Liner Shipping

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AN INTRODUCTION TO LINER SHIPPING BUSINESS

NATURE AND SCOPE OF LINER SHIPPING BUSINESS:

LINER SHIPPING BUSINESS

A BRIEF HISTORICAL PERSPECTIVE OF SHIPPING

THE MAIN CHARACTERISTICS OF LINER SERVICE

THE MAIN CHARACTERISTICS OF TRAMP SERVICE

TYPES OF LINER SERVICE OPERATORS

THE IMPORTANCE & NEED FOR LINER SERVICE

LINER TRADE ROUTES

A BRIEF HISTORICAL PERSPECTIVE OF SHIPPING:

The spirit of enquiry - looking beyond the forests, mountains, deserts & oceans.

The era of explorations

European expeditions

Discovery of the Americas

The Suez and Panama canals and other canals/waterways changed the course of shipping

Industrial Revolution

Increase in trade

Newer markets and opportunities

Large-scale shipping lines only became widespread in the nineteenth century, after the development of the steamship in 1783. Great Britain was the center of development of the shipping line. In 1819 the first steamship crossing of the Atlantic Ocean took place. By 1833 shipping lines had begun to operate steamships between Britain and British Empire possessions such as India and Canada.

Three major British shipping lines were founded in the 1830s:

The British and American Steam Navigation Company.

The Great Western Steamship Company

The Peninsular Steam Navigation Company.

HISTORICAL PERSPECTIVE

1. Evolution of Shipping as an industry that arose from man’s quest for seeking new frontiers and later on played a major role in world trade.

2. Growth of markets from local to neighbouring settlements / villages / towns/cities/countries and continents across the oceans in the 18th century. Seafaring communities could be found all over the world, the Egyptians, the Phoenicians, the Greeks, the Romans, the Norwegians, the British, the Dutch, the Portuguese, the Chinese, the Indians and many more.

3. Discovery of new continents: The Americas and routes to various countries. The major man-made alterations in the geographic landscape that change the world. The Panama canal connected the Atlantic and the Pacific oceans while the Suez canal connected the Mediterranean sea in Europe and the Red Sea in Asia.

4. Industrial Revolution and the invention of the steam engine caused a major shift in the way ships operated – wind powered to steam powered. The trade routes moved from being guided by wind and ocean currents to routes chartered by man to countries and continents around the globe.

5. The inter-dependence of people and their produce and the role of ship owners and merchants in the development of new markets overseas.

6. The advent of Tramp and Liner Shipping Business as the demands of the merchants and trading community grew during the 19th and 20th to have regular service to destination of their choice that was dependable, reliable, fixed route and timeframe to meet the requirements of their overseas customer.

Characteristics of Liner Shipping

Tramp* vs Liner Shipping* Dictionary Meaning - vagrant, homeless, vagabond

Tramp service is driven by demands of the merchant in carrying goods in large quantities to specified location, does not have a fixed schedule or tariff in the sense that the freight rates are negotiable per voyage,

Whereas Liner Shipping is driven by demands of the merchant in carrying goods in smaller quantities, that is unitized or break-bulk, on a specified route, operating with a regular schedule, to pre-advertised ports of call and fixed tariff.

Types of Liner Service:

❖ Break-bulk – lumber, wood-chips, liquids, grains, crude-oil, over dimension cargo.

❖ Container or cellular vessel - Containers

❖ Roll-on/Roll-off vessel – to carry fully built motor vehicles of all shapes & sizes

❖ LASH (lighter* aboard ship) or Kangaroo ships, lighter transport ships

❖ Passenger/Luxury Cruise Liner – ferrying people on work or leisure

• A lighter is a...
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