inimitability: Unique features that are hard for competing ports to replicate.

Example: Singapore's deepwater harbor allows it to serve mega-ships that many other ports can't
accommodate.

• Durability: Long-lasting advantages that are not easily eroded by time or competition.

Example: The geographical location of the Port of Rotterdam makes it a natural gateway to Europe, a
feature that is timeless.

• Applicability: The extent to which the core competencies can be leveraged across different
market conditions and customer needs.

Example: A port's ability to handle both container and bulk cargo can make it more versatile and
resilient against market fluctuations.

Port Infrastructure and Investment

Significance of Dredging for Larger Vessels

• Dredging

• Adding more berths

 • Hinterland Connections: The Importance of Multi-Modal Links

Types vessels
Sizes and Types:

• Panamax: Named after the maximum permissible size for ships transiting the Panama Canal.
Typically, they can carry up to 5,000 twenty-foot equivalent units (TEUs).

• Post-Panamax: These are larger than the Panamax vessels and are designed to carry between
5,000 to 10,000 TEUs. They can't traverse the Panama Canal but are adept for other major
routes

• Ultra Large Container Vessels (ULCV): These behemoths can carry more than 10,000 TEUs, with
some even reaching capacities of 24,000 TEUs. They play a vital role in major trade routes
between Asia, Europe, and North America.

Importance in Global Trade:

• Economic Lifeline: Bulk carriers transport raw materials that fuel economies. Coal for power
plants, iron ore for steel manufacturing, and grains for global food supply largely depend on
bulk carriers.

• Flexibility: Their ability to carry a diverse range of bulk commodities provides flexibility in
trade, allowing nations to import or export various raw materials as required.

• Cost-Effective: Transporting goods in bulk is often more economical than other forms of
transport, especially for commodities like grain where large quantities need to be moved.

RO-RO Vessels

• Efficiency in Vehicle Transport: RoRo vessels have revolutionized the automobile industry by
enabling efficient and cost-effective international distribution of vehicles. The automotive
industry heavily relies on RoRo ships for transporting new cars, buses, and trucks across
continents.

• Versatility: Beyond just vehicles, RoRo vessels can carry any equipment or cargo that can be
wheeled, making them versatile assets in various trade scenarios.

• Reduction in Loading/Unloading Time: The ease of driving vehicles on and off means
significantly reduced port stay durations, translating to faster turnaround times and more
streamlined operations.

• Cost-Effective: Without the need for extensive port machinery and reduced manpower
requirements, RoRo operations often lead to savings in handling costs.
 • Specialized Trade Routes: With the growth of the global automobile industry, dedicated RoRo
trade routes have been established, enhancing trade relations between major vehicle-
producing nations and their target markets.

Importance in Global Trade & Economy:

• Tourism Boost: Cruise ships play a pivotal role in global tourism. Every port of call benefits
from the influx of tourists, who spend on local attractions, dining, shopping, and more.

• Local Employment: The arrival of cruise ships generates employment opportunities, from tour
guides and taxi drivers to local artisans and shopkeepers. Many ports have seen substantial
development due to regular cruise ship visits.

• Infrastructure Development: Ports that frequently host cruise ships often undergo
infrastructural advancements to accommodate the large vessels and the influx of tourists. This,
in turn, benefits the local community and can lead to increased trade opportunities.

Platform Supply Vessel

• PSV is designed for the supply of offshore oil and gas field equipment to offshore oil and gas
platforms

• There are various types of oilfield supply vessels in operation, such as:

• AHTS (Anchor Handling Towage & Supply Vessel);

• PSV (Platform Supply Vessel);

• DSV (Dive Support Vessel);

• Maintenance Vessel.

PSV (Platform Supply Vessel);

• Description: PSVs are primarily used for transporting goods, equipment, and crew to offshore
oil and gas platforms. They are designed with large cargo capacities and have advanced
systems to ensure stability and safety in the challenging offshore environment.

Key Functions

1. Cargo Transport: Carrying drilling mud, potable water, diesel fuel, chemicals, and raw
materials.

2. Specialized Delivery: Equipped with tanks for liquid cargo and open areas for bulky equipment.

3. Safety Operations: Some are equipped for firefighting and oil recovery operations.

AHTS (Anchor Handling Towage & Supply Vessel):

Description: AHTS vessels are multipurpose ships mainly designed for anchor handling operations,
towage, and supply functions for drilling rigs and platforms. They are robust and possess significant
bollard pull, enabling them to handle the weight of anchors for oil rigs and other tasks.

