The MV Lotus Dawn Shipping Company - Voyage Planning - Case Study Example

Title: (SHIP OPERATION MANAGEMENT) VOYAGE PLANNING 2 Dated: September 6, 2010 Table of contents Serial Number Contents Page number 1 Abstract 2 2 a )Determine the maximum quantity (weight and volume) of the chosen cargo that the ship……. 3 3 b) Identify the hazards associated with the loading, unloading and carriage of the chosen cargo……… 6 4 (c) With reference to the chosen cargo, briefly describe the claims for cargo damage/loss/shortfall….. 8 5 Conclusion 10 6 References 10 Abstract: Voyage planning is one of the most important aspect for the cargo handling in the shipping industry for its sustainability ,viability and propagation in the business environment. The MV Lotus Dawn Shipping Company has adopted Montreal to Singapore route through Suez Canal for the transportation of coal as an option Coal as cargo needs specific requirements for its loading, transportation, unloading and unloading operations .The administration of the Shipping Company has selected Montreal to Singapore through Suez Canal Route as the route is profitable and viable as on competitive basis. The cargo handling in the shape of coal has given an opportunity to the administration to take necessary changes in the configuration of the ship in economical mechanism. These operations have diversified the business plans of the company as a green company and the same will help in the operational viability of the company within the shipping sector at the global level. The financial results of the organization have been achieved through the adoption of a systematic, coordinated and balanced approach through the active participation of all the major stakeholders including the primary stakeholders. The company has applied a review process for the evaluation of the economic performance of the company as on regular intervals for taking strategic decision as in favor of the shipping corporation. The strategy as adopted by the company is in a position that to be selected by other organizations especially in the shipping industry for cargo handling as to improve in the financial strength of the implementing organization. (a) Determine the maximum quantity (weight and volume) of the chosen cargo that the ship can carry on the selected route. State the conditions/assumptions (if any) under which the vessel is able to carry this cargo. Answer: Voyage planning for cargo handling is one of the significant aspect in the shipping industry and the managements pay due attention to issue as in accordance with the nature and kind of the cargo from one port ( the port of origin ) to another port( port of destination). Each type of cargo needs specific requirements for it loading, transportation, unloading and post –unloading operations and successful handling of all these steps ensure sustainability and profitability of the shipping company as well as of the client as on win-win basis. The administration of MV Lotus Dawn Shipping Company has selected Montreal to Singapore through Suez Canal Route for the transportation of coal as an option from the available options that is from coal, iron ore and Mineral Concentrate. The cargo handling in the shape of coal has necessitated to the administration and captain of the ship to make necessary modifications in the structure and configuration of the ship as to execute the business task in economical and environment friendly mechanism. These adjustments have diversified the business plans of the shipping company and the image of the organization as a green company will help in the sustainability of the organization within the shipping sector at the global level. The shipping company has decided to operate handysize, handymax and panamax ships for the transportation of coal from Montreal to Singapore through the Suez Canal route. The maximum quantity of the chosen cargo item that is coal is determined by the types of the ships as are selected for the cargo shifting like coal and the mode of loading at the port inside the ship for its further shifting as in a safe and economical manner. The capacity of Panamax-vessels varies between 60,000 metric tons of deadweight( dwt ) to 80,000 metric tons of dwt. Panamax vessels are the vessels which are having a maximum beam (width) 32.2 meters by the concerned authorities of major canals like the Panama Canal and are specialized for carrying coal in bulks from the port of Montreal to Singapore. The transportation of coal is handled by the administration in the bulk form in the bulk carrier. These bulk carriers are the ships specially designed to transport coal in unpacked form as bulk cargo. These bulk carriers are designed in such a mechanism to facilitate the transportation of coal with maximum capacity through efficient and in safe manner and to withstand the rigors of the associated work. The capacity of Handsize varies from 10000 to 35000 metric tons of dwt for the transport of coal as cargo item by the shipping corporation. These limits are determined by the regulations coming into effect by the concerned authorities which put together as a constrained in calculating the final weight of the cargo. These ships are typically one hundred fifty to two hundred in length and in case of handmax the upper limit of the loaded coal is 35000 metric tons to 59000 metric tons of dwt along with five cargo holds four cranes in the ship. The load as absorbed by the ships are calculated while considering a number of