GRADE: 11

MARITIME ECONOMICS (MRTE)

FINAL EXAMINATION

MARKS : 200
TIME : 2.5 HOUR NOVEMBER 2022

INSTRUCTIONS
1. Head up your answer sheet with your question paper and ensure you draw a margin down the
right-hand side of each page.

2. This paper consists of 5 pages including cover page and addendum

3. BE SURE TO READ THE QUESTION COMPLETELY BEFORE YOU ATTEMPT

YOUR ANSWER!

4. Number your answers to questions exactly as per the question paper.

5. Leave a line between your answers to sub-sections of a question (unless just one-word answers).
And rule off after each question.

6. Consider days at anchor as days at sea (for fuel consumption), unless stated otherwise.

7. Unless stated otherwise, round off your FINAL answers to the next hour/day.

SHOW ALL YOUR WORKINGS IN ANY QUESTION THAT INVOLVES

CALCULATIONS

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QUESTION 1

1. The Master of the containership Royal Sky, port of registry Douglas, Isle of Man, sent
the following message to his agent in Durban :

ETA PILOT STATION 0200 10 DECEMBER. LAST TEN PORTS : SINGAPORE, HONG
KONG, OSAKA, BUSAN, SHANGHAI, HONG KONG, SINGAPORE, FREMANTLE,
SYDNEY, WELLINGTON
REQUIRE STORES AS PER LIST FAXED FROM SINGAPORE, 860 TONS HFO. AND
150 TONS MDO. PLEASE ARRANGE ENGINEERING FIRM TO ASSIST WITH REPAIR
TO GENERATOR AND TO REPLACE NO 3 PISTON. SEAMAN GOMEZ INJURED
FOOT TO SEE DOCTOR ON ARRIVAL. THIRD ENGINEER PETERS, STEWARD DE
SOUZA AND GALLEY HAND MENDOZA PAYING OFF ARRIVAL. FOR LEAVE
REPATRIATION MANILA.

MASTER ROYAL SKY

1.1. Apart from government departments, name four people or organisations whom the port
agent will have to contact prior to the vessel's arrival. 4 x 2 (8)
1.2. In terms of which IMO code has the master provided the vessel’s last 10 ports of call?
(2)
1.3. Which port was the vessel’s last port of call? (2)
1.4. Which government department is responsible for clearing the ship’s cargo? (2)
1.5. There are three crew members paying off. Which government department will be
responsible for clearing these people to land? (2)
1.6. Royal Sky will take the pilot on arrival and will berth one hour later. Various clearances
will take two hours.

She will discharge 470 containers and load 810 containers at Durban. She will begin
working cargo at 08:00 on 15 December and until 16:00 on that day she will have the
services of one crane. Thereafter, she will have two cranes. Each crane can lift 20
containers per hour. A dispute has been declared by a trade union in Durban harbour and
the union has given notice that their members will not work from 12:00 on 10 December
until 12:00 the following day.
Breaks will total 4 hours.

1.6.1. How many hours will she take to handle all the containers? Exclude breaks and, if
necessary, round off to the next hour. (6)

1.6.2. When will she finish Cargowork? (Note the breaks, etc.) (6)

1.6.3. She will sail two hours after finishing cargowork. What is her ETD from Durban? (6)

1.6.4. Safmarine is hoping that Safmarine Karoo, due in Durban at 16:00 on 11 December, will
be able to take the berth of Royal Sky immediately on arrival. Is that possible? Answer
YES or NO (2)
1.6.5. Give a reason for your answer to Question 1.6.4. (2)

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1.7 In Durban, Royal Sky will be loaded according to a stowage plan drawn up by cargo
planners. List four factors that they will have taken into account when drawing up that
stowage plan. 4 x 2 (8)

QUESTION 2

2. Cargo Operations and Ship Chartering

2.1. Draw a cross-section through a hold which has two 'tweendecks. Apart from other
features in the hold and elsewhere on the diagram, show also the following in your
diagram : DRAUGHT; MOULDED BEAM; FREEBOARD; DEPTH (8)

2.2 Give the term for each of the following :

2.2.1 Pieces of timber that are used to ensure that cargo does not shift during a voyage
2.2.2 Spaces in the ship’s hold where cargo cannot be stowed
2.2.3 Time when a chartered ship cannot meet the agreed requirements of the charterer.
2.2.4 Cargo for port 1 but stowed below cargo for port 2
2.2.5 The document that governs a charter
2.2.6 The advice sent by a ship’s master to the charterer to indicate that his ship is ready to
load
2.2.7 The term applicable when cargo takes less time to load than was stipulated in the
agreement between charterer and shipowner.
2.2.8 A person who inspects a chartered ship prior to the vessel loading a cargo. 8 x 2 (16)

