2021 MARITIME ECONOMICS GRADE 11 LEARNER SUPPORT DOCUMENT STEP AHEAD final

Downloaded from hlayiso.com CURRICULUM GRADE 10 -12 DIRECTORATE NCS (CAPS) LEARNER SUPPORT DOCUMENT GRADE 11 MARITIME ECONOMICS STEP AHEAD PROGRAMME 2021 1|Page

Downloaded from hlayiso.com https://ultradeep.co.za PREFACE This support document serves to assist Maritime Economics learners on how to deal with curriculum gaps and learning losses as a result of the impact of COVID-19 in 2020. It also captures the challenging topics in the Grade 11 work. Activities should serve as a guide on how various topics are assessed at different cognitive levels and preparing learners for informal and formal tasks. It will cover the following topics: 1. LLOYD’S REGISTER 2. SOUTHERN AFRICAN PORTS 3. WORLD TIMES ZONES AND INTERNATIONAL DATELINE 4. MARITIME RELATED CAREERS 5. HARBOUR AS TRANSPORT INTERFACE 6. SHIP OPERATIONS 7. VOYAGE COST 8 INTERNATIONAL TRADE 9. MAJOR GLOBAL AREAS OF SUPPLY AND DEMAND 10. CONTAINER SHIPPING 11. MARINE ENVIRONMENTAL CHALLENGES 2|Page https://tvetpapers.co.za

Downloaded from hlayiso.com Notes Shipbroking A ship broker is a company (or person) who performs important roles in any of the following:  Assists a shipowner to buy or sell a ship;  Assists a cargo owner to find a suitable ship to move his cargo. (This is especially important in dry bulk trades or the bulk liquid trades where a suitable bulk carrier or tanker is required to move a particular cargo. It is also applicable when a containership operator wants to charter a ship, and indeed in other areas of shipping where anchor handling tugs, drillships and other types of vessel are also needed for specific time periods.)  Assists a shipowner to find cargoes for his ships. Activity 1 What are the duties of a shipbroker?  What duties does the shipbroker perform? Assists a shipowner to buy or sell a ship;  Assists a cargo owner to find a suitable ship to move his cargo. (This is especially important in dry bulk trades or the bulk liquid trades where a suitable bulk carrier or tanker is required to move a particular cargo. It is also applicable when a containership operator wants to charter a ship, and indeed in other areas of shipping where anchor handling tugs, drillships and other types of vessel are also needed for specific time periods.)  Assists a shipowner to find cargoes for his ships. Notes Lloyd’s Register of Ships is a list of most ships above 500 gross register tons (see below) and gives many details about each vessel – her owner, previous names, length, beam, draught, cargo capacity, machinery and other details. (See the examples below of three ships – Scott Spirit, Safmarine Mafadi, and IVS Gleneagles.) The register dates back to 1760 when, because few shipping people had their own offices, they gathered in coffee houses near the dock areas in London. One of these that was particularly popular with shipping people was the coffee house of Edward Lloyd. Although much of the conversation was informal, those in the coffee house discussed ships and cargoes. Deals were also made about cargo shipments, sales of ships, and even the “hiring” or chartering of ships. Lloyd kept a list of ships and their details, and from this came Lloyd’s Register of Ships, now published in book form (there are four parts to the list of ships) and there are also a number of other books that list ship 3|Page

Downloaded from hlayiso.com owners and other shipping-related details. These books are also available digitally which is preferred by many, and which is different in format to the book layout. For each ship listed in Lloyd’s Register of Ships, some details need explaining : Official Number This is a number allocated to the ship by the International Maritime Organisation (IMO) before construction work begins. The number is known as the IMO number and does not change, even if the ship changes ownership or is renamed. (It is like the chassis number on a car that remains unchanged throughout the car’s existence even if the owner sells the car.) Ship’s Name In the extract given below, the vessel Halifax Sun was built in 2009 (see date in red below) and had two previous names. From her completion in 2009 until 2010, she was called Storm Petrel (10, shown in the example in orange next to the name indicates the date – 2010 – until which she had this name). From 2010 to 2012, she was called North Star. In 2012, she was renamed Halifax Sun. Gross Register Tons (grt) This value (19243 grt in the case of Halifax Sun) is calculated via a complicated formula and relates to all the enclosed spaces on a ship, i.e. it includes cabins, holds, the engineroom and all other enclosed spaces. In some countries, this value is used to calculate the port charges for a ship. Nett Register Tons (nrt) This value (15467 nrt in the case of Halifax Sun) is calculated via a complicated formula and relates to all the revenue-earning spaces on a ship, i.e. on a cargo-carrying ship, it includes only the holds or tanks in which cargo can be carried. This value is used to calculate certain tariffs such as the tariff that a ship is charged to pass through the Suez Canal. Deadweight Tons (dwt) This value is calculated via a complicated formula and indicates the amount of cargo, fuel, fresh water, ballast water and stores a ship can carry. The deadweight of Halifax Sun is given as 29431 dwt. This means that she can carry about 26700 tons of cargo, and that fuel, fresh water, ballast water and stores will make up the remaining 2731 tons Length Overall (LO) This is the length of the ship from the extreme point on the bow to the extreme point on the stern. This figure is important when deciding whether a ship can enter a particular drydock, lock or can be berthed at a particular berth in a harbour. 4|Page

Downloaded from hlayiso.com Length between perpendiculars (Lbp) This length is the distance between the first bulkhead nearest the bow and the last bulkhead near the stern in the ship. It is important when arrangements are made for drydocking a ship. Beam extreme This is the widest point on the ship. It is important when deciding whether a ship can enter a particular harbour, drydock or lock. Beam (moulded) This is the widest point on the bottom of the ship. It is important when arrangements are made for drydocking of a ship. Depth This is the height from the main deck to the bottom of the ship. Draught This is the depth of the ship in the water. The more cargo the ship has on board, the lower she will be in the water. A ship with little cargo on board will not be as low in the water. It is important to know the draught of a ship when deciding whether a ship can enter a harbour or a lock or take a particular course. If the draught is greater than the water depth in a harbour at low spring tide, the ship certainly cannot enter the harbour. Allowance must also be made for clearance of the ship from the seabed in the harbour, especially if a swell is running. Therefore a few metres should be added to the draught of the ship to ensure her safe passage into the harbour. e.g. Freeboard This is the distance from the waterline to the main deck. Although this figure is not given in the Lloyd’s Register, it can be calculated easily by subtracting the draught of the ship from the depth of a ship. e.g. 5|Page

Downloaded from hlayiso.com The more cargo a ship carries, the greater will be the draught and the less will be her freeboard. Ships with little cargo on board will have a greater freeboard. To familiarise you with Lloyd’s Register of Ships, we will work through three examples :  The shuttle tanker Scott Spirit that is specially designed to load crude oil from an offshore oil platform and carry the crude oil to a port near a refinery. For this purpose, the shuttle tanker has a special loading point on the fo’c’sle which is clearly visible in the photograph of the three shuttle tankers below.  The containership Safmarine Meru The Supramax bulk carrier IVS Gleneagles. Engineroom and all other enclosed spaces. In some countries, this value is used to calculate the port charges for a ship. Nett Register Tons (nrt):-This value (15467 nrt in the case of Halifax Sun) is calculated via a complicated formula and relates to all the revenue-earning spaces on a ship, i.e. on a cargo-carrying ship, it includes only the holds or tanks in which cargo can be carried. This value is used to calculate certain tariffs such as the tariff that a ship is charged to pass through the Suez Canal. Deadweight Tons (dwt):- This value is calculated via a complicated formula and indicates the amount of cargo, fuel, fresh water, ballast water and stores a ship can carry. The deadweight of Halifax Sun is given as 29431 dwt. This means that she can carry about 26700 tons of cargo, and that fuel, fresh water, ballast water and stores will make up the remaining 2731 tons Length Overall (LO):- This is the length of the ship from the extreme point on the bow to the extreme point on the stern. This figure is important when deciding whether a ship can enter a particular drydock, lock or can be berthed at a particular berth in a harbour. Length between perpendiculars (Lbp) This length is the distance between the first bulkhead nearest the bow and the last bulkhead near the stern in the ship. It is important when arrangements are made for drydocking a ship. Beam extreme This is the widest point on the ship. It is important when deciding whether a ship can enter a particular harbour, drydock or lock. Beam (moulded) This is the widest point on the bottom of the ship. It is important when arrangements are made for drydocking of a ship. Depth This is the height from the main deck to the bottom of the ship. Draught This is the depth of the ship in the water. The more cargo the ship has on board, the lower she will be in the water. A ship with little cargo on board will not be as low in the water. It is important to know the 6|Page

Downloaded from hlayiso.com draught of a ship when deciding whether a ship can enter a harbour or a lock or take a particular course. If the draught is greater than the water depth in a harbour at low spring tide, the ship certainly cannot enter the harbour. Allowance must also be made for clearance of the ship from the seabed in the harbour, especially if a swell is running. Therefore a few metres should be added to the draught of the ship to ensure her safe passage into the harbour. e.g. Class Activities Activity 1 Match column A with column B COLUMN A COLUMN B 1. Beam A. relates to all the revenue-earning spaces on a ship, i.e. on a cargo- carrying ship, it includes only the holds or tanks in which cargo can be carried. 2. Freeboard B. is the widest point on the ship. It is important when deciding whether a ship can enter a particular harbour, drydock or lock 3. NRT C. This is the height from the main deck to the bottom of the ship. 4. DWT D. This is the depth of the ship in the water. The more cargo the ship has on board, the lower she will be in the water. A ship with little cargo on board will not be as low in the water 5. GRT E. This is the distance from the waterline to the main deck 6. Depth F. relates to all the enclosed spaces on a ship, i.e. it includes cabins, holds, the engineroom and all other enclosed spaces 7. IMO Number G. This is a number allocated to the ship by the International Maritime Organisation (IMO) before construction work begins. 8. Length Overall H. indicates the amount of cargo, fuel, fresh water, ballast water and stores a ship can carry. 9. Draught I. This is the length of the ship from the extreme point on the bow to the extreme point on the stern. 7|Page

Downloaded from hlayiso.com October 2011. Photograph: Teekay Activity 2 Look at the Lloyd’s Register entry for Scott Spirit. Now answer the following questions 1. What is the ship’s official IMO number? 2. Who are her owners? 3. In which country is she registered? 4. In which port is she registered? 5. What is her deadweight? 6. Can she carry a cargo 96 000 tons of tons of crude oil? Explain your answer. 7. When was she built? 8. Which company built her? 9. Where was she built? 10. What is her usual service speed? 11. She took a full stem of heavy fuel oil (HFO) at Port X. She steamed for five days in ballast to reach an offshore facility to load 90000 tons of crude oil. She took six days to load. (She 8|Page

Downloaded from hlayiso.com had to run her main engine for that time.) She then steamed 2688 nautical miles to Port Y to discharge her cargo. At Port Y she discharged her cargo alongside using all four manifolds. 11.1 How many days did it take for her to steam from the offshore oil facility to Port Y? (In your calculation, refer to the details of her speed in the Lloyd’s Register extract.) 11.2 For how many days in total was her main engine operating? 11.3 Consult the details of her fuel consumption in the Lloyd’s Register extract. How many tons of heavy fuel oil did she use? 11.4 How many tons of heavy fuel oil will she have left when she arrives in Port Y? 12. She took a full stem of marine diesel oil (MDO) at Port X. 12.1 For how many days did she load cargo? 12.2 For how many days was she using 3 tons of MDO? 12.3 How many tons of MDO did she use during the entire voyage? (Note the consumption of MDO.) 12.4 How many tons of MDO will she have left when she arrives in Port Y? 12.5 How many hours did it take to discharge her cargo in Port Y? 12.6 How much MDO did she use while she discharged her cargo? The Safmarine containership Safmarine Mafadi. Photograph: Andrew Ingpen 9|Page

Downloaded from hlayiso.com Activity 4 Look at the Lloyd’s Register extract above for Safmarine Mafadi. Now answer the following questions: 1. When was she built? 2. Where was she built? 3. Who are her owners? 4. What is her length overall? 5. What is her draught when loaded? 6. What is her depth? 7. What is her freeboard when loaded? (You will need to calculate this.) 8. What is her beam extreme? 9. What is her container capacity in teu? 10. How many reefer containers can she carry? 11. Safmarine Mafadi is being considered to transfer to a route where she will need to carry a maximum of 1700 40-foot containers plus 420 40-foot reefer containers. 11.1 Can she carry the required cargo? 11.2 Explain your answer to this question. 12. The expanded Panama Canal lock system can accommodate vessels up to 400 metres long and up to 50 metres wide. Can Safmarine Mafadi pass through the expanded canal? 10 | P a g e

Downloaded from hlayiso.com 13. Safmarine Mafadi is due to berth in Shanghai, China, at 08:00 on 5 November. One hour later, she will start discharging 660 containers, and will load 840 containers. Five gantry cranes have been allocated to her. Each will handle 30 containers an hour. Breaks will total 2 hours. 13.1 How many hours will the ship be working cargo? 13.2 When will she finish working cargo? 13.3 If she will sail one hour after completing cargowork, what is her ETD from Shanghai? Activity 5 Look at the details for IVS Gleneagles. Now answer the following questions: 1. What type of ship is IVS Gleneagles? 2. She is under consideration for a charter to carry the following cargo from Port A to Port B. At Port B, there are no shoreside discharge facilities.  2 500 tons of granite (each block of granite weighs 10 tons) 11 | P a g e

Downloaded from hlayiso.com  16 800 tons of pig iron (considered to be a bulk cargo)  7 800 tons of steel bars  5 400 tons of ferrochrome (a mineral bulk cargo) 2.1 Look at her deadweight. In terms of that, can she carry this cargo? Answer YES or NO but show your calculations. 2.2 Explain your answer to Question 2.1. 3. The charterer and the ship agree that the cargo should be stowed as follows : Hold Cargo Tonnage Loading Rate Hold 1 Granite 2 500 tons 5 blocks an hour Hold 2 Pig Iron 8 000 tons 400 tons per hour Hold 3 Pig Iron 8 800 tons 400 tons per hour Hold 4 Steel bars 7 800 tons 600 tons per hour Hold 5 Ferrochrome 5 400 tons 300 tons per hour 3.1 Can she discharge her cargo at Port B, given that the port has no shoreside discharge facilities? Explain your answer. 3.2 Port A has a water depth of 11 metres at Spring Low Tide and a lock that has the following dimensions: Length : 212 metres; Breadth : 42 metres 3.2.1 Can she enter the lock? 3.2.2 Can she sail from Port A, loaded to her full loaded draught at Spring Low Tide? 3.2.3 Assume that loading her five holds began at the same time. 3.2.3.1 How many blocks of granite will be loaded? 3.2.3.2 How long will the granite take to load? 3.2.3.3 Which hold will take the longest to load? 4. Assume the following :  The ship is expected to arrive at the pilot station in Port A at 06:00 on 7 June  She will have to spend about 1 hour for the passage through the lock.  She will berth 3 hours later  Clearances will take another two hours 12 | P a g e

Downloaded from hlayiso.com  Various surveys and discussions will take another three hours.  Breaks total 5 hours.  Various clearances and surveys will take five hours after loading has finished. 4.1 When will loading begin? 4.2 When will loading end? 4.3 When will she sail from Port A? 5. Explain the term deadweight. 6. What are the clearances that need to be done just after she has berthed? 7. Whom will the surveyors represent when they board the ship before loading commences? 8. Why is this ship particularly suited to carry cargoes like steel, pig iron and granite? 9. What term is given to cargoes like steel and granite? 10. In which port is she registered? 11. When is her next special survey due? Notes The following parts are profiled in this section:  Richards Bay  Durban  East London  Port Elizabeth  Ngqura  Mossel Bay  Cape Town 13 | P a g e

Downloaded from hlayiso.com  Saldanha Bay  Simon’s Town Distances Between Ports (Nautical Miles) Walvis Bay – Cape Town 705 Cape Town – Mossel Bay 245 Mossel Bay – Port Elizabeth 188 Port Elizabeth – East London 135 East London – Durban 261 Durban – Richards Bay 85 Activity 1 Southern African Ports Look at the map showing Southern African ports and answer the questions below : 1. Which port lies 1.1 between Port Elizabeth and Cape Town 1.2 between East London and Richards Bay 1.3 on the northern coast of Namibia 1.4 closest to the South African province of Mpumalanga 1.5 closest to Durban 2. A ship is steaming from Saldanha Bay to Richards Bay. List the ports (in order) she will pass during this voyage. 3. Calculate the number of days a ship will be at sea on each of the following voyages. (Round off your answer to the next half day.) 3.1 Walvis Bay to Durban at a speed of 15 knots 3 days 14 | P a g e

Downloaded from hlayiso.com 3.2 Richards Bay to Cape Town at a speed of 13 knots Between which two neighbouring ports in South Africa is the distance 3.3 Richards Bay to Cape Town at a speed of 13 knots Between which two neighbouring ports in South Africa is the distance 4.1 the greatest? 4.2 the least? Activity 2 Countries: B – Benin; C – Cabinda (Angola); D – Djibouti; E – Eritrea; LI – Liberia; L – Lesotho; M – Malawi; S – Senegal; SL – Sierra Leone; SW – Swaziland; T – Togo; TU – Tunisia; U – Uganda Ports: AB – Abidjan; AL – Alexandria; BE – Beira; BO – Boma; DA – Dakar; DB – Dar El Beida (Formerly Casablanca); DS – Dar Es Salaam; DU – Duoala; FR – Freetown; LO – Lobito; LU – Luanda; MA – Maputo; MM – Mombasa; MO – Monrovia; MT – Matadi; NA – Nacala; PH – Port Harcourt; PN – Pointe Noire; PS – Port Said; QU – Quelimane; SA – Safi; TE – Tema Features: SC – Suez Canal. 1. Which port is the major port for…. 15 | P a g e

Downloaded from hlayiso.com 1.1 Cote d’Vor (Ivory Coast) 1.2 Mozambique 1.2 Tanzania 1.3 Kenya 1.4 Egypt 1.5 Morocco 1.6 Senegal 1.7 Liberia 2. In which country is each of the following ports? 2.1 Port Harcourt 2.2 Dakar 2.3 Tema 2.4. Douala 2.5 Beira 2.6 Lobito 2.7 Boma 2.8 Matadi 2.9 Quelimane 2.10 Nacala 3. Which country in Africa has the second biggest shipping register in the world? 4. Which port would appear on the stern of a ship flying that country’s flag? 5. Through which port will each of the following countries export cargoes? 5.1 Malawi 5.2 Zambia 5.3 Zimbabwe 5.4 Uganda 5.5 Botswana 5.6 Ghana 6. A ship sails from Safi (Morocco) and heads for Cape Town via Port Harcourt. List the countries that she will pass (in the order in which she will pass them). 7. A ship sails from Port Said, passes through the Suez Canal and heads for Durban. List the countries that she will pass (in the order in which she will pass them). 8. On which of the two voyages (Question 6 or Question 7) will the ship pass each of the following ports : 16 | P a g e