significant characters like size of the ship ,facilities for loading and unloading of the cargo at the port of origin and the port as the final destiny and the sea route for the execution of the business plan. The shipping corporation selects Handymax sector. The sector operates at the Montreal and Singapore sea route through Suez Canal and the ships with less than 60 ,000 dwt are constructed with the help of on-board cranes that enables them to execute its operations like loading and discharging cargo by the MV Lotus Dawn at the ports like Singapore and Montreal. The selection of Handysize, Handymax and Panamax type of vessels are finally decided by the top management of the shipping corporation while considering the volume of coal for its transportation at the selected route that is from Montreal to Singapore via Suez Canal. The duration of the business plan is influenced by the weather conditions and wind direction during the operational phase of the business plan. The decision making process and its execution move in close association with each other as both of these supplement the impact of all the business tools in synergetic pattern. Coal as a cargo item is loaded and unloaded as in accordance with the structural modifications of the vessels. In addition to, the said vessels, MV Lotus Dawn Corporation also use combined carriers for the purpose as these carriers have been specially designed for the transportation of both liquid and coal in dry bulk shape. Both of these are carried in the ship simultaneously and are segregated in the separate holds and the tanks. However, it is worth mentioning that the combined carriers require special design and are expensive as compared to that of monotype of the vehicles and their number is gradually decreasing. The strategy as selected by the shipping corporation has resulted a successful business model and has the capacity to be adopted by other business corporations in the shipping industry for the achievement of similar results in the field. (b) Identify the hazards associated with the loading, unloading and carriage of the chosen cargo and outline the mechanisms and operational practices designed to reduce the risk of accidents. Answer: A set of hazards are linked with the loading, unloading and carriage of coal as cargo item from the selected ports that is from Montreal to Singapore through Suez Canal by MV Lotus Dawn through their shipping operations. These sets of hazards are managerial and physical in nature and their effective handling helps the shipping corporation to pursue their business agenda as per the designed strategy. These risks are involved during the shipping operations and the cargo being moved during the operations are effected as these risks are the potential threats to the smooth execution of the business plan. The bulk containers due to their designs are the initial risk and hazards and their respective modifications as to carry coal as cargo element item necessitate the shipping crew and all other officials to deliver their respective assignments as per their job description. Loading and unloading of the selected item that it coal are time-consuming process and are dangerous in nature. The Captain of the ship plans these activities often with the assistance of chief mate of the crewmembers. Business strategy for loading the item is an essential component of the overall business process. The loading process is divided into a number of sub-components and the respective wings of the executing team execute all these sub-components as in accordance with the international regulations. These regulations are understood by the captain and terminal master with all the necessary details prior to start of the operations. Other crew members like Deck Officers and stevedores oversee the loading operations. The loading operations are executed as in accordance with the specific methods, which further depend on the nature of coal and the equipment as are available on the ship as well as on the dock. Coal as cargo item can be loaded with shovels is in the shape of bags. However, the shipping corporation is shifting its operations as on the patterns involving methods with less labor like double articulation cranes, which has the capacity to load equivalent to 1000 tons per hour as a widely used method. The loading aspect of coal can also be handled with the efficient loading mechanisms like conveyor belts. These conveyor belts are having their attached start-up and shut down procedures which are complicated in nature and time consuming to carry out. The shipping corporation uses self-discharging ships along with the conveyor belts, which processes sufficient rate like 1000 metric tons per hour. The cleaning of holds prior to the start of loading is another problem and the same is handled with effective cleaning strategy. The maintenance of stability during the loading process is another important issue. The corporation has adopted a comprehensive strategy to keep the cargo level as in a balanced pattern when the hold is filled, machines such as bulldozers excavators are often used to keep the cargo in a stable position. Leveling is essential when the hold is only partially filled since the cargo like coal has the capacity to shift. Extra precautionary measures are taken by the shipping corporations like the addition of longitudinal divisions and securing woods at the top of the cargo. The hazard is handled with the adoption of technique like tomming which involves