Bangabandhu Sheikh Mujibur Rahman Maritime

University, Bangladesh

An Assignment On:
TRAMP SHIPPING INDUSTRY

Submitted To:
MRS. HALIMA BEGUM
PORT MANAGER TRAINER
CHITTAGONG PORT AUTHORITY

Submitted By:
Mosarof hossain
N59158
8th semester Nautical

Bangladesh Marine Academy, Chattagrams

TRAMP SHIPPING:
Tramp shipping refers to the transport service made to suit a particular
cargo transport need. In terms of the routing and timing of shipment, it is
not fixed.
Irregular shipping, mainly over nonstandard routes, with no definite
schedule. Tramp ships are used to transport bulk cargoes and break-bulk
cargoes of low value that do not require fast delivery. The transportation
of cargoes that are picked up or dropped off along the way plays a large
role in tramp shipping.

TYPE OF SHIP:
The bulk carrier became the tramp of choice for many owners and
operators. The bulk carrier was designed to carry coal, grain and ore,
which gave it more flexibility and could service more ports than some of
its ancestors, which only carried a single commodity.

Today the tramp trade includes all types of vessels, from bulk carriers to
tankers. Each can be used for a specific market, or ships can be combined
like the oil, bulk, ore carriers to accommodate many different markets
depending where the ship is located and the supply and demand of the
area. Tramp ships often carry with them their own gear (booms, cranes,
derricks) in case the next port lacks the proper equipment for loading or
discharging cargo.

PRODUCTS AND COMMODITIES:

Tramp shipping is more used in transportation of large quantity of
homogenous cargo, often primary commodities, which are normally
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called bulk cargo. the typical bulk cargoes are for examples oil, grain,
coal, ore etc. another term neo-bulk is also used to cover those types of
cargo which are homogenous in nature and identical in appearance but
have to be loaded or unloaded piece by piece or separated in or out of
the ship. The cargoes are in this category include, logs, steel, product,
bagged cargo like cement, fertilizer, cocoa, coffee etc.

CAPACITY, UNIT COST AND ECONOMICS OF SCALE:

In case of tramp shipping, small capacity ship has good value and good
freight rate rather than over or mega capacity ship. Cause over capacity or
mega capacity ship sometimes they lay down for without cargo or huge
amount of cargo their freight also go down in case most of the buyer they
want their minimum amount of cargo according to their port capacity port
draft in comparison with the ships draft and also nearest their industrial
area and calculate the transport cost. But over or mega capacity ship will
get great value when trade growth comes back. The shipping sector seems
to be slave to a very powerful and addictive idea, called “economies of
scale”. This paradigm of always bigger has three elements: mega-ships,
mega-carriers and mega-ports. The growth of these three has been
spectacular over the last decades. Many in the sector seem to believe that
big is beautiful. And even those who do not believe this, are convinced
that there is nothing, can do about the increase of ship size – and what is
related to it: mega-carriers and mega-ports. The paradigm of economies
of scale is fairly uncontested. Yet, economies of scale are in nobody’s
benefit.

GEOGRAPHIC MARITIME TRADE AREAS AND SHIPPING

ROUTE AND TRANSIT TIME:
Ships sail based on cargo commitment, which is irregular in time and/or.
Places. Time means that for certain trade, charters would like to use the
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vessel for a period of time. Most tramp ships are intended for worldwide
employment, but there is normally no expected repetition of voyage.
Every voyage is made individually. Sometimes shippers may require a
number of repetitious voyages carrying the same commodity but should
not be considered as regular service voyage.
The only condition is that the transport routing and timing are tailored to
the need of the cargo, which is sufficient in quantity to deploy the entire
ship.

TYPES OF SEAPORT AND TERMINALS:

Terminals are specialized in handling bulk cargo, liquid or dry, have
normally the following characteristics:
 Deep water draft. This may vary according to different types of
bulk cargo and ships between 12 to 17 meters.
 Specialized handling equipment. The equipment is purposely built
to achieve high productivity for an example they load or unload a
bulk-carriers with a rate of amount 10,000 to 20,000 tons per day.
 Large stores and facilities. Oil tanks, grain silo or big storage areas,
open or closed, are often symbols of a bulk terminal.
 Good onward transport connection. Bulk cargo is normally raw
materials with a low unit value and for this it also needs for low
transport cost. Therefore, terminals are often well connected with
the railway and also some inland waterway transport possibilities.

ORGANIZATION AND MANAGEMENT:

Many tramp shipping companies are small with few ships because an
organizationally small company gives numerous advantages as not only
each ship but each voyage is made individually in market, which is by
nature fluctuating. Thus tramp shipping is normally organized on a small

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scale with, sometimes, a single ship. For example from Stopford is -a
company owned by two Greek brothers and runs a fleet of five ships –
three products tanker and two small bulk carriers. Company has a two-
room office in West East London run by chartering manger with a telex
and a part time secretary. Its main office in Athens where two or three
staffs do the accounts and administration and sort out of problem. Three
ships are time charter and two are on the spot market.

CONFERENCE SYSTEM FRIEGHT RATE AND MARITIME

TRANSPORT COST:
Agreement between two or more shipping companies to provide
scheduled cargo and/or passenger service on a particular trade route under
uniform rates and common terms. Also called shipping conference. In
case of tramp shipping the agreement between shippers and charter party
for a period of time or for six months or one year. Here very less
agreement between two or more shipping companies with shippers. Cause
this agreement is commonly in liner shipping and conference is
oligopolistic. But in tramp shipping there is no fixed freight rate and
transport cost its depend service schedule in respect of market demand
and supply.

MARKET STRUCTURE AND FORCE DEMAND AND SUPPLY:

Tramps play on the rule of demand and supply in the market. They are
not committed to any discipline in respect of service schedule and
freight rates. Their freight nays and thrill are purely market, driven.
They run where there is driven. They run where there is demand. They
can be compared to private buses in a marriage season whore there are
no fixed rates and totally depend on flu season’s demand.

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