Course syllabus
Course-PM
MMA128 Marine transport systems lp1 HT20 (7.5 hp)
The course is offered by the Department of Mechanics and Maritime Sciences
Contact details
|
Examiner(s): |
Martin Larsson, martin.larsson@chalmers.se , mob 070-913 6188 |
|
Course responsible: |
Christopher Thomassen, chrithom@chalmers.se , mob; 070-334 8581 |
|
Other staff: |
Fill in the name, e-mail addresses and phone numbers of other staff involved in the course. |
Course purpose
The aim is to give the student basic knowledge of the shipping industry with technical and economic aspects. This aim includes the understanding of the influence of an international market on the development of new transport solutions involving ships and ships equipment.
Schedule
Course literature
Stopford, Martin, Maritime Economics, 3rd Edition
Branch, Alan E. and Robarts, Michael, Branch´s Elements of shipping, 9th ed (2014)
Both available free online via Chalmers Library.
Course design
The course has two elements, both must be passed for final grade on the course to be reported.
Part A (element 0117), written and oral assignments 2,0 credits, UG grading (fail/pass)
Part B (element 0217), written exam 5,5 credits, TH grading (3/4/5)
The final grade is based on grade on written exam.
Exam dates 27 Oct 2020, 05 Jan 2021 , Aug 2021
Most exams at Chalmers follow a structure of 3 exams per year.
First exam is the ordinary exam, in study week 8. Then two resit exams. The first resit is approx. in study week six (6) in the following study period, the second resit is in the two (2) weeks before the academic year starts (August).
You are allowed to retake exams and you can never be downgraded.
Please note! Always consult the Student portal for exam dates and sign up. All students must sign up for the exam to be allowed access. Reason being administrative preparations.
Sign up normally closes 2 weeks before exam date.
Learning objectives and syllabus
Course learning objectives are general and can not always be learned in one single lecture. Each lecture has lecture learning objectives that aim to partly or in full fulfill one or more course learning objectives.
1. Explain commercial shipping in its context.
2. Identify and describe different stakeholders in commercial shipping.
3. Identify and explain commercial/technical features of ships.
4. Explain the costs and duties associated with chartering forms.
5. Explain competition in shipping.
6. Explain how price and value of ships fluctuate with freight markets.
7. Calculate time charter equivalent for comparing voyage options.
8. Explain the regulating system of shipping.
9. Thoroughly explain the four shipping markets
10. Thoroughly explain market fluctuations using the supply and demand model.
11. Describe shipping finance and price fluctuations.
12. Apply the "commercial perspective" (learning objectives 1-11) in the design of new ships or equipment.
Link to the syllabus on Studieportalen.
Content
- Ship types and their operative features, from a commercial perspective.
- Chartering forms
- Cargo intake calculations
- Voyage result calculations
- Speed and consumption calculations
- Restrictions in ports and canals influence on ship design and trade.
- Shipping history and different nation’s success (rise and fall) in shipbuilding.
- Supply and demand model applied on shipping and the J-shape of supply.
- The freight rate mechanism
- Market cycles and the four shipping markets
- Regulations in shipping
Course structure and organisation
7,5 credits mean a work load of 200 hours for an average student.
Below you find the course layout, the order of lectures may be altered.
Times and rooms can be found in TimeEdit (Chalmers online scheduling tool). ‘
Please refer to assignment guide for details on the written assignment and seminar (mandatory)
Lecture #1 Welcome and introduction
Introduction to the course, why shipping is important and course layout. Project work, examination, Canvas etc.
Objective: Students acquainted with course layout, literature, assignments, course webpage etc.
Study advice: Upload a photo in Canvas. Stopford, M. (2009) ch 1.1, abbreviations and 50 essential Shipping Terms.
Lecture #2 Shipping history and legacy
A brief look back over 5 000 years of shipping history. Technology drives change, but some legacy remains. What is still more or less like the old days?
Objective: Part of course objective 1, 3 & 5.
• Describe the legacy that remains in today's modern shipping (technical & commercial terms)
• Explain development in shipping related to industrial revolutions (the four innovations, automatization, digitalisation)
Study advice: Stopford, M. (2009) chapter 1.
Complimentary reading: Branch, A & Robarts, M (2014) chapter 1.
Lecture #3 Maritime Stakeholders
All stakeholders have a common goal, safe, reliable and efficient sea transport. However in achieving that, stakeholders in relation to each other sometimes have opposite interests.
Objective: Part of course objective 1 & 2.
• Identify & describe different stakeholders (internal & external)
• Explain derived demand for shipping,
• Explain product differentiation in shipping
• Describe (identify) cargo by its type
Study advice: Stopford, M. (2009) chapter 2.
Lecture #4&5 Ship types, commercial and operational perspective
To better understand the competition in shipping, one must understand how different ships compete for same cargo.
Objective: Part of course objective 3
• Identify/categorise (distinguish) bulk cargo, general cargo, specialized cargo
• Identify/categorise bulk ships, general cargo ships and specialized ships
• Identify important features ship – cargo – cargo handling gear
• Explain economies of scale in shipping
Study advice: Stopford, M. (2009) chapters 11-13 + pages 223-224
Lecture #6 The Panama canal and the Suez canal
Worlds two most important canals, both important for trade and ship design.
Objective: Part of course objective 1, 3, 5
• Briefly explain Panama Canal and Suez Canal
o Importance to trade
o Restrictions and possible development
o History
Study advice: Stopford, M. (2009) pp364-365 + Canvas material
Lecture #7a+7c Chartering forms
Chartering a ship offers three main alternatives, bareboat charter, time charter and voyage charter. It is essential to understand similarities and differences.
