Bulk carriers

BULK CARRIERS Practical guide to the subject for all connected with the shipping business by Ji BES Formerly Manager of Chartering Department of N.V Stoomvaart Maatschappij "NEDERLAND" AMSTERDAM Second edition GENERAL DISTRIBUTORS Barker & Howard Ltd., 79 Fenchurch Street, LONDON E.C.3 M-4BU United States W S Heinman, 1966 Broadway, NEW YORK, N.Y 10023 Netherlands and Belgium Uitgeverij v/h C de Boer Jr., N 's-Gravelandseweg 17-19, BUSSUM PREFACE Since the publication of the first edition in 1965, the emergenc~ of the combined carriers - ore/oil and ore/bulk/ oil carriers - has been an outstanding development in the bulk carrying trades Undoubtedly, the closure of the Suez Canal in 1967 has accelerated this development Another important development with a far reaching effect on the freight market generally, has been the formation of bulk transport consortia The object of this book is to give an up-to-date picture of the world bulk carrier fleet with particular emphasis on the shipping angle by including information about the actual operation of bulk carriers The author expresses his sincere thanks to: This book is dedicated to the memory of my late wife whose help and cooperation assisted and encouraged me in writing my series of volumes on shipping affairs \ Fairplay International Shipping Journal, London Fearnley & Egers Chartering Co Ltd., Oslo Joachim Grieg & Co., Bergen Seabridge Shipping Ltd., London Sir W Reardon Smith & Sons Ltd., Oardiff Universal Bulk Carrier, Division of Mac Gregor-Comarain Paris Upper Clyde Shipbuilders Ltd., Glasgow S.A., fur permitting publication of interesting graphs and particulars on this subject J.BES July 1972 CONTENTS Page: Chapter: Bulk carriers ' Ore carriers 13 Ore/ oil carriers 19 OreibulkJ oil carriers, 22 General purpose bulk carriers 33 Development of world bulk carrier fleet 47 CHARTERING AND SHIPPING TERMS, volume I Draught of bulk carriers 50 Obtainable in the following languages: Speed of bulk carriers 52 Bulk carriers by flag 57 Other books by the same author: Title: Dutch Scheepvaarttermen English Chartering and Shipping Terms French l'Anglais Maritime Commercial German Japanese Chartering and Shipping Tenns 10 Fletamentos y Terminos de Embarque Turkish Chartering and Shipping Terms CHARTERING AND SHIPPING TERMS, volume II, TIMESHEET SUPPLEMENT A-N DESPATCH OF TRAMP SHIPS LINER AND TRA¥P SHIPPING TANKER SHIPPING \ 59 59 65 65 71 72 89 Bulk transport consortia: Seabridge Shipping Ltd Scottish Ship Management Ltd 12 Employment of bulk carriers: Sir W Reardon Smith & Sons Ltd Scottish Ship Management Ltd 91 93 100 13 Comparison between the operation of standard types of general purpose bulk carriers: m.s "V ancouver C'ty" m.s "Baron Ardrossan" 123 126 128 14 Newbuildings 130 15 Outlook for tramp shipping 141 CHARTERING AND SHIPPING TERMS, volume III, TIMESHEET SUPPLEMENT M-Z CHARTERING PRACTICE , 11 ~ Spanish Special types of bulk carriers: Motorcars Motorcars/lumber Sugar in bulk Chapter BULK CARRIERS " The phenomenal growth of the world bulk carrier fleet for dry cargo has been one of the most outstanding developments in the shipping scene in the last twenty years A bulk carrier can be defined as a single-deck vessel suitable to carry efficiently and economically various kinds of dry carge in bulk with different stowage factors varying from 15 to 55 cu.£t per ton The development in tramp cargo ship design can be summarized as follows: Mter the termination of the second world war, handy size tramp ships of 9.000 to 9.500 tons deadweight capacity, all told, with an average speed of 12 knots, combining a good\cubic capacity with a low gross and net tonnage, were favoured This situation has gradually changed Several ships were constructed as shelterdeck vessels, however with scantlings of sufficient strength to allow loading to closed shelterdeck draught A good example of suchan open-closed shelterdeck type was the ms ''HAR· MATT AN", which was commissioned in 1959 The principal characteristics of this vessel were: Open shelter-decker: Gross tonnage Net tonnage Deadweight capacity Printed in the Netherlands N.V DRUKKERIJ ONKENHOUT, HILVERSUM 6.880 3.540 11.015 Closed shelter-decker: 9.288 tons 5.200 tons 13.050 tons In the course of 1967, the owners of the "Harpalyce", "Harpagus", "Harmattan" and "Harpalycus" (J & C Harrison Ltd.) decided to increase the deadweight capacity by about 25 ~ by increasing the length by about 55-60 ft The following statement shows the result: H arpalyce Harpagus Harmattan Harpalycus Old d.w.t 11.830 tons 11.830 tons 13.050 tons 11.957 tons New d.w.t 15.170 tons 15.170 tons 15.700 tons 15.500 tons Total forfour ships Total increasein d.w.t 48.667 tons 12.873 tons 61.540 tons (a smallpart ofthis increase is due to deeper loading as permitted by the 1966Loadline Convention) ms "Harpalyce" Length b.p Breadth,moulded Depth, moulded Draught, summer Correspondingd.w.t Bale capacity Gross tonnage Before 450 ft in 62ftO in 39 ft in 28 ft 4% in 11.830 tons 606,030 ft'! 9,114 After 506 ft Fls in 62ft in 39ft in 29 ft 10:1f4in 15.170 tons 719,594 ft'! 10,296 Increll$e 12.48 % 5.13% 28.23 % 18.74% 12.97 % The vessels,which are very economical in operation (12% knots on 17 tons intennediate fuel oil plus - 1% ton diesel oil) are popular with time charterers From an operational point of view, time charters are attractive bearing in mind that owners can rely on a fixed income being independent of strikes - a frequent occurrence in these times, congestion at ports of loading and/or discharge etc., which risks are to be borne by time charterers nage openings, tonnage hatch, scuppers, drains, watertight cargo hatches with coamings on the second deck and scantlings for additional draught were not commensurate with the savings obtained by lower tonnage dues Another disadvantage was that when carrying general cargo the coamings around the cargo hatches on the second deck restrlted in extra stevedoring charges as compared with flush mechanical hatch covers thus simplifying the use of fork lift trucks or other mechanical means for handling general cargo on this deck when employed by liner companies in the general cargo trade The application of new regulations for the measurement of U.K registered tonnage on 1st March 1967 meant the end of the socalled "open" shelter-decker from the viewpoint of construction It may be recalled that the "open" shelter-decker had the ,advantage that the shelter 'tween deck was exempt from tonnage measurement, provided that certain arrangements were incorporated in the ship's structure viz tonnage openings in the weather deck in order to substantiate the fiction that the 'tween decks were "open" For the same reason, openings were required in the bulkheads of shelter-deck ships if they had been carried to the shelter-deck \ The major changes from the previous rules can be summarized as follows: The incorporation of the 1MCO recommendations on shelter-deck and other" open" spaces, which imply that, although the exemption of 'tween-deck spaces from tonnage will be preserved, the tonnage openings previously required for exemption, will no longer be necessary The inclusion of the 'tween-deck spaces in the gross tonnage will now be determined by whether a new hull mark, to be known as the tonnage mark, on the ship's side is submerged or not Under the new regulations, ships whose owners wish them to carry a tonnage mark, will be remeasured for tonnage with and without inclusion of these spaces Consequently, such