17/09/2023

INTERNATIONAL TRANSPORT
AND INSURANCE

PHAN VŨ NGỌC LAN – MDE

International Business
Administration Department
lanpvn@huflit.edu.vn

CHAPTER 2

SEA TRANSPORTATION

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Content
 Features, status of sea transportation
 Material technical basis for sea transportation

1. Features and status of sea

transportation
 Features
 Status

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1.1. Features
 Sea transportation: the carriage of cargo or
passengers inside a nation’s territory or from
this nation to another by sea.
 Early set-up (from the 5th century AD)
 Number 1 position in international transport

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Source: Review of Maritime Transport 2020, UNCTAD

Advantages of sea transport

 Natural waterways
 Large capacity
 Low freight
 Low fuel consumption, suitable for
transporting a majority of goods for import-
export..

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Cargo transported by sea

 Oil and Oil products (by tanker)
 Dry cargo (in bulk)
 Other dry cargo (by container, refrigerated ships, ...)

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Drawbacks of sea transport

 Slow speed -> Longer time
 Being subject to natural and maritime
conditions

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Perils of the sea

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Perils of the sea

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1.2. Status of sea transport

 Sea occupies 2/3 of the earth’s surface  Most
countries are connected via waterway.
 Vietnam’s special geographical location

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TOP10 Exports 8/2021 (customs.gov.vn)

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Source: VASEP

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2. Material technical basis for

sea transportation
 Transport route
 Port
 Merchant ship / Vessel
 Containers

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2.1. Transport routes

 The route formed between 2 or more ports where
ships carry passengers / cargo.
 Classification based on usage:
- Periodic route
- Non-periodic route
- Special route
 Classification based on area of operation
- Domestic route
- International route

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2.2. Seaport
 Definition
 Functions
 Classification
 Technical equipment
 Scale evaluation parameters
 Vietnamese port system (textbook)

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2.2. Seaport
2.2.1. Definition: the place where ships come
and go, with services for both ships and cargo.
Port is an important traffic hub of a nation.
2.2.2. Functions:
- Port/Ship services
- Cargo services

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Article 76. Fundamental functions of a

seaport (VN Maritime Code 2015)
1. Provide vessel traffic services for ships which enter and
leave a seaport.
2. Provide transports, equipment and workforce
necessary for ships to anchor, load or discharge goods and
embark or disembark passengers.
3. Provide freight transportation, loading, discharge,
warehousing and storage services within the territory of a
seaport.
4. Play its role as the center to help different traffic networks
outside of the seaport to get connected together.
5. Be designed provide shelter, repair and maintenance or
other indispensable services for ships in case of
emergencies.
6. Provide other services for ships, humans and cargoes.
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2.2.3. Seaport classification

 Based on using purpose: commercial port,
military port, fishing port and port of refuge
 Based on natural condition: Natural and Artificial
port
 Based on maritime condition: Port with / without
tide, Port with / without freezing condition
 Based on governing scale: National, Provincial,
State-owned and Private-owned port
 Based on vessel serving scale: International port
Grade I, II, National port Grade I, II, III, IV

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Article 75. Classification of seaports

(VN Maritime Code 2005)
a) Special seaports mean large-scale seaports which are
aimed at nationwide or inter-regional socio-economic
development, and perform their functions as international
transshipment or gateway ports;
b) Grade-I seaports mean large-scale seaports which
serve the purpose of nationwide or inter-regional socio-
economic development;
c) Grade-II seaports mean medium-scale seaports which
serve the purpose of regional socio-economic
development;
d) Grade-III seaports mean small-scale seaports which
serve the purpose of local socio-economic development.

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2.2.4. Technical equipment in

the seaport
 Group of equipment serving the ship to and from the
port, awaiting loading and unloading: wharf, passage,
dyke...
 Group of equipment for the transportation, cargo
loading and unloading: cranes, forklifts, suction pumps,
conveyors,...
 Group of equipment for storage and preservation:
warehouse systems, bonded warehouses, oil tanks,
storage facilities,...
 Road system and transport tools: railways, roads,
internal roads ...
 Group of floating equipment: wharf, cranes ...
 Other equipment group: electricity, lighting system,
signal lights, communication system, computer ...

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2.2.5. Scale evaluation

parameters
 Number of vessels / gross tonnage / gross
tonnage per port in a year
 The number of vessels loading at the same
time
 Volume of cargo loading and unloading per
year
 Cargo handling level
 Cargo storage capacity
 Laws, customs, charges and prices of port
services

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2.3. Merchant Ship / Vessel

 Definition
 Classification
 Vietnamese fleet (Textbook)
 Technical and economic specifications
 Ship’s paper

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2.3.1. Definition
 Ship carrying goods or passengers for
commercial purposes.

