Shipping freight rates is not static. They vary according to the demand for shipping space and whether the ships are fast or slow; liners or tramp steamers. Generally it can be said that it is cheaper to send goods by tramp steamers than by liners because tramp steamers are not scheduled to make regular passages between ports as liners are, nor do they ply particular routes to an approximate time schedule. Tramp steamers voyage anywhere to obtain cargo, and may cover the world before returning to their home ports. It is generally agreed that current average 6% of the value of the cargo , but this figure can be misleading in so far as for the particular cargoes it varies from little as half percent or one quarter percent to as much as 50% . Rates for long distances may be as low as 1/6d per ton mile. The prime object of a ship owner is to make a profit on every voyage unless a ship is running in ballast , that is practically empty. The freight rates must therefore be so fixed as to secure this end. A ship’s space is limited and so it is that a ton as known in the shipping world may not be familiar avoirdupois weight of 2,240 lb but a stated number of cubic feet , usually up to 40 . The normal ton is the charging basis, if the goods are heavy in proportion to their bulk; the cubic space basis is used if the goods are bulky but comparatively light in the weight. Freight may also be calculated as a percentage of the value of the cargo. Besides the question of space occupied, mileage is taken into considerations. Ship owners reserve the right in most cases to adopt any of these bases. In actual fact, however rates to the continent of Europe are almost invariably on an avoirdupois basis. Most shipping companies belong to a circle of ring which is called shipping conference. This circle publishes rates for many routes and these are referred to as conference rates. There different conference dealing with sailings to different parts of the world, for instance Brazil, south America, there is no reason why one shipping company should not belong to more than one conference and many in fact always do.
Duodecimals-There very many methods of finding the cubic capacity, but shipping clerks and those who calculate cubic capacity as a matter of daily routine, do not use fractions or decimals but the system of duodecimals.
PRIMAGE-
Primage or Hat money was originally
paid to the master of the ship for care in loading or unloading cargo. It is
now paid to the owners of the vessel. In practice the calculation of shipping
rate is usually done today with the aid of a ready reckoned. Primate used to be
payable on all cargoes on all routes. Where exporters entered
into an agreement with a
shipping company or a ring
to forward goods only
by their ships an amount equal to the primate paid in any
one period was refunded to the exporters at the end of the period .The rebate was very welcomed
but against icy had to be set the fact
that lower rates might have been
obtained from shipping lines
outside the circle. This system is
still in operation in most Mediterranean ports
but for other destinations
it has largely been replaced by either. (a) Two completely different rates
for contract and non –contract shippers. The latter being those who do not
agree to the ship all their cargoes by vessel s belonging to the circle that is
conference circle. (b) An immediate
rebate on the tariff rate
for contract shippers and a deferred rebate for non-contract shippers
who do in fact confine
themselves to conference lines
for prescribed period.
CONTROL OF SHIPPING-
The law relating to merchant shipping is contained
in the merchant shipping acts of 1894 and 1906, various acts and the board of trade
regulations as to shipping made in pursuance of those acts. All ships, except Coastwise craft not exceeding 15 tons burden must be registered at some port in
the British Dominions. A ship must first
be surveyed by a duly appointed
surveyor in accordance with
the requirements of the board
of trade and after survey and the completion of all other formalities,
the registrar of the port issues a
certificate of registration. No person,
not a British ship may change its name without a written consent of the board
of trade. Every ship must carry and must
show to all persons authorized
to inspect ships , certain papers
for example certificates of
registration, the agreement between
Master and crew as to the terms of
employment of the latter, the bill of
health , the charter parties and bill of lading, particulars of cargo
and the official log. The board of trade
regulations for securing the safety
of ships and passengers are very
stringent and cover such matters
as the number of passengers
to be carried , the provisions of
lifeboats and life saving apparatus
and the loading of ships. In
1873, through the exertions of Samuel Plimsoll, M. P member of parliament , an act was passed requiring
every British ship to indicate by means
of a line through a circular disc
, painted in white on the outside of the vessel, the
maximum depth to which it can be legally loaded
in salt water in winter , in summer
and for North Atlantic winter
voyages . This line is properly known as the Plimsoll mark. The loading
of ships is now regulated by international agreement.
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