Cargo ship charter
The truth is that the vast majority of cargo ships that sail the world's oceans are cargo ships used for international transportation. But the main question here is whether cargo ships are different from each other?
Another question is why is it important for us to know these differences? In response to the first question, we must say; Yes, there are different types of cargo ships in Dubai. A cargo ship or general cargo ship is a type of large ship for cargo. The cargo ship has the least pollution in terms of carbon dioxide between airplanes and trucks. (in 1 kilometer and has a load of 1 ton).
The answer to the second question is that, of course, accurate knowledge of the types of cargo ships is necessary for successful and optimal sea transportation. In the following article, we will introduce the specifications, applications and goods that are possible with cargo ships in Dubai.
Introducing the characteristics and applications of cargo ships
The capacity of this type of cargo ships is significant, but they do not have the space for normal containers that are generally used in cargo transportation. Needless to say, these ships have specially installed cranes for loading and unloading operations in ports. Also, these types of cargo ships have good power to carry dry cargo.
Half of the ocean trade is done with the carrying capacity of these ships. These cargo vessels are suitable for standard transportation as per ISO regulations. Generally, they are automatic ships and they are loaded and unloaded by gantry crane. But bulk carriers are used to carry unpackaged bulk cargo such as grain, coal, ore, steel coils, and cement.
Since the first cargo ship was built, maritime transport has led to the continuous development of these ships, resulting in an increase in size and complexity. Today's cargo ships are specially designed to maximize cargo capacity, safety, efficiency and durability.
What is cargo? Factors affecting freight costs
Have you ever thought about the issue of exporting and importing a product and how it is transferred from one country to another country with a distance of kilometers?
In relation to the above question, if your answer is yes, you are probably familiar with the word cargo, you may even know the meaning of the word cargo; But if this is not the case, don't worry at all because in the following we will try to discuss in detail what cargo means and how it differs from freight. Stay with us.
Meaning of cargo
Cargo actually refers to products or goods that are transported through one of the vehicles such as trucks, vans, airplanes, trains or ships (by air, land and sea) to reach from one point to another. In fact, the meaning of cargo can be considered equivalent to the word bar in Arabic language.
BusinessDictionary.com definition of cargo:
Cargo is all items, goods, materials, and goods that are transported by plane, ship, train, and truck, and for which a bill of lading or bill of lading is issued.
In the definition of cargo, it can be said that cargo not only helps to transport cargo, even sometimes animals can be transported with it from one place to another. For example, imagine that a country intends to export some of its animals such as cows, pigs, chickens, etc. as cargo to another country; Therefore, in this situation, this country can open a special account on animal cargo.
The origin of the word cargo
According to Etymonline.com, this word appeared for the first time in 1650 in the English language with the meaning of "loading cargo in a ship". This word is derived from the Spanish word "cargo" and means "load", which has its roots in Spanish ("cargar" meaning "to load").
The difference between cargo and freight
Although cargo and freight may look similar at first glance and there are common points between them, they have completely different meanings. For people who are new to these two terms, the difference may seem a little vague.
The difference between cargo and freight can be analyzed with two traditional and new perspectives.
The traditional view of the difference between cargo and freight
In the past, the terms freight and cargo were chosen based on the vehicle with which the product or goods were transported. For example, when it came to air transportation, cargo usually replaced freight, and the same was true for shipping by ship.
But on the contrary, trains, trailers and trucks that transported cargo from one point to another by land were generally referred to as freight.
In general, based on the traditional view, the transportation of goods by sea and air was called "freight" and the transportation of goods by land and rail was called "cargo".
A new perspective on the difference between cargo and freight
In the new perspective, unlike traditional perspectives, the cargo refers to the product itself that we want to transfer from one place to another. Now this cargo may be transported by containers, trucks or even ships and planes. Whether we intend to transport a live animal by plane or send other supplies.
But freight focuses more on the issue of transportation of goods, which can include the cost of transportation and transportation, the method of transportation, and sometimes even the product itself; Therefore, we can only use the word "cargo" instead of "freight" in a place where we can talk about both the cargo itself and the way of transportation, costs and other factors involved in it.
As mentioned earlier, cargo and freight have similarities with each other in these two views. Both freight and cargo are used to transport goods and are mostly exclusive to commercial items.
It is interesting to note that the accepted term for postal packages is "cargo", which may include correspondence, letters or shipments. Whether postal packages are transported by ship or plane or by truck or train, they cannot be referred to as freight.
Freight insurance and cargo insurance
One of the things that we should check in response to the cargo's question is freight insurance. According to the law in the jurisdictions, the insurance will include both the carrier or the carrier and the cargo or goods. It is better for the carrier or transport agencies to pay insurance. Especially when the cargo is large or valuable, they should use carrier insurance to protect the goods against various damages, theft or damage during transportation.
