NSA 2521 Shipping Management
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.
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
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.
During the course students should develop recognition of shippings role in society, shippings role in the world economy and be able to reflect on shippings 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.
- 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
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.
Two years of college education in economics and business administration, marketing or equivalent is required for taking the course.
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination every semester
|Form of assessment:||Written submission|
|Support materials:|| |
|Resit:||Examination every semester|
|Workload activity||Duration||Type of duration||Comment student effort|
|Excursion / Business visits||6||Hour(s)|
|Prepare for teaching||45||Hour(s)||Preparation for lectures and plenary tutorials|
|Group work / Assignments||10||Hour(s)||Preparation for hand-in assignment|
|Self study||100||Hour(s)||Preparation for the final exam|
|Workload activity:||Excursion / Business visits|
|Workload activity:||Prepare for teaching|
|Comment:||Preparation for lectures and plenary tutorials|
|Workload activity:||Group work / Assignments|
|Comment:||Preparation for hand-in assignment|
|Workload activity:||Self study|
|Comment:||Preparation for the final exam|
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.