RO/RO Vessels and LASH

 

Besides the full container ship, the RO/RO (roll on/roll off) vessel and the LASH are other systems of water transport used in international trade.
RO/RO (Role On/Role Off ) Vessels
 
The RO/RO vessel (RO/RO or RORO) derived from the traditional car ferry, where motor vehicles are driven on and off by their drivers. RO/RO is popular within the European trade routes. It is also used in other trade routes like the U.S.A.-Central America route and Europe-West Africa route.

The RO/RO is equipped with ramp(s) that makes loading and unloading from the side and/or bow (front of vessel) and/or stern (rear of vessel) possible. Some modern RO/ROs are designed as a trailer/break-bulk/container carrier suitable for the deep-sea voyage (long haul), making loading and unloading of containers from the top, like a full container ship, possible using the crane. The type of cargo that can be carried on a RO/RO is flexible, including large objects.

The full RO/RO has low stowage factors, as a result of wasted space around the underside of the trailers and other motor vehicles. Therefore, the full RO/RO is not ideal for deep-sea trade. The low stowage factors, however, are compensated for by the quickness of the "turn around' time in ports in the short-sea voyage (short haul).

In general, the capital cost for a full RO/RO is lower than the full container ship or the LASH. When the cargo availability is insufficient in a port in the short-sea trade, investment in sophisticated container handling installations can be uneconomical. Therefore, the full RO/RO offers a solution to short-sea transport needs. A large area of land for parking trailers and other motor vehicles is necessary while they await loading.

 
LASH (Lighter Aboard Ship)
 
The lighter aboard ship or LASH---barge-carrier or barge-carrying vessel---is designed to carry lighters (barges), where they are lifted by crane over the stern (rear) of the vessel.

The LASH and barge come in different configurations. Some LASHes can accommodate over 24 barges. Each barge may carry 600 to 1,000 metric tons of cargo, which is much bigger than the ocean freight container, and can float and be towed up and down a river or canal, thus the barge is often referred to as the floating container.

The LASH is useful in moving a relatively large volume of cargo in the short-sea trade and to and from sites on rivers and canals, such as Rhine Canal in Europe, that cannot be used by the larger ocean-going vessels. The LASH keeps the load in the same vessel for the entire trip, thus reduces cargo handling, transport costs and time.

The LASH is popular in Europe, taking advantage of the extensive inland waterway systems which are the cheapest means of inland transport. The export goods from landlocked European countries like Switzerland may move by LASH or other inland waterway transports to the port of Rotterdam (Netherlands) or Antwerp (Belgium), and transfer to the ocean going vessel for the deep-sea voyage.

Conference Shipping
 

Conference shipping is provided by the conference carrier or member of a freight conference. The freight conference---conference or steamship conference or liner conference---is a group of operators of vessel who operate on the same routes and cooperate on shipping schedules at the standardized freight rates between ports.

Conference shipping has regular sailing schedules, thus is called the liner service.

Most ocean freight is carried by conferences. Conference carriers or their agents issue an ocean bill of lading.


Non-conference Shipping
 

Non-conference shipping is provided by the independent carrier or operator of vessel who is not a member of a freight conference, sometimes called outside shipping. Independent carriers, which carry about 25% of the ocean freight, operate on selected trade routes in competition with conference carriers.

Non-conference shipping often does not have regular sailing schedules and freight rates between ports. Consequently, it is perceived as less dependable than conference shipping.

Independent carriers or their agents issue an ocean bill of lading.


Charter Shipping
 

Charter shipping is a tramp service. The term tramp, as used in the ocean shipping, refers to a cargo ship not operating on regular routes and schedules, and picking up cargo only when it is chartered (hired) from the ship operator.

While conference and non-conference shipping are for general cargoes, charter shipping usually is for bulk cargoes like oil, coal, ore, and grain. Charter shipping has the lowest freight rate per unit of weight or measure.

A charter party is required in charter shipping. A charter party---charter party contract---is a written contract between the ship operator and the charterer (shipper). The contract normally includes the ports, freight rate and time involved in the voyage(s).

The ship operator issues a charter party bill of lading. Unless a letter of credit (L/C) permits or calls for a charter party bill of lading, the bank will reject such transport document in the L/C negotiation.

Some trade terms used specifically in charter shipping are as follows:

FI
Free In

The word "free" as used in the charter shipping term means not including. FI is a pricing term indicating that the charterer of a vessel (i.e., the shipper) is responsible for the cost of loading goods onto the vessel.

FO
Free Out

FO is a pricing term indicating that the charterer of a vessel (i.e., the shipper) is responsible for the cost of unloading goods from the vessel.

FIO
Free In and Out

FIO is a pricing term indicating that the charterer of a vessel (i.e., the shipper) is responsible for the costs of loading goods onto the vessel and unloading goods from the vessel.

 

Please see International Commercial Terms for the different trade terms used in exporting-importing.

Voyage charter
 
The ship is chartered for a single journey and it may involve more than one port of call. The ship operator crews and operates the ship and it is the operator's own ship's master in control of the ship.

This type of charter shipping is analogous to the limousine service where the driver, who is in control of the car in a journey, is provided by the car operator.
 

Time charter
 
The ship is chartered for a period of time. This type of charter shipping is similar to a voyage charter in the crewing and operating of the ship. The contract may call for a specific or unlimited number of voyages within the agreed time.
 
Bareboat charter
 
The term bareboat means a ship without a crew and ship's master. The charterer (shipper) is in charge of crewing and operating the ship within a period of time, usually a number of years.

This type of charter shipping is analogous to a car leasing where the lessor (the car operator) provides the car only and the lessee provides his/her own driver.