For example, if the cargoes are damaged during sea voyages or even the ships face severe storms that cause damage to the cargo, the cargo insurance will pay all or part of the costs based on the clauses of the insurance policy.
Typically, insurance will cover any damage from the time the goods are picked up until they reach their final destination.
Cargo ship charter insurance in Dubai
The insurance policy is actually a type of document that will give you sufficient obligations to ensure the safe arrival of the cargo against unforeseen risks. It should be noted that when insuring your cargo, it is better to find out about the different clauses of the insurance policy because there may be restrictions on your cargo in some insurance policies.
Procedures for chartering a cargo ship in Dubai
• The process of chartering a cargo ship in the UAE includes the following steps:
• Request to send the desired load and cargo to the company providing cargo services and announce the detailed specifications of the goods
• Payment of freight charges after announcement by the company
• Carrying out necessary administrative procedures and receiving invoices
• Providing documents and specifications of the goods and then delivering the goods and goods
• Packaging of goods by cargo service company
• Cargo tracking after the cargo flights arrive at the desired destination
What are the costs of chartering a cargo ship in Dubai?
In response to the question of what is the meaning of the word cargo, we must also mention the costs related to cargo. In fact, freight charges are the fees charged by the carrier or transportation agencies for transporting cargo from one point to another. Whether you choose truck, train, ship, or plane, these costs depend on the size, weight, and mode of shipment.
However, various factors can also affect the freight charges, which will usually be specified in the shipping invoices. In the next part, we will learn more about these factors.
The cost of chartering a cargo ship in the UAE is the cost charged by the shipping person or shipping agencies to transport cargo from one point to another.
Factors affecting the cost and time of cargo charter in UAE
The cargo time, which usually depends on the distance and the means of transportation. Normally, the shorter the route and the faster the vehicle, the shorter the delivery time, but regarding the cost, it should be said that whenever you want to move a cargo, 10 factors can affect the cost of renting a freight forwarder in Dubai.
1. Air freight fee or sea freight fee
Your goods will be transported from one port or airport to another port or airport, which will undoubtedly have additional costs for you compared to ground transportation.
2. Cargo ship rental insurance in Dubai
Cargo rental insurance in Dubai, as we discussed in the previous sections, protects your capital and will ensure that the cargo reaches its destination completely safe.
3. The cost of pickup
To transfer the cargo from the desired place to the main origin (such as ports and airports), a vehicle such as a van is needed, which will not be free of cost. Costs can vary based on fuel costs, cargo weight, or even how short or long the distance is.
4. Busy and expensive seasons
Sometimes, cargoes may be moved in a certain period or season, which is considered to be their peak season; Therefore, shipping companies often offer higher base rates to their customers.
5. Possible risks
For example, imagine that your cargo has to be passed through a route where the risks related to pirates threaten the cargo; Therefore, in this case, you need to pay more.
6. Currency Adjustment Factor (CAF)
Bearers may charge different fees to compensate for exchange losses that typically require converting different currencies into one another.
7. Delivery fee
The cost of delivery is almost the same as the cost of pickup, except that it covers the cost of transporting the goods from the warehouse located at the terminal, airport, port, etc. at the destination to the final delivery point. This cost is also variable based on fuel cost, load weight and distance, just like a pickup truck.
What is the cost of renting a cargo ship in Dubai?
The costs of renting a cargo ship in Dubai include the following:
- Customs duties
Customs duty, also called customs tax, is a fee that varies for different types of goods. When the shipment arrives at the destination, this fee must be paid to the customs. Costs will vary depending on the type of shipment.
- Additional charges for fuel
To support environmental projects, sometimes vehicles have to use higher quality fuels, which will not be without cost! For example, many ships use low-sulfur fuel, which is more expensive than Normal fuel it counts.
Cost of cargo ship facilities and services in UAE
The use of facilities and services will not be free of charge. The more these facilities are, the higher the costs will be. For example, for loading and unloading cargo, workers are needed to perform these operations, which will vary depending on the type of goods and their amount.
What is the allowed product for the cargo?
One of the important points to keep in mind is that it is not possible to carry out cargo shipping for all types of goods. Each country, based on its specific policies, prohibits the entry of certain goods into its country. If the cargo is used for these services, the importer is considered guilty.
Prohibited goods include various items such as weapons, war tools, etc. There may also be cases where the entry of goods is temporarily prohibited at some point in time. The entry of some goods also requires a permit, such as pharmaceutical and health goods. Of course, it is the responsibility of the importer to obtain import permits for these types of items.