vessels will have two sets of gross and net tonnage It is clear thatthe operation of such a type of ship, either as open-or c~osed ~helter'decker depended upon the type of cargo to be carried, eIther hght orheavy cargo In practice it often turned out that when operated in specifictramp trades in which heavy cargoes dominate, such a type ofvessel would have to be converted into a closed shelterdecker in orderto carry the maximum amount of cargo In fact, operation as an Openshelter-decker was mainly confined to employment Ontimecharter basis by liner companies In liner trades measurement cargo normally constitutes the lion's share of the general cargo, in other words, thedeadweight capacity ranks second The elimination of the former closing appliances for tonnage openings or substitution by watertight covers enhances the safety of the ship Another advantage is that watertight bulkheads can be carried to the weather deck which is very important in case of collision The open/closed shelterdeck type has now been abandoned, the extra costs resultingfrom fitting the ship as a shelter-decker i.e ton- The tonnage mark does not apply to single-deck vessels but only to ships with two or more decks, provided the second deck conforms S to regulation 16 of the Merchant Shipping (Tonnage) Regulations 1967 reading: "Second deck" means the deck next below the upper deck, being a deck: a which is fitted as an integral part of the ship's structure; b which is continuous at least between peak bulkheads both fore and aft and transversely, and c in which all hatchways are fitted with substantial and durable covers The tonnage mark is placed on each side of the ship as shown in the following figure: dispose of its fleet of general purpose tramp ships of 10.000-12.000-ton deadweight built in the years 1952-1962 to Indian operators and to go in for bulk carriers and tankers Generally speaking, distinction can be made between the followirtg types of bulk carriers Bulk carriers designed as pure ore-carriers The steady increase in world industrial activity had a very direct effect on the demand for tonnage for the movement of ore and scrap It is clear that where ores are concerned, the pure ore-carriers carry the major part as the advantages of these ships specially designed for this particular trade are self-evident However, ore can also be handled by the so-called "general purpose" bulk carriers which have been designed in such a way that when high density cargo is carried e.g iron ore, it can be loaded in alternate holds only Bulk carriers which can be employed either for the carriage of ore or oil depending upon trading conditions Obviously, such a type of bulk carrier has 'greater flexibility of trading Bulk carriers which not only comply with owners' carry any kind of dry cargo in bulk but which are carrying liquid cargo i.e a so-called ore/bulk/oil multi-purpose vessel offers maximum flexibility of requirements to also suitable for carrier Such a operation Bulk carriers designed for carrying a variety of dry cargoes with different stowage factors ranging from 15 to 55 cu.ft per ton as shown below: Stowage factor per ton Coal Grain: barley maize rye wheat Ore Phosphate Sugar Sulphur cu.ft 45/50 52/55 48/52 49/52 45/48 15/25 30/35 45 38/40 11 It is evident that the design and the construction of a "general purpose" bulk carrier of the most economical speed for world wide trading - by economical speed is meant the speed to carry a certain quantity of cargo over a given distance at the lowest cost of operation - is a rather complicated problem so that a compromise between conflicting interests is almost unavoidable Grain, coal and ore constitute the major bulk cargoes and the best compromise for the varying requirements of the transport of these commodities must be made, ore being probably the most exacting since the "general purpose" bulk carrier has to compete with the really specialised ships in this particular trade Chapter ORE CARRIERS " Good examples of handy-size ore-carriers specially designed to carry ore with maximum efficiency at minimum cost are the ore-carriers: ' Charles L.D Gerard L.D Pierre L.D which were commissioned by Louis Dreyfus & Co in 1961-1963 These vessels were specially designed for the carriage of ore from West-Africa to Dunkirk In fact, they were built with the security of a 1O-years'charter The main characteristics of these ore-carriers 'are: Length o.a Length b.p Breadth, moulded Draught, summer Deadweight capacity Machinery output Service speed Cargo and tank capacities: Ore holds Water ballast Stores Fuel and d.b tanks Fresh water tanks 653 ft 2¥4 in 623 ft 4¥4 in 86 ft 11% in 34 ft 11 in 32.500 tons 10.000 b.h.p 14 knots cu ft 689.800 900.570 70.630 54.070 8.017 These carriers have three main holds; each hold is 131 ft in long Exceptionally deep double bottom tanks have been fitted Wing tanks of 32 ft 10 in in length run along each side of the ship The wing tanks are used when travelling in ballast in combination with the double bottom tanks which afford sufficient flexibility in the ballasting arrangements 12 13 These ships have no cargo handling equipment; the cargo handling is effected by shore-based grabs only Round voyages vary from 18 to 22 days as shown by the following particulars: m.s "CHARLES L.D." Arrived: Sailed: Dunkirk Point Central Dunkirk June June 18 June June 11 June 20 June Dunkirk Point Central Dunkirk 18 June 26 June July 20 June 28 June 10 July 17 May 28 May June 19 May 29 May 10 June m.s "GERALD L.D." Dunkirk Monrovia Dunkirk The following drawings give a clear picture of the bulk carriers operated by the well-known Grangesberg Company: The sketches show: Top Middle Bottom Ship in ballast Ship with homogeneous cargo Ship with ore cargo The m.s "LUOSSA" was succeeded by two bulk carriers viz m.s "LAPONIA" and m.s "LAIDAURE" which represented further advances in the development of the bulk carrier, as shown by the following sketches It will be neted that the m.s "LUOSSA" has rather short holds or boxes, which aqd to the stability of the ships when loaded or ballasted In the "LAPONIA" type the boxes have been raised somewhat implying a still greater advantage 14 The main particulars of the "LAPONIA"'and "LAIDAURE" are: \ Length o.a Length b.p Breadth, moulded Depth, moulded Draught, summer Deadweight capacity Machinery output Service speed Dry cargo capacity Water ballast capacity 656 ft 630 ft in 88 ft in 52 ft 35 ft 111,2 in 36.400 tons 12.600 b.h.p 15.8 knots 1.660.000 cu ft 574.000cu ft = 16.200tons Cargo is carried in nine holds, four of which are constructed as special boxes with one hatch for each hold and each box The double hull constructed round the cargo holds forms tanks for the carriage of ballast water Below the cargo boxes are water- and fuel oil tanks The ship is divided as follows: Forepeak for water ballast; No.1 deeptank, used for water ballast; Five holds and four boxes surrounded by seven side tanks, port and starboard (Nos to port and starboard side tanks are used for water); 17 water ballast can also be carried in Nos and boxes; Nos and side tanks are arranged for the carriage of heavy oil; Deeptanks for water ballast or heavy oil are arranged below Nos and boxes; A pump room is arranged below No.6 box; The after peak is arranged for water ballast The four boxes which are positioned higher in the hull than the holds, are specially arranged for the carriage of ore in order to obtain a more suitable metacentric height when carrying