• Journal of Navigation and Port Research
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• v.44 no.2
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• pp.128-135
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• 2020

Long-term shipping contracts represent the cooperative and coexisting relationships between the shipping and steel industries. Yet, differences between the contract forms for iron ore and steel products have emerged. Specifically, the large proportion of consecutive voyage charters (CVC) is being applied in the iron ore trade, whereas the contract of affreightment (COA) is proportionally higher for shipping steel products. The literature review and in-depth interviews in this study identified through the research model, the characteristics of the shipping and market structure in both markets have significantly contributed to the preference of different long-term contracts. It has been determined that the mutual oligopoly market structure and the characteristics of shipping such as, the small number of suitable vessels in the market, the single fixed load/discharge ports, the long-distance voyages, and the potential risks for fatal accidents because of cargo liquefaction, for the iron ore trade, provide higher contribution to the preference of CVC contracts. In contrast, the consignor oligopoly market structure and the shipping characteristics, such as the greater number of suitable vessels available in the market, the variation in ports, the cargo quantity per shipment, the various load/discharge ports, and the need for experienced carriers for steel product loading in the steel product trade has shown higher preference on the COA contracts as the consignors with superiority over the shipowners, resulting in favorable contract types and conditions for the consignors.

• Journal of the Korean Institute of Navigation
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• v.7 no.2
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• pp.65-113
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• 1983

A lot of studies of ship's economy are on the traditional fields such asreducing propulsion resistance, raising cargo handling rates and lessening building consts, but there are few researches on the merchant ship's economy concerning their deadweights and speeds according to shipping companies managerial cercumstances. Contrary to the contemporary trend that "the bigger, the better, if the cargo handling rate could increased sufficiently to hold down port time to that rate of smmaler vessels", this paper demonstrates the existence of certain limits in ship's size and speed according to the coditions of the freight rates, voyage distances, cargo handing rates, prices of fuel oil, interst rates etc. Fom the curves of criteria contour for various ship's deadweights and speeds which are depicted from the gird search method, one can get the costs and the yearly profit rates under the conditiions of large volume with long term contracts for the transportation of bulk cargoes. In estimating ship's transportation economy, the auther takes the position that the profit rate method is properer than the cost method, and introduces the calculation table of the voyage profit rate index. The use of the criteria contours will be of help to ship owners in determining the size and speed of the ship which will be built or purchased and serve in a certain trade route.