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The Pandemic and the “Unexpected” Search for Break Bulk Ships

Due to the pandemic and the current shortage of containers or space, some exporters, importers and cargo agents have asked for our help in transporting our break bulk cargoes. It’s not just about high-flying freight, but a lack of slots and empty containers, and the need to fulfill contracts and relieve stocks.

This generated a situation that 2 years ago we would say was impossible: the return to the good old general cargo service, the break bulk ships, including the reefer ships, which had been in decline for some time because of the targeting of refrigerated products for full container ships.

But, at the same time that many of these companies and professionals see this “great solution” for their problems, they ignore the complexity involved in negotiating with shipowners and operationalizing the loading and unloading of the ship. After all, they never had to worry about that since they left it to the shipowners to receive, store and ship their containers.

They don’t imagine that in break bulk they will have to plan the loading and unloading to/from the side, hire a foreman, and even think about and carry out the operation on board if the closing is FIOS. In fact, many are not even aware of the FLT, FIOS, LIFO, and FISLO freight conditions. And, worse, they think that closing a break bulk cargo has the same simplicity as the full container service, that you can ask for a quote without a firm load, that if you don’t board, you can “roll” to the next ship, etc., not knowing the existence of dead freight and other penalties such as detention and demurrage of the ship.

Addressing bulk and break bulk ship owners and brokers is not the same thing. And the same practices as the container cannot be brought to this universe. The time is now to think about and develop solutions to the crisis, which can indeed have break bulk ships as an alternative. But it is necessary to have knowledge of this market, which is much more technical and demanding, so that the “great idea” of break bulk doesn’t turn out to be “a big headache”.

Freight negotiation for break bulk and bulk cargoes is the subject of our course Chartering of Ships Under the Gencon Charter Party.

What should you know before going to the market? How to approach shipowners?

The common terms and practices of Chartering, the types of contract and its main clauses, the difference between demurrage and container and ship detention are points you will understand in our course.

So, take the opportunity, as the time is ripe for this. Subscribe now at the link www.tapconsultoria.com.br/cursos/

 

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