Undoubtedly, every country cannot have everything together and reach a degree of self-sufficiency that produces all the products it needs; Therefore, the category of transportation, relocation, export and import of products and cargoes and the whole issue of the cargo is one of the issues that is of great importance.
In order to be able to do your work in this field, you just need to contact one of the companies that provide such services and leave zero to one hundred cargo transfer operations in their hands. Like the Dubai Marine website, which is active in the field of renting different types of ships, such as renting cargo ships in Dubai, and you can easily search and buy the services and products you want by visiting this website.
Basic steps for cargo ship charter
First, the Sub charterer or the second charterer, who charters the cargo ship from the Head charterer or the main charterer, must provide the following information, which includes:
1. Load type
2. Tariff code
3. Type of packaging:
• Jumbo bag (for packing goods with a powder nature such as chemicals and raw materials)
• A roll or cylinder of a product that is used for packaging paper and metals.
• Barrel or Barrel
• Bundle (for rebar packaging)
7. POL/Port of Loading
8. POD/Port of Discharge
9. Tonnage that can be loaded daily at the port of origin Loading Rate per day
10. Daily unloading tonnage at the destination port / Discharge Rate per day
11. Draft or depth of the loading dock at the origin (which is very important) Berth Draft
12. Draft or depth and berth number for unloading at the port of destination Berth Draft
13. Lay can / the time period announced by the sub charterer / the second lessee of the ship to load its cargo in the port.
14. Recommended shipping rate /Target Rate
Then the head charterer provides this information to the owners of the ship. After checking the initial rate, they will announce that if this rate is approved by the sub charterer, then the FNote or Fixture Note will be provided by the ship owner, which contains basic information such as the first time the ship is ready for loading/the ship's flag. /How to pay the rent or charter fee and other conditions for renting the ship in exchange for the subject matter are discussed in it. After this stage, a contract is concluded between the Head charterer and the Sub charterer, this contract follows FNote/ the contract signed between the Head charterer and He is the owner of the ship. In FNote, the amount of fine for each day of delay or so-called demurrage after the end of lay can and the limits of the responsibility of the charterer of the cargo ship and bank information for making the transaction for the payment of the rental fee is specified, and also if the ship arrives at the port earlier than the scheduled time. If the destination is unloaded, the amount of the discharge fee for return will be specified to the charterer for each day or even hour.
Voyage charter and also time charter of cargo ship for carrying dry bulk cargo, industrial bulk and food bulk and such cargoes can be referred to as iron tools, cement and clinker, wheat and corn and agricultural products. did
Ship charter for carrying bulky and heavy industrial cargo with general cargo ships
What is mentioned below is brief about the types of cargo ship rental contracts offered by this company.
The cargo ship charter contract in Dubai is concluded between the ship owner and the ship charterer, and the ship charterer can be the owner of the goods or his representative, and the common types of ship charter contracts are as follows:
Cargo ship travel rental or Voyage Charter
In this type of contract, a certain commodity is transported by a ship on a designated route and between agreed ports, and an amount is received as a fare. The fare amount is calculated based on the weight of the cargo and sometimes based on its volume if the product is bulky. If the ship owner does not know the exact amount of cargo to be carried, the parties may agree on a lump sum as freight. In addition, depending on the agreement, all the capacities of the ship or only a part of it may be provided to the lessor of the ship. If the amount of cargo is more than the capacity of the ship, the contract can be concluded for the carriage of consecutive cargoes under the title of Contract of Affreightment.
There are two types of rental in the travel rental contract:
1. Renting a ship for a trip
2. Renting a ship for consecutive trips
In cases where the cargo is equal to or less than the carrying capacity of the ship, it can be transported in one trip. If the cargo exceeds the carrying capacity of the ship for one turn, the rental contract is set for consecutive trips. This type of travel rental contract is valid between two dates that are determined, i.e. the start date of the first trip and the end date of the last trip.
Time charter or time charter
This type of ship charter contract can be concluded for a certain period of time and for several trips to carry several cargoes between specific ports, which is called a time charter contract, and during the contract period, the ship is at the disposal of the lessee. This period can continue for several months or even years and can be extended if the parties agree. In the time charter, all the capacities of the ship are provided to the lessee so that during the period of the ship's lease, it can carry cargo from any port to another port. Or only travel between two or more specific ports.
Among the most important provisions of cargo ship charter contracts or FIXTURE NOTE, the following can be mentioned:
1. The name of the ship
2. Its specifications, capacity and facilities
3. Specifications and amount of cargo
4. Ports or places of loading and unloading
5. Freight rates
6. How to pay the fare and when and where it is paid
7. The date of the ship's arrival at the port of loading
8. Duration and permitted speed of unloading and loading
9. Amount of ship delay damage
In short and internationally, this type of contract is called FIXTURE NOTE.