ore As already stated, water ballast can be carried in side tanks, port and starboard which, together with Nos and boxes, give satisfactory ballast conditions in respect of trim, stress and stability This type of bulk carrier is not fitted with cargo handling equipment Discharge will have to be effected by grabs In 1971 Louis Dreyfus & Co commissioned the m.s "LEOPOLD L.D.", deadweight capacity 124,640 tons, a bulk carrier-ore strengthened This large ore carrier makes the following round voyages: Rotterdam Port Cartier St Vincent Table Bay Kisarazu Port Hedland Table Bay Rotterdam Port Cartier St Vincent Table Bay Kisarazu Port Hedland Rotterdam Arrived: Sailed: July Aug Aug Sept Sept Oct Oct Nov Dec Dec Dec Jan Febr March August August August Sept Oct Oct Oct Nov Dec Dec Dec Jan Febr March 29 12 21 30 13 31 18 12 25 22 18 12 21 15 31 21 13 25 26 21 This are darner is on time-charter to the British bulk-carrier consortium Seabridge Shipping Ltd 18 Chapter ORE/OIL CARRIERS ~ It is obvious that the combined ore/oil carrier has the advantage of greater versatility as compared with pure ore-carriers Until ± 1955 the scope for the combined oil- and ore-carrier was rather limited A trade was required in which ore moved in one direction and oil in the other Apart from the ore trade originating in Sweden, largely catered for by the ships of this type owned by the Trafik AB Grangesberg, Oxelosund, few examples of such a trade were to be found However, with the development of the Labrador ore fields, a trade has come into existence for ore-carrying ships which shuts down during the winter months, when the area is frozen, so that there is a demand for ships which can carry ore economically in the summer season and which can be employed -for carrying oil in the winter months The Grangesberg Compay was one of the first owners to operate the combined ore/oil carriers Shipments of ore are being made from Narvik, Lulea and Oxelosund; since 1963 Grangesberg have extended their field of operation to Liberia In more recent years this Company has also entered on a fairly large scale into a number of other bulk carrying trades, such as coal, grain, phosphate and oil The Grangesberg Company have consistently pursued a policy of building vessels of the largest size compatible with conditions of the trade for which they were intended As a matter of fact, the deadweight capacity of the vessels operated by this Company in 1965 varied from 12.000 - 66.000 tons Since 1965, the following bulk carriers were commissioned: m.s "Rautas" m.s "Raunala" m.s "Nikkala" m.s "Nuolja" m.s "Pajala" (ore/oil) (ore/oil) (ore) (ore) (ore/oil) d.w 65.600 tons d.w 65.600 tons d.w 71.500 tons d.w 71,500 tons d.w.l06.600tons 19 Countries: Ports of shipment: Sweden Gefle Lulea Oxelosund Turkey Iskanderun Venezuela Palua Puerto Ordaz After the termination of Warld War II are had to' be imported far the steadily expanding steel industry fram distant areas, which farced the importing cauntries to dispense with the conventianal cargo ships of 10,000-12,000 tans d.w capacity in favour af the specially built are-carriers, in arder to' reduce the cast af transport, which forms a large part af the law intrinsic value This develapment resulted in active steps being taken to' accommodate the large arecarriers, in particular in Continental ports e.g Amsterdam, Ratterdam, Emden, Bremerhaven, Hamburg, Dunkirk, Genaa, Taranto, Bagnali and Piambino The large German are-carrier "Stadt Bremen", d.w capacity 140,500 tans an a draught af 54 ft., discharged 133,000 tans of ore from TubaraO' at Rotterdam The terminal canaccammadate large are-carriers with a draught af maximum 61 feet corresponding with a d.w capacity af say 170,000 tans, the starage capacity af the terminal is 1,7 millian tans Importers af ore far the British steel industry are ata disadvantage, in terms af ace an freight, as campared with their Continental competitors, due to the fact that so far Part Talbot is the only port which can accommadate ore carriers with draughts up to 47 ft in., which correspands with a deadweight capacity af + 100,000 tans The m.s "Chelsea Bridge", d.w capacity 105,780 tans an a draught of 49 ft isa regular visitar af Part Talbat According to' recent reparts, the British Steel Corp intends bringing all imports af iran are far its Llanwern steel works thraugh Port Talbot harbour By 1974 the harbaur, which handled 2,8 million tans af iron artr far the Port Talbat steel works, will be handling about million Jans af ,iran are At present, Newport docks handle the imports af iron are far the Llanwern works Hawever, Newport is only capable af handling ships up to' 30,000 tans The re-routing of 116 ore supplies via Port Talbot in 1974 will result in cansiderable cost savings For a carrect picture af the position it should be borne in mind that the German steel industry, located in the Ruhr-area, is largely dependent upon transhipment of are into Rhine barges at Amsterdam ar Ratterdam Consequently, the cost af transpart to' the blast furnace stockyards in the Ruhr by barge must be added to' the ocean freight and ,discharging expenses Japanese steel works are placed in an extremely favourable pasition Mast steel warks are cancentrated on the seaboard Large are-carriers can berth alongside and discharge their cargaes direct into the steel warks' stockyards The s.s "Niizuru Maru", claimed to be the world's largest ore carrier, d.w capacity 165,200tons, draught 58 ft in aperates between Japan and Chile, Australia, Brazil and Angala One of the most prominent carriers af iron ore is undoubtedly the Griingesberg Company, Oxelosund, which 'Was faunded in 1896 As long agO'as 1907 the Grangesberg Campany taok delivery of the m.s "POLCIRKELN" of 3.355 tons deadweight which was constructed specifically far the iran ore trade The design of this vessel can be regarded as the prototype of the specialisedore-carrier in aperation nowadays The Griingesberg Company contralled and aperated ane af the world's largest and richest are-areas in Swedish Lapland until 1957 when a Government owned mining cancern, the Luossavaara-Kirunavaraara A B (LKAB) acquired the majarity interests Hawever, the Grangesberg Company are still respansible in their capacity as shipawners for the seabarne carriage af LKAB's portian as well as their awn share The output of iran are is sold an c.i.f basis which therefore implies that the Grangesberg Campany are in charge of the shipping arrangements, which is a very important asset in the operatian of a large fleet of are/oil carriers and bulk carriers Since the discovery and develapment of the very large iran ore deposits ,at Nimba (Liberia), the Grangesberg Campany have extended their field of operatian considerably In fact, the Griingesberg Company are acting as Managers of the LAMBO, a joint venture in which Liberian, Eurapean, Canadian and American interests are participating Since 1963 when the aperations at Nimba started, ship- 117 ments of iron ore via Buchanan have steadily increased Although shipment of iron ore has been an integral part of Grangesberg's business right from the start, Grangesberg vessels are operating on a fairly large scale in other bulk carrying trades as well e.g coal, grain, oil etc It is fairly clear that a versatile fleet is required to carry aut these varying commitments As shipowners the Grangesberg Company have steadily pursued a policy of building vessels of the largest pas sible deadweight capacity compatible with the facilities of