International Cargo Shipping Players

International Cargo Shipping Players. Generally, international cargo shipping players fall within one of 4 groups:

  1. ship interests
  2. cargo interests
  3. ocean transportation intermediaries
  4. other interests

Ship interests consist of ship owners, bareboat charterers, demise charterers who control and operates ships for a period of time. Ocean Carrier transport goods for shippers. Shippers contract directly or indirectly with ocean carriers to transport their goods. Ocean Tramp Carrier is a carrier who performs ocean voyages on voyage charter-party, basis from port to port, negotiated with the shipper. Ocean Tramp Carrier is different from Ocean Common Carrier. Ocean Common Carrier operates ships on fixed, regularly scheduled routes. Ocean Common Carrie makes its ships available to all shippers willing and able to pay the freight and comply with other freight terms. Ocean Tramp Carriers carry most of the bulk commodities around the world.

Ocean Transportation Intermediaries are people or companies that serve as middlemen in the transportation of ocean cargo.

  • Freight Forwarders
  • Non-ship Operating Common Carriers (NVOCCs)

are ocean transportation intermediaries. Shippers hire Freight Forwarders in order to arrange:

  • movement of cargo
  • find ship or service
  • procure containers
  • coordinate inland trucking or rail transport
  • complete shipping documentation

Non-ship Operating Common Carriers (NVOCCs) acquire space (slot on container ships) on ships. Non-ship Operating Common Carriers (NVOCCs) sell space (slot on container ships) to shippers. Non-ship Operating Common Carriers (NVOCCs) is a shipper with regard to ship interests. Non-ship Operating Common Carriers (NVOCCs) is a carrier with regard to shipper interests.

Freight Brokers or Shipbrokers are similar to freight forwarders in their functions. Generally, Freight Brokers or Shipbrokers work in connection with tramp shipments rather than shipments by common carriage. Shipbrokers arrange cargoes to ships and vice-versa. Shipbrokers seek cargoes for tramp carriers.

Cargo Surveyors duties:

  • inspect the cargoes of ships
  • check if the ship is in compliance with national and international health and safety regulations in cargo handling and stowage
  • examine cargoes on loading into the ship
  • examine that the cargo was delivered to the ship in good condition
  • examine cargo on discharge
  • determine whether the cargo suffered any obvious damage during the voyage

Shipping business involves a number of other parties:

Shipper is the person or company that sends goods for shipment. Shippers package, label, arrange for transit or coordinate transport of goods. Usually, shippers contact freight forwarders to coordinate the movement of their containerized goods and shippers contact shipbrokers to coordinate the movement of their bulk cargoes.

Freight Forwarder is the person or company that organizes shipments for shippers from original point to final destination. Usually, manufacturers or producers contact freight forwarders to ship goods from one place (factory) to customer, market or final point of distribution. Freight forwarders

  • assemble and consolidate shipments
  • perform or provide for break bulk distribution operations of the shipments
  • assume responsibility for the transportation from the place of receipt to the destination
  • contract with carriers to move goods

Freight Forwarders do not move goods themselves. Freight Forwarders act as experts in supply chain management.

Ocean Freight Forwarder is the person or company that dispatches shipments via ocean common carriers or ocean tramp carriers. Ocean Freight Forwarder books or arranges space (slot) for those shipments on behalf of shippers. International Ocean Freight Forwarders arranging shipments to and/or from United States must be licensed by Federal Maritime Commission as Ocean Transportation Intermediaries. Ocean Transportation Intermediary is either an Ocean Freight Forwarder and/or a Non-Ship Operating Common Carrier (NVOCC).

Common Carrier is a person or company that transports people or goods of general public. Common Carrier cannot refuse to transport goods or discriminate anyone else as long as space is available for previously defined and published routes, time schedules and rates. On the other hand, Private Carrier can refuse to transport goods. Common Carrier is responsible for any possible loss of the goods during transport. In common law countries, Common Carrier offers to transport goods or services to the general public. Common Carrier offers services to the general public under license or authority provided by a regulatory body. In United States, Ocean Freight Forwarders cannot act as a Common Carriers.

