An overall view of the shipping business covering all aspects in broad terms: practitioners, business ethics, geography of trade, business ethics, international trade, finance and terms of sale, international shipping organisations and communications in business.
One of a series of coursebooks produced by the Institute of Chartered Shipbrokers.

Author(s): Institute of Chartered Shipbrokers
Published: 2005
Binding: Paperback
ISBN 10: 185609281X ISBN 13: 9781856092814

Contents

Preface

1      The Business Entity

1.1    Introduction

1.2    Sole Trader

1.3    Partnerships

1.4    Limited Liability Companies

1.5    Horizontal and Vertical Integration

1.6    Company Organisation and Management

1.7    Management Accounts

1.8    Statutory Accounts

1.9    Quality Management

1.10  Self-Assessment and Test Questions

2      The Practitioners in Shipping Business

2.1    Introduction

2.2    The Merchant

2.3    The Chartering Markets

2.3.1    The Dry Cargo Market

2.4    Dry Cargo Charter Parties

2.5    The Anatomy of Charter Parties

2.6    Voyage Charters

2.7    Time Charters

2.8    The International Chartering Market at Work

2.9    The Tanker Market

2.10  Tanker Charter Parties

2.11  The Tanker Market at Work

2.12  Self-Assessment and Test Questions

3      The Practitioners - Continued

3.1    Ship Sale and Purchase

3.2    Scrapping

3.2.1    Newbuildings

3.3    Second Hand Tonnage

3.4    Financing the Purchase

3.5    Valuations

3.6    Ship Managers

3.7    Crewing

3.8    Total Management

3.8.1    Technical

3.8.2    Operations

3.8.3    Administration

3.9    The Contract

3.10  Self-Assessment and Test Questions

4      The Practitioners - Continued

4.1    Port Agents

4.2    The Agent’s Fee

4.3    The Agent’s Duties

4.4    Liner Agency

4.5    Dealing with the Ship

4.6    Dealing with Outward Cargo – Marketing

4.7    Dealing With Outward Cargo – Documentation

4.8    Dealing with Outward Cargo – Containers

4.9    Dealing with Inward Cargo

4.10  Dealing with the Principal

4.11  The Liner Agent Remote from the Port

4.12  The Agency Contract

4.13  Self-Assessment and Test Questions

5      Business Ethics

5.1    What are Ethics?

5.2    Ethics in Shipping Business

5.3    Maritime Fraud

5.4    Insurance Fraud

5.5    Documentary Fraud

5.6    Other Areas of Fraud

5.7    Other Criminal Activities

5.8    Detecting and Avoiding Fraud

5.9    Self-Assessment and Test Questions

6      The Geography of Trade

6.1    Seaborne Trade

6.1.1    Introduction

6.2    Oil

6.3    Coal

6.4    Ores

6.5    Grains

6.6    Other Dry Bulk Cargoes

6.7    Unitised Cargo

6.8    Ports

6.9    LOA

6.10  Beam

6.11  Draft

6.11.1  Airdraft

6.11.2  SWAD

6.11.3  FWAD

6.11.4  BWAD

6.11.5  Bar Draft

6.12  Political Restrictions

6.13  Trade Union Disputes

6.14  Natural Phenomena

6.14.1  Tides

6.15  Weather and Navigation

6.15.1  Ocean Currents

6.15.2  Cyclones

6.15.3  Ice

6.15.4  Weather Routing

6.15.5  Oceans

6.16  Navigational and Seasonal Zones

6.17  Self-Assessment and Test Questions

7      International Trade and Finance: International Terms of Sale

7.1    Introduction

7.2    The Basic Contract

7.3    Goods

7.4    Property

7.5    Risk

7.6    International Contracts of Sale – Incoterms

7.6.1    FAS – (Free Alongside)

7.6.2    FOB – (Free on Board)

7.6.3    Variants on the FOB Contract

7.6.4    FOB Stowed

7.6.5    FOB Stowed and Trimmed

7.6.6    FOB with Services

7.6.7    CIF – (named port of destination) – Cost, Insurance and Freight

7.6.8    CFR – Cost and Freight

7.6.9    DES – Delivered Ex Ship (named port of destination)

7.6.10  DEQ – Delivered Ex Quay (duty paid)

7.6.11  Non Maritime Incoterms

7.6.12  EXW-EX Works

7.6.13  FCA – Free Carrier named point

7.6.14  CPT – Carriage Paid To (named place of destination)

