INTRODUCTION

SEMO3813
MARINE TRANSPORT AND ECONOMICS
PROF IR DR. AB SAMAN B. ABD KADER, P.ENG,
FARAH ELLYZA HASHIM, PhD.
ARIFAH ALI, PhD

1
COURSE INTRODUCTION

• COURSE INFORMATION

• ATTENDANCE

• COURSE TIMETABLE

• EXPECTATIONS

2
TOPIC 1.1

INTRODUCTION

3
Objectives

i. To show the relation between international trade and

the nature of international shipping.

ii. To show the grouping of the world in term of their

Volume of participation in international trading.

iii. To show the major division of products according to

world grouping.

4
TRANSPORT

5
SHIPPING

6
SHIPPING

7
Introduction

1. The composition and characteristics of international

shipping is very much related to the composition and
characteristics of international trades between
countries around the word.

2. Understanding on each participating countries, its

trade commodities and its behavior in trading will
give a better insight on the understanding of the
pattern of international shipping.

8
TYPE OF TRADE COMMODITIES

9
Trading country and shipping

i. The trading country select the type of commodity to be

traded based on its capability

ii. Trading country select type of capability, in relation to

which economic activity is best, in accordance with the
theory of ‘ comparative advantage´.

iii. Trading country try to improve and maximize participation

in international trading in all aspects (Administrative,
legal, etc) including transportation.

iv. Trading country thus include in its overall infrastructure in

its international trading the acquisition of ships

10
Trading country and shipping

v. Ships acquired may strictly support its type of commodity

traded.

vi. As well as commodity traded by other countries to it of to

other

vii. This thus gives indication to the distribution of type of

commodity and type of ships around the world.

viii. This in turn represents the nature of shipping operation

around certain regions of the world.

11
Classification / grouping of world
trading
The above leads the grouping of countries around the word into four
(4) categories.

Group I - the industrialized countries comprising Western Europe,

North America, Japan, Australia and New Zealand.

Group II- the high-income oil producing countries comprising

Saudi Arabia, Oman, Libya, and Kuwait.

Group III- the Eastern Europe (previously the socialist block)

comprising East Germany, Poland, and members of
the Russia block.

Group IV -the developing countries comprising the Southeast

Asia.

12
Classification / grouping of world
trading
The above leads the grouping of countries around the word into four
(4) categories.

Group I - the industrialized countries comprising Western Europe,

North America, Japan, Australia and New Zealand.

Group II- the high-income oil producing countries comprising

Saudi Arabia, Oman, Libya, and Kuwait.

Group III- the Eastern Europe (previously the socialist block)

comprising East Germany, Poland, and members of
the Russia block.

Group IV -the developing countries comprising the Southeast

Asia.

13
Classification / grouping of world
trading
Note the fact that…
• flow of commodity depends on demand by world
population, export and import activities should be more for
Group IV
• import and export activities concentrates among Group I.
This is, in one way due to faster flow of commodity internally
within each of Group I country. Also due to very active
economic activity.
• group IV exports to Group I more that other groups. Leading
us to a point that Group I involves in processing commodity
originating from Group IV.
• this situation of unbalance share of international economic
activities has been a major debate. But Group IV share has in
1982 been forecasted to increase yearly by around 3%

14
Classification / grouping of world
trading
Note the fact that…(continued)..
• Group I export activities is 60% to its members, thus in a way
indicating the nature of end product of economic activities.
• Group IV exports raw materials to Group IV. Export and import
between members of GROUP IV only stands at 29%. This according to
UNCTAD only amounts to 6% of world trade. Activities among
members of GROUP IV is low because, of one primary reason, that
they are producing the same kind of commodity.
• Among the Group IV Asian take a better share of international
trading.

15
Classification / grouping of world
trading
• Google ‘unctad classification’

• Differentiate COUNTRY CLASSIFICATION and PRODUCT

CLASSIFICATION

• Download groups' composition. Find categories for Malaysia

➢/High-income developing economies
➢/Upper-middle-income economies (World Bank)
➢/Selected exporters of petroleum
➢Selected exporters of manufactured goods
➢…
➢….
➢…

16
Trade composition

17
Trade composition

18
Trade composition

+ Non- PRIMARY
ferrous COMMODITIES
metals

MANUFACTURES
COMMODITIES

19
Trade Current Trend

• Global trade hits record high of $28.5 trillion in 2021, but likely to be
subdued in 2022 | UNCTAD

20
TOPIC 1.2

CARGO SHIP

21
Cargo Ship

• A cargo ship or freighter is any sort of ship or vessel

that carries cargo, goods, and materials from one
port to another.

• Thousands of cargo carriers ply the world's seas and

oceans each year; they handle the bulk of
international trade.

22
Cargo Types

• Specialized types of cargo vessels include container

ships and bulk carriers (technically tankers of all
sizes are cargo ships, although they are routinely
thought of as a separate category).