Downloaded from hlayiso.com 1. Through which port(s) is/are 1.1 crude oil imported? 1.2 fruit exported? 1.3 iron ore exported ? 1.4 coal exported? 1.5 motor vehicles exported? 1.6 manganese exported? 1.7 grain imported? 1.8 oil products exported? 2. Which ports have a specialised container terminal? 3. What type of ships carry most of the export fruit? 4. Why are Port Elizabeth and Ngqura major wool export ports? (Think of the area inland from these ports.) 5. What is the link between ports that have an oil refinery and the export of oil products such as petrol, diesel, liquid chemicals? 6. Richards Bay exports about 70 million tons of steam coal per year. 6.1 Where does most of this coal come from? 6.3 How is it brought to Richards Bay? 6.3 What is this coal used for? 7. Alumina is imported, mostly from Australia. 7.1 What is alumina? 7.2 Through which port is alumina imported? 17 | P a g e

Downloaded from hlayiso.com 7.3 What is alumina used for? 7.4 What type of ship brings alumina to that port? 8. Frozen fish is exported from Cape Town, mainly in containers. 8.1 What kinds of vessel will bring the fish to Cape Town? 8.2 What type of container is used for the export of frozen fish Notes  For every 15˚ of longitude, the sun time changes by 1 hour.  Port A (to the east of Port B) will be ahead of Port B in time.  Port C (to the west of Port D) will be behind Port D in time.  A ship crossing the International Date Line from east to west (e.g. from the Pacific coast of Canada to China) will advance her clocks 24 hours of time.  A ship crossing the International Date Line from west to east (e.g. from New Zealand to Panama Canal) will subtract (miss) 24 hours of time. Calculating the Expected Time of Arrival (ETA) of a ship Example A: What is the ETA of the ship in Port Y at Port Y’s time? Given facts : Port of Departure Port X (15˚W) Time of Departure 10:00 on 3 June Port of Destination Port Y (135˚E) Distance to be steamed 5040 Nautical Miles Average Speed 15 knots 18 | P a g e

Downloaded from hlayiso.com But this time of arrival at Port Y is 10:00 on 17 June at Port X’s time. We need to convert this to ETA the local time at Port Y. Example B: What is the ETA of the ship in Port Q at Port Q’s time? Given facts : Port of Departure Port P (45˚E) Time of Departure 07:00 on 15 August Port of Destination Port Q (120˚W) Distance to be steamed 5184 Nautical Miles Average Speed 18 knots 19 | P a g e

Downloaded from hlayiso.com But this time of arrival at Port Q is 07:00 on 27 August at Port P’s time. We need to convert this ETA to the local time at Port Q. Activity 1 1. On a voyage from Japan to the west coast of the USA, a ship crosses the International Date Line. Shortly before she crosses the dateline, the officer of the watch notes the time to be 09:30 on Wednesday 22 September. Immediately the ship crosses the Date line, he writes down the day, dates and time, what would he have written? Answer 09:30, 23 September 2. At 18:00 11 April a ship has a collision at 120 degrees East (longitude). The Captain of the ship must contact the company marine superintendent, Captain Kobus, who is in San Francisco, 120 degrees West, Unfortunately he cannot get through to Captain Kobus’s cell phone, office hours in 20 | P a g e

Downloaded from hlayiso.com San Francisco are 8:30 to 17:00 and it takes Captain Kobus an hour travel between his home and the office. Will the Captain of the ship have to phone the Captain Kobus at the office or at home? Answer 120 +120 =240/15 16hours Time will be 10:00 am He will have to call his office because it’s within the working hours Requirements to study a Maritime course Entry requirements for a navigating cadet and an engineering cadet are : National Senior Certificate (“Matric”) with more than 50 percent in mathematics, physical sciences and English. Following this is a period of study at the Maritime Studies Department at either the Cape Peninsula University of Technology (CPUT) in Cape Town or the Durban University of Technology (DUT) in Durban. (NB : Prospective cadets should ascertain the exact duration and contents of these courses before applying as the structure is due to change shortly. Note also that marine engineer cadets need to complete a practical engineering course at a recognised training school after completing the marine engineering courseThe rank structure among navigating officers on a merchant ship (containership, bulker, tanker, etc.) is as follows :  Navigating Cadet  Third Mate  Second Mate  Chief Mate  Master (Captain) 21 | P a g e

Downloaded from hlayiso.com The career path from a Grade 12 student to the Master of a large ship is as follows :  Grade 12 (with English, mathematics and physical science as subjects, and at least 55 percent in each)  One year at the Maritime Studies Department, Cape Peninsula University of Technology (CPUT), Granger Bay, Cape Town (Note : This course may change; please see the Maritime Studies Department website for up to date information.  Navigation Cadet on a ship at sea for a total of 18 Months at sea, interspersed with leave. This is a training period where the cadet starts with menial tasks and gradually is given more complex tasks and more responsibilities.  Oral examinations conducted by the South African Maritime Safety Authority in Cape Town. If the cadet passes that oral examination, he/she will gain his/her Second Mate’s Certificate of Competency.  The Cadet can be appointed as a Third Navigating Officer (Third Mate) on a ship at sea. Among his/her duties are the following: o On Bridge Watches at sea from 08:00 to 12:00 and 20:00 to Midnight o On cargo watches in port as arranged (usually six hours on; twelve off) o Usually in charge of the Stern Party when the ship is entering or leaving port or going to anchor o Ensures all life-saving and fire-fighting equipment is operational o Other duties as assigned by the senior officers on board the ship.  The Third Mate will spend 24 months at sea, interspersed with leave, plus 1 year’s course at CPUT before he/she can proceed to the next level of oral examination. (He/she may be promoted to Second Mate, depending on his/her efficiency, shows great initiative, and attitude.)  Oral examinations conducted by the South African Maritime Safety Authority in Cape Town. If the officer passes that oral examination, he/she will gain his/her Chief Mate’s Certificate of Competency.  If successful, and provided he/she has a good record of efficiency, shows great initiative, and has a positive attitude, the Third Mate may be appointed as Second Navigating Officer (Second Mate) on a ship at sea (if not serving at that rank already..  The officer spends 24 months at sea as Third Mate or Second Mate, interspersed with leave. (In some cases where the officer shows exceptional ability and initiative, the officer might be promoted to Chief Navigating Officer at sea.)  Second Mate’s duties include the following : o On Bridge Watches at sea from midnight to 04:00 and noon to 16:00 o On cargo watches in port as arranged (usually six hours on; twelve off) o Usually in charge of the Fo’c’sle Party when the ship is entering or leaving port or going to anchor o Compiles the ship’s passage plan to the next port for approval by the Master 22 | P a g e

Downloaded from hlayiso.com o Ensures all navigation equipment is operational and that all charts are updated o Usually the medical officer on board (unless a doctor is carried)  Oral examinations conducted by the South African Maritime Safety Authority in Cape Town. If the officer passes that oral examination, he/she will gain his/her Master’s Certificate of Competency.  If successful, and provided he/she has a good record of efficiency, shows great initiative, and has a positive attitude, the officer may be appointed as Chief Navigating Officer (Chief Mate) on a ship at sea (if not serving at that rank already).  The Chief Mate’s duties include the following : o On Bridge Watches from 04:00 to 08:00 and from 16:00 to 20:00 o On cargo watches in port as arranged (usually six hours on; twelve off) o Usually on the bridge when the ship enters of leaves port o Responsible for the ship’s maintenance programme o Responsible for the cargo stowage and ballasting o In charge of the deck ratings o In charge of training of all subordinates, especially navigating cadets on board  The officer may continue for a while in his/her present rank, or be promoted to a higher rank, but probably he/she will not be promoted to the rank of Master until he/she has gained a lot more experience at sea and has shown that he/she is capable of assuming the very responsible rank of Master (Captain).  The duties of the Master include the following, although he may delegate some of the actual work to other officers. (He nevertheless remains responsible for the overall efficient and safe operation of the ship.) : o In overall command of the ship o The owner’s representative and liaison with the owner on all matters o Leadership and management of the officers and crew on board o Training of all on board, especially the cadets and navigating officers o Responsible for ensuring that the ship complies with all the IMO codes, conventions, regulations as well as regulations of local authorities (e.g. port state control in a port at which the ship will call; local customs or immigration regulations, etc.) o Responsible for ensuring her safety at all times o Responsible for the safe navigation of the ship o Responsible for the safety of all on board o Responsible for the safety of the cargo on board 23 | P a g e

Downloaded from hlayiso.com o Responsible for the accounting for all goods, stores, and money on board o Usually the liaison person on board for shoreside officials (owners, charterers, immigration, customs, port health, surveyors, ship’s agents, classification society, ship chandlers) The rank structure among engineering officers on a merchant ship (containerships, bulker, tankers, etc) is as follows:  Engineer Cadet  Fourth Engineering Officer  Third Engineering Officer  Second Engineering Officer  Chief Engineering Officer The career path from a Grade 12 student to the Chief Engineering Officer of a large ship is as follows :  Grade 12 (with English, mathematics and physical science as subjects, and at least 55 percent in each)  One year at the Maritime Studies Department, Cape Peninsula University of Technology (CPUT), Granger Bay, Cape Town (Note : This course may change; please see the Maritime Studies Department website for up to date information.  Shoreside workshop training in practical engineering work. (This takes about five months.)  Engineering Cadet on a ship at sea for 18 Months at sea, interspersed with leave. This is a training period where the cadet starts with menial tasks and gradually is given more complex tasks and more responsibilities.  Oral examinations at the South African Maritime Safety Authority in Cape Town. If the cadet passes that oral examination, he/she will gain his/her Engineering Watchkeeping Certificate of Competency. 24 | P a g e

Downloaded from hlayiso.com  The Cadet will be appointed usually as Fourth Engineering Officer on a ship for 24 Months at sea, interspersed with leave.  Promotion to Third Engineering Officer can follow.  One year’s course at CPUT needs to be completed at some stage before the oral examinations (arranged by SAMSA) for further certificates of competency can be attempted.  If the oral examination for the Second Engineering Certificate of Competency (sometimes called Class 2 Engineering) is successful, and provided he/she has a good record of efficiency, shows great initiative, and has a positive attitude, the engineering officer may be appointed as Second Engineering Officer on a ship at sea.  He/she will serve at sea for a further 24 months, interspersed with leave, before attempting the oral examination (arranged by SAMSA) for the Chief Engineering Certificate of Competency (sometimes called Class 1 Engineering).  If the oral examination for the Chief Engineering Certificate of Competency is successful, and provided he/she has a good record of efficiency, shows great initiative, and has a positive attitude, the engineering officer may be appointed as Chief Engineering Officer on a ship at sea.  Responsibilities of a Chief Engineering Officer on a large ship o Inspection, servicing, maintenance and repair, replacement or renewal of machinery and equipment in accordance with Ship-owner’s preventative maintenance programs, maker’s guidelines and classification society requirements. o Condition-monitoring, fault-finding, diagnosis of faults and correction of problems on machinery and systems to avoid breakdowns costly in terms of money, time and safety risk. o Record-keeping (fuel consumption, maintenance programme, etc.) o Compliance with applicable company and international rules and regulations. o Preparedness for operational emergencies such as fires, engine breakdowns, “black outs”, etc. o Maintain inventory of stock of service-ready overhauled and new spare parts, repair materials, consumables, etc. o Ensuring that the ship has sufficient reserves of fuel, oil and water (if a steamship – for boilers). o Organising and supervision of repairs by ship’s own staff of by shore contractors as required. o Team-building, mentoring and training Cadets and Junior Engineering Officers o Encouraging on-going professional development of his engineering staff. A Special Note for those wishing to become a Chief Engineering Officer 25 | P a g e

Downloaded from hlayiso.com If the position of ship’s Master is likened to the Mayor or General Manager of a small city or town, the ship’s Chief Engineering Officer will be the Town Engineer, responsible for provision and delivery of all services necessary to keep the town’s businesses and industries running and its suburbs safe and comfortable. Like the Master, the Chief Engineering Officer needs to be commercially-oriented, recognising the fact that a ship makes money only when it is at sea, and any delays for whatever reason cost money. On most ships, the engineering department budget represents the second-highest ship-running expense (after crewing costs); thus the Chief Engineer is charged with being careful to balance engineering excellence on the one hand, and profitability on the other hand. The Chief Engineer’s judgment and decision-making can – and does – make a significant impact on the commercial success of his ship over time, and on operational safety and profitability. It is therefore essential that Master and Chief Engineering Officer work very closely and liaise with each other on all matters that could affect the outcome. The Chief Engineering Officer is responsible to the ship’s Master for the safe and reliable operation of all machinery and electric, pneumatic and hydraulic equipment on board, thereby ensuring availability of propulsion, power, services and systems necessary for safe and speedy navigation and the handling of cargo. He is also responsible to the Master for the proper behaviour and discipline of all engineering staff, and for ensuring that the sihp meets the requirements of all international regulations. Periodic surveys of the ship’s machinery and systems by various international and local authorities mean that the machinery must be up to standard at all times. . As an executive manager, the Chief Engineering Officer is responsible to the ship-owner for the best utilization of all resources at his disposal, i.e. maintenance budgets, engineering staff, stores, spare parts, materials, and maintenance time opportunities, to get the best out of the engineering staff and the machinery, and ensuring that fuel consumption is kept to a minimum performance of men and machinery and fuel economy, minimisation of waste, and while always maintaining full compliance with safety and statutory requirements and the Master’s orders. The Chief Engineering Officer will delegate specific duties and activities to his officers. The following are examples of the more usual operational tasks and routines delegated by the Chief Engineering Officer to his subordinate officers. As to which specific officer they are delegated depends on the type and size of vessel and the vessel’s manning scale. Until about the 1970’s such delegation tended to be made according to long-standing tradition. However this has changed with the advent of today’s sophisticated and specialised ships and equally modern and well-trained and educated shipboard staff. It also depends upon individual ship-owners’ philosophies and the ships’ operating regimen. Some short-sea 26 | P a g e

Downloaded from hlayiso.com trading vessels, or quick-turn-round vessels might have “riding squads” or shore-based worksquads to undertake scheduled servicing, maintenance and repairs. The major responsibilities of the Chief Engineering Officer are:  Inspection, servicing, maintenance and repair, replacement or renewal of machinery and equipment in accordance with Ship-owner’s preventative maintenance programs, maker’s guidelines and classification society requirements.  Condition-monitoring, fault-finding, diagnosis of faults and correction of problems on machinery and systems to avoid breakdowns costly in terms of money, time and safety risk. Nowadays engineers’ knowledge and experience is often aided by vibration-monitoring equipment, infra-red cameras and direct real-time satellite link to equipment makers’ service departments.  Maintenance of Records, both statutory and operational. International maritime regulations require accurate records to be maintained of certain activities dealing with safety and pollution control, and these are subject to unannounced inspection by port state inspectors, charterers’ inspectors and always following an accident or incident. Such records would include (but not be limited to) staff hours of work and rest periods; testing and re-certification of engine room lifting equipment; disposal of oily- and solid waste; switching between low- and high-sulphur fuels; servicing records and running hours of machinery; condition analysis of fuel- and lubricating oils; and analysis and treatment of boiler water; performance of main engine and generator engines; fuel consumption statistics; etc.  Compliance with applicable Company, International and Local Regulations. This entails a proper understanding of the intent and reach of these instruments, and diligent commitment to their implementation. Ranging from the Ship-owner’s own ISM Code and in-house ISO quality objectives through IMO qualification standards to Classification Society rules, the Chief Engineering Officer must be thoroughly familiar with all that are appropriate to his ship and operation, and familiarise his staff with their objectives.  Preparedness for Operational Emergencies. The diligent Chief Engineering Officer will regularly practise drills with his engineering staff in reaction to emergency scenarios he conceives in preparing to “expect the unexpected”. This is to ensure that if and when the real thing happens, reaction will be swift and appropriate. Such drills would typically cover not only the usually-imagined fires and flooding, but scenarios of loss of fuel- or oil-pressure during critical times such as when manoeuvring or during heavy weather, electrical “black-out”, inability to start or reverse the engine, or total loss of electronic automation or remote control of the plant. This latter event would involve going back to basics and operating everything by hand. 27 | P a g e

Downloaded from hlayiso.com  Maintain inventory of stock of service-ready overhauled and new spare parts, repair materials, consumables, etc. The Classification Society dictates the minimum number and type of spare machinery parts to be carried, however the conscientious ship-owner normally stipulates a greater variety and quantity of spares and general stock based on operational experience and recommendations of the Chief Engineering Officer. These need to be ready for use at a moment’s notice in the event of a breakdown if safety and loss of hire revenue is not to be risked. Such items cover a diverse range from working and wearing parts of engines and machines, to electronic circuit boards, high-voltage switches and breakers, ball bearings, navigation light bulbs, shaft seals of various sizes and types, pipes, hoses and fittings of assorted sizes, welding rods, tap washers, nuts and bolts, printer ink cartridges, refrigeration gas, torch batteries, cleaning materials, etc. Of course the Chief Engineering Officer must always see that he has sufficient reserves of fuel, oil and water (if a steamship – for boilers) to execute the voyage safely allowing for possible longer passage time due to heavy weather, hard- steaming, diversion, or if some fuel or oil becomes unusable due to water-contamination, etc. Here he has to liaise closely with the Master as carrying extra load of fuel could result in a loss of cargo deadweight and hence affect the voyage profitability.  Organising and Supervision of Repairs by ship’s own staff of by shore contractors as required. The Chief Engineer has to ensure that such repairs or major servicing work is done correctly and thoroughly, and in accordance with the requirements and standards of the Classification Society or equipment maker, as appropriate. The Chief Engineer is responsible for “signing-off” on all such work as being fit for purpose and safe for sea, and in respect of contractors’ repair work – that their invoiced scope of work and labour hours correctly reflect the work actually performed.  Bunkering and record-keeping with regard to bunker consumption and slops.  Team-building, mentoring and training Cadets and Junior Engineering Officers, and encouraging on-going professional development of his engineering staff. The Chief Engineering Officer must stimulate and maintain a “learning” climate in which will encourage all members of the team not only to work together, but to better themselves by advancing their skills, knowledge and qualifications. He /she must share knowledge learned the hard way by mistakes and successes, and actively encourage a desire to succeed and move up the rank ladder. Having an enthusiastic “well-oiled” team will considerably ease the burden of the Chief Engineering Officer in the discharge of his / her onerous responsibilities Activity1 Identify a career path and explain how you would achieve it. (Include the subject choices and the minimum requirement to enter into the University and all short courses needed in that career. 28 | P a g e