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2.3.2. Classification
 Based on carried goods
 Based on structure
 Based on usage
 Based on business methods
 Based on flags
 Based on engines
 Based on tonnage

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2.3.2. Classification
 Based on the carried goods:
- Dry cargo ship:
--- General cargo ship
--- Lolo (Lift on-lift off) & Roro (Roll on-Roll off)
--- Bulk ship
--- Combined ship
--- LASH – Lighter Aboard Ship
- Tanker cargo ship:
--- Oil Tanker / Ultra-Large-Carrier
--- Liquefied Natural Gas (LNG) carrier
--- Others

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LASH (Lighter aboard ship)

 A barge carrier designed to act as a shuttle between ports,
taking and discharging barges (lighters). The ship is
provided with massive crane which loads and discharges the
lighters over the stern. The lighters each have the capacity
of 400 tons and are stowed in the holds and on deck. When
the ship is at sea with one set of lighters, further sets can be
made ready. Loading and discharge is rapid at about 15
minutes per lighter, no port or dock facilities are needed and
the lighters can be grouped for pushing by tugs along inland
waterways.

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Lift-on/lift-off (Lo/Lo)
 Lift-on/lift-off (LoLo,
sometimes LOLO, LO/LO or Lo/Lo)[1] ships are cargo
ships with on-board cranes to load and unload cargo. Ships
with cranes or other cargo handling equipment on-board are
also termed geared vessels.
 As container ships usually have no on-board cranes or other
mechanism to load or unload their cargo, they are therefore
dependent on dockside container cranes to load and unload.
However lift-on/lift-off vessels can load and unload their
own cargo unassisted. Lift-on/lift-off vessels can operate
out of docks with no dockside cargo handling equipment.

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Cranes on a
LoLo vessel

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Figure 1. LNG carrier. Note the size of the LNG ship compared to
the size of the one to the right of it, the LNG ship is enormous![1]

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2.3.2. Classification
 Based on structure: Ship with one or more
decks
 Based on usage: Ship carrying cargo /
passenger / mixed
 Based on business method: Liner / Tramp
 Based on vessel flag
- Ship with conventional flag
- Ship with flag of convenience

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2.3.2. Classification
 Based on engine
- Steam ship
- Steam turbine ship
- Motor diesel ship
- Nuclious ship

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2.3.2. Classification
 Based on carriage tonnage
- Bulk Carrier:
+ ULCC: Ultra Large Crude Carrier 320,000 — 549,000 DWT
+ VLCC: Very Large Crude Carrier 160,000 — 319,999 DWT
+ Capesize: 120,000-200,000 DWT
+ Panamax: 50,000-120,000 DWT
+ Hadysize: < 50,000 DWT
- Crude Carrier:
+ ULCC: Ultra Large Crude Carrier 320,000 — 549,000 DWT
+ VLCC: Very Large Crude Carrier 160,000 — 319,999 DWT
+ Suezmax: 110,000 — 150,000
+ Aframax: 75,000 — 110,000
+ Panamax: < 75,000 DWT

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2.3.4. Technical and economic

specifications
1. Ship’s name
2. Place of Registry
3. Flag of the ship
4. Shipowner
5. Length Over All – LOA; Breath Extreme – BE
6. Draft / Draught

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2.3.4. Technical and economic

specifications
7. Displacement Tonnage – DT
8. Deadweight Tonnage – DWT
9. Register Tonnage – RT
10. Cargo Capacity / Cargo Space – CS
11. Ship’s stowage factor – SSF
12. Cargo stowage factor – CSF

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2.3.4. Technical and economic

specifications
1/ Ship’s name: name / sign appointed by a
shipowner and accepted by Registered office.
2/ Place of Registry
3/ Flag of the ship
- Conventional flag

- Flag of convenience

4/ Shipowner: the one who possesses the ship and

can use it for business purposes.
 Shipowner  Carrier?

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2.3.4. Technical and economic

specifications
5/ Dimensions of ship
 Length Over All – LOA: Distance from the bow to
the stern.
 Breath Extreme / Beam – BE: The straight line is
between the two broadest points of the ship's wall
6/ Draft / Draught: the height from the bottom of
the ship to the water.
 Light / Minima Draught: when the ship carries no
goods.
 Loaded / Maxima Draft: when the ship is full of cargo
and safe in the summer.

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Plimsoll line (load line)

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Load line mark

& draught
 Ships must have a load line mark located amidships
on both sides to indicate the maximum allowable
draught under specified conditions (geographical and
seasonal).
 The International Convention on Load Lines 1966
(ICLL 1966) with its Protocol of 1988 is a
comprehensive set of regulations to determine the
minimum allowable freeboard and defines the
conditions of load line assignment.

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What is a Plimsoll line?