Ocean Tramp Carrier is a person or company that operates a ship on a time charter or voyage charter. Ocean Tramp Carrier carry goods for a single voyage or multiple voyages (Contracts of Affreightment) under a specific contract (charter-party), rather than on a Bill of Lading.

Non-Ship Operating Common Carrier (NVOCC) is common carrier that assumes responsibility for the transportation of the cargo. Non-Ship Operating Common Carrier (NVOCC) issues its own bills of lading (B/L) or equivalent documents. Non-Ship Operating Common Carrier (NVOCC) does not operate the ships that carry the cargo.

Vessel Operating Common Carrier (VOCC) is a common carrier that operates the ship and assumes responsibility for the transportation of the cargo. Vessel Operating Common Carrier (VOCC) issues its own bills of lading (B/L) or equivalent documents.

Port Agent is a person or company. Port Agent duties:

  • handle range of administrative duties for a ship’s call in port
  • support ships that call in port
  • manage various matters related to the handling of cargo at ports on behalf of the ship owner, ship operator, shipper, receiver
  • arrange port arrival clearance
  • coordinate attendance of port-state control officials and others
  • arrange tugs and berthing
  • arrange supply of provisions
  • arrange technicians for repairs
  • coordinate arrival and departure of seafarers
  • provide information about the port and local regulations.

Customs Agent is a person or company that responsible for clearing of goods through customs for importers and exporters. Custom agents submit documents to notify or obtain clearance from government agencies.

Warehousemen is a person or company that is responsible for receiving and storing goods of others in exchange for compensation or profit.

Terminal Operator is a person or company that is responsible:

  • manage and coordinate marine terminal that ships load or discharge cargo
  • provides various services required by ships to berth for loading and discharging cargo,
  • assist cargo owners to store and move cargo onward
  • may lease parts of the terminal to other terminal operators
  • grant licenses to third parties to provide necessary services.

Consignee is a person or company to whom the shipment is to be delivered

Consignor is a person or company who sends the shipment

Stevedore is a person or company that contracts with ocean carriers, ship owners, charterers, shippers or consignees to provide services associated with the loading or discharging of cargo from a ship. Stevedore companies load or discharge cargo from ship by hiring Longshoremen.

Surveyor is a person or company that conducts inspections or assessments on ships or the cargo.

Class Surveyor is employed by Class Society to inspect the condition of a ship. Generally, Class Surveyor is authorized to issue required ship certificates on behalf of the flag state.

Vetting Surveyor examine ships and documents to assess condition or management of the ship.

Cargo Surveyor inspect cargo at loading and discharging port in order to check for damage incurred during, before or after voyage.

Casualty Surveyor examine damage to estimate repair costs and losses.

Time Charterer is a person or company that contracts to charter in a ship for a specified period of time. Ship owner still manages the ship and pay crew members, but time charterer manages employment of the ship and port calls. Time Charterer pays:

  • all bunkers for main engine and auxiliary engines
  • loading and discharging port charges (Port D/A)
  • canals, water ways, locks etc.
  • commissions
  • daily hire of the ship

Bareboat Charterer is a person or company that hires ship and assumes full responsibility for the operation, maintenance and insurance of the ship. Bareboat charterer has possession and full control of the ship along with legal and financial responsibility. Bareboat charterer pays for all operating expenses, including fuel, crew, port expenses and insurance. Bareboat charter is a way of financing a ship and mostly used by financial institutions.

Voyage Charterer is a person or company that pays freight to the ship owner for a voyage from loading port to discharging port. Voyage charterer pays ship owner for cargo on per-ton or lump sum basis. Ship owner pays:

  • all bunkers for main engine and auxiliary engines
  • loading and discharging port charges (Port D/A)
  • canals, water ways, locks etc.
  • commissions

Classification Society is a privately-owned entity that survey ships to ensure that they are built and maintained in accordance with flag-state laws and according to industry standards. If a ship is built and maintained according to those standards, the ship is said to be In Class. Class Surveyors are typically authorized by the flag states to issue certificates required by international laws for trading like Cargo Ship Safety Construction Certificate, Safety Management Certificate (SMC) etc.

Flag State is the country under which a ship is registered. Flag State has primary jurisdiction over the ship and its crew.