the terminal ports and the requirements of the trades for which the ships were intended Taking into consideration that conditians in the bulk carrying trades are subject to continuous change, it is obvious that the design of economical bulk carriers with a normal working life of say 25 years is a matter requiring very close consideration In the circumstances it is not surprising that in order to achieve maximum flexibility of operation, the Grangesberg Company are concentrating on combination-carriers The present fleet comprises the following large carriers: GRANGES BERG FLEET Built: Name: d.w capacity (tons) Type: Employment: (Jan 1972) Delivery: 1972 1973 1974 d.w capacity Type: 265,000 265,000 265,000 , Bulk/oil oarrier It will be noted that since 1969 the emphasis is on the bulk-oil type; it is fairly certain that in practice oil will constitute the main source of employment COAL Another trade which is dominated by large bulk carriers is the coal trade form Hampton Roads, in particular to Japan The modern self trimming bulk carriel1sare ideal for' carrying coal from the viewpoint of fast despatch at both ends and handling charges which can be kept to a minimum Until a few years ago it was customary to stipulate a rate of loading and discharge of 1.500 tons and 1.000 tons, respectively, in coal charters from Hampton Roads to Japan In the meantime discharging facilities in Japan have been improved thus enabling Japanese charterers to agree to "seven weather working days, Sundays and Holidays included" for the combined loading! discharging operation of bulk carriers of 85,OOO-tonsdeadweight As an example the following fixture may be cited: Cargo: 1962 1963 1964 Luossa Laponia Laidaure 28,850 36,200 36,200 Bulk carrier PhiladelphialR'dam H Roads/Oxelosund Narvik! Antwerp Grain Coal Ore 1964 1965 Raunala Rautas 65,600 Ore/oil 65,600 carrier ImminghamlP Gulf P Gulf/U.K Ballast Oil 1966 1966 1969 Nuolja _~ 71,500 Bulk L Buchanan! Antwerp Ore Ore Nikkala 71,500 carrier Vitoria/Dunkirk Pajala ; 107,000 Bulk/oil P Gulf/U.K Oil carrier 118 Under construction or on order: Ham p ton R ads to J a pan (v i a Cap e): m.s "Marques de Bolarque", 85,000 tons, 10 per cent, $ 4.20, free discharge, seven days, SHine., coal, February (relet) The maximum deadweight capacity of the bulk carriers employed in the coal trade from Hampton Roads to Japan via Panama Canal is governed by the maximum permissible draught for transit of the Panama Canal viz + 38 feet, which corresponds with a d.w capacity of say 50-55,000 tons Shipments of larger quantities are effected via Cape of Good Hope; the route via Oape 'Of Good Hope implies an extra mileage of 5,400 miles In the course of 1970 the Japanese have contracted tonnage on a 119 very large scale In fact, the Japanese booked 35 million tons, of which 28 million tons comprised contracts projected over periods ranging from two to five years, commencing from the end of 1970 This total compares with 15 million tons for the whole of 1969 The transport of such large cargoes of coal via Cape of Good Hope to Japan, combined with full cargoes of crude oil from the Persian Gulf to Brazil, Trinidad or N Europe is an ideal employment for the combination-carriers, as shown in chapter 14, thus avoiding lengthy ballast voyages Japan also imports substantial quantities of coal from Australia which has emerged as a big coal exporter, both to Japan as well as to the Continent Shipments of coal from Australia are effected from Newcastle (N.S.W.), Port Hedland, Hay Point (Queensland) and Port Kembla Exports of coal have also started from Roberts Bank in British Columbia GRAIN Certain grain trades are dominated by large bulk carriers, in particular the grain trade from the Gulf of Mexico to Antwerp/ Hamburg range and Japan An analysis of the fixtures reported in the second half of 1971 gives the following result: on a single voyage basis However, it occurs sometimes that major grain charterers take up tonnage, either on time-charter basis or for consecutive voyages e.g from the Great Lakes during the open season, running from April to December, with liberty to c~mplete to full capacity in St Lawrence ports As stated before, shipowners' decision to go in for long-term employment, either on time-charter basis or for a certain number of consecutive voyages, will mainly depend upon their views about the future trend of the freight market Fixtures on time-charter basis ensure a fixed income; moreover, the risk of delay by labour trouble, congestion etc is to be borne by time-charterers In case of fixtures for consecutive voyages, these risks are to be borne by shipowners Should the open market rates improve during the period concerned, charterers will have the advantage; conversely, shipowners will have made the right choice in case the open market rates decline during the period in guestion Generally speaking, the fact that mator grain charterers are interested in long-term time-charters or in· consecutive charters is regarded as a fair indication that they not expect a recession in the open market rate The leading grain merchants are regarded as tough and screwd operators SUGAR Average quantity of grain in tons: Destinations From: St Lawrence Gulf of Mexico Br Columbia River Plate Australia United Antwerp/ Kingdom: Hamburg range: 17,000 20,000 - 10,500 - 28,000 37,000 16,000 15,000 India: Japan: 16,000 18,000 14,000 14,000 24,000 23,000 16,000 14,000 17,000 Generally s.peaking,the grain trades not lend themselves for long-term employment, taking into account that tonnage requirements vary frbm year to year, depending upon tha harvests in the traditional importing countries Grain fixtures are normally effected 120 The principal exporting areas of sugar are: Countries: Philippines U.S Atlantic/Gulf Australia (Queensland) United Kingdom/Japan Mauritius United Kingdom ~ Brazil U.S Atlantic/Gulf S Africa United Kingdom/Japan The only trades in which bulk carriers of moderate size are employed are: Philippines/U.S Atlantic/Gulf Queensland /U S Atlantic/Gulf Taking into account that Japan is not an exporter of bulk cargo, it is evident that sugar from the Philippines to U.S Atlantic/Gulf is an attractive homeward employment for bulk carriers 121 no other choice but to proceed in ballast to U.S Atlantic/Gulf, unless they can be fixed for loading a full cargo of lumber from Br Columbia to U.S Atlantic/Gulf or Europe It is a question of calculation which employment offers the best financial result Shipments of sugar from Mauritius to United Kingdom are confined to handy-sized vessels, in view of the draught restriction of 27 ft in on arrival in British ports In some cases this restriction may render it necessary to cut the deadweight capacity for cargo An exception is sometimes made for discharge in London or Liverpool, where a maximum draught of 29 ft in on arrival is allowed Sugar from Brazil to U.S Atlantic/Gulf is an attractive employment for vessels after completion of discharge of cargoes of coal from Hampton Roads to Brazil Chapter 13 COMPARISON BETWEEN STANDARD TYPES OF GENERAL PURPOSE BULK CARRIERS The following particulars were supplied by the Upper Clyde Shipbuilders: m.s ''VANCOUVER CITY" The ''Vancouver City" which was built at the Govan Division for Sir William Reardon Smith & Sons Ltd of Cardiff is a versatile type of bulk carrier of 25,800 tons deadweight It has been designed for the carriage of all types of grain cargoes without the use of shifting boards and is of the self-trimming type