Ship Chartering : How Ships Earn Even When Not Moving | Chief MAKOi

In this episode, I'll touch up on ship chartering. I'll tell you about Time, Voyage and Bareboat Charter.

Chief MAKOi
Seaman Vlog

[CanConMil]

Leaving For My First Ship Today (Engine Cadet). Thanks For Everything Chief.

[RobertPalomoMusic]

I have read that some cargo ships earn a little added income carrying passengers. A video about that would be interesting.

[rogerblackwood]

Aviation is very similar in operation to what you describe chief! There's dry lease, wet lease and hourly rental. Dry lease means the renter pays for fuel, oil but not maintenance or usually insurance. There's normally a monthly minimum usage, 30 hrs is typical and the renter takes the plane to their base airport and pays parking etc. With wet lease the customer is or has his own pilot and takes the plane on an hourly rate all inclusive. There is also something very similar to voyage lease, the customer specifies the journey and the owner supplies the plane with a crew and flies the charter, a lot of PC12's, an 8 seat executive type turbo prop, are rented this way for air taxi type ops. Due to the different licensing systems, the pilot and plane must not be from the same company, but it is an easy work around to save a lot of money. Compared to rocking up at an airport and asking for a plane to take you from a to b which requires something called an AOC, which entails a ton of certification and money!
The Lear jets at Biggin Hill go out for around £8000/hr which is way more expensive than the PC12 option and hardly any faster on a couple of hours leg! But I did get a free Perroni the last time I flew on the Lear jet🍺🍺👍👍

[santamanone]

So the Voyage Charter is the analogous as hiring trucking company to move your furniture to a new home. While a Barebones Charter is analogous to renting a U-Haul to do the move yourself.

[monkeymalletsvideos]

Every economics student everywhere in the world today should be required to watch this video! I spent semesters in Admiralty Law courses and International Law courses, and this is by far the best explanation of how this business works that I've ever heard.

[Gunnr]

Fascinating look at part of the industry that most people rarely get to see.

Thanks, Chief!! As always, great content!

[krizzelmaebayos]

Hi, Chief! My beau is an engine cadet currently undertaking his onboard training. He told me to subscribe on your channel because your videos are worth watching. Since I got here, I learned a lot about seafaring. All of your videos are awesome and educational. This particular video helped me understand new perspective that are not found in my accounting books. I only knew lease accounting and limited perspective of some shipping terms. Ship chartering is a whole new knowledge to me! Aside from the word "wharfage", I earned a new shipping jargon related to accounting which is "demurrage". Salamat, Chief for imparting your knowledge! 🥰 Keep inspiring us with your videos. Mabuhay po kayo! 😊

[howardsportugal]

We imported a load of cement from Vietnam to Rep of Congo...26k tonnes.

We got hit with demurrage charges, wiped out the whole profit...and most of the load was then stolen by corruption.

We were unloading, about halfway through, when the ship was told to stand-off (put out of port, wait on anchor) because the president, Denis Sassou N'Guesso, had a load of cows arriving.

(You can't grow cows in equatorial Africa due to Tsetse)

As it was cheaper to ship them alive for butchering than butcher & send in frozen containers, they were sent alive. In shipping containers. From Brazil.

After arrival, whilst our ship stood off & the trucks stood idle, or sub-contracted to steal our product from warehouses where customs officials took brown envelopes, the cows were loaded onto & under Chinook helicopters to be flown to Brazzaville for slaughter.

I kid you not.

You can't hope to run a business under these terms....

[KenNeumeister]

I am sure this only scratches the surface of the intricacies of the business aspects of shipping, with many permutations of the arrangements of the parties involved.

[ShrienM]

Dear Chief. These educational videos are amazing. Thank you so much for your time and knowledge for putting this together. Really appreciate the knowledge

[steveanderson]

Great explanation aside, I was mesmerized by the clip of the loading of bags of some commodity into the cargo hold. MANUALLY, a fine example of the old adage "How do you eat an elephant? One bite at a time."

[capicolaspicy]

Thanks Chief, very informative video well delivered! My father, a British sea captain in the 1930's, was a Ports Superintendent for Kerr Steamship Company in New York City back in the fifties and sixties. It's a pretty amazing industry. Pre-computer dayis of course, so he had a staff of 20 to 30 stenographers that spent their days filling out 5 x 8 index cards so they could cross reference all of the different data points of ports around the world to know which Kerr ships could go in and which could not.

[stephenhope]

Thanks Chief. Not anything like most people would think. These vessels are really expensive to build/maintain/operate. So it does make sense for an owner to maximize use by chartering when the owner isn't using. Makes sense for a shipper to charter and not buy if they cannot afford to buy a new vessel. So a bit different from the airlines contention that a plane is only making money when its in the air.

[beefgoat]

As always, I learned something I hadn't known beforehand. Great video Chief!

[hamiltontodd]

Thanks Chief, excellent explanation of how ships can be rented. Certainly improved my understanding of the process!

[orlandomah]

Finally managed to join in live... always enjoying your videos, keep them coming

[Z]

Thanks Chief. As always, this video was great. I feel like I have been all over the world with you, and never left my chair.

[notyhbynorthwest]

Just signed on to your channel. Very impressed with your knowledge and clarity. My family came from a Merchant Marine background. Well, all except me, so I am looking forward to expanding my understanding of all aspects of the industry. Thank you.

[ryteulopki]

Amazing angle! I love how you bring random info and explain it in real life terms. Keep going!

Cost/time of engine overhaul / major maintenance
Cost of crew / training
World of insurances... what is must, what is common, how much, why to insure, why not to insure...???
Ship ownership... buying used/new, what is the cost of the owner, what is the cost of operator - this is partially cover in above video but please, would go dive deeper in each scenario?
...I bat you have plenty of ideas ;)

[David-ifvi]

You have one of the best You Tube channels on shipping.
From where you are now!
I am on the other side of the World.
And I can share the wonderful places that you visit.
Kind regards, and greetings from Africa.