Reliant Logistics Institute


What is meant by shipping operations?


Shipping trade is a important a part of the world freight installation. The trade accounts for transporting ninetieth of the planet trade. It’s the foremost reasonable and economical mode of transporting merchandise, given the big volume of products these vessels will carry for long distances at a fraction of a price of alternative modes of transport like rail, roads, air etc. Shipping caters to international trade supply-chain, enabling transport of raw materials in bulk, import/export of food merchandise, finished/semi finished merchandise etc. The world shipping trade has faced sturdy headwinds due to the retardation in world economy post 2008 crisis. The shipping crisis peaked in 2015 & 2016 due to excess capability ordered throughout sturdy market conditions. As a result, the trade has witnessed massive scale consolidation globally. Shipping operations are generally divided into 2 classes – sea shipping that caters to transportation merchandise between regions and continents. This requires massive vessels moving immense volume of products across continents. The sole competitive mode of transport is airways that isn’t price economical. Short-sea shipping that caters to transportation of products at intervals the region. This principally entails moving merchandise at intervals to selected region or short routes at intervals . There aren’t any direct competitors of deep ocean shipping however short-sea shipping competes with alternative modes of transport like rail and road. With road network in Republic of India rising at a fast pace, the short-sea shipping chance would still grow at a slower pace. Coastal shipping just in case of Republic of India would be associate degree example of short-sea shipping.

Vessels are classified by cargo-type and size:

Bulk carriers: the majority carriers transport massive parcels of raw materials, general shipment and ponderous semi manufactured merchandise. Bulk vessels handle few transactions, usually finishing concerning 6-7 voyages with one shipment every year. Their average revenue depends on a dozen of negotiations per ship every year. The service levels are typically low for these styles of ships and therefore have very little overheads. Coal, iron-ore, cement etc. are few industries that use the services of bulk shipping management course in kerala.

Tankers: Tankers are vessels accustomed transport or store liquids or gases in bulk. Major tank ships embody crude tankers, product tankers (clean oil, LPG, LNG, chemicals, hydrogen, oil, wine) etc. These vessels need the shipment to be pumped up into and out of the vessels which needs dedicated facility which incorporates onshore storage at ports. Tanker comes in different sizes.

instrumentality shipping: instrumentality shipping- because the name suggests, uses containers of assorted sizes within which the products to be transported ar packed and placed. The unit usually accustomed live the amount of products carried through instrumentality shipping is Twenty Foot Equivalent Unit or TEU, however containers are available in varied sizes- twenty foot, 40 foot, 45 foot, 48 foot, and fifty three foot.

Specialized Vessels: specialized vessels are accustomed to perform dedicated task for offshore operations and pairing alternative vessels. a number of the vessels even have on-board equipment to perform varied tasks associated with the maritime trade. Ice-breakers, cable birth vessels, field support vessels, tug-boats etc are common variety of special vessels.

Chartering: Chartering is that the activity in shipping trade wherever the charterer or a user hires the services of a vessel/ship from a ship owner. tho’ larger businesses might value more highly to charter ships, others with lesser merchandise to be transported take the services of freight forwarders UN agency mixture more little orders of shipments so transport those merchandise by chartering a ship. styles of leasing There are 3 main styles of chartering underneath that vessels are chartered by a charterer or employer from a ship owner: –

Vessel charter underneath that the employer takes the whole responsibility of the vessel and in most cases by the top of the chartering term, the employer purchases the vessel from the owner. This sort of chartering is common just in case of tankers and bulk carriers, and charterers are largely refinement corporations or trade goods majors.

Voyage Chartering: The charterer pays freight on per day basis for victimization the vessel and therefore the owner of the vessel is chargeable for paying all the obligatory dues, worker prices and fuel prices, excluding the value of loading unloading of products . This can be the foremost common sort of ship chartering and prices for the chartering includes an amount that is paid to the owner of the ship if the charterer exceeds the lay time or the time needed for the loading-unloading of products. The extra prices for owner of vessel embody dispatch that is refunded or repaid to the charterer if the loading-unloading takes place faster and therefore the lay time is saved.

Time charter: The charterer pays the owner of the vessel all the operational and alternative prices and therefore the owner manages the vessel. The charterer gets to manage the route of the vessel for specific range of days. The relevance of the charter is particular to industries and therefore the money wherewithal of the charterers.


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