Other bulk cargoes such as ore etc can be carried in the five holds, all arranged forward of the engine-room/accommodation deckhouse in the now conventional manner for bulk carriers ' \ An important feature of the "Vancouver City" is that the vessel is designed to carry packaged lumber or logs in the holds and on deck up to a height of 20' 3" The ship is equipped with five 15 ton capacity deck cranes of the Hagglund hydraulic type To give ample space for stacked deck lumber, the cranes are mounted on pillars well above the deck Built to meet the classification requirements of Lloyd's Register of Shipping the "Vancouver City" also complies with British Ministry of Transport, Suez and Panama Canal regulations All accommodation and machinery are located aft and design features include a raked stem with a bulbous bow and a transom stern The main deck is without sheer, although the forecastle is sheered The five cargo holds are divided by vertical troughed bulkheads In all the holds the double bottom tank tops are extended up the sides to form hopper shaped sections and there are also wing tanks with a 30 slope under the deck to make the vessel self-trimming No.1 Hold is about 19 m long Holds Nos 2, and are each about 28 m long but No hold, which is arranged for water ballast, is about 20 m long Fuel oil 01' 122 123 ballast may be carried in the double bottom tanks but the upper wing tanks are suitable for ballast 01' grain The hatch covers are of uniform width, 12.19 m: they are of a design with electrically operated panels stowing vertically at each end of the hatches Machinery The "Vancouver City" is propelled by a B & W large-bore engine of the 6K74EF design built by J G Kincaid Ltd and installed by the Govan Division of V.C.S It is a six cylinder engine of 740 mm bore and 1600 mm stroke and is rated at 10,600 bhp at an engine speed of 120 r.p.m and with a m.i.p of about 150 Ihs/in2• The engine is fully equipped for operation on residual grade bunkers An evaporator and distilling plant is capable of providing up to 30 tons/24 h of fresh water A comparison with the standard bulk carriers built by Haugesund M.V works out as follows: 125 Length over all Breadth, moulded Winter draught Summer draught Tropical draught Deadweight capacity: Winter draught Summer draught Tropical draught Cargo capacity: Bale space: Grain space: Lower holds: Upper wing tanks: Total: m.s VANCOUVER CITY m.s BARON ARDROSSAN 569' 83'6" 32' 32'81,B" 33'41/4" 534'4" 75' 33'4%" 34'1%" 34'90/8" 25,126 25,874 26,626 Engine power: Speed, trial Speed, service Consumption of Intermediate fuel oil: Diesel oil: CALCULATION The vessel can leave New Orleans on her winter load line plus ± ± inches, say 300 tons, being the equivalent in deadweight of days' consumption of fuel, water, stores etc for the passage from New Orleans to crossing parallel 36° North It has been assum- 23,370 tons 23,655 tons 23,940 tons ed that reserves of fuel and water will be on board for minimum days' supply, say 250 tons at all times This margin of safety may 1.065.035 cu.ft 1,204,862 149,858 1.065.035 cu.ft 10,600 16 knots 151h knots 37 21f.& seem rather high Various considerations, in particular the weather conditions which may be expected on the voyage in question, the possibilities to replenish bunkers etc enter into the picture It is finally up to the Master to decide what margin of safety is required; no hard and fast rule can be given no wing tanks \ The position is as follow: Deadweight capacity on sailing from New Orleans on winter draught plus inches: 1.065.035 cu.ft 12,000 b.h.p 17,73 knots knots 15 35 Ph On board: Bunkers incl reserve Water, stores, lub.oil etc including reserve tons tons U.C.S bulk carrier of 25,875 tons deadweight on summer draught " 126 : 750 tons : 300 tons 4,815 miles January Available grain space: Lower holds: Upper wing tanks: 24,350 tons 1,204,800 cu.ft 149,900 cu.ft 1,354,700 cu.ft Total: Stowage factors: Wheat Sorghums Corn Soyabeans 25,400 tons 1,050 tons Deadweight available for grain: OF DEADWEIGHT AVAILABLE FOR A FULL CARGO OF HEAVY GRAIN FROM NEW ORLEANS TO ROTTERDAM Distance from New Orleans to Rotterdam: Time of sailing from New Orleans and arrival at Rotterdam: : Permanent summer zone : Winter load line : 1925 miles, say days : 2890 miles, say 'days Calculation 1,120,300 1,354,720 Load lines: From New Orleans to parallel 36° North From parallel 36° to Rotterdam Distance from New Orleans to 36° N Distance from 36° N to Rotterdam 46 cu.ft 481,2 cu.ft 49-50 cu.ft 50-51 cu.ft It will be noted that a full cargo of grain with a stowage factor of ± 491,2 cu.ft per ton can be loaded in the lower holds only Combined with the upper wing tanks, a full cargo of grain with a stowage factor of ± 55 cu.ft can be loaded 127 In some cases the upper wing tanks are used for separation purposes only A comparison with the m.s "Baron Ardrossan" gives the following result: Deadweight capacity on sailing from New Orleans on winter draught plus ± inches: On board: Bunkers incl reserve Water, stores, lub.oil, etc including reserve Deadweight : 700 tons : 250 tons 23,600 tons 950 tons available for grain: Available grain space in holds: No wing tanks 22,650 tons It will be noted that the breadth of the Upper Clyde Shipbuilders 26,000 ton bulk carriers exceeds the maximum breadth allowed for passage through the St Lawrence Seaway In judging this aspect it should be borne in mind that in view of the extra navigational risks when proceeding to the Great Lakes, involving the passing of several locks, and the extra insurance, several shipowners are not particularly interested in fixing their vessels from Great Lakes' ports for part cargoes, completing to full capacity in St Lawrence ports After all, the rates of freight are closely related to the rates of freight from other grain exporting tlreas The situation is, of course, different for vessels carrying cars to the Great Lakes, taking part cargoes of grain to Europe, completing to full capacity in St Lawrence ports, an excellent combination 1,065,000 cu.ft On this basis a full cargo of grain can be loaded provided the stowage factor does not exceed ± 47 cu.ft per ton It is quite clear that this type of bulk carrier has been designed "round the cargo" i.e coal and phosphate, which is the main source of employment for the vessels operated by the Scottish Ship Management Co (see: Chapter No 12 - Bulk transport consortia) The stowage factor of coal and phosphate in bulk is 46/50 and 30/35 cu.ft per ton respectively Incidentally, it may be observed that the participants in the Scottish Ship Management Co have ordered bulk carriers of 27,000 ton deadweight from the Upper Clyde Shipbuilders for delivery in 1972 and 1973 If shipowners wish to entertain cargoes of grain from Great Lakes' ports, completing in St Lawrence ports to full capacity, certain maximum dimensions have to be observed The following vessels were built with due regard to the maximum permissible dimensions: M.S "ANASTASIA IV" M.S "JOANA" Length b.p Breadth, moulded Depth, moulded Summer rln\ught d.w capacity Grain space 128 : : : : : : 168 22.86 14.1 10.54 26,600 34,980 metres (± 551 feet) metres (± 75 feet) metres (± 46 feet) metres (± 34.6 feet) tons cU.m (± 1,235,000 cu.ft.) 129 Chapter 1-4 NEWBUILDINGS OnH)il carriers Ore-Bulk-Oil carriers General purpose bulk carriers The great advantage of these combination carriers is their operational flexibility which was clearly demonstrated in 1970 when several ore/oil carriers were