Tanker Ownership, Chartering and Operations (CLASSROOM) - TD2
Course Summary
Making sound business decisions as they pertain to tanker ownership, chartering, operations and coverage strategies demands a solid understanding of key issues. The impact of any decision, good or bad, across the entire supply and marketing chain, can be far reaching.
This course covers the crude oil, petroleum products, chemicals and gas transportation sectors. It examines the important economic, financial, contractual, environmental and legislative issues when evaluating contract options, chartering and devising investment strategies, logistics as well as operating tactics. It is presented in association with Richardson Lawrie Associates - a maritime economics and business consulting firm with extensive global practice in the oil industry, shipping and transportation economics. The emphasis of the course is on sound commercial practice, drawing on the working knowledge and experience of various industry speakers. Case studies and practical sessions will build on delegates' hands-on experience. There are no pre-requisites for this course, nor is any advance preparation required.
What You Will Learn
- Key issues facing players in today's energy shipping markets
- Use of Worldscale, freight calculations, voyage estimates, and time charter conversions
- Dynamics of tanker chartering, sale and purchase markets; how to analyse trends and assess investment risk, as well as finance tankers
- How to use and interpret the Freight Futures Market
- Characteristics and driving forces that determine developments in the specialist gas and chemicals carrier markets
- Factors determining oil company transportation coverage strategies and tanker owners' chartering policies
- Key insights into how technical factors and the increasingly stringent rules governing vessel operations, safety and pollution prevention impact commercial decisions
- Essential elements of a voyage charter party and the differences in owners' and charters' obligations under different forms of charter
- Process of tanker chartering and the role of the broker
- How Operations impact on commercial success
- Important insights into the commercial and technical management of a tanker fleet
Please note: a laptop and up-to-date version of Office would be an advantage in order to engage in market data; however it is not essential.
Who Should Attend?
Anyone involved in: supply, trading and risk management departments at oil, gas and petrochemical companies as well as the commercial and operations departments at shipping affiliates or persons of oil companies; commercial and operations departments of ship owning companies; planning and financial departments of shipping companies and oil company transportation positions, banks and financial institutions involved in oil tanker, gas and chemical carrier finance; accounting and legal firms dealing with energy transportation issues; oil trading and distribution companies; management new to the transportation sector.
Course Content
Structure of the (Crude Oil) Tanker, Petroleum Products, Chemical and Gas Carrier Markets
- How the markets operate
- Trends in ownership and chartering
- The role of the different types of companies, including shipbrokers
- Ship types and their physical characteristics
Charter Evaluation
- Types of chartering arrangements
- Worldscale, AFRA, and freight futures
- Voyage estimating
Logistics and Operating Strategies
- Transportation economics and evaluation of logistics options
- Trans-shipment, lightering and the use of tankers as floating storage
Tanker Market Fundamentals and Market Influences
- Tanker demand and supply
- Trends in owner operating costs and charter revenue
- Rate formation
- The dynamics of short, medium and long-term charter rates
- Assessing the impact of external market factors
Investment in Tankers
- New construction, second-hand and scrap prices and their relationship to the charter markets
- Strategies and economics of tanker refurbishment
- Impact of environmental and safety legislation on tanker construction
- Legal aspects of tanker sales
- Financing arrangements
Commercial and Legal Aspects of Charter Parties
- Demurrage, bunker escalation and other key clauses
- Relative merits of different types of charter party
- Requirements of charterer
- Commercial, legal and other considerations, including arbitration
- Documentation
Tanker Operations
- Cargo Loss and Quality Control
- Inspection and Testing
- Custody Transfer
- Ship Shore Reconciliation
- Claims
Freight Derivatives
- Freight Forward Agreements
- How do they work
- Comparisons with the physical market
- Uses
Liability, P&I Cover, OPA 90 and International Conventions
Commercial and Technical Management of a Tanker Fleet
Tanker Coverage Strategy/Contract Portfolios
- Oil company and ship owner perspectives
- Calculation of oil company tonnage requirements and the development of a 'coverage strategy'
- Commercial, contractual, legislative, environmental and qualitative issues associated with controlling transportation
- Project implementation
Syndicate Work
- Participants will undertake exercises covering transportation economics, the economics of life extension, demurrage and arbitration. The work is then used in case studies in which syndicates compete to develop optimum strategies for tanker coverage and contract portfolios
