Ship Operation Management - Voyage Planning - Assignment Example

Title: (Ship Operation management) VOYAGE PLANNING Dated: August 14, 2010 Introduction: Voyage planning is a mechanism to design a comprehensive mechanism of a vessel’s voyage from its start to finish as in a profitable and perfect manner with such an arrangement to ensure sustainability of the organization. The mechanism includes, leaving the vessel from the dock and harbor area to follow the selected route as a segment of a voyage for the accomplishment of the task towards its destination under the leadership of the captain of the ship with the assistance of all other crewmembers. The planning ,selection and execution of the specific route for the completion of the journey serve as a blue print for the achievement of the desired results with the utilization of the resources as input on economical basis for the desired outputs within the possible and calculated timeframe. The passage planning is the guiding principle and map for the captain and the captain deliberates all its details with all the supporting staff for its execution. The administration of MV Lotus Dawn has selected Montreal to Singapore through Suez Canal Route for the execution of the assigned task. The selection of specific route is a key element for the implementation of the operational strategy by the shipping corporation. The selection has been made from the following three options for its execution within the specified period: These three options are listed as under: a) Montreal to Singapore, b) Hobart to Rotterdam and c) Manila to New York. The selection of the route is based on the economic benefits, commercial practices and favorable wind conditions as to assist in the performance of the voyage as in economic manner. The conditions as offered by the route as fascinated the administration and captain of the ship to make logical decision as in favor of the selected route. The selection of the route will help all other similar shipping corporations to make a logical decision for the adoption of the route and t he technical data along with commercial information will provide a guideline to other similar organizations for taking judicious decisions as in favor of their respective corporations. Montreal to Singapore Route will start from the Gulf of St. Lawrance to the North Atlantic Ocean with an initial destiny of Strait of Gibraltar into the Mediterranean Sea. The voyage will move next into the Red Sea through Suez Canal and further into the Indian Ocean for its final target into the Singapore Port. The selection of the route is based on the reliability and past performance of the shipping corporations as through the said route. The route has provided an alternative option to the major shipping corporations to accommodate the increased volume of the global trade through the sea routes especially through the Suez Canal route as the same route has a number of physical and economical advantages as compared to that of its main competitors in the field. Benefits of the Suez Canal route: The Suez Canal passage is one of the important options for the ships on the route from Montreal to Singapore as the route has proved to be successful option for handling post –panamax vessels that has also offered the possibility of increased revenue from greater productivity of the shipping corporations. The flow of traffic through the said route is lower than that of the other options like through the Panama Canal and the Cape of Good Hope; therefore, less voyage hurdles favor the ships to complete their journeys as per their designed schedules. The traffic as originating from Montreal for Singapore needs 21.1 days as navigation time, however the given time is slightly higher than that of the Panama Canal route; this is 18.3 days with additional 6 .0 days as the transit time for the completion of one-way trip. The route has proved its reliability and effectiveness with sufficient infrastructure for handling cargo services with the assistance of trained labor, linked railroads and trucking systems. The local Standard Time of the ship at the intermediate bunkers is calculated because of the bunkers as are situated at the Strait of Gibraltar and at the Suez Canal, and had served as the milestones for the evaluation of the overall journey of the large ship, MV Lotus Dawn. Costs of the Suez Canal route: The costs of the Suez canal route is determined on average basis as per given below information as the ship will use the bunkers at Strait of Gibraltar and the fee at the Suez canal at the rate of USD 600/ ton. The cost of the overall passage is lowered than any other available route for the journey. Risks as are linked with the Suez Canal route: A number of risks are associated with the route, as Suez canal does not contain any lock as ships with up to 20.7 meters draft