switched from the ore trades into the oil trades, in order to benefit from the very lucrative rates obtainable in the oil trades According to John I Jacobs Ltd's world tanker review for 1970, over 70% of the combined ore/oil tonnage was employed in the oil trades by the end of 1970 Undoubtedly, the development of the ore/oil- and ore/bulk/oil carriers has been accelerated by the closure of the Suez Canal in June 1967 The following midships sections give a general picture of the design of oil tankers ore/oil carriers, ore/bulk/oil carriers and "general purpose" bulk carriers The oil tanker has no hatch covers The ore/oil carrier has small central holds with a high double bottom Hatches are provided on top of the central tanks for loading high density ore The lengths of the holds in ore/bulk/oil carriers are different, enabling loading of different cargoes according to their densities When carrying ore, alternate spaces such as holds Nos 1-3-5 and can be used, in order to divide the weight more equally 130 ORE/BULK/OIL An analysis of the interesting statistics, published by FAIRPLAY quarterly, showing the vessels under construction or on order on 1st May 1972, produces the following result: CARRIERS Under construction or on order on 1st May 1972 ORE/OIL CARRIERS f FLAG: Under construction or on order on 1st May 1972 FLAG: 10 11 12 Japan Norway Liberia Brazil Italy Gr Britain Sweden France Greece Malaysia Panama Account Italian shipyards Total: NUMBER OF VESSELS: TONS D.W AVERAGE TONS D.W 17 13 9 11 4 1 2,828,000 2,634,000 1,607,000 1,259,000 1,227,000 1,172,000 1,065,000 847,000 639,000 165,000 155,000 166,000 203,000 179,000 140,000 112,000 234,000 266,000 212,000 213,000 165,000 155,000 569,000 142,000 81 14,167,000 175,000 10 11 Liberia Gr Britan Japan Norway Sweden Spain India Italy U.S.A Greece France NUMBER OF VESSELS: 19 12 8 2 70 TONS D.W AVERAGE TONS D.W 2,258,000 1,831,000 1,240,000 875,000 607,000 470,000 316,000 294,000 161,000 154,000 153,000 119,000 153,000 155,000 109,000 121,000 117,000 105,000 49,000 80,000 77,000 153,000 8,359,000 119,000 A comparison between the average deadweight capacity of ore/ oil- and ore/bulk/oil carriers shows that there is a difference of + 50 % between the two types This difference is probably explained by the fact that ore/bulk/ oil carriers are limited to a greater extent by port facilities as compared with ore/oil carriers, when carrying bulk cargo other than crude oil In this context it should be borne in mind that the num.ber of ports which can accommodate large ore carriers exceeding 100,000 tons d.w capacity, is limited as explained in chapter 12 The :average d.w capacities of both ore/oil- and ore/ bulk/oil carriers leads to the conclusion that the emphasis is on carrying crude oil as main source of employment The depressed conditions in the tanker market are no doubt responsible for the reluctance to order combination carriers, as clearly reflected in the following statement, covering the period 1st May 1971 - 30th April 1972 This remark applies in particular to ore/bulk/oil carriers 132 138 FLAG: ORE/OIL CARRIERS: TONS d.w (number) (number) Brazil France Great Britain Greece Italy Japan Liberia U.S.A OREfBULKfOIL TONS CARRIERS: d.w - - 994,000 167,000 275,000 273,000 1.773.000 160.000 - 2 287,000 288,000 77,000 161,000 31 3.642,000 813,000 1 18 It may be recalled that the two British O/B/O-carriers were ordered in the second quarter 1971 by the Bibby Line - participant in the Seabridge Consortium - and the Court Line Since this period no new British orders have been reported, neither for ore/oil carriers nor for ore/bulk/oil carriers It is interesting to note that the Brazilian shipowners, namely Rio Navigacion, adhere to ore/oil carriers of 131,000 tons d.w capacity, after having commissioned two ore/oil carriers of 105,000 tons d.w capacity in 1970 viz m.s "Docevale" and "Docemar" These combination carriers are trading between: Tubarao - Japan }apan-Persian Gulf Persian Gulf-Brazil Cargo: Ore In ballast Oil The flexibility of employment is clearly shown by the operation of the bulk/oil carriers: "Hoegh Rainbow", '1!oegh Rider", '1!oegh Robin" and '1!oegh Rover", d.w capacity + 99,600 tons, commissioned by Leif Hoegh & Co in 1968/1970, as evidenced by the following voyages: ' m.s "Hoegh Rider" "Hoogh Robin" Hampton Roads Trinidad Table Bay Japan In ballast Coal Wilhelmshafen Ras Lanuf Ras Lanuf Trinidad Oil Japan Ras Tanura In ballast T'nm'd a d Vitoria In ballast Ras Tanura Table Bay Trinidad Oil Vitoria Table Bay Japan \ Ore Trinidad Hampton Roads In ballast Hampton Roads Trinidad Table Bay Japan Coal apan Ras Tanura In ballast Ras Tanura Table Bay Havre Oil m.s "Hoegh Rainbow" Rotterdam Trinidad Table Bay Ras Tanura Ras Tanura Table Bay Rio de Janeiro Rio de Janeiro Vitoria Vitoria Table Bay Japan 134 J I n b aast 11 Japan Ras Tanura In ballast Ras Tanura Table Bay Trinidad Oil Trinidad Table Bay Ras Tanura In ballast Ras Tanura Table Bay Tenerife Oil Oil In ballast Ore 135 A round voyage: Hampton Roads-Cape of Good Hope-JapanPersian Gulf-Cape of Good Hope-Trinidad - Hampton Roads takes + months, so that round voyages can be made per year In 1970 the following long-term contract was reported: HAMPTON BULK CARRIERS OTHER THAN COMBINATION VESSELS, ON ORDER: Year Total number of New orders: Number of Date: vessels on order: vessels delivered: ROADS TO JAPAN VIA CAPE: Hoegh contract, 16 cargoes of 80,000-85,000 tons coal, $ 6.40 per ton, free discharge, seven days, SHine., shipment commencing first quarter 1971 1969 1st May 382 It is evident that such long-term commitments involve considerable financial risks, depending upon the future trend of the freight market However, such long-term contracts ensure continuous employment It may happen that own tonnage cannot be provided to lift cargoes, in which case it will be necessary to resort to chartering outside tonnage Such a relet-fixture was reported in December 1971 viz.: HAMPTON ROADS TO JAPAN: m.s "Rudby" (motor vessel on timecharter) 85,000 tons, 10 per cent, $ 4.25, free discharge, coal, Febr./ March (Hoegh-relet) 1st August 367 1st November 386 In order to take up this employment, the m.s "Rudby" had to proceed in ballast from Japan via Cape of Good Hope to Hampton Roads (15,100 miles), which is probably the longest ballast voyage ever made In fact, the ballast voyage took 41 days Owners of such large bulk carriers must be prepared to undertake very long ballast voyages as shown by the following details: m.s "Rudby" Miles: Vitoria Cape Japan Japan Cape Pepel Pepel Cape Japan Japan Cape H Roads H Roads Cape Japan 136 - Ore 11,500 In ballast 11,500 Ore 11,500 In ballast Co~ (Hoegh-relet) 1970 1st February 399 1st May 420 1st August 482 1st November 522 1971 1st February 630 1st May 671 1st August 600 1st November 683 1972 1st February 651 1st May 599 23 38 69 50 60 47 60 39 112 50 96' 56 133 25 91 50 73 51 49 59 34 66 12 64 , 15,100 15,100 It will be noted from these figures that the pace of ordering new bulk carriers has slowed down considerably The heavy ordering of new tonnage in the period May 197o-May 1971 is reflected in the steadily rising number of deliveries 137 SPECIFICATIONOF BULKCARRIERS,OTHERTHANCOMBINATION VESSELS,UNDERCONSTRUCTIONORON ORDERON 1st MAY1972 FLAG: NUMBER: TONSD.W AVERAGE TONSD.W Liberia Japan Great Britain Norway Greece W.Germany India Panama Sweden Poland U.S.S.H Peru Taiwan Brazil Others (incl flag unknown and builders account) 124 93 73 44 47 27 27 27 11 17 