Key Functions:

1. Anchor handling: Maneuvering and setting anchors for drilling rigs.

2. Towage: Towing oil rigs or platforms to their location.

3. Supply Duties: Transporting necessary supplies and equipment to offshore sites.

4. Emergency Response: Capable of acting in emergency situations, like oil spill recovery or
firefighting.

Types of cargo

All Marine Cargo Packed General Cargo Unpacked Bulk Cargo Break Bulk Cargo Bags Barrels Drums • Pallets Boxes • Crates • Neo Bulk Cargo Lumber • Paper •
Steel Cars Trucks • Unitizised Cargo • • Container Liquid Bulk Petroleum Gasolin LNG Chemicals Juice Wine • • • Dry Bulk Coal Grain Iron ore Bauxit Cemen

Explosives: e.g., fireworks, ammunition.

Gases: e.g., propane, butane.

Flammable Liquids: e.g., petrol, diesel.

Flammable Solids: e.g., sodium, calcium.

Oxidizing Substances: e.g., hydrogen peroxide.

Toxic & Infectious Substances: e.g., cyanide, medical waste.

Radioactive Material: e.g., uranium, radium.

Corrosives: e.g., battery acid, caustic soda.

Miscellaneous Dangerous Goods: e.g., asbestos, dry ice.

IMDG Code

• IMDG (International Maritime Dangerous Goods) Code: Established by the International

Maritime Organization (IMO), the IMDG Code classifies and provides instructions for the
transport of hazardous materials by sea. It breaks down hazardous substances into nine primary
classes based on the type of danger they present. MADE BY IMO International Maritime
Organization
Port and Customs Authorities Roles and Procedures
Why Do We Have Customs at International Seaports?

1. Protection of National Borders: To safeguard the territorial integrity, ensuring that only legal
items and approved individuals cross the nation's frontiers.

2. Regulation and Revenue: Collection of duties and taxes on imported goods, which are a
significant source of revenue for many countries.

3. Trade Regulation: Enforcement of trade policies, which include various trade agreements,
quotas, and restrictions.

4. Public Safety and Security: Detection and prevention of illegal substances or contraband,
including drugs, weapons, and other harmful materials from entering.

5. 5. Economic Growth: Ensuring a balanced trade environment, thus encouraging international

trade and economic development.

6. 6. Implementation of International Agreements: Respecting global accords like the IMO FAL
Convention which seeks to streamline and simplify maritime procedures.

7. 7.Data Collection and Analysis: Gathering essential data on the movement of goods and people,
which helps in policy formulation and trade statistics.

Duties
1. Description: One of the primary roles of customs is to ensure that all applicable tariffs, taxes,
and duties on imported and exported goods are appropriately levied and collected.

2. Assessment: Customs officers determine the correct amount of duty based on the type, value,
and origin of the goods.

3. Collection: Ensuring timely payment of these duties by the importers or exporters.

4. Enforcement: Imposing penalties or fines for non-compliance or under-declaration.

Example: Charging a specific percentage as duty on luxury cars imported from a

particular country based on trade agreements and the vehicle's value.

Lloyd’s Register and Standards

Ship Classification:

• Description: At its heart, LR provides a classification service, where ships are designed, built, and
maintained to certain standards set by the society.
 Details:

• Surveying: LR's surveyors inspect vessels to ensure they are built and maintained according to
the society's rules.

• Certification: Vessels that meet LR standards are awarded a classification, which can influence
things like insurance premiums and the vessel's value.

Safety Management:

• Description: LR assists shipping companies in adhering to international safety standards, most

notably the International Safety Management (ISM) Code.

• Details:

• Auditing: LR conducts regular audits to ensure vessels and companies comply with safety
standards.

• Training: Provides training and insights into best practices to enhance maritime safety.

Environmental Protection:

• Description: Recognizing the critical role of the maritime industry in environmental sustainability,
LR provides services to minimize the environmental impact of ships.

• Details:

• Emission Controls: LR helps companies navigate complex emission control areas (ECAs)
regulations and reduce harmful emissions.

• Ballast and Waste Management: Provides guidance on best practices for handling and treating
ballast water and waste to protect marine ecosystems.

International Maritime organizations and Flags of Convenience

Four principal consequence s of choosing to register a ship for a ship owner.