can navigate from the canal. Congestion at the route is a routine problem and more over average transit time is longer than that of its main competitors like Panama Canal route, which has 14 hours for a Southbound convoy and similarly 10 hours for a northbound ships. Interruptions and delays in the canal decrease the Canal’s service reliability in terms of its performance and satisfaction of the Shipping corporations. The Suez canal route has limited capacity for its expansion; therefore, any future expansion program for the route faces major challenges in terms of its space and geographical expansion. The shipping companies are also avoiding the route due to its exposure to the African piracy, as the same is a potential threat to the success of the route. Benefits of the Panama Canal route: Marine cargo destined from Montreal to Singapore has the option to use Panama canal route as a significant component of the trade has completed through the Panama canal route. The route has helped the trade including both imports and exports from Canada to other regions of the world including South East Asia like Singapore. The route has created a number of jobs as on diversified basis in different sectors of marine trade disciplines for the execution and completion of the voyage journeys in safer mode. The route has an easier access to the main markets like Singapore and other East Asian nations in the expanding markets of the world. The route is a shortcut as the canal is 82.0 kilometer long, which has connected the Caribbean Sea to the Pacific Ocean for the transport of vessels through the canal. Panama canal has an arrangement for raising and lowering the levels up to the level of 26.2 meters for transits through the locks of the canal. The route through Panama Canal from Montreal to Singapore has an advantage that no other major competitor exist as a potential threat to the Canal, therefore, major segment of the traffic passes through the passage for timely completion of the cargo handling process. Panama canal has the capacity for its expansion, therefore, in a position to cater future cargo needs of the major trading hubs like United States of America, Canada and other regional countries. The route has a shorter transit time than that of the Suez Canal route and resultantly lowers expenditures to the Shipping corporations for the execution of their cargo operations through the utilization of the Panama Canal alternative as through the Suez Canal. The route has the capacity to accommodate large vessels at any potential navigational time, therefore, provides an opportunity to shipping corporations to plan their business plans as to achieve their financial targets through the execution of the business plans as are linked with the shipping operations through the utilization of large vessels like MV Lotus Dawn. Costs of the Panama Canal route: The costs of the cargo operations by the MV Lotus Dawn vessel are lower than that of Suez canal route from Montreal to Singapore as the average transit time is shorter for the Panama Canal route and the rates are the same that is USD 600/ ton. Risks as are linked with the Panama Canal route: The Panama canal has explored all the businesses as are linked with the route at their maximum levels, therefore, little scope for the shipping corporations to expand business plans as are linked with the canal. The congestion at the route due to its shortness has offered delays to the ongoing operations; therefore, the shipping corporations while executing their operations through the utilization of the route incur extra delaying charges. Often, single-lane routine maintenance of the route shutdowns had demonstrated in queues as up to the level of 120 ships, which is equivalent to three full day’s volume of the traffic at the route. Unloading of the cargos to facilitate the flow of the large vessels contribute extra financial on the shipping corporations and therefore make hurdles in the smooth cargo operations through the Panama Canal route. Benefits of the Cape of Good Hope route: The Cape of Good Hope is a rocky headland, which connects Atlantic Ocean to the Indian ocean as an alternative route for the trade operations, starting from Montreal for a destiny like Singapore in the Eastern Asian region. The port caters the general cargo needs as on common user basis with a capacity to handle the needs of the increasing number of containers en route from west to the east or vice versa. The port has offered important repair facility to the operating vessels, therefore, has the capacity to provide mechanical needs as to run the cargo. The port has sufficient numbers of berths to handle the growing numbers of cargo at the port ,therefore , the MV Lotus Dawn vessel have the option to select the port as an alternative route for its operation from Montreal to Singapore. Costs