WATER / SEA

TRANSPORT
Introduction
 First principal form of long distance freight and people
transport
 Most of the early civilizations lived near to the water or beach
sides.
 The cities developed along the Ports/harbors on seacoasts,
lakes and rivers.
 Ports/harbors cities – Istanbul, Naples, Lisbon, Rotterdam,
Hamburg, Oslo,
 Atlantic Coasts of US – Boston, New York, Philadelphia, Baltimore
 Pacific coasts - Seattle, San Francisco, Lost Angeles and San Diego
 Harbor cities on lakes – Zurich, Chicago, Detroit, and Toronto
 River cities – Brisbane, Kuala Lumpur
3
Introduction
 Important contributor to early U.S. and other countries
economic and social development
 Linked initial population/industrial concentrations along
coast and rivers
 Presently there are 26,000 navigable kilometers of
waterways in the U.S.
 Waterways are natural ways; motive power (current and
wind) provided by nature
 Public expenditure for improvements occasionally necessary
 Dredging activities as the port located near to the estuary
 Introduction
4

 A primary transporter of
 dry bulk commodities (grains, coal, ores)
 bulk petroleum, petroleum products and chemicals
 International shipping is responsible for the carriage
of 90% of world trade
 Market share decline since 1980s due to
 Economy changing from manufacturing to service-
based
 Supply chain orientation emphasizes faster modes
Introduction
 Water transportation is the second most efficient form of
transport in terms of energy costs per ringgit or dollar
output
 Rail 6% of energy inputs as a percentage of the output
 Water transport 9%
 Air transport 21 %
 Rates fluctuate based on
 supply and demand – competitions, world economy
 The rate of diesel, gas
 Risks - the socio/political conditions of the country, e.g. at war
Types of Service
 Liner ships/ freight liner
 Operate on a pre-established schedule with determined
ports of call
 bus
 Tramp ships
 Operate wherever the market dictates; no fixed
schedule
 Taxi
Terminologies : Size of Vessels
Dead-weight tonnage
 Definition
 The maximum weight that a ship can carry
 Since the ship also carries bunker and stores, the maximum weight that a
ship can actually carry is lower than its dead-weight tonnage.
 Total capacity of ship expressed in long tons (2,240 pounds), or metric
tons (2,204.6 pounds).
The Bunker
 The amount of fuel that a ship carries on board and that it needs to travel

Stores
 All the supplies that ship carries and that it needs to function
Size of Vessels
Gross and Net Tonnage
 Gross Tonnage
 The total volume of a ship’s carrying capacity, measured as the space
available below deck, and expressed in hundreds of cubic feet.
 The Gross Tonnage is the basis upon which ships pay taxes or pay fees to
transit through a canal.
 Only measures capacity below deck.
 Net Tonnage
 Obtained by subtracting the volume occupied by the engine room and the
spaces necessary for the operation of the ship (crew quarters, bridge) from
the gross registered tonnage.
 Size of Vessels
Displacement
 Displacement tonnage
 The total weight of the ship, when fully loaded, measured by using the weight
of the water being displaced.
 Light tonnage
 The total weight of the ship, when empty, measured by using the weight of the
water being displaced.
Size of Vessels
Plimsoll Mark and Load Lines
TF

F
T
L R
S

W
WNA

Plimsoll lines—lines painted on the hull to show ship’s draft (how deep it sits
in the water) in different conditions
Plimsoll Mark
 Load line/ water line; marking on ship
 To ensure that
 the ship is not overloaded and has sufficient freeboard
 Indicate the maximum safe draft
 Classification society determines the location of
Plimsoll Line after surveying the ship
 Different sea climates have different density of
water
Plimsoll Mark
Size of Vessels
Size Categories
 Handysize
 Ships between 10,000 and 50,000 dwt, mostly used for drybulk tramp
service
 Panamax     
 Ships of the maximum size that can enter the locks of the Panama Canal
 Post-Panamax     
 Ships that are too large to enter the locks of the Panama Canal
Panama Canal
Panama Canal
Size of Vessels
Size Categories
 Suez-max
 Ships of the maximum size that can go through the Suez canal
 Capesize
 Ships that are large dry bulk carriers of more than 80,000 dwt
 Very Large Crude Carrier
 Oil tankers up to 300,000 dwt
 Ultra Large Crude Carrier
 Oil tankers in excess of 300,000 dwt
Types of Vessels