Downloaded from hlayiso.com HARBOUR AS THE INTERFACE [NOTES] A ship will come to a harbour to do one or more of the following  load and/or discharge cargo  take on fuel (“to bunker”)  take on stores (food, deck stores or engineroom stores)  undergo repairs or maintenance (which may include drydocking)  in the case of passenger ships, to land and embark passengers and to enable passengers to visit tourist sites.  to land an injured or ill seafarer or to land survivors from a maritime accident SOME TERMS RELATING TO PORTS :  Hinterland is the area served by a port. This is the area to which cargo goes from the port and the area from which cargo comes for export through that port. The map below shows the hinterlands of each southern African port – M = Maputo, R = Richards Bay, D = Durban, E = East London, P = Port Elizabeth and Ngqura; C = Cape Town, S = Saldanha Bay; L = Luderitz and W = Walvis Bay.  Break-of-bulk Point : This term applies to any place where the medium of transport changes, e.g., a port where cargo is brought to the port by road or rail and then leaves the port by ship. It also applies to a railway siding where cargo arrives by train and leaves by truck.  Trans-shipment : Cargo sometimes arrives in a port aboard one ship and is then transferred (trans- shipped) to another ship for movement to another port. The process of transferring cargo from one ship to another is called trans-shipment.  Hub Port (sometimes called an Entrepot) : Cargo is often brought by ships to a major port and is then carried to other ports (often smaller ports or ports off the main shipping routes) by another ship, 29 | P a g e

Downloaded from hlayiso.com called a feeder ship. The feeder ship may also bring cargo from smaller ports or ports off the shipping routes to a major port (a hub port). An example is as follows : The containership Sea Eagle arrives in Cape Town from Europe and, besides containers for the Western Cape, discharges 45 containers that are bound for West Africa. Another containership Antonio arrives in Cape Town from Asia and discharges 85 containers that are also bound for West Africa. Similarly, Cape Agulhas brings 42 containers from South America and bound for West Africa. Three other ships bring to Cape Town 154 containers bound for West Africa. The feeder ship African Dream arrives in Cape Town and loads all these containers to take them to West Africa. The reasons for the ships not going to West Africa might be: • the ports are too far off the course of the ships, and/or • the ports might be too small or too shallow to accommodate the large containerships, and/or • the number of containers to be discharged is too small to warrant the expense of a call by a large containership at the West African ports, and/or • the West African ports might not have container gantry cranes and the containership is probably gearless. African Dream will bring containers from West Africa to Cape Town for onward shipment to South America, Asia and Europe. In this context, Cape Town is a hub port for West Africa. Durban is a hub port for East Africa and the Indian Ocean Islands, while Rotterdam is a hub port for north- west Europe.  Free trade area : This is an area (usually in or near a port) where trade can be conducted without any customs duty being paid. This is usually to attract industry or other commercial activities to an area.  Link between sea transport and road or rail : When a cargo is brought to a port for onward movement to an inland centre – or even to a nearby warehouse – road or rail transport needs to be used to move the cargo from the harbour to the place to which the cargo is being sent. If a grain cargo arrives in Cape Town from Argentina, the grain is loaded into ether railway trucks or road trucks to be taken to a storage facility which may be close to the harbour or some distance from the harbour. If a bulk cargo needs to be moved some distance from the harbour (e.g. from Cape Town to Bloemfontein) the ship will discharge the grain straight into railway trucks for the journey to Bloemfontein. If a shorter distance is involved (e.g. Cape Town to Malmesbury), the ship will probably discharge the grain directly into road trucks for movement to Malmesbury. Although some containers are moved between the ports and the Johannesburg area (usually to the City Deep Inland Container Terminal) by train, many containers are moved to and from inland centres by road truck. ACTIVITY 1 HARBOUR AS TRANSPORT INTERFACE 10 MARKS 30 | P a g e

Downloaded from hlayiso.com 1. Match Column A with Column B, write the correct letter next to the correct number. e.g. 1.6. F COLUMN A COLUMN B 1.1. A process of transferring cargo from one ship to another. A. Hub Port 1.2. This is an area where trade can be conducted without any customs duty B. Trans-shipment being paid. 1.3. Is the area served by a port. C. Break of Bulk Point 1.4. A major port where cargo is often brought by big ships, then carried to other D. Free Trade Area ports by smaller ships. 1.5. It applies to any place to any place where medium of transport changes. E. Hinterland 2×5=10 ACTIVITY 2 HARBOUR AS TRANSPORT INTERFACE 10 MARKS Oil production in South Africa 2. South Africa requires roughly 750 000 metric tons of oil everyday. The Sable Oil Field (the Oil Field is located 150 km off the Southern coast, Cape Town, South Africa) is expected to produce 20 to 25 million metric tons of oil in the next Three years. Initially, approximately 40 000 metric tons of the crude oil will be produced everyday, replacing about 7% of South Africa’s import requirements of crude oil. South African company Sabble Oil Field is planning to import the required crude oil from Russia. That oil will be discharged at Isipingo Bouy and moved to Oil field. 2.1. Describe TWO modes of transport the crude oil is likely to use in their journey from Russia to the Oil Field. (4) 2.2. What type of ship would be used to carry this consignment from Russia to Isipingo Bouy? (2) 2.3. What type of ship would be best suited to the following cargoes? a. 42 000 tons of coal grain from Richardsbay port to Shanghai port. (2) b. 2 900 40-foot containers of fruits and vegetables from Durban to Walvis bay. (2) SHIP OWNING & FINANCING NOTES Anyone can become a ship owner – an individual, a company, a bank, a consortium of companies, or other group. Whoever owns a ship wants the ship to be an investment in terms of its ability to earn money by moving cargo, or by carrying passengers, or by providing a service (e.g. tugs or survey ships or oil rigs, etc.) Profits, of course, are important to the shipowner. 31 | P a g e

Downloaded from hlayiso.com Ship Finance A shipowner has significant financial burden as costs of buying and operating a ship can be very high. Capital Costs (The cost of buying or building a ship) Ships are expensive – design fees, steel, electronic systems, machinery, labour, survey fees, and many other costs need to be paid and the total cost of buying a ship will be many millions. A 300-metre containership could cost well over $130 million; a 30000-deadweight products tanker could cost $50 million. When buying or building a ship, the major problem for the shipowner is to find the money. Whatever the owner cannot provide himself, he will have to get a loan (also called a mortgage) from banks for the rest – and pay interest on that bank loan. A shipowner may want to “write the ship off” over 15 years which means that the ship is debt-free after 15 years. For example : If the owner wishes to write the ship off over 15 years, he will have to pay back at least $3 000 000 plus interest per year. Depending on the interest rate that will be charged, the interest that he has to pay each year could be around $4 million for the first few years. The amount of interest will reduce over the 15 years, but he will end up paying a lot more than the $45 million he owed the bank in the first place!  Operating Costs – These are costs that the owner needs to pay to keep the ship operating. Those costs include o Insurance cover for the ship (loss of or damage to the ship– hull and machinery insurance – see Grade 12 work) and for any liability that the ship may incur such as damage to cargo, damage to other ships or other objects, the cost of necessary diversions, injury to crew members or visitors to the ship – Protection & Indemnity cover – see Grade 12 work). Surcharges may be added if the ship is to pass through a pirate-infested area or close to a war zone. o Maintenance of the ship and drydocking. These costs include ensuring that the ship is equipped with safety equipment and life-saving equipment, that the lifeboats and fie-fighting equipment are kept properly maintained – and that the ship is maintained according to the international regulations relating to seaworthiness and safety. o Crew’s salaries o Registration costs – These are payable to the authority in the country where the ship is registered. The costs of the classification society (see Grade 12 work) also have to be paid. 32 | P a g e

Downloaded from hlayiso.com o Administration costs – These relate to the salaries and other costs surrounding the shore staff, the cost of the company’s offices, etc. o Tax payable by the shipowner o Stores and spares for the ship  Depreciation on value of the ship. This includes the repayment of the loan but also should include making provision for the eventual replacement of the ship after 15 or 20 years.  Fuel Costs – These are usually budgeted for separately. Fuel is often bought in bulk via a specialist bunkering company.  Port Costs – These include  Charges for tugs, pilotage, and berthing crews  Time alongside in a port (also known as port dues)  Light dues – In South Africa, these are payable on one call per six months and help to pay for the maintenance of navigational aids along the coast and in the approaches to the harbour.  Use of shoreside cranes (if applicable)  Canal/Waterway Fees – If the ship passes through a canal (e.g. Suez Canal, Panama Canal, etc) a transit tariff is charged.  Sundry Costs – These include port agents’ fees, fees charged by local maritime authorities, stevedoring (usually recovered from the cargo owner). Other Responsibilities of the Ship Owner Besides the financing of the ship’s operation, an owner is also responsible for other important matters  Cargo – The owner may find cargo himself, and in the case of liner companies such as Maersk Line or MSC, the company has a team of representatives whose job is to find cargo for the ships. Bulk carrier or tanker owners usually place their ships in the charter market where shipbrokers find cargoes – either one-off cargoes or regular cargoes such as moving coal between Richards Bay and China on a regular basis, or moving oil products along the South African coast – or along the European coast.  Crewing The owner may wish to crew the ship himself, or he may engage a crewing agency to crew the entire ship or to find certain officers or crewmembers for the ship. Other issues regarding the crewing of ships include the following : o Every ship has a minimum manning requirement (i.e. how many crew members have to be aboard; which ranks have to be aboard.) o All crewmembers need to be qualified for their rank in terms of an international regulation called the Standards for Training and Certification of Watchkeepers. For example, a small ship that will 33 | P a g e

Downloaded from hlayiso.com trade only along the South African coast will have different requirements in terms of qualifications of her officers than a large containership trading between South Africa and Europe. o Crewmembers are contracted as employees of the company or they are contracted via a crewing agency to serve on a specific ship, in a specific rank, at a specific salary and for a specific time. o Countries such as Philippines, India, Croatia, Poland, and Ukraine supply thousands of seafarers to ships across the world There are serious disadvantages of the process of contract crewing from elsewhere. These include :-  Different nationalities aboard a ship can cause language confusion and ineffective communication.  During emergencies, loss of life or serious damage to the ship can occur due to differences in language  Crew on contract are not as accountable for damage or lack of maintenance to the ship as “company- employed” crewmembers. (A contracted seafarer may not return to ships of that company again and therefore may not display the same loyalty as a “company-employed” person. Legal Matters – Because shipping is an international business and has to operate according to international laws and regulations, most large shipping companies have an in-house legal department. Smaller companies may engage outside maritime legal experts to act on their behalf. The legal team would handle a number of issues relating to the operation of the company. Examples include the following  registration of the company’s ships,  ensure the ships’ insurance cover is appropriate  provide updates on changes to legal requirements for shipsJJMKHKHHGHG  check any legal documents that the company needs to sign e.g. charter parties, agreements or contract with crewing agencies, ship managers, bunker suppliers or ship chandlers, etc.  handle any insurance claims against the company for cargo damage,  other matters where legal claims could arise or where the correct legal processes need to be followed. SHIP MANAGEMENT Some shipowners prefer to place their ships under the management of specialist companies who manage the vessels. This might be because the owner does not have the resources or experience to manage the ship properly, or the company has only a few ships and it is difficult to operate a few ships economically while retaining all the necessary management departments ashore. The benefits – particularly to owners of small fleets – of placing their ships under ship management companies include the following :  The management company – which probably has a number of other ships under its control – can negotiate better deals on bunker purchases, supplies of stores, drydocking fees, and even canal transit 34 | P a g e

Downloaded from hlayiso.com tariffs. (A two-ship owner would not get as good a deal from a supplier as a management company that may be negotiating to buy supplies or to arrange drydocking or refits for 20 or 30 ships.)  The shipowner may have not experience in shipping and can benefit from the expertise of those in the management company. This is particularly important with regard to legal, technical and operational issues. ACTIVITY 3 SHIP OWNING & MANAGEMENT 14 MARKS 3. Imagine that you are interested in becoming a shipowner in order to ship coal from South Africa to international markets. You are interested in purchasing a new vessel and in registering your vessel under the South Africa flag with aims to crew the vessel using local seafarers. 3.1. What type of vessel would you order? AND why? (3) 3.2. Which South African port would provide the most suitable home port for your new vessel? (2) 3.3. What would your duties as the shipowner be with regard to the vessel and the crew.( 4) 3.4. What would be the benefit of using a ship management company? (2) 3.5. Discuss the capital costs and operating costs of ship. (4) SHIP BROKING  Shipbrokers are intermediaries between the two parties to a contract, whether they are Shipowners and Charterers.  They may act for one principal and occasionally as the sole broker between the two contracting parties.  Shipbrokers must earn (commissions) by concluding fixtures.  Brokerage :- a fee or commission charged by a broker  A ship broker is a company (or person) who performs important roles in any of the following :  Assists a shipowner to buy or sell a ship;  Assists a cargo owner to find a suitable ship to move his cargo. (This is especially important in dry bulk trades or the bulk liquid trades where a suitable bulk carrier or tanker is required to move a particular cargo. It is also applicable when a containership operator wants to charter a ship, and indeed in other areas of shipping where anchor handling tugs, drillships and other types of vessel are also needed for specific time periods.)  Assists a shipowner to find cargoes for his ships. ACTIVITY 4 SHIP BROKING 10 MARKS 35 | P a g e

Downloaded from hlayiso.com 4. Answer the following questions:- 4.1. What is a ship broker? (2) 4.2. Give THREE roles of a ship broker. (6) 4.3. What is a brokerage? (2) SHIP CHARTERING NOTES Many ships are chartered (hired) from their owners for specific periods. This is especially important in moving dry and liquid bulk cargoes and most bulk carrier and tankers are chartered from their owners by cargo owners to move specific cargoes. Reasons for Chartering a Ship rather than buying a Ship  Large amounts of capital are required to buy a ship. It may be better to charter a ship rather than making a large financial commitment to buy one.  Trade might be uncertain. Therefore a ship on charter for a few months does not need the long-term capital investment that would be needed to build or buy a ship.  To build a ship takes time – perhaps one or two years. A ship can be chartered within a much shorter time.  The need for a ship might be short-term, or for a season. (See Seasonal Cargoes)  A company might need to charter a ship for a short period to replace one of its ships that is out of service for a refit, or while undergoing repairs following a breakdown or collision.  Additional cargo may be available for only one or two voyages, making it sensible to charter a ship for those voyages only. Types of Charter A ship may be chartered for a short period (a single voyage or a few months) or for a longer period, depending on the circumstances.  Voyage Charter – This type of charter is for one voyage only (e.g. for a voyage from Richards Bay to China with 150 000 tons of coal). For a voyage charter, the charter rate is usually given in US dollars per ton of cargo (e.g. the coal might be shipped from Richards Bay to China at $22 per ton). While the ship is on a voyage charter, the ship’s owner remains responsible for crewing, insurance, maintenance, depreciation and other costs relating to the operation of the ship. The owner recoups these costs from the freight rate (e.g. $22 per ton). The charterer will be responsible for fuel costs, ports costs, any canal transit costs, and any other costs relating to the voyage.  Time Charter – A ship may be chartered for a specific time (e.g. three months, six months, a year, or longer), and the charter rate is usually given as a daily rate (e.g. $10 000 per day). While the ship is on 36 | P a g e

Downloaded from hlayiso.com a time charter, the ship’s owner remains responsible for crewing, insurance, maintenance, depreciation and other costs relating to the operation of the ship. The owner recoups these costs from the daily rate (e.g. $10 000 per day). The charterer will be responsible for fuel costs, ports costs, any canal transit costs, and any other costs relating to the voyage.  Bare-boat Charter – To charter a ship for longer time (e.g. for 3 years or 10 years) she may be taken on a Bare-boat Charter, e.g. chartered for 5 years at $12 000 per day. While the ship is on a bare-boat charter, the charterer is responsible for crewing, insurance, maintenance, depreciation and other costs relating to the operation of the ship. The charterer will also be responsible for fuel costs, ports costs, any canal transit costs, and any other costs relating to the voyage. The charterer operates the ship as if she belongs to the charterer. Once the charter period has expired, the ship has to be returned to the owner in the same condition that she was in on delivery to the charterer. Fair wear and tear are allowed for the time that the ship was on charter. Freight Rates and Charter Rates fluctuate according to various Factors Demand for Ships  High demand for ships = Higher freight rates or charter rates  Low demand for ships = Lower freight rates or charter rates Volume of Cargo available for Shipment relative to the number of Ships available  Much Cargo available = Greater Demand for Ships = Higher Freight/Charter Rates  Little Cargo available = Less Demand for Ships = Lower Freight/Charter Rates Examples of times when much cargo was available Rebuilding of Europe and Japan after World War 2 Huge volumes of construction materials were required to rebuild the cities, towns and infrastructure that had been badly damaged during the war. Huge volumes of grain and other food needed to be moved to Europe and Japan where people were starving as many farmlands and animals had been destroyed, and farming operations had been badly disrupted by the war. To bring the construction materials and food (largely from North America, South America, southern Africa and Australia) many ships were required. Sadly thousands of ships had been destroyed during the war, and there was a severe shortage of vessels. The demand for ships to move these cargoes and the shortage of ships combined to bring high freight & charter rates. 37 | P a g e

Downloaded from hlayiso.com Seasonal Cargoes This is particularly of note during the South African fruit season when reefer ships are needed to load bulk fruit cargoes, but out of the fruit season, they are not required in South Africa and have to find cargoes elsewhere. Another example of the seasonal demand for ships is during the northern hemisphere’s long, cold and dark winter when extra electricity is needed for heating and lighting and when heating oil is needed for domestic heating systems. Therefore, there is a demand for Capesize bulkers to move coal for northern hemisphere power stations from about September to February, and for tankers to move oil for refining for to produce heating oil for various heating systems. For the rest of the year, there is not such a demand for Capesize bulk carriers or for tankers to move cargoes to Europe and northern Asia. Drought in some regions Drought in a region means that food (especially grain) needs to be imported. This in turn means that ships need to be chartered to carry these extra grain cargoes. Because of the demand for ships, freight rates and charter rates increase. ACTIVITY 5 SHIP CHARTERING 40 MARKS 5. Country X experiences a severe drought and its grain harvest is 4 200 000 tons lower than expected. It needs to import this shortage of grain from countries Y (2 400 000 tons) and Z (1 800 000 tons). 5.1. How many Panamax shiploads (cargo capacity about 60 000 tons) will need to be chartered to move the grain from Country Y to Country X? (4) 5.2. Because of draught limitations in ports in Country Z, Handysize ships (cargo capacity about 30 000 tons) will need to bring the grain from Country Z to Country X. a) How many shiploads will be needed to move this amount of grain? (4) 5.3. Each ship will take 3 days to load the cargo (including pre-loading surveys, etc), 11 days to steam from Country Z to Country X, 6 days to discharge the cargo in Country X, and another 11 days to return to Country Z where the ship will spend about 4 days at anchor during the voyage. (A round voyage is calculated by adding the time loading at Country Z, steaming time to Country X, discharging time at Country X, steaming time back to Country Z and time at anchor.) a) How long will one round voyage take? (6) What effect will this demand for Handysize ships have on the charter rates for Handysize ships in that region? (2) 38 | P a g e

