1. What are the common features of a bulk carrier?

Bulk carriers carry homogenous nature of cargo on board. They have more than 1 cargo holds. They
have double bottom. They have segregated ballast water compartments from their cargo holds.

1. Identify and briefly describe the different bulk carrier types.

Bulk carrier types are categorised into dry and wet. It consists of tankers, liquefied natural gas (LNG)
carriers, liquefied petroleum gas (LPG) carriers and dry bulk carriers. Tankers are designed for the
carriage of oil, chemicals, liquefied gases and edible liquids. The cargo handling modes is pump
on/pump off. A typical modern tanker is double skinned. The cargoes are loaded and discharged via
the manifolds with ship/shore pumps. The tanks of chemical carriers are invariably treated with
some form of coating so that cargo never comes into contact with the bare steel. LNG carriers
refrigerated down the cargo into liquefied form for carriage. LPG carriers either semi or fully
pressure, or semi or fully refrigerate their cargoes into liquid form depending on the type of cargo.
Dry cargo bulk carriers carry loose dry cargo and their cargo holds are usually hopper-shaped. The
cargo handling mode for bulk carriers is lift-on and off, usually by grabs, suctions or conveyor
system. The holds will be strengthened if carrying high density and low cubic capacity ores.

2. Describe the iron ore trade and the ships employed on this trade. Draw the main iron ore
routes on the map provided below.

Iron ores are mainly exported from Australia (i.e Port Hedland, Gladstone) or South Africa (i.e
Tubarao) to China(i.e Qingdao) or Japan(i.e Fukuyama). Ores used to be carried on specialised bulk
carriers with relative small holds on top of deep double bottom ballast tanks to cope with the dense
characteristic of ores. However, now they are generally carried in general purpose bulk carriers,
most of which have flexible ballasting arrangements and strengthened bulkheads to allow them to
carry these heavy cargoes.

3. Describe the main issues that a sale and purchase broker must be aware during the
registration process.

The S&P broker have to be familiarise with the registration procedure. They need to have contacts
for all the flags a client may seek to use which are usually the embassy, high commission or
consulate of the country. The broker needs to obtain legal advice prior registering the ship or
company so that they can make an informed choice about the registry, the type of company that
should be formed, choices of director or managers, whether they need to be nationals and hold a
majority stake in the company. After which, the broker need to prove the existence and currency of
corporation by providing valid of incorporation and proof of corporate taxes and fees are paid. Also,
to prepare for a legally attested copy of a resolution, signed by majority of company’s shareholder to
show that agreement has been reached to acquire the ship. Finally, the personnel representing the
corporation should be able to produce a power of attorney document to give them the right to act
on corporation’s behalf. In cases of secondhand sales, bill of sale together with transcript of registry
with the registered mortgage is required to prove the clean title. The brokers have to ensure that
the flag authority is well informed of the expected date and the time of registration and have the
necessary documents prepared in advance. If the owners are out of the flag country, a commercial
attaches have to be engaged for the ship registration. Also, the chosen name has to be checked with
registrar to ensure that it is permitted and approved.
4. How are the Classification Society’s records of value to the sale and purchase broker?
5. The inspections clause in the Norwegian Sale Form 1993 MOA provides the buyer with two
alternatives for inspecting a ship before agreeing to the purchase. Give a full explanation of
the content of this clause covering the two options in depth.