Factors affecting the development on the shipping industry

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Government policies
  • Development of ports, transhipments points, distripacks, inland depots.
  • Legislations e.g. tax exemptions, incentives for shipowners, shippers, cabotage law.

Commodities

  • Changes in type of commodities exported due to industrialisation i.e. exporting more manufactured goods and less primary products.Changes in trading partners i.e. exporting manufactured goods to third world developing countries instead of relying on exports of primary products to advanced/developed countries.
  • Changes in modes of shipment i.e. manufactured goods are mainly shipped in unitised packages rather than in bulk form. Hence, containers are increasingly being used.

The Shipping Line

The shipping line owns or charter ships which are used to offer space for the carriage of cargoes between sea ports in return for a consideration called freight. The type of vessel owned or chartered by shipping line depends on the type of service, tramp service or tanker service.

Some shipping lines operate a combination of services. The shipping line also can choose to set up its own offices or appoint agents at ports of call to handle its business transactions.

The Shipping Agent

The shipping agent is appointed by the shiping line to act on the latter's behalf at a specific port or for a specific area, province or country. At times, the shipping line may also appoint a general agent for an area, province, a country or a group of countries and various sub-agents for individual ports located within area/province/country/countries.

The relations between the shipping line and its agents are akin to that of a master and a servant. The agent must act in accordance with the instructions and within the limitations of authority stipulated by by the shipping line agency contract.

The main functions and responsibilities of a shipping agent include:

  1. To canvass caro for transportation by the principal's vessel for the purpose of earning freight.
  2. To collect all freight due and to remit the freight collected, less commission due to the agent, to the principal.
  3. To prepare all the shipping documents required, i.e. bills of lading, delivery notes, arrival notices, freight billings and cargo manifest.
  4. To coordinate vessels' arrivals, departures, loading, unloading activities via contacts with port operators, customs department, health authority, immigration department, shippers, consignees, forwarding agents, stevedores, hauliers, chandlers, etc.
  5. To maintain proper records for all shipment transactions.
  6. To keep principal informed of the local business environment and market trends.

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