Downloaded from hlayiso.com 5.4. A Handysize ship (on a time charter at $9 000 per day) will make three round voyages from Country Z to Country X, and then will load in Country Z for a one-way voyage to Country X. a) How many days will she be on charter? (6) b) How much will she earn during this charter? (4) 5.5. Who is responsible for crewing the ship while she is on this time charter? (2) 5.6. Who is responsible for the fuel costs during this time on charter? (2) Economic Growth of China (about 1995 to 2007) Rapid urbanisation of the Chinese people (i.e. the movement of thousands of people form the rural areas to the Chinese cities) meant that large-scale construction projects began in the cities. Houses, dams, powerstations, powerlines, pipelines, schools, roads, railways, canals and bridges were built, creating an unprecedented demand for construction materials (millions of tons of steel, cement, timber, machinery, etc.) To make the steel, China began to import millions of tons of iron ore, coal and other minerals, as well as importing steel. Commercial and private vehicles began to be built in China as never before, creating a secondary demand for steel that either had to be imported or made in China. The Chinese shipbuilding industry as expanded, requiring more steel or the raw materials for steel to be imported. To supply the increased demand for electricity, powerstations had to be built, and more coal and oil imported. To import all this material, there was a massive demand for ships that increased freight rates and charter rates to levels not experienced before. Rates soared – some Capesizes were chartered at over $200 000 per day (from around $40 000 a day); most other bulkers’ and tanker rates were also much higher than usual. Because the offshore oil industry had an expanding market for its product, the industry expanded, creating a demand for rigs, drilling ships, offshore supply vessels, pipelayers, survey vessels and tugs. The charter rates for all these vessels increased to extremely high levels. Some anchor handling tugs were on charter for around $100 000 per day! Because Chinese industry developed quickly during this time, containerships also benefited as there was a lot of demand for container space to move Chinese electronic goods, textiles, clothing and other commodities to Europe, North America and elsewhere. More money available in China also meant that Chinese people were able to buy more goods from Europe, North America and elsewhere. Therefore containerships trading to China were carrying full or nearly full loads of containers in both directions. This meant that the rates to move containers increased as well. This gave rise to the development of really big containerships – for example, Maersk Line built their E Class ships. (Emma Maersk came out in 2006 with a capacity of around 13 000 teu.) Then they developed their 39 | P a g e

Downloaded from hlayiso.com Triple-E Class ships. (McKinney Moller Maersk and her 19 sisterships with a capacity of around 18 000 teu entered service from 2013.) The abnormal demand for bulk carriers during the Chinese growth period led to a cascade effect on charter rates. This occurs when an abnormal demand for Capesize ships exceeds the supply of those vessels, causing a large increase in the charter rates for these ships. In addition, because the available Capesize ships cannot carry all the cargo that is available, Panamax ships are used to carry some of the Capesize ships’ cargoes. This creates a demand for Panamax ships, and raises their charter rates. Because there are too few Panamax bulkers available to carry this cargo, Handysize bulkers are then used to move cargoes that Panamaxes should have carried. Handysize charter rates then begin to increase. If there is an abnormal demand for ships to carry a vast amount of cargo (as happened during the Chinese economic boom), all types of ships benefit EXAMPLES OF TIMES WHEN LESS CARGO WA AVAILABLE During Trade Sanctions against South Africa up to 1990 Because trade sanctions against South Africa during the apartheid times had taken effect less cargo was available and fewer ships were needed. Lower freight and charter rates were being experienced. At the start of the container era, the South Africa-Europe Container Service used 9 large containerships and four large ro-ro ships. By 1988, the fleet had been reduced to four containerships and the ro-ro ships had been withdrawn, partly because their countries of registry (France and Sweden) had stopped official trade ties with South Africa and partly because the cargo volume had declined. Once President FW de Klerk announced the abolition of apartheid in 1990 and once Nelson Mandela had been released from prison, sanctions were withdrawn, and trade began to boom. This saw the introduction of several additional ships and the entry of new companies to the South African trade. Because more cargo became available for shipment, freight and charter rates increased. During Asian Economic Crisis (about 1997) Most Asian countries experienced an economic slow-down in the late 1990s. This meant that, to get foreign exchange, countries such as Korea continued exporting machinery, vehicles, consumer goods, electronic equipment and textiles, but there was little money available among consumers to buy imported goods. Exports from Asia continued to provide good cargoes for containerships on the Asia-Europe services, but imports from Europe declined. This meant that ships sailing from Asia to Europe had reasonable cargo volumes aboard, but returned to Asia with little cargo. The imbalance of trade caused financial difficulties for several companies. 40 | P a g e

Downloaded from hlayiso.com The “Flattening” of the Chinese Economy (about 2008 to 2015) The urbanisation rate in China slowed, resulting in a reduction in the development of housing and infrastructure. This reduced the demand for steel, cement, iron ore, coal and other minerals. There was a lower demand for cargo space on ships, and a lower demand for ships. This lowered the freight and charter rates to the extent that some ships became uneconomical to operate. Some were laid up; older or uneconomical vessels were scrapped and others were placed on “slow steaming”. (This is where ships are ordered to steam more slowly than usual. This reduces their fuel consumption, and reduces the cost of a voyage. The other advantage of slow steaming is that a voyage takes longer, and therefore more ships are needed to maintain the usual sailing schedule.) Surplus of Ships This occurs either through a reduction in available cargoes, or when too many ships come into service on a particular trade. This happened when many large containerships came onto the Europe-Asia service at a time when cargo volumes had dropped. Within a few years, the large ships with their large container capacity had added so much container space on the Asia-Europe trade that there was spare space and that resulted in a drop in the freight rates for containers. Lower freight and charter rates gave shipowners lower profits (or even losses), and some ships were laid up, some were scrapped and some were placed on slow steaming. A similar problem has affected bulk carriers. Because very large ore carriers came into service from 2014, some of the Capesize fleet operating on the ore trades were left without regular cargoes. This meant there was a surplus of these ships, resulting in a decline in freight and charter rates. “Credit Crunch” of 2008 to 2013 For various reasons, some major banks in North America (and later in Britain and Europe) got into difficulties because of complex reasons relating to credit that they had given. It meant that they had less money available for lending. This meant that the banks had to limit their lending, and there was less money available for their customers to spend, particularly on luxury items such as cars, electronic goods, and textiles. Because there was lower demand for such items, countries imported fewer of these items, many of which came from Asian industrial countries for the shops of Europe and North America. Therefore, there was less demand for cargo space on ships, particularly on containerships, and a downturn in container shipping was the result. Because there was a lower demand for cargo space on ships, freight rates declined to the point that owners felt that they could not operate as many ships as when times were good. Therefore, some ships were laid 41 | P a g e

Downloaded from hlayiso.com up, others were scrapped, and some were put onto “slow steaming” when they would use less fuel, and therefore were cheaper to operate, although they would take longer to reach their destinations. It also meant that more ships were needed to maintain the schedules of containership lines. Some Capesizes were chartered at cost whereas only a few months previously, they were on charter at rates of around $200000 per day. Some older vessels or those that were proving too expensive to operate in such depressed times were scrapped. CHARTERING PROCEDURES A cargo owner needs cargo moved (or a ship operator needs an additional ship.)  He engages a shipbroker who finds suitable ships.  After meticulous checking of the ships, the charterer chooses a ship, and via the broker, makes a FIRST OFFER.  The ffirst offer includes charter/freight rates and other conditions  The shipowner either accepts or rejects the offer.  Further offers and counter-offers may lead to a charter being FIXED, i.e. the shipowner and the charterer agree to the charter, and a CHARTER PARTY (a special document) is signed by the owner and the charterer. All details in the charter party govern the charter. Similarly, a shipowner may engage the services of a shipbroker to find cargo for his ship. The procedure is the same as outlined above. Bulk carriers such as these Capesize bulk carriers loading iron ore at Saldanha Bay are usually chartered to move specific cargoes. Photograph : Brian Ingpen Some details that are included in the charter party  Name and IMO number of the ship  Date of commencement and end of charter  Port (or range of ports) where the charter begins. 42 | P a g e

Downloaded from hlayiso.com  Port (or range of ports) where the charter will end.  Laycan date when the ship must be at a particular place and ready to load/discharge.  Cargo to be carried (for voyage or time charters)  Exclusions regarding areas of trade, cargoes.  Insurance details  Rates applicable to the charter and payment details  Laytime agreement. (See below.) Voyage Instructions These are issued by the shipowner to the Master, and contain all the basic information in the charter party.  Date of commencement and end of charter  Port (or range of ports) where the charter begins.  Port (or range of ports) where the charter will end.  Laycan date (see below) when the ship must be at a particular place and ready to load/discharge.  Cargo to be carried (for voyage or time charters)  Exclusions regarding areas of trade, cargoes.  Insurance details  Specific instructions to the master regarding the required ship’s speed, fuel consumption, routeing, recording the weather, unusual incidents, etc.  Laytime agreement. (See below.) Definitions Laycan – The dates between which a ship must be a given place (as agreed in the charter party) to start her charter and be ready to load. If the ship is late, the charter can be cancelled or renegotiated. If the ship is early, the shipowner is responsible for all costs up to the starting date and time of the charter. Laytime – The agreed number of hours it will take to load or discharge a ship. This is included in the charter party. If the cargowork takes more time than agreed, the charterer pays the shipowner an agreed amount per hour of delay, which is called demurrage. If the cargowork takes less time than agreed, the shipowner pays the charterer an agreed amount per hour, which is called dispatch. The number of hours and the amount of money paid are in accordance with the charter party. Delays that are caused by factors that are the fault of no one involved in the charter are not subject to demurrage or dispatch. Rain during loading a 43 | P a g e

Downloaded from hlayiso.com weather-sensitive cargo (e.g. cement or grain) or a strike among shoreside workers would not be subject to demurrage of dispatch.  Off Hire – If a ship does not meet her requirements in terms of the charter party (e.g. she cannot maintain the agreed speed because of a machinery problem; she suffers an engine breakdown; a crane breaks down; the ship is detained) the charterer can put her off hire. This means that she will not earn money during the time she will be off hire. Some events do not count as time off hire e.g. a ship diverting to assist a vessel in distress or to land an injured crewmember, or weather-related delays.  Notice of Readiness – When his ship has arrived at a given place to start the charter, the holds or tanks must be ready to receive the cargo. They should be clean and dry. The Master issues to the charterer a notice of readiness that his ship is ready to load. The charterer sends a surveyor to check the condition of the ship. If he is satisfied that the condition of the ship is satisfactory, the surveyor will inform the charterer and instructions will follow that loading can start. If the surveyor finds that the ship has deficiencies and cannot start loading, he will list the deficiencies and refuse to allow loading to start until the deficiencies have been put right. ACTIVITY 6 SHIP CHARTERING 49 MARKS Diana Containerships announces direct continuation of time charter contract for m/v Sagitta with Hapag-Lloyd Diana Containerships Inc. a global shipping company specializing in the ownership of containerships, yesterday announced that, through a separate wholly-owned subsidiary, it has agreed to extend the present time charter contract with Hapag-Lloyd AG, Hamburg, for one of its Panamax container vessels, the m/v SAGITTA. The gross charter rate is US$8,400 per day, minus a 1.25% commission paid to third parties, for a period five (5) months. The new charter period will commence on February 15, 2018. The SAGITTA is a 3,426 TEU container vessel built in 2010. The employment extension of “Sagitta” is anticipated to generate approximately US$756,000 of gross revenue for the minimum scheduled period of the time charter. Diana Containerships Inc.’s fleet currently consists of 11 container vessels (6 PostPanamax and 5 Panamax). The Company, as previously announced, has entered into an agreement to sell two Post-Panamax container vessels, which are expected to be delivered to their new owners at the latest by March 30, 2018. Source: Diana Containerships 44 | P a g e

Downloaded from hlayiso.com 6.1. What is a Panamax? (2) 6.2. In two sentences, explain what the above article is about. (4) 6.3. What does TEU stands for? (2) 6.4. Who the “third parties” are as referred on the article? (2) 6.5. Why must the “third parties” be paid this 1.25% commission? (2) 6.6. What type of charter is m/v SAGITA on? (2) 6.7. Who is the owner and the charterer on this charter? (2) 6.8. What is the name of a document that contains all information concerning this charter? (2) 6.9. Name Five pieces of important information found in the document you answered in 2.4. (5) 6.10. After the charter was fixed, the Master received new voyage instructions. From whom did the master receive voyage instructions? (2) 6.11. Name the two other types of charter. (4) 6.12. How many twenty-foot containers can this ship carry? (2) 6.13. If she is loaded with 2850 20-foot containers from one port, how many 40-foot containers can she load at the next port? (4) 6.14. Look at the details of the ROLLED STEEL cargo to be loaded by Emerald Island that has been chartered to carry cargo from Saldanha Bay to Lisbon in Portugal. The ship has one crane per hatch, and each crane is expected to average about 100 tons per hour. Following is the message from the ship agent: MASTER EMERALD ISLAND YOUR CARGO STOWAGE PLAN: VOYAGE SALDANHA BAY – LISBON. YOUR LAYCAN NOW CHANGED TO 5 TO 8 FEBRUARY 1 HATCH : 5 500 TONS ROLLED STEEL 2 HATCH : 6 600 TONS ROLLED STEEL 3 HATCH : 7 200 TONS ROLLED STEEL 4 HATCH : 7 000 TONS ROLLED STEEL 5 HATCH : 6 000 TONS ROLLED STEEL HAVE HOLDS SWEPT, CLEAN AND DRY AS PER INSTRUCTIONS. PLEASE NOTE THAT THE VARIOUS SURVEYORS WILL MEET THE SHIP ON ARRIVAL. WE ANTICIPATE THAT YOU WILL HAVE TO SERVE NOTICE OF READINESS TO LOAD BY 12:00 6/02. THE FREIGHT RATE OF $18.20 PER TON SECURED. BAYSHIP, SALDANHA BAY 45 | P a g e

Downloaded from hlayiso.com 6.14.1. Will the ship go through Suez Canal? YES/NO (2) 6.14.2. If the ship’s cranes break down during loading, the charterer will put the vessel OF (2) 6.14.3. What kind of charter is this? (2) 6.14.4. Who is responsible for the maintenance of the ship while on this charter? (2) 6.14.5. Who will issue the voyage instructions to the Master? Agent or Owner or Charterer? (2) 6.14.6. Who will issue the notice of readiness? (2) 6.14.7. What does the term “LAYCAN” mean? (2) SHIP SCRAPPING (Also known as Ship recycling) Ships are scrapped when they come to the end of their economic lives i.e. it costs a lot to maintain them. Some charterers will not want to charter an older ship, especially if insurance surcharges apply to cargo shipped in an older vessel. Scrapping is often hastened by low charter rates, making it difficult for owners to make a profit from older vessels. When a ship is approaching a “special survey” (usually every five years) the owner may not wish to spend money on repairs that will be necessary for that ship to pass the special survey. He may choose to scrap the ship instead. The scrapping of a significant number of ships in a relatively short time (e.g. because freight rates or charter rates are low) means that there will be fewer of that type of ship in service. That, in turn, means that when a ship of that type is needed, the charter rate might be higher because of a shortage of that type of ship. If charter and freight rates are high, owners will be reluctant to scrap their ships (even older ships) because they are earning good profits. This happened, for example, in the period from about 2001 to 2007 when charter and freight rates were abnormally high and some Capesize bulkers were earning around $200000 a day! If a ship has been involved in a serious accident (e.g. collision or grounding or fire) the insurers may decide that she is not worth repairing as the repair costs are too high, relative to the value of the ship. She may then be sent for scrap. When an owner decides to scrap a ship, a contract is entered into between the owner and a scrapyard, and the ship is sold to the scrapyard at a price per light ton, i.e. per ton of steel in the ship. The ship is delivered to the scrapyard on a specified date. Major scrapyards are located at Gadani Beach (near Karachi, Pakistan), Alang, (on the west coast of India), in Bangladesh and China. In these three major scrapyards, the ships are run up onto a beach and teams of workers with acetylene torches begin to cut the ship up. In some places, scrapping is done alongside a quay with the last part of the hull being cut up in a drydock. The steel is sent to a nearby smelter for recycling. Other useful items on board (e.g. bedding, galley equipment, furniture and electronic equipment) are sold separately by the scrapyard. 46 | P a g e

Downloaded from hlayiso.com Scrap prices vary according to the number of ships available for scrapping. A regular flow of ships to the scrapyards will mean that the prices will be low, while in times of shipping booms when few ships are sent to scrap, prices will be higher. SHIP BUILDING Shipbuilding is a high-profile, labour-intensive industry. To establish a shipyard with its launching “ways” and highly technical planning offices and workshops requires much capital and highly skilled naval architects, engineers, electronic engineers, technicians and artisans, especially shipwrights, precision welders and heavy-current electricians. In short, shipbuilding is one of the top of the range engineering industries. The fortunes of shipbuilding depend entirely on the fortunes of shipping. In good times, shipbuilding yards are busy with orders for several ships on their books; in times when shipping is not as profitable, few owners will commit large amounts of money to order new ships, and the shipyards suffer a lull. In such times, shipyards may cut their prices to attract orders for new ships so that their highly-skilled workforce can remain employed. (It would be difficult to replace such people.) Once an owner has decided to build a ship, and has secured bank loans to cover the costs, he needs a naval architect to design the ship. (Some shipyards have developed standard designed for common types of ships, e.g. handysize bulkers; product tankers; containerships; tugs, etc. If the ship is to have special characteristics, a special design will be required.) The plans and general specifications for the ship need to be approved by the classification society involved (See Grade 12 work for an explanation of the term classification society.) and the maritime safety authority in the country where the ship will be registered. Once the design and specifications have been approved, the owner and shipyard sign the contract – the yard undertakes to build the ship to the required and approved specifications, while the owner undertakes to pay for the vessel. As soon as the formalities and legal aspects have been finished, the shipyard can begin construction. The naval architect, classification society and maritime authority monitor the construction process from start to finish. Once the ship has been completed (or completed up to a point where the ship can float and no further underwater work is necessary), a ceremony is held to name the ship and, unless she has been constructed in a drydock, to launch the ship. Thorough sea trials of the ship are held during which her performance is checked by the builders, classification society and maritime authority. During this time, her speed, fuel consumption, stability and a range of other characteristics are monitored. If the sea trials and other stability trials are successful, the ship is handed over to the owner. Part of the contract guarantees the ship against breakdown or other malfunction, and the shipyard is obliged to put right anything that goes wrong within a specified time. 47 | P a g e