digging of holes below the hatch cover and are filled with the materials like weights and bagged cargoes. The unloading and carriage components are executed with the assistance of necessary business tools and equipment. The hazards associated with the loading and unloading of coal like combustion at the ships are tackled by the company through the observance of safety procedures as have been designed by the International Maritime Organization. The shipping corporation manages the hazards linked with the carriage of coal like explosion due to spontaneous combustion or methane gas build up through the observance of safety measures like reduction in the oxidizing agents during the cargo operations for the delivery of coal. (c) With reference to the chosen cargo, briefly describe the claims for cargo damage/loss/shortfall that could possibly be made against the ship, and suggest strategies/practices to reduce the likelihood of such claims. Answer: The cargo operations for handling bulk items like coal are executed through the operations like loading of the item, unloading and carriage from the port of origin that is Montreal port to the port Singapore as the port of destiny. Coal is coated with a release agent in the peripheral zone of Singapore port adjacent the interior wall surface of the container as in accordance with the disclosed method. These claims could be made against the ship as in accordance with the quantity and quality of the damages for their financial recoveries/compensation. These claims are submitted for the achievement of the following objectives as in favor of all the primary stakeholders of the shipping industry including the shipping company and the owner of the cargo as to be transported as on win-win basis. 1. The claims as in the shape of financial compensation provide an opportunity to the shipping corporation to improve their efficiency for handling cargo items with extra care and as per international standards. The financial transactions are completed in such a mechanism that the financial influences to the corporation serve as feedback and performance boosting step. The final outputs appear in the shape that the cargo loading and unloading time is thereby decreased. 2. The claims instrument serves as a penalty to the Shipping Corporation and compensation against the incurred losses to owner of the cargo item. The shipping corporation struggles for the improvement of the standards of the offered services and therefore better output as the result. Varieties of chemical and physical methods are applied by the shipping corporation to deliver the product in perfect shape within the shortest possible delivery time at the destiny of the item. The methods applied are in favor of all the stakeholders like the shipping corporation develops an effective strategy ,the owners of the item get safe and secure cargo shifting within the given time and the shipping industry gets a business strategy as in accordance with the International Maritime regulations. 3. The claim system helps in decreasing the wear and tear on the chutes, containers and conveyors as are applied during the loading, unloading and carriage of the cargo item like coal in the instant case. The system provides a check and balance mechanism for the shipping company to improve its standards of the services through efficient utilization of resources. These resources serve as an input for the shipping company for the delivery of quality services within the given journey time for the delivery of the product. 4. The damages and subsequently the claims increases the speed and reliability of the bulk cargo as in the form of coal for its unloading at the destination in a coordinated and well focused mechanism and therefore the bale capacity of the ship is maintained at the level of 88,600 m3 and the grain capacity as 89,300 m3. 5. The system provides a chance to the shipping corporation to make structural changes in the ships with specific holes for the delivery of coal in secure and safe manner in the shape of bulk cargos in the given space of the ship, thus increases the carrying capacity of the cargo ships. The process helps the ships to maintain Winter Loadline as 13.80 74,650 and similarly the Summer Load line at the level of 14.10 76,900 TPC that is equivalent to 72 Tones. Conclusion: The shipping corporation formulates a business strategy to handle the cargo in an effective and in safe manner within the specified time. The shipping company applies precautionary measures like those that the interior surfaces of the container are coated for safe delivery of the item. These precautionary steps are implemented either prior to the loading of coal or during the loading process. However, problems caused by bulk coal cargos that has the capacity to stick to the walls and bottoms of the containers are tackled with the operational strategies by the shipping corporation. The business strategy provides a flexible business model to the shipping corporation for selection of the pattern for cargo handling of coal at the Montreal Port as well as at the Singapore Port. The business strategy is formulated to generate maximum revenue as in favor of the corporation and the successful execution of the business plan strengthen the sustainability and profitability of the organization in the competitive business environment. References: 1. Frankel, Ernst G. (1985). Bulk Shipping and Terminal Logistics. 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