NSA 2521 Shipping Management

NSA 2521 Shipping Management

Course code: 
NSA 2521
Department: 
Law and Governance
Credits: 
7.5
Course coordinator: 
Cathrine Bjune
Product category: 
Bachelor
Portfolio: 
BBA - Specialisation in Shipping
Semester: 
2017 Autumn
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

This course offers a thorough introduction to shipping management. The students will learn about different types of ships and trades. The basic practice and economics of international shipping is covered.The course also covers the drivers in the markets for different ships, cargoes, and trades.The focal point is the operation of ships. The course focuses on the deployment of ships and different standard contracts used for such purposes. The practical procedures of ship chartering is covered, including how to make money on the vessel trough operating it in the different markets. How to calculate ships costs, revenues and profits or losses is covered. The students will learn the basics of chartering and different contracts used for ship deployment. The students will learn to find, use and interpret standard charter parties and contracts of affreightment. This incudes bare boat chartering, voyage chartering and time chartering of vessels. Through voyage calculations and practical case work the students will learn to analyze profits and losses when operating the ship in the market. Common concepts such as chartering, demurrage, laycan and options will be discussed. The technical and commercial operation of the ship, including the various functions of the parties involved, is covered. So are the rules applicable to ship management, such as the ISM code and flag state and port state laws. The correlation between world trade and the need for and use of ships will be explained. Basic insurance covers will be discussed.

Learning outcomes - Knowledge

After completing the course students shall have:

  • An understanding of the different shipping markets
  • Knowledge of the different ship types, categories and cargoes.
  • Understand the drivers for demand and supply of ships and cargoes
  • An understanding of world trade and the effect on shipping
  • An understanding of different charter parties and contracts of affreightment
  • Basic chartering and voyage calculations
  • Demurrage and despatch calculation
  • The cost elements of shipping
  • The division of costs and liabilities between charterer and owner
  • Fleet positioning and fleet management
  • Ship routing and use of ports and third party providers
  • Basic marine insurance
Learning outcomes - Skills

After completed course students will be able to:

  • Explain the relationship between demand and supply for shipping services,
  • Discuss basic principles of rate making.
  • Analyze the freight markets and mechanisms of freight setting
  • Being able to interpret and use charter parties
  • Understand and perform voyage calculations and demurrage calculations
  • Reflect on the dynamics of shipping business cycles in an economic perspective.
Learning Outcome - Reflection

During the course students should develop recognition of shipping’s role in society, shipping’s role in the world economy and be able to reflect on shipping’s responsibility to the environment. They will know how to operate a ship in order to calculate profits and losses and the importance for securing safe and environmentally viable shipping services across the world. They will also know the mechanisms behind the operation of a ship, and how to calculate a profit or loss when offering shipping services, as well as how to plan ahead and which contract types to use for the deployment of ships.

Course content
  • Common contracts used for deployment of ships
  • Management of the vessels and fleet
  • Short term and long term contracts commonly used in shipping
  • Chartering of vessels and contracts used
  • The legal aspect of chartering
  • The costs elements in shipping
  • The principal shipping markets, the demand for and supply of shipping services
  • Shipping operations and trading routes
  • Revenues and costs in shipping
  • Understanding the dynamics of shipping business cycles
  • Understand the planning phase of ship management
  • Voyage calculations
  • Case work and summary
Learning process and requirements to students

The course will include a combination of lectures and plenary tutorials where solutions to exercises will be explained.  

There will be mandatory hand-in assignments. The assignments will be in the form of small cases selected from textbooks and trade articles. Please note that whilst attendance is not compulsory, it is the students responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.  

The students will be given a case to be worked on in groups or individually. Case will be presented to lecturer for review.

Students are advised to make use of computer-based tools in the course, for instance spreadsheets. At the examination, however, computer-based tools are not allowed.

Software tools
No specified computer-based tools are required.
Additional information

.

Qualifications

Two years of college education in economics and business administration, marketing or equivalent is required for taking the course. 

Required prerequisite knowledge

None

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
NSA25211
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination every semester
100Yes3 Hour(s)
  • All printed and handwritten support materials
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
  • Monolingual dictionary, English-English
Individual
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • All printed and handwritten support materials
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
  • Monolingual dictionary, English-English
Duration:3 Hour(s)
Comment:
Exam code:NSA25211
Grading scale:ECTS
Resit:Examination every semester
Exam organisation: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Teaching40Hour(s)
Review of assignments in plenary5Hour(s)The students are required to prepare case work for revision in class
Prepare for teaching105Hour(s)Preparation for lectures and plenary tutorials
Group work / Assignments10Hour(s)Preparation for hand-in assignment
Self study100Hour(s)Preparation for the final exam
Expected student effort:
Workload activity:Teaching
Duration:40 Hour(s)
Comment:
Workload activity:Review of assignments in plenary
Duration:5 Hour(s)
Comment:The students are required to prepare case work for revision in class
Workload activity:Prepare for teaching
Duration:105 Hour(s)
Comment:Preparation for lectures and plenary tutorials
Workload activity:Group work / Assignments
Duration:10 Hour(s)
Comment:Preparation for hand-in assignment
Workload activity:Self study
Duration:100 Hour(s)
Comment:Preparation for the final exam
Sum workload: 
260

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.

Talis literature

Obligatorisk/Compulsory

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Falkanger, Thor; Bull, Hans Jacob; Brautaset, Lasse cop. 2011 Scandinavian maritime law: the Norwegian perspective 3rd ed Universitetsforl Chapters 12, 13, 15,16,17, 22.
Stopford, Martin 2009 Maritime economics 3rd ed Routledge 2, 3, 4, 5, 9, 10,11,12, 13, 14
Chapter
Authors/Editors År Tittel Journal Edition Publisher StudentNote
Gorton, Lars 2009 Shipbroking and chartering practice Shipbroking and chartering practice 7th ed Informa Chapters 4, 7. Relevant chapters are provided for the students in a study guide.
Document
Authors/Editors År Tittel Edition Publisher StudentNote
    Selected BIMCO standard documents on chartering     Documents will be made available to the students
Bjune, Cathrine 2016 Study guide in shipping management 1   BI Selected chapters from reading list , articles for supplementary reading, case work and standard documents.

Anbefalt/Recommended

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Grammenos, Costas Th 2010 The Handbook of maritime economics and business 2nd ed Lloyd's List ch. 18.