A Group One Subject/Course : NB: No exemption is permitted from this subject. Compulsory subject year 1 of qualifying examinations.
- To ensure a sound understanding of the elements of knowledge common to all sectors of shipping
- To develop relevant communication skills
The Shipping Business Entity
Sole traders, partnerships, private and public limited companies, conglomerates and multinationals; company organisation and management; vertical and horizontal integration; quality assurance systems.
Shipping Business Sectors
- Dry Cargo Chartering: Role of the broker; relationship with shipowners and charterers, the market and how it operates.
- Tanker Chartering: Distinctive features of the market; brokers, owners and charterers (including oil majors, producers, traders); use of Worldscale.
- Ship sale & purchase: Buyers, sellers, brokers and valuers; the stages in the sale of a ship; the market in ships.
- Ship operation & management: The need for ship managers, in-house or independent; services offered, including total, commercial, technical management; crewing agencies.
- Port Agency: Tramp & tanker agents; scope of work; relationship with shipowner and charterer; supervisory/protecting agents.
- Liner agency: In-house or independent; types of appointment; range of
responsibilities; relationship with line operators, exporters, shippers, forwarders, NVOCs.
- Freight forwarders and non vessel operating carriers. Agency role and carrier role.
- Multi-modal transport, logistics and supply chain management.
Business ethics in shipping; maritime fraud; minor fraud and default; Areas of major fraud and its avoidance.
Geography Of Trade
Trading patterns of main raw materials; Major ports, their principal trades and characteristics; The choice of transport modes; Effects of weather and other natural phenomena upon shipping and trade.
International Trade & Finance
- Terms of sale in international trade; INCOTERMS; obligations of buyer and seller.
- Importance of documentation; the insurable risk.
- Methods of payment, including documentary letters of credit; ICC Uniform Custom & Practice; bills of exchange.
- Regulatory control of imports and exports including customs procedures & licensing.
- Foreign currency transactions; currency hedging.
- Calculating, collecting and remitting freight, hire and other funds; accounting with principals; clients’ funds; freight hedging.
All forms of business communications, including letters, memos, formal reports, market reports, articles for publication in different media, e-mail. The use of computers and computer networks in communication and other business applications.
Shipping Organisations – Their Role And Contribution
- Shipowner organisations – INTERCARGO; INTERTANKO; Baltic and International Maritime Council (BIMCO);
- International Chamber of Shipping; National Shipowners’ Associations.
- Brokers and agents organisations – Institute of Chartered Shipbrokers; The Baltic Exchange; Federation of National Associations of Shipbrokers and Agents (FONASBA); International Federation of Forwarding Agents Associations (FIATA).
- United Nations agencies – International Maritime Organisation (IMO), United Nations Council for Trade & Development (UNCTAD).
- Chambers of Commerce; International Chamber of Commerce; International Maritime Bureau.
- The Corporation of Lloyds and other insurance markets.
- Classification Societies, including Lloyds Register of Shipping; International
- Association of Classification Societies.
- International Transport Workers’ Federation (ITF)