Table Of ContentTHE BUSINESS OF SHIPPING
THE BUSINESS
OF SHIPPING
Fifth Edition
by LANE C. KENDALL
London
CHAPMAN AND HALL
Fifth edition published in the UK 1986 by
Chapman and Hall Ltd.
11 NewFetterLane,LondonEC4P4EE
Published in the USA by
Cornell Maritime Press, Inc.
Centreville, Maryland 21617
Copyright © 1986 by Cornell Maritime Press, Inc.
Softcover reprint of the hardcover 1st edition 1986
All rights reserved. No part of this book may be reprinted, or reproduced or
utilized in any form or by any electronic, mechanical or other means, now known
or hereafter invented, including photocopying and recording, or in any informa
tion storage and retrieval system, without permission in writing from the publisher.
British library Cataloguing in Publication Data
Kendall, Lane, C.
The business of shipping. -5th ed.
I. Merchant marine-Management
I. Title
387.5'068 HE 735
ISBN-13: 978-94-010-8326-3 e-ISBN-13: 978-94-009-4117-5
001: 10.1007/978-94-009-4117-5
Manufactured in the United States of America
First edition, 1973. Fifth edition, 1986
For my sister
ELISABETH KENDALL THOMPSON
Fellow, American Institute of Architects
in appreciation of
her lifelongfriendship and unswerving support
in many times of crisis
Contents
Preface IX
Introduction 3
1. Liner Service and Tramp Shipping 5
2. Tramp Shipping 12
3. The Management of Tramp Shipping 38
4. Chartering and Tramp Ship Operation 62
5. Organization of a Liner-Service Company 80
6. Terminal Management 104
7. Terminal Operation 133
8. The Stevedore Contract 152
9. Procurement of Vessel Stores and Supplies 163
10. Containerization: The Beginning 192
11. The Ramifications of Containerization 217
12. The Ocean Bill ofL ading 253
13. How Freight Rates Are Made 269
14. The Traffic Study 294
15. Steamship Conferences 301
viii THE BUSINESS OF SHIPPING
16. The Logic of Steamship Scheduling 323
17. Scheduling and Bunkering 336
18. Planningfor a New Ship 352
19. Passenger Cruises. 376
20. Industrial and Special Carriers 410
21. Tanker Management 428
22. The American Shipping Subsidy System 458
23. The Business of Shipping 482
Notes 489
Index 505
About the Author 513
Preface
T
HIS VOL U M E has been written to describe the
business side of a commercial enterprise whose field is the entire
civilized world. Historically, the theory and knowledge of shipping
management, as distinguished from the practical skills of seaman
ship, have been transmitted from one generation to the next by
word of mouth. Little has been put on paper, primarily because the
finest exponents of the art of steamship management have been too
busy with their day-to-day concerns to do so. The "working level"
personnel often are superbly competent, but rarely qualify as liter
ary craftsmen.
It has been my aim, in preparing this analysis of the principles of
the "business" of commercial shipping, to describe that which trans
pires in the various divisions of a shipowning and operating organi
zation. Insofar as possible, the procedures followed in the offices
have been described and explained, as well as the underlying prin
ciples of management by which their decisions are reached.
In the process of learning the principles and practices that are
set forth in these pages, I have spent ajoy-filled lifetime in associa
tion with ships. It has been my good fortune to work in large and
small American steamship offices, to operate a major cargo termi
nal, to participate in establishing and putting into effect the policies
of a world-girdling American steamship organization, and to teach
young men these principles learned from experience as well as
from precept.
My years with ships and seamen have been filled with much toil
and many strains. They also have been crowded with pleasant
associations and fascinating experiences. I have discovered that
with increased knowledge of the endless ramifications of the steam
ship business my interest in each day's work has deepened and
grown more rewarding. May I hope that those who read this book
x THE BUSINESS OF SHIPPING
also will gain greater understanding of a worthwhile way oflife, and
thus heighten their appreciation of the achievements of each pass
ing day?
This volume is the fifth edition; the first appeared in 1973.
While much of the material found in the fourth edition has been
retained, a significant amount of new information has been added
in order to reflect new developments in the industry and to bring
the book up to date. It is my hope that the depth of detail and
analysis which characterize this present volume will prove to be of
value to the readers of these pages.
The names of those who have assisted me throughout the
decades of my association with the steamship industry are far too
numerous to list, even if all of them were known to me. Some who
have contributed importantly to my knowledge were nameless to
me, but I have not forgotten their generous sharing of experience
and hard-earned wisdom. Friends and correspondents in every
type of shipping office around the world have been more than
gracious in their willingness to contribute in some measure to my
professional edification. To them all, I extend my heartfelt thanks.
Any errors, of course, are my own, and I assume full
responsibility.
- Lane Carter Kendall
THE BUSINESS OF SHIPPING
