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The Nautical Institute, 2005. — 495 p.
The book has been prepared to address the subject of commercial management in shipping. This should not, however, be taken to mean that this document deals comprehensively with all of the concerns that will need to be addressed or even, where a particular matter is addressed, that this document sets out the only definitive view for all situations. The opinions expressed are those of the author only and are not necessarily to be taken as the policies or views of any organisation with which he has any connection.
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COMMERCIAL MANAGEMENT IN SHIPPING T R A D E I S C I V I L I S AT I O N By Don L Dykstra BSc MSc MNI COMMERCIAL MANAGEMENT IN SHIPPING The definitive desk handbook Shipping is a highly competitive business. Except for brief periods, margins are usually slim, with relentless pressure to reduce cost. In such an environment the commercial manager has to be well acquainted with the cargo capacity of the ship under various conditions and on what trade routes she will earn optimum freight (back-hauls). Furthermore the commercial manager has to have detailed knowledge about voyage costs, charter parties, the proper wording of bills of lading and the optimum procurement of bunkers. It is also very important to safeguard freight payments and to be well prepared to assist in dispute resolution. The job entails developing and maintaining good contacts with ship brokers and agents, cargo and insurance interests, bunker suppliers, superintendents, bankers, lawyers, government agencies and regulators, surveyors -and above all- the key representative on board: the master. This book is both a handy reference and a guide to bridge the knowledge gap between the ship and office staff and the other way around. It can be used for education, or as a reference source. When confronted with a problem, the extensive index, the instructive chapters and the detailed appendices ensure that most of them will be addressed with a clear explanation. The work starts with a comprehensive review of shipping terms and vessel characteristics, moves on to optimisation of cargo capacity, voyage cost, detailed measurement of liquid cargo with a self correcting ullage sheet and explanation of the wedge formula, dry cargo draft survey plus computerised worksheet, bunker management and financial planning in shipping (buy-lease or charter examples). Shipping is a business and it is essential to quantify all relevant costs, and as such is a necessary component of management. There are also two detailed chapters on charter parties (time and voyage) and a comprehensive chapter on bills of lading, with references to the Hague-Visby rules and how the shipowner can find protection against cargo claims. Agreeing to a contract is one aspect, but getting paid is even more important. There is excellent advice on using letters of credit, which is generally not found in shipping literature. The final chapter illustrates what can happen when a dispute arises. Based on an actual arbitration case, complete with copies of the award(s), the reader is cautioned not to ignore dispute resolution clauses in contracts, as this has a direct bearing on the risk involved. The appendices contain a wealth of information, which include a comprehensive list of abbreviations, charter party terminology, sample freight and demurrage calculations and invoices, guidelines for masters regarding tendering notice of readiness and signing bills of lading, comprehensive (fill-in-the blanks) letter of protest form, bunker contracts, letter of credit transaction documents and other useful material. Throughout the text reference is made to websites, ensuring that further specific information is only a click away. There is an extensive bibliography for further sources of information. This book is truly a ex