Downloaded from hlayiso.com SHIP’S AGENCY OPERATION Every ship entering harbour must have an agent. The shipowner appoints the agent in each port of call. (NOTE : If the ship is on charter, the charterer may appoint an agent in a port of call to look after the charterer’s interests.) However, a ship’s agent represents either the shipowner or the charterer – or both. The Role of the Ship’s Agent before the Ship Arrives  He must book a berth for the ship via the Berth Planner in Port Control and submit Form ID100 on the port management system.  The berth must be long enough and the water depth must be deep enough to accommodate the ship.  The wharf area needs to be wide enough for cargo discharge/load (if required).  The wharf must be accessible by train or road truck, if required.  The wharf must be accessible for bunker supply, if necessary.  He must alert Immigration (Home Affairs in South Africa), Custom (SARS) and Port Health regarding the ship’s ETA. o Home Affairs – control of people entering & leaving the country. o Customs – control of goods entering & leaving the country o Port Health – need to ensure that ship is clear of infect diseases.  He must ensure that the ship is “cleared” by the maritime authority in terms of the International Ship and Port Security Code (ISPS)  He must make all arrangements requested by the owner or master of the ship, e.g. o Order fuel for the ship from local bunker supplier o Ensure stevedores are aware of cargo arrangements o Order stores from chandler(s) o Arrange bookings for any crewmember leaving the ship (taxi, accommodation, airline ticket, etc) o Advise all service providers (especially Port Control and owner) of any changes to the ship’s ETA. o Keep the owner and the ship’s master informed of all his actions.  He may need to arrange for a road tanker to collect black water (sewage), grey water (water from showers, the galley, etc) and slops (oily waste). Liquid waste from ships is carefully controlled, and that which may not be discharged at sea, must be landed. The agent will also arrange to have a skip available near the gangway for solid waste. Role of the Agent when the Ship Arrives  The GOOD agent is on the wharf when the ship arrives – irrespective of the time.  He may not board until the ship has been “cleared” by immigration, customs & port health. 48 | P a g e

Downloaded from hlayiso.com  He gives all necessary documents to the master.  He discusses everything that will need to be done while the ship is in port – cargowork, travel/medical arrangements, bunkering, stores deliveries, waste removals, etc.  He brings newspapers, mail, magazines to the ship.  He informs the owner of the ship’s arrival. Role of the Agent while the Ship is in Port  He liaises regularly with the Master (visits the ship perhaps twice a day.)  He ensures that all work (cargowork, bunkering, repairs, storing, etc.) is going according to plan.  He keeps updating the owner on the progress of cargowork, bunkering, repairs, storing, etc.  He keeps updating Port Control of vessel’s ETD. NB : If Port Control is not advised within the required time of a change to the ETA and the tugs and pilot arrive at the ship at the original time of sailing, the company will be charged for their services. Most ports require at least four hours’ notice of sailing – but the longer the notice the better. Role of the Agent when the Ship is about to Sail  He should eensure that all cargowork, bunkering, storing, repairs, etc have been completed.  He should ensure that the draught survey has been completed (if required).  He should ensure that all documentation has been completed.  He should ensure that all crewmembers are aboard – and that the crewlist is complete.  He must ensure that Immigration & Customs have cleared the ship.  He must confirm the ship’s ETD with Port Control who will send tugs, pilot and berthing gang. Role of the Agent as the Ship Sails  He should ensure that he has all the documents, including the latest crewlist.  He should ensure that he has the mail for posting.  He should ensure that disembarking crewmembers have their passports.  He should be the last to leave the ship.  He should wait at the harbour until she has sailed, in case any last minute delays or other problems occur. Role of the Agent after the Ship has Sailed  He should inform the owner and the agent at the next port of the ship’s actual time of departure and her ETA at the next port.  He should ensure that the waste removal company removes the skip.  He should ensure that all the bills for the ship’s stay in port have been received and that they have been paid. 49 | P a g e

Downloaded from hlayiso.com  He must prepare a disbursement account for the owner, covering all expenses incurred while the ship was in port. (The owner will have advanced an amount of money to the agent before the ship arrives. The agent uses this to pay the bills on behalf of the owner. Once the ship has sailed, he prepares the disbursement account that shows all the expenses and he calculates whether the owner owes him any money or whether the owner advanced too much money to the agent, in which case, the agent owes the owner money. The party owing money then settles the account.) Role of the Agent when a Ship calls Off Port Limits Many ships do not enter port but by-pass the port. Yet they may need stores, a crew-change, urgent spares, even fuel or other items. By taking stores or making crew changes off port limits saves the ship time and considerable costs. If the transfer of stores or crewmembers is done by helicopter, the ship need not divert much from her course and need not slow down much. This saves time and fuel. Obviously, a helicopter cannot carry as much stores or as many personnel as a launch. If an injured or ill crewmember needs to be taken off the ship, a helicopter is usually better as the operation is far quicker and the helicopter can fly directly to a hospital.  The agent needs to assess whether a helicopter or a launch will be needed to carry the supplies, crewmembers, etc to or from the ship.  He needs to book the helicopter/launch.  He must advice immigration and customs if anyone is disembarking or embarking off port limits.  Anyone joining the ship will need to be cleared by immigration before going out to the ship.  The agent must ensure that all documents and mail are taken out to the ship.  When on board the ship, the agent must ensure that all documentation is completed by the Master.  He must ensure that disembarking crewmembers have their passports.  He must be mindful of the time – a helicopter has limited time in the air, and costs mount per hour. Even a launch can be expensive.  On his return from the ship, he must take any disembarking crewmembers to immigration and customs.  Sometimes, emergency evacuation of an ill or injured crewmember is necessary. This is done using a launch or helicopter.  The agent needs to alert a doctor or team of medics to accompany the helicopter/launch to ensure that the patient is treated as soon as possible.  All other procedures (immigration, customs, etc) need to be followed, but their timing depends on the condition of the injured/ill person 50 | P a g e

Downloaded from hlayiso.com Role of the Agent when a deceased person needs to be repatriated Occasionally, an agent may need to organise that the body of a deceased crewmember is landed by launch or helicopter.  All his belongings should be brought ashore (with an inventory of those belongings, a copy of the log entry relating to the death, and his passport)  Immigration, customs and port health need to be informed, and an official death certificate showing the cause of death must be issued. If foul play is suspected, the police need to be informed.  Instructions from the next of kin regarding the disposal of the body must be followed implicitly.  The ambassador/consul of the country of the crewmember must be involved if the body has to be sent to the deceased’s home country.  The body is usually repatriated by air. ACTIVITY 7 SHIP AGENCY 34 MARKS 7. A very urgent message from the master of Zonnekus arrives on the agent’s smart phone at 10:30 on 21 November, and he reads it immediately : He ascertains that a helicopter is available but it only has a range of 200 miles (i.e. 100 miles on the outward flight and 100 miles on the return flight; it can hover over the ship for about 30 minutes, and it will have a bit of fuel in a reserve tank.) 51 | P a g e

Downloaded from hlayiso.com 7.1. How many nautical miles must the ship steam to get within range of the helicopter? (4) 7.2. At what time will the ship be in range of the helicopter? (6) 7.3. If the helicopter must be in the air 20 minutes before the ship is within range, what time should the helicopter take off? (4) 7.4. Whom should the agent alert to be at the base to fly out to the ship? (4) 7.5. What other arrangements should the agent make in connection with the injury and landing of Chef Mendez in Durban? (4) 7.6. Assume a 20-minute flight to the ship, 20 minutes hovering while the chef is airlifted off the ship, and a 20-minute return flight. What is the ETA of the helicopter back at the base? (4) 7.7. Assume sunrise is at 05:30 and sunset is at 18:10. Will any part of the flight take place in the dark? YES or NO. (2) 7.8. Assume that the ship will not stop while the chef is being lifted off. What is the ETA of Zonnekus in Durban? (6) BUNKERING (Refueling) Most ships have a conventional engine that propels the vessel, and several generators that provide electricity for the variety of electrical and electronic machinery and equipment. Some ships do not have a main engine but several generators that produce electricity to drive electric motors that propel the ship. Electricity is also used for the ship’s electrical machinery and electronic equipment. Larger ships use the following fuel :  Heavy Fuel OIL (HFO) is used in the ship’s main engine. HFO comes in various grades depending on the ship’s engine: o IFO 380- Intermediate fuel oil with a maximum viscosity of 380 Centistokes (<3.5% sulphur) o IFO 180- Intermediate fuel oil with a maximum viscosity of 180 Centistokes (<3.5% sulphur) o LS 380- Low-sulphur (<1.0%) intermediate fuel oil with a maximum viscosity of 380 Centistokes o LS 180- Low-sulphur (<1.0%) intermediate fuel oil with a maximum viscosity of 180 Centistokes  Marine Gasoil (MGO a more refined product is used in the main engine of some ships, and/or in generators that produce electricity for the variety of uses aboard a ship, such as electronic systems, lighting, pumps, cranes, air conditioning, winches, refrigeration, opening and closing of hatchcovers, and other uses of electricity.  Marine Diesel Oil (MDO) is used in ships’ generators.  Lubricating Oil (“Lubes”) comes in various grades and is used to lubricate machinery on the ship. 52 | P a g e

Downloaded from hlayiso.com Ships bunker from bunker points in the wharf or from bunker barges or from road tankers although these can deliver relatively small amounts at a time. In some sheltered anchorages, ships bunker from bunker barges (or other small tankers) while at anchor. This operation is called ship-to-ship bunkering, Singapore, for example, is a major ship-to-ship bunker port. Some ship-to-ship bunkering occurs in Algoa Bay and occasionally, in the lee of Robben Island or in St Helena Bay. Great care must be taken to avoid accidents while undertaking ship-to-ship bunkering to ensure that no pollution occurs. Bunkering is a very important industry, and owners often buy large volumes of bunkers from suppliers to gain a lower price. Careful calculations are also made to determine where a ship should bunker. Factors such as bunker price at various ports (e.g. the loading port or a port along the route that the ship will steam), any potential delay in taking bunkers during a special call, and the range of the ship are taken into account. STEVEDORING Stevedores are those people who load and discharge cargoes. For each hold being worked, conventional cargoships required teams of about 12 men on the wharf and 12 men in the hold. A five-hatch cargoship working all holds would require about 120 men for one shift. If the ship was to work more than one shift, several hundred stevedores would be required. Modern multi-purpose ships also require large numbers of stevedores to handle break-bulk, neo-bulk or palletized cargoes. SHIP CHANDLING Chandling services provide stores for the ship. These could be engineroom stores and spares, or paint, additional mooring lines, or food, beverages, cleaning equipment and detergents. Some chandling companies specialise in engineroom stores, and others food, while others may specialise in supplies for the deck department. Other chandlers supply the full range of requirements for ships. Much liaison between the ship’s agent and the chandling company is necessary. The agent must inform the chandler of the ship’s requirements well in advance of her arrival date. The chandler will need to order the supplies and have them ready for delivery to the ship as soon as possible after her arrival. For that reason, the agent must provide the ship’s ETA and ETD, as well as the berth where she will be located. He must update the information immediately any change occurs. Locally-produced goods that are provided to a ship as stores are classed as exports and no VAT is charged. However, customs declarations need to be completed regarding the goods delivered to ships. 53 | P a g e

Downloaded from hlayiso.com ACTIVITY 8 SHIP AGENCY 48 MARKS 8. A ship will steam from Port A to Port B, and the owner has the option of calling at Port X along the route to bunker. Distance Port A to Port X 6000 nautical miles Distance Port X to Port B 2550 nautical miles Operating costs $6500 per day Cargo to be carried 40000 tons steel (if full bunkers are carried) Freight rate $42 per ton Service speed 15 knots Bunker capacity 2500 tons Bunkers on board the ship at Port A 450 tons Fuel consumption 35 tons per day at sea only Bunker price at Port A $320 per ton Bunker price at Port X $414 per ton Expected port costs at X if the ship calls there $120000 Expected time in Port X (if calling) 1day 8.1. How many days will the ship take to steam from A to X? (6) 54 | P a g e

Downloaded from hlayiso.com 8.2. How much fuel will she use on that part of the voyage? (4) 8.3. Assume she needs enough fuel to reach X plus five extra days’ steaming. a) How much fuel should she have on board when sailing from Port A? (6) b) How many tons of extra cargo can she carry if she only has on board the required amount for the voyage A to X plus five extra days? (4) 8.4. How much will she earn from the extra cargo carried? (4) 8.5. How many days will the ship take to steam from X to B? (6) 8.6. How much fuel will she use on that part of the voyage? (4) 8.7. Assume she takes only enough fuel at X to steam to Port B plus five days’ extra. a) How much will that fuel cost? (6) 8.8. About 45 ships pass the Cape each day, yet only a few call to work cargo or to bunker. i. Why is it important to encourage these passing ships to bunker in South African ports? (4) ii. What can be done to encourage them to call at South African ports? (4) CARGOWORK Ships earn their revenue from the cargo they carry – bulk cargoes, containers, liquids, vehicles, break-bulk cargoes, heavylift cargoes, and others. In every case, careful planning prior to loading or discharging the cargoes is essential. Cargo Stowage Much of the stowage of cargo is planned by computer, but the following factors have to be taken into account when compiling cargo stowage plans : Port Rotation is the order in which a ship will call at a series of ports, e.g. Rotterdam, Cape Town, Port Elizabeth, and Durban. Cargo has to be loaded with this in mind. For example, if a ship has the port rotation given above, the cargo stowage planners must ensure that cargo for Cape Town cannot be stowed below cargo for Port Elizabeth or Durban. If they do stow Cape Town cargo below any Port Elizabeth cargo, they will have to discharge the Port Elizabeth cargo when the ship arrives in Cape Town, then discharge the Cape Town cargo and re-load the Port Elizabeth cargo. This uses extra time, and in shipping, time costs money. Of course, a tariff has to be paid per cargo lift. Cargo that is stowed below other cargo for a later port (e.g. Cape Town cargo below Port Elizabeth cargo) is known as an overstow. 55 | P a g e

Downloaded from hlayiso.com Stresses on the ship (S) should be kept to a minimum. Therefore cargo should be spread throughout the ship according to its weight – if possible. (A ship where the weight is spread evenly throughout the ship will have an even trim – or a nearly even trim.) Sometimes this is not possible because of other factors (e.g. port rotation, stowage of heavylift cargoes, etc), and careful ballasting of the ship will be necessary. However, as a rule, ship cargo stowage planners try to spread cargo throughout the ship. Hogging or sagging (see diagrams) is avoided by better distribution of cargo throughout the ship. Where a ship goes to one port and discharges a significant amount of cargo, stresses on her hull can occur when she goes to the next port – with some empty or near-empty holds – to discharge the rest of her cargo. Careful ballasting can help to solve this problem, and some ships are designed to have some holds empty of cargo. When loading longer ships (e.g. Capesize bulk carriers), the cargo is generally loaded in a special sequence – see the example of a sequence below when loading a Capesize vessel with only one shiploader. Load Hold 5 – then half-load Hold 3 – then half-load Hold 7 – then half-load hold 2 – then half-load Hold 8 – then load Hold 1 – then half-load Hold 4 – then half-load hold 6 – then load Hold 9. Thereafter, the shiploader will complete loading the holds in the same order given. Such a loading sequence is important to avoid undue stress on the hull of the ship while loading. Obviously, ballasting is important to counter the stresses that build up during loading. 56 | P a g e

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Downloaded from hlayiso.com Stability is important for any ship proceeding to sea, and, again, careful ship cargo stowage planning and ballasting are important to achieve as even a trim as possible. A ship that is down by the stern (the stern is far deeper in the water than the bow) is vulnerable to being over-run by a stern sea, and wind on the side of the bow can affect steering. A ship that is down by the head (the bow is far deeper in the water than the stern) can suffer damage to the fo’c’sle or even hatchcovers to hold 1 or hold 2 in a head sea. In addition, if the stern is well out of the water, the propeller and rudder become less effective, and the propeller can vibrate badly if exposed above the water. A ship with a serious list (where she “leans” towards the port side or the starboard side) will roll awkwardly in heavy seas, and this can lead to the cargo shifting and/or the ship capsizing. Therefore, proper cargo stowage and ballasting can usually rectify these problems. 58 | P a g e

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Downloaded from hlayiso.com Dangerous cargoes, those that are flammable, toxic and/or corrosive, need special care and bear special labels with codes that indicate the category of the contents and treatment should anything go wrong. To avoid exposure to excessive heat, these cargoes are usually stowed on deck, away from the accommodation and engineroom. 60 | P a g e

Downloaded from hlayiso.com Non-compatible cargoes cannot be loaded in the same compartment or in the same container because if they combined, they could cause a fire or give off toxic fumes or present other problems. It could be that one type of cargo will affect the other in terms of smell, e.g. animal hides or fishmeal cannot be stowed in the same hold or in the same container as rolls of textiles or bags of grain. Heavy lifts are items that are unusually heavy such as machinery, mining equipment, railway locomotives or bulldozers. They are stowed either on deck or in the hatch square, the area directly below the hatch. This allows them to be lowered directly to the place of stowage. When being discharged, the heavylift cargo can be hoisted directly out of the hatch without any sideways movement of the cargo, which is difficult to do. 61 | P a g e

Downloaded from hlayiso.com Cargo handling equipment needs to be of adequate power to lift a piece of heavy cargo. The safe working load of a crane (e.g. SWL 20t) is the limit of the crane’s lifting capability. Any cargo that is less than the crane’s safe working load can be stowed on deck within reach of that crane or in a hold served by that crane. Some ships have cranes that can work in tandem. This means that they are specially designed to operate together to lift heavier items, e.g. two cranes with SWL 20t can lift 40 tons when working in tandem. 62 | P a g e

Downloaded from hlayiso.com These two cranes are designed to work in tandem and to lift double their normal safe workingload. Photograph : Brian Ingpen Accessibility to cargo by cranes. Cargo stowage planners prefer to spread the cargo for one port in more than one hold. If the cargo for one port is concentrated in one or two holds, only one or two cranes can work at a time. If the cargo for one port is spread through more holds, more cranes can work the cargo at the same time. This means that cargowork can be completed more quickly and the ship will spend less time in port. 63 | P a g e

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Downloaded from hlayiso.com ACTIVITY 9 CARGO WORK 46 MARKS 9. The following message was received by BAYSHIP, the agents for the bulker Pacific Trader at Richards Bay. Note : Petcoke is a form of coal that is used in the steel industry. 9.1. Using the information given to you in the message, draw a diagram of the ship BOW TO STERN. In addition, note that she has her accommodation and engineroom aft, and that she has five cranes. Show on the diagram all the relevant information contained in the message, including the cargo distribution. (10) 9.2. Assume that the vessel begins discharging at 06:00 on the day AFTER arrival, and that the expected discharge rate is 100 tons per hour per crane. Cranes will operate simultaneously. Breaks amount to 10 hours during her stay in Richards Bay. a) Which hold will determine the discharge time? (2) b) How many hours will it take to discharge the ship – INCLUDING THE BREAKS? (Round off to the next hour!!) (6) c) Assume that she will sail seven hours after discharge is completed. What is her ETD from Richards Bay? (6) (d) What tasks/procedures must be completed during the seven hours between the completion of cargowork and the ship sailing? (4) 65 | P a g e