Port State is the country in whose port a ship is calling. Port State has jurisdiction over the ship and its crew based on the ship’s coming to the country’s port. Port State’s jurisdiction includes:

  • regulatory and criminal matters affecting the port
  • authority to confirm that the ship complies with international maritime conventions, but does not involve in company problems like ship administrative matters or seafarer contracts

Technical Manager is a company designated by the ship owner or ship operator. Technical Manager is responsible for:

  • technical operation of ship
  • technical superintendence of ship
  • manning of a ship
  • duties under ISM Code (International Convention for the Safe Management of Ships)
  • arranges port agents in cooperation with charterers
  • supply provisions, spare parts and needs of the ship
  • arranges maintenance, dry-docking, surveyors, and other ship management functions
  • daily control over the ship

Crewing Agent is a person or company that is designated by the ship owner or ship operator. Crewing Agent handles selection, hiring, and deployment of seafarers, crew members and marine personnel. Furthermore, crew management services are outsourced to Crewing Agent companies in order to handle on behalf of technical manager.

Commercial Manager is a company that is designated by ship owner or ship charterer. Commercial Manager is responsible for marketing and commercial employment of ships. Commercial Manager is responsible for day-to-day commercial operations of ships. Commercial Manager may be ship owner related company (in house) or a third-party commercial manager.

International Chamber of Commerce (ICC) has developed a set of common international trade terms in order to facilitate international trade. International Trade Terms sets out the allocation of risks and responsibilities between buyers and sellers of goods and commodities, known as INCOTERMS.

  • EXW (Ex Works): buyer has the most responsibility, assuming the responsibility and risk for the goods as they leave the seller’s facility. Seller makes cargo available to the buyer at the seller’s location. Buyer is responsible for all arrangements needed to pick up the cargo at that location and bring it, ultimately, to buyer’s intended destination.
  • DDP (Delivered Duty Paid): seller has the most responsibility, undertaking responsibility to get the goods to the designated delivery location, with all custom duties paid.
  • FAS (Free Alongside Ship) (named port of shipment): seller is obligated to place the cargo being sold alongside the ship at the named port and must obtain clearance to export the cargo. This term is used for the shipment of commodities and other bulk (non-containerized) cargoes.
  • FOB (Free on Board) (named port of shipment): seller is obligated to load the cargo aboard the ship at the named port of shipment and must obtain clearance to export the cargo. This term is also used for the shipment of commodities and other bulk (non-containerized) cargoes.
  • CFR (Cost and Freight) (named port of destination): seller is obligated to pay the costs and freight to bring the cargo to the named port of destination. Insurance for the cargo is not included in this obligation.
  • CIF (Cost, Insurance and Freight) (named port of destination): seller is obligated to pay the costs, freight and insurance to bring the cargo to the named port of destination.
  • FCA (Free Carrier) (named place of delivery): seller makes cargo available to the buyer into the hands of the first carrier, nominated by the buyer and paid for by the buyer and seller must obtain clearance to export the cargo.
  • CPT (Carriage Paid To) (named place of destination): seller makes the cargo available to the buyer into the hands of the first carrier, nominated by the buyer but paid by the seller, and seller must obtain clearance to export the cargo.
  • CIP (Carriage and Insurance Paid To) (named place of destination): seller is obligated (similar to CIF) to pay the costs, freight and insurance to bring the cargo to the named port of destination, but the buyer has the risk from the point at which the seller passes the goods over to the first carrier (like trucking company).
  • DAT (Delivered at Terminal) (named terminal at port or place of destination): seller is obligated to pay for the carriage to a named terminal and assumes all the risks until cargo is unloaded at the terminal. The buyer is obligated to pay the costs to obtain clearance to import the cargo.
  • DAP (Delivered at Place) (named place of destination): seller is obligated to pay for the carriage to a named place and assumes all the risks until the cargo is ready for unloading by the buyer. Buyer is obligated to pay the costs to obtain clearance to import the cargo.
  • DDP (Delivered Duty Paid) (named place of destination): obligations are the same as with DAP (Delivered at Place) except that seller also pays the costs to obtain clearance to import the cargo.