•Cargo :- the goods carried aboard the ship for

hire

•Freight :- the compensation the ship or

charterer receives for carrying the cargo
23
container ships and bulk carriers

• Draw by turn in 3 seconds

24
2 classes of the ocean shipping
business:
• Liner business (like bus service – fixed routes)

• Tramp-tanker business (bulkers) (mostly on charter

arrangement – based on supply and demand)

25
Sizes of Cargo Ships

• Cargo ships are categorised partly by their capacity,

partly by their weight, and partly by their
dimensions (grt, nrt, dwt)

26
Sizes of Cargo Ships

• Cargo ships are categorised partly by their capacity,

partly by their weight, and partly by their
dimensions (grt, nrt, dwt)

• Grt:
• Nrt:
• Dwt:

27
How a Steel Box Changed the World

28
Container Ship

ZIM Container ship in Istanbul The Colombo Express in Germany

Container ships are cargo ships that carry all of their

loads in truck-size containers, in a technique called
containerization.
29
History
• The initiation of container shipping forms one of the
most remarkable developments in the maritime
cargo industry. Container ships, a type of cargo ship,
have revolutionised how cargo supplies are ferried
and transported across the world by assuring the
safety and security of the thus transported cargo
supplies.
• Container ships are a good example of an integrated
approach to the problem of transporting goods.
Once goods are placed in the container at a factory
or depot, they can be carried by road, rail or sea,
being transferred from one to another at road or
rail depots or a port.
30
History

• The earliest container ships were converted tankers,

built up from surplus T2 tankers after World War II

• The purpose-built container ship Clifford J. Rodgers,

carried 600 containers between North Vancouver,
British Columbia and Skagway, Alaska

31
Characteristics

• The hull of a typical container ship is a

huge warehouse divided into cells by
vertical guide rails. These cells are
designed to hold cargo in pre-packed
units – containers.

32
Characteristics
• Shipping containers are usually made of steel, but
other materials like aluminium, fiberglass or plywood
are also used. They are designed to be entirely
transferred to and from smaller coastal carriers,
trains, trucks or semi-trailers (and so are carried by
different modes of transport during one voyage, thus
giving the name intermodal transport). There are
several types of containers and they are categorized
according to their size and functions.

33
Characteristics
• Cargo too large to carry in containers can be handled
using flat racks, open top containers and platforms

• There are also container ships called roll-on/roll-off

(RORO), which utilize shore-based ramp systems for
loading and unloading.

• Over the years, technological advancement has made it

possible for comparatively far more feasible
methodologies. However, crane systems still play a
significant role in the loading and unloading operations
of the containers to and from the vessels’ holds.

34
Characteristics
• The cargo-carrying section of the ship is divided into
several holds with the containers racked in special
frameworks and stacked one upon the other within the
hold space.
• Containers may also be stacked on hatch covers and
secured by special lashings. Some modern ships
dispense with the hatch covers, pumps dealing with any
water that enters the holds.
• Cargo holds are separated by a deep web-framed
structure to provide the ship with transverse strength.

35
36
Architecture

• There are several key points in the design of modern

container ships. The hull, similar to that of bulk carriers
and general cargo ships, is built around a strong keel.
Into this frame is set one or more below-deck cargo
holds, numerous tanks, and the engine room.

• The holds are topped by hatch covers, onto which more

containers can be stacked. Many container ships have
cargo cranes installed on them, and some have
specialized systems for securing containers on board.

37
Size Categories
• Container ship capacity is measured in twenty-foot
equivalent units (TEU). Typical loads are a mix of 20-foot
(1-TEU) and 40-foot (2-TEU) ISO-standard containers.

• Container ships are distinguished into 7 major size

categories: small feeder, feeder, feedermax, Panamax,
Post-Panamax, New Panamax and ultra-large.

• As of December 2012, there were 161 container ships in

the VLCS class (Very Large Container Ships, more than
10,000 TEU), and 51 ports in the world can accommodate
them.

38
Size Categories

39
Size Categories
• Container ships have been built in increasingly larger
sizes to take advantage of economies of scale and
reduce expense as part of intermodal freight
transport. Container ships are also subject to certain
limitations in size.

• Primarily, these are the availability of sufficiently large

main engines and the availability of a sufficient
number of ports and terminals prepared and equipped
to handle ultra-large container ships. Furthermore,
some of the world's main waterways such as the Suez
Canal and Singapore Strait restrict the maximum
dimensions of a ship that can pass through them.
40
Size Categories
• In 2016, Prokopowicz and Berg-Andreassen defined a
container ship with a capacity of 10,000 to 20,000 TEU as a
Very Large Container Ship (VLCS), and one with a capacity
greater than 20,000 TEU as an Ultra Large Container Ship
(ULCS).

• As of June 2022, the record for the largest container ship is

held by the Ever Alot built by China State Shipbuilding
Corporation(CSSC), with a capacity of 24,004 TEU.

1. Prokopowicz, Adam K.; Berg-Andreassen, Jan (December 2016). "An evaluation of current trends in
container shipping industry, very large container ships (VLCSs), and port capacities to accommodate TTIP
increased trade". Transportation Research Procedia. 14: 2910–2919. doi:10.1016/j.trpro.2016.05.409.
2. ^ "全球最大！沪东中华交付中国首艘24000TEU集装箱船 - 在建新船 - 国际船舶网". www.eworldship.com.
Retrieved 22 June 2022.
41
Container Loading Records

42
Thank You

43