Downloaded from hlayiso.com 3. Look at the details of the cargo. Assuming that the freight rate is calculated at $26.50 per ton, how much will she actually earn for this voyage? (6) 4. Who carries the cost of the ship arriving before the laycan? The owner or the charterer? (2) 5. Assume that the charter party stipulated that the cargo would be discharged in 74 hours, excluding breaks, and that demurrage or dispatch would be calculated at $3000 per hour. 6.1 Did the cargo take more or less time than 74 hours to discharge excluding breaks? (2) 6.2 Will demurrage or dispatch be enforced? (2) 6.3 Who will need to pay whom? CHARTERER PAYS SHIPOWNER or SHIPOWNER PAYS CHARTERER. (2) 6.4 How much will be paid? (4) TIME IN PORT From the time a ship berths in a port, all efforts are geared to ensure that she sails as soon as possible. Delays cost money as a ship pays port dues for the time she is in port. Delays to cargo work can also cause additional costs if labour has to be kept on standby. To minimize delays, all aspects of her port stay need to be arranged carefully. Cargo work must be thoroughly planned so that work goes smoothly. Cargo work must get under way as soon as possible after she berths. Cargo work must continue with as few interruptions as possible. The best-suited cargo equipment must be used to ensure that the rate of cargo work is maintained. (Some bulk cargoes, for example, can be discharged by using vacuum discharge which will be much faster than using skips.) If necessary, special equipment to handle cargo needs to be arranged before the ship arrives e.g. a heavy lift cargo may need a special crane to discharge the item. Land transport arrangements for the cargo must be made well before the arrival of ship so that loading and/or discharging is not interrupted by a shortage of railway trucks or road trucks. Sufficient workers (stevedores) must be contracted to ensure that a lack of manpower does not delay cargo work. If the cargo is weather-sensitive (e.g. bags of cement; paper; sugar) a special watch will need to be kept if rain is expected, and loading will need to stop immediately rain threatens, and resume immediately the rain is over. If the ship also needs other services while in port (e.g. bunkering, repair work, taking stores, crew changes, etc.) these should be arranged so that they are provided while cargo work is underway. This saves time. 66 | P a g e

Downloaded from hlayiso.com Sometimes, weather will delay a ship from sailing. Strong winds could disrupt container handling or cause a delay in sailing as the pilot believes it is too dangerous to maneuver the ship in the wind. Rain will interrupt loading or discharging of weather-sensitive cargo. A weather delay (e.g. wind causing the stoppage of container handling) will mean that the ship may have to speed up to reach her next port on time. To maintain a faster speed, the ship will use more fuel and that will cost more money. STEVEDORING Stevedores are those people who load and discharge cargoes. For each hold being worked, conventional cargo ships required teams of about 12 men on the wharf and 12 men in the hold. A five-hatch cargo ship working all holds would require about 120 men for one shift. If the ship was to work more than one shift, several hundred stevedores would be required. Modern multi-purpose ships also require large numbers of stevedores to handle break-bulk, neo-bulk or palletized cargoes. In the last few decades, cargo work has been mechanized. Stevedore teams now include people who can operate machinery such as fork-lift trucks, ships’ cranes, various types of ship loaders for bulk cargoes. To handle containers, stevedores need to be numerate and computer literate as they do the various tasks such as checking container numbers, container seals and entering details into the hand-held computer keyboards. Stevedores need to ensure that twist-locks are in place before the containers are loaded onto the deck of containerships or atop another container, that the twist-locks are locked before the ship sails, and that outboard containers are lashed to the deck with lashing rods. On the ship’s arrival at a port, stevedores need to unlock the twist-locks and unlash for all containers to be discharged. Numbers of stevedores required for a containership are far lower than for a ship working break-bulk cargo. Those containers loaded below deck on a containership fit into the fixed slots and do not require any stevedores. SALVAGE OPERATION NOTES Some Definitions  Salvage : The voluntary saving of a ship and/or her cargo from imminent danger.  Salvor : The company involved in providing a salvage service to a ship in danger and/or saving cargo.  Casualty : A ship that is in danger  Lloyd’s Open Form (LOF) : This means that the salvage operation is done with only an agreement between the salvor and the ship owners that the operation will be conducted on a no-cure-no-pay basis. i.e. that the salvor will complete the salvage operation and that the ship will be delivered safely to a “safe haven”. Otherwise, the salvor will receive no pay. 67 | P a g e

Downloaded from hlayiso.com  Scopic : If the casualty appears to be beyond salvage (e.g. the ship has sunk, is breaking up, or burning out) or the operation will be lengthy, the salvage operator may change the contract from Lloyd’s Open Form OF to SCOPIC. All costs plus a reasonable profit are paid to the salvage operator by the casualty’s insurers (P&I Club). The salvage operator may be requested to remain on site to help reduce the possibility of pollution or to remove to reduce the wreck.  Ocean Towage : An operation where a tug takes a vessel in tow when the vessel has broken down but is in no immediate danger, It also applies where a tug is towing a vessel that has no power of its own from one port to another, e.g. an oil rig being towed from Korea to a port in West Africa, or an old vessel is being towed from a port to a scrapyard. The tug’s owners usually negotiate payment in terms of daily hire e.g. $20000 per day that the tug is involved in the operation. The Dangerous South African Coast The South African coast has many characteristics that contribute to accidents at sea.  Large numbers of ships pass the coast (about 14500 ships pass the Cape each year) increasing the chance of a casualty.  Frequent gales and heavy seas off the coast, particularly in winter, increase the chance of damage to ships. The strong winds and heavy seas can also drive immobilised ships ashore.  The rocky coastline increases the chance of a ship becoming a total loss if she goes ashore.  Fog occurs frequently, particularly in the region from Port Elizabeth to north of Walvis Bay in Namibia.  Casualties along the South African Coast  Over 2600 ships are known to have been lost off the coast. (In early years of the sailing ships trading to the east from Europe, many vessels did not return and disappeared without trace, possibly off the South African coast.  More than that have been saved from going ashore or have been refloated after going ashore, or saved from other danger. South African Salvage For over a hundred years, South Africa has had respected tug services that were available to assist ships that  have broken down, (If this has happened off a lee shore, urgent tug assistance is necessary to tow the ship clear of the coast.)  have gone ashore,  have been in a collision 68 | P a g e

Downloaded from hlayiso.com  have been in danger of going ashore,  have been damaged by the heavy seas off the coast and suffered structural damage, cracked plating  have caught fire, or suffered explosions,  are in danger of sinking. The stranding of the tanker Wafra at Cape Agulhas in 1971 and her refloating by the powerful German tug Oceanic and the increasing size of tankers and bulk carriers at the time, showed that the South African harbour tugs would not be able to cope should one of these large vessels become disabled off a lee shore, or suffer other difficulties. This prompted the government to launch the Emergency Standby Towing Vessel concept whereby an emergency standby towing vessels – tug(s) – are on standby for operations at all times. The Emergency Standby Towing Vessels are on contract to the government (Department of Transport) and, after receiving a call-out, have 20 minutes to sail to the aid of the casualty. This idea was South African and was South Africa was the first country to implement this concept. It is now used by many countries. Two large tugs (SA Wolraad Woltemade and SA John Ross) were built and commissioned in 1976. When built, these were the most powerful and fastest tugs in the world. Smit Amandla (formerly SA John Ross) is the current Emergency Standby Towing Vessel and is based in Cape Town.  A specialist marine services company is appointed to have an Emergency Towing Vessel on standby at all times. Such a company must have the following for a salvage operation:  Expertise (i.e. people with knowledge and experience of salvage)  Equipment (Tug, pumps, generators, compressors, pipes, …….and much more)  Large amounts of money (Helicopters, other vessels, and equipment may need to be hired immediately the alarm is raised and this means that the company will have large expenses!)  Ability to respond to a call-out 24/7/365  Capability of handling what could become major disasters. (A shipwreck could become a major oil pollution problem, or a vessel carrying explosive cargo could explode.) Processes involved in Salvage Operations The major salvor in South Africa is contracted to respond immediately to any casualty along the cost or further out to sea. The following is the usual sequence of events – but circumstances of the casualty, her position and/or her condition may change the procedure.  Receive notification of a casualty: In South African, news of a casualty is usually picked by the SA Maritime Safety Authority’s Search & Rescue Centre in Bellville, near Cape Town, who would have picked up a distress call or have received notification of a casualty or potential casualty. (The tug is put on standby – or even dispatched, depending on the situation.) 69 | P a g e

Downloaded from hlayiso.com  Investigate Facts: SAMSA and the tug owner find out as much as they can about the casualty, her position, the type of problem, her cargo and whether the crew are in danger. (Helicopters or other ships will be dispatched to rescue the crew if they are in danger.)  Broad Planning: A plan of action is compiled, and if there is time, this plan of action is put to SAMSA for approval.  Logistics & Equipment: The salvor’s personnel establish what equipment will be needed immediately, and dispatch it to the site of the casualty (if ashore).  Networking & Communication: All relevant parties are put on standby – the salvage team, the nearest port, ambulances, local hospitals, customs (who need to monitor the scene if cargo is washed ashore), immigration (who need to clear survivors into the country), environmental authorities (who may need to take precautions in the event of oil pollution or other environmental disaster.)  Weather forecasts & Tides: The salvors need to know whether the weather is likely to remain calm, or wheterh high seas are forecast. They will also need to know the state of the tide, in the case of a vessel that is ashore.  Risk Analysis: Decisions need to be made regarding the safety of the casualty. Plans must be made as to what to do with the ship once the immediate danger is past (should she be towed to a place of refuge – a sheltered area where better assessments of her condition can be made?….etc)  Calculations: The salvors need to calculate the distance and time for their team and/or tug to get to the casualty. Costs must be estimated, and financial preparations must be done to pay what could be fairly large sums of money, e.g. to hire equipment.  Contract Negotiations: A salvage contract is negotiated between the owner of the casualty and the salvage operators, and the insurers and whether LOF or SCOPIC or Daily Hire agreements will be used.  Safety of Operations: Any immediate dangers must be assessed and reacted to. The safety of rescuers, the salvage team and the crew of the casualty is the top priority.  Environmental Considerations: The possibility of pollution needs to be considered urgently and immediate plans must be made to counteract it.  Documentation & Records: All information relating to the operation (costs, messages, records of weather, etc) must be kept accurately as these will be needed when final salvage or other legal claims are made. Other Points to Note regarding Salvage Operations The Primary Objective in salvage operation is keeping the oil aboard a casualty until either it can be transferred to another vessel (or pumped to tanks ashore) or until the ship is brought to a safe haven, 70 | P a g e

Downloaded from hlayiso.com  Salvage Operations that are Time Critical o A ship has gone ashore and is in danger of being badly damaged the longer she remains ashore. The timing of the next high spring tide will also dictate when the salvors will attempt to pull the ship off the shore. o A ship has gone ashore and her bunker tanks are likely to be punctured if she stays ashore for any length of time. o A ship is in danger of going ashore o A ship is in danger of sinking o A ship is on fire o A ship is blocking a harbour channel. o Recovery of oil aboard a casualty  Salvage Operations that are very important but not Time Critical. This means that the operation must be done as soon and as quickly as possible but if the operation takes a bit longer, it will have limited environmental consequences or limited additional damage to the casualty or her cargo.  Wreck Removal (if the wreck is not blocking any channel or access to an important facility, or posing a danger to people)  Cargo Recovery (unless the cargo is toxic, explosive, or perishable and needs to be recovered quickly.) o A ship that has broken down and is not in immediate danger of going ashore or sinking. Her owner will request the ship to be towed to a safe haven on a daily hire basis (e.g. $25000 per day) and not on a Lloyd’s Open Form. People and Organisations involved in Salvage Operations  Those who become involved in a salvage operation include the following :  The salvors (and their tug, their personnel – specialist staff such as the salvage master who will take charge of the operation, naval architect who will advise on all matters relating to the stability or structure of the casualty, engineers, divers, logistic co-ordinators, oil pollution specialists etc., and teams bringing equipment such as pumps, generators, compressors, winches, wires, ropes, pipes, hoses, booms to prevent oil spreading, etc)  Medical personnel if there is any risk that crewmembers of the casualty or others may be injured or in danger  Specialist rescue personnel, such as the National Sea Rescue Institute to evacuate crewmembers from the casualty. Often this is done by helicopter. o The authorities of the country in whose waters the accident has happened. 71 | P a g e

Downloaded from hlayiso.com o The authorities of the country in which the casualty is registered o The owner of the casualty o The Master (Captain) of the casualty o The entire crew of the casualty – they might need to be rescued if there is any danger to them (e.g. fire on board, danger that the ship might break up or sink) o The Cargo Owner(s) o Insurance Companies (covering the ship, crew and the cargo) o Pollution response companies, o Liability Underwriters (P & I Clubs) – they may need to give permission for certain expenses to be incurred. o All surveyors and lawyers representing the salvors, the shipowner, the cargo owners, insurance underwriters, local authorities, etc. o Other important equipment or vessels may have to be chartered or hired e.g. additional tugs, dive spreads, utility vessels, barges, helicopters, etc. o Weather forecasters – they give regular forecasts so that the salvors can plan their operation according to weather o The public – they need to be informed of what is happening – and, in some instances where the ship has gone ashore, the public need to be kept away from the area around the casualty so that equipment and emergency vehicles can be brought to the site. o The Media – they need to be informed of what is happening, especially if pollution or other danger is foreseen, and also to be informed regarding the plans for the salvage operation. This enables the media to present a true account of what has happened and what is planned; otherwise, the media may report incorrectly on matters to do with the salvage operation. Salvage Arbitration Once the salvage operation has been completed, the salvor calculates what it cost to attend to the casualty. The amount is claimed from the owners of the casualty whose insurers will probably dispute the amount. The dispute then is heard by an Arbitration Court, usually in London. All those involved prepare presentations to the court so that a decision can be made. For example, a successful salvor may claim $6 million, a total that takes into account the following aspects of the salvage operations  the value of the casualty,  the value of her cargo, 72 | P a g e

Downloaded from hlayiso.com  the potential pollution clean-up costs (that were avoided because the salvor managed to refloat the vessel)  the costs to the salvor of the operation (e.g. fuel costs of a tug; charter of additional vessels, or helicopters, etc.)  the difficulty of the operation (aspects such as the weather or the location of casualty will be included here)  the prospect that the casualty could have been a total loss had she remained ashore (again, weather conditions, sea conditions wile be considered)  the danger posed to the salvor, his vessels, and his personnel  the danger posed to the casualty’s crew had the salvor not acted successfully  a reasonable profit. Once the arguments of the salvor and the casualty’s insurers and owners have been heard, the arbitrator will decide whether the original claim was fair, whether it was too high, or whether it was too low. The arbitrator will then give his verdict and order that the salvage claim which he believes to be correct is paid to the salvor. VOYAGE COSTS NOTES A ship incurs numerous costs during a voyage. Among the costs are the following :  Operational costs (if she is being operated by her owner); daily hire costs if being chartered;  Fuel costs (heavy fuel oil, marine diesel oil and lubricating oil.) A ship with conventional propulsion will use heavy fuel oil mostly when at sea as this is used in the main engine. Marine diesel oil (or gasoil) is used in the ship’s generators all the time to generate electricity for lighting, electronic systems, pumps, cranes, air conditioning, refrigeration, etc.  Port dues are charged for the time the vessel is in port.  Crane usage  Pilotage, tug and berthing charges  Port agent’s fees. These are charged as a percentage of the costs incurred in port.  Stevedoring fees, if cargo is being worked.  Fees imposed by immigration, customs or port health services  Light dues (In South Africa, a ship pays these dues once every six months. Funds collected like this are used to maintain navigation aids along the coast and in the approaches to harbours.)  South African Maritime Safety Authority levy (in South African ports)  Canal or waterway tariffs 73 | P a g e

Downloaded from hlayiso.com  In some areas, an insurance surcharge might be payable if the ship is entering an area where piracy occurs or where some type of conflict is occurring. The ship may have armed guards aboard, and a fee will be payable for them.  Costs of shoreside teams searching for stowaways aboard CLASS ACTIVITY VOYAGE COSTING The Capesize ore carrier Pedro T has been chartered to move iron ore from Saldanha Bay to Rotterdam. Her details are as follows : Her charter is for three laden trips (and therefore 2 ballast back-haul voyages) between Saldanha Bay and Rotterdam. The daily charter rate is $19500. She will use 62 tons of heavy fuel oil a day when at sea or at anchor. She will use 3 tons of marine diesel oil every day. The charter of Pedro T will begin at 00:01 on 03 March on arrival off Saldanha Bay. She is expected to anchor off Saldanha Bay for the first two days before she begins loading. (Surveyors will also do pre-loading surveys during this time.) She will berth in Saldanha Bay at 12:00 on 5 March She will sail from Saldanha Bay at 12:00 on 07 March She will arrive at Rotterdam at 12:00 on 29 March She will be in Rotterdam for 6 days discharging plus one day for hold cleaning and minor repairs She will sail from Rotterdam at 12:00 on 5 April. She will arrive off Saldanha Bay at 12:00 on 27 April. Bunker costs: HFO $276 per ton Bunker costs: MDO $486 per ton Port Costs: Saldanha Bay $30 000 per day Port Costs: Rotterdam $38 000 per day Pilotage, tugs & berthing: Saldanha Bay $20 000 Pilotage, tugs & berthing: Rotterdam $40 000 Sundry costs for the voyage $246 000 Note : The first voyage begins with her arrival off Saldanha Bay and ends when she arrives back off Saldanha Bay. (It includes all days that she was at anchor, days she spent in Rotterdam and days at sea.) 74 | P a g e

Downloaded from hlayiso.com 1. Calculate the number of days she is expected to take to steam from Saldanha Bay to Rotterdam. 2. Calculate the number of days that Voyage 1 is expected to take i.e. from her arrival off Saldanha Bay to her return to Saldanha Bay. 3. Refer to details given above, For her first voyage, calculate : a) the expected daily hire cost. b) the expected fuel costs. c) the expected port costs. d) the expected total costs for her first voyage. 4. Calculate the expected total cost of Petros J’s voyages, i.e. two return voyages from Saldanha Bay to Rotterdam and one loaded voyage to Rotterdam. Remember that the charter ends on the last day when her holds are being cleaned in Rotterdam. Notes NB: For additional information also refer to chapter 10 of the grade 11 textbook. Principles governing trade and transport Countries have resources to support their economy and to feed their people, but often they either do not have enough resources or there is an absence of certain resources. To make up for any shortfall in resources, various commodities have to be imported, i.e. those commodities have to be brought to the country that needs them. Countries that have a surplus of certain commodities will send those commodities to a country that needs them, i.e. the country sending the commodities exports them to the country that needs them. Moving a commodity from a producing country (a country that has a surplus of that commodity) to a country that needs the commodity (a country where there is a demand for that commodity) is the basis of trade between countries. Economy of scale is an important consideration in discussing transport types. The amount of cargo to be transported, the distance over which the cargo will be transported, and the urgency of the consignment affect the tariff that will be charged. A large volume of cargo over a long distance will cost less per ton per kilometre A small volume of cargo over a short distance will cost more per ton per kilometer. Because most trade involves moving heavy and bulk commodities across oceans or seas, shipping is the most important transport type in international trade. About 92 percent of all trade is conducted by sea. Some items may be moved by aircraft – e.g. small, light items such as clothing, jewelry, or highly perishable and valuable items such as cut flowers, live crayfish or fresh fish. Occasionally, some heavier items may be 75 | P a g e