1. Tax, company law and financial law. The company’s liability to pay tax and may impose regulations in
such areas as company organization, auditing of accounts etc.

2. Compliance with maritime safety conventions. The ship is subject to any safety regulations the state
has laid down for the construction and operation of ships. Registration under a flag that has ratified and
rigidly enforces the (SOLAS) Convention means complying with these standards.

3. Crewing and terms of employment. The company is subject to flag state regulations concerning the
selection of crew, their terms of employment and working conditions. Some flag states, for example,
insist on the employment of nationals.
4. Naval protection and political acceptability. Another reason for adopting a flag is to benefit from the
protection and acceptability of the flag state.

International Labor Organization(ILO)

The International Transport Workers Federation (ITF)

Shipping cycle
Trough: Oversupply of Ships

• In the trough phase, a notable feature is an excess of vessels compared to the demand for
shipping goods. This oversupply often stems from the previous boom phase where optimistic
expectations led to the over-ordering of new ships.

Low demand

• The demand for shipping services falls due to various reasons, including economic downturns,
trade restrictions, or reduced consumption. This diminished demand intensifies the problem of
the existing oversupply of ships.

Trough (Slump) - Causes & Impacts

Reduced Freight Rates

• Oversupply + low demand = sharp drop in freight rates.

• Example: Baltic Dry Index's historic lows during the 2000s signaled sharp demand drops and
oversupply.

Economic Downturns

• Recessions cause reduced shipping demand as consumption and production decrease.

• Example: 2008's global recession led to a sharp decline in shipping needs.

Geopolitical Events

• Wars, unrest, and embargoes can disrupt or lessen demand for specific shipping routes/regions.

Recovery - Shifting Tides in Maritime Trade

Balancing of Supply-Demand:

• As the market stabilizes, there's a reduction in oversupply issues, and freight rates begin to rise,
although cautiously.

Cautious Market Optimism

• With recovery signs, investors and stakeholders start regaining confidence but still remain wary
of potential downturns.
Peak (Boom) - The Golden Era of Maritime Trade:

Flourishing Trade

• Trade volumes hit their peak with ports bustling and ships operating close to full capacity.

Skyrocketing Freight Rates

• Demand outstrips supply, leading to a substantial rise in freight rates, translating to increased
revenue for shipowners.

• Increased Ship Orders

• Optimism drives more orders for new ships, often larger and more advanced, anticipating future
demand.

• Many shipping companies placing orders for “mega-ships” or very large ore carriers during this
period, expecting the boom to sustain.

• Rapid Industrial Growth

• Industries, especially in emerging economies, expand rapidly, requiring more raw materials and
fueling the shipping demand.

• Increased Global Demand

• Consumers and industries worldwide increase their consumption, be it for finished goods or raw
materials.

Collapse:

Sudden Oversupply

• The industry faces an acute oversupply of ships as new vessels ordered during the boom phase
begin to be delivered.

Plummeting Rates

• With an oversaturated market and more ships than cargoes, freight rates take a steep dive.

Economic Shocks

• Economic downturns or crises can exacerbate the collapse by further reducing trade volumes.
The shipping cycle summary

Impact on the Shipping Industry - The Ripple Effect:

Employment Implications

• The shipping cycle stages determine employment trends both in shipyards and onboard vessels.

• During a peak, there's an uptick in shipbuilding orders, leading to more jobs in shipyards.

Fuel Price Oscillations

• The demand for maritime transport has a direct influence on bunker fuel prices.

Port Traffic Variability

• The amount of goods being transported affects how busy ports are, impacting the broader
logistical chain.

Significance of the Shipping Cycle:

• Predicting market trends.

• Planning for investments (shipbuilding or chartering).

• Setting long-term and short-term strategies.

• Anticipating challenges in supply chain management.

Planning for Investments (shipbuilding or chartering):

• The shipping cycle heavily influences investment decisions. During a boom, it might seem
enticing to invest in building more ships due to high demand, but if the cycle is nearing its peak,
it could lead to oversupply when the collapse phase hits.

Setting Long-term and Short-term Strategies:

• The shipping cycle dictates both immediate actions and future planning.

Anticipating Challenges in Supply Chain Management:

• Each phase of the shipping cycle presents unique supply chain challenges. For instance, during a
boom, ports might face congestion due to high traffic, while during a slump, there might be an
oversupply of ships with fewer cargoes.