2.3. The Handymax vessel Pacific Trader is in Saldanha Bay loading pig iron for
Bremerhaven in Germany. The distance to be steamed is 6384 nautical miles. Her
normal service speed is 14 knots. Her heavy fuel oil capacity is 2210 tons and her
consumption is 32 tons per day.
2.3.1. What is the range of the ship in terms of heavy fuel oil (HFO)? (6)
2.3.2. How many tons of fuel will she use on the passage to Bremerhaven? (6)
2.3.3. She had taken a full stem of bunkers in Cape Town en route to Saldanha Bay. During
the voyage from Cape Town to Saldanha Bay she used 26 tons of HFO. How much
HFO did she have left when she arrived at Bremerhaven? (6)
2.3.4. In Bremerhaven, she will load a cargo of rolled steel for a small, shallow port in Norway.
The port is situated on a narrow fjord (an inlet) and across the mouth of the fjord is a
road bridge. The port has no cranes or tugs and although she will have a pilot on board,
she will need to turn in the fjord. List six aspects that charterers will have considered
when deciding to charter her for the voyage from Bremerhaven to the Norwegian port.
(12)
2.3.5. Would her cargo be regarded as bulk cargo, break-bulk, or containerised cargo? (2)

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QUESTION 3

3. Charter rates fluctuate greatly, even the rates for the same type and size of ship, and on
the same trade.
3.1. Giving examples where possible, list four reasons for charter rates fluctuating so greatly.
4 x 2 (8)
3.2. List 4 reasons for ship operators chartering ships rather than buying or building them.
4 x 2 (8)

3.3. In response to international demand and recent discoveries of additional iron ore
deposits close to Stahlhafen, iron ore exports through the port will increase by 42 million
tons a year by 2022.
Capesize ore carriers with cargo capacity of about 200000 tons are expected to move
the additional iron ore exports.
Environmental impact studies have been conducted to assess the effects of expansion
of the ore trade through the port.
3.3.1. How many additional ships will call at Stahlhafen per year? (6)
3.3.2. The developers of the new jetty estimate that five additional ships could be alongside the
new ore jetty at the same time. Calculate the length of the new jetty that will be built to
accommodate the additional ships. The following need to be considered when
calculating the length of the new jetty :

• The number of ships expected to be alongside at any time

• The expected length of each ship is 320 metres.
• The gap to be allowed between berths is 60 metres, and 60 metres is to be
allowed on the seaward and landward ends of the jetty. (10)

3.4 What will be the effects of this expansion of Stahlhafen on each of the following :
3.4.1 employment in the port (6)
3.4.2 the environment. (6)
3.5. A shipowner decides to build a new ore carrier so that he can charter it to the ore
exporters at Stahlhafen. The cost of the vessel is estimated to be $120 million. He can
pay $50 million from his reserves and borrows $30 million from Alpha Bank at 10 percent
interest per year. He borrows the rest from Beta Bank.
3.5.1. How much did he borrow from Beta Bank? (6)
3.5.2. If he has to repay Alpha Bank $4 million per year plus interest on the loan, how much will
he have to pay the bank in the first year? (6)
3.6. Besides the new jetty, what else will be required to handle the expanded export of iron
ore and the larger number of ships that will call? 6 x 2 (12)

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3.7. A VLCC, laden with 285000 tons of crude oil) broke down off Cape Agulhas and, with a
strong onshore wind blowing and heavy sea running, she drifted to a position about 5
miles from the Cape Agulhas lighthouse where she anchored. Her starboard anchor
chain parted, and the port anchor was dropped. When a salvage tug (operating on an
LOF) arrived from Cape Town, the tanker was dragging her port anchor.
The salvage tug managed to put up a towing wire, and towed her to False Bay where
repairs were carried out.

QUESTION 4

4.1. Explain the term operating on an LOF. (6)

4.2. The salvage tug owner received a salvage award for $8 million. Give four reasons for
the award for the salvage operation being so high. (8)

4.3. Provide the term that is described in each of the following :

4.3.1. A salvage term that is used when a salvage operator knows that the casualty is beyond
salvaging and that oil recovery becomes a high priority.
4.3.2. The immediate priority when a salvage tug reaches a casualty.
4.3.3. A radio distress call from a ship is also known as a _________ call
4.3.4. The most important information in the radio distress call is ________
Choose your answer from the following : SHIP’S POSITION; NUMBER OF CREW;
THE PROBLEM; TYPE OF CARGO
4.3.5. The set of instructions given to a shipmaster before his ship goes on charter
4.3.6 A structure built out of concrete or rock and designed to prevent heavy swell from
damaging a harbour.
4.3.7 The type of charter in terms of which a ship is chartered for six months
4.3.8 The person or company who organises the chartering of a ship
4.3.9 The person or company who organises the management of a ship
4.3.10 The people who load ships
4.3.11 The meaning of the term ATD that will appear in an agent’s message to a shipowner
after the vessel has sailed from the port.
4.3.12 A concrete (or tarred) area in a harbour onto which cargo is discharged
4.3.13 An area of the harbour where specialised cargoes are handled
4.3.14 Another term for ship scrapping
4.3.15 The name of the 42-year-old salvage tug that still operates out of Cape Town.
4.3.16 The place where that salvage tug was built (16)

TOTAL 200 MARKS