Downloaded from hlayiso.com flown to their destination because the items are required urgently (e.g. important pieces of machinery to replace faulty machinery in a mine or in a factory in South Africa may be flown from Germany). Heavier or bulk cargoes may be transported by road truck or railway within a country or within a region (e.g. containers may be moved from Gauteng to Cape Town by railway or by road truck; imported grain may be taken by railway from Durban to Botswana.) For shorter distances within a region or a city, goods are transported by road in vans or road trucks. The level of trade rises and falls, depending on a number of factors: Global or regional economic changes – If the world or a region is experiencing an economic boom, its export trade will flourish. Money will be available to buy imported goods, and the level of trade (imports and exports) will rise, with a positive effect on shipping. A containership, for example, will be able to leave the country with good exports cargoes. Because the prosperity within that country will lead to a large demand for imported goods, that containership will return with good import cargoes. The reverse is also true: a country experiencing a difficult time economically will not be producing or importing as much cargo as it might do in better times. This will reduce the volume of cargo available for shipment and shipping services will suffer. Climatic factors – For agricultural products, rainfall is important. In times of plentiful rainfall, farms will produce good crops (e.g. grains, fruit) and even meat that can be exported in larger quantities. This means that bulk carriers will find export grain cargoes to move; for containerships, a good year of fruit production will mean good export fruit cargoes in reefer containers. In times of drought, the agricultural sector suffers and will not produce as much as in times of good rainfall. Therefore, there will not be as much agricultural produce to export, and food (especially grains for human and animal use) will need to be imported. Grain imports will be brought by bulkers. Product-specific fluctuations – Occasionally, variations in the movement of a single product can influence trade, and therefore affect shipping. The best example in recent years is oil. The oil price slump that began in about 2013 initially stimulated the trade in crude oil as countries stocked up with cheaper crude oil, and oil companies stocked up with cheaper oil products. Soon, the stockpiles of crude oil and refined products had grown so large that there was little demand for imports of oil or oil products. This meant that many of the busy tanker trades weakened and tanker rates dropped. Political instability or the threat of it -– Any threat of political instability can cause a sharp decline in trade; actual political instability reduces the ability of a country to produce its usual exports and there is usually a reduction in imports as people are more focused on survival than on buying luxuries. Thus, for trade to flourish, peace and political stability is required. ACTIVITIES 76 | P a g e

Downloaded from hlayiso.com ACTIVITY 1: Basic international trade concepts 1.1 Give the maritime term/concept for each of the following description. Write only the term/concept next to the question number in the answer book. 1.1.1 Moving a commodity from a producing country (a country that has a surplus of that commodity) to a country that needs the commodity (a country where there is a demand for that commodity) is the basis of ________ between countries. 1.1.2 A shipping activity which involves the selling of cargo by a country oversees to another country. 1.1.3 What type of transport would be used for each of the following consignments: (Note that some may require two types of transport for each of the legs over which the consignment will be transported) 1.1.3.2 35 forty-foot containers from Port Elizabeth to Bloemfontein 1.1.3.3 4 500 tons of fresh fruit from Ceres (Western Cape) to Oslo (Norway) 1.1.3.4 7 kg of documents from Pretoria to New York 1.1.4 This is gained when a country can provide the same product as its competitors but at a lower price. The country might even be able to provide a product at a higher price but also provide greater value. 1.1.5 A country has an (a) __________ if it can provide a product more cheaply than others. As Chinese labour costs are so low, China has an absolute advantage over many other countries whose products cost more to produce because their labour costs are higher. In considering the absolute advantage, shipping costs need to be included, and therefore, the landed costs of an imported product need to be considered. 1.1.6 The cost of an item (including production costs and shipping costs) when it arrives in a country ACTIVITY 2: Analysing and explaining principles governing trade and transport 2.1 Global or regional economic changes – If the world or a region is experiencing an economic boom, its export trade will flourish. Money will be available to buy imported goods, and the level of trade (imports and exports) will rise. 2.1.1 What effect will this have on shipping specifically (firstly sate whether negative or positive) and world trade generally and then provide an explanation to support your answer? 2.1.2 Based on your answer to 2.1 explain, for example, how will this affect the market of containerships ( refer to the level of imports and exports, the level of supply of container vessels, 77 | P a g e

Downloaded from hlayiso.com the effect on the freight rate and charter rates and the level of demand for the container vessels and the commodities linked to this demand) ACTIVITY 3: Analyse and adapt the law of supply and demand to explain the supply and demand of shipping transportation. 3.1 The law of supply and demand represents the fundamental principles in economics and trade. The price of goods and services in world markets is the function of the interaction between the supply and demand. When demand for shipping commodities increases the owners of vessels will supply more ships at an increased price. 3.1.1 Assuming that ship owners represent the supply side and cargo owners the demand side interpret how grain grown in Canada, at a time of plentiful rainfall that has resulted in farms producing a good yield of crops will: 3.1.1.1 Affect the levels of exports of grain from Canada to the Middle East where the demand for grain is extremely high. 3.1.1.2 Based on your response to your answer in 3.1.1.1 Which type of ship market will be affected? 3.1.1.3 Explain how charter and freight rates of the ship type you have identified in 3.1.1.2 will be affected (Your answer must be supported by facts linked to the scenario described in 3.1) NOTES NB: For additional information also refer to chapter 10 of the grade 11 textbook. The major industrialised countries (see the map below showing the industrialised regions) are consumers of raw materials (e.g. iron ore, coal, oil, a range of other minerals) and, because there are large concentrations of people in those countries, they also need to import large amounts of food (e.g. grain, fruit). Their industries also produce a range of goods (steel, machinery, textiles, vehicles, chemicals, etc.). Therefore, those countries are both areas of demand (for raw materials and agricultural products) and areas of supply (the range of finished goods that they produce). Although South Africa exports large volumes of minerals and agricultural products, it also has to import a large range of goods such as machinery, vehicles, chemicals, and, importantly, oil. The maps that follow show the areas of supply of various raw materials and the areas of demand for those commodities. 78 | P a g e

Downloaded from hlayiso.com 1 North America; 2 Western Europe; 3 Russia; 4 South Africa (shown here for identification purposes only.); 5 India; 6 China; 7 South Korea; 8 Japan; 9 Australia; 10 Arabian Gulf https://maritimesa.org/ The major trading areas are Europe, North America (USA and the southern part of Canada), China, Russia, Korea and Japan. Singapore could also be counted as a major shipping hub as it is a very busy bunker and trans-shipment port, while the Arabian Gulf – the world’s most important oil producing area – is also very important in global shipping. Large volumes of trade are conducted between each of these regions and countries, – and therefore shipping routes between these are very important. Trade routes Iron Ore Trades – Brazil, north-western Australia and South Africa are among the major producers of iron ore that is moved in Capesize ships to China, Japan, Korea, Europe and numerous other industrialised countries that produce significant amounts of steel. 79 | P a g e

Downloaded from hlayiso.com https://maritimesa.org/ Coal Trades – Steam coal is used for powerstations, while higher quality coal is used mainly in the steel industry. An annual increase in demand for steam coal occurs from September to February to meet the need for greater electricity generation during the northern hemisphere’s cold and dark winter months. This in turn, increases the demand for ships (especially Capesizes and Panamaxes) to move the coal from Richards Bay (South Africa), Brazil, south-eastern Australia, Columbia and other coal-producing regions to European ports. This increases the charter rate for these ships around that time. Similar to the growth in the iron ore trade, the coal trade boomed during the Chinese economic growth from 2001 to 2008, and declined once that country’s economy had flattened out. 80 | P a g e

Downloaded from hlayiso.com https://maritimesa.org/ Oil Trade Source: Petroleum products include transportation fuels, fuel oils for heating and electricity generation; oils used in asphalt (roads) as well as those used in chemicals; plastics and most synthetic materials we use every day. Sources: 70 percent of the world’s oil and gas is sourced from just ten countries: Saudi Arabia, Russia, Iraq, United Arab Emirates, Canada, Nigeria, Kuwait, Angola, Venezuela and Khazakhastan. Destination: 90 percent of the world’s oil and gas is destined for North America, Europe and the Far East. Top three importers of oil are China, USA, India, and countries in Northern and Western Europe 81 | P a g e

Downloaded from hlayiso.com Grain Trades – Whenever a drought occurs, additional grain needs to be imported. The drought in South Africa during the 2015-2016 summer grain growing season resulted in the country needing about 4 million tons of additional grain, most of which was imported from Argentina. This swelled the demand for handysize bulkers (especially the Supramaxes) in the Atlantic Ocean region, and their freight rate increased. https://maritimesa.org/ Container Trades – Containerised cargo is varied and ranges from home electronics foodstuffs and textiles to cars. Cargoes are generally high-value manufactured goods. The top exporters of containerised cargo include China, the United States of America, South Korea, Thailand, Indonesia, India, and Germany etc. (note that in these countries have big manufacturing sectors). Major importers of containers include China, USA, Japan, South Korea, the United Kingdom and India (note that these are middle to high income countries). 82 | P a g e

Downloaded from hlayiso.com Activity 1: Define concepts related to the major global areas of supply and demand 1 Define the following concepts related to major global areas of supply and demand: 1.1) International trade 1.2) Trade routes 1.3) Commodities 1.4) Law of supply and demand 1.5) Economies of scale Activity 2: Analysing graphics, tables, and other forms of data related to cargo trade 2.1 Read the extracts below – from an article in Business Report of 13 July 2016. 2.1.1 What is the yearly consumption of white maize in South Africa? 2.1.2 How much white maize was being imported into South Africa that year? 2.1.3 How much white maize was produced in South Africa per year? 2.1.4 If the average shipload of imported white maize is 42 000 tons, how many shiploads of white maize would be needed in the year? 2.1.5 What type of ship would be best suited to bring the following cargoes to South Africa? A) 42 000 tons of bulk grain b) 60 tons of bagged grain 83 | P a g e

Downloaded from hlayiso.com 2.2 The annual average rainfall for a grain-producing area in South Africa is 550 mm. It received 320mm of rainfall in a given year. 2.2.1 What effect can a shortage of rainfall have on grain production? 2.2.2 What effect could that rainfall consequently have on shipping (in your answer mention the effect on charter and freight rates)? Activity 3: Reading maps and plotting trade routes according to their respective commodities 3.1 Analyse the map below and answer the following questions based on major global areas of supply and demand for commodities. 3.1.1 Identify the commodity trade represented in in the above map 3.1.2 What is the region (not country) that is the major area of supplied is called? 3.1.3 Besides the area of supply identified on the map above give 3 other regions (not countries) that are major suppliers of the commodity in question. 3.1.4 Give the type of vessel that would carry the commodity in question 3.1.3 On a simple sketch outlining the map of the world map plot two trade routes of the commodity related to in question 3.1 taking into considerations the following guidelines:  Label country supplying in brackets identify the region it is in e.g. Brazil (South America) or Japan (Far East) 84 | P a g e

Downloaded from hlayiso.com  Label the major water bodies, in the order of the voyage, the vessel will sail in. Ensure that you mention a maritime zone of convergence if applicable  Label the area of demand (mention country and the region its in) NOTES In moving cargo, many international procedures and rules about documentation have to be followed carefully. Among important aspects relating to cargo imports and exports are the following: Customs Every country has regulations relating to what may be brought into the country and whether a “duty” (a state- imposed fee) will be placed on a particular item if it is brought into the country. Sometimes these customs “duties” are in place to protect local industry from cheaper foreign products. Customs (a government authority that in South Africa is known as the South African Revenue Service or SARS) control the movement of cargo into the country, checking that import duties are paid, and also checking that no prohibited items (e.g. drugs or illegal weapons) are brought into the country. Customs therefore have to” clear” cargo into the country and have the power to search containers or other items of cargo. Export cargoes are also subject to customs regulations, although fewer duties are payable on exports than on imports. The customs department also keeps records of imports and exports. Forwarding and Clearing Agents It is important to have experts helping an importer or exporter to ensure that the cargo is moved quickly and smoothly. Therefore, to help with the documentation and transporting the cargo to or from the port, an exporter will appoint a forwarding agent while an importer will appoint a clearing agent. These agents are experts in moving the cargo through the port. Logistics Warehousing Logistics is the moving of cargo and equipment. Logistics warehouses are operated by specialist companies who import a particular type of goods (e.g. electronic goods) and distribute them on behalf of the manufacturer. They arrange all the documentation and payments (including import duties, shipping costs, etc). This saves the individual shops (consignees) from having to handle all the ordering and importing procedures. Documentation – For imports and exports, a large number of documents need to be completed. This is necessary for the customs department, for the port authority and to ensure that payment has been made to the supplier. 85 | P a g e

Downloaded from hlayiso.com Bill of Lading – One of the important documents used in shipping is the Bill of Lading, which is the contract under which containers are carried. It is the contract between the carrier (the shipping company in whose ship the cargo is to be carried) and the shipper (the person or company who is sending the cargo). A Bill of Lading acts as a receipt and a contract. A completed Bill of Lading legally shows that the carrier has received the cargo as described and is obliged to deliver that cargo in good condition to the consignee (the person or company to whom the cargo is going). Some other important aspects about the Bill of Lading are the following: On the front of the Bill of Lading are details of the cargo, the port and date of loading, the port and date of discharge, the name of the carrier and the ship in which the cargo will be shipped, and other information that is important to the shipping process. On the back of the Bill of Lading are many clauses in very small print that govern the conditions under which the cargo is shipped. The carrier and the shipper agree to these terms and conditions. In theory, for example, they could tell the owners of a container that was going to be discharged in Cape Town to go and fetch it from Durban where they had found it convenient to unload it. In practice, any shipping line that exercised its full contractual rights like that would soon have no customers. If the wind is too high to permit discharge in Cape Town or if there is a strike or heavy congestion that makes it uneconomic for the ship to wait outside Cape Town, the shipping line may well discharge the container in Durban but will then either tranship it back to Cape Town or truck it down to Cape Town in order to keep the customer happy and obtain future business. The following consists of the main purposes of the bill of lading:  Title of Ownership – A Bill of Lading gives the right to possession of the cargo at the discharge port.  Prove of receipt and payment of cargo  Its is the evidence of the contract of carriage Activity 1: Define concepts relating to container shipping Give the correct terms for the following: 1.1 The shipping operator responsible for assisting a seller of cargo in terms transportation and administration of the shipping procedures and documents. 1.2 Providing administrative assistance in terms of importing procedures to the buyer of cargo 1.3 A buyer of cargo 1.4 A container of shoes from a manufacturer to a buyer. 1.5 A service that handles the distribution of goods to importers on behalf of the exporter and the importer with the handling of all the ordering and importing procedures. 86 | P a g e

Downloaded from hlayiso.com Activity 2: Examine and report on procedures pertaining to shipping containers Write a note, describing the procedure that would be followed when a containerised cargo of boxes of chocolates from Switzerland is sold to a retail store in Durban’s hinterland. Use the following guidelines:  Use the below sub headings to write your essay  Customs services in international shipping  Forwarding agents  Documentation (brief reference to bills of lading)  Logistics warehousing  Order your essay chronologically starting from the shipper’s premises to the importers warehouse or shop.  Your essay must be 300 to 350 words Activity 3: Differentiating the various types of the bill of lading, its purpose and the important information on the bill of lading. 3.1 Which shipping operator issues a bill of lading 3.2 What bill of lading involves a shipper being responsible for the arrangement both land and sea transportation leg of cargo. 3.3 How many bills of lading will be generated if Zeppie Granites in North West Province in South Africa ship 5 containers of granite slabs to Dubai Interiors Company in Dubai? Notes The search for minerals on the ocean floor (e.g. diamonds off the southern Namibian coast) or oil and gas beneath the ocean floor is controversial. Any form of disturbance of the ocean floor (also occurring in dredging for diamonds or drilling for oil) will damage the undersea structures and sediment layers, especially very sensitive corals that abound in some tropical regions. Coral reefs are formed over a very long time; damage will take centuries to be reversed. Companies prospecting for oil and gas or producing oil and gas from offshore fields do take great care to ensure that the environment is damaged as little as possible. Similarly, while some marine life will be disturbed, careful operations will keep such disturbances to a minimum. The advantages of producing more oil and gas are very important, not only in terms of fuel, but also in terms of employment and revenue earned. Obviously oil pollution – as has happened several times when oil rigs or other structures have been damaged – is a horrific event. Read the short modified extract from Wikipedia below regarding the worst oil disaster. 87 | P a g e

Downloaded from hlayiso.com Obviously, this was a tragic and well-reported saga, and was an exceptional accident. Television brought the entire incident – including graphic details of its effect on human beings and long-term effects on the environment – into living rooms across the world. Its impact on so many people shaped opinions and even government policies on such matters. However, smaller leaks from undersea pipelines or other oil installations are also problematic as they have a seriously adverse effect on their surrounding areas. As countries struggle with air pollution from carbon fuels such as coal and vehicle exhausts, they try to find alternative sources of energy. Solar power is becoming widely used in industry, homes and even in transport – a few vehicle carriers have large solar panels on their upper decks to assist with the provision of electricity for the operation of the ship. A suggestion has been made to have a removable, container-sized solar panel atop every slot on containerships. But two main alternatives (and importantly renewable) energy sources impact shipping: Wind Power Along the coasts of many European countries lie extensive “wind farms”, areas where towers have been built in the sea and along river estuaries to accommodate large wind turbines. The wind turns a propeller-like fitting at the top of the tower; that turns a small turbine to generate electricity. Although the source of the energy (the wind) is renewable, carbon-free and is “free”, some have questioned whether this method of generating electricity is as carbon-free as is claimed. The parts of the towers, wind-generators and links to electricity grids need to be manufactured; the entire towers need to be installed for which either custom- 88 | P a g e