Worldwide Fleet by Number of Vessels

Types of Vessels

Worldwide Fleet by Tonnage

Types of Vessels

Worldwide Trade by type of cargo

Flag
Concept
 Country of registration
 Ship must obey laws and regulations of that country.

Ship owner can choose country of flag

 Developed countries tend to have stricter regulations.
 Developed countries’ regulations result in higher standards for crew
composition, training, working conditions.
 Developed countries tend to have higher taxes.
 Some flags are preferred over others.
Flag

 Some countries have open registry: any ship, regardless of the

citizenship of the ship’s owners, can register in those countries.
 Countries with open registries and less stringent regulations and
taxations are called flags of convenience.
 Some developed countries have secondary registries with regulations
less strict than their regular registry.
 Flag does not influence seaworthiness of vessel:
 Seaworthiness is determined by Classification Societies
 Seaworthiness determines insurance premiums
 Flag
Top six countries in which ships are registered:

Country Number of Vessels Tonnage in 000s of dwt

Panama 4,266 177,866

Liberia 1,328 76,322

Bahamas 999 41,835

Malta 913 30,971

Cyprus 867 31,585

Bermuda 95 6,206
Flag
 Cabotage
 An ocean trade consisting of shipping between ports
located in the same country
 Cabotage policy
 A domestic trade is limited to a country’s shipping only
 The Jones Act requires that cargo transported from one port
in the United States to another port in the United States
Conferences

 A group of shipping companies (carriers) that operate vessels

competing in the same trade lanes and that have legally agreed to
not compete on price and charge the same amount for the same type
of cargo and the same voyage.
 Conference prices are called tariffs and are published.
 Ocean Shipping Reform Act (OSRA) of 1999 eliminated the
conference system for U.S. trade routes, but they are still many
conferences worldwide.
Non-Vessel-Operating Common
Carriers

 Shipping companies that do not own ships

 An NVOCC purchases space on a ship and re-sells part of that space
to companies needing to ship cargo.
 Shipping line is paid for space and weight whether or not the
NVOCC resells the space (at a higher rate).
 NVOCC acts as a freight consolidator and aggregates Less-than-
Containerload (LCL) freight into a full container.
Seaports
 According to Alderton (2008)

“An area within which ships are loaded with and/or discharged
of cargo”

“Seaports are areas where there are facilities for berthing or

anchoring ships and where there is the equipment for the
transfer of goods from ship to shore or ship to ship”

 Berth
 The specific place where the ship is to load and /or discharge
The Importance of Ports
 A major gateway to international trade as 90%
involved the water transport
 Provides the linkage between the sea transport and
rail/road transport
 Expands the economic prosperity of a nation
Main Facilities at Port
 Berthing, navigational, pilotage, tugs and mooring
gangs, cargo handling, stowing, warehousing,
supplies, bunkers, immigrations, customs, heath
and quarantine services, repacking, etc
Major Requirements for Ports
 Port should be located along the excellent geographical
position, i.e. major trade routes; lower risks to bad
weather conditions, depth enough to handle bigger
ships, reserve area for expansion
 Adequate handling equipments and facilities and
berthing areas, i.e. helps improve the turnover and
productivity, no damage to the goods handled, safety
 Competent and highly motivated management and staff,
i.e. have visions, committed to tasks, productivity, no
pilferage, close liaison with all stakeholders
List of Ports
 Can you name
 ports in Malaysia?
 20 busiest port in the world?
Discussion
 Why Malaysia needs ports?
 What is landlocked countries? Can you give
examples of the landlocked countries?