Introduction to Marine Cargo Management

440 Pages·2014·2.351 MB·English

by  Mark Rowbotham

INTRODUCTION TO
MARINE CARGO MANAGEMENT
Cargo management, especially in the maritime sphere, plays a vital role in the
transfer of goods between seller and buyer. However, despite over 90% of the
world’s international trade being conducted by sea, often very little is known
about this subject by either party.
This unique text provides a clear and comprehensive introduction to the
principal elements involved in the management of marine cargo and the
carriage of goods by sea. Not only does it analyse key theories and debates in
the maritime freight sector, it is equally instructive on practice and logistics.
Furthermore, the book provides a thorough guide to the roles and responsi-
bilities of all parties involved in this dynamic industry.
This second edition has been fully revised and updated to incorporate the
very latest changes in cargo management legislation and procedures, including:
• Offshore oil and gas supply management
• The revised INCOTERMS 2010
• Tramp shipping and spot cargo trading
• Project cargo management
• Dry and liquid bulk cargo management
• The IMDG Code and the marine carriage of dangerous and hazardous
goods
• Cabotage
• Salvage
• Risk management and best practice
This is an essential guide for shipping professionals, academics and students
of marine logistics, and international trade.
Mark Rowbothamis a Lecturer at Liverpool John Moores University, as well
as Distance Learning Tutor at Middlesex University.
LLOYD’S PRACTICAL SHIPPING GUIDES
Other titles in this series are:
Steel: Carriage by Sea
by Arthur Sparks
(2009)
Port Operations: Planning and Logistics
by Khalid Bichou
(2009)
Risk Management in Port Operations, Logistics and Supply Chain Security
by Khalid Bichou, Michel G.H. Bell and Andrew Evans
(2009)
Port Management and Operations
3rd Edition
by Professor Patrick M. Alderton
(2008)
Introduction to Marine Cargo Management
by J. Mark Rowbotham
(2008)
Maritime Law
6th Edition
by Chris Hill
(2005)
The ISM Code: A Practical Guide to the Legal and Insurance Implications
by Phil Anderson
(2005)
INTRODUCTION TO
MARINE CARGO
MANAGEMENT
BY
J. MARK ROWBOTHAM
SECOND EDITION
LLOYD’S PRACTICAL SHIPPING GUIDES
Series editor: Peter J. McArthur
Second edition published 2014
by Informa Law from Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Informa Law from Routledge
711 Third Avenue, New York, NY 10017
Informa Law from Routledge is an imprint of
the Taylor & Francis Group, an Informa business
© Mark Rowbotham 2014
First edition published by Informa Law 2008
All rights reserved. No part of this book may be
reprinted or reproduced or utilised in any form or by
any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission
in writing from the publishers.
While every effort has been made to ensure that
the information contained in this book is correct, neither the
author nor Informa Law can accept any responsibility for any
errors or omissions or for any consequences
arising therefrom.
Trademark notice: Product or corporate names may be
trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.
Lloyd’s and the Lloyd’s crest are registered trademarks
of the society incorporated by the Lloyd’s Act 1871
by the name of Lloyd’s.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Rowbotham, J. Mark.
Introduction to marine cargo management/
by J. Mark Rowbotham. –Second edition.
pages cm –(Lloyd's practical shipping guides)
1. Cargo handling. I. Title.
VK235.R69 2014
387.5′44–dc23
2013034741
ISBN: 978-0-415-73241-3 (pbk)
ISBN: 978-1-31581-401-8 (ebk)
Typeset in Plantin
by Florence Production Ltd, Stoodleigh, Devon, UK
CONTENTS
Acknowledgements viii
‘Cargoes’ x
Table of cases xi
Table of UK legislation and international legislation xiii
Table of conventions, directives, regulations, treaties xv
List of figures and tables xix
Introduction xxi
CHAPTER 1: THE MARITIME SECTOR 1