Downloaded from hlayiso.com designed ships need to be built or existing ships need to be modified, and regular maintenance can only be done from ships. All of these will leave a carbon footprint. Tides In some places, the tidal range is great. This can be used to generate electricity, although it is not used extensively at present. The principle is that the tide will cause a float to rise and fall, a movement that, through gearing can rotate a generator to generate electricity. Another model is that as the tide comes in or goes out, it passes through large pipes in which a series of turbines is positioned, as these turbines turn, electricity is generated. Notes The following environmental aspects will affect shipping operations: Wind Strong wind will affect shipping in the following ways:  Cargo operations (especially container handling) cannot be done during times of strong wind. Containers will swing in the wind, making it difficult for container gantry operators to load containers into the container guides on a ship, or to fit them onto the twist locks that will secure them to hatch covers or onto the container below. The South African ports of Cape Town, Port Elizabeth and Ngqura are particularly prone to being affected by wind.  The wind can be dangerous for ships entering or leaving port. Pilots may decide that the wind is too strong for the ship to berth or to sail. This applies particularly to high-sided vessels such as loaded containerships, passenger ships, vehicle carriers, large tankers or bulkers when in ballast. These ships present such a high windage that will cause a strong wind to move them uncontrollably.  A head wind can reduce the speed of a ship – or if the master chooses to keep to the usual speed, the vessel will use more fuel. A stern wind will aid the ship and increase the speed (albeit slightly) and therefore a stern wind can also help to save fuel.  String wind can drive ships ashore, especially if they are under-powered or disabled.  Strong winds can cause ships to break their mooring lines which poses serious danger to the ship and to other ships with which she may collide. Two large containerships broke their mooring lines in Ngqura. One smashed into the port’s pilot launch. During a strong south-east gale in Cape Town, an oil rig broke her moorings and was blown into two containerships. Both were serious damaged : one had to be drydocked; the other was withdrawn from service while repaired to side plating were carried out. A fishing vessel was sunk during the incident.  Strong wind will also cause heavy seas (See paragraph Heavy Seas below) 89 | P a g e

Downloaded from hlayiso.com Heavy Seas These are the result of strong winds blowing in a constant direction over a long period, and across a long distance. Their effects on shipping are as follows :  Ships can be damaged by heavy seas. Deck fittings, deckhouses or deck cargo can be damaged by heavy seas sweeping across the deck, while, in heavy seas, ships can suffer structural damage – buckled plating, cracked plating, buckled frames. Ships have been lost because of damage inflicted by heavy seas.  Because of the danger of suffering damage, ships will reduce speed in times of heavy seas, especially if she is steaming into a head sea.  Ships in heavy seas will pitch and/or roll. This can become quite violent at times and can make life very uncomfortable for the crew and passengers. The galley staff may find it difficult (even dangerous) to prepare the usual food, while sleep is interrupted by violent rolling. It can also be very difficult moving around a ship in heavy seas, although most seafarers get used to it.  When the ship is rolling violently, cargo can shift or become damaged.  Heavy seas can prevent pilots from boarding ships or from disembarking safely. This may result in harbours being closed, and therefore ships are delayed in berthing or sailing.  Heavy seas can damage harbour installations, especially breakwaters that take the full force of the waves.  Ships – especially when disabled – can be driven ashore by heavy seas.  Under some conditions, harbour operations can be affected by range action (i.e. the swell outside the harbour causes a strong current that moves along a wharf. Ships can be moved to such an extent that they snap their mooring lines. Their movement can also halt cargo operations as it becomes difficult to load or discharge. Off the coast of the Cape Peninsula in summer, the prevailing wind is the south-eastern that can be very strong. False Bay is exposed to this wind as is Table Bay. However, an area along the western coast of the Cape Peninsula is sheltered from this wind by the mountains. Ships often anchor in this sheltered area, and even if the wind does blow, it is offshore and poses little threat to causing anchored ships to drag their anchors. (See the map below.) 90 | P a g e

Downloaded from hlayiso.com In winter, the prevailing wind off the Cape Peninsula is from the north-west or west. This generates a significant swell along the western coast of the Cape Peninsula. Under such conditions, ships do not anchor in the area that is sheltered during summer. Although they continue to anchor in Table Bay itself, they sometimes have to leave the anchorage if the wind becomes too strong and/or the swell becomes too great as they are in danger of dragging their anchors and perhaps being driven ashore. (See the map and photograph below.) 91 | P a g e

Downloaded from hlayiso.com Rain Ships can steam through rain. If visibility becomes impaired by the rain, the officers can use the radar and GPS to navigate the ship safely. However, rain will stop the loading or discharging of weather-sensitive cargoes (i.e. those cargoes that should get wet, such as cement, grain, paper, some machinery, and others.) Container operations can continue during rain. Fog Fog is formed when warm, moist air masses meet colder air. The warmer air cools and water vapour in the air condenses, forming fog. Fog affects shipping in the following ways :  Although they can continue steaming as the officers on watch can use radar and GPS to navigate the ship safely, ships usually slow down during fog. This will delay their arrival at the next port, and, if their ETA at the port has to be met, they will have to make up time by increasing speed. That will cause more fuel to be used.  Harbour operations will continue, although ships’ movements will be delayed.  A number of ships have gone ashore or had collisions during fog along the South African coast over the years. Most of these accidents occurred before the invention of radar (during World War 2), although several have also occurred despite the use of radar. For example, the collision between the tanker 92 | P a g e

Downloaded from hlayiso.com Texanita and the bulker Oswego Guardian (both with radar) in 1972, and the stranding of the bulker Pantelis A Lemos (also with radar) near Saldanha Bay in 1973 occurred in fog. Ice The sinking of Titanic in 1912 still has the world’s attention, especially after the dramatic movie was made. The ship sank after striking an iceberg off the north-east coast of the USA, with terrible loss of life. Into that area, icebergs – originating off the Greenland coast – are brought into the shipping lanes off the north-east cost of USA and Canada but the southward-flowing Labrador Current. Although they pose a danger to shipping, icebergs are tracked by satellite now and ships are given regular reports of the positions of icebergs. Ice also blocks ports. The entire coast of north-west Europe is ice-free in winter because o f the influence of the North Atlantic Drift that brings relatively warmer water to the region. However, some ports in the Baltic Sea, northern Russia and northern Canada become ice-bound in winter. Notes Major weather systems (Depressions, Tropical Cyclones) have an effect on shipping because strong winds are part of those systems. Those strong winds cause heavy seas that have potential to damage ships and disrupt shipping operations. Depressions These are weather systems that move from west to east across the Southern Ocean, South Atlantic Ocean, southern Indian Ocean and southern Pacific Ocean. The also develop across the North Atlantic Ocean and northern Pacific Ocean. They form around a low pressure cell and have two major sections  The warm front that introduces relatively warm air, and sometimes light rain.  The cold front that introduces colder air (sometimes very cold air as the direction of air movement behind the cold front is from the polar region). The cold front usually brings strong winds (often in very strong gusts), heavy seas and heavy rain. In southern Africa, depressions affect mainly the south-western areas (from about Cape Columbine to Mossel Bay, although on occasions, the Eastern Cape coast can also experience strong wind and heavy seas during the passage of a depression and its associated cold front. 93 | P a g e

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Downloaded from hlayiso.com Tropical Cyclones Known as a hurricane in USA and a typhoon in Asia, a tropical cyclone forms around an intense low pressure area in ocean areas near the Equator, and air begins to move around the centre – clockwise in the southern hemisphere; anti-clockwise in the northern hemisphere. The low pressure cell begins to move south- westwards in the southern hemisphere and north-westwards in the northern hemisphere. Wind strengths can get to around 120 knots, extremely heavy seas occur and extremely heavy rain falls as the cyclone passes. In the centre is the “eye”, an area of calm. Ships avoid these storms as the heavy seas can cause severe damage to them or to deck cargo. Cargo in the holds can shift as the swell increases. Ships will be routed around a tropical cyclone. Tropical cyclones form in the Indian Ocean and move south-westwards and often affect Mauritius, Reunion, Madagascar and occasionally come ashore in Mozambique. Only one has hit the South African coast in the last 40 years – tropical cyclone Demoina hit the coast near Richards Bay in 1989, causing widespread, serious damage from Mozambique to the south coast of KwaZulu-Natal. Extraordinarily strong winds and widespread flooding occurred – bridges, roads and buildings were badly damaged. Fortunately, ships had either entered port, or had taken shelter, or had steamed away from the advancing cyclone. Once the cyclone has moved over land, it loses strength and dissipates. Madagascar shields the south- eastern coast of Africa from the worst effects of tropical cyclones. Even though South Africa has had only one cyclone come ashore in the last 40 years, the effects of a cyclone (heavy seas) are felt along the KwaZulu-Natal coast if one should pass into the Mozambique Channel or dissipate before reaching the coast. Tropical cyclones are given names, the first letter of which indicates the number of that cyclone in the season, e.g. the first cyclone of the season will be given a name beginning with the letter A – Amy, or Andrew etc; 95 | P a g e

Downloaded from hlayiso.com the second of the season will start with the letter B – Byron or Barbara, the third of the season will start with the letter C – Caroline or Charlie. 96 | P a g e

Downloaded from hlayiso.com Monsoons  Since early Arabian, Indian and Portuguese seafarers traded between the coast of the Arabian Gulf, India and east Africa, the Monsoon seasons in India have affected trade routes. This was because of changes in season wind directions that of course had an effect on sailing vessels like the Arab dhows and the Portuguese caravel’s. Even modern ships are affected by these wind systems. (See below.)  South-west Monsoon – In the northern hemisphere’s summer (May to September) high temperatures over India cause a low pressure system to form. That low pressure system draws air toward India, and air moving anti-clockwise around that low pressure system is observed as a south-west wind across the Indian Ocean. (See the diagram below.) These winds are constant in strength and can build up a significant swell. This means that ships moving from East African ports to ports along the Arabian Gulf or the Indian west coast will experience a stern sea; those moving in the opposite direction will experience a head sea. 97 | P a g e

Downloaded from hlayiso.com  North-east Monsoon – In the northern hemisphere’s winter (November to March) lower temperatures over India cause a high pressure system to form. That high pressure system causes air to move clockwise around it, and in the process, it flows across the Indian Ocean from the north-east. (See the diagram below.) These winds are constant in strength and can build up a significant swell. This means that ships moving from ports along the Arabian Gulf or the Indian west coast to East African ports to will experience a stern sea; those moving in the opposite direction will experience a head sea.  Ships crossing the Arabian Gulf or the north-western part of the Indian Ocean will also be affected. If the monsoon has created a heavy swell, ships on those courses may experience heavy rolling. 98 | P a g e

Downloaded from hlayiso.com South-East Gales Southerly and south-east gales often disrupt shipping operations in Cape Town, Port Elizabeth and Ngqura, especially in summer. Ships, particularly those that are high-sided (e.g. large ships in ballast, containerships, passenger ships and vehicle carriers) are often not able to berth in or sail from ports because of strong winds. Container operations – and sometimes even other cargo operations – often have to stop because of strong winds. Ships’ moorings can part (break) during these times of strong winds. In summer, the South Atlantic high pressure system usually is located to the west or even to the south-west of the Cape. Air moves anti-clockwise around this system. The strong south-east or southerly winds that blow across the south-western part of the country are caused by that high pressure system “ridging” to the south of the country. (“Ridging” means that the high pressure system elongates to the south of the country.) As the air moves around that high pressure system, it speeds up as it comes around the eastern end of the ridge, creating strong winds across the south-western Cape. As this ridge can remain in place for several days, the strong winds can continue for days, delaying ships and disrupting cargo work. (See the diagram below.) 99 | P a g e

Downloaded from hlayiso.com  Below is the weather map showing conditions during a storm which the bulker Atlantic Trader encountered while on a voyage form Durban to Walvis Bay.  The straight line indicates the course of the ship.  Each ìfeatherî on the wind symbols represents 10 knots wind speed, e.g.  Two feathers = 20 knots wind speed;  Two and a half feathers = 25 knots wind speed.  A diamond shape on the feather = 50 knots wind speed  The average swell height off Cape Agulhas is 9 metres from the west. 100 | P a g e

Downloaded from hlayiso.com Activity 1.1 Look at the wind speeds and direction. In what season was the voyage from Durban to Walvis Bay undertaken? 1.1.1 What was the wind speed off Cape Agulhas at the time of the incident? 1.1.2 Explain the link between the wind speed and that fact that the ship was experiencing heavy seas. 1.1.3 What weather system was affecting the weather at the time when the ship was off Cape Agulhas? 2. The Agulhas Current flows along the east coast towards Cape Agulhas. 2.1 Will the current assist the ship on her voyage between Durban and her position off Cape Agulhas? 2.2 Explain your answer to Question 2.1. 2.3 Atlantic Trader is fully laden. Will she have a low or a high freeboard? 2.4 When steaming from Durban to Cape Agulhas, will she have a head sea or a stern sea? 2.5 Explain your answer to Question 2.4. 2.6 Look at your answers to the questions above. 2.6.1 Write a note of about 50 words in which you describe the conditions off Cape Agulhas as if you were aboard the ship 2.6.2 List three dangers that might concern the ship’s Master. 2.6.3 When she reaches a position to the south-west of Cape Point, the ship will turn. 2.6.3.1 Will the wind be a head wind, on her beam, or a stern wind? 2.6.3.2 Will she have the swell running from ahead, on her beam or from astern? 2.6.3.3 Will she roll or pitch as she steams from Cape Point to a position west of Cape Town? 101 | P a g e

Downloaded from hlayiso.com Notes The Sea as a Source of Food The sea provides millions of tons of food per year for millions of people, and South African has fish resources that are consumed by local population and that are exported to many places. Some of the fish that are landed in Cape Town today are carefully packed, are kept under refrigeration and are flown to European or Asian cities where they are eaten at lunchtime in restaurants tomorrow. Some – such as crayfish and some species of shellfish – are kept alive and appear in tanks in restaurants within 24 hours of their being caught off the South African coast. Tuna, also caught in local waters, or further out by foreign long-line fishing vessels, are frozen aboard and brought to Cape Town where they are stored in the harbour’s cold store to await shipment, usually in reefer containers, to Asia or North America where sushi (a delicacy made from thinly-sliced tuna) is very popular. The bait for the hooks in the long line is usually mackerel (a small fish) that is caught off the South African, Namibian and Angolan coasts. It is frozen and brought to Cape Town where it is either stored in the cold store or trans-shipped directly to the long-line fishing vessels for use as bait. Some of the fish is canned and can be bought in supermarkets – e.g. tinned tuna, pilchards in tomato sauce, sardines – and some fish (especially anchovies and of course all the offal from fish processing) is ground to make animal food (sold as pet food in cans or in dry biscuit form and also mixed with various grains to make poultry feed) or fishmeal. Fishmeal is usually dried and bagged for use as agricultural fertilizer. It is also exported in bags, often in containers; some is even shipped in bulk. Depletion of global marine resource As the demand for fish increases, more sophisticated methods are used to catch fish.  Vessels can stay at sea for longer periods, increasing the possibility of larger catches.  Vessels have sophisticated fish-finding equipment, often sonar equipment that can find and track shoals of fish, making their netting easier.  Vessels have large, refrigeration equipment that can keep more fish cold (or freeze the fish) for longer.  More fishing harbours and processing plants have been built, enabling greater volumes of fish to be processed in a shorter time.  The demand for particular species of fish (e.g. crayfish, tuna, yellowtail) increases the price which encourages people to catch those species. Sometimes this leads to the depletion of particular species on a large scale.  More robust netting equipment (including winching gear) allows more fish to be caught.  Poaching has become rife in many areas. In the area from Cape Hangklip to east of Hermanus, very few perlemoen (abalone) are left after serous poaching occurred over the past few years. 102 | P a g e

Downloaded from hlayiso.com Because of these factors, larger volumes of fish are being caught, and fish stocks – particularly breeding stock – are being depleted. This means that some species may become extinct unless measure are taken to control the amount of fish caught. Control of Fishing To control the amount of fish caught, many countries introduce regulations such as the following :  Fishermen need to apply for licences. This applies to commercial fishermen and leisure fishermen.  Quotas are given to licensed fishermen in terms of how much fish they may catch.  The size of the mesh in fishing nets is prescribed and may not be reduced. This is so that smaller fish (especially the breeding stock) can escape quite easily.  Some areas (especially known fish breeding areas) are declared sanctuaries and no fishing of any kind may occur there at any time.  In some areas, trawlers lower their nets to the seabed and tow them along to entrap fish that usually are found at the bottom of the sea, e.g. sole. This is known as bottom trawling. Some countries ban bottom trawling as it damages the seabed environment. This is especially true in areas where coral is found as trawling will damage the coral.  Limiting the length of the fishing season. This often involves a complete ban on catching a particular species during its breeding season. Outside of the official fishing season, no fish may be caught.  Strict regulations and heavy penalties for oil pollution (or for other pollution involving toxin) are imposed to ensure that marine life is not damaged.  Regular patrols by the fisheries department (at sea or ashore) help to control fishing and to ensure that the regulations are adhered to.  Imposing heavy fines on those guilty of contravening the fishing regulations (even jail sentences and the confiscation of any item that was used in the contravention of fishing regulations, e.g. confiscation of the boat and equipment used.) Fishing vessels The fishing industry employs millions of people worldwide. Some of these people are employed at sea aboard fishing vessels; others are employed ashore in fish canneries, packing plants, freezer plants and other fish processing plants. Fishing vessels have a variety of designs, depending on the type of fish that they will catch and the length of time they will be at sea. These vessels range from large stern trawlers (some are 120 metres long and process the fish aboard) to small vessels a few metres long. 103 | P a g e

Downloaded from hlayiso.com Desert Diamond is a stern trawler. A net is lowered through the ramp in the stern and the trawler tows the net at a specified depth through the water, catching fish as it goes. The net is then hauled aboard, the fish are sorted on board the trawler and packed, ready for the market. In some large stern trawlers, the fish is boxed aboard so that when the trawler arrives in port, the boxed fish is ready for the supermarket shelves. Some of these trawlers remain at sea for weeks until the required tonnage of fish has been caught. Much hand-line fishing is done from small vessels to catch snoek, and other inshore fish, while crayfish are caught using crayfish traps, box-like nets into which bait is placed. The traps are laid in shallow water along parts of the Western Cape and Northern Cape coastline. When the boats return in a few hours’ time, the nets are hauled to the surface and any crayfish in the nets are then removed and brought ashore, providing they are the right size. These are regarding as a delicacy in many parts of the world and most of the crayfish caught in local waters are exported either live or the tails are frozen for export. Long-line tuna vessels in Cape Town. These are used to lay long lines from which baited hooks dangle. The lines remain afloat by brightly coloured floats. The long-liner moves along the line; her crewmembers check each hook, remove any fish caught, and rebaiting hooks. The fish are brought ashore and are either processed locally or are exported frozen to countries like Japan, Korea or China. Unfortunately, this is a very indiscriminate method of fishing and often birds, turtles and dolphins are caught in this way. Acknowledgements https://maritimesa.org/ Grade 11 Maritime Text Book by Mrs B. Masuku 104 | P a g e