 A commercial ship is properly loaded when the ship’s waterline equals the
ship’s Plimsoll line.
 The Plimsoll line is a reference mark located on a ship’s hull that indicates
the maximum depth to which the vessel may be safely immersed when
loaded with cargo. This depth varies with a ship’s dimensions, type of
cargo, time of year, and the water densities encountered in port and at sea.
Once these factors have been accounted for, a ship’s captain can determine
the appropriate Plimsoll line needed for the voyage (see above image)
 Samuel Plimsoll (1824–1898) was a member of the British Parliament who
was concerned with the loss of ships and crews due to vessel overloading.
In 1876, he persuaded Parliament to pass the Unseaworthy Ships Bill,
which mandated marking a ship's sides with a line that would disappear
below the waterline if the ship was overloaded.
 The line, also known as the Plimsoll mark, is found midship on both the
port and starboard hulls of cargo vessels and is still used worldwide by the
shipping industry.
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1. Thế nào là mức (nước) chuyên chở

và dấu chuyên chở (Loadline and
loadline mark)?
 Mức chuyên chở (loadline) là một mức nước trên thân tàu được vẽ
để đánh dấu mức tải tối đa an toàn của tàu. Mức chuyên chở được
tính toán dựa trên nhiều yếu tố như khối lượng của tàu, tổng dung
tích chuyên chở, trọng lượng riêng của nước biển và khí quyển. Tùy
thuộc vào mức độ chuyên chở của tàu và điều kiện thời tiết, mức
chuyên chở sẽ thay đổi để đảm bảo an toàn cho tàu và hàng hóa
trên tàu.
 Dấu chuyên chở (loadline mark) là các đường vẽ trên thân tàu để
đánh dấu mức chuyên chở và được định cụ thể bởi Quy định về an
toàn tàu biển quốc tế (International Convention on Load Lines). Dấu
chuyên chở bao gồm nhiều đường vẽ, trong đó đường chính gọi là
"đường tàu khô" (Plimsoll line) được vẽ trên bên ngoài thân tàu để
đánh dấu mức chuyên chở tối đa an toàn cho tàu. Ngoài ra, còn có
các đường vẽ khác được đánh dấu trên thân tàu để chỉ ra các mức
chuyên chở khác nhau tùy thuộc vào điều kiện thời tiết và tải trọng
của tàu.

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2.3.4. Technical and economic

specifications
7/ Displacement Tonnage – DT: equivalent to
the weight of water occupied by the sinking part
of the ship, measured by Long ton (LT)
 Light Displacement: equivalent to the weight of the
hull, machinery, equipment on board, water in the
boiler, the sailors and their luggage.
 Heavy Displacement: weight of ship carrying no
cargo + cargo + items provided for the trip.

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2.3.4. Technical and economic

specifications
8/ Deadweight Tonnage (DWT): The ship's
carrying capacity indicated by the maximum
tonnage at the maximum draft.
 Deadweight Capacity (DWC) = Weight of vessel with full
cargo – Weight of vessel with no cargo
DWC = Heavy Displacement – Light Displacement
= Weight of the goods and weight of items supplied for
the trip which the ship can carry at maximum draft.
 Deadweight Cargo Capacity (DWCC)

DWCC = DWC – Weight of the items supplied for the

trip = Weight of cargo to be carried

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2.3.4. Technical and economic

specifications
9/ Registered Tonnage: Total volume of empty
compartments available on the ship, calculated
by Register Ton
1 RT = 100 cubic feet = 2,83 m3
 Gross Registered Tonnage – GRT
 Net Registered Tonnage – NRT

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2.3.4. Technical and economic

specifications
10/ Cargo Capacity – CC / Cargo Space - CS:
Total volume of compartments available for
storage.
 Grain Capacity / Grain Capacity – GS
 Bale Capacity / Bale Space – BS
 GS > BS (from10-20%)

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2.3.4. Technical and economic

specifications
11/ Coefficient of Loading - CL / Ship’s
Stowage Factor - SSF: ratio of cargo space
(CS) and Deadweight capacitiy (DWC)
SSF = CS / DWC
12/ Cargo Stowage Factor - CSF: Ratio of
Volume and Weight of cargo
 Good choice: CSF = SSF

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2.3.5. Ship’s paper

 Certificate of Nationality
 Certificate of Ownership
 Certificate of Class: basis for calculating insurance
 Certificate of Tonnage: basis for tax collection and
chaterer’s consideration
 Ceritificate of Load Line Mark
 Crew List
 Log book
 Engine Tournal (check)

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2.4. Containers
 Features
 Classification
 Dimension

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2.4.1. Features
 Fix shape, durable and suitable for multi-time using.
 Special structure for transport by one or more means
of transportation.
 Special structure for cargo loading and unloading.
 Requiring separate equipment for loading and
unloading.
 Capacity ≥ 1m3

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2.4.2. Classification
Based on Weight
Weight Capacity
Small < 5 MT < 3 m3
Medium 5 – 8 MT < 10 m3
Large > 8 MT (10 MT) > 10 m3

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2.4.2. Classification
Based on Constructing Material

Steel Aluminum

Wood Plastic

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2.4.2. Classification
Based on Usage
1. General Purpose Container

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2.4.2. Classification
Based on Usage
2. Bulk Container

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2.4.2. Classification
Based on Usage
3. Reefer

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2.4.2. Classification
Based on Usage
4. Tank Container

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2.4.2. Classification
Based on Usage
5. Special Container

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2.4.3. Dimension – 20 feet cont

 Capacity: 33.1 m3 - Shell weight: 2,200 kg
 Maximum load: 30,400 kg

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2.4.3. Dimension – 40 feet cont

 Capacity: 67.5 m3 - Shell weight: 3,800 kg
 Maximum load: 30,400 kg

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THANK YOU FOR LISTENING

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