Objective: Course objective 4
• Explain the costs and duties associated with chartering forms: B/B, T/C, V/C
• Explain TCT, COA
Study advice: The Baltic Code pp9-16, 18-20 (available in Canvas) + Stopford, M. (2009) Chapter 5.3, 6.2-6.3
Lecture #7b Library Session
At Chalmers we regard academic honesty and integrity essential. This means that we give credit to others work by referencing it well. The library session is an introduction to the search process, how to evaluate material using the CRAAPP-technique and a workshop on searching and referencing.
Objective:
• Use available resources to search for suitable sources
• Evaluate material according to CRAAPP
• Reference according to APA
Referencing will be examined in the written assignment. Instructions for the assignment is found on Canvas.
Lecture #8 Speed and Consumption
Bunker consumption is related to speed. Slowing down will reduce bunker consumption and consequently bunker cost, but ships are not allowed to slow down unless it is so stated in the charterparty. In order to calculate Time Charter Equivalent, among other things, bunker cost and voyage time must be calculated.
Objective: Part of course objective 4, 7
• Calculate estimate and actual cost of bunkers using FIFO-method
• Calculate eco-speed
Study advice: Extract from Dykstra, L, Commercial management in shipping (Canvas)
Lecture #9 Cargo intake calculations
Physical and operational restrictions may restrict the ship’s cargo intake below its maximum capacity. In order to calculate Time Charter Equivalent, among other things, cargo intake must be calculated
Objective: Part of course objective 7
• Calculate cargo intake, including port/canal restrictions including density, loadline restrictions and bunker consumption.
Study advice: Canvas material
Lecture #10 Voyage result calculations
Voyage result can be calculated both on voyage charters and time charter trips (time charter with duration of a single trip, i.e. voyage), it is needed for comparing voyage options.
Objective: Course objective 7
• Calculation of voyage result and time charter equivalent for comparing voyages. Estimates and updated results.
Study advice: -
Lecture #11 Shipping market cycles
Market cycles are not unique to shipping, understanding drivers increases the ability to understand market behaviour.
Objective: Part of course objective 1, 6
• Explain shipping cycles characteristics, development and stages
• Explain the relation of market cycles to the supply/demand model
Study advice: Stopford, M. (2009) Chapter 3, study material provided in ping-pong (Shipping market review + Surfing the cycles)
Lecture #12 The four shipping markets
Most ships will pass through all four shipping markets during their lifetime.
Objective: Objective 9
• Thoroughly explain the four shipping markets and how they interrelate.
Study advice: Stopford, M. (2009) Chapter 5, excluding 5.4
Lecture #13 Basic economic concepts 3 x 45 min
Demand for shipping is derived from international trade. Basic economic models can show how people are better off if trade is allowed.
Objective: Part of course objectives 6, 10
• Explain the basic concepts of economics (utility, the economic problem, factors of production, production possibilities frontier)
• Explain the supply and demand model, equilibrium price/quantity, shortage, surplus
Study advice: Stopford, M. (2009) Chapter 10.3-10.4, Chapter 4
Lecture #14 Supply and demand model, price mechanism for freights
After learning the basics of a supply and demand model on a commodity, we apply the model on shipping and use it to explain shifts in freight rates.
Objective: Part of course objectives 6, 10
• Explain the supply and demand model applied on shipping
Study advice: Stopford, M. (2009) Chapter 4
Lecture #15 Rules and regulations in shipping
Ships are subject to regulations in several layers, compliance is enforced in several layers too. An overview of the regulation system without looking at any particular convention in detail
Objective: Course objectives 8
• Explain International Maritime Organisation (organisation, election, producing conventions/treaties) Flag state ratification of conventions, national maritime authorities, Port State Control and Classification Societies.
Study advice: Stopford, M. (2009) Chapter 16
Lecture #16 Shipyard development
How major centre of shipbuilding has shifted and reasons for it.
Objective: Objective 1,
• Briefly identify history of shipbuilding development (rise and fall of nations shipbuilding dominance)
Study advice: Canvas material
Lecture #17 Intro to Liner Shipping Game
In groups students will learn how to plan and stow the ship which are two of the functions of the liner shipping company. This will enable more rounds to be played when we do the Liner Shipping Game.
Lecture #4b Liner Shipping Game (simulation)
A serious gaming session where you will be facing the challenges of a liner shipping company using lego ships and lego containers. Fun, interactive and thoughtful.
Objective: Part of course objective 1, 2
Study advice: Stopford, M. (2009) pp562-563
Customer innovation
Objective: Objective 13,14
• Describe shipping finance and price fluctuations.
• Apply the commercial perspective (learning objectives 1-11) in design of new ships or equipment.
How does a rule come into force?
Objective: Course objective 8
• Explain International Maritime Organisation (organization, election, producing conventions), flag state ratification of conventions, national maritime authorities.
Study advice: Stopford, M. (2009) chapter 16
Ships finance
Objective: Objective 11
• Describe different types of ship finance
• Describe difference in book-keeping value and 2nd hand market value
Study advice: Own notes from guest lecture, Chapter 6.4, 7.1-7.2, 7.5
Examination form
The course has two elements,
- Written and oral assignment, 2,0 credits, fail/pass, hand in deadline 15 Oct 23:59
- Written exam, 5,5 credits, fail/3/4/5
Date and time for exam: 27 Oct, 2020
The written exam is digital, conducted in Inspera or Canvas depending on Covid-19 situation
Please visit the information page to learn how to take the digital exam, well in advance.
Grading scheme 50%/75%/90%
Aids permitted: Chalmers approved calculator, word-to-word dictionary