11 14 12 4,572,000 4,527,000 3,542,000 2,428,000 1,507,000 1,394,000 1,043,000 883,000 659,000 533,000 376,000 358,000 339,000 319,000 36,900 48,700 48,500 55,200 32,100 51,600 38,600 32,700 59,900 31,400 34,200 25,600 28,300 39,000 64 2,438,000 38,100 Total: 599 24,918,000 41,600 These figures include bulk carriers, ore-strengthened, with deadweight capacities running up tot 165,000 tons Generally speaking it is fairly safe to assume that bulk carriers, exceeding 50,000 tons d.w capacity, ore-strengthened, will be mainly employed in the OTe trades By excluding these large bulk carriers, the position is as follows: BULKCARRIERSUNDERCONSTRUCTIONORON ORDER,EXCLUDING COMBINATIONVESSELSANDBULKCARRIERSEXCEEDINq 50,000 TONSD.WoCAPACITY: 1st May 1972 FLAG: Liberia Japan Great Britain Greece W.Germany Panama Norway Poland U.S.SoH Peru India Taiwan Brasil Sweden Other countries (incl flag unknown and builders account) Total: NUMBER: TONSD.W AVERAGE TONSDoW 95 71 53 44 18 22 19 16 11 14 18 11 2,643,000 2,066,000 1,406,000 1,302,000 584,000 578,000 506,000 478,000 376,000 358,000 328,000 279,000 163,000 123,000 27,800 29,100 26,500 29,600 32,400 26,300 26,600 29,900 34,200 25,600 18,200 25,400 32,600 30,700 47 1,301,000 27,700 448 12,491,000 27,900 This statement clearly shows the marked preference for handysize '~general purpose" bulk carriers of ± 27,000 tons deadweight capacity It may be recalled that ;in a statement made by the Ocean Steam Ship Co Ltd in October 1970, when three 26,600 ton d.w bulk carriers were ordered, it was stated that this range of ships had been chosen for its outstanding flexibility, being able to be profitably employed in a very large number of trades including the St Lawrence Seaway Ocean Steam Ship Co is a member of the Atlantic Bulkers, a consortium specialising in world-wide bulk carrier trading with ships in the 26-27,000 ton d.w range 138 139 A company which has not followed the general trend to build handy-sized "general purpose" bulk carriers of ± 26,000 tons deadweight is AjS Kristian Jebsens Rederi, Bergen In 1967 eight specialised bulk carriers were ol'dered by this Company and their associates from the Scott Lithgow Group for operation between Australia, U.S.A., Canada and Europe These ships were specially designed to enable them to enter several shallow-draught Australian ports The first ship of the new sel'ies viz m.s "Brunes" was delivered in 1969; the principal particulars are: Length over all : Length between perpendiculars : Breadth moulded : Draught on summer load line : d.w capacity on summer load line: Total grain capacity : Total water ballast capacity : 520 ft 495 ft 74ft lOlh inches 31 ft 3lh inches 21,200 tons 919,350 cu ft 8,136 tons It will be noted that the breadth permits navigation of the St Lawrence Seaway The vessel's hull is divided into six main cargo holds The doublebottom tanks are carried up to the sides to form hoppers In order to make the vessel self-trimming for grain, top wing water-ballast tanks, with 30° slope, are fitted below the upper decks Holds Nos and are capable of being filled with water ballast The tank top plating has been suitably increased throughout for carrying heavy ore cargoes The main holds are served by six 12-ton swinging derricks All types of grain can be carried without shifting bowds Other bulk cargoes can be carried such as cement, coal, iron ore etc., as well as timber cargoes on deck and below deck Since these vessels were ordered from Scott Lithgow, orders for six21,000ton d.w vessels have been placed with Nippon Kokan, from which it can be concluded that this type of handy-sized bulk carrier fully meets owners' requirements 140 Chapter 15 OUTLOOK FOR TRAMP SHIPPING , It is common knowledge that it is extremely difficult to forecast the freight market trends yvith any degree of accul'acy, even for short periods, let alone for long periods In fact, tramp shipowners with a long experience will be more inclined to be guided by keeping close track of the daily fixtures for prompt loading Their expectations as regards freight rate trends over long periods will be influenced by long-term contracts, either for consecutive voyages or time-charter for account of leading grain merchants or Chinese charterers At the time of writing-May 1972-tramp shipowners are faced once again with the situation that a reasqnable balance between tonnage supply and demand cannot be expected in the foreseeable future On the contrary, in the light of the large number of newbuildings which will be delivered in the course of 1972-1974-see chapter 14-tramp shipowners may be heading for a long period of depression It seems that in ol'der to acquire a better state of balance between tonnage supply and demand-after all, the law of supply and demand determines the level of open market rateslaying-up on a large scale will be unavoidable It is obvious th,at owners of the older-type of tramp vessels with a deadweight capacity of 10,000-12,000tons with their relatively high operating costs, as compared with the more economical bulk carriers, will be faced with the decision of continuing to run their ships at a loss, which may ,assume large proportions in to-day's depressed freight markets, or to lay-up At the time of writing even modern bulk carriers cannot cover their operating costs without any allowance for depreciation Generally speaking, shipowners are reluctant to take the painful decision to lay-up It should be borne in mind that the cost of laying-up is far from negligible Obviously, the cost of laying-up varies, depending upon the nationality, the laid-up insurance, the degree of maintenance which is considered necessary Another consideration is the reluctance to dismiss a good crew, in particular the deck- and engineering officers, who may have been engaged on a 141 company's service contract It is also well known that when ships are laid up they deteriorate much faster than when they are in service According to the latest figures compiled by Lloyd's, 469 dry-cargo ships with a d.w capacity of 3,356,000 tons were laid up through lack of employment at ports throughout the world on 30 th April 1972 It is estimated that 8-10 million tons will have to be laid up in order to effect a better balance between tonnage supply and demand Whether this estimate will prove to be correct is anybody's guess A remedial measure may be to introduce a rate-stabilisation scheme However, it may be recalled that in the past all efforts to introduce such a scheme between tramp shipowners all over the world with the object of raising the open market rates to abetter level, proved unsuccessful Such a ooncertedeffort is sound in principle, but experience has taught that in practice it is very difficult, to say the least, to come to an understanding, which is not surprising having regard to the different types of tramp ships, nationalities, varying operating costs etc Greek shipowners disposing of a large number of older vessels of the "Liberty-type" or other warbuilt ships were strongly in favour of such a rate stabilis,ation scheme However, the fixing of an adequate lay-up allowance proved to be a great stumbling block It is conceiV'ablethat owners of modem and efficient tramp ships, in particular Norwegian owners, were loath to join such a scheme, which they regarded as a pension-fund for uneconomical or obsolete tramp ships For a complete picture of the position it may be added that a similar scheme in the tanker trades-the so-oalled "Intertanko" schemehad a