7.6.15  CIP – Carriage and Insurance Paid

7.6.16  DAF – Delivered at Frontier

7.6.17  DDU – Delivered Duty Unpaid (named place of destination)

7.6.18  DDP – Delivered Duty Paid (named place of destination)

7.7    Remedies for Breach of Contract

7.7.1    Remedies of the Seller

7.7.2    Stoppage in Transit

7.7.3    Lien

7.7.4    Remedies of the Buyer

7.8    Law and Jurisdiction

7.9    Postscript

7.10  Self-Assessment and Test Questions

8      Finance in International Trade

8.1    Introduction

8.2    Methods of Payment

8.3    Documents

8.3.1    Invoice

8.3.2    Insurance

8.3.3    Bill of Lading

8.3.4    Other Documents

8.4    Confirming Houses

8.5    Risks in International Trading

8.6    Foreign Exchange Fluctuations

8.6.1    Spot Rate

8.6.2    Forward Exchange Contracts

8.6.3    Foreign Currency Options

8.6.4    Transaction Costs in International Trade

8.7    Insurance

8.7.1 Insurable Interest

8.8    Trade Terms in Export Sales

8.9    Warranties

8.10  Types of Insurance Policies for Cargo

8.10.1  Facultative Insurance

8.10.2  Open Contracts

8.10.3  Floating Policies

8.10.4  Open Covers
8.10.5  Open Policies

8.11  Effecting Insurance

8.11.1  The Assessing of a Risk

8.12  Conditions of Insurance

8.12.1  Institute Cargo Clauses (C)

8.12.2  Institute Cargo Clauses (B)

8.12.3  Institute Cargo Clauses (A)

8.12.4  Conditions Common to Institute Cargo Clauses (A), (B) and (C)

8.12.5  Institute War Clauses

8.12.6  Institute Strikes, Riots and Civil Commotions Clauses

8.13  Premiums

8.14  Claims Procedure

8.15  The Principle of Average

8.15.1  Particular Average

8.15.2  General Average

8.16  Self-Assessment and Test Questions

9      International Shipping Organisations

9.1    Introduction

9.2    Shipowners’ Organisations

9.2.1    International Chamber of Shipping

9.2.2    Intercargo

9.2.3    Intertanko

9.2.4    Baltic and International Maritime Council (BIMCO)

9.3    Brokers’ and Agents’ Organisations

9.3.1    The Institute of Chartered Shipbrokers

9.3.2    The Baltic Exchange

9.3.3    The Federation of National Associations of Shipbrokers and Agents (FONASBA)

9.3.4    The International Federation of Forwarding Agents’ Associations (FIATA)

9.4    United National Organisations

9.4.1    The International Maritime Organization (IMO)

9.4.2    United National Council for Trade and Development (UNCTAD)

9.5    Other Shipping Related Bodies

9.5.1    Chambers of Commerce

9.5.2    The International Chamber of Commerce

9.5.3    The International Maritime Bureau (IMB)

9.5.4    The Corporation of Lloyd’s (“Lloyd’s of London”)

9.5.5    Lloyd’s Agents

9.6    Classification Societies

9.6.1    Lloyd’s Register of Shipping

9.6.2    International Association of Classification Societies (IACS)

9.6.3    The International Transport Workers’ Federation (ITF)

9.7    Self-Assessment and Test Questions

10   Communication in Business

10.1  Introduction

10.2  Basic Principles of Business Communication

10.3  Modes of Communication

10.3.1  The Spoken Word

10.3.2  Formal Meetings

10.3.3  Public Speaking and Broadcasting

10.3.4  The Telephone

10 .4 The Written Word

10.4.1  Punctuation, Grammar and Syntax

10.4.2  Reports

10.4.3  Letters

10.4.4  Writing for the Media

10.4.5  Memoranda

10.4.6  Legal and Parliamentary Material

10.5  Visual Communication

10.5.1  Graphs

10.5.2  The Use of Graphs in Economics

10.6  Charts

10.6.1  Pie Charts

10.6.2  Bar Charts

10.7  Tables

10.8  Communication by Computer

10.8.1  Fax

10.8.2  Electronic Mail

10.8.3  Electronic Data Interchange

10.8.4  Data Storage and Retrieval

10.8.5  The Internet and e-commerce

10.9  Self-Assessment and Test Questions

Appendices

Mock Exam

The Purpose and Scope of This Book and Course Guide