1 Overview of the UNCLOS 1
2 Vessel traffic monitoring 6
CHAPTER 2: CARGOES AND VESSELS 9
1 Types of marine cargo traffic 9
2 Types of cargo vessel 13
3 The nature of cargoes 21
4 The port system 24
5 The development of containerisation 27
6 Multimodalism 34
CHAPTER 3: CHARTERING AND BULK CARRIAGE 49
1 Chartering 49
2 Break-bulk cargo 54
3 Bulk carriage 63
CHAPTER 4: LIQUID BULK CARGO MANAGEMENT 77
1 Tankers 77
2 Liquid bulk carriage 90
vi Contents
3 Methods of oil transport 91
4 Oil products 93
5 Codes for the carriage of dangerous bulk cargoes by sea 94
6 Tanker management 98
7 The sea transport of liquefied gases in bulk 107
CHAPTER 5: OFFSHORE OIL AND GAS
OPERATIONS SUPPORT 123
CHAPTER 6: ORGANISATIONS, PROCESSES
AND DOCUMENTATION 134
1 Maritime organisations 134
2 INCOTERMS 142
3 The shipping organisation and shipping process 149
4 Ro-Ro shipments 158
5 Freight documentation 162
CHAPTER 7: LEGAL, FINANCIAL AND
INSURANCE ISSUES 177
1 Maritime cargo legislation and carriage contracts 177
2 The financial aspects of cargo management 193
3 Risk management and marine insurance 221
CHAPTER 8: COMPLIANCES AND CONTROLS 233
1 Customs maritime cargo reporting and controls 233
2 The duty of disclosure, dangerous goods and port information 245
3 Cargo stowage and loading 252
4 The IMO FAL Convention and the ISPS Code 259
CHAPTER 9: SALVAGE 265
CHAPTER 10: MARINE CARGO SECURITY 277
1 The ISPS Code 279
2 The ENS system 294
3 Multimodalism and shipper awareness 297
4 Examples of cargo security failures 300
Contents vii
CHAPTER 11: ROLES AND RESPONSIBILITIES 312
1 Perspectives from bridge and shore 312
2 The short-sea sector and the ‘marine motorway’ 320
3 Perceived anomalies in marine reporting 323
4 Automatic Identification System (AIS) 330
CHAPTER 12: AWARENESS AND VIGILANCE 336
1 The audit trail 336
2 ISO 28000/ISO 28001 and Six Sigma 340
3 Documentary and procedural requirements 346
CHAPTER 13: SUMMARY AND APPRAISAL 368
1 Factors in the marine cargo management process 369
2 Common errors in cargo management 373
Appendices 377
Glossary 391
Further reading 394
Index 403
ACKNOWLEDGEMENTS
In writing this book, my grateful thanks go to many people who advised,
encouraged and supported me, despite the daunting challenges this project
presented.
To my colleagues Capt. Rodger MacDonald, Bill Oakes and Richard Martin,
of CILT, who have mentored me and who sowed many of the seeds in my
mind, which became the essence of this book.
To Captain Russ Garbutt, who spared some of his valuable time to show me
the workings of the Port of Hull and P&O Ferries.
To Geoff Catterick, of CILT, for imparting much of his own wealth of
knowledge on the freight forwarding sector.
To Informa Group, who have shown keen interest in the project from the
outset.
To Lloyd’s Maritime Academy, who spurred on my interest in the technical
field of maritime operations, and to Lloyd’s MIU, who gave me access to
their AIS website.
To HM Revenue & Customs, who, as HM Customs & Excise, taught me much
of the profession I know today.
To the various port authorities and shipping lines, who have kept me supplied
with much valuable information.
To Mike Toogood, formerly of the MCA, who allowed me access to various
facilities at CNIS Dover to understand much more about the practice of
vessel monitoring and controls.
To my family ancestors, who, being good seafarers, ensured that sea salt and
the love of the sea was already in my blood.
To my wife, who has greatly inspired and supported me throughout this
project, even when I felt short of inspiration.
Specific acknowledgements go to:
• the Port of Liverpool;
• the Port of Tyne;
• Clydeport;
• CMA CGM;
• Warren Pringle at Lloyd’s MIU;
• Ian McConnell at AIS Liverpool; and
• John Ambler.
Acknowledgements ix
And to all those I may have inadvertently missed out or forgotten, a big
thank you to all for contributing to my knowledge and providing me with such
a wealth of information.