of the Cape of Good Hope route: The costs of the cargo operations through the Cape of Good Hope route by the MV Lotus Dawn vessel are too high as the route is the longest navigational journey as compared to the two other alternatives that is the Suez Canal route and the Panama Canal route. Risks as are linked with the Cape of Good Hope route: The Cape of Good Hope port has limited capacity for cargo handling through large ships like the MV Lotus Dawn vessel ,therefore ,the shipping corporations perform their operations through other available options. In addition, the phenomenon of navigational piracy poses a constant threat for the cargo operations in the immediate geographical locations near the port and therefore an additional financial burden on the shipping corporations, hence limited resources compel the top management of the corporations to move for other available options for completion of their business plans within specific periods. Although the port has good rail and road connections at the inland, and other allied centers but these facilities are of little use to the MV Lotus Dawn vessel for its cargo operations from Montreal to Singapore as the operations have been designed for cargo handling at the port. The administration of MV Lotus Dawn vessel has selected Montreal to Singapore operation through Suez canal for its transfer of cargo goods as the other two operations that is Hobart to Rotterdam and Manila to New York are comparatively complex in nature and need extra financial resources for their completion. The specific operational route that is through Suez canal has its unique importance from economic viewpoint as compared to two other alternative options like the Panama Canal and the Cape of Good Hope ports. The ship during enroute has been called at the Suez Bunker port for maintenance and routine examination. As per provided information the cost of the operation at the bunker will be as under: Name of the bunker: Port Said 570 Bunker’s cost : at the rate of $ 600 The ETA (local Standard Time) of the ship at the intermediate bunker: The ship will reach at 7.00 hours as the ETD. The bunker will charge the cost from the shipping corporation @ 10% extra charges from shipping corporation in lieu of the services provided to the corporation. The amount of these charges will vary depending on the loaded cargo of the ship and the duration in the bunker. The cargo operations are executed by the shipping corporations as per their voyage plans and are decided in accordance with their operational strategies. These strategies are formulated through the stages of appraisal, planning of the operations, execution the selected route and finally monitoring of the whole operations. The implementations of these plans are in accordance with the specified principles of International Maritime Organization. The selection of Montréal to Singapore operation through Suez canal will help in the achievement of the financial targets of the shipping corporation of MV Lotus Dawn vessel. The corporation will execute the operations as in economical manner and these operations will serve as a success example for the shipping corporation for the formulation of its plans especially at Montréal to Singapore sector through the Suez Canal. These operations will ensure sustainability of the shipping corporation and all the stakeholders will benefit from the operations as on win-win basis. References: 1. Hassan, F. A. & Tassie, G. J. Site location andhistory (2003). Kafr Hassan Dawood On-Line, Egyptian Cultural Heritage Organization. Accessed 08 August 2008. 2. Shea, William H. "A Date for the Recently Discovered Eastern Canal of Egypt," in Bulletin of the American Schools of Oriental Research, No. 226 (April 1977), pp. 31-38. 3. Silver, Morris. Ancient Economies II (Apr. 6, 1998), "5c. Evidence for Earlier Canals." ANCIENT ECONOMIES II, retrieved Aug. 8, 2008. Economics Department, City College of New York. 4. Madl, Pierre (1999). Essay about the phenomenon of Lessepsian Migration, Colloquial Meeting of Marine Biology I, Salzburg, April 1999 (revised in Nov. 2001). 5. Galil, B.S. and Zenetos, A. (2002). "A sea change: exotics in the eastern Mediterranean Sea", in: Leppäkoski, E., Gollasch, S. and Olenin, S. (eds), Invasive aquatic species of Europe : distribution, impacts, and management, Dordrecht ; Boston : Kluwer Academic, ISBN 1-4020-0837-6 , p. 325–336 6. Garrison, Ervan G. (1999) A history of engineering and technology : artful methods, 2nd ed., Boca Raton, Fla. ; London : CRC Press, ISBN 0-8493-9810-X 7. Oster, Uwe (2006) Le fabuleux destin des inventions : le canal de Suez, TV documentary produced by ZDF and directed by Axel Engstfeld (Germany) 8. Sanford, Eva Matthews (1938) The Mediterranean world in ancient times, Ronald series in history, New York : The Ronald Press Company, 618 p. Read More