There are several modes of international shipping, what are they?

May 14, 2023

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1. Liner Shipping
The ship transports goods along a fixed route, through a fixed port, according to a fixed schedule announced in advance, and charges freight at a rate announced in advance. The carrier is responsible for the loading and unloading of the goods, and the freight has already included the loading and unloading costs of the goods. The carrier and the shipper do not count the demurrage and dispatch charges. Due to the timing, route, port and pricing, the uncertainty of liner shipping is relatively small. In order to ensure the shipping schedule, the liner ships are generally well-equipped and in good condition. The wharves where the liner stops have their own dedicated wharfs, and the quality of freight is guaranteed. The goods are generally small-value trade goods, and now most of them are containers as the transport unit, and the bill of lading is the main transport document.
2. Chartered transportation
Chartered shipping is also called tramp shipping. There is no scheduled shipping schedule, route, or port. The ship completes the transportation service according to the terms stipulated in the charter contract signed by the charterer and the shipowner. According to the agreement, the shipowner leases the ship to the charterer to complete specific cargo tasks and collect freight according to the agreed freight rate. The goods transported by chartered ships are mainly low-value bulk goods, such as coal, ore, grain, fertilizer, cement, timber, petroleum, etc. Generally, it is shipped on a whole ship with a large volume. The volume of chartered shipping accounts for about 80% of the total maritime cargo volume. The freight rate is relatively low, and the freight rate fluctuates with changes in market conditions. There are three main types of chartering: voyage charter, time charter and bareboat charter:
1) Voyage charter
Voyage charter, also known as voyage charter, is a charter method based on voyage. Under this chartering method, the ship must complete the cargo transportation service according to the voyage stipulated in the charter contract, and is responsible for the operation and management of the ship and all expenses incurred during the voyage, and the charterer pays the freight as agreed. The voyage charter contract stipulates the loading and unloading period or loading and unloading rate, and calculates demurrage and dispatch. Voyage chartering can be divided into one-way chartering, round-trip chartering, continuous voyage chartering, voyage time chartering and contract of affreightment chartering:
a) One way charter
One-way chartering is also called single-voyage chartering, that is, the chartered ship only ships for one voyage, and the chartering contract is terminated when the voyage ends. The freight is negotiated by both parties according to the charter market conditions, and its calculation method is generally calculated by multiplying the freight rate by the loading or unloading quantity or calculating the whole ship lump sum freight.
b) Round trip charter
Round-trip chartering is also called round-trip voyage chartering, that is, the chartering contract stipulates that after completing a voyage task, a return cargo is shipped, and sometimes the freight is calculated separately according to the difference between the round-trip cargo.
c) Continuous voyage charter
That is, several consecutive voyages are shipped on the same route. Often, when the cargo volume is large and cannot be transported in one voyage, this kind of chartering method can be adopted. In this case, the average voyage ship rent is lower than that of a single voyage.
d) Voyage time charter
Voyage time charter is also called time charter voyage charter. The lease of ships adopts the method of voyage charter, but the rent is calculated based on the time (days) required for the voyage. This kind of chartering method does not include demurrage and dispatch costs, and the ship is not responsible for the operation and management of cargo transportation.
e) Contract of affreightment charter
The shipowner sends a number of ships to transport a large number of goods from one port to another port under the same charter conditions within the agreed time limit. The number of voyages is not specified, and the contract is for the goods to be shipped. This kind of chartering method can reduce the pressure of chartering the ship. For the shipowner, it is more flexible in operation. It can use its own ship to carry the cargo, or rent other ships to complete the specified cargo tasks; it can use one ship multiple times. For round-trip transportation, several ships can also be used for simultaneous transportation. Goods transported under a contract of affreightment are usually bulky low-value bulk cargo.
2) Time Charter
Time charter, short for time charter, refers to the way of chartering a ship based on the lease term. During the charter period, the charterer pays the rent as agreed to obtain the right to use the ship, and is also responsible for the dispatch and operation management of the ship. The time charter rent is generally stipulated to be calculated by a certain amount per month per deadweight ton of the ship. The lease period can be long or short, ranging from a few months to more than five years, even until the ship is scrapped. The object of the time charter is the whole ship, which does not specify the route and port of call of the ship, but only the scope of the navigation area. Therefore, the charterer can choose the route and port of call according to the cargo needs, which is convenient for the use and operation of the ship. The time charter does not have specific regulations on the cargo shipped by the ship, and any suitable cargo can be selected; the charterer has the right to dispatch the ship and is responsible for the operation of the ship, paying for marine fuel, various port fees, taxes, cargo loading and unloading, etc. There is no demurrage clause.
3) Bareboat charter
Bareboat chartering is also a kind of time chartering. The difference is that the shipowner does not provide crew, but only an empty ship is handed over to the charterer. The charterer is responsible for the operation, management and navigation of the ship. For the shipowner, it is generally not safe to hand over the ship to the charterer; for the charterer, the work of hiring and managing crew is very complicated, and the charterer seldom adopts this method. Therefore, bareboat chartering is rarely used in the chartering market.

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