fair measure of success In fact, it resulted in maintaining tanker freights at reasona:bly satisfactory levels At the time, 1,000,000 tons of surplus tanker tonnage was withdrawn from the market against payment of adequate lay-up allowances However, this remedial measure was made possible by the relatively small number of tankers involved, as compared with the far greater number of dry-cargo ships In other words, the situation in the tanker trades was far less complicated, as compared with the dry-cargo trades It should also be borne in mind that in recent years the situation has changeff asa result of the policy of newly-independent countries to build up their own national fleets in competition with the 142 traditional maritime fleets As matters are, the prospects of launching a rate stabilisation scheme for dry-cargo vessels seem to be very remote The present depressed state of the wor1d freight market is mainly due to the unexpected withdrawal of Japanese charterers from the freight market in September 1970 It may be recalled that Japanese charterers had taken up a large number of vessels, either for consecutive voyages or time-charter, for periods varying from to years at high rates By September 1970 it turned out that the tonnage requirements of the Japanese industry had been overestimated considerably and charterers had no choioe but to relet tonnage at a considera:ble loss Several contracts closed by Norwegian shipowners for coal from Hampton Roads to Japan were taken over by J1apanese"velets" at rates which showed a handsome profit for the original owners It is obvious that from tramp shipowners' viewpoint it is unfortunate that the world freight market is dependent in such a great measure upon the development of Japan's ~nomy The following fixtures for long-period employment, reported in March 1972, serve to underline the fact that tramp shipowners are not optimistic about a turn of the tide in their favour in the near future: m.s "Glafkos", d.w 28,600 tons, fixed on long-term time charter at $ 4.20 per ton, relet to other charterers for maximum 12 months' trading at $ 1,96 per ton; m.s "Farmsum", d.w 40,000 tons, fixed for 18 months' trading in direct continuation from Marchi April 1972, at $ 1,72% per ton; Japan Line contract for 180,000 tons phosphate from Tampa to Korea in vessels of 25,000 - 30,000 tons, at $ 5,07% per ton, free in and out, shipment over 1973 This fixture shows there is a tendency to secure long-term employment So far it was customary in the phosphate trade from Tampa to the Far East to fix tonnage on a voyage-to voyage basis It is fairly safe to ,assume that in the light of the large number of newbuildings, the world freight markets will have to cope with an excessive supply of tonnage in the coming years in other words, the ,already existing imbalance between tonnage supply and demand may continue for quite a long time 143 In conclusion, the following comments in the annual report covering 1971, published by Messrs van Ommeren, Rotterdalm, operators of 17 modern drycargo vessels with a deadweight capacity of ± 360,000 tons, clearly illustrate the present position: "Dry-cargo freight rates, having soared to unexpected heights in 1970, began to fall during the first half of 1971 until in July they were lower than at any time since the Second World War The extremely poor freight market strongly affected the operating results of our dry-cargo fleet, especially in the second half of the year Our vessels had been partly chartered on the open market on a voyage-charter basis and it happened more than once that freight rates had to be accepted which resulted in losses almost as great as if the vessels had been laid up Our four vessels operating in the liner trade continued to be employed on a reasonable time-charter basis With the present outlook it is hard to make predictions A considerable improvement of the freight market for ocean shipping can hardly be expected although in the long term the growth of world trade may give a new impetus to the demand for tonnage in the overseas goods trade." It serves no purpose to enlarge upon these comments which clearly reflect the present state of affairs viz that too many ships are chasing too few cargoes This Company operates different types of vessels viz modem cargo ships, which are engaged in liner trades, bulk carriers up to 43,000 tons d.w capacity, as well as tankers Messrs van Ommeren have a very long experience in the shipping business; in other words they are well qualified to judge the ,different problems which are confronting shipowners allover the world in these times of depressed world freight markets good irrespective of the result of Russia's own domestic harvests during the contract period of years In July Russia embarked upon a massive chartering programme for shipment of grain from the Great Lakes and U.s.Gulf to Russian Baltic and Black Sea ports Under the agreement, Russia is committed to buy at least $ 200,000,000worth in 12 months, beginning 1st August 1972 In little more than one week tonnage had been chartered for well over million tons Several ships were chartered for consecutive voyages Apparently, charterers wished to take full advantage of the generally low level of rates or put in another way, charterers did not expect a further decline in freight rates, which is surely an encouraging sign for tramp shipowners on a weak market It is common knowledge that in the summer months the grain trade is normally at its lowest ebb, awaiting the result of the domestic harvests in the importing countries Another unexpected development which had a marked effect upon the level of freight rates in the Far East-was the 91-day seamen's strike in Japan, which resulted in a sharp increase in rates The major mineral suppliers exerted heavy pressure upon Japan to take adequate measures to carry out their commitments, in order to clear stocks of steel-making materials, including iron ore and coking coal, which were piling up in Australia and America as a result of delayed shipments caused by the strike In the circumstances, the Japanese had no alternative but to charter tonnage In fact, the Japanese chartered 2,200,000 tons d.w in four weeks time at steadily rising rates These developments clearly illustrate the vicissitudes of the freight market As already explained in this book, any future assessment of prospects on the world freight markets has a very relative value This remark applies in particular to the world wide demand for grain tonnage In normal circumstances, the tonnage requirements largely depend upon the outcome of domestic harvests but here again, there is no hard andJast rule As a case in point, the recent record purchase of $ 750,000,000(£ 280,000,(00) worth of grain by the Sovjet Union for shipment over years, commencing 1st August 1972, may be mentioned This agreement between U.S.S.R and U.S.A will hold 144 145 ... 1972 CONTENTS Page: Chapter: Bulk carriers ' Ore carriers 13 Ore/ oil carriers 19 OreibulkJ oil carriers, 22 General purpose bulk carriers 33 Development of world bulk carrier fleet 47 CHARTERING... operators and to go in for bulk carriers and tankers Generally speaking, distinction can be made between the followirtg types of bulk carriers Bulk carriers designed as pure ore -carriers The steady... PRACTICE , 11 ~ Spanish Special types of bulk carriers: Motorcars Motorcars/lumber Sugar in bulk Chapter BULK CARRIERS " The phenomenal growth of